Case Study

Branding – MK2012

By Sara Amin Omran (09039809)1

Table of Contents

1.0 Introduction.................................................................................................................................................3

2.0 What factors comprised the equity in the Ralph Lauren brand?................................................................4

2.1Ralph Lauren CBBE Model.......................................................................................................................4

2.1.1Salience Dimension.......................................................................................................................... 4

2.1.2Brand Performance and Brand Imagery...........................................................................................4

2.1.3 Brand Judgements...............................................................................................................................4

2.1.4Brand Feelings...................................................................................................................................... 5

2.1.5Brand Resonance..................................................................................................................................5

3. Evaluate the role of brand association in the company’s success................................................................6

3.1 Secondary Brand associations;...............................................................................................................6

4 Elaborate whether you agree with the Ralph Lauren’s brand extension decision to Rugby.........................7

4.1 Rugby Ralph Lauren beginning...............................................................................................................7

4.2 Points of Parity and Points of difference................................................................................................7

4.3 Rugby Ralph Lauren successful or not?..................................................................................................8

5. What recommendations would you give the company regarding stewardship of their brand in the future?..............................................................................................................................................................9

5.1 Perceived Risk.........................................................................................................................................9

5.2 The Ralph Lauren brand......................................................................................................................... 9

5.3 Consistency............................................................................................................................................ 9

5.4 Innovative...............................................................................................................................................9

5.5 Brand associations..................................................................................................................................9

5.6 Criticisms.............................................................................................................................................. 10

5.7 Consumer service................................................................................................................................. 10

6. Conclusion.................................................................................................................................................. 11

7. References;.................................................................................................................................................12

8. Appendix.................................................................................................................................................... 17

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1.0 Introduction

“I’m not designing clothes; I’m creating a world” Ralph Lauren.

Ralph Lauren is a well established elite company; which according to Interbrand1; it ranked 24th in

the U.S.A market in 2010. Ralph Lauren expanded his company to more than just selling clothes.

The company also sell; house wares, luggages and a range of other products. However, Ralph

Lauren, unlike most other companies did not suffer from brand image dilution; the image was only

strengthened.

In the following document one may see how the brand is enhanced, managed and how Ralph

Lauren managed to build a strong and positive brand equity. (www.eurbanista.com)

1 See appendix3

2.0 What factors comprised the equity in the Ralph Lauren brand?

2.1 Ralph Lauren CBBE Model

2.1.1Salience DimensionDepthThe Ralph Lauren brand offers a world of elegance and a lifestyle of “high-end” status. Since the 1968 it has been positioned in the elite market and has been consistent since. Ease or Recall and brand awarenessMoreover, Ralph Lauren represents strong brand awareness among people around the world. This is as Interbrand, a branding consultancy company, found that Ralph Lauren ranked 95th among other brands all over the world – this led to a 6% increase in Ralph Lauren’s brand value. (2006) this shows that the brand is well recognized and easily recalled.BreadthWhen a person buys a Ralph Lauren item it is more than just buying a high quality item, as according to Scott Davis (2001 - Brand Asset Management), “Lauren apparel becomes part of who the customer is by striking a deep emotional chord with that customer”, this shows that consumers purchases' situations is more than when just buying a Ralph Lauren item, but it is the quality and prestige it adds to their quality lifestyle.

2.1.2Brand Performance and Brand Imagery

Ralph Lauren brands are one of the most successful and well-know lifestyle brands.Looking at Joseph Hancock, Ralph Lauren centred his attention on enduring fashion rather than on impulsive couture. This is shown by looking at his style where luxury and individuality are the main focus rather than stunning trends. Furthermore another element of Ralph Lauren brand is “quality, high-grade materials and exclusive designs” (http://bene.com), also Ralph Lauren has been selling clothes for more than 40 years and showed consistent a timeless sense of style and design. However, it also has a high price tag attaches which also serves another aspect of the brand image and identity – as not everyone afford exclusivity. Analysing this brand one may come to a conclusion that it emphasis on; goal and long term oriented and it is adaptable2 to changes in the market; launching an iphone application where users experience the “Glamour’s Ralph Lauren collection” (www.docstoc.com).

2.1.3 Brand Judgements

Relating brand judgements to Ralph Lauren, one may say that people are attached to it. This is not just because it gives a high status but also, because of quality “I still wear Ralph Lauren shirts which were bought about 5 years ago3“(www.dooyoo.co.uk)

2 See appendix for adaptability examples3 See Appendix

4

Moreover another factor that influences the judgement dimension is that throughout the 1990’s although Ralph Lauren continued with brand expansion, he still focused on high-quality products, which embrace the full lifestyle offering (www.eurbanista.com). This also reflects brand credibility as Ralph Lauren was consistent throughout the whole products extensions. One may say that Ralph Lauren enhances the value of uniqueness; this is shown also in the early stages of his brand – designing ties that were different from what the market was producing back then and selling them at a relatively high cost (Joseph Hancock). He wanted to show that price is quality, and that he enhance the value of quality. This made Ralph Lauren stand as a brand which consumers will set in mind more different than others.

Judgements variables How does Ralph Lauren meet these variables?

Brand Quality Focused on quality through all product and brand extensions

Brand Credibility High-Quality items; shown in costumers’ feedback

Brand Superiority Portray a specific “happy” and “elite” lifestyle

2.1.4Brand Feelings

Ralph Lauren portrays a lifestyle rather than just a trend. This is shown in the brand’s adverts where it portrays perfect people in perfect environment (YouTube- Ralph Lauren commercial 2010) Moreover, Ralph Lauren, was one of the first designers to use “VIPS” in his adverts, these are testimonials that lived the way he had designed which therefore made it real for people watching these ads (Joseph Hancock.). Therefore one may say that an emotional value attached with the brand is that of a specific lifestyle. Which can also leads to the value of social approval and self –respect.

2.1.5Brand Resonance

The last stage in the CBBE model is brand resonance and it is only when the consumers reaches this step that significant brand equity is present. (Keller) One may say that as Ralph Lauren focused on being distinctive from the early stages of his business led to the key success of the brand; as it is vital that a brand can possess individuality and differs from competition in order to keep target groups coming back. Moreover, a study conducted in 2005 by ACNielsen states that Ralph Lauren is the world’s most popular designer. ACNielsen found that 16% of global internet consumer purchase Ralph Lauren; where North Americans are the most loyal; Ranking number 1 in costumer choice (http://kr.en.nielsen.com).This shows the high level of loyalty Ralph Lauren has with his customers. Furthermore, Ralph Lauren offers good customer service on his website; information about products the company offers4 (www.ralphlauren.com). When it comes to engaging consumers, one may say that Ralph Lauren does enhance this value; as people purchase Ralph Lauren items to live in a particular lifestyle. Therefore by adopting this lifestyle people are at one with the brand.

4 &3 See Appendix 5

3.0 Evaluate the role of brand association in the company’s success.

Ralph Lauren, founder and CEO, (www.infomat.com/) was able to distinct his brand identity which is expressed in design and implementation. A part of the company’s success is the public association of Ralph Lauren himself with the brand. His appearance in his own commercials, his Colorado ranch, his vintage cars collection and other attributes all contribute to a high profile life style of elegance. This has lead to the firm’s success as the company was able to market everything in this lifestyle; from ties to golf balls, also with the help of the brands’ logos; Polo and Rugby where he created associations with high class sport and that is why people associate the brand with a luxurious and elite status. Through licensing, Ralph Lauren appears most of the company’s products5. Therefore one may say that Ralph Lauren himself is the light behind his firm’s success.

Another part of Ralph Lauren’s association success is the distinctive ability to appeal to more than just one class of society. This was achieved by separating out the core business to target other classes of society. For instance, at one end Ralph Lauren has Purple label and black label; which are associated with high-end British and Italian influences. As a result these labels are exclusive and they are sold in Ralph Lauren stores as well as top department stores such as Bergdorf Goodman (www.businesswings.com). On the other end there are other labels offering budget alternatives; use of less expensive materials.

3.1 Secondary Brand associations;

Secondary Brand associations are also important for Ralph Lauren. Ralph Lauren has been more “society” concerned, and one may see this through many philanthropic initiatives. In the company’s website, there are a number of events which Ralph Lauren contributed to. Examples of such activities is; Pink Pony, a designed t-shirt to sell and distribute the money to breast cancer education, treatment and research (Ralph Lauren CORPORATION).

Another secondary association Ralph Lauren has is an “active lifestyle and being healthy” this is as the company sponsors sporting events such as; the championship of Wimbledon; which is a tennis tournament and is considered as one of the most prestigious. (marketingweek.co.uk). Ralph Lauren was the first designer in the Championships. Ralph Lauren’s Polo designed uniforms which recalled an era of elegance in tennis. (www.wimbledon.org)

Ralph Lauren also created associations through the use of celebrities; such as Tyson Beckford and Naomi Campbell (http://www.modelinia.com). The use of Beckford in the ads made it possible for Ralph Lauren to stretch his concept of “lifestyle merchandising to a new ethnic market” (Joseph Hancock)

5 See Appendix 6

4.0 Elaborate whether you agree with the Ralph Lauren’s brand extension decision to Rugby.

Ralph Lauren has been successful throughout his year operating in the luxury clothing sector as a result the company is well-established with a strong and positive brand equity, thus launching another sub-brand would generate sales, as people had already a positive perception related to Ralph Lauren brands. However in order to see whether or not it was a good move, one needs to analyse the situation;

4.1 Rugby Ralph Lauren beginning

Ralph Lauren’s Rugby was launched in 2004 and is related to the legacy of real prep into a diverse “irreverent collection for young men and women” aged between; 16 to 25 (www.fashionmodeldirectory.com).This fact also shows Ralph Lauren’s adaptability towards the market due to the increase of generation Y. (www.businessweek.com) Looking at the table below one may see some of the different attitudes of Generation Y when compared to generation X.

Generation X ( 1965 to 1976) Generation Y ( 1977-1994) Luxury is an indulgence Luxury is investment

Less open minded on luxury brands More open minded on luxury brandsLook more for quality Look more at exclusivity

(Information gathered from Sterling president of Chatter a market research company.)

4.2 Points of Parity and Points of difference

Relating to Points of parity which is a vital issue when launching a sub-brand, Ralph Lauren; still kept the “high-end” status related with his core-brand values. As Keller states that successful brand equity in a brand extension is achieved when the salience, uniqueness and favourability of a parent brand (Ralph Lauren) associations are consistent in the extension (RUGBY) context; still shows a luxury lifestyle. This may be shown in the ads for Rugby Ralph Lauren; it still uses “perfect people” in a happy environment (http://www.rugby.com/); which shows a high class status. Moreover looking at the Points of difference, Ralph Lauren successfully was able to target a different demographic group “generation Y”, where brand “associates wear dreadlocks, colored hair, tattoos and even body piercings which differed from the rivals Abercrombie and Fitch” (Joseph Hancock) Moreover the iconic logos, vintage patches and spirited crests gave Rugby a bold, one of a kind frame.

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4.3 Rugby Ralph Lauren successful or not?

Brand extensions bring about confusion among customers; what each line stands for. This is natural as the company has produced several numbers of sub-brands. Moreover introducing a new sub-brand in a vertical extension, it may lead to the cannibalization of sales of the parent brand. However, according to 2010 Ralph Lauren’s corporation annual report “Rugby.com averaged 370,000 unique visitors a month and acquired approximately 40,000 new customers, resulting in approximately 60,000 total customers “.

Looking at all the odds, one may say that, Rugby Ralph Lauren extension was successful and lead to a good volume of sales and enhanced the parent brand equity.

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5. What recommendations would you give the company regarding stewardship of their brand in the future?

5.1 Perceived RiskMost of fashion companies are branded around the designer’s personality. Therefore when they die the company finds it hard to maintain the same “brand” personality. In the company’s annual report the death of Ralph Lauren is a perceived risk, however, his son; David Lauren6 “has been integral part of his father’s business”, therefore the company may use D.Lauren as an asset.

5.2 The Ralph Lauren brand

Ralph Lauren communicates the “prestige” image across all of his marketing activities. Being distinctive and unique, led his brand to one of the most well-known companies across the world. The company should enhance customer loyalty; as it is the most important aspect to luxury manufactures; as in a world bombarded with advertising campaigns and a high number of fashion messages a brand name is vital, therefore Ralph Lauren brand name and logos are an important weapon. Study shows that consumers are relying more on established brand names and the images they convey when purchasing certain items (Armstrong/ Kotler). As a result Ralph Lauren brand has an advantage in the market.

5.3 Consistency

Managers of the company should always promote the same level of lifestyle Ralph Lauren promoted. Even with all the products extensions and different price points. This is an important factor to the company, as they target different markets differently, therefore in order to remain competent they should follow the footsteps of Ralph Lauren; what he had created since he started the company.

5.4 Innovative

Looking closely at what the market wants and researching on creating new wants and needs, managers of Ralph Lauren should be innovative. This is as many major brand manufacturers such as Tommy Hilfiger, add new lines to their brand, as it is already establish or license the brand with various products which will make it possible to capitalize profit. Therefore if a product is produced and have Ralph Lauren brand name on it, it is assumed that it will sell.

5.5 Brand associations

Ralph Lauren is also well associated with sponsoring sports and charity events (3.2). The future management of this company should keep on focusing on sponsoring such events as it is an important association consumers have relating to Ralph Lauren brands.

6 See Appendix9

5.6 Criticisms

One of the main criticisms the company has been faced; is that Ralph Lauren has been accused of tampering with a models’ photo7; promoted a bad reputation, As the model Hamilton states, Ralph Lauren contradicted what the company stands for; health and sports (today.msnbc.msn.com). In reply to this, Ralph Lauren apologized through the means of media (www.dailymail.co.uk).

Establishing a brand, and building positive brand equity as Ralph Lauren did, it is quite impossible to break it down – through just one point of negativity. Therefore one must say the future of Ralph Lauren lies in whether or not the brand’s core-values will be enhanced. However managers should avoid such mistakes as it can lead to a bad brand reputation.

5.7 Consumer service

What Ralph Lauren should emphasis on more is consumer services. This is as complains can damage his brand reputation. Moreover, looking online Ralph Lauren does not have many forums and other websites. The company should focus more on creating a better online “community” for their loyal consumers – as internet sector has been increasing throughout the years – people are spending more time at home and invest in more of “in-house” activities such as web browsing. (Armstrong & Kotler)

7 See Appendix10

6. Conclusion

Ralph Lauren is a company with a strong brand focus, and has been successful throughout the years.

However according to 2009 Annual Report, the company is still focusing on growth and to extend the

brands, by expanding the geographic coverage by “strategically acquiring or integrating select licenses

previously held by our licensees and enhancing our operations” -2009 PRL Annual Report.

Therefore the adventures of Ralph Lauren will not stop here, as the management is still seeking to expand

and develop and portray the “American lifestyle” all over the world.

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8. Appendix

1. According to Interbrand Ralph Lauren Polo, ranked 24th in 2010, moreover interbrand says that; the brand’s lifestyle appeal continues to allow Ralph Lauren to develop and expand.

2. Adaptability examples

Case Study; When Ralph Lauren used to use his wife Ricky Lauren and her colleague Buffy Brrittella

as the models for the garments; a problem arose as the models where size 2, therefore most

women could not fit their arms in the clothes. Ralph Lauren took notice of this issue and re-acted

accordingly.

Using Beckford in his ads Ralph Lauren adapted to different ethnicities in the market. This is

because this market had a big spending power.

Ralph Lauren noticed the challenge of internet, and how he could have adapted towards it. As a

result he launched a website in 2000, were consumer could buy online.

The technological combination continued with the creation of the virtual Window shop; a touch-

screen monitor on the window of “Madison avenue” store which allowed customers to shop

“online”.

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3. A costumer commented on the quality of Ralph Lauren, where she is stating that his clothes are

much better than the rivals; such as Armani.

4. Consumer Complaint;

According to one Ralph Lauren’s consumer, she was not taken seriously, after purchasing an item for her

husband. She tried several times contacting Ralph Lauren’s company. However no one got back to her.

5. Help Services available online

In the picture bellow, one may Ralph Lauren’s website. The website offers help regarding several problems

relating to costumers. One may say that this website is easy to use and quite understandable – people will

not find it difficult to use – user friendly.

(Ralph Lauren’s website)

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6. A list of products sold by Ralph Lauren Corporation;

Ralph Lauren operates in; Wholesale, Retail and Licensing

Apparel products: men’s, women’s and children clothing

Accessories: footwear, eyewear, jewels, hats, belts, leather goods; handbags and lug gages.

Home products: bedding, bath products, furniture, fabric and wallpaper, paint, tabletop, giftware.

Fragrance: Romance, Polo, Lauren, Safari, Ralph, Black label brands.

Labels owned by Ralph Lauren Corporation;

PRL remains a flexible business model, integrating retail, wholesale and licensing to most effectively

provide the world of Ralph Lauren to consumers. The company’s brand names include, among others:

Ralph Lauren, Polo by Ralph Lauren, Ralph Lauren Purple Label, Black Label, Blue Label, Lauren by Ralph

Lauren, Polo Jeans Co., RRL, RLX, Rugby, Ralph Lauren Childrenswear, Ralph Lauren Baby, Ralph Lauren

Home, Lauren by Ralph Lauren Home, American Living, Chaps, and Club Monaco

7. Tampering with a model’s photo Ralph Lauren fired a model for being “too fat”. However Ralph Lauren has been faced with a huge number of criticisms as he tampered with the model’s photo, to make her look skinny. Below one may see the model as it was shown on one of the RL magazines.

8. David Lauren – Ralph’s oldest son.

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David is in charge of Polo Ralph Lauren’s marketing and communications. He was senior vice president at

the age of 37 years. He was the one that brought polo.com towards digital fashion initiative- which led to

success of the company.

David Lauren is an asset too, as he was grown up within the Ralph Lauren lifestyle and experiences the

American rituals.

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