Introduction To Marketing Assignment 446610

   

Fashion  119:  Individual   Assignment   Jacqueline  Trunks,  Student  #  821-­‐550-­‐381   Section  #  2  

   

 

 

(Reed  Krakoff  77)  

2   Fashion  119  Individual  Assignment      

STEP  1:  Description  

The  ad  I  chose  to  base  my  assignment  on  features  a  model  carrying  a  Reed  Krakoff   bag  for  his  Fall/Winter  2012/2013  season.  This  ad  was  featured  in  the  September   2012  edition  of  InStyle  magazine.  The  bag  is  a  black  and  snakeskin  leather  satchel.   After  looking  on  Reed  Krakoff’s  website,  www.reedkrakoff.com,  the  bag  appears  to   be  the  “Atlantique”.  The  bag  currently  retails  for  $2,890  (Reed  Krakoff).  

  STEP  2:  Total  Product  Concept   LAYER   DESCRIPTION   Core   Product   Actual   Product  

(Clements  et  al.  148)   What  the  product  does   for  the  customer  –  the   benefits  derived  from   using  the  product   The  physical  good  or   service,  including  the   branding,  design,  and   features  that  the   consumer  receives  

REED  KRAKOFF   “ATLANTIQUE”  BAG   -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ -­‐

-­‐ Augmented   Additional  features  or   benefits  that  accompany   Product   the  product,  such  as  a   warranty,  a  service   -­‐ contract,  delivery   -­‐ options,  installation,  or  a   website   -­‐

Provides  a  carryall  for   customer’s  daily  necessities   Used  as  a  stylish  accessory     Status  symbol     Luxury  brand  of  “Reed  Krakoff”   Made  of  python,  felt,  &  vachetta   leather;  lined  with  twill  fabric   Includes  a  front  pocket  with   removable  zip  pouch,  back  slide   pocket,  front  &  back  zip  pockets   H:  13”  W:  13”  D:  5.5”  (Reed   Krakoff)   Can  be  ordered  &  delivered   through  their  website  or  other   retailers’  websites   Quality  craftsmanship   Comes  with  dust  bag  for  long-­‐ term  protection     Limited  repair  service  

    STEP  3:  Market  Segmentation  Approach    

Reed  Krakoff  is  using  niche  marketing  as  his  approach  to  market  segmentation.   Niche  marketing  is  defined  as  “allow[ing]  a  company  to  focus  its  efforts  on  a  limited   segment  in  the  market”  (Clements  et  al.  126).  As  a  designer  and  as  a  company  he  is   focusing  on  a  limited  segment  of  the  market.  Not  everyone  can  afford  to  purchase  a   handbag  that  costs  $2,890  so  marketing  of  this  product  is  focused  on  consumers   with  the  income  and  assets  available  to  make  such  a  purchase,  as  well  as  consumers   that  put  a  high  value  on  style,  status,  and  quality.  Krakoff  only  designs  handbags   within  a  certain  price  range,  thus  excluding  consumers  who  are  unable  to  afford   such  a  hefty  price  tag.  Krakoff’s  “niche”  is  in  a  target  market  consisting  of  affluent   women  that  are  interested  in  fashion  and  looking  to  be  a  bit  above  the  rest.  In   contrast,  Marc  Jacobs  produces  two  handbag  lines;  one  under  the  name  Marc  Jacobs   that  produces  higher-­‐end  luxury  handbags  and  another  under  the  name  Marc  by    

Jacqueline  Trunks  

 

  Marc  Jacobs  that  produces  handbags  at  a  more  accessible  price  point.  Marc  Jacobs   therefore  uses  segment  marketing  as  he  designs  different  handbags  to  meet  the   needs  of  different  target  groups.  Segment  marketing  is  defined  as  “deg   different  products  and  services  to  meet  the  needs  of  different  target  groups”   (Clements  et  al.  124).    

 

 

 

Jacqueline  Trunks  

 

4   Fashion  119  Individual  Assignment      

STEP  4:  Target  Market  Profile   CATEGORIES   VARIABLES   BREAKDOWN   Canada,  USA,  Europe,  China,  Japan,   Geographics   Region  

Demographics  

City  or   Census   Metropolitan   Area  Size   Density   Climate   Age   Gender   Family  Size   Stage  in   Family  Life   Cycle  

Income   Occupation  

Education   Ethnic   Background   Home   Ownership   Psychographics   Personality   Lifestyle   Behaviouristics   Benefits   Sought   Usage  Rate    Status   Loyalty   Status  

Australia   1,000,000+  

Urban   Any;  Cold  OR  Warm     25-­‐50   Female   1-­‐3   -­‐ Young  single  adult   -­‐ Young  married,  no  children   -­‐ Young  married,  with  children   -­‐ Older  married,  no  children   -­‐ Older  married,  with  children   -­‐ Older  single  adult   $65,000+   -­‐ Professional   -­‐ Managerial   -­‐ Sales   -­‐ *Works  in  the  fashion  industry*   College  or  University  graduate   All  ethnic  backgrounds   Owns  or  rents  home Trendy,  creative,  innovative   -­‐ Structured   -­‐ Assured   -­‐ Status   -­‐ Style   -­‐ Quality   Medium  to  heavy     First-­‐time  or  regular     Medium  

     

Jacqueline  Trunks  

 

 

  STEP  5:  Positioning  Map     More  Expensive                                                                        

Hermes    

 

Chanel     Proenza   Schouler    

Louis     Vuitton  

Mulberry  

Celine     Reed   Krakoff  

   

Classic  

Trendy  

Rebecca   Minkoff  

Coach    

Michael   Kors      

  Marc  by   Marc  Jacobs    

Aldo  

Less  Expensive    

Jacqueline  Trunks  

 

6   Fashion  119  Individual  Assignment      

  STEP  6:  Product  Life  Cycle   The  Reed  Krakoff  “Atlantique”  bag  is  currently  in  its  growth  stage  in  the  product   life  cycle.    

 

Competition   Marketing   Objective   Product  

Price  

Place  

Promotion  

Profit  

   

 

INCREASE  IN  COMPETITORS:  Many  designers  are  emulating  a   similar  shape  of  bag  in  response  to  the  growing  popularity  of  this   bag.  There  are  currently  many  high-­‐end  handbag  designers.     PRODUCT  DIFFERENTIATION:  Reed  Krakoff  is  attempting  to  set   himself  apart  from  the  competition  by  deg  a  unique  yet  highly   stylish  handbag  that  is  easily  identifiable  as  a  Krakoff  design.     INTRODUCING  MORE  FEATURES:  With  each  season,  the   “Atlantique”  bag  is  offered  in  more  colours,  textures,  materials,  and   sizes.   PRICE  IS  USUALLY  REDUCED:  However,  prices  remain  steady,  as   there  is  such  a  high  demand  for  this  bag;  there  is  therefore  no   reason  to  decrease  price.  The  handbag  is  made  of  luxury  materials   that  come  at  a  high  cost.   DISTRIBUTION  IS  INCREASED:  This  particular  bag  is  available  in  a   number  of  department  stores  across  North  America,  on  Reed   Krakoff’s  website,  as  well  as  at  numerous  other  online  retailers.     POINTS  OF  DIFFERENCE:  Many  celebrities  and  fashion  enthusiasts   promote  the  bag  through  editorials  or  by  being  seen  with  the  bag.   Emphasis  on  more  advertising  in  fashion  magazines.   INCREASED  PROFITS:  Sales  of  the  Reed  Krakoff  “Atlantique”  bag   are  showing  a  rapid  increase,  as  bags  are  selling  out  all  over  the   world.      

 

Jacqueline  Trunks  

 

 

References  Cited  

  Clements,  Christina,  et  al.  Marketing:  The  Core.  3rd  ed.  Canada:  McGraw-­‐Hill  Ryerson,   2011.  Print.     n.p.    Reed  Krakoff.  Reed  Krakoff,  n.d.  Web.  26  Sept.  2012.       Reed  Krakoff.  ment.  InStyle  26  September  2012:  77.    

 

Jacqueline  Trunks