Retrieved:October29,2007,from:http://upload.wikimedia.org/wikipedia/de/thumb/7/
73/Hugo-Boss-Logo.svg/800px-Hugo-Boss-Logo.svg.png
Chapter 1- an overview of Contemporary
Marketing
First I would like to use this first chapter to introduce you with fashion house Hugo Boss AG. Hugo Boss AG is founded in 1923 in
For the years they are advertising in women and man magazines, on television (only perfumes), or are sponsors for the dynamic sports, and they are sponsors of big fashion events all over the world. That kind of advertising tells us that their target customers are people with high incomes, young and middle age, business and sports people.
Because of their customers and changes on market, Hugo Boss AG divided their cloths into two general brands: Hugo and Boss brands (Boss image is transported by four independent and distinctively positioned lines: Boss Black, Boss Orange, Boss Selection, and Boss Green) so that every brand can concentrate separately to their target market. Every brand is also advertised and selling differently. They are distributing their cloths in their stores, and their stores are opened in the best locations all over the world.
Hugo Boss is a follower of the marketing philosophy because their objective is to satisfy the needs of the costumers, so they are adapting to everyday changes as quickly as possible.
References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.
Author Unknown (2007). Group. Hugo Boss/Company/Brand Review.Retrieved October 29, 2007. from: http://group.hugoboss.com/en/markenuebersicht.html
Author Unknown (2007). Group. Hugo Boss/ Company/Corporate file.
Retreived, October 29, 2007, from: http://group.hugoboss.com/en/unternehmensprofil.htm
Chapter 2- The Global Marketing
Environment
Throw this chapter I will try to carry out the global marketing environment that can affect marketing activities in Hugo Boss AG. I will focus more on competitive environment because competition is the most important in fashion industry.
Hugo Boss is in fashion industry, and they have lots of brand competitors, such as Armani, Max Mara, etc. Because of great number of competitors, Hugo Boss is designing cloths for the most varied target groups, the most exacting demands and for every occasion, so that they are able to maintain their market leadership even today. They are dictating new trends and adjusting like their competitors to consumers. Because the competition is big, they are not advertising to all market, but they divided Hugo Boss into two brands, that create their target markets, Hugo and Boss, and these brands are keys to their success.
When we speak about the culture and changing roles, Hugo Boss adopted in that changes also. First Boss brand had only classical men’s business wear, but during the time women become to work more, and they adopted by providing the cloths for business women too.
When we talk about the technological environment, Hugo Boss is offering a web page http://www.hugoboss.com/ where all fashion lovers can sit at home and watch the last fashion show on internet. Also they have developed E-business, so from 2001 they are doing business to business over the internet, and that was showed as a success, and even today it is.
References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.
Author Unknown (2007). Group. Hugo Boss/Company/Brand Review.Retrieved October 29, 2007. from: http://group.hugoboss.com/en/markenuebersicht.html
Author Unknown (2007). Hugo Boss. Retrieved October 29, 2007. from: www.hugoboss.com
Chapter 3- Marketing's Strategic Role in the
In the following sentences I will explain terms like vision,corporate objectives,
corporate strategy decisions, market scope, and an international strategic orientation in the case of Hugo Boss AG.
Hugo Boss vision is to be the global market leader in superior fashion। To accomplish that vision, they are planing to open more stores in the world (now they have 1,000 stores operating worldwide and more than 5,700 other partners POS venues ). Also they have financial objectives sales growth, profit growth and they made it happened by offering suppliers on-line
orders, giving license (to Protect & Gamble for fragrances), etc.
Hugo Boss AG is following few strategies, when it comes to corporate growth। They are doing market expansion strategy by selling the same products to new market (Croatia,
Yugoslavia, Japan,...), also with Protect and Gamble (who creates their fragrances) are doing
diversification strategy, and of course every season they are doing product expansion strategy,
that is marketing new cloths to the same market.
When we talk about market scope, they have broad market scope। They are selling cloths (from business suits to sportswear,), accessories(shoes, bags,).
At the end I would like to say something about international strategic orientation of Hugo Boss. Hugo Boss is doing standardized marketing strategy because they develop and implements the same product, price, distribution and promotion. I have been to Hugo Boss in
References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.
Author Unknown (2007). Group. Hugo Boss/ Company/Corporate file.Retrieved,October 29, 2007, from: http://group.hugoboss.com/en/unternehmensprofil.htm
Chapter 5- Business-to- Business Markets and Buying Behavior
Throw this chapter I will try to explain what is business-to-business and connection
between that term and Hugo Boss.
A primary elements of business-to-business buying is selection of suppliers, sources, or
vendors. Hugo Boss AG in their headquarters is designing the collections and developing of
groundbreaking technologies. But they are buying fabrics from China and India, and even
produce cloths (for example in Tunisia or China) by other suppliers, that means that they are
outsourcing. But they also supply more than 6,000 stores all over the world. Because they are
such a big company, they have globally networked infrastructure that allows them to
communicate with retailers and factories immediately. Also what is most important with that
kind of infrastructure, Hugo Boss is capable to deliver cloths within 24 hours in Germany and 48
hours within Europe.
Also very important thing in business-to-business is trust. Also the trust is very
important for Hugo Boss because if their suppliers delay or produce fabric that is not high
quality they could have problems with finishing product and with customers also, who are at the
end the most important. So, before they even hire some new suppliers, they first negotiate with
them.
References: Author Unknown. The Hindu business line/Industry and economy/Textiles.
Retrieved:October29,2007.from:http://www.thehindubusinessline.com/2007/09/03/stories
/2007090351720300.htm
Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E.
New York:The McGraw-Hill Companies, Inc.
Chapter 7- Market Segmentation and Targeting
Now, I would like to say something about market segmentation of Hugo Boss, target markets, also I would say something about their segmentation strategy .
Hugo Boss years ago defined their market segmentation. Business man and women, with high income, who both likes high-quality cloths (that is produced with best material), likes to be trendy and fashionable, and likes to spend a lot of money on their outfit are Hugo Boss AG market segmentation.
After market segmentation, we have to do targeting. With their standardized champagnes for every country, and sophisticated look of the store and polite staff in stores, they are trying to satisfy their consumer and to reach the new one. Their champagnes are divided according to their brands. As I mentioned they have two main brands Hugo and Boss. On this picture we can see how they are explaining each brand, and we can see what are they target markets.
As we can see on this picture there is abrand overview, were every line target
various needs, and we could say various
customer. In addition to this picture, the
following ones will explain every line of
the brand.
Retrieved October 29,2007 from: trendyspace.blogspot.com/2006/09/antara-polan... Hugo Boss
Orange
Retrieved 29, October 2007,from: www.medien.hamburg.de/
Retrieved October 29,2007 from:www.adensya.ru/collections/
Because of their brands and lines within brand they are using differential segmentation strategy.
That means that they use concentrated strategy because their target customers with high
income and they are advertising throw some innovative ways.
References:
New York:The McGraw-Hill Companies, Inc.
Author Unknown (2007). Group.Hugo Boss/Company/Brand Overview.
Retrieved, October 29, 2007, from: http://group.hugoboss.com/en/markenuebersicht.html
Chapter 8- product and Services Concept
In the next sentences I will try to introduce you with Hugo Boss AG products, or to be precise with a benefit that gives you their products. Also I will explain components of their product.
Hugo Boss AG is with its high quality fabrics providing a customer satisfaction, and the customer enjoys wearing their cloths. They recognize the most important thing in marketing, and those is, providing benefits to customer with their products and not just making products and then seek for the market. Because of that Hugo Boss, throw his brands separated different needs: needs for sport cloths, for business suits, and skirts, etc.
Quality is very important component for Hugo Boss. Because their cloths are expensive, they can’t afford to have unsatisfied customers, because they can go to competitors. Because of that the employees in the stores are very educated, and if anything happened to the cloths they are willing to exchange it.
Design in cloths vary from season to season, but is still very important components. I tried few weeks ago one skirt at Hugo Boss that looked nice on a hanger, but when I tried to put it on, it was really difficult, so I gave up. Sometimes they exaggerate in making cloths unusual.
Branding is something that is very familiar to Hugo Boss. Their names of the brands are Hugo and Boss (Boss Black,
Hugo Boss packages their cloths to some white paper, and then put in the black bags, with barely visible Hugo Boss sign. But because of the same packaging all over the world, their bags become well-recognized.
References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E.
Unknown Author, (2007). Hugo Boss/The Hugo Boss group. RetrievedSeptember27,2006from:http://production/.investis.com/boss_en/thegroup/
Chapter 10- Product and services Strategies
Throw my other chapter I explained you the vision, objectives, strategies they use for segmentation the market, environmental influences that affect their company, but I didn’t mention their products that much. So, in this last chapter, I will try o explain product life cycle in Hugo Boss company.
The product mix of a Hugo Boss is its very big and has several product lines. They are producing suits, jeans, shirts, snickers, pullovers, dresses, fragrance, and in the past few years jewelry.
These entire products have almost the same life cycles (introduction, growth, maturity, and decline). I will explain throw example on Hugo Boss in Vlaška in
In July, I received the mail about from Renimo d.o.o. that import Hugo Boss cloths, that in few days new cloths collection for winter is ob the way to the store. Throw this mail they inform me that the new product life cycle began. After that, they began to advertise new ads for new collection, to introduce potential customer into the new collection. Now, they are having growth stage because the winter is standing in front of the door, and the consumers are buying winter cloths more. I would say somewhere around the Christmas, Hugo Boss will enter into the maturity stage. In the maturity stage, they usually put some little part of the new coming spring collection. In the end comes the decline stage. In the decline stage they usually have sales. They want to sell all their cloths from winter collection because the spring collection entered in the store (the same way as winter did into). When spring collection enters entire, somewhere round the February, product life cycle for winter cloth is over.
The specific thing of Hugo Boss AG and other fashion brands is that they are having new product life cycle every four months.
In the end, I would like to say something about new line products in Hugo Boss AG. Like all other companies, Hugo Boss also adapting to the changes, and produced some new product. In the past decades, Hugo Boss AG introduced to the customer Hugo fragrances, and entered into the risky market. But, their fragrances made great success, and only few years ago, they entered a new market. They start to make jewelry.
Every company has to adapt to the changes in the market, especially company like Hugo Boss, that have very good image. By filling the new product lines into their market mix, they can enter some new markets, and make the life cycle of particular product longer than few months (fragrances are good example).
References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E.
Author Unknown (2007). Group. Hugo Boss/ Company/ CorporateProfile.Retrieved:October29,2007from:http://group.hugoboss.com/en/unternehmens profile.htm
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