Imagine you are senior manager with the Italian luxury goods house best known for its leather goods with the signature leather-weaving technique called intrecciato. Bottega Veneta was founded in 1966 and grew renown over time thanks to its craftsmanship and the appeal of its discreet, no-logo design, following its tag line "When your own initials are enough". In the 90s, the brand had abandoned its understated ethos and ventured into more trend-driven fashion territory, resulting in a decline of its popularity and luxurious perception. With the new creative director Thomas Maier in 2001 (in the course of the acquisition by Gucci Group/ PPR), the brand returned to its original identity: he removed visible logos, focused on the signature intrecciato weave and artisanry instead and made the brand live up to earlier success.
Meanwhile, Bottega Veneta is successfully offering a broad range of products including leather goods, women's and men's ready-to-wear, fine jewellery, furniture, fragrance and more.
You are responsible for the development of the product portfolio and the board is asking you to enhance the brand's success by broadening Bottega Veneta's product offer. Would you follow the board's request and extend the product range? Explain your decision. Please base your recommendation on a sound analysis of opportunities and potential threats of extending the brand.
In case you decide on extending the brand: Which strategic decisions would you take? Which categories could you imagine? What is important to consider when extending the brand? Feel free to include additional aspects in your reasoning.
In case you decide not to extend the brand: How would you pursue the goal of enhancing the brand's success other than by extending the brand? What other measures would you take to enhance the brand's success? Feel free to include additional aspects in your reasoning.© BrainMass Inc. brainmass.com June 4, 2020, 3:56 am ad1c9bdddf
I am glad that I found this posting online! I have worked in the retail industry and I am very familiar with Bottega Veneta. Like the writer of this assignment specified, BV is a well-known company, but made a decline due to various factors. Within the past decade, BV has increased their sales significantly. Here is a website link by BV that offers further support that the company's financial status is improving: http://www.bottegaveneta.com/experience/us/pages/about-us/financial/. Additionally, here is some credible information regarding BV's boom in the luxury market: http://topics.bloomberg.com/bottega-veneta/.
Truly, one of my favorite television shows a Shark Tank. I don't know if you've seen it, but if you have not here's the premise... A group of entrepreneurs propose their business ideas to a board/ group of wealthy individuals (investors0, in hopes that they will invest their capital and expertise in their company. While BV is certainly not a startup company, they have experienced financial issues in the past. Currently, as outlined and supported by the website references that I offered, you can see that BV has tremendously improved their financial status. With this being said, BV is in an extremely competitive market! BV identifies their company as a luxury brand... And what we know about luxury brands? Well, luxury brands are expensive, are appealing to certain clientele, and exclude the majority of the population for purchasing their product. What this means, is that the majority of the population cannot afford items from BV... Henceforth, the potential market of individuals who might be interested in this product is diminished significantly. This website will provide you with a list of articles regarding current luxury branding trends and market value: http://articles.economictimes.indiatimes.com/keyword/luxury-brands. Notice, that times are truly changing in terms of many luxury brands financial status.
So, why did I mention Shark Tank? Well, it's simple... When attempting to predict the stability and financial status of an organization, it ...
This solution provides a detailed explanation of factors that must be considered in terms of brand extension/ development. The solution summarizes key business information from a high end clothing line and provides managerial based decision making explanations for potential brand expansion. From a management perspective, this solution outlines the process of determining the strengths, weaknesses, opportunities, and threats of expanding a brand.