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FASHION FADES. ONLY STYLE STAYS THE SAME.

-CHANEL

BCBGMAXAZRIA Walks Italy’s Runways

Kirin Arnold

Megan Edwards

Alyssa Steffen

Lisa Zarate

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Executive Summary

With Milan’s status as one of the fashion capitals of the world,

BCBGMAXAZRIA has an incredible opportunity to expand into Italy.

BCBGMAXAZRIA already exists in the other four fashion capitals, London, Tokyo,

New York and Paris, making Milan the designer’s next logical step. Through research,

the group found that fashion is a national passion as Italians greatly value appearances

and attitude. With a well-developed fashion industry, designers gain respect with a

presence in Italy. BCBGMAXAZRIA must establish itself in Italy relaying its consistent

world-wide message of a high-fashion brand that strives to make women look and feel

beautiful.

Italian companies advertise in a variety of media, from the most popular

newspapers and magazines to flyers, window displays and movie theaters.

BCBGMAXAZRIA will target Italian women between the ages of 25 and 40. These

women pay incredible attention to fashion and view it more as a necessary lifestyle than

an option.

Based on these findings, the group suggests opening two BCBGMAXAZRIA

stores in northern Italy. These openings will be supported by participation in Milan’s

Fashion Week, advertisements in relevant newspapers and magazines, public relations

efforts centered on store openings and events, a cause marketing partnership and social

media efforts.

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Situation Analysis

Client

French designer Max Azria founded BCBGMAXAZRIAGROUP in 1989.

Several lines comprise the group, including BCBGMAXAZRIA, Max Azria, Max Azria

Atelier, BCBGeneration, Hervé Léger, Max Rave and maxandcleo. Azria has presented

his designs at New York’s Fashion Week since 1996. Worn regularly by such well-

known names as Sarah Michelle Gellar, Angelina Jolie, Eva Mendes and Rachel Bilson,

Azria has established his designs as luxurious, high-fashion pieces in the United States

and around the world.

Azria based the name BCBG on “bon chic, bon genre,” which is a Gallic acronym

meaning “good style, good attitude.” Parisians use this common term synonymously with

preppy or Euro riche. “I chose that name because that’s the way I would like to see

women, very chic, and with good style,” Azria said. “Because many times I said, you can

wear the best dress in the world, but if you have a bad attitude, I hope that you don’t buy

my dress. Good attitude is really a part of your clothes.”

Max Azria stores can be found in countries such as Bahrain, France, China, Japan,

Lebanon, Kuwait, Russia, Spain, Saudi Arabia, Switzerland, United Arab Emirates,

Venezuela and more. (“BCBGMAXAZRIAGROUP”) Advertising campaigns for

BCBGMAXAZRIA typically express high energy, bright color and classic beauty with a

modern twist.

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Shot from BCBGMAXAZRIA Fall 2009 ad campaign (frillr)

Environment

Home to more than 58 million people, Italy extends south of Europe into the

Mediterranean Sea. Italian is the first language of ninety-three percent of the country’s

inhabitants. The majority of the population considers itself Roman Catholic, although

Protestant, Jewish and Muslim communities continue to grow. (“Kwintessential”)

Italians place incredibly high value on physical appearance. Clothing can suggest

everything from background and social status to education. (“Kwintessential”) As a

result, Italy boasts a well-developed fashion industry. A designer’s presence in the

country can elevate his or her status by association with names such as Valentino, Dolce

& Gabbana, Armani, Diesel, Prada and Bvlgari (Ghosh).

Northern Italians move on business deals much quicker than those in the south.

Southern Italians prefer to develop a relationship with business partners

(“Kwintissential”). Commercial, financial and industrial organizations typically flock to

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northern Italy, giving it twice the per capita income of southern Italy. Franchisers also

focus on the country’s northern end. The U.S. Department of Commerce lists fashion as

one the Italian sectors with the most sales potential, along with services, hotels and

personal items. (U.S. Department of Commerce)

Italy adopted the Euro as its official currency. According to the U.S. Department

of Commerce, “Firms operating in the Italian retail distribution sector find that they must

invest large amounts of money in new techniques, management, research, media

promotion, and equipment.”

Small family-owned stores make up most of Italy’s shopping options, but

shopping malls and specialized stores continue to gain popularity (U.S. Department of

Commerce). However, the U.S. Department of Commerce still suggests working with a

local Italian entity in some capacity because of the importance of personal relationships

and language in the Italian business community.

Direct mail marketing can prove problematic due to common delays with Italy’s

postal system. Electronic commerce continues to expand rapidly in Italy, playing catch-

up to the rest of Europe. Newspapers and magazines comprise 70 percent of total

advertising in Italy, followed by radio and television at 22 percent, movie theaters and

other methods.

The Italian market requires high-quality customer service and support. Marketers

must be willing to go the extra mile in stocking products, staying in constant contact with

any local partners, and providing plenty of service after the sale where necessary. (U.S.

Department of Commerce) The Italian government strictly regulates discounts to avoid

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unfair competition. The largest sales begin January 15 and June 15. Sales generally do

not occur outside the designated time frames. (“Eurocheapo”)

Audience

Hofstede’s cultural dimensions offer invaluable insight into unfamiliar societies.

Italy scores around 45 in the power distance category, suggesting that lower ranking

members of an organization feel like they have some say in decisions. The country’s

individualism score passes 70, making this its highest scoring category. This means

Italians look after themselves and value individual success but still feel ties to the family

unit. The masculinity score, around 65, indicates a tendency toward the traditionally

masculine values of assertiveness and competitiveness rather than traditionally feminine

values such as modesty and caring. Italy’s uncertainty avoidance score approaches 70.

This suggests that Italians prefer structure and avoid situations in which they cannot

predict the outcome. ("Geert Hofstede Cultural Dimensions")

Hofstede’s Cultural Dimensions – Italy scores ("Geert Hofstede Cultural Dimensions")

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Italian consumers focus heavily on fashion and first impressions. They often

judge others on their appearance and unconsciously gauge someone’s age and social

status before even speaking with the person. They strive for the idea of “bella figura,” or

good image. This idea applies to clothing choices, confidence, demeanor and style.

(“Kwintessential”) Italian women will readily sacrifice comfort for the sake of their

appearance (Ghosh).

BCBGMAXAZRIA will target Italian women between the ages of 25 and 40.

Young enough to appreciate Azria’s hip young designs but old enough to afford designer

products, these women match BCBGMAXAZRIA’s personality perfectly.

Why Action is Necessary

Northern Italy hosts some of the biggest names in the fashion world. Combined

with the Italian population’s addiction to high fashion, this makes Italian stores a must for

any designer.

Globalization Strategy

As an originally French designer, Max Azria’s image lends itself to the

international fashion stage. Azria described fashion as a global idea in a recent news

release. “I don’t believe anymore in Europe style or American style, even Asia style,”

Azria said. “Based on the very fast communication that we have today, and a lot of

people traveling south, north, east, west, I think today’s woman is now a woman of the

planet. It used to be, you go to Japan and you see another planet. Today, no. With the

television, Internet, newspapers, the entire planet gets educated at the same time in the

same way. So everybody has only one language in fashion – it’s fashion” (“In The

News”).

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However, some aspects of the business do need to be localized for introduction

into Italy. Individual relationships must be developed with any partners

BCBGMAXAZRIA chooses within the country. Italians value their language, so all

materials must be accurately translated. If the company adds copy to any print

advertisements, the language must be triple-checked for the message’s accuracy within

the Italian context.

Big Idea

BCBGMAXAZRIA strives to make women all over the world look and feel

beautiful. Italian women should wear BCBG because the clothes reflect an attitude of

spirit and sensuality, leaving a lasting impression of elegance and sophistication.

Media Analysis

Advertising in Italy breaks down into the following categories: 35 percent in

newspapers, 35 percent in magazines, 22 percent on radio and television, two percent in

movie theaters and six percent in other media such as flyers, show windows, posters,

billboards and trade fairs. (U.S. Department of Commerce) The following media details

come from the U.S. Department of Commerce.

Newspapers

Around 12 Italian newspapers reach a national audience. The most popular media

for product advertisements, newspapers hire agencies to manage advertising sales and

placements for them.

Magazines

Consumers can purchase about 230 different Italian and international magazines.

Around 20 of them have large audiences in the country.

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Television

Government-regulated Radiotelevisione Italiana (RAI) operates three public

television networks in Italy. They run commercials throughout the day. Four nationwide

private stations and 100 local private stations also exist.

Radio

RAI also operates three radio stations that sell advertising spots. Additionally,

private national stations hundreds of private local radio stations broadcast regularly.

Movie Theaters

Unlike in the United States, Italians run advertisements run during intermission at

thousands of theaters. Movies reach a varied audience nationwide.

Posters and Billboards

Specialized agencies orchestrate the use of posters and electric signs for

advertising purposes. Specific regulations and taxes govern these types of advertising, but

they can be placed on walls, in streetcars and buses, along streets and near other methods

of transportation.

Show Windows and Flyers

Italian shops regularly utilize window displays to attract consumers and show

prices. They also use gifts and free samples to motivate consumers to enter a store.

Trade Fairs

Trade fair events attract buyers interested in a particular market and allow

companies to measure acceptance and pricing of new products as well as the opportunity

to observe the competition. As a cost-effective method for entering a foreign market,

trade fair exhibitions can help companies find an agent, distributor or representative.

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IMC Plan

Stores

BCBGMAXAZRIA will initially open two stores in northern Italy: a flagship

store in Milan’s Golden Triangle, arguably Italy’s fashion center, and one store in

Florence (“DolceVita Fashion”). Depending upon the success of these stores, the next

two will open in Venice and Rome. All four of these cities function as fashion

powerhouses in Italy.

Map of Italy

Milan Fashion Week

BCBGMAXAZRIA will participate in Milan’s Fashion Week. Fashion Weeks

provide designers, brands and/or “houses” with the opportunity to show their upcoming

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seasonal collections at a week-long industry event. Fashion Week allows buyers, fashion

editors, and fashionistas from around the globe to view designer collections at runway

shows and be “in the know” about the latest trends of the season. Although held all over

the world, fashion capitals New York, London, Milan and Paris host the most prominent

Fashion Weeks. Milan’s Fashion Week lets the industry know what’s “in” and what’s

“out” for the season. Attending this event allows BCBGMAXAZRIA, along with other

designers, to achieve and maintain a presence in Italy’s fashion industry.

Partnerships

Because Italians value strong relationships and trust in business situations,

BCBGMAXAZRIA will partner with a charitable women’s organization with similar

stature to the Susan G. Komen Foundation in the United States. (“Kwintessential”) The

company will sponsor a benefit fashion show in Milan to raise money, attract media

attention and earn the respect of the female Italian population. BCBGMAXAZRIA will

also secure additional sponsors for this event, creating more partnerships for the future.

Social Media

The company’s social media specialist will create and update a

BCBGMAXAZRIA Italy Facebook page similar to the pages that currently exist for

BCBGMAXAZRIA France, BCBGMAXAZRIA Cairo and BCBGMAXAZRIA in the

United States. The page should present pictures of the new stores and from the Milan

Fashion Week.

Public Relations

BCBGMAXAZRIA will work with an Italian public relations agency to attract

media attention for the new store openings. Pitches will emphasize Azria’s stature in the

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international fashion world and the attitude his styles portray. The heavy use of

newspapers for product marketing implies that Italian consumers often read these

newspapers. Thus, generating stories in these publications will increase awareness of

BCBGMAXAZRIA in Italy and provide a third-party endorsement.

Advertising

As the main means of product advertising in Italy, newspapers and magazines will

be utilized in the BCBGMAXAZRIA introduction. Research must be collected to

determine which newspapers and/or magazines best fit the campaign’s goals. Since

Italian newspapers do not maintain their own advertising departments,

BCBGMAXAZRIA must place ads with the agency commissioned by each individual

publication.

Research Recommendations

Before taking further action on any individual tactics, the group suggests additional

research in the following areas of Italian culture:

The meaning of specific colors

Store designs, layout and atmosphere

Exact locations for stores in Florence, Venice and Rome

Specific newspapers and magazines in which to place advertisements

Local advertising and business operation regulations

Selecting a charitable women’s organization to partner with for cause marketing

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Sources

"About BCBGMAXAZRIA." BCBGMAXAZRIAGROUP. 2009.

BCBGMAXAZRIAGROUP, INC., Web. 30 Nov 2009.

<http://www.bcbgmaxazriagroup.com/fall2009/index.php?fc=about&lnt=bmF2>.

"BCBG MaxAzria Fall Winter 2009 . 2010 Ad Campaign." frillr. 2009. Uropa Media Inc,

Web. 30 Nov 2009. <http://frillr.com/?q=node/14791>.

Ghosh, Damyanti. "Italian Fashion and Beauty - Latest Trends". Life in Italy. 11/26/09

<http://www.lifeinitaly.com/fashion>.

"Geert Hofstede Cultural Dimensions". SigmaTwoGroup.com. 11/22/09

<http://www.geert-hofstede.com/hofstede_italy.shtml>.

"Italy: High Fashion at Half Price." Eurocheapo. 30 Mar 2007. Over There Interactive,

Inc., Web. 30 Nov 2009. <http://www.eurocheapo.com/blog/tag/italy-fashion-

sales>.

"Italy - Language, Culture, Customs and Etiquette." Kwintessential. 2009. Web. 28 Nov

2009. <http://www.kwintessential.co.uk/index.php>.

"It's a Max World." In The News. 20 Jul 2009. BCBGMAXAZRIAGROUP, Web. 30

Nov 2009.

"The Streets of Fashion - Milan: The Golden Triangle." DolceVita Fashion. DolceVita,

Web. 30 Nov 2009. <http://www.dolcevita.com/fashion/fastreet/mi/fastrmi.htm>.

U.S. Commercial Service, "Italy - Marketing U.S. Products and Services". United States

of America Department of Commerce. 11/24/09

<http://www.buyusa.gov/italy/en/marketing_us_products.html>.