5
The concept of the company: The guidelines underlying the various group acquisitions over the years can be Summarised into two key concepts: offer diversification and brand Differentiation . By exploiting each brand’s distinctive traits, while keeping with their strategic Choices, the Valentino Fashion Group S.p.A has taken advantage of many Development opportunities that the market had to offer. Some important brands have been acquired as a result of this strategy, such as Valentino, Hugo Boss, and famous licensed brands like M Missoni and Marlboro Classics, which, along with its own brand Lebole make it possible to cover an extensive range of the fashion spectrum. Place The Group selects stores for the distribution of its products on the basis of the Positioning of the relevant brand, the location, the level of service provided, the Degree of visibility given to its products, as well as profitability studies. The Group’s directly operated stores are generally located in cities where the Group has extensive knowledge of the market and which, thanks to their Prestige and importance are considered strategic for the relevant brand. Most Of Valentino boutiques are in North America, South America, Europe, Asia, Middle East. Most are in the big companies, because they have the highly Developing economic and a large number of luxury goods customers. Group worldwide Headquarters Valentino Fashion Group S.p.A Via Turati 16/18 20121 Milano The Valentino Fashion Group S.p.A operates in over 85 countries, with more than 700 single-brand boutiques and 112 directly-managed shops.

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The concept of the companyThe guidelines underlying the various group acquisitions over the years can beSummarised into two key concepts offer diversification and brandDifferentiation By exploiting each brandrsquos distinctive traits while keeping with their strategicChoices the Valentino Fashion Group SpA has taken advantage of manyDevelopment opportunities that the market had to offerSome important brands have been acquired as a result of this strategy such asValentino Hugo Boss and famous licensed brands like M Missoni andMarlboro Classics which along with its own brand Lebole make it possible tocover an extensive range of the fashion spectrum

Place

The Group selects stores for the distribution of its products on the basis of thePositioning of the relevant brand the location the level of service provided theDegree of visibility given to its products as well as profitability studiesThe Grouprsquos directly operated stores are generally located in cities where theGroup has extensive knowledge of the market and which thanks to theirPrestige and importance are considered strategic for the relevant brand MostOf Valentino boutiques are in North America South America Europe AsiaMiddle East Most are in the big companies because they have the highlyDeveloping economic and a large number of luxury goods customers

Group worldwideHeadquartersValentino Fashion Group SpAVia Turati 1618

20121 MilanoTel +39 02 624921Fax +39 02 62492584

1048698 Valentino Fashion Group France8 Place Vendome75002 ParisTel +33 1 43123660Fax +33 1 43123679

1048698 Valentino Fashion Group Hong KongUnit 3801-3 Vicwood Plaza199 Des Voeux Road Central Hong KongTel +852 2 7355822Fax +852 2 7369830

Valentino Fashion Group Usa

The Valentino Fashion Group SpA operates in over 85 countries with more than 700 single-brand boutiques and 112 directly-managed shops

11 West 42nd Street 26 FloorNew York - Ny 10036Tel 001 212 641 1600

Valentino Fashion Group Japan1f 1-2-10 Hirakawa-Cho Chiyoda-KuTokyo 102-0093Tel 0081 03 3263 6301Offices

Valentino Fashion Group SpAVia Dei Lanifici 136074 Maglio Di Sopra - VITel +39 0445 427411Products priceThe category Price High-quality ready-madeClothing 50000RED Valentino 500-1500Wedding dresses 1500-25000Men clothing 280mdash3800Shoes 480mdash780Belts 260mdash360Ties 126 mdash266Bags 280 mdash2800Eyeglass 180mdash380Perfumes 60-100Watches 900-2300The sales prices denominated in Euro of the Grouprsquos products have increasedOn average 2-3 per year over the last two years depending upon the productCategory The Company believes that information on average prices is notMeaningful in consideration of the variations in prices within the vast range ofProducts offered as well as the variation in prices applied to final consumers inThe various geographic markets where the Grouprsquos products are sold

Promotion The Grouprsquos public relations activities focus primarily on the following and monitoring of editorialsbull Regular contact with the most famous international celebritiesbull Organization of events in connection with for instance the launch ofcollections the opening of new markets or new DOS in prestigiouslocationsbull The organization of shows (for the Valentino and Hugo Boss brands) duringthe fashion weeks in Paris and Milan and during special events in certainmajor cities (such as Shanghai Berlin and Tokyo)bull Sponsorships of cultural events (Guggenheim Museum) and sporting events such as tennis formula one

Targeting

High class fashion conscious people Celebrities He has dressed a great many of the beautiful and famous women of the

worldincluding Jacqueline Kennedy Onnasis Joan Collins Princess Grace of MonacoGloria Guinness Elizabeth Taylor Audrey Hepburn Sophia Loren etc Inaddition to the elegant ladies of yesteryear Valentino also dresses the ladies oftoday Valentino has been popular with famous well-dressed women for morethan four decades including Jackie Onassis Elizabeth Taylor Halle BerryJennifer Garner Julia Roberts Jennifer Aniston Naomi Watts Claire DanesGwen Stefani Lindsay Lohan Claudia Shiffer Jennifer Lopez Cate Blanchettand Gwenyth Paltrow

Positioning

Vision- Todays fashion world is a framework which enhances values such as style and research creativity and innovation technology and craftsmanship Its distinctive feature is the skill to merge many spirits into a harmonious balance The real protagonists in this global scene are those who offer proposals charged with irresistible value and designed to integrate an extensive variety of products and trademarks by converging the offers quality and variety and consumer satisfactionMission-

To be the fashion worlds protagonists in the fashion and luxury sectors The highest quality standards in all market segments we serve

Steadily focusing on the demands of an unwaveringly evolving cosmopolite consumer we pursue

Excellence and innovation by establishing an on-going dialogue between passion and experience Through our values

Creativity and quality - the central factors of creative processes detailed research and skilled choice of materials total control of all processing phases

Differentiation and selection - multiple styles an extensive diversified offer Flexibility and efficiency - excellent production processes and logistics sourcing

management designed to ensure the highest product quality Continuity and innovation - enhancement of each brands distinctive features

application of advanced techniques to the management of global brands consistent strategic choices for global development

Ethics - integrity fairness and transparency in business relations with all stakeholders total compliance with international laws and regulations concerning labour protection

Page 2: vvalentino 4p

11 West 42nd Street 26 FloorNew York - Ny 10036Tel 001 212 641 1600

Valentino Fashion Group Japan1f 1-2-10 Hirakawa-Cho Chiyoda-KuTokyo 102-0093Tel 0081 03 3263 6301Offices

Valentino Fashion Group SpAVia Dei Lanifici 136074 Maglio Di Sopra - VITel +39 0445 427411Products priceThe category Price High-quality ready-madeClothing 50000RED Valentino 500-1500Wedding dresses 1500-25000Men clothing 280mdash3800Shoes 480mdash780Belts 260mdash360Ties 126 mdash266Bags 280 mdash2800Eyeglass 180mdash380Perfumes 60-100Watches 900-2300The sales prices denominated in Euro of the Grouprsquos products have increasedOn average 2-3 per year over the last two years depending upon the productCategory The Company believes that information on average prices is notMeaningful in consideration of the variations in prices within the vast range ofProducts offered as well as the variation in prices applied to final consumers inThe various geographic markets where the Grouprsquos products are sold

Promotion The Grouprsquos public relations activities focus primarily on the following and monitoring of editorialsbull Regular contact with the most famous international celebritiesbull Organization of events in connection with for instance the launch ofcollections the opening of new markets or new DOS in prestigiouslocationsbull The organization of shows (for the Valentino and Hugo Boss brands) duringthe fashion weeks in Paris and Milan and during special events in certainmajor cities (such as Shanghai Berlin and Tokyo)bull Sponsorships of cultural events (Guggenheim Museum) and sporting events such as tennis formula one

Targeting

High class fashion conscious people Celebrities He has dressed a great many of the beautiful and famous women of the

worldincluding Jacqueline Kennedy Onnasis Joan Collins Princess Grace of MonacoGloria Guinness Elizabeth Taylor Audrey Hepburn Sophia Loren etc Inaddition to the elegant ladies of yesteryear Valentino also dresses the ladies oftoday Valentino has been popular with famous well-dressed women for morethan four decades including Jackie Onassis Elizabeth Taylor Halle BerryJennifer Garner Julia Roberts Jennifer Aniston Naomi Watts Claire DanesGwen Stefani Lindsay Lohan Claudia Shiffer Jennifer Lopez Cate Blanchettand Gwenyth Paltrow

Positioning

Vision- Todays fashion world is a framework which enhances values such as style and research creativity and innovation technology and craftsmanship Its distinctive feature is the skill to merge many spirits into a harmonious balance The real protagonists in this global scene are those who offer proposals charged with irresistible value and designed to integrate an extensive variety of products and trademarks by converging the offers quality and variety and consumer satisfactionMission-

To be the fashion worlds protagonists in the fashion and luxury sectors The highest quality standards in all market segments we serve

Steadily focusing on the demands of an unwaveringly evolving cosmopolite consumer we pursue

Excellence and innovation by establishing an on-going dialogue between passion and experience Through our values

Creativity and quality - the central factors of creative processes detailed research and skilled choice of materials total control of all processing phases

Differentiation and selection - multiple styles an extensive diversified offer Flexibility and efficiency - excellent production processes and logistics sourcing

management designed to ensure the highest product quality Continuity and innovation - enhancement of each brands distinctive features

application of advanced techniques to the management of global brands consistent strategic choices for global development

Ethics - integrity fairness and transparency in business relations with all stakeholders total compliance with international laws and regulations concerning labour protection

Page 3: vvalentino 4p

Targeting

High class fashion conscious people Celebrities He has dressed a great many of the beautiful and famous women of the

worldincluding Jacqueline Kennedy Onnasis Joan Collins Princess Grace of MonacoGloria Guinness Elizabeth Taylor Audrey Hepburn Sophia Loren etc Inaddition to the elegant ladies of yesteryear Valentino also dresses the ladies oftoday Valentino has been popular with famous well-dressed women for morethan four decades including Jackie Onassis Elizabeth Taylor Halle BerryJennifer Garner Julia Roberts Jennifer Aniston Naomi Watts Claire DanesGwen Stefani Lindsay Lohan Claudia Shiffer Jennifer Lopez Cate Blanchettand Gwenyth Paltrow

Positioning

Vision- Todays fashion world is a framework which enhances values such as style and research creativity and innovation technology and craftsmanship Its distinctive feature is the skill to merge many spirits into a harmonious balance The real protagonists in this global scene are those who offer proposals charged with irresistible value and designed to integrate an extensive variety of products and trademarks by converging the offers quality and variety and consumer satisfactionMission-

To be the fashion worlds protagonists in the fashion and luxury sectors The highest quality standards in all market segments we serve

Steadily focusing on the demands of an unwaveringly evolving cosmopolite consumer we pursue

Excellence and innovation by establishing an on-going dialogue between passion and experience Through our values

Creativity and quality - the central factors of creative processes detailed research and skilled choice of materials total control of all processing phases

Differentiation and selection - multiple styles an extensive diversified offer Flexibility and efficiency - excellent production processes and logistics sourcing

management designed to ensure the highest product quality Continuity and innovation - enhancement of each brands distinctive features

application of advanced techniques to the management of global brands consistent strategic choices for global development

Ethics - integrity fairness and transparency in business relations with all stakeholders total compliance with international laws and regulations concerning labour protection

Page 4: vvalentino 4p

Excellence and innovation by establishing an on-going dialogue between passion and experience Through our values

Creativity and quality - the central factors of creative processes detailed research and skilled choice of materials total control of all processing phases

Differentiation and selection - multiple styles an extensive diversified offer Flexibility and efficiency - excellent production processes and logistics sourcing

management designed to ensure the highest product quality Continuity and innovation - enhancement of each brands distinctive features

application of advanced techniques to the management of global brands consistent strategic choices for global development

Ethics - integrity fairness and transparency in business relations with all stakeholders total compliance with international laws and regulations concerning labour protection