1.0 Executive Summary 2.0 Brand Heritage 2.1 Timeline
3.0 Brand Equity and Visual Identity 3.1 Aakers framework
4.0 Marketing Mix 4.1 BCG Matrix 4.2 AIDA Model 4.3 4Ps
5.0 Consumer Segmentation 5.1 Emerging Markets
6.0 Competitor Analysis 7.0 Micro and Macro-economic Factors 8.0 Primary Research 9.0 SWOT Analysis 10 Brand Recommendations 11 Bibliography
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This brand report is focused on the brand, Stella McCartney. The audit will research into the brand history, marketing models, such as the BCG Matrix, the 4pâ€™s, SWOT analysis, AIDA Model and PESTLE, competitor analysis as well as the brands essence and visual identity. These will all be used to analyse the brand and suggest recommendations for the future.
Stella McCartney is more than just another brand. The ethics and values behind the name are a huge part of what it stands for, meaning the designer uses no leather, no fur and ensures the people who are making her garments are not put in any danger. Sustainability is what shapes this brand as something that is not only another fashion brand, but as something that is changing the world for the better. Known for her sharp, British, yet feminine take on tailoring, Stella was brought up as a strict vegetarian by her mother, animal rights activist, Linda McCartney. Stella has since stuck by her beliefs throughout her life and when building her brand around these values.
In 1995 after graduating from Central St. Martins with a fashion degree, supermodel friends, Kate Moss,Yasmin Le Bon and Naomi Campbell all modelled for her final year show – some would argue this was down to her father, Paul McCartney being a part of one of Britain’s most famous bands, The Beatles. Soon after in 1997, Stella was appointed creative director of the Parisian fashion house Chloé and in October 2001 Stella joined up with the Kering Group to develop her own luxury brand label. Later that year in October, Stella showed her first womens Ready-to-wear collection in Paris and that’s when the Stella McCartney brand was born.
Since then her brand has significantly grown. In 2003 her first perfume Stella was launched and soon after in September 2004, Stella McCartney formed a partnership with well-known sports brand Adidas, designing her own sustainable sportswear for all kinds of different sporting activities. This part of the brand has been of popular demand over the years and in 2012 she was asked to design the official uniform for GB Olympic team, making her the first luxury designer to create the uniform for the Olympics. She was soon asked again to design for the 2016 Rio Olympics. As well as Adidas, Stella has since teamed up with high-street brand H&M, to create a 40-piece collection that sold old almost immediately, and Australian budget store Target where she used her mother as an inspiration for the collection in 2007. In 2009, Gap launched a childswear collection designed by Stella McCartney, this being so successful they launched a second collection in 2011. 2010 was a particular successful year for Stella as she introduced her most sought after, best-selling bag - the Falabella. More recently, Stella McCartney has launched her newest perfume POP and has just debuted her first menswear collection furthering the brands market audience and becoming more inclusive in the fashion industry. The brand now also has 51 stores worldwide and ships to over 100 countries meaning the brand is becoming globally known and more consumers are able to access her products.
â€œIn Gucci Group, I have found a partner with the skills necessary to make this business a success. I have always wanted to start my own label and I feel ready for the challenge.â€? - Stella McCartney
From the Beginnin
Brand Equity a Visual Identity
13 Mission Statement â€œWe are agents of change. We challenge and push boundaries to make luxurious products in a way that is fit for the world we live in today and the future: beautiful and sustainable. No compromises. Each decision we make is a symbol of our commitment to defining what the future of fashion looks like. From never using leather or fur and pioneering new alternative materials to utilising cutting edge technologies, pushing towards circularity, protecting ancient and endangered forests and measuring our impact with groundbreaking tools.â€?
The quality of Stella McCartney’s products is particularly high, giving them a high value in price and putting them in the luxury section of the fashion market. All her products are made from sustainable materials, for example instead of using real leather from a calf, she uses recycled polyester - the Falabella handbag is just one of the products made from this alternative leather. Another popular product among celebrities, such as Gigi Hadid and Kendall Jenner, are her platform, Elyse shoes. The unique high platform along with a brogue style shoe, gives the product an androgynous look.
Brand as a Product
Brand as a Person
Stella McCartney is extremely successful. The brand is unique and trustworthy to its customers who will also agree with what the brand stands for – being sustainable. The consumers that will buy again are the ones who know how honest and reliable the brand is in saying all their products are 100% sustainable. Stella McCartney has built her brand around what she believes and has made it so customers will remember the brand when they are ready to purchase something new, meaning they will more than likely buy from there again.
Brand as a Organisation
Strong ethical beliefs and values are a strong significance to the brand. The brand promotes charities that Stella believes does good to the world or associates herself with. On the official website, there is a category called ‘Charity.’ This list consists of thirty charities that are related to Stella’s brand values as well as her own, for example, funding for cancer which was the result of her mother’s death. By doing this, the brand is shining a positive light onto themselves by promoting these charities and continuing to show that this is what they are standing up for and together they will create a better world for everyone.
Brand as a Symbol
Timeless and recognisable, the Stella McCartney font found on the logo was designed specifically for the brand. By just looking at the dots, consumers can tell exactly what brand they are looking at which is extremely important to a brand.
“I think one of the biggest compliments is when I know people go in and buy a Falabella bag or a pair of shoes, or a faux leather skirt, and they have no idea they’re not real leather. I think that’s really where it becomes sexy. Where you’re not just providing an alternative…you’re creating a great product.” (McCartney, 2018)
Marketing Mix BCG Matrix 18
Stars > Bags - The Falabella bag and Star bag are the most recognisable products. The Falabella is popular with the consumers and there are many different types of the bag - the brand has begun developing the bag. > This could be done with the Star bag. > Opportunities to develop the product further, for example creating a newer version, keeping customers interested in the product.
20 > Stella X Adidas - popular in the sports industry, providing reliable income to the company. > Adidas is a well-known and popular brand to have partnered with. Luxury sportswear is not a vast sector in the industry.
> Expansions are limited as sportswear can only be limited to certain garments/accessories. > The Adidas name helps sell the products. > Low growth, high market share with strong supporters of the products.
Question Mark > Stellaâ€™s menswear collection > Still fairly new - more money and investment is needed to advertise. > There is potential for it to become a star and have bigger sales in the future if investment is made into it. > Bring in a new audience.
Dog > Fragrance line - not as known as other products > Potential opportunities to grow into a larger beauty range. For example, makeup is popular and there is high demand for makeup that is ethically produced and not tested on animals. > Any expansions could help the range become a star or cash cow product at some point in the future with a little bit more investment put into it.
Attention Interest Desire Action
Marketing Mix AIDA Model
SS18 campaign - uses of emotional manipulation to manipulate audience into thinking a buying into this product is a good idea. Eg, Plastic bottles in the ocean surrounding the model has been chosen as it is a current problem, meaning they have used this problem to their advantage. Consumers of the advert may become interested in this and feel if they buy Stella’s products, they are not just owning a great product, but helping to save the planet. ‘OVER 5 TRILLION PIECES OF PLASTIC CURRENTLY LITTER THE OCEAN’ - The Ocean Clean up (2018)
The consumer will only be interested in something they think is aimed at them. In Stella’s Winter 2017 campaign, there is a distinctive song throughout the entire film. It is catchy and entices the audience into watching it. In this stage, consumers will stop and watch the video if the messages have connected with them. This means that the advertising has worked! Stella’s campaigns all have diverse models - brand becomes inclusive to everyone.
‘WHEN I PUT MY STELLA’S ON WHEN I PUT MY STELLA’S ON WHEN I PUT MY STELLA’S ON’
By appealing to the needs and wants, brands continue attempting to build trust and reliability with consumers. For a new customer, this is much harder as they are unsure of what they might be buying into. Trying to prove the brand is 100% sustainable and explaining the benefits of the products, Stella ensures that customers will feel like they might need the product, creating desire.
As consumers, everyone has an urgency to buy everything now. So, when brands create a desire to want, consumers will buy the product as a sense of feeling like everything will be better by purchasing. In Stella’s case, the customer will feel as though they have helped the planet. Consumers who feel the brand is honest and loyal, will more than likely buy again.
• The Core – Sustainable consumers buy to ‘help the world’ through buying, good-quality, sustainable products. Stella X Adidas – sporty, consumers who are into sport activities and keeping fashion sustainable. • The Actual – Her products are long-lasting and timeless. • The Augmented – When ordering online, there is delivery to the consumers door or click and collect to store. Consumers can return within 14 days and can contact customer services through website. Consumers can pre-order new collection on the website.
Place You can buy products via website as-well-as in shops and online stores such as, Harrods, Net-aPorter, Adidas, Harvey Nichols. These websites and stores all sell other high-end brands. The brand is sold through channel stores – Department stores/suppliers.
Product line - falabella and logo bags are two popular products that have been made into different versions, eg purses or change in colour. Consumers who have bought these before may want the newest version to stay on trend. Competition - Similar prices to competitors so consumers will pick this brand over another.
Promotion • Internet/e-commerce – Social media reaches out to a range of different audiences. As most people have a smartphone, they are able to access her account to see upcoming collections. Products can be bought from official website – campaigns can be found on there with links to all social media accounts. Consumers can keep up with what’s happening. • Public relations – Stella McCartney is a sustainable brand, portraying a positive image. The designer is the daughter of Paul McCartney which means some people may believe she has easily gained success. • Direct mail – Consumers can sign up for emails through her website which means they are updated on her products, sales and campaigns etc. • Advertising - Worked with Adidas for both The London 2012 and The Rio 2016 Olympics. • Personal Selling – Assistant in flagship stores.
Strong unique selling point - Luxury sustainable fashion. Consumers buy from here because of the ethics. Finds alternative options to real leather or fur.
Customer Segmentation 32
Stella McCartney Stella McCartney Stella McCartney Stella McCartney Stella McCartney Stella McCartney Stella McCartney
Customer Segmentation 34
Target Market Stellaâ€™s consumers would typically have a higher income in order to afford the high-quality products and would also be aware of not only being fashionably aware, but also environmentally conscious in making right decisions. Stellaâ€™s products are modern and durable, meaning customers become loyal to the brand. The demographics of a Stella consumer would typically be a sophisticated, fashion-forward woman, aged between 25-45, who is willing to spend extra money for sustainable products. The consumer must be in some sort of agreement with the brands values. I collated a survey in order to research Stella McCartney further on what the public think about the brand. In the survey, I asked what age they think the brand is aimed at. 40.91% said ages 26-35 and 31.82% said ages 19-25. Although the brand targets itself at all ages, it is clear to see from the results that most people do not agree.
Maslowâ€™s Hierarchy of Needs
35 According to Maslowâ€™s hierarchy of needs, to achieve certain needs, the behaviour of an individual is motivated in order to move up the hierarchy. In the consumers case, when purchasing products from Stella McCartney, consumers may start off in the social needs section where they desire the clothes to feel a part of a group - in this case, being sustainable. Consumers may also purchase these products for their self-esteem or values and beliefs. Buying the product might make the consumer feel better about themselves, especially if they agree with the brands ethical values. Once the consumer has bought the product, they will have reached self-actualisation - feeling good in what they are wearing.
BOF, State of Fashion report stated, ‘consumers are becoming less brand loyal: among millennials, two-thirds say they are willing to switch brands for a discount of 30 percent or more.’ It seems consumers are becoming more and more price aware in a sense that they are looking for the best quality products for the best price. The report also said that consumers are more impacted by social media influencers and peer reviews more than anything else. As the lifespan of a human is becoming longer, ‘people will connect more based on hobbies, lifestyles and values
than age,’ so why the consumer is buying the product is becoming much more important as generations are beginning to blend. A future Stella consumer would still be aimed at customers with the same values as the brand, however it could quite literally be for anyone of any age. Whereas at the moment it seems as though it is mainly aimed at fashion savvy women who are earning enough money to buy the luxury products, menswear has now been introduced and it may be that the brand may attract a strong male audience.
What makes a brand a competitor for Stella McCartney, depends mostly on how sustainable and affordable they are. Reformation is a slightly more affordable sustainable fashion brand that has the same values and beliefs as Stella. Both are passionate about sustainability, giving them similar personalities and USP. With the brand being a close competitor to Stella, this could affect her brand significantly. H&M being a high-street brand means it is more affordable for consumers who cannot afford to shop the luxury sector. Although it is not solely sustainable, the brand has a sustainable range - H&M Conscious. However, it is simplistic and basic compared to the brands above. The reason for this may be that it is much more expensive to buy fully sustainable materials and manufacture garments. Although, bringing sustainability to the high street and making it more affordable might make customers conscious about sustainability. This could affect Stellaâ€™s brand consumers will go for the affordable option.
Gucci, being high in the luxury market, has recently bought out a no-fur promise meaning they have agreed to use no real fur in their products. This blends well with Stellaâ€™s values; however, their products are still not fully sustainable, meaning consumers who are eco-friendly will continue buying from Stella. Primark is on the map due to it being the opposite of what Stellaâ€™s brand tries to be. However, more consumers are likely to buy from there as it is the most affordable high-street brand and those not aware of sustainability will continue to purchase their products. Due to how uncommon sustainable fashion is, Stella will continue to succeed with her brand as consumers who agree will continue to buy from her brand. However, more brands are becoming sustainable due to high demand, meaning it may not be a unique feature for much longer.
Sustainable Not Sustainable
Political Brexit has caused labour costs to rise in Europe, meaning Stella will be paying more for production, increasing the price of the final product. The 2016 presidential election would have also affected the global shipping and communications with other countries.
The brand is global, affecting earnings depending on exchange rates. However, the brand being a multinational company can prevent unemployment around the world. Another problem may be that university funds are forever increasing. This means students, who are not currently a target market for Stella yet might have been in the future, are no longer potential future customers.
Consumers are always making lifestyles changes which gives Stella something to expand on when it comes to her sportswear line with Adidas. In 2013 Stella said, ‘I’m always designing what I want to wear,’ giving her a personal stand with consumers as she can relate to what they’re expectations are.
Technology The new way to buy online is through social media, especially with younger consumers. This way means that consumers are buying impulsively as well as socially, for example, Stella uses Instagram with a link to her website. If customers are browsing her Instagram, they are more than likely to visit the website too. Promoting through social media broadcasts new shows and collections, again bringing in younger audiences who may take interest in the brand or brand values. A fairly new social media platform, similar to Skype, called Periscope could be used for a brand to collect customers in one space and talk with them altogether.
Legal Although there are no specific laws causing issue to the brand at this moment in time, there may be in the near future.
Environmental High demand in sustainable products in fashion means Stella McCartney may have to re-brand in order to create new innovative solutions for the brand. Other brands have already began developing into sustainable companies â€“ Stellaâ€™s brand may be just one of many sustainable brands in the near future. In 2013 Stella also explained that all wool suppliers are required to show a documentation stating the sheep have not been harmed inhumanely.
Primary Rese I put together a short survey in order to see what others thought about the brand. These are a few of the results. I also asked who had purchased from Stella before, only one answered yes - Stella Fragrance. 19/22 people agreed with Stellaâ€™s values, 1/22 said they didnâ€™t have an opinion and 2/22 skipped the question.
- Customers will keep coming back due to the sustainability.
- Some garments can’t be found in store, limiting customers to ordering the products without trying them. If customers have made a trip to the store to try before buying, they might feel it is a wasted trip.
- Sustainable which not many brands are, giving it a unique trait. Also means the brand is well-known for doing good.
- Stella X Adidas gave the brand a new audience customers who hadn’t heard of it before may take interest through shopping at Adidas. - The brand ships globally meaning audiences from all over the world can buy her products.
- Due to the brands sustainability, the price of the materials means that the products are expensive, limiting the audience.
- Social media to promote upcoming collections/ campaigns targets younger audiences. - Website can be found in a variety of languages. Means it is diverse and global customers can use it with ease.
- Opportunity to grow globally by adding more stores worldwide. - Forever a high demand for sustainable products expensive to keep up. - Collaborations with brand conflict Stella’s strong morals - Adidas is not sustainable.
- Sustainability is becoming much more popular within the fashion industry, meaning it may not be such a unique trait much longer. - Customers may be put off by the idea of collaborations. - Eg, Stella X Adidas - not all customers may like Adidas or enjoy the idea of the two together.
- Did her father help her success? - In 2014, she admitted to not being fully sustainable.
“I’m a fashion designer, and I have to create desirable, luxurious products that women are going to want, whether they’re a little more sustainable than the other or not,” she says. “The main thing is, they need to want them.” - Stella McCartney Eliza Brooke (2016) Fashionista
- Rising costs for raw materials, meaning the expense of materials alongside manufacturing could put the price of garments up. This could possibly lose customers who cannot afford to buy from this brand.
> A home range may also be an interesting collection to explore as once again, not many luxury brands have this option and demand for sustainable products is high.
> A sustainable plus-size range to bring in a new audience. Plus-size ranges are uncommon in the luxury sector; therefore, the brand is accommodating to a new market. Due to more brands becoming sustainable, this could keep the brand unique.
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The beliefs I was raised with - to respect animals and to be aware of nature, to understand that we share this planet with other creatures - have had a huge impact on me. - Stella McCartney