The World
of
Armani
Chris Grey
Maria Parra
Daniyal Ranmal
Steven Reese
Ibrahim Shinwar
Table of Contents
– Industry Analysis
– Competitor Analysis
– Company Analysis
– Consumer Analysis
– Key Points for Segmentation, Targeting and
Positioning
– Key Points for Product Strategy
– Key Points for Pricing Strategy
– Key Points for Distribution Strategy
– Key Points for Advertising
– Promotion
Industry Analysis
For over thirty years, Armani has continued to dominate and revolutionize the fashion
industry. With origins in Milan, Italy, the brand has consistently been able to broaden it’s
demographic across many nations. The “World of Armani” has a global presence throughout four
continents, reaching over 40 countries.
Armani is unique in its own right, using its notoriety to not only venture into the fashion
industry but also become a brand of many facets with market presence in the Hotel and Resort
commerce, furniture, dining, and cosmetics. However, what remains consistent in Armani’s
brand is the perception of being “High End.” Although the mass market finds luxury goods
unaffordable, those who do not have the financial means receive the marketing and advertising of
such brands as an aspiration of something to own. Armani has been able to divide itself based on
varying demographic factors to appeal to all consumers. Armani Exchange is a great example of
the companies’ strategic marketing approach. This line of apparel allows the youth to enjoy the
reputation and status of wearing Armani without it being too exorbitant. The apparel industry
continues to be as competitive and unpredictable as can be. With fashion trends changing by the
season, and its imperative companies like Armani “stay in the know” and manage the ever–
changing tendencies.
Ranked as one of the World’s Most Powerful Brands at #97 (Forbes), Armani is
undoubtedly a huge leader in its primary industry of high-end fashion. Currently, the brand lies
within the STAR category of the BCG Matrix. Armani has benefited from high growth and high
market share. Thus, they are able to invest their profits generated into their subsidiary businesses,
which are the cash cows.
Similar to most global businesses, Armani has to remain compliant with numerous
international regulatory factors. Patents and marketing communications will always be ever–
lasting conflicts among competitors, but Armani has been able to relieve itself many regulatory
hardships with its powerful online purchasing presence.
Competitor Analysis
Armani has established since 1975 a long history of haute couture, elegance and prestige.
Aside from styling many A-list stars such as Rihanna, Blake Lively an Ryan Gosling, Armani
prides has grown indefinitely the past forty years as we began our journey with a specialization
in menswear we have expanded to womenswear, underwear, accessories, shoes, handbags and
glasses. In 2013 despite the economic recession’s worldwide Armani consolidated revenues grew
by +4.5% despite the slowdown of the luxury industry in neighboring markets. This placed
Armani in the net financial position of approximately €700 million. In 2014 reported a 4.5
percent rise in annual sales the company spent 100 million euros ($137 million) on store
development and other projects the year before and said it achieved growth for all brands. This
liquidity has provided the company with the ability to make increasing investments to further
strength its competitive market. This success lies in the ability to unity creativity, brand character
and sales. Armani hopes to keep styling the new generation of fashion consumers offering
individual style through an accessible collection for men and women.
