In the modern world where every decision of the human being is influenced by the powerful media of advertisement, it is necessary to consider and undertake a semiotic analysis of the advertisements which would enlighten our perception of advertisements and realize the power source behind them. One of the classic contributions to the study of advertisements of the present day is the book Advertising and promotion, an integrated marketing communications perspective which deals with the integrated marketing communications perspective and observes how advertisers should correspond with clients through the various forms of communication the most significant among being print advertising. (George and Belch 2004).
In this context, we need to analyze the power of print advertisements that can reach mass readers in the most effective means. It is because the advertisements are in print, the use of color, text and photography are all key factors in ensuring a successful campaign (Henderson). In this paper, we attempt a semiotic analysis of the printed advertisements for Ralph Lauren, one of the most successful fashion designers of the day to bring out the underlying meanings or the hidden messages of the piece.
Main body
In analyzing the printed advertisements for Ralph Lauren Romance, a fragrance with products for both men and women, we can very well realize that this specific media powerfully conveys the message of the advertiser, addressing both the targeted sexes through effective signs and methods. The semiotic analysis reveals that the advertisements for male and female audiences separately have all the effective ingredients to attract their projected customers by means of body language, symbols, connotative meaning, color coding, the form or structure employed connoting sex and lust, and others.
The presentation of both the advertisements is powerful as they speak through images, symbols, postures, movements, shades, expressions, etc, conveying the complete meaning of the advertiser to the specific addressees. Therefore, there is no question regarding the competitive advantage or the product value of the advertisements even in separate reflection.
The targeted addresses of each advertisement are apparent in the semiotic analysis of the advertisements. There is no doubt that males and females read and process information from advertisements differently so therefore it is essential that this is taken into account when creating advertising campaigns for the different sexes (Henderson). It is clear that the advertiser communicating with males and females in separate advertisements and the advertiser effectively affects the addressee in the decision making regarding the purchase. The semiotic study discloses that these can be well-identified as part of international advertisements targeting the highly fashionable and trendy young males and females of the global market.
In an evaluation of the images used in the ads, we find that they are the most effective ones reaching the targeted consumers through the figures of the two most attractive and stylish figures of Filippa Hamilton and Thierry Pepin and their body movements and expressions. Both the images are balanced along with the text, and they effectively arouse the most appropriate impact on the audience.
Conclusion
Another remarkable effect is provided by the mixture of the colors, the right combination of black and white in the professionally shaded background which arrests the color sense of the audience. As the color combination goes hand in hand with the semiotic interpretation of the advertisements, there is no better or different contribution to the advertisement possible.
Works cited
George, Belch E and Belch, Michael A. Advertising and promotion, an integrated marketing communications perspective. 6th ed. New York: McGraw-Hill/Irwin, 2004.
Henderson, Emma. Ralph Lauren Ads for Men and Women. A Semiotic Analysis. Web.
As Ralph Lauren states, the mission of his company is to redefine American fashion and style, offer high-quality products to its customers, and involve individuals in the process of creation of those products. However, Ralph Lauren does not have a vision statement. The latter is critical to the company for the reason that it would provide the options for future growth (Schley and Weston 99). Moreover, the vision statement would direct the organization and help review the short-term and long-term objectives.
Description of the Brand
The organization functions in three sections: Retail, Wholesale, and Licensing. Ralph Lauren Corporation proposes a variety of clothing goods, together with male and female collections which are retailed under numerous brand titles. Overall, Ralph Lauren Corporation trades its goods to chain stores and specialized stores. The company also provides golf apparel. Ralph Lauren Corporation also features a variety of retail stores and its e-commerce websites. The corporation also sells its wear, household, and other goods by means of licensing agreements (Lauren 15).
Products and Services
Ralph Lauren Corporation produces its goods for both men and women, including footwear, wristwatches, belts, hats, eyewear, fine jewelry, and leather goods, including shoulder bags and luggage. There are numerous other goods produced by the Ralph Lauren Corporation which comprise bedding and bath goods, fixtures, cloth and wall covering, lights, paint, giftware, and tabletop. Moreover, it offers a series of fragrances for both men and women.
Unique Features
One of the unique features of the Ralph Lauren company is its multi-brand approach. It provides various services to its clients and even has restaurants in several parts of the world. One may find the Polo Bar and Ralphs Coffee in New York City. There is also a restaurant sited in Chicago and yet another restaurant located in Paris. Ralph Lauren strives to conquer the market by means of a unique amalgamation of seemingly incompatible brands.
Current Production and Supply Chain
The key driver for Ralph Laurens production is its improved supply chain speed. The corporation elaborated and implemented a cross-functional teamwork approach. This move allowed Ralph Lauren Corporation to strengthen the collaboration with its contractor base in Asia. The current strategy also helped the company to minimize costs and increase the quality of its merchandise (Geczy 149). The corporation is also looking to concentrate on three of its brands Polo, Lauren, and Ralph Lauren. In order to match its demand and supply, the company decided to split its orders into smaller pieces in order to minimize the risk of selling out and getting behind.
Environmental Factors
The environmental topic is one of the characteristics of the modern business world which Ralph Lauren Corporation should not ignore. Society and government have become exposed to numerous environmental dilapidations. Ralph Lauren currently implements policies aimed to minimize the negative impact on the ecology. The company also pays attention to corporate responsibility in order to contribute to the improvement of the current state of ecology (Springsteel 86). This is how the company manages to get adequate support from the public and the administration. The tactic that is currently used should also involve the implementation of a reutilize-and-recycle strategy.
Company Structure
In 2016, the company has seen several important transformations in its organization. Ralph Lauren Corporation embraced a novel international organizational structure. These transformations capitalized on the potential of Ralph Lauren brands and produced comprehensive growth (Sheridan 33). As stated by Ralph Lauren, the new CEOs knowledge in tactically renovating business and functioning models from local and market-focused companies to international brands allowed him to play the fundamental management role in Ralph Laurens administrative renovation.
Company Performance
The new organizational structure helped the corporation increase its income level in comparison to 2015. The total income grew by 6% and stopped at the $6,860 million marks. Ralph Lauren stated that this significant growth was also a result of the new CEOs professional approach and updated the companys vision statement.
Target Market
Ralph Lauren Corporation targets customers all over the world. The companys customer profile comprises various experts, rich and prosperous people who are highly respected in the society, individuals with several houses, and equestrians, sailors, and people who practice sports such as golf. Ralph Laurens customers want prestige, fascination, extravagance, and honor (Williams 101). Their key values include first-class quality, uniqueness, and stylishness. The fundamental desire of Ralph Laurens target customers is to be appreciated, well-regarded, affluent, experienced, and classy.
Potential Product Lines
One of the potential product lines is a clothing line for pets. This move is supported by the fact that the majority of Ralph Laurens clients are pet owners. The first two collections would feature clothes for cats and dogs. There should also be a collection for other animals as well. The option of personalization should also be available to the customers.
Another potential product line is the customization of the vehicle interior trim. Ralph Lauren would offer its services to the car owners that wish to personalize the look of their car. This would be an important asset for the company for the reason that Ralph Laurens target customers are rich and enjoy luxury. Providing them with the option of customizing their car would open a whole new array of opportunities for the corporation.
Works Cited
Geczy, Adam. Fashion and Orientalism: Dress, Textiles and Culture From the 17th to the 21st Century. London: Bloomsbury Academic, 2013. Print.
Lauren, Ralph. Ralph Lauren. Milano: Rizzoli, 2011. Print.
Schley, Bill, and Graham Weston. The Unstoppables: Tapping Your Entrepreneurial Power. New York: Routledge, 2012. Print.
Sheridan, Jayne. Fashion, Media, Promotion: The New Black Magic. Chichester: Wiley-Blackwell, 2010. Print.
Springsteel, Lisa. Becoming a Fashion Designer. Hoboken: John Wiley & Sons, 2013. Print.
Williams, Kim. Fashion, Design and Events. New York: Routledge, 2013. Print.
In the modern world where every decision of the human being is influenced by the powerful media of advertisement, it is necessary to consider and undertake a semiotic analysis of the advertisements which would enlighten our perception of advertisements and realize the power source behind them. One of the classic contributions to the study of advertisements of the present day is the book Advertising and promotion, an integrated marketing communications perspective which deals with the integrated marketing communications perspective and observes how advertisers should correspond with clients through the various forms of communication the most significant among being print advertising. (George and Belch 2004).
In this context, we need to analyze the power of print advertisements that can reach mass readers in the most effective means. It is “because the advertisements are in print, the use of color, text and photography are all key factors in ensuring a successful campaign” (Henderson). In this paper, we attempt a semiotic analysis of the printed advertisements for Ralph Lauren, one of the most successful fashion designers of the day to bring out the underlying meanings or the hidden messages of the piece.
Main body
In analyzing the printed advertisements for Ralph Lauren Romance, a fragrance with products for both men and women, we can very well realize that this specific media powerfully conveys the message of the advertiser, addressing both the targeted sexes through effective signs and methods. The semiotic analysis reveals that the advertisements for male and female audiences separately have all the effective ingredients to attract their projected customers by means of body language, symbols, connotative meaning, color coding, the form or structure employed connoting sex and lust, and others.
The presentation of both the advertisements is powerful as they speak through images, symbols, postures, movements, shades, expressions, etc, conveying the complete meaning of the advertiser to the specific addressees. Therefore, there is no question regarding the competitive advantage or the product value of the advertisements even in separate reflection.
The targeted addresses of each advertisement are apparent in the semiotic analysis of the advertisements. “There is no doubt that males and females read and process information from advertisements differently so therefore it is essential that this is taken into account when creating advertising campaigns for the different sexes” (Henderson). It is clear that the advertiser communicating with males and females in separate advertisements and the advertiser effectively affects the addressee in the decision making regarding the purchase. The semiotic study discloses that these can be well-identified as part of international advertisements targeting the highly fashionable and trendy young males and females of the global market.
In an evaluation of the images used in the ads, we find that they are the most effective ones reaching the targeted consumers through the figures of the two most attractive and stylish figures of Filippa Hamilton and Thierry Pepin and their body movements and expressions. Both the images are balanced along with the text, and they effectively arouse the most appropriate impact on the audience.
Conclusion
Another remarkable effect is provided by the mixture of the colors, the right combination of black and white in the professionally shaded background which arrests the color sense of the audience. As the color combination goes hand in hand with the semiotic interpretation of the advertisements, there is no better or different contribution to the advertisement possible.
Works cited
George, Belch E and Belch, Michael A. Advertising and promotion, an integrated marketing communications perspective. 6th ed. New York: McGraw-Hill/Irwin, 2004.
Henderson, Emma. Ralph Lauren Ads for Men and Women. A Semiotic Analysis. Web.
The marketing promotional strategy of Ralph Lauren & Bose Special Edition should focus on spreading the worth and importance of the two brands and their products to the targeted consumers. The marketing promotional strategies should be applied by using different promotional techniques.
Budget Allocation and Expected ROI
Total Marketing Budget
$200,000
per month
Total Marketing Budget
$2,400,000
per year
Marketing Activities
Advertisement – TV
35%
70,000
Digital Marketing
18%
36,000
Internet Marketing
10%
20,000
Print Material
5%
10,000
In-shop Display
2%
4,000
Public Relations
25%
50,000
Free Gift Promotions
5%
10,000
Total Marketing Expense (per month)
100%
200,000
Total Marketing Expense (per year)
2,400,000
Return on Investment
Total Marketing Expense (per year)
2,400,000
Net Income
13,258,007
ROI
552.42%
Marketing Promotional Mix
The marketing promotional mix of Ralph Lauren & Bose Special Edition will include public relation, advertising, traditional marketing, web marketing, and events. Ralph Lauren has to adopt the latest technologies and equipment to endorse its product. The advertising techniques should be based on traditional and digitalized marketing methods to promote the special edition product effectively. Public relations events will be organized to launch the product and to strengthen relationships with the general public.
Advertising
The use of the state-of-the-art technology will be productive for Ralph Lauren & Bose Special Edition products. It is perceptible that the utilization of latest technologies helps in creating a competitive advantage. The latest technologies bring dissimilar parties together to build a strong business relationship. The use of the latest system and equipment will help to achieve the marketing objectives of the proposed business.
Traditional Marketing Technique
The conventional advertising techniques make use of newspapers and magazines. Ralph Lauren will publish editorial shoots of their products to promote their brand. The company will cast celebrities for editorial shoots.
Digital and Online Media
Digital media has been termed as the latest form of advertising that makes use of the latest digital technologies to promote the brand and its products (Ess 77). Ralph Lauren plans to develop digital ads for the electronic media. These ads will feature a well-known celebrity as the brand ambassador of the new products.
Moreover, Ralph Lauren & Bose Special Edition products will be advertised on social media websites. Ralph Lauren already has verified promotional pages on different social media websites. Therefore, it can easily promote its products online and can obtain feedback from its customers as well.
Promotions
Promotion plays a vital role in making a product or a brand more appealing and profitable (Yeshin 47). Ralph Lauren could promote its special edition products by making use of four different promotional strategies.
Sales Promotion
Sales promotion assists in convincing a potential consumer to buy the product. Ralph Lauren will use sales promotion by providing a promotional discount on different occasions to attract and enthrall the targeted customers.
Personal Selling
Ralph Lauren will use personal selling technique to entice its customers to buy the new product. The company will hire well-mannered sales persons who will actively take part in promoting the brand by interacting with customers on a regular basis to inform them about the latest edition.
Direct Marketing
Directly selling products to customers is referred to as direct marketing. Ralph Lauren will have calling agents who will promote the special edition products by making calls to its loyal customers. The company will also prepare printed material for customers to inform them about the new products.
Publicity
Ralph Lauren will publicize its special edition products by making use of the traditional and digital media. The companies will place advertisement billboards to attract customers. The companies will also publicize its brand by advertising its products on electronic and press media (Kennedy 77).
Public Relation
Public relations referred to the planned communication process that establishes and manages beneficial relations between the company and the general public (Smith 22). Ralph Lauren will develop its public relations by holding various social events that will help it to interact with customers and also build close relationships with third parties. Similarly, Ralph Lauren will work on developing public relations as a part of its marketing campaign.
Sponsorships and Events
Ralph Lauren must understand the importance of making the promotional campaign stronger and appealing. It would need to find supportive sponsors for this purpose. Sponsorships help a company to attain the marketing objectives as they provide the needed marketing support (Cornwell 101).
Ralph Lauren is a well-reputed brand. Therefore, it will not be an issue for the company to find sponsorships for its products. It can select the best company to sponsor its product’s promotional campaign.
Similarly, organizing events for brand promotion plays a vital role in making customers excited about the upcoming product. Ralph Lauren will organize different events at public places such as shopping malls to promote its products. It will also organize different private events to display its special edition products. Ralph Lauren will invite different celebrities to these events. They will also invite the press media to cover these events and the company’s new products.
Networking
Networking refers to the marketing technique that will require Ralph Lauren to appoint independent agents to sell and promote its products in different regions. It will also employ online marketing agents and bloggers to promote their special edition products. Ralph Lauren will use social media websites to promote its products and form a network of marketers.
Marketing Promotional Calendar
Date
Marketing Event
Task Description
1stDecember 2017
The special edition product will be launched in an event.
A special event will be organized to launch the new products.
3rdJanuary 2018
Public promotional shows will be held at different shopping malls.
The products will be showcased at different shopping malls to attract the general public.
6thJune 2018
An online promotional show will be launched.
The company will make use of online promotional shows to attract online users.
18thOctober 2018
The direct and personal selling campaign will be launched.
The company will appoint selling agents to promote the brand.
Advertising and Promotional Draft
Ralph Lauren will have an effective marketing plan to promote its products. It will start its promotional campaign by organizing high-profile fashion events in different cities to attract customers. The company must strengthen its public relations by initiating a promotional program targeting the general public. The companies will draft print and digital advertisements for promoting their products.
Advertisement Draft
Figure 1. Possible Advertisement Example.
Experience the world between your ears
Ralph – Bose® Headphones
Public Relation Event
Figure 2. Public Relations Event.
Service Strategy
The customers are always searching for a brand that offers valuable services (Gibson 121). For this reason, Ralph Lauren will fulfill the customer requirements by ensuring that their after-sales service is highly supportive. Ralph Lauren will ensure that its service pricing and promotion strategies are effective to achieve customer satisfaction.
The customer analysis has acknowledged the following requirements for effective service strategies
Ralph Lauren and Bose should offer helpful after-sales service.
Ralph Lauren and Bose should increase the efficiency of their services.
Financial Plan
The financial plan includes cost analysis, sales budgets, income statement, contribution margin, and break-even analysis.
Cost Analysis
Table 2 indicates the number of units to be produced to meet the marketing objective related to sales of each product category. The marketing objective is to achieve sales of 120,000 units in the first year. The cost analysis is based on the competitor’s costing of its product (i.e. Beats Headphones) (Einstein). The table provides details of all components that will be used for manufacturing earphones, headphones, and speakers. The figures are adjusted for Ralph-Bose.
Table 2. Estimate of Cost. Source: (Einstein).
Ralph Lauren & Bose Special Edition headphone
Per Unit
Retail price of product: $699, $599, and $399
Total Monthly Units Produced:
120,000/12 = 10,000
Direct Labor
Engineering Staff
$45,000
Designer Staff
$30,000
Machine Staff
$10,000
Direct Labor Expenses
$75,000
Direct Materials
Per Unit
Quantity Per Unit
Form Ear-pad
$0.07
2
$1,400
Ear-pad Holders
$0.10
2
$2,000
Speaker Grill
$0.18
2
$3,600
Ear-cup Shell
$0.05
2
$1,000
Brand Sticker
$0.02
2
$400
Headband – Outer
$0.18
1
$1,800
Headband – Inner
$0.10
2
$2,000
Headband – Cushion
$0.15
4
$6,000
Outer Plastics
$0.25
4
$10,000
Inner Plastics
$0.15
2
$3,000
Stamped Metal
$0.40
2
$8,000
Springs
$0.09
2
$1,800
Screws
$0.10
2
$2,000
Support Metal
$1.80
2
$36,000
Stereo Jack
$0.11
1
$1,100
Headphone Jack
$0.16
1
$1,600
Wire
$0.08
1
$800
Speaker
$1.20
2
$24,000
Cable
$1.15
1
$11,500
Soft Case
$0.70
1
$7,000
Manual
$0.50
1
$5,000
Hard Box
$1.00
1
$10,000
Direct Materials Expenses
$140,000
Manufacturing Overhead
Delivery Truck Lease
$12,000
Utilities
$3,500
Insurance
$1,500
Manufacturing Overhead Expenses
$17,000
Period Costs
Administrative Utilities
$2,000
Admin customer service telephone
$2,500
Shipping costs
$35,000
Administrative Salaries
$30,000
Marketing
$200,000
Period Costs Expenses
$286,500
TOTAL OPERATING EXPENSES
$518,500
VARIABLE COST PER UNIT
$21.50
Table 2 Indicates that the total operating expenses of manufacturing and selling Ralph-Bose products will be $518,500. The variable cost per unit is estimated to be $21.50. The low variable cost implies that the product will have a high contribution margin.
Sales Budget – Monthly
Table 3 indicates the monthly sales budget for Year 1. The distribution of sales per month is based on the marketing objective. It is expected that 50,000 units, 40,000 units, and 30,000 units of earphones, headphones, and speakers respectively will be sold in Year 1 through Ralph’s flagship stores and its online website. It could also be noted that the highest proportion of monthly sales will be of earphones.
Table 3. Sales Budget – Monthly.
Retail Price
Sales Proportion
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Monthly Sales
10,000
10,000
10,000
10,000
10,000
10,000
Headphones
699
33%
3,333
3,333
3,333
3,333
3,333
3,333
Speakers
599
25%
2,500
2,500
2,500
2,500
2,500
2,500
Earphones
399
42%
4,167
4,167
4,167
4,167
4,167
4,167
Sales Revenue
100%
5,489,990
5,489,990
5,489,990
5,489,990
5,489,990
5,489,990
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Total
Monthly Sales
10,000
10,000
10,000
10,000
10,000
10,000
120,000
Headphones
3,333
3,333
3,333
3,333
3,333
3,333
40,000
Speakers
2,500
2,500
2,500
2,500
2,500
2,500
30,000
Earphones
4,167
4,167
4,167
4,167
4,167
4,167
50,000
Sales Revenue
5,489,990
5,489,990
5,489,990
5,489,990
5,489,990
5,489,990
65,879,880
Sales Budget – Yearly
Table 4 indicates that yearly sales of the new business are based on the growth rate estimation, which is discussed in the growth plan. The business can expect increasing sales in the next two years as the market conditions are favorable and the demand for music accessories is also likely to increase in the next few years that will support the business to achieve its marketing objectives.
Table 4. Sales Budget – Yearly.
Year 1
Year 2
Year 3
Sales (Units)
120,000
132,000
147,840
Sales Revenue
65,879,880
72,467,868
81,164,012
Income Statement
Table 5 provides the income statement of the business for Year 1. The effective tax rate of Ralph Lauren is 33.87% (Ralph Lauren’s Effective Tax Rate by Quarter), which is used for calculating the tax payable amount. It could be noted that the proposed business is expected to have a high-profit margin. The budgeted income statement is prepared on the basis of the analysis of the company’s competitor that is currently selling its products at a high-profit margin.
Table 5. Income Statement – First year.
Income Statement
Ralph Lauren & Bose Special Edition Headphone
For the period ending Year 1
$
Sales Revenue
65,879,880
Less:
Direct Material Expenses
1,680,000
Direct Labor Expenses
900,000
Manufacturing Overhead
204,000
Selling and Administrative Expenses
3,438,000
Earnings before Interest and Tax
59,657,880
Tax
20,206,124
Earnings After Tax
39,451,756
Contribution Margin and Break-Even Level
Table 6 calculates the contribution margin of the new products. The contribution margin is very high because of low variable costs. The contribution margin per unit is calculated by dividing the total contribution margin by the number of units that are expected to be sold in Year 1.
Table 6. Contribution Margin and Break-Even Level.
Year 1
Sales Revenue
65,879,880
Less: Variable Costs
Direct Labor
900,000
Direct Materials Expenses
1,680,000
Contribution Margin
63,299,880
CM per Unit
527
Break-Even Level
Fixed Costs
3,642,000
CM per Unit
527
Break-Even Level
6,904
The break-even analysis provided in Table 6 indicates that the company will have to sell 6,904 units to break even. The break-even level is very low, and it could be indicated that the proposed business is likely to be highly profitable.
Measurement and Evaluation
The financial plan indicates that the company’s marketing objectives will be achieved in Year 1. The company needs to ensure that the marketing strategy assists the company to generate greater demand for its products. The growth in the company’s sales is predicted on the basis of the current market conditions and forecasts. The demand for music accessories is likely to grow in the future as customers are increasingly using portable music devices.
Risk Analysis and Growth Plan
There are various risks associated with the launch of the new products that are listed in the following.
The product may fail to create demand for it in different markets.
The product may not satisfy the customers’ needs and requirements.
The marketing strategy of the company may become ineffective.
The management may fail to predict changes in the market.
The company’s costs may increase due to the rising cost of materials.
Based on the risks identified, the sensitivity analysis has been prepared by adjusting the company’s forecasted sales. The pessimistic scenario is created by reducing the company’s sales by 50%. The optimistic scenario considers an increase in the company’s sales by 50%.
Risk Analysis
Table 7. Sensitivity Analysis.
Scenario
-50.00%
Base
50.00%
$
$
$
Sales Revenue
34,673,962
69,347,923
104,021,885
Less:
Direct Material Expenses
1,680,000
1,680,000
1,680,000
Direct Labor Expenses
900,000
900,000
900,000
Manufacturing Overhead
204,000
204,000
204,000
Selling and Administrative Expenses
3,438,000
3,438,000
3,438,000
Earnings before Interest and Tax
31,235,962
63,125,923
100,583,885
Tax
10,579,620
21,380,750
34,067,762
Earnings After Tax
20,656,341
41,745,173
66,516,123
Net Profit Margin
59.6%
60.2%
63.9%
Table 8 indicates that the growth rate is estimated to be 10% and 12% in Year 2 and Year 3 based on the marketing objective. The aim of the marketing plan is to increase the number of customers every year through effective marketing strategies.
Table 8. Expected Growth Rate.
Growth Rate
Year 2
Year 3
10%
12%
Long-term Strategy
The proposed business is expected to have a high net profit margin. It will generate positive cash flows for the company that could be reinvested in the business development and product development. The strategy will ensure that the business continues to remain profitable and customers continue to demand its products.
Works Cited
Cornwell, T. Bettina. Sponsorship in Marketing: Effective Communication through Sports, Arts and Events, London: Taylor & Francis Publiishers, 2014. Print.
Polo Ralph Lauren is a clothing company started by Ralph Lauren and specializes in semi-formal casual wear for men, women and children (not as a unique specialization because the company also produces accessories, fragrances and other home clothing, such as home towels).
Its products are however high-end and are well known throughout America and certain parts of Europe and Asia (Kent, 2003, p. 111). The company’s impact in the American fashion industry is profound, and this is the reason most of the company’s products are well known throughout the country. The company’s headquarter is in Manhattan, New York, but it has several outlets in Europe (in locations such as London) and Asia (in locations such as Japan).
Polo Ralph Lauren is an appropriate company for this analysis because it has been in existence for a long time (since 1967) and therefore, there is an immense body of information regarding its strategies and goals.
Emphasis on strategies and goals is made in this case because this study focuses on how the company’s current strategies are designed to meet the company’s goals and objectives. As mentioned earlier in this study, Polo Ralph Lauren was started in 1967 by Ralph Lauren, who only specialized in men’s wear, and more specifically, men’s ties (Kent, 2003, p. 111).
The first store was opened in Manhattan, but in 1971, the company ventured into women’s clothing by starting another store in Beverly Hills, California (Kent, 2003, p. 111). In the early 80s, the company opened its first global store out of America (London), and by 1997, the company had already been listed in the New York stock exchange.
In 2009, the company boasted of having more than 160 stores around the globe, with more than 24,000 employees in 31 countries (Wright, 2011). The company’s current threats are: competition, increase in counterfeit goods and the shaky world economy, which is significantly affecting the company’s sales because recent global financial downturns have eroded customer’s buying power, and more especially, the demand for high-end goods.
Strategy and Management
Polo Ralph Lauren’s business strategy is a mix of several strategies aimed at improving the company’s brand presence in the global map, and strengthening the competitiveness of the brand. These strategies are intertwined in a flexible brand strategy, developed along the lines of retail, wholesale and licensing, although the brand has still remained true to its identity) (Lauren, 2011, p. 1).
The company’s mission statement is to “Redefine American style, provide quality products, create worlds, and invite people to take part in our dreams” (ChaCha Search, Inc., 2011, p. 1). The company’s strategic goals are however firmly designed to expand the company’s global presence because one core pillar of the company’s strategy is to continue building and extending the Polo Ralph Lauren brand, by improving the brand’s unique luxury design and quality.
The company also expects to expand its brand strategy by focusing on its advertising and marketing strategies, and through this effort, the company expects to empower its retail stores to further uphold the brand strengthening strategy. This strategy is expected to be further complemented by excellent customer service, merchandize mixing, and visual presentation, which are meant to attract more customers and build on a strong brand strategy, designed to come up with new products (Lauren, 2011, p. 1).
The second pillar in the company’s core strategy is to focus on specialty brand retail, where brand differentiation and position stand out to elevate the Polo Ralph Lauren brand above the competitors’.
The company’s third pillar is closely associated with the first, because it is based on expanding the brand’s international presence. This strategy is based on expanding the brand’s operations through new product developments, sensitive to the host’s culture.
The company’s managerial structure is also a strong pillar of the company’s operations. At the top of the managerial structure is the company’s chief executive office, assisted by the company’s vice president.
The company’s chief executive officer has always been Polo Ralph Lauren and since the brand was personally built, the company has been subject to a hierarchical structure of management, where most of the decisions are made by the CEO (Lauren, 2011, p. 1).
The management team is also comprised of other highly qualified individuals, with an impeccable academic qualification and sufficient experience in the fashion industry.
Employee recruitment and selection is undertaken by an independent human resource team, but the employees undergo a thorough vetting process to assess the potential candidates’ experience in the fashion world, and how best they can be of value to the organization. A great part of the hiring process is normally undertaken online and candidates are sourced in the same manner.
After selection, employees are taken through a training and development program, where they are oriented with how the organization works. The company’s internship program is also another strategy the company uses to nurture new talent through training and development.
Market Mix
Polo Ralph Lauren’s marketing mix entails the company’s distribution, promotion, competitive and product and price strategies. As mentioned earlier in this study, the company majorly deals in high-end clothing products for men, women and children, but on the side, the company also produces fragrances accessories, towels, and similar house ware materials, which are of exemplary quality, but priced relatively higher than normal brands.
The company’s distribution strategy is characterized by a strong emphasis on the company’s retail outlets, although some of the company’s products are also moved through the wholesale channel. Depending on the market in question, the company majorly uses the two strategies.
With regards to the company’s promotion strategy, a lot of emphasis is laid on advertising and branding, as opposed to public relations, direct selling or similar sales approaches. However, there is also a strong emphasis by the company to enrich its customer experience by guaranteeing high quality customer services.
This is the core strategy used to retain its customers. However, the company majorly relies on its advertising and branding strategies to attract customers. Polo Ralph Lauren’s major competitor in the high-end clothing business is Louis Vuitton. Louis Vuitton’s strategy is also focused on international expansion, but its focus is majorly centered on reaching out to the growing number of wealthy customers in emerging markets such as China and India (Bloomberg, 2007).
Financial Analysis
Polo Ralph Lauren’s financial performance has been on a positive increasing trend, considering the company has experienced an increase in revenues over the past two years. With regards to the net income, Wright (2011) affirms that, “The fiscal 2011 net income was $568 million, or $5.75 per diluted share, compared to net income of $480 million, or $4.73 per diluted share, for Fiscal 2010” (p. 2).
When the company’s performance, in terms of net revenues, for the fourth quarter of the final 2011 fiscal period, compared to the same fourth quarter fiscal period, in the year 2010, it is affirmed that, there was a significant increase in net revenue of 7% from ($1.3 billion to $1.4billion) (Wright, 2011).
The company’s profits are determined using the above parameters, it is affirmed that, there was a 3% increase in profit from the year 2010 to 2011. The company’s stock price is also on the upward trend, with the year 2011 witnessing an increased share price margin of +0.09%. The following chart shows the increase in the company’s stock prices:
From this trend, the company seems to be making a positive growth, with regards to its financial performance
Conclusion
Polo Ralph Lauren’s strategies are very diverse and dynamic. Though most of the company’s strategies are forthright and tailored to deal with today’s competitive business environment, the company seems to be significantly diverting from its core mission, which is to improve the American style of life and provide an enriching experience to its customers, by providing high quality goods.
However, the company seems to focus more on an international strategy aimed at increasing its profitability and expanding its brand presence. This seems to be a strategy adopted to overcome its competitive challenges.
In other words, it is more outward oriented, than internally motivated. Regardless, the company seems to be doing well, with regards to its financial performance and marketing mix, because it has been able to experience increased profitability in recent financial postings. Comprehensively, the company needs to put more effort in merging its strategies with its core business goals.
References
Bloomberg. (2007). Louis Vuitton’s Life of Luxury. Web.
ChaCha Search, Inc. (2011). What Is Polo Ralph Lauren’s Mission Statement? Web.
Kent, J. (2003). Business Builders in Fashion. New York: The Oliver Press, Inc.
Lauren, R. (2011). Growth Strategies. Web.
Wright, K. (2011). Polo Ralph Lauren Corporation Reports Financial Results for Fourth Quarter & Full Year 2011 – NYSE: RL. Web.
As Ralph Lauren states, the mission of his company is to redefine American fashion and style, offer high-quality products to its customers, and involve individuals in the process of creation of those products. However, Ralph Lauren does not have a vision statement. The latter is critical to the company for the reason that it would provide the options for future growth (Schley and Weston 99). Moreover, the vision statement would direct the organization and help review the short-term and long-term objectives.
Description of the Brand
The organization functions in three sections: Retail, Wholesale, and Licensing. Ralph Lauren Corporation proposes a variety of clothing goods, together with male and female collections which are retailed under numerous brand titles. Overall, Ralph Lauren Corporation trades its goods to chain stores and specialized stores. The company also provides golf apparel. Ralph Lauren Corporation also features a variety of retail stores and its e-commerce websites. The corporation also sells its wear, household, and other goods by means of licensing agreements (Lauren 15).
Products and Services
Ralph Lauren Corporation produces its goods for both men and women, including footwear, wristwatches, belts, hats, eyewear, fine jewelry, and leather goods, including shoulder bags and luggage. There are numerous other goods produced by the Ralph Lauren Corporation which comprise bedding and bath goods, fixtures, cloth and wall covering, lights, paint, giftware, and tabletop. Moreover, it offers a series of fragrances for both men and women.
Unique Features
One of the unique features of the Ralph Lauren company is its multi-brand approach. It provides various services to its clients and even has restaurants in several parts of the world. One may find the Polo Bar and Ralph’s Coffee in New York City. There is also a restaurant sited in Chicago and yet another restaurant located in Paris. Ralph Lauren strives to conquer the market by means of a unique amalgamation of seemingly incompatible brands.
Current Production and Supply Chain
The key driver for Ralph Lauren’s production is its improved supply chain speed. The corporation elaborated and implemented a cross-functional teamwork approach. This move allowed Ralph Lauren Corporation to strengthen the collaboration with its contractor base in Asia. The current strategy also helped the company to minimize costs and increase the quality of its merchandise (Geczy 149). The corporation is also looking to concentrate on three of its brands – Polo, Lauren, and Ralph Lauren. In order to match its demand and supply, the company decided to split its orders into smaller pieces in order to minimize the risk of selling out and getting behind.
Environmental Factors
The environmental topic is one of the characteristics of the modern business world which Ralph Lauren Corporation should not ignore. Society and government have become exposed to numerous environmental dilapidations. Ralph Lauren currently implements policies aimed to minimize the negative impact on the ecology. The company also pays attention to corporate responsibility in order to contribute to the improvement of the current state of ecology (Springsteel 86). This is how the company manages to get adequate support from the public and the administration. The tactic that is currently used should also involve the implementation of a reutilize-and-recycle strategy.
Company Structure
In 2016, the company has seen several important transformations in its organization. Ralph Lauren Corporation embraced a novel international organizational structure. These transformations capitalized on the potential of Ralph Lauren brands and produced comprehensive growth (Sheridan 33). As stated by Ralph Lauren, the new CEO’s knowledge in tactically renovating business and functioning models from local and market-focused companies to international brands allowed him to play the fundamental management role in Ralph Lauren’s administrative renovation.
Company Performance
The new organizational structure helped the corporation increase its income level in comparison to 2015. The total income grew by 6% and stopped at the $6,860 million marks. Ralph Lauren stated that this significant growth was also a result of the new CEO’s professional approach and updated the company’s vision statement.
Target Market
Ralph Lauren Corporation targets customers all over the world. The company’s customer profile comprises various experts, rich and prosperous people who are highly respected in the society, individuals with several houses, and equestrians, sailors, and people who practice sports such as golf. Ralph Lauren’s customers want prestige, fascination, extravagance, and honor (Williams 101). Their key values include first-class quality, uniqueness, and stylishness. The fundamental desire of Ralph Lauren’s target customers is to be appreciated, well-regarded, affluent, experienced, and classy.
Potential Product Lines
One of the potential product lines is a clothing line for pets. This move is supported by the fact that the majority of Ralph Lauren’s clients are pet owners. The first two collections would feature clothes for cats and dogs. There should also be a collection for other animals as well. The option of personalization should also be available to the customers.
Another potential product line is the customization of the vehicle interior trim. Ralph Lauren would offer its services to the car owners that wish to personalize the look of their car. This would be an important asset for the company for the reason that Ralph Lauren’s target customers are rich and enjoy luxury. Providing them with the option of customizing their car would open a whole new array of opportunities for the corporation.
Works Cited
Geczy, Adam. Fashion and Orientalism: Dress, Textiles and Culture From the 17th to the 21st Century. London: Bloomsbury Academic, 2013. Print.
Lauren, Ralph. Ralph Lauren. Milano: Rizzoli, 2011. Print.
Schley, Bill, and Graham Weston. The Unstoppables: Tapping Your Entrepreneurial Power. New York: Routledge, 2012. Print.
Sheridan, Jayne. Fashion, Media, Promotion: The New Black Magic. Chichester: Wiley-Blackwell, 2010. Print.
Springsteel, Lisa. Becoming a Fashion Designer. Hoboken: John Wiley & Sons, 2013. Print.
Williams, Kim. Fashion, Design and Events. New York: Routledge, 2013. Print.
