How Ralph Laurene Company Uses 4Ps Marketing Strategy
Ralph Lauren Corporation is an apparel-oriented organization that is based in U.S. The company focuses on making various designs for men, women and children. Moreover, the company is also involved in marketing and selling high end apparel, fragrances, accessories and home furnishings to various clients globally. The company whose headquarter is in NY was established in 1967 by the American designer Ralph Laurine (Ralph Laurene, 2014). This paper is focused at analyzing the company’s strategic objectives, as well as the available strategic alternatives it can exploit to better its services.
Strategic Framework and Alternative
The 4 PS
The company’s strategy in making its product lies with consumer behavior. Prior to making any type of products, the company first finds out the market behavior of an intended market. This to maximize the market share and exposure, especially in the clothing industry. In light of this, an understanding and knowledge of target markets, decision making of consumers, consumer perceptions and other factors that determine the possibility of the consumer purchasing the intended product is perceived as very critical to Ralph Lauren’s success.
In regard to its product offering, the company need to strategize on how to present its product in an appealing way. In particular, the company should develop specialty boutiques stores, luxury products, and different clothing lines to cater for the different interests and preferences of different market niches. Creation of affordable brands is a strategy that will help in attracting the wider market especially from the low economic background.
One of the advantages of this endeavor is that the company will have a differentiated line of products with those of the existing competitors. However, having to change products constantly may confuse the customers who may have been used to particular products.
The corporations’ pricing strategy depends on various factors. The first and most obvious is calculating the actual cost for production and distribution. This is what actually shapes the price of its various products. There are other less tangible factors like profit margin, consumer attitude and personalities and brand values. Moreover, the company takes advantage of consumer behavior in pricing. For instance if the targeted market comprises of moderately financially well-off customers who do not have a problem with paying a little extra, then it sets the prices to suite them.
However, the company needs to be concerned on the prices it charges for its products. In particular, the price should be made relatively lower than those of her competitors should. This has the potential of drawing more customers from her competitors. However, this strategy may be disadvantageous to the company has low pricing may translate to low returns. Consequently, pricing should be secured after calculation of the anticipated profit from this product and the market share to be generated in relation to those of the competitors.
To reaffirm its position as the most preferred luxury brand, Ralph Lauren turns to “merchantainment,” which it describes as a seamless blending of entertainment and merchandising, which means telling of stories from around the world on its own products. In this perspective, retailers create stories across different channels, which turn items to a lifestyle. Further, the company also releases a magazine with the name Ralph Lauren, in order to digitally promote its products and display new ones. This allows prospective customers and loyal shoppers to see and further understand the lifestyle and product categories of Lauren.
However, R.L should explore different avenues and means, which can be used for promotion and advertising purposes in order to develop and expand its local and international markets. In particular, the company should focus on creating private previews, organizing fashion shows, organizing private previews, as well as leveraging on interactive marketing strategies in-store Holiday sales and sneak peeks of new clothing arrivals.
Increased promotional endeavors translate to increased awareness on the company’s products. However, this may lead to wastage of company resources as some avenues may not yield positive results.
Place/Means of Distribution
The corporation sells its products worldwide through its more than 11,500 outlets. In addition, it also wholesales its products to leading mid-tier and upscale departmental stores, golf and pro shops and specialty stores, both internationally and domestically. Further, it also sells products through e-commerce sites, which are operated by wholesale customers. Other products are sold o through licensing with its many licensing partners such as Luxottica group,Hanesbrands,L Oreal and Peerless.
In order to further expand its international market base, Ralph Laurene should endeavor to establish subsidiaries in international markets, which will help in distributing the products to various countries. Moreover, it should make use of potential found in the internet by leveraging on the e-Commerce and mobile industry, online marketing, and hosting fashion shows on their websites.
Implementation of the 4Ps
In essence, a marketing mix that is successful and which facilitate increased results, necessitates analyzing the target market and experimenting. All the marketing mix elements must be coordinated to avoid sending mixed messages to the potential clients, which could lead to confusion. In short, all the elements of the marketing mix ought to contain similar messages. One of the key elements that Ralph Laurine Corporation should consider in respect to the success of their marketing program is to work effectively in shaping the various marketing mixes. This will help in meeting the nature and needs of the target market.