FASHION FADES. ONLY STYLE STAYS THE SAME. -CHANEL

FASHION FADES. ONLY STYLE STAYS THE SAME. -CHANEL BCBGMAXAZRIA Walks Italy s Runways Kirin Arnold Megan Edwards Alyssa Steffen Lisa Zarate 1

Executive Summary With Milan s status as one of the fashion capitals of the world, BCBGMAXAZRIA has an incredible opportunity to expand into Italy. BCBGMAXAZRIA already exists in the other four fashion capitals, London, Tokyo, New York and Paris, making Milan the designer s next logical step. Through research, the group found that fashion is a national passion as Italians greatly value appearances and attitude. With a well-developed fashion industry, designers gain respect with a presence in Italy. BCBGMAXAZRIA must establish itself in Italy relaying its consistent world-wide message of a high-fashion brand that strives to make women look and feel beautiful. Italian companies advertise in a variety of media, from the most popular newspapers and magazines to flyers, window displays and movie theaters. BCBGMAXAZRIA will target Italian women between the ages of 25 and 40. These women pay incredible attention to fashion and view it more as a necessary lifestyle than an option. Based on these findings, the group suggests opening two BCBGMAXAZRIA stores in northern Italy. These openings will be supported by participation in Milan s Fashion Week, advertisements in relevant newspapers and magazines, public relations efforts centered on store openings and events, a cause marketing partnership and social media efforts. 2

Situation Analysis Client French designer Max Azria founded BCBGMAXAZRIAGROUP in 1989. Several lines comprise the group, including BCBGMAXAZRIA, Max Azria, Max Azria Atelier, BCBGeneration, Hervé Léger, Max Rave and maxandcleo. Azria has presented his designs at New York s Fashion Week since 1996. Worn regularly by such wellknown names as Sarah Michelle Gellar, Angelina Jolie, Eva Mendes and Rachel Bilson, Azria has established his designs as luxurious, high-fashion pieces in the United States and around the world. Azria based the name BCBG on bon chic, bon genre, which is a Gallic acronym meaning good style, good attitude. Parisians use this common term synonymously with preppy or Euro riche. I chose that name because that s the way I would like to see women, very chic, and with good style, Azria said. Because many times I said, you can wear the best dress in the world, but if you have a bad attitude, I hope that you don t buy my dress. Good attitude is really a part of your clothes. Max Azria stores can be found in countries such as Bahrain, France, China, Japan, Lebanon, Kuwait, Russia, Spain, Saudi Arabia, Switzerland, United Arab Emirates, Venezuela and more. ( BCBGMAXAZRIAGROUP ) Advertising campaigns for BCBGMAXAZRIA typically express high energy, bright color and classic beauty with a modern twist. 3

Shot from BCBGMAXAZRIA Fall 2009 ad campaign (frillr) Environment Home to more than 58 million people, Italy extends south of Europe into the Mediterranean Sea. Italian is the first language of ninety-three percent of the country s inhabitants. The majority of the population considers itself Roman Catholic, although Protestant, Jewish and Muslim communities continue to grow. ( Kwintessential ) Italians place incredibly high value on physical appearance. Clothing can suggest everything from background and social status to education. ( Kwintessential ) As a result, Italy boasts a well-developed fashion industry. A designer s presence in the country can elevate his or her status by association with names such as Valentino, Dolce & Gabbana, Armani, Diesel, Prada and Bvlgari (Ghosh). Northern Italians move on business deals much quicker than those in the south. Southern Italians prefer to develop a relationship with business partners ( Kwintissential ). Commercial, financial and industrial organizations typically flock to 4

northern Italy, giving it twice the per capita income of southern Italy. Franchisers also focus on the country s northern end. The U.S. Department of Commerce lists fashion as one the Italian sectors with the most sales potential, along with services, hotels and personal items. (U.S. Department of Commerce) Italy adopted the Euro as its official currency. According to the U.S. Department of Commerce, Firms operating in the Italian retail distribution sector find that they must invest large amounts of money in new techniques, management, research, media promotion, and equipment. Small family-owned stores make up most of Italy s shopping options, but shopping malls and specialized stores continue to gain popularity (U.S. Department of Commerce). However, the U.S. Department of Commerce still suggests working with a local Italian entity in some capacity because of the importance of personal relationships and language in the Italian business community. Direct mail marketing can prove problematic due to common delays with Italy s postal system. Electronic commerce continues to expand rapidly in Italy, playing catchup to the rest of Europe. Newspapers and magazines comprise 70 percent of total advertising in Italy, followed by radio and television at 22 percent, movie theaters and other methods. The Italian market requires high-quality customer service and support. Marketers must be willing to go the extra mile in stocking products, staying in constant contact with any local partners, and providing plenty of service after the sale where necessary. (U.S. Department of Commerce) The Italian government strictly regulates discounts to avoid 5

unfair competition. The largest sales begin January 15 and June 15. Sales generally do not occur outside the designated time frames. ( Eurocheapo ) Audience Hofstede s cultural dimensions offer invaluable insight into unfamiliar societies. Italy scores around 45 in the power distance category, suggesting that lower ranking members of an organization feel like they have some say in decisions. The country s individualism score passes 70, making this its highest scoring category. This means Italians look after themselves and value individual success but still feel ties to the family unit. The masculinity score, around 65, indicates a tendency toward the traditionally masculine values of assertiveness and competitiveness rather than traditionally feminine values such as modesty and caring. Italy s uncertainty avoidance score approaches 70. This suggests that Italians prefer structure and avoid situations in which they cannot predict the outcome. ("Geert Hofstede Cultural Dimensions") Hofstede s Cultural Dimensions Italy scores ("Geert Hofstede Cultural Dimensions") 6

Italian consumers focus heavily on fashion and first impressions. They often judge others on their appearance and unconsciously gauge someone s age and social status before even speaking with the person. They strive for the idea of bella figura, or good image. This idea applies to clothing choices, confidence, demeanor and style. ( Kwintessential ) Italian women will readily sacrifice comfort for the sake of their appearance (Ghosh). BCBGMAXAZRIA will target Italian women between the ages of 25 and 40. Young enough to appreciate Azria s hip young designs but old enough to afford designer products, these women match BCBGMAXAZRIA s personality perfectly. Why Action is Necessary Northern Italy hosts some of the biggest names in the fashion world. Combined with the Italian population s addiction to high fashion, this makes Italian stores a must for any designer. Globalization Strategy As an originally French designer, Max Azria s image lends itself to the international fashion stage. Azria described fashion as a global idea in a recent news release. I don t believe anymore in Europe style or American style, even Asia style, Azria said. Based on the very fast communication that we have today, and a lot of people traveling south, north, east, west, I think today s woman is now a woman of the planet. It used to be, you go to Japan and you see another planet. Today, no. With the television, Internet, newspapers, the entire planet gets educated at the same time in the same way. So everybody has only one language in fashion it s fashion ( In The News ). 7

However, some aspects of the business do need to be localized for introduction into Italy. Individual relationships must be developed with any partners BCBGMAXAZRIA chooses within the country. Italians value their language, so all materials must be accurately translated. If the company adds copy to any print advertisements, the language must be triple-checked for the message s accuracy within the Italian context. Big Idea BCBGMAXAZRIA strives to make women all over the world look and feel beautiful. Italian women should wear BCBG because the clothes reflect an attitude of spirit and sensuality, leaving a lasting impression of elegance and sophistication. Media Analysis Advertising in Italy breaks down into the following categories: 35 percent in newspapers, 35 percent in magazines, 22 percent on radio and television, two percent in movie theaters and six percent in other media such as flyers, show windows, posters, billboards and trade fairs. (U.S. Department of Commerce) The following media details come from the U.S. Department of Commerce. Newspapers Around 12 Italian newspapers reach a national audience. The most popular media for product advertisements, newspapers hire agencies to manage advertising sales and placements for them. Magazines Consumers can purchase about 230 different Italian and international magazines. Around 20 of them have large audiences in the country. 8

Television Government-regulated Radiotelevisione Italiana (RAI) operates three public television networks in Italy. They run commercials throughout the day. Four nationwide private stations and 100 local private stations also exist. Radio RAI also operates three radio stations that sell advertising spots. Additionally, private national stations hundreds of private local radio stations broadcast regularly. Movie Theaters Unlike in the United States, Italians run advertisements run during intermission at thousands of theaters. Movies reach a varied audience nationwide. Posters and Billboards Specialized agencies orchestrate the use of posters and electric signs for advertising purposes. Specific regulations and taxes govern these types of advertising, but they can be placed on walls, in streetcars and buses, along streets and near other methods of transportation. Show Windows and Flyers Italian shops regularly utilize window displays to attract consumers and show prices. They also use gifts and free samples to motivate consumers to enter a store. Trade Fairs Trade fair events attract buyers interested in a particular market and allow companies to measure acceptance and pricing of new products as well as the opportunity to observe the competition. As a cost-effective method for entering a foreign market, trade fair exhibitions can help companies find an agent, distributor or representative. 9

IMC Plan Stores BCBGMAXAZRIA will initially open two stores in northern Italy: a flagship store in Milan s Golden Triangle, arguably Italy s fashion center, and one store in Florence ( DolceVita Fashion ). Depending upon the success of these stores, the next two will open in Venice and Rome. All four of these cities function as fashion powerhouses in Italy. Map of Italy Milan Fashion Week BCBGMAXAZRIA will participate in Milan s Fashion Week. Fashion Weeks provide designers, brands and/or houses with the opportunity to show their upcoming 10

seasonal collections at a week-long industry event. Fashion Week allows buyers, fashion editors, and fashionistas from around the globe to view designer collections at runway shows and be in the know about the latest trends of the season. Although held all over the world, fashion capitals New York, London, Milan and Paris host the most prominent Fashion Weeks. Milan s Fashion Week lets the industry know what s in and what s out for the season. Attending this event allows BCBGMAXAZRIA, along with other designers, to achieve and maintain a presence in Italy s fashion industry. Partnerships Because Italians value strong relationships and trust in business situations, BCBGMAXAZRIA will partner with a charitable women s organization with similar stature to the Susan G. Komen Foundation in the United States. ( Kwintessential ) The company will sponsor a benefit fashion show in Milan to raise money, attract media attention and earn the respect of the female Italian population. BCBGMAXAZRIA will also secure additional sponsors for this event, creating more partnerships for the future. Social Media The company s social media specialist will create and update a BCBGMAXAZRIA Italy Facebook page similar to the pages that currently exist for BCBGMAXAZRIA France, BCBGMAXAZRIA Cairo and BCBGMAXAZRIA in the United States. The page should present pictures of the new stores and from the Milan Fashion Week. Public Relations BCBGMAXAZRIA will work with an Italian public relations agency to attract media attention for the new store openings. Pitches will emphasize Azria s stature in the 11

international fashion world and the attitude his styles portray. The heavy use of newspapers for product marketing implies that Italian consumers often read these newspapers. Thus, generating stories in these publications will increase awareness of BCBGMAXAZRIA in Italy and provide a third-party endorsement. Advertising As the main means of product advertising in Italy, newspapers and magazines will be utilized in the BCBGMAXAZRIA introduction. Research must be collected to determine which newspapers and/or magazines best fit the campaign s goals. Since Italian newspapers do not maintain their own advertising departments, BCBGMAXAZRIA must place ads with the agency commissioned by each individual publication. Research Recommendations Before taking further action on any individual tactics, the group suggests additional research in the following areas of Italian culture: The meaning of specific colors Store designs, layout and atmosphere Exact locations for stores in Florence, Venice and Rome Specific newspapers and magazines in which to place advertisements Local advertising and business operation regulations Selecting a charitable women s organization to partner with for cause marketing 12

Sources "About BCBGMAXAZRIA." BCBGMAXAZRIAGROUP. 2009. BCBGMAXAZRIAGROUP, INC., Web. 30 Nov 2009. <http://www.bcbgmaxazriagroup.com/fall2009/index.php?fc=about&lnt=bmf2>. "BCBG MaxAzria Fall Winter 2009. 2010 Ad Campaign." frillr. 2009. Uropa Media Inc, Web. 30 Nov 2009. <http://frillr.com/?q=node/14791>. Ghosh, Damyanti. "Italian Fashion and Beauty - Latest Trends". Life in Italy. 11/26/09 <http://www.lifeinitaly.com/fashion>. "Geert Hofstede Cultural Dimensions". SigmaTwoGroup.com. 11/22/09 <http://www.geert-hofstede.com/hofstede_italy.shtml>. "Italy: High Fashion at Half Price." Eurocheapo. 30 Mar 2007. Over There Interactive, Inc., Web. 30 Nov 2009. <http://www.eurocheapo.com/blog/tag/italy-fashionsales>. "Italy - Language, Culture, Customs and Etiquette." Kwintessential. 2009. Web. 28 Nov 2009. <http://www.kwintessential.co.uk/index.php>. "It's a Max World." In The News. 20 Jul 2009. BCBGMAXAZRIAGROUP, Web. 30 Nov 2009. "The Streets of Fashion - Milan: The Golden Triangle." DolceVita Fashion. DolceVita, Web. 30 Nov 2009. <http://www.dolcevita.com/fashion/fastreet/mi/fastrmi.htm>. U.S. Commercial Service, "Italy - Marketing U.S. Products and Services". United States of America Department of Commerce. 11/24/09 <http://www.buyusa.gov/italy/en/marketing_us_products.html>. 13