Marketing Plan, Cobranding and Licensing Project; Fashion Marketing course

1. Dorian by Paul Smith: licensing project
Taste different. Be
Dorian
Licensor: Paul Smith ltd.
Licensee: Gruppo Campari s.p.a.
Mattia Bardella
Nicola Cenedese

2. Dorian by Paul Smith: licensing project
THE PROJECT
 Brand extension: spirit
 1 year
 Licensor : Paul Smith ltd.
 Licensee: Gruppo Campari s.p.a.
 Product name : Dorian by Paul Smith

3. Dorian by Paul Smith: licensing project
THE BRAND: PAUL SMITH
• Nottingham 1970 ( accidentally)
•Art college
•12 collections; 35 countries; japanese business
•Licensing agreements
•Fragrances
•China
•Rugs
•Spectacles ( sunglasses)
• ……
•Co-branding initiatives
•Triumph
•Evian
•£ 150 mln turnover (2009)
•ROE (‘09)= 11%
•ROA (’09)= 17%

4. Dorian by Paul Smith: licensing project
Product lines: man (1/2)
PS MAN PAUL SMITH MAN PAUL SMITH LONDON

5. Dorian by Paul Smith: licensing project
Product lines: man (2/2)
BESPOKE PAUL SMITH JEANS

6. Dorian by Paul Smith: licensing project
Product lines: woman (1/2)
PAUL SMITH BLACK PAUL SMITH WOMAN PAUL X

7. Dorian by Paul Smith: licensing project
Product lines: woman (2/2)
PAUL SMITH JEANS

8. Dorian by Paul Smith: licensing project
Product lines: others (1/2)
FRAGRANCES SPECTACLES ALBEMARLE STREET

9. Dorian by Paul Smith: licensing project
Product lines: others (2/2)
ALBEMARLE STREET PAUL SMITH & TRIUMPH PAUL SMITH & EVIAN

10. Dorian by Paul Smith: licensing project
ART
ENGLISH
MODERN
STYLE
DANDY STRIPES
FASHIONABLE SLIM
ORIGINAL

11. Dorian by Paul Smith: licensing project
FLL : fashion licensing lifecycle
•No chronological order
•Focus on the whole brand management process
•Constellation business model
•Now : phase 4, new licenses
• phase 1 (line extension) e.g. childrenswear collection 1991
• phase 2 (internationalisation) e.g. Watch collection 1994
• phase 3 (retail growth) e.g. “furniture and things” collection 2003
• phase 4 (new licenses) e.g. Paul Smith MINI art car 1998

12. Dorian by Paul Smith: licensing project
ORIGINALITY
PRICE

13. Dorian by Paul Smith: licensing project
THE PRODUCT: DORIAN
• Embodies brand codes
•Coherent with brand identity
• WHAT : Unique product, unique flavor, two different sizes, design features
•WHEN: from Jan.2011
• WHERE First year UK ONLY
•countries in which PS is present,
•specialty stores, exclusive cafès, flagships
•HOW
•Sweet cherry taste
•Location SUCCESFUL CONSUMPTION EXP.
•After-dinner or happy hour
•Served chilled

14. Dorian by Paul Smith: licensing project
Alcoholic beverages life cycle
SALES DORIAN BY
PAUL SMITH
launch growth maturity decline TIME

15. Dorian by Paul Smith: licensing project
Competitive SUPPLIERS
Gruppo Campari s.p.a
contest
Dorian by Paul Smith
Jagermeister
SUBSTITUTES Montenegro POTENTIAL ENTRANTS
Book Baileys Dolce & Gabbana
Art exhibit Vodka Cavalli Giorgio Armani
Theatre Sambuca Molinari
Martini Vermouths
BUYERS
Flagships
Exclusive cafes
Wine and spirit stores

16. Dorian by Paul Smith: licensing project
Price levels & market
segmentation
VODKA
CAVALLI Highly differentiated
from 41 £
OUR PRICE
DORIAN BY PAUL SMITH 35£/60£ Premium
From 26£ to 40£
BAILEYS; SAMBUCA MOLINARI;
JAGERMEISTER;
MONTENEGRO
Medium
From 11£ to 25£
MARTINI BIANCO Mass
From 5£ to 10£

17. Dorian by Paul Smith: licensing project
Target customer
AGE FAMILY LIFESTYLE NEEDS
20-35 Single or engaged ( no Dandy Taste sth. New
children) Have fun Distinguish him/herself
Pleasure of drinking Relax
Art and culture Socialize
• Demographical and psycographical variables
•The cost of a “Dorian by Paul Smith” does not weigh so much on the total daily
expense
• Young people, enjoy life, easygoing personality, friends
•GET THE VALUE BACK

18. Dorian by Paul Smith: licensing project
The licensing strategy
•Licensee: Gruppo Campari s.p.a.
•QUALITY,ENJOYMENT,PASSION
•6th biggest player in alcoholic beverages’ market  solid company
•Worldwide distribution force (190 countries)
•Over 40 brands
•13 production plants
•CAGR 2004-2008 was 5,8%

19. Dorian by Paul Smith: licensing project
THE LICENSING AGREEMENT
•Right to use trademark and registered logo in alcoholic beverages class ( class 33,WIPO)
•Production: licensee’s plants of Nanterre (FR);exclusive distribution
•10 years;
•Royalties: 5% TO; brand’n’logo fee : £30.000 per year;creative effort:£140.000
•Communication: 7,5% TO (licensor responsibility)
•Collaboration
COMPLEMENTARY SYNERGIES

20. Dorian by Paul Smith: licensing project
THE CREATIVE PROCESS
INNOVATIVE IDEA
• Cherry flavored spirit
•Freshness
•Versatility
COHERENCE WITH PS PLATFORM
•Easiness to drink = Easiness to wear
•Sweet cherry taste = pleasure + dandy
•Not drunk = socialize
•Innovation + freshness = originality + young style

21. Dorian by Paul Smith: licensing project
POWERED BY AUTOCAD 3D
Product design (1/2)

22. Dorian by Paul Smith: licensing project
POWERED BY AUTOCAD 3D
Product design (2/2)

23. Dorian by Paul Smith: licensing project
Dorian’s key features:
•Recipe(DEVELOPED BY CAMPARI):
•cherry taste, freshness, 25% alcoholic volume, medium density, dark red color.
•Bottle design:
•Tall & Slim;
•hexagonal basis, but blunted surfaces;
•red (Victorian Age typical velvet color), glossy, transparent glass;
•Paul Smith’s typical colored stripes all over the cork;
•gold writing: “Dorian by Paul Smith”.
•Glasses design:
•truncated hexagonal pyramid;
•transparent;
•red writing “Dorian by Paul Smith”;
•colored stripes;
•heavy and thick bottom.

24. Dorian by Paul Smith: licensing project
PRICE
Dorian’s
positioning
Dorian by
Paul Smith
BITTER SWEET
OVERCROWDED ZONE

25. Dorian by Paul Smith: licensing project
Consumption experience
(1/2)
DEDICATED POP

26. Dorian by Paul Smith: licensing project
Consumption experience (1/2)
POWERED BY MATTIA BARDELLA

27. Dorian by Paul Smith: licensing project
THE OPERATIONAL PLAN
TURNOVER & BUDGET APR-10/APR-11
75 cl. 150 cl. TOTAL
VOLUME 75000 25000 100000
UNIT RETAIL PRICE £35,00 £60,00
TURNOVER £2.625.000,00 £1.500.000,00 £4.125.000,00
ROYALTIES (5% TO) £206.250,00
BRANDS & LOGOS FEE (per year) £30.000,00
CREATIVITY EFFORT REMUNERATION £140.000,00
TOTAL GROSS REVENUES £376.250,00
PRODUCT DEVELOPMENT £0,00
CREATIVITY £138.278,60
OPERATIONS £220.657,34
COMMUNICATION £309.375,00
TOTAL COSTS £668.310,94
TOTAL NET REVENUES (LOSS) -£292.060,94

28. Dorian by Paul Smith: licensing project
•Turnover (of the licensee) and costs of the first part of the
launch, ending with UK’s distribution of the product
• First year’s loss:
•Exclusive product + short span of sales’time  low volumes
•creativity costs, being for the majority fixed costs, won’t be
present in the next years
•Economic loss BUT image return and brand awareness
•LONG-TERM PERSPECTIVE

29. Dorian by Paul Smith: licensing project
PAUL SMITH LTD GRUPPO CAMPARI S.P.A.
DORIAN ORGANIZATION DORIAN ORGANIZATION
TOP MGMT (Paul Smith) CEO
long term
idea development
supervisor of all
coherence Bob
phases
strategy Kunze-
Concewit
z
Licensing manager
manages relations with the licensee takes care of the contract's clauses
CO-OPERATION Brand
manager
Product manager Sales & Mktg;
coordinates processes towards the gives hints to the various members of Production;
final product the operating line Distribution
DORIAN WORK TEAM
People involved

30. Dorian by Paul Smith: licensing project
Schedule
PHASE ACTION START DATE
1 Concept definition: general idea and business plan 01/04/2010
Negotiate and sign contract 07/05/2010
Concept briefing with Campari 07/06/2010
2 Bottle and glasses design (packaging) 15/06/2010
SIMULTANEITY
Spirit's recipe briefing with Campari 15/06/2010
3 Adv campaign plan 01/09/2010
Press presentation: trade magazines,specialty press 07/10/2010
4 Finalize last details of Dorian's production and packaging 15/11/2010
5 UK distribution plan 01/12/2010
Event: Dorian at Albemarle street Christmas 2010
6 Official presentation Jan. 2011
Available at retail 15/01/2011
7 Export plan 15/03/2011

31. Dorian by Paul Smith: licensing project
THE COMMUNICATION PLAN
• Taste different. Be Dorian
•Taste: to SAVOUR & to BE different
•Dorian: dandy, fun, relax, pleasure
•Linked to brand identity
•Unique framework of reference for communication
COHERENCE
•Incentive for co-operation with the licensee

32. Dorian by Paul Smith: licensing project
Graphic solutions and
logos Colors Backgrounds
S
T
Y
L
E
Taste different.
Be Dorian.
G
U
I
D WWW.PAULSMITH.CO.UK
E

33. Dorian by Paul Smith: licensing project
Communication tools
1. PRESS
• Fashion & Lifestyle magazines
• Trade magazines ( since October 2010)
2. PR
• Flyers
• People selected coherently
3. POP
• Customized display
• Differentiation strategy
• Both in specialty stores & flagships

34. Dorian by Paul Smith: licensing project
4. EVENT: DORIAN at ALBEMARLE ST.
• PS antiques and furniture shop
• Christmas period (before effective launch)
• Opinion leaders: young artists and musicians
5. WEB TOOLS
• Facebook group
• Twitter account
• Dorian’s website: forum  improve the community issue
• PS blog
• THE COSTS ARE RELATIVELY LOW

35. Dorian by Paul Smith: licensing project
COMMUNICATION PLAN
COMMUNICATION PLAN
TOOLS
apr-10 may-10 jun-10 jul-10 aug-10 sept-10 oct-10 nov-10 dec-10 jan-11 feb-11 mar-11 apr-11
PRESS
trade press
fashion-lifestyle
magazine
PR
POP
EVENTS
WEB TOOLS
Paul Smith blog
Facebook
Twitter
Dorian website

36. Dorian by Paul Smith: licensing project
Thank you for the
attention!