mulberry visual and written process analysis
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AE1 PDF- A VISUAL AND WRITTEN PROCESS ANALYSIS
MULBERRY PLC
EVE FISHER-Q79818099BA FASHION MANAGEMENT WITH MARKETING LEVEL 4
FASHION PROCESSWORD COUNT: 2721
Executive Summary:After the trend depicted in AE2 for Autumn/ Winter 2011, of Winter Bohemian, I believed Mulberry was a relevant company of focus.
This PDF aims to look at the fashion process adopted by Mulberry, and to use a variety of models and theories to answer the issues used by the fashion industry to identify trend, inspiration, product development, material and silhouettes typically used by Mulberry, ethical issues, manufacturing considerations and PLC considerations.
The report identifies the needs of the typical Mulberry consumer, and studies the process used to satisfy the needs and wants of their consumer. This report brings to focus Mulberry’s perception in the market, relative to Ready-to-Wear fashion and their key competitors. Mulberry provides a quirky, British Heritage and fulfils a niche in the fashion market of today that has proved to be a very successful brand in recent years.
Original Inspiration:
Table showing key financial information of
past 5 years (Fame 2010).
A Brief History of Mulberry
Mulberry started in 1971 in Somerset, England.
Mulberry pride themselves on being a British
Lifestyle brand, well known for their leather
goods and high quality. As well as leather
goods, the company also produces
womenswear, accessories and footwear. Today,
the company continues to expand into
international markets, opening its first US
store in 2004, as well as signing deals with
„Mitsui and Co‟ and „Sanki Shoji‟ for wholesale
distribution in Japan in 2005. The company has
overcome the recession, with huge success
globally, and remains an iconic British Fashion
Company.
Financial Information
At the beginning of the century, Mulberry were
close to bankruptcy and the company was
performing poorly. The company got
transformed by Christina Ong, and has done
very well since, steadily improving profits
every year. The only year that failed to make
like for like was 2004. There was a huge rise in
sales in 2010, with 2009 making £58.6m and
2010 making £72.1m, making a 23% increase
year on year. They could improve profit by
opening more stores world wide, and further
promoting their best selling products, such as
the Alexa and Bayswater bags.
(Mulberry Financial Graphs, Keynote 2011)
Strengths
-Mulberry has kept up with competitors and released the
Mulberry iPhone/iPad App.
-Mulberry are beginning to expand into diverse new
markets, such as dog coats.
-Mulberry have a very good ethical policy, aiming to take
action against climate change, reducing waste, animal
welfare, community involvement, fair partners and
health and wellbeing.
-Mulberry use wholesale as a distribution channel, and
gain more profit.
-Mulberry has started a blog on their website to engage
their consumers with the brand.
-Mulberry send news and updates to subscribers, as a
form of direct marketing giving them a strong
promotional mix.
-Emma Hill, creative director of the company, has
transformed the company making it very successful in
recent years
Weaknesses
-Mulberry have a very small product range, and could
diversify the brand more to increase profit.
-The Tsunami in Japan has affected Mulberry‟s ambitions
to diversify into the Japanese market. As an brand
emphasizing British Heritage, which performs well in Asia,
the company is potentially missing a huge market due to
the tragedy.
-Mulberry could expand further, by building more stores
in America, Australia and Asia. This will help them gain a
higher perception of the company, and will increase sales
and gain publicity,
- Mulberry can be highly priced, therefore alienating less
wealthy markets.
Opportunities
-Mulberry has the chance to expand into menswear, such
as garments, shoes, and accessories.
-Mulberry could use celebrities as a promotional tool. Due
to Alexa Chung being spotted with a Mulberry bag,
Mulberry launched the „Alexa‟ bag.
-Mulberry could expand more internationally, into Japan,
and throughout the USA.
Threats
-Mulberry has many competitors, as seen in the
perceptual map. This threatens Mulberry‟s market share.
-The Recession has been a major threat to the luxury
fashion market. Mulberry need to ensure they maintain
their success with competitive marketing strategies.
-Mulberry use a lot of silk and cotton, meaning the price
of cotton going up will result in prices going up or losing
profit for the company.
- The VAT rise of January 2011 posed as a threat in the
sense that customers may not be willing to spend the
excess on a luxury brand.
This is a perceptual map of the
luxury fashion market. Compared
to most luxury designer brands,
Mulberry is inexpensive, but still
retain the perception of creating
high quality products.
I have highlighted Louis Vuitton and
Burberry as their main competitors.
Burberry, as well as Mulberry, pride
themselves on high quality British
Heritage inspired designs. As a
lifestyle British brand, Mulberry
needs to ensure their products
convey this to the consumer, just as
well as Burberry, to gain market
share.
I have also identified Louis Vuitton
as a main competitor, due to the
product ranges offered by both
companies. Both companies have
built a solid customer base by
obtaining a reputation for high
quality leather goods. Mulberry
need to ensure that the products
they deliver to the consumer are
innovative, unique, and challenge
what Louis Vuitton have to offer.
Mulberry release many styles of
handbag, all categorised with
feminine names, to offer the
consumer something different.
Trend Analysis:
Pen Portrait
Mulberry focuses on consumers who
are typically professional who enjoy
quality made goods.
The Mulberry consumer is called
„Alexa‟. She is in her late twenties
and has a well paid career, owning
her own flat in Somerset. She has a
close group of male and female
friends and a partner. She has
traditional British values, and is
admired for her quirky fashion sense.
She reads a lot, enjoys travelling,
goes to posh bars with friends and
spends the rest of her time visiting
her family. She visits art galleries and
enjoys the peace and tranquillity of
the English countryside. She is a
calm, carefree person who is highly
respected. She is confident,
humorous and spirited. She adores
British fashion and owns a variety of
Mulberry bags.
Mulberry consumers are
loyal to the brand, and feel
an attachment to the
product lines especially
bags
The Mulberry brand is
perceived as high
quality, especially
leather goods. The
company is constantly
growing and is
perceived as an iconic
fashion label.
Brand Equity Pyramid (Keller)
The feelings the
consumer gains from
Mulberry is a sense of
luxury, elegance, class,
and the feeling of being
“effortlessly cool and
effortlessly British”
(Emma Hill, 2010,
Vogue.co.uk).
Mulberry
strongly promote
their company as
a lifestyle
„British Heritage‟
brand, and focus
their product
lines to sustain
this image.
According to
Georgia Fendley,
Brand Director
for Mulberry, the
brand
personality is
about
“authenticity,
attention to
detail, energy,
playfulness and
of course our
passion for great
British craft.”
Mulberry is a
luxury designer
brand, which
means the
products are highly
priced.
Mulberry‟s brand is
high quality,
therefore products
are well made and
durable.
The Mulberry brand satisfies the needs
of the consumer, by involving them
with the lifestyle and the fantasized
idea of being part of the British
Heritage. The range of Mulberry
handbags is a big part of their brand
image, and represents the British
Heritage that the brand offers.
LFW is the main trade show Mulberry uses to promote
their latest trends. In LFW 2011, Mulberry had a
„Fantastic Mr Fox‟ theme, using props such as
mushrooms, trees, and a leafy green backdrop.
Imagery
Salience
Performance
Judgements Feelings
Resonance
Political
-The amount of disposable income that
consumers have will have decreased with the
recession, resulting in changing customer
buying habits.
-Global warming means fashion is changing.
Mulberry have been inspired to make an
impression, and have incorporated „garden‟
designs in new stores. This concept is derived
from the environment, and the idea is to
preserve nature. Their Autumn/Winter 2011
show also shares a „natural‟ theme, with trees
and mushrooms used as props. This relates to
our winter bohemian trend.
Economic
-The recession has obviously hit the luxury
fashion market hard, however Mulberry
continue to be very successful.
-The VAT rise of January 2011 has made prices
for Mulberry‟s products higher, which could
result in customers being more careful with
their money.
-The rise in the price of cotton, a popular
fabric used by Mulberry, means prices of
garments will increase.
Social
-Consumers are increasingly aware of the
ethical procedures a company operates, and
Mulberry have acted on this by creating a
policy ensuring they act on climate change,
reducing waste, animal welfare, health and
wellbeing of employees, community
involvement and fair partners.
-Consumers are pushing a demand for organic
fabrics. Mulberry use pure silk, cotton, and
wool in their garments. The props used for A/W
2011 showed a natural theme.
-Animal awareness and welfare is a huge
concern. Mulberry recently named the seating
rows at LFW with animals, and held a
„Fantastic Mr Fox‟ theme.
Technological
-Mulberry has created an iPhone and iPad App,
which allows the consumer to look through the
collection, purchase, watch videos of seasonal
shows, locate the nearest store and read the
latest blogs. Consumers can share their
favourite items on social networking sites, such
as Facebook and Twitter.
-Mulberry constantly ensure their website is
interactive with their consumers, by publishing
reports, policies, videos of their catwalk
shows, writing a blog, and allowing people to
look through their look book. They also use e-
marketing, by sending regular promotional
emails to subscribers. Engaging consumers with
the trend will inevitable sell it.
Ansoff Matrix
This is a business method to
determine marketing strategies.
Mulberry would be considered Market
Development. They‟re expanding
internationally, as well as
collaborating with American store,
Target, to create more affordable
bags for fans who cannot afford a
„ready to wear‟ handbag. I would
argue that they promote the same
products to different markets,
possibly to avoid ruining the brand‟s
image of „British Heritage‟. They
could diversify by developing a
menswear range. At the moment,
they only sell men‟s bags. They have
recently opened a new store in
Beijing, aiming the British Heritage
Lifestyle at a new market. British
Heritage brands, such as Burberry,
have proved very popular to the Asian
market, and with continual growth
Mulberry should be successful in
targeting this new market. I would
also partially argue that they haver
begun to diversify, offering iPad
covers and „dog coats‟. However,
these products are not particularly
innovative and different, and there is
not a huge risk in creating these new
products.
Existing Products New Products
Exis
ting M
ark
ets
New
Mark
ets
River Island,
£36.99Mulberry Tillie Bag,
£825
Trickle Down Theory-
Mulberry‟s handbags and „British Chic‟ style have been so
popular, that high street constantly creates replicas of the
famous „Alexa‟ bag, as well as imitating the ready to wear
ranges. This is the trickle down theory; the idea that fashion
begins at designer level, and then trickles down to bridge
and high street level.
Mulberry Bayswater, £675
Mulberry Mini Alexa, £1379 ASOS, £85
Bubble Up Theory-
Mulberry have always been inspired by the idea of „British
Heritage‟ fashion. The style of their bags can be compared to those
of the briefcase and satchel, items which have been possessed for
centuries by middle class men. The briefcase and satchel have
always been used as practical items, for carrying possessions and
important documents. However, the iconic satchel is now
considered a unisex accessory, and has been the main source of
inspiration for the „typically British‟ Mulberry handbags. Alexa, a
style of bag created by Mulberry, is a well known tribute to Alexa
Chung, who created a fad with her satchel handbags and „British
Chic‟ look.
Topshop Leather Satchel, £85
Product Category Analysis:
Economy Penetration
Skimming Premium
Mulberry uses a
Premium Price
strategy, due to the
high quality of the
products. Mulberry
have penetrated the
market, therefore
increasing their
brand‟s value.
Quality
Pri
ce
Low
Low
Hig
h
High
Question Marks
I would say that Men‟s bags
would be a question mark, as
well as menswear if they
diversify into this market.
Mulberry establish
themselves as a fairly
feminine brand.
The new range of iPod and
iPad cases.
Stars
I would say the „Alexa‟ is the
star. Ever since Alexa Chung
was seen with a Mulberry,
their popularity has soared.
It is their best selling bag.
The Tillie is meant to be an
evolution of the Alexa, and
has also been performing
well.
Dogs
As a ready to wear designer
brand, it is difficult to
distinguish dogs in the
market, as anything can be
shown on the catwalk.
Cash Cow
The Cash Cow for Mulberry is
always their range of
handbags, which has become
iconic. They have many
ranges, all with names, such
as the Bayswater, Roxanne,
Mabel, Mitzy, Tillie, Taylor
and Alexa. The Bayswater
and the Alexa are the cash
cows.
Hig
h
High
Low
Low Market Share
Mar
ket
Gro
wth
Mulberry are well known for their bags in their
company, and create many different styles. They
also sell womenswear, men‟s bags, accessories,
purses and wallets, travel gear shoes, and more
recently dog coats and iPod and iPad accessories.
They continue to diversify their products, but would
allow further diversification by creating a menswear
range. Their most popular product is the Alexa
handbag, inspired by Alexa Chung, which aims to
capture her “coolest girl in sixth form sensibility,”
(Emma Hill, Mulberry’s creative director, 2010).
Boston Matrix- This categorises products in Mulberry to levels of success.
Stars are products which are selling well currently, Cash Cows are products
which will always be best sellers, Dogs are products which are performing
poorly, and Question Marks are products which could do well, or go the
opposite way and perform poorly. Dogs are difficult to distinguish is Pret a
Porter fashion, as anything can be seen on the catwalk and considered
„artistic‟ and „creative‟. I have also drawn up a Price Strategy Matrix,
confirming that Mulberry use premium pricing with their product range. The
quality and innovativeness of the brand reflect the high price points their
products sell for.
Fad The fad product of Mulberry would be the Alexa,
the product that is in high demand from
consumers due to the British fashion icon, Alexa
Chung, whose fashion sense is admired and
imitated by consumers. This product allows the
consumer to buy into her incredible, no effort,
British look. Fad would be a star in an Ansoff
Matrix.
Fashion The fashion trend throughout Mulberry for
Autumn/Winter 2011 is the theme shown at
London Fashion Week, „Fantastic Mr Fox‟. There
was a strong nature element throughout the show,
indicated by props used as well as the colour
scheme. The fashion would be the women's „ready
to wear‟ collection, closely linked to the Winter
Bohemian trend identified in AE2. Fashion would
be a question mark in the Ansoff Matrix.
Basic/ Core The basic/ core product for Mulberry would be
accessories, purses and travelling goods. Their
traveling goods are focused for practicality rather
than fashion, as well as their purses and basic
accessories e.g. a scarf, or a Blackberry case.
Basic/ Core would be a dog in the Ansoff Matrix.
Classic The classic product would very much be the
Bayswater handbag. It is always a best seller
within the company, and has a classical, elegant
look which will never go out of fashion. It is the
cash cow of the product range, and will always
perform successfully. This would form as a cash
cow in the Ansoff Matrix.
Material Analysis:
Core Fabrics
Mulberry use a lot of high quality fabrics, mainly silk, wool,
linen and cotton in their womenswear ready to wear
collection. All their bags use natural leather, and are made
to the highest quality. They use a lot of natural materials,
meaning they gain appeal from a market demanding natural
fabrics. The trend focused upon in AE2 demonstrates how
the „Winter Bohemian Luxury Fashion Consumer‟ would love
Mulberry for the use of natural, high quality fabrics, due to
the current issue of animal welfare and global warming.
Mulberry‟s policy is dedicated to sourcing fabrics ethically
and to ensure employees are happy and healthy. They use
fair trade when available and suitable for the business‟
needs.
LFW and Mulberry
Mulberry use LFW as a key show
to promote their latest
collections. For the Autumn/
Winter 2011 collection, Mulberry
made their show stand out by
using various props, such as trees,
mushrooms, silk birds perched on
trees, as well as sounds of owls,
dogs barking and cats miaowing
being played during the show.
London Fashion Week is where
Mulberry can really make an
impression on the world, and
show their ready to wear
collections in true English style.
Peggy Dress, 100% SilkShort Sheepskin Duffle Coat, 100% Sheepskin
Culottes, 77% Wool,16% Polyester, 6% Nylon and 1% Elastane
Sparkle Tweed Bayswater Bag, 100% Leather
(All Images from Mulberry.com)
(Goo
gle
Imag
es, 2
011)
(Corporate Social Responsibility
2011, Mulberry.com)
Canary Yellow Navy Blue Maroon Lilac Warm Beige Deep Purple Rose Pink Light
Teal
Mulberry’s Autumn/ Winter 2011 Collection, Google Images
These were the key colours for fabric in the Autumn/ Winter 2011 collection, all have an essence of Winter Bohemian. The colours
represent the autumnal English colours, of rich plums, lavenders, beiges, greys, blues and greens. Mulberry are inspired by nature,
as reflected in their colour palette. This relates to the trend of „Winter Bohemian‟, and we can see how the increase of animal
awareness and global warming has inspired a natural theme throughout the collection.
Silhouette and Trim Development:
Mulberry’s Silhouette
Mulberry, like most companies, tend to design similar
silhouettes every season. Most of their dresses are nipped
in at the waist, or on the hips. The Autumn/Winter 2011
trend of maxi dresses and skirts has meant that silhouettes
are becoming longer, and Mulberry has adapted this trend
to their classic silhouettes. In the Autumn/Winter 2011
show, every item is nipped in at the waist, usually with a
belt. Other silhouettes included A-Line and tulip skirts. The
Maxi and Midi was popular in this collection, and layering
was seen on some of the designs.
Trims
Mulberry used a lot of fur trims in their Autumn/ Winter
2011 collection, as well as embellishment and giant
buttons. This links in with the depicted trend of „Winter
Bohemian‟, as focused upon in AE2. They use signature
rivet detailing on their bags.
Labels
Mulberry always label their bags and purses, with the
Mulberry tree logo and engraved onto them is „Est. 1971‟,
the year Mulberry was founded. In the interior of their
bags, they imprint the tree logo, as well as on the zips.
There is an internal plaque imprinted as well. Replicas are
usually easy to spot due to lack of the original trademarks
of their bags.
Tulip SilhouetteNipped in at
the hipMax
i
Layered/ Midi A-Line
Traditional Mulberry Silhouette
Classic Product Line
As one of Mulberry‟s most iconic products, I have chosen the Bayswater
handbag for their classic product line. To ensure the product does not go
into decline, Mulberry release new designs and adaptations of the
Bayswater every season. They change the colours, materials, textures,
patterns but retain the classic shape. For the trend depicted in AE1 of
Winter Bohemian, I have researched Mulberry‟s Autumn/ Winter 2011
colour palette and noticed maroon was a key colour in their shows, based
on the theme of nature and the English countryside. I chose a knitwear
pattern, thinking it was relevant to the huge knit wear trend for the
upcoming season. I kept leather detailing on the handles and panels, and
believe it resembles a Mulberry seasonal edition of the Bayswater, relevant
to the trends of Autumn/ Winter 2011 collection.
Fad Product Line
For the fad product line, I chose the popular „Alexa‟ handbag, launched at
the beginning of 2010 which has been a favourite ever since. I have depicted
this product because when it came around, consumers saw Alexa Chung as a
style icon, and wanted to capture her quirky British look, and the Alexa
quickly became a desired fashion accessory. To ensure the product does not
decline, the Alexa is released every season to comply with the current
trends. In AE2, I observed a lot of Ready-to-Wear companies had used snake
skin for Autumn/Winter 2011 (including Burberry, a huge competitor of
Mulberry). I designed the seasonal Alexa fad with a beige snake skin print,
but retained the signature brown colour that Mulberry‟s consumers love. As it
is a subtle pattern, this bag reflects the signature look of an Alexa whilst
complying with the upcoming trend. It very much relates to Winter
Bohemian.
Fashion Product Line
Changing the colour-
Autumn/ Winter 2011
Mulberry colour palette.
For the fashion product line, I chose a twist dress from Mulberry‟s
collection. It‟s a simple dress, but captures their traditional
silhouette of having a nipped in waist. Most companies release a new
colour once the fashion product falls into maturity, to match the
seasonal colour palette. I observed that canary yellow was a popular
colour in the Mulberry Autumn/Winter 2011 collection, inspired by
the colours of the English countryside to retain the British Heritage
brand. I then tried overlaying a floral pattern onto the same design,
to symbolize this theme. I believe these designs reflect Mulberry‟s
brand.
Basic/ Core Product Line
For the basic product line, I identified the Mulberry purse range. This is
because their is consumer demand for matching Mulberry purses to go with
their bags. The product is in maturity, meaning it is constantly profitable and
will always be a popular purchase. However, the Mulberry purse needs to be
reinvented every season to match the seasonal bags available. This is why I
have designed one with a snake skin pattern. It matched the Alexa fad design
I created, meaning a matching purse would be in demand for Autumn/Winter
2011. It is applicable to the trend of Winter Bohemian, and ensures the
company keep up with their competitors offering the same product. Like my
other designs, I believe it captures the Mulberry brand well.
Manufacturing Concerns:
Threat of New Entrants- Mulberry
are threatened by Burberry, a British
Heritage Brand who have lowered
their price points in recent years to
keep up with consumer demand.
Bargaining Power of Buyers-
Mulberry are market and product
orientated, meaning that they
focus on penetrating their
market, and expanding their
products.
Rivalry
amongst
existing
competitors
Threat of Substitute Products or
Services- Burberry are expanding
into leather goods, meaning the
market share could be taken by
Burberry.
Bargaining Power of
Suppliers- Mulberry
prides themselves on
manufacturing their
products within the
UK.
Porter’s Five Forces
This model is used amongst businesses to define threats and demands
of the market. I have identified where Mulberry are threatened by
Burberry‟s entrance into targeting a less affluent consumer, and how
Burberry expanding their leather goods could be a threat to Mulberry‟s
market. The power of their consumers and suppliers has further been
expanded using this model.
Mulberry and their Manufacturing Procedures
Mulberry pride themselves on how ethical their manufacturing
procedures are, and how each product is made out of fine materials
and is produced to the highest quality. They aim to “maintain and
increase the levels of manufacturing in the UK,” (Mulberry. 2011)
however they currently have suppliers in the UK, Spain, Turkey and
China. They carry out procedures to ensure that employees in their
factories are fairly treated and not discriminated against. Mulberry
enforce their standards at their factories with regular visits from
employees and third party auditor, to ensure that the manufacturing
procedure is ethical, both globally and in the UK. When Emma Hill,
creative director of Mulberry, was asked if manufacturing in the UK
was important, she replied “Extremely! It‟s an honour to work for a
brand that has a factory in the English countryside and is still investing
in its UK manufacture – it really is a rare and beautiful thing.” (Liberty
London Girl Blog, 2011).
Horizontal Product Integration
Mulberry use horizontal
integration, meaning that they
expand their products to the same
market. Their current market is
performing well, so Mulberry are
penetrating the market by
creating new, innovative fashion
products. They have reopened
their Somerset factory, in order to
manufacture these products.
Mulberry‟s firm strategy consists of market penetration and product development.
They aim to continually please their target consumer, by finding new, innovative
ways to communicate with the consumer. They want the consumer to be loyal to the
brand, and try and engage them with iPhone Aps, social networking (where they
personify the brand e.g. „love, Mulberry‟ after every status update), blogs, history,
„Evolution of the Alexa‟ and now a book. They constantly update their classic bags,
making them out of new fabrics, new patterns, new sizes and new colours. They
create a desire in their consumer for the latest Mulberry products.
Demand conditions translates as to how a company is required to keep
up with customer demand and to deliver innovative new products to
beat their competitors. After such a successful collaboration with
Target, Mulberry have a huge demand from consumers to expand into
America. They currently have one store in New York, meaning they
could potentially be missing out to competitors such as Louis Vuitton
and Burberry, who currently have many stores in the US. Mulberry are
missing out due to competitors, a threat mentioned in the SWOT
analysis. As a British Lifestyle brand, Burberry have proved how
successful they have been in the US, meaning it could be a significant
opportunity for Mulberry.
Mulberry have a strong marketing strategy and so far, creative
director Emma Hill has managed to retain heritage but promote
the brand creatively. As mentioned above, Burberry and Louis
Vuitton are Mulberry‟s main competitors. Mulberry need to
diversify the brand more by expanding into new markets with
products they want. The Target/Mulberry collaboration worked
well, because it entered the market with a low price point, but
retained the brand‟s values of craftsmanship and quality.
Mulberry have pursued the idea of
expanding a designer brand with a high
street one. This has made them a
recognised designer in the US, creating
an opportunity to be instantly profitable
in this country. The demand is high for
Mulberry, and expanding into this
market would prove to be successful.
They plan to diversify into North
America, as well as expand in the USA.
Ethical Considerations:
As a huge, global company Mulberry have a responsibility to ensure that
they carry out legal, ethical procedures and that employees are being
treated fairly and equally. Mulberry are keen to involve their consumers
with their Corporate Social Responsibility document, to raise awareness
of how their company operates, and the measures they are taking in
order to meet ethical standards and legislations. Mulberry target an
intelligent consumer, one who is conscience of the world, and ethical
issues will be significant to them. The Mulberry consumer expects this
company to be ethical, and expects them to do everything In their power
to fulfil this.
Mulberry have recognised the demand for ethical products. As
we can see in the Corporate Social Responsibility document,
Mulberry only work with people who have similar ethical
values, and they use fair-trade alternatives when available.
Here are key facts which indicate the demand for ethical
fashion.
-Respondents who strongly agreed they would never buy
clothing or footwear from a company that exploited its
workers were more likely to be women (35.4%) and aged 25
or over. (Keynote, 2008). This fits in with Mulberry‟s target
market, meaning that ethical procedures are important to
their consumer.
-”This growth is being driven by stronger consumer demand
for fairly produced and sustainable clothing, and that
demand is being met by growing numbers of ethical brands
with and without their own retail outlets, and now
increasingly joined by the high street majors.” (Mintel,
2009). This quote suggests that ethical fashion is in high
demand, and provides an opportunity for Mulberry to expand
into this potential market.
-”Sustainable alternatives, such as bamboo and recycled
clothing and textiles, offer particularly good potential to
increase volume to meet growing demand into the future. In
the mean time, increased supplies of fabrics like organic
wool, peace silk and hemp silk are enabling designers to
expand further into sectors like outerwear and evening
dresses.” (Mintel, 2009). Mulberry, as a luxury brand, could
source these materials to help them gain a reputation for
being a ethical fashion retailer, which will inevitably improve
their brand image and appeal to their target consumer.
Cultural Influences:Macro factors are always going to affect Mulberry, whether it is influencing current
trends or changing their policies due to new legislations. This section will look at the
cultural influences affecting the company.
Political
Political issues, such as unemployment, wars, global
warming and current issues will always affect how a
company like Mulberry operates. For example, global
warming has led to Mulberry switching to renewable
energy sources, minimalizing their carbon footprint and
decreasing the amount of chemicals used in production.
Economic
Economic issues tend to change the typical buying habits
of a consumer. For example, the recession and rise in VAT
has made consumers more reluctant to spend money on
items considered a luxury in order to cut costs. People
have less disposable income, so Mulberry aim to penetrate
the market to encourage more spending. The rise in the
price of cotton means Mulberry will research into
alternative materials, or raise their prices for cotton
garments. We can see „a pendulum swing‟, as the
recession of the 1970‟s is repeating in current day, so is
the 1970s bohemian hippie trend.
Social
Social issues affect what consumer‟s demand from a
company. For example, people are increasingly aware of
animal welfare, the environment, and traditions held
within a culture change. Consumers are increasingly
aware, and the demand for ethical fashion has influenced
Mulberry‟s Corporate Social Responsibility.
Technological
Technology is continually advancing, meaning companies
need to advance with it to keep up with competitors.
Mulberry have taken all the opportunities technology can
offer, by updating blogs and social networking sites, using
e-marketing, creating iPod aps, and by having an
interactive website with features to engage the consumer
(Evolution of the Alexa, History of the brand, and allowing
the consumer to stream catwalk shows).
Environmental
With a rising concern for the environment, Mulberry
continue to make the company more environmentally
friendly to keep up with consumer demands. Mulberry are
taking action to ensure they reduce their waste and act
on climate change. By using UK factories, they reduce
their carbon footprint.
Legislation
Mulberry always need to be aware of the latest
legislation, so they take out the right policies and do not
break the law. Legislation in a business involves equal
rights and opportunities, protecting the employees data,
and not using endangered animals for fabrics. Legislation
will always dominate a business.
To be successful, Mulberry need to constantly develop
their target consumer. Mulberry use Demographic
Segmentation, meaning they define their target
consumer by demographics. They aim their products for
women, between the ages of 25-40. Their consumers
are typically professional, in the social grade ABC1.
They have disposable income for luxury goods, and love
the British Heritage Mulberry offers.
Butterflies
Butterflies are profitable but not loyal. Mulberry need
to attract this customer in order to maintain
profitability.
True Friends
These consumers are highly loyal and highly
profitable. To maintain this, Mulberry need to listen
to and research this consumer to keep up with their
demands. This will enable them to deliver what they
need and want.
Strangers
These consumers are not loyal and very low in profit.
Mulberry should not aim to these consumers, as the
company does not relate to them.
Barnacles
Barnacles are loyal, but not profitable. As a luxury
company, Mulberry is expensive, however the
collaboration with Target would have engaged this
market.
Hig
h
Pro
fita
bilit
yLow
Pro
fita
bilit
y
Short Term Customers Long Term Customers
Customer Relationship Matrix, (Kolter 1986)
PLC Considerations:
As an innovative
luxury fashion
brand, Mulberry
need to consider
the product
lifecycle, in
relation to retail,
promotion and
products. This
model will help the
company
determine
promotional
strategies,
marketing
strategies, and will
distinguish when
different product
categories are in
growth, maturity
or decline. This
helps the company
with time
management, so
when a product is
in decline, they
can release a
product in growth.
Intro Early Growth Late Growth Maturity Maturity Decline
Competitors
Customers
Profitability
Risk
Early AdoptersInnovators Early Majority Late Majority LaggardsLate Majority
Very Few SomeSeveral
Competing
Many players. Competition
kills off and consolidation
begins
Few
Competitors
Uncertain High Declining Declining Minimal
High Lower Moderate Higher Highest
The Retail Life Cycle
Below is a retail life cycle, depicting what type of consumers buy products at particular
stages of the product life cycle. Talking about this cycle from the company‟s perspective, it
is clear to see that Mulberry are in late growth. They have several competitors, have gained
a large fan base and are continuing growth. Sale
s
Time
Product Life Cycle
The product life cycle is a method used to show where a product is in the market, and can
be used to show when the product will stop being profitable. On this page, I am going to
identify four types of product and draw a product life cycle for each one, fashion, fad,
classic and basic/core.
Sale
s
Sale
s
Sale
s
Sale
s
Time Time
TimeTime
Fad Fashion
Classic Basic/ Core
.
Intro
IntroIntro
Intro
GrowthGrowth
GrowthGrowth
MaturityMaturity
Maturity Maturity
DeclineDecline
DeclineDecline
Ansoff Matrix
The fad would
require product
development, as
new products need
to be continually
introduced.
The Fad product has
a quick growth,
quick decline and
maturity.
Ansoff Matrix
The fashion would
require product
development, in
order to gain profit.
The Fashion product
gradually grows, has
a short maturity
before declining.
Ansoff Matrix
The Classic would require
market development and
penetration, to maintain
the consumer‟s interest
and draw new market in.
The Classic product
grows, then declines
until a new adaptation is
released, making growth
creep back up.
Ansoff Matrix
The basic product would require
market
development and penetration to
draw new markets in, and hold
their markets
interest.
The Basic/Core Product has a
gradual growth, and spends a
long time in the maturity phase.
Promotion and the Product
Life Cycle
This model shows what
mediums of promotion
companies should follow at
different stages of the Product
Life Cycle, to ensure their
product gains as much
awareness from consumers as
possible and to maximise the
potential profit of a product.
When a product is first
launched, the aim of
promotion should be to
increase awareness and create
a desire for that product,
before using persuasive
advertising to encourage a
purchase from the consumer.
They should then reinforce this
message by reminding the
consumer about the product,
before changing the price of
the product whilst it begins to
decline, to further encourage
the consumer. Only seasonal
products go on sale in
Mulberry, classic and basic
items such as the Bayswater
never do. This is because these
products remain in the growth
and maturity stages of the
product lifestyle and are
unlikely to go into decline.
In relation to the Boston Matrix and Customer Relationship Matrix:
Question Marks:
When a product is
introduced, it is
uncertain whether the
product will do well.
Barnacle:
Barnacles are loyal to
the company, and act
as innovators for the
product. However,
they are not very
profitable.
Cash Cows:
A product which stays in
maturity for a long period
of time proves the product
is highly profitable, and
will be for a long period of
time.
True Friend:
This consumer is loyal and
profitable, and maintain
the profit made by a
product.
Stars:
If a product is in
growth, it is an
indication that the
product is performing
well and gaining profit.
Butterfly:
Butterflies are
profitable but not
loyal, so persuasive
advertising is necessary
at this stage.
Dogs:
If a product is in
decline, the
product is no
longer
profitable,
making it a
„dog‟.
Stranger:
Strangers are not
profitable or
loyal, therefore
generating no
profit.
Category Fabric Product
Line
Image/
Style
Description Sizes Colour Sale
Price
Country
of Origin
Launch
Date
Alexa Soft
Buffalo
Leather
Bags British
Chic
Inspired by
Alexa Chung,
the bag is part
Elkington and
part
Bayswater.
Comes in 3
sizes, the
„Mini Alexa‟,
the „Alexa,‟
and the
„Oversized
Alexa
Comes in a
variety, but
usually
brown.
Standard
Alexa is
£785,
Oversized
Alexa is
£925 and
Mini Alexa
is £525.
Somerset,
UK
January,
2010.
English
Plum Twist
Dress
59% Wool,
41% Silk
Dress Vintage,
Occasion
Wear
Nipped in at
the waist,
flared skirt
with a twisted
neck line.
UK Size 6- 14 Plum £1016 Somerset,
UK
Spring/
Summer
2011
French
Purse
Natural
Leather
Women‟s
Purses
Simplistic 8 Card Slots,
Popper
Closure,
Mulberry
Plaque,
Internal Zip
Height: 9.5cm
Width: 14cm
Depth: 2cm
Black £200 Somerset,
UK
New
Designs
every
season
Bayswater Oak
Natural
Leather
Bags Iconic,
British
Heritage
Influenced
from the
Satchel and
Briefcase, one
of Mulberry‟s
most iconic
designs
Height:
26.5cm
Width: 36cm
Depth: 16cm
Handle Drop:
15.5cm
Comes in a
variety of
colours,
usually
brown
£675 for a
basic
Bayswater
Somerset,
UK
New
Designs
every
season
Fad
Fash
ion
Cla
ssic
Basi
cMulberry Range Plan
Below are my suggested product lines for fad, fashion, classic and basic. I have drawn a range plan for each product, a method used
by industries to plan stock and how and where it will be manufactured then released into stores. Details such as size, colour,
materials and suggested retail price is all noted, to ensure the stock is made to the right standard. The fashion industry typically
forcasts a trend, designs it, plans the physical process of creating it, before manufacturing and delivering to stores. This range plan is
simplistic, as information was limited.
Strategies,
Tactics and
Actions
Internal Strengths Internal Weaknesses
External
Opportunities
Mulberry are very good at promoting the
British Heritage Lifestyle.
Mulberry have created iconic bags, well
known globally in the fashion industry.
Mulberry have expanded internationally,
and have performed well financially
throughtout the recession
Mulberry can expand their market more, by
opening stores in Japan and America. British
brands have proved to have done well over
there, such as the Target collaboration and
Burberry‟s Asian market.
Mulberry lack a menswear
range, which essentially is
ruling out a huge market.
Mulberry need to develop their
womenswear to the same
degree of fame as their bags.
Mulberry could use menswear
as an opportunity to diversify.
Mulberry could use the
opportunity of the global
market to diversify, developing
new products for new markets.
External Threats The Tsunami in Japan, which occurred early
in 2011, has alienated the possibility of
opening a store in this country in the near
future, creating a threat of losing profit and
wasting time for not building a fan base of
the brand.
Burberry threaten Mulberry, due to the basis
of British Heritage themed brands. Burberry
have expanded and grown globally, creating
a threat for Mulberry to fall behind the
market.
The threat of creating a
menswear range would be the
expense and time spent
developing and creating it.
Mulberry is a feminine brand,
so it could essentially destroy
the brand if it fails to do well.
Expanding globally could be a
risk, due to the possibility of
consumers feeling
unconnected with the brand,
therefore gaining bad public
relations.
TOWS Analysis
This diagram is a more
developed SWOT
analysis, looking at
how a business
interprets external
threats and
opportunities, and
reacts based on
weaknesses and
strengths. It is better
used for determining a
marketing strategy, to
see where the
company is performing
well, and where they
are performing poorly.
This analysis looks at
Mulberry and what
risks they gain from
opportunities, and
what holds them back
from changing a
weakness.
Harvard References:
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d%3d
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mulberry-emma-hill-on-tillie-and-pr.aspx
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WHITE, B., 2010. How Have Mulberry Achieved Their Epic Turnaround of Fortunes? [online][viewed 28/04/2011]. Available from:
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fortunes.html
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