Marketing Strategies of Noir and Illuminati II - Case Study Example

Noir Illuminati II--Case Study Critiques Introduction Noir and Illuminati II revolutionized the fashion industry whereby the two companies designed and produced high-quality luxury clothing for women (Leleux, 2011). Through vertical integration, the companies were able to maintain a high-quality fabric for the women clothing. Peter Ingwersen, the owner of the companies had complete knowledge about the fashion industry and focused on providing a unique touch in the fashion industry. His strategy was to change the perception of fashion by creating products that would depict corporate social responsibility in the nature of clothes they produced and marketed to women. They focused on producing something that people would appreciate instead of “personalizing the worst of human behavior” (Leleux, 2011). They achieved this by ensuring the clothes they produced generated a sense of beauty and feel of goodness in the clothes. The company focused on six Ps to create value of the in the fashion industry. The six Ps they used include position, pricing, products, promotion, placement and profitability. The simultaneous establishment of the companies (Noir and Illuminati) aimed at creating consistency and continuity of high-quality fashionable luxury clothes in the market. Illuminati would continue to furnish the Noir Company with high-quality cotton fabric while Noir would continue the production of affordable luxury clothes for its target clients (Leleux, 2011). Value creation The intention of the company was to offer fashionable, affordable luxury clothes in the market. The company creates value through promotion of “conspicuous spending” to that makes consumers associate with a particular brand positively (Leleux, 2011). They make customers appreciate the fashionable brand and get rid of the guilt of purchasing luxury clothes that translate into reasonable spending. Furthermore, the company promote socially responsible brand of clothes that makes the clients look attractive, unlike other fashion companies. Noir/Illuminate Companies relied on sex appeal as the fundamental driver of demand for their products. The clients did not have to feel condemned for wearing fashionable clothes because they were of quality and promoted the social and economic being of the society (Leleux, 2011). The positioning of the brand was achieved through style and pricing of the commodity that placed the products in the “social responsibility map.” Customers The target clients for Noir Company were rich class who could afford to spend sufficient money on the purchase of fashionable clothes to appear unique (Leleux, 2011). From the marketing strategy of the company, they used politicians and celebrities to create demand for the products. Therefore, not every person could afford such clothes, but the target was for the clients who can associate with a particular class of people. The clothes gave sex appeal and revealed corporate sexual responsibility. Although there were other companies dealing with fashionable luxury clothes, some people would not want to be associated with them because they did not incorporate attractiveness in the design (Leleux, 2011). The shoppers of the affordable luxury clothes are mainly the people with money to spend on beyond ordinary clothes (Leleux, 2011). Although most of the luxury shoppers are in the western countries there are shoppers across the globe with desire to associate with a particular class of celebrities. They target is the attractiveness and sex appeal of the clothes they buy. Although most buyers of clothes are interested in covering the cold, those focusing on affordable luxury clothes have desire to appear unique and attractive. They are people who feel the urge to give back to the society. Since Noir/Illuminati II companies intend to promote corporate social responsibility through their products, their consumers want to achieve a sense of responsibility (Leleux, 2011). Consumers purchase satisfaction of belonging to a particular class of people. Brand consistency Maintain brand consistency enables the company to win customer loyalty. The focus of Noir/Illuminati II was to offer affordable luxury clothes to its consumers. To achieve that consistency, the owner established Illuminati II to provide Noir with high-quality cotton fabrics (Leleux, 2011). However, at the beginning of its operations the company started securing orders for making uniforms for the workers. The company could not maintain consistency of luxury and affordability as initially expected because most companies will not afford to pay a high price for the uniform of the workers. However, the company has continued to partner with African farmers to obtain fair trade for the high-quality cotton fabrics for the use in their industry. They still focus on corporate social responsibility by ensuring cotton farmers enjoy fair prices for their cotton farm (Leleux, 2011). Furthermore, the company continues to supply its consumers with fashionable, affordable and luxury clothes. Pricing strategy The most intriguing thing about the Noir products was the desire to achieve affordability and in a luxury socially responsible manner. The challenge would be to minimize the cost of production to achieve affordable luxury (Leleux, 2011). The desire for cost control drove the company to strategize its production base in Portugal that has relatively lower production cost. They set the produces prices higher than those of average companies such as Zara and Donna Karan but lower than luxury leaders such as Prada (Leleux, 2011). This strategy was effective for the company because they were able to increase the profit margin and appeal to consumers seeking for affordable luxury clothes. Promotion Strategy Company used pull marketing strategy in which the focus was to create demand for the fashionable luxury clothing. They spread information about their products using massive promotions through the media (Leleux, 2011). The manager held interviews with various editors and through word of mouth to reach the top market. This approach allowed the company to reach potential customers and influence the demand of the products. The use of this strategy was of importance for the company’s products because it created unique value in the fashion industry. It was essential to for the manager to win the trust of the consumers with a focus of satisfying their egos. The use of celebrities and politicians as the ambassadors of the Noir’s fashion clothes who experienced media coverage was a key promotion strategy that lured consumers to associate easily with those products (Leleux, 2011). It enabled the potential consumers to imitate the celebrities and increased the demand for the products. The Noir/Illuminati companies operate will along the original plans when the companies were being established. The pricing and marketing strategies are well focused on achieving the companies’ goals. However, since the company use pull strategy, a combination of marketing and sales (pull and pull strategies can improve the business objectives by attracting more clients and maximize the revenue base. References Leleux, B. (2011). Noir / Illuminati II (Denmark). European Entrepreneurship Case Study Resource Centre Read More