AE1 PDF- A VISUAL AND WRITTEN PROCESS ANALYSIS MULBERRY PLC EVE FISHER-Q79818099 BA FASHION MANAGEMENT WITH MARKETING

LEVEL 4 FASHION PROCESS WORD 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 Mulberrys 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:

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)

Table showing key financial information of past 5 years (Fame 2010).

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 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.

Weaknesses -Mulberry have a very small product range, and could diversify the brand more to increase profit. -The Tsunami in Japan has affected Mulberrys 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.

Threats -Mulberry has many competitors, as seen in the perceptual map. This threatens Mulberrys 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:

Mulberry consumers are loyal to the brand, and feel an attachment to the product lines especially bags

Pen Portrait Mulberry focuses on consumers who are typically professional who enjoy quality made goods. The Mulberry brand is perceived as high quality, especially leather goods. The company is constantly growing and is perceived as an iconic fashion label.

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.

Resonance

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.

Judgements

Feelings

Mulberry is a luxury designer brand, which means the products are highly priced. Mulberrys brand is high quality, therefore products are well made and durable.

Performance

Imagery

Salience Brand Equity Pyramid (Keller) 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.

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. 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.

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 Mulberrys 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.

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 emarketing, 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. Theyre 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 brands image of British Heritage. They could diversify by developing a menswear range. At the moment, they only sell mens 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
Existing Markets

New Products

New Markets

Trickle Down TheoryMulberrys 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.

Bubble Up TheoryMulberry 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.

Mulberry Tillie Bag, 825

River Island, 36.99

Mulberry Bayswater, 675

Topshop Leather Satchel, 85

Mulberry Mini Alexa, 1379

ASOS, 85

Product Category Analysis:

Mulberry are well known for their bags in their company, and create many different styles. They also sell womenswear, mens 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, Mulberrys creative director, 2010). Low Quality High

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.

Low

Economy

Penetration

Market Growth

Question Marks I would say that Mens 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. 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.

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. 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.

Skimming

Premium Mulberry uses a Premium Price strategy, due to the high quality of the products. Mulberry have penetrated the market, therefore increasing their brands value.

Price

High

Low

High

Low

Market Share

High

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. 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.

Fashion

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.
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.

Classic

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. Mulberrys 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.
Peggy Dress, 100% Silk Short Sheepskin Duffle Coat, 100% Sheepskin (All

(Corporate Social Responsibility 2011, Mulberry.com) LFW and Mulberry

Images from Mulberry.com)

Culottes, 77% Wool, 16% Polyester, 6% Sparkle Tweed Bayswater Nylon and 1% Elastane Bag, 100% Leather

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.

(Google Images, 2011)

Material Analysis:

Mulberrys Autumn/ Winter 2011 Collection, Google Images

Canary Yellow Teal

Navy Blue

Maroon

Lilac

Warm Beige

Deep Purple

Rose Pink

Light

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 anim al awareness and global warming has inspired a natural theme throughout the collection.

Silhouette and Trim Development:

Mulberrys 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 Silhouette Nipped in at the hip

Max i

Layered/ Midi

A-Line

Traditional Mulberry Silhouette

Classic Product Line

As one of Mulberrys 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 Mulberrys 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 Mulberrys 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

For the fashion product line, I chose a twist dress from Mulberrys collection. Its 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 Mulberrys brand.

Changing the colourAutumn/ Winter 2011 Mulberry colour palette.

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:

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! Its 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 Bargaining Power of BuyersMulberry are market and product orientated, meaning that they focus on penetrating their market, and expanding their products. 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.

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 Suppliers- Mulberry prides themselves on manufacturing their products within the UK.

Rivalry amongst existing competitors

Porters Five Forces

Threat of Substitute Products or Services- Burberry are expanding into leather goods, meaning the market share could be taken by Burberry.

This model is used amongst businesses to define threats and demands of the market. I have identified where Mulberry are threatened by Burberrys entrance into targeting a less affluent consumer, and how Burberry expanding their leather goods could be a threat to Mulberrys market. The power of their consumers and suppliers has further been expanded using this model.

Mulberrys 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 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.

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 Mulberrys 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 brands values of craftsmanship and quality.

Ethical Considerations:
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 Mulberrys 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. 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.

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. 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 1970s is repeating in current day, so is the 1970s bohemian hippie trend. 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). 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.

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.

Social Social issues affect what consumers 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 Mulberrys Corporate Social Responsibility.

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.

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.
Customer Relationship Matrix, (Kolter 1986)

Butterflies
High 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.

Butterflies are profitable but not loyal. Mulberry need to attract this customer in order to maintain profitability.

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.

Low Profitability

Short Term Customers

Long Term Customers

PLC Considerations:

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 companys 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.

Time
Intro Customers Competitors Profitability Innovators Very Few Uncertain Early Growth Late Growth Maturity Maturity Decline Laggards Few Competitors Minimal Early Adopters Early Majority Some High Several Competing Declining Late Majority Late Majority Many players. Competition kills off and consolidation begins Declining

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.

Risk

Sales
High

Lower

Moderate

Higher

Highest

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. Fad Ansoff Matrix The fad would require product development, as new products need to be continually introduced. Fashion Ansoff Matrix The fashion would require product development, in order to gain profit. The Fashion product gradually grows, has a short maturity before declining.

Sales

The Fad product has a quick growth, quick decline and maturity. Intro Classic Growth Time Maturity Decline Ansoff Matrix The Classic would require market development and penetration, to maintain the consumers interest and draw new market in. The Classic product grows, then declines until a new adaptation is released, making growth creep back up. Intro Basic/ Core Growth Time Maturity

Sales

Decline

Sales

Sales

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.

Intro

Growth Time Maturity

Decline

Intro

Growth Time

Maturity

Decline

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: Stars: Question Marks: Cash Cows: If a product is in When a product is A product which stays in growth, it is an introduced, it is maturity for a long period indication that the uncertain whether the of time proves the product product is performing product will do well. is highly profitable, and well and gaining profit. Barnacle: will be for a long period of Butterfly : Barnacles are loyal to time. Butterflies are the company, and act True Friend: profitable but not as innovators for the This consumer is loyal and loyal, so persuasive product. However, profitable, and maintain advertising is necessary they are not very the profit made by a at this stage. profitable. product.

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.

Mulberry 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.

Category
Alexa

Fabric
Soft Buffalo Leather

Product Line
Bags

Image/ Style
British Chic

Description
Inspired by Alexa Chung, the bag is part Elkington and part Bayswater.

Sizes
Comes in 3 sizes, the Mini Alexa, the Alexa, and the Oversized Alexa UK Size 6- 14

Colour
Comes in a variety, but usually brown.

Sale Price
Standard Alexa is 785, Oversized Alexa is 925 and Mini Alexa is 525. 1016

Country of Origin
Somerset, UK

Launch Date
January, 2010.

Fad
English Plum Twist Dress

Fashion

59% Wool, 41% Silk

Dress

Vintage, Occasion Wear

Nipped in at the waist, flared skirt with a twisted neck line. 8 Card Slots, Popper Closure, Mulberry Plaque, Internal Zip Pocket Influenced from the Satchel and Briefcase, one of Mulberrys most iconic designs

Plum

Somerset, UK

Spring/ Summer 2011

French Purse

Natural Leather

Womens Purses

Simplistic

Basic

Height: 9.5cm Width: 14cm Depth: 2cm

Black

200

Somerset, UK

New Designs every season

Classic

Bayswater

Oak Natural Leather

Bags

Iconic, British Heritage

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

Strategies, Tactics and Actions

Internal Strengths

Internal Weaknesses
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.

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 Burberrys 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.

Harvard References:

ALEXANDER, H., 2011. Mulberry Autumn/ Winter 2011 at London Fashion Week [online][viewed 30/04/2011]. Available from: http://fashion.telegraph.co.uk/columns/hilary-alexander/TMG8336455/Mulberry-autumnwinter-2011-at-London-Fashion-Week.html ANONYMOUS, 2006. Mulberry Group PLC [online][viewed 28/04/2011]. Available from: http://www.fundinguniverse.com/companyhistories/Mulberry-Group-PLC-Company-History.html ARMITSTEAD, L., 2010. Burberry Bags 50pc Profit Rise [online][viewed 1/05/2011]. Available from: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8138632/Burberry-bags-50pc-profit-rise.html BBC, 2010. Mulberry Fashion Group Profits from Higher Sales [online][viewed 28/04/2011]. Available from: http://www.bbc.co.uk/news/business-11956008 BUMPUS, J., 2010. Mulberrys Girl [online][viewed 30/04/2011]. Available from: http://www.vogue.co.uk/news/daily/100910-mulberryspringsummer-2011-preview.aspx CARTER, K., 2011. Fashion Statement: How Mulberry Made It Big [online][viewed 28/04/2011]. Available from: http://www.guardian.co.uk/lifeandstyle/2010/dec/09/mulberry-fashion-statement COHN, A., 2011. Scorecard: Mulberry Wins! [online][viewed 30/04/2011]. Available from: http://tmagazine.blogs.nytimes.com/2011/02/21/scorecard-mulberry-wins/ CORTEZ, T., 2007. Mulberrys Competitors, Customer Profile and Target Market [online][viewed 28/04/2011]. Available from: http://tanyascortez.blogspot.com/2007/02/mulberrys-competitors-customer-profile.html DEZEEN MAGAZINE, 2011. Mulberry Manchester Store by Universal Design Studio [online][viewed 30/04/2011]. Available from: http://www.dezeen.com/2011/03/29/mulberry-manchester-store-by-universal-design-studio/ ENRIGHT, L., 2009. Best of British: Why Burberry has the Fashion Business All Wrapped Up [online][viewed 1/05/2011]. Available from: http://www.independent.co.uk/life-style/fashion/features/best-of-british-why-burberry-has-the-fashion-business-all-wrapped-up1784394.html FAME, 2011. Mulberry Financial Information [online][viewed 28/04/2011]. Available from: https://fame.bvdep.com/version2011421/cgi/template.dll?checkathens=1&kick=1&product=1&user=ssu00057172%40solent.ac.uk&pw=Mz9FlJHK%2b5w%2bve6EcymPEA%3 d%3d GOOGLE IMAGES, 2011. Brown Leather [digital image][viewed 1/5/2011]. Available from: http://www.photoshopfiles.com/photoshop_files/401/preview.png GOOGLE IMAGES, 2011. Diamond Model [digital image][viewed 1/5/2011]. Available from: http://www.12manage.com/methods_porter_diamond_model.html GOOGLE IMAGES, 2011. Flower Pattern Edited onto Dress [digital image][viewed 1/5/2011]. Available from: http://www.istockphoto.com/stockillustration-8480415-seamless-floral-pattern.php GOOGLE IMAGES, 2011. Maroon Knit Pattern [digital image][viewed 1/5/2011]. Available from: http://susancrowe.co.uk/category/knits-wip/page/2/

GOOGLE IMAGES, 2011. Mulberry Advert [digital image][viewed 5/5/2011]. Available from: http://popbee.com/fashion/mulberry-spring2011-ad-campaign/attachment/mulberry-spring-2011-ad-campaign-070111-7/ GOOGLE IMAGES, 2011. Mulberry Bag, Alexa Chung [digital image][viewed 1/5/2011]. Available from: http://www.whatruwearing.co.uk/blog/category/ezine-news/page/2 GOOGLE IMAGES, 2011. Mulberry Catwalk Images [digital image][viewed 1/5/2011]. Available from: http://blog.chicoutletshopping.com/2011/02/21/london-fashion-week-super-sunday/ GOOGLE IMAGES, 2011. Mulberry Logo [digital image][viewed 5/5/2011]. Available from: http://www.viafashion100.com/mulberry.htm GOOGLE IMAGES, 2011. Snakeskin Pattern [digital image][viewed 1/5/2011]. Available from: http://en.fotolia.com/id/1981282 GORMAN, C., 2009. Alexas Bag Hits Mulberry [online][viewed 5/5/2011]. Available from: http://www.elleuk.com/news/fashionnews/alexa-s-bag-hits-mulberry HART, J., 2010. Bag a Part in the New Mulberrys Expansion [online][viewed 28/04/2011]. Available from: http://www.dailymail.co.uk/money/article-1284259/MIDAS-Bag-new-Mulberrys-expansion.html KEYNOTE, 2008. Green and Ethical Consumer [online][viewed 1/05/2011]. Available from: http://www.keynote.co.uk/marketintelligence/view/product/2179/green-and-ethical-consumer?highlight=ethical+clothing&utm_source=kn.reports.search KEYNOTE, 2008. Green and Ethical Consumer [online][viewed 1/05/2011]. Available from: http://www.keynote.co.uk/marketintelligence/view/product/2179/green-and-ethical-consumer?highlight=ethical+clothing&utm_source=kn.reports.search LIBERTY LONDON, 2011. LFW AW11, Q&A with Mulberrys Creative Director, Emma Hill [online][viewed 1/05/2011]. Available from: http://www.libertylondongirl.com/2011/02/20/lfw-aw11-qa-with-mulberrys-creative-director-emma-hill/ MILLIGAN, L., 2011. Before the Storm [online][viewed 30/04/2011]. Available from: http://www.vogue.co.uk/news/daily/110202mulberry-emma-hill-on-tillie-and-pr.aspx MINTEL, 2009. Ethical Clothing- UK [online][viewed 1/05/2011]. Available from: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=393875 MULBERRY GROUP PLC, 2010. Mulberry Group PLC Interim Statement [online][viewed 1/05/2011]. Available from: http://www.mulberry.com/about/PDF/Investor/MulberryGroupPLC_Interim_Announcement_September%202010.pdf MULBERRY PLC, 2011. Evolution of the Alexa [online][viewed 5/5/2011]. Available from: http://www.mulberry.com/#/discovermulberry/evolutionofthealexa/ MULBERRY PLC, 2011. Mulberry Alexa [digital image][viewed 1/5/2011]. Available from: http://www.mulberry.com/#/storefront/c5484/4299/category/ MULBERRY PLC, 2011. Mulberry Annual Report 2010 [online][viewed 5/5/2011]. Available from: http://www.mulberry.com/about/PDF/Investor/MulberryGroupPLC_AnnualReport_2010.pdf

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