Macro Environment Analysis
The macro environment is external uncontrollable variables i.e. PEST FACTORS
“To provide insight into and inspiration for marketing. Decision making companies must possess comprehensive up- to- date information on macro trends as well as macro effects particular to their business. Holistic marketers recognise that the marketing environment is constantly presenting new opportunities and threats and they understand the importance of continuously monitoring and adapting to that environment (Kotler & Keller, 2006)
PEST Analysis
“A systematic means of analysing the external factors that may present opportunities or threats to a business.”(Lines, Marcouse & Martin, 2003)
“It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning.”(www.marketingteacher.com)
Political
Politics might seem a world away from fashion but it can have an extensive consequence on manufacturers. “With such globalized sourcing of suppliers, world political events can aid or hamper the acquisition of supplies.” (Easey, 2002). Companies must consider some political issues; whether or not the political environment is stable, in this case it is fairly stable. They may also look into the governments’ position on marketing ethics, their policy on the economy and any trading agreements they may have.
Economic
General economic factors such as income, employment and home ownership have a great effect on the clothing industry. “Consumer expenditure on new clothing is very dependent on the general state of the economy measured by the gross national product, their employment status and their disposable income.”(Easey, 2002) The higher the disposable income the more money will be spent on luxury goods, such as designer clothes and accessories. However factors including marriage, having children and retirement alter peoples requirements for clothing, footwear and accessories. The fashion industry is international and is therefore strongly affected by international economic issues as well as national economic problems.
Social
Social factors tend to deal with lifestyle trends, demographics, buying patterns and consumers’ attitudes and opinions.
Changing lifestyle trends can affect the future of the business. When the economy is strong and there is a higher GDP, there is a higher disposable income which allows for bigger sales of luxury goods.
“Demographics refer to selected population characteristics as used in government, or opinion research, or the used in such research.” (www.Wikipedia.com) Demographics is a major factor in determining changes within the market. For example looking at age distribution or two income households/dependant households will allow business a look into the spending habits of the market. “The rise of two income households among professional and middle class households means that this market segmentation has a high disposable income.” (Jobber, 2004)
Changes in social values are also changing the output of the fashion industry. Increased interest in sports and leisure has been reflected in increased popularity in sportswear and trainers as fashion items. The huge movement of the ‘green Impact’ has also had an impact, most noticeably on the manufacturing of textiles.
Technological
Technological change affects both production methods and the choices made by the consumer. Technological developments have also meant that international competition is fiercer than ever therefore companies must keep ahead with technology to remain a strong competitor in the market.
“The clothing industry is extremely labour intensive, but installation of modern machinery fitted with the latest electronic controls is helping to improve productivity.” (Easey, 2002)
In order to keep up or ahead of competitors all designers must keep up with the latest technological developments. In the long run technological factors can lower barriers to entry, reduce minimum efficient production levels and influence outsourcing decisions.
Performance Analysis
A performance analysis is generally called for when you want to improve a part of the organisation (look for needs) or to fix a problem that someone has brought forth. Both are generally fixed in the same manner.
When performing an analysis, it is best to take a long term approach to ensure that the performance improvement initiative ties in with the organisation's vision, mission, and values. This connects each need with a metric to ensure that it actually does what it is supposed to do.
(www.skagitwatershed.org)
In the case of Luciano Soprani the need to ensure that they are constantly improving their clothes and product lines.
The most recent new product line is a new fragrance called Miss Soprani. This is Sopranis tenth fragrance. Sopranis fragrances do well in the marketplace so it is less of a risk bringing out new fragrances rather than some of his other lines such as accessories.
In their current market Luciano Soprani were not doing as well as would have been expected, however they are now bringing back the old logo to try and regain older loyal customers. Other areas such as perfume and accessories are doing very well especially in Italy. Underwear was launched not to long ago and has taken off however sales are still inspected to increase. The next new venture is leatherwear in the autumn of this year. House of Soprani feel they have found a gap in the market and are confident their new line will be just as successful as their others.
Soprani need to ensure they continue to give their customers guaranteed quality and a style which will inspire them and suit their needs and wants. The fashion business is extremely tough but once you have a well established name like Soprani then your clients tend to stick with you. The future looks good for House of Soprani as moderns influences start to influence their latest collections. The hold a strong position in the market and with their new lines they should continue to do this and even increase their market share and profits.
Forecast of Future Trends
“A trend is characterised by a building awareness of a new look and an accelerating demand among consumers (Perna, 1987).” (blackboard.gcal)
“The Luciano Soprani brand totally identifies itself in its creator with a clear, essential and decisively reassuring style, a recapture of tailoring both in contour and volume, a meticulous search of fabrics, a particular awareness of change and evolution, a sweet music of fashion, never a cry. In synthesis this is the unmistakable style that characterizes all of Luciano Soprani creations and that have reconfirmed it as one of the leading brands of Italian Style.” ()
“Trends are relatively slow moving changes in the marketplace that can occur for a variety of reasons, and businesses ignore them at their peril.” (Easey, 2002)
Trends can be business led or consumer led. General fashion can change very fast and go from one extreme to another whereas trends in clothing fashion tend to be slower and build upon themselves rather than ignore what went before.
Estimating future demand for goods and services is extremely difficult in any market but particularly so in fashion. Anticipating what buyers are going to do is made even more difficult because fashion changes so quickly, so any predictions about the future should be flexible and open to modification as the seasons change.
The future looks good for House of Soprani with Allessandro Turci leading the way with new innovative styles. There is stiff competition in the market but with the company edging back towards their older influences sales should increase. The old logo is easily recognised and should draw in their loyal consumers. Fresh modern influences will keep Sopranis style however will allow for a modern twist which is what the market needs. The Soprani name is exclusive and will be highly sought after with careful promotion to the right target audiences as there is a niche market their for the company.
“Fashion change, shows, that new looks rarely come out of the blue. Instead, fashion is a logical evolution from one originator, the next step in building on a successful trial balloon, a response to social change, or an expression of cultural drift.” (blackboard.gcal)
Recommendations and Conclusions
Luciano Soprani is renowned in the world of fashion. His product lines are known for their high quality and the company name sells itself. Loyal customers will continue to buy his brand and with new modern influences mixed with their older influences they will bring in more customers than ever. The tenth perfume has just been released which shows his other lines are equally successful and will continue to be with Allessandro Turci designing the latest lines.
References
BOOKS
Easey, M, (2002)Fashion Marketing,(2nd),Oxford
Bondanowicz,J, (2001)Fashion Marketing.New York
Hines, T, Bruce, M, (2001)Fashion Marketing: Contemporary Issues,(edition), Oxford, Page70
Jobber, (2004) Principles and Practice of Marketing, Berkshire, UK
Lines, Marcouse, Martin, (2003)A-Z Business Studies. Tonbridge, Kent
WEBSITES
http://blackboard.gcal.ac.uk/webapps/portal/frameset.jsp?tab=courses&url=/bin/common/course.pl?course_id=_21183_1
