Kering Case Solution
Kerings growth and expansion strategy clearly depicts its next move in the market by market development and productdevelopment. Through the case, it is seen that kering is planning to expandits functions in Australia and looking for more markets where there is an increasing trend of luxury products. While to do product development, it has adopted a unique strategy of acquiringluxury brands which addresses different segment.This move of kering is basically a mix of product development and also market development. It is productdevelopment in a sense, as it provides or add different luxury brands in its portfolio, creating a house of brand. While it is a market development because, the growth strategy of keringinvolveacquiring different luxury products that are catering differentsegments.
Kering strategy for product and market development is effective in fact it is a very smart strategy of developing the markets by acquiringdifferentluxury brands and making a big house of brands that targets different segments through different product offerings that all collectively belong to the branded house if kering.Through this strategy, kering is moving from house of brands to one whole Branded house
The mission statement of kering envisions to bring something in the market that is objected to bring betterment to the lives of the customers by offering them self-confidence and making an impression that speaks their personality out.it focuses to bring individuality and self esteem in the customers using its brand.
This mission statement is engraved in each of the step of creating and maintaining value chain. The channels embraces the mission by giving exquisite customer support and shopping experience adding in by introducing such designs that sets the trend in the market and carries a personality in itself. Customerembraces the mission of the company by showing unchanged loyalty which can be seen from the financials of kering that each year the company is gaining the profits and increasing its market share by 2-3 %.
Sustainability is an art that can only be maintained by businesses who are creative in terms of their product and process. Surely the two key processes mentioned in the case (creative and operational) laid the foundation of sustainability for kering.
Kering maintain its sustainability by offering such a productthat is unique in its own way.the company gives a freedom to think out of the box to devise something that has never been in market. Its key element is “change”, .the whole portfolio of kering follow the strategy if change to bring creativity to the table. Likefor SaintLauren, kering took a big creative risk to rebrand SaintLauren with new brand image and personality, it was a total risk but for kering creativity is all about taking risks.
In viewpoint of kering, operational processes are not only confined to maintain a supply chain.it is far more beyond that.kering believe operationalprocessesare the drivers of sustainability in market,while keeping the costs low .for kering it is unjustifiable to maintain the sustainability of product by raising the prices.in kering the teams collectively work to find the best solutions to maintain its supply chain which can be seen in case if gold, kering found a new cheaper source of pure elite gold, which initially was costing kering more than the new source.so it is all about continuousdevelopment inprocesses than can in turn enhance the operational processes and supply value chain.
The two key characteristic of luxurymarketing are rarity and experiential. These two characteristic justifies kering as a luxury brand.rarity defines the product is not democratic, it us offered to rare customers or target market to maintain exclusivity of the product, while a luxury brand always gives anexperience, it’s not just a product, but a personality a face that depicts the personality, expression and confidence of the wearer.
The initial challenge of using ecommerce means to market luxury products is, it over exposes the brand which dilutes the exclusivity of the brand and thus it is perceived as a normal brand. The key to luxury is rarity and exclusivity.
The advantage of using ecommerce means for luxury products is it creates exceptional customer serviceswhich in today’stimes creates distinction among same business model. Ecommerceplatform can be used in such a way that it gives access to the existing customers to make purchases inline too, only accessible by them. This feature yet again can create the factor if exclusivity fir existing customer and thus maintains brand personality and image...............................
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