Dolce and Gabbana Presentation

FACTS / FACTS / FACTS / FACTS / FACTS / FACTS
/ FIRST COLLECTION IN
1986 / ‘REAL WOMEN’
/ WORTH £1.6 BILLION
EACH
/ RELEASED MENS-
WEAR LINE IN 1990
/ O P E N E D F I R S T
B O U T I Q U E I N
TOKYO IN 1989, MILAN,
1990, HONG KONG,
1991
/ LAUNCHED FIRST
FRAGRANCE 1992 /
/ IN 1996, FOR THEIR
TENTH ANNIVERSARY,
THEY PUBLISHED TEN
Y E A R S O F D O L C E &
GABBANA
/ INTRODUCED LINGERIE
AND BEACHWEAR, 1989
/ I N 1 9 9 6 T H E Y
RECORDED THEIR OWN
SINGLE
/ GABBANA WAS BORN IN
MILAN AND TRAINED AS A
GRAPHIC DESIGNER

LUXURY FASHION / LUXURY FASHION / LUXURY FASHION
•Luxury retailers generally sell goods
they have manufactured themselves
!
•Luxury retailers are the most prolific of
the internationalising retailers
!
•Luxury retailers normally use a direct
investment method when entering a
foreign market
!
•The flagship store, is used as the
primary investment tool for entry into a
foreign market
•The flagship store is used to
demonstrate the brand identity, and give
the consumer a luxury experience
!
•The financial investment made in
luxury flagship stores is significantly
higher than those of other retailers
!
•The selection of a prominant
geographical location is important,
allowing the consumer to purchase the
best quality goods in the best
environment, showcasing the brands
position
!
Nobbs et al, (2012)

LUXURY FASHION / LUXURY FASHION / LUXURY FASHION
•The Luxury goods industry
includes fine wine and fine dining,
fashion, cars, fragrances, jewelry,
handbags and luggage, and boats
and yacht
!
•In 2013 Luxury goods sales
exceeded $318 billion worldwide
!
•In 2015 the US is the leading
luxury goods market with an
estimated value of £60 billion, the
UK is 6th with an estimated value
of £12 billion, with France and Italy
just ahead in 4th and 5th place.
•The women's online luxury fashion
market is predicted to grow from a
current 3% of the total market to
17% by 2018
!
•In the UK particularly, consumers
will normally go online to search/
view and/or purchase luxury fashion
items
!
•According to the McKinsey &
Company consumer survey, nearly
half of luxury goods buying
decisions are already influenced by
what consumers hear or see online
!Ecommercenews, (2015); McKinsey & Comapny, (2015); Statista, (2015)

BRAND / BRAND / BRAND BRAND / BRAND / BRAND
‘D&G Dolce&Gabbana is the metropolitan glamour: an eclectic and
contemporary brand, the expression of a changing world. It is a style
without borders, which freely interprets the various influences of its own
era, to become a unique and instantly recognisable lifestyle.’
Sicilian, Mediterranean, Romantic, ‘Strong Woman’, ‘Confident Man’, ‘Family’ are what
makes up the brand identity.

BRAND / BRAND / BRAND BRAND / BRAND / BRAND
/1998 the Sicily line was a turning
point, Gabbana persuaded Dolce to
go back to his Sicilian roots, from then
on, Sicilian themes were the heart of
the brand. (Blanchard, 2015)
!
/Very distinct style design: Authentic
vs. unconventional, Modern Classisim
vs. Mediterranean flavor.
!
/Complete creative freedom over the
brand
!
/Official ‘Brand Values’ are: Contrast
& Harmony, Respect for People,
Creativity, Integrity and Business
Ethics, Honesty, and respect for the
environment

COMPETITION / COMPETITION / COMPETITION

COMPETITION / COMPETITION / COMPETITION
D I O R ( C H R I S T I A N
DIOR)
•French Design
!
•Rich History
!
•Christian Dior house
founded in 1946
!
•Re-established Paris
a s t h e i n n o v a t i v e
fashion capital it was
before WW11
!
•1 9 4 8 e s t a b l i s h e d
luxury ready-to-wear
boutiques in new york,
& l a u n c h e d D i o r
fragrances.
!
•1 9 4 9 a r r a n g e d
licensed production of
his designs, and began
designing accessories
to complete the ‘DIOR
look’.
•In 1996 British designer John Galliano was appointed head of the
company, due to his ‘extraordinary mixture of romanticism, feminism,
and modernity that symbolizes Mr. Dior.’
!
•In 2013 Dior achieved $41.6 billion in revenue, profits of $8 billion
!
•Concentrate more on ready-to-wear than couture
!
•3 stores in Milan

SPRING/SUMMER 2015 | AD CAMPAIGN

/Luxury brands are in some ways a marker, creating a form social stratification. Any body is
free to buy the luxury products, within the limits of their financial means. This is linked in
many ways to our social classes;
!
‘A luxury item that extraordinary people would consider ordinary, is at the same time an
extraordinary item to ordinary people.’ (Kapferer, Bastien, 2012, pp,18)
!
Therefore, luxury is the desire to belong to a superior class, adopting a superior lifestyle and
appearing a ‘success’. This is how many luxury brands, including dolce & gabbana have so
successfully branded themselves as a lifestyle brand.
!
/Dolce & Gabbana: Target Audience: Men & Women aged between 20-30, High social
status, fashion brave, high income earners, 10,076,914 followers on Facebook, 3.76 million
followers on twitter
!
/Dior: Target market: Men & Women 25-over, high social status, good taste, high income,
educated. 11,695,092 followers on facebook, 1,929,207 followers on twitter, digital
magazine.
DEMOGRAPHICS / DEMOGRAPHICS / DEMOGRAPHICS

VISUAL MERCAHNDISING & STORE DESIGN
Dior, Paris 2014 Dior, New York, 2014
Dolce & Gabbana, Paris, 2015

STORE DESIGN / MERCHANDISING
MILAN SHOP DESIGN / MENS-
WEAR

!
/ Up-Market area of Milan

!
/First Atelier for bespoke mens
clothes

!
/ Lavish building with Sicilian
garden & courtyard

!
/ Five different types of marble

!
/ One off pieces of furniture

!
/ Expert tailors on hand to ﬁt
clothes, and advise customers

!
/ Luxury shopping experience

!
/ Lavish yet homely

Marketing Mix / Marketing Mix / Marketing Mix

DRESS WITH FULL SKIRT
IN PRINTED ORGANZA
£ 1,700.00
LONG-SLEEVED TOP IN
PRINTED SILK
£ 595.00
SUIT IN COLOURED WOOL
CLOTH
£ 1,650.00
PRICE / Exclusivity & Desirability of Product / Indicator of Brands
Positioning / Luxury customer less ‘price-sensitive’ / Luxury pricing
objective is profitability & return on investment /

(Okonkwo, 2007)
The Extended Strategic Pricing Model
/The Extended Strategic
Pricing Model indicates a high,
medium and low level of
measurement in pricing vs.
product quality.
!
/Some Luxury brands show a
gravitation towards medium-
price ranges from premium
!
/Key objectives for deciding
price also include the target
d e m o g r a p h i c , a n d t h e
competitors price stance, and
demand

PRODUCT / A Wide range of
products, for Men, Women & Children:
Clothes, Handbags, Sun-glasses,
Shoes, Under-wear, Beach-Wear,
Perfume, Make-up, Books, Watches,
Jewelry, Hi-Tech Accessories
!
/ Dolce & Gabbana design matching
products enhancing the whole look
and lifestyle
!
/Luxury Products have a strong
emphasis on the whole brand, luxury
products feature the Brand Logo,
innovative/creative/appealing designs
and packaging, high quality material,
high quality craftsmanship and rapid
design turnover

This year Dolce & Gabbana is producing a collection of hijabs & abayas targeted to Muslim customers in the
Middle East, this is an example of design progression and celebration of different cultures & religion.The designs
cater to the Islamic requirements of loose ﬁtted clothing, featuring ﬂowing dresses, long lacey sleeves &
embroidered headscarves, it is a brave and positive move considering the current rising religious tensions and
could be perceived as a political statement. It is also a positive factor for revenue, Muslim shoppers spent $266
billion on clothing & footwear in 2013, and are expected to spend $484 billion by 2019. (Yotka, 2016; Haris,
2016)

/ A diffusion line (also known as a bridge line) is a secondary
line of merchandise created by a high-end fashion house or
fashion designer that retails at lower prices. These ranges are
separate from a fashion house's "signatureline", or principal
artistic line, that typically retail at much higher prices.
!
/ Dolce & Gabbana began their diffusion line, ‘D&G’ in 1994,
the collection explored less formal designs, and famously
produced many bold animal print lines, and metallic designs.
The diffusion line was priced lower than their high-end main-
line collections, and although it was successful, Dolce &
Gabbana merged ‘D&G’ with the main Dolce & Gabbana
brand, to further strengthen it. The two lines became to similar
and consumers began to confuse the diffusion line with the
high-end luxury brand, dampening their association with
luxury.
!

PLACE / Within the marketing mix, the process of moving products from the producer to the
user is called place, (how the product is bought and where it is bought), the movement can include
distributors, wholesalers, retailers and the internet. It focuses on where the business is located,
where the target market is located, how to connect the two, how/where to store goods and how to
eventually transport them.
/ Dolce & Gabbana have stores in 40 countries, including Thailand, Ukraine, Brazil, France,
China & Singapore, with 29 stores in the US
!
/In the 1990’s they began a restructure in attempt to become a vertically integrated company, they
were successful in this by the year 2000, vertical integration can encourage specific investment
and can reduce hold-up problems when markets are imperfect (Acemoglu et al, 2009), Dolce &
Gabbana began by having their own production capacity, then they took over the manufacturing
of their formally licensed goods, (scarves, ties, lingerie). After this they entered the Chinese
market, as well as opening new flagship stores, they began to buy out their franchisers, including
20 stores from their Japanese partners.

PROMOTION / To present the product to the targeted consumers, whilst
increasing demand and differentiating the product and brand identity.
!
/ Advertising, Public Relations, Personal Selling, Direct Marketing, & Sales
Promotion can all be used to achieve the last objectives, using a
promotional mix.
!
/Communicating the luxury brand values can be complex, the appeal of
luxury is to posses an exclusive product, so the promotion of the luxury
brand/product needs to retain a degree of rarity and specialness.
!
/There are many ways Luxury Brands have adopted a strategy suitable to
the brand identity and values, eg. celebrity endorsement, targeting the
‘wealthy’ and the ‘young’ who may be members of exclusive clubs, entry
products and premium products and creating the ‘lifestyle brand’.
(Hines, T., Bruce, M., 2007)

MARKETING / STRATEGY / MARKETING / STRATEGY
DIGITAL STRATEGY
/Dolce & Gabbana have begun a new promotional/marketing strategy via digital channels,
with the aim being that consumers may enter their digital ‘world’ in one place.
!
/Via Facebook, Dolce & Gabbana offer links to their mobile apps, other social media pages,
ecommerce site and blog in one tab.
!
/This strategy connects every medium/channel, split into three sections, the tab includes the
web pages, the social media networks and mobile.
!
/ The Dolce & Gabbana official website is not the online store (unlike high-street fashion
brands, the official website includes links to:
!
!
/On the website they also offer the Dolce & Gabbana iTunes podcasts, the social media
section offers a vast option, including: Facebook, Twitter, Instagram, You-Tube, Pinterest,
Plus-Google, Tumblr, Linked-In, Weibo, Youku, VK, and the dolce&gabbana live journal.
!
/They also run a blog, ‘Swide’ they use this as their channel to break corporate news,
content about branded parties, fashion shows, brand ambassadors and news.
!
!
!
!
(Lamb, R., 2011)

/ The official website
promotes the FALL/
WINTER 2016 men’s
fashion show and
collection, ‘Old Wild
Sicilian West’, using
words like ‘invite’ and
‘discover’. This is also
supported by a you-
tube video of the
fashion show and
catwalk at the very
top of the page.
Women & Mens 2016
summer collection is
just below./ The #DGFamily campaign,
offering the interactive experience
and emersion into the brand
values
/ The top Tab on the official
website is the first thing that
you see, each tab takes you to
everything about that subject
As well as on the top tab, the website
emphasises the online store with visual
links, they also do this for the perfumes.

SWIDE BLOG/ The Dolce &
Gabbana Blog offers news on
celebrities, advice on italian and
spanish food & travel, style & fashion,
beauty and much more.
!
/ It contain videos of ‘behind the
scenes’, from fashion shows and
catwalks to campaigns. And acts as a
back catalog for old campaigns and
collections.
!
/It offers interviews with celebrities or
important people involved within their
company, and they promote their
‘most read posts’, ‘must see videos’
and their blog newsletter.

#DGFamily CAMPAIGN / #DGFamily CAMPAIGN
/Dolce and Gabbana’s last few advertising campaigns have been intensely
focused on traditional italian families, casting grandmas in their spring
2015 campaign, and dedicating their winter 2015 runway show to mothers.
!
/The 2015 Winter ad camapign shows men and women of multiple ages,
pregnant women and babies, shot in a ‘family portrait’ ‘behind the scenes’
way, using famous models that appear regularly in other ad campaigns
(including Ashleigh Good, Vittoria Ceretti, Esmerelda Seay Reynolds, Tami
Williams and Sora Choi).
!
/ The campaign was Shot by Domenico Dolce, with Stefano Gabbana’s art
direction, again reminding consumers that they are the brand, and their
personal core values are the same as the ‘brands’, it is now engrained that
‘sicily’ and ‘family’ and ‘Mediterranean design’ are the brands values and
identity.

/ The 2016 family focused Winter ad campaign became interactive when Dolce & Gabbana
introduced #DGFamily, the concept supports the campaign, by asking people to upload their
family portraits to the gallery, stretching the campaign message to a personal message, an
emotional and personal touch.

CELEBRITY ENDORSEMENT / CELEBRITY ENDORSEMENT
/In advertising, it is common that a product or
brand be associated with a celebrity,
normally over a long period of time.
!
/Research suggests that this technique has a
big impact on the audiences attention, recall,
evaluations and purchase intentions, thus
creating positive association and brand
knowledge.
!
/The use of celebrities in ads has increased
to around 25% of all ads in the UK & US
during 1979-1997.
!
/Celebrity endorsement can have a huge
positive impact on a brands credibility, if they
already possess a positive public reputation
especially.
!
(Hsu, & McDonald, 2002; Carroll, 2009; Spry et
al, 2011).
/Dolce & Gabbana have always and
regularly use celebrities/public figures/
f a m o u s m o d e l s w i t h i n t h e i r
advertisement:
/ Madonna (singer)
/ Matthew McConaughey (actor)
/ Scarlett Johansson (actress)
/ Kate Moss (model)
/ Naomi Campbell (model)
/ Monica Bellucci (actress)
/ Felicity Jones (actress)
/ Josè Maria Manzanares (Bull-Fighter)
!
/ Many more celebrities are fequently
seen wearing Dolce & Gabbana /
attending parties / fashion shows, eg.
Anne Hathaway, Britney Spears, Daniel
Craig, Emma Roberts, Eva Mendes, Flo
Rider, Katy Perry, Keira Knightly, Kylie
Minogue, Robert Pattinson, Fergie, The
Beckhams, to name a few...
!
!
!

CELEBRITY ENDORSEMENT / CELEBRITY ENDORSEMENT
Dolce & Gabbana Fall/Winter 1992,

Kate Moss and Nadja Auermann
Dolce & Gabbana Summer 2011,

Naomi Campbell
Dolce & Gabbana Spring/
Summer 2010, Madonna
/ Dolce & Gabbana have particularly long & fruitful relationships with Madonna, Kate Moss
and Naomi Campbell. They recently launched a collection of limited edition t-shirts to
celebrate Naomi’s 25th anniversary of collaboration with the brand, the t-shirts showed the
portrayal of Naomi by some of the greatest contemporary photographers of our time.

CONTROVERSY / CONTROVERSY / CONTROVERSY
(Scammel et al, 2015)
LGBT boycott / Controversial Ad / Tax evasion

SWOT ANALYSIS
•Strong brand values

•High-end Luxury products

•High Quality products

•Forward thinking, original

•Non-traditional, groundbreaking ads

•Good media presence

•Strong professional relationships

•Many different products/reaching large
market

•Excellent digital presence
•Create new brand extension/diffusion line

•Further expansion into growing Asian
markets

•Join green movement/creating eco-friendly
products and packaging
•Has not yet joined green movement

•Negative appearances within the press/
proffessionalism

•No brand extension/diffusion line/more
affordable product

•Counterfeit products
•Competition

•Economy/Recessions

•Brand identity confusion

•Loosing customers due to ‘boycott’
campaigns

•Conﬂict with other prestigious people

CONTROVERSY / CONTROVERSY / CONTROVERSY
RECOMMENDATIONS

/ Negative media attention: Avoid causing offense to people, to
avoid ‘boycotting’ protests that could harmfully affect the brand identity.

!
/ Further expansion into Asian market: Continue growth into
newly successful Asian Markets.

!
/ Consider brand extensions: Consider brand extention or new
diffusion line to cater for lower-income customers, avoid exclusion of large social
groups, and reinforce brand identity.

!
/ Take environmental stance: Beneﬁcial to the company identity and
the environment. Cutting down on emissions can cut down on costs.

BIBLIOGRAPHY
!
Acemoglu, D., Johnson, S., & Mitton, T.. (2009). Determinants of Vertical Integration: Financial Development and Contracting Costs. The Journal of
Finance, Vol. 64, Iss. 3, pp. 1251–1290.
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!
Carroll, A 2009, 'Brand communications in fashion categories using celebrity endorsement', Journal Of Brand Management, 17, 2, pp. 146-158.
!
Derry Law, Christina Wong, Joanne Yip, (2012) "How does visual merchandising affect consumer affective response?: An intimate apparel experience",
European Journal of Marketing, Vol. 46 Iss: 1/2, pp.112 - 133
!
García, M, Pelegrín, B, & Fernández, P 2011, 'Location strategy for a firm under competitive delivered prices', Annals Of Regional Science, Vol. 47, Iss. 1,
pp. 1-23.
!
Håkan Håkansson, Alexandra Waluszewski, (2005) "Developing a new understanding of markets: reinterpreting the 4Ps", Journal of Business & Industrial
Marketing, Vol. 20 Iss: 3, pp.110 - 117
!
Hines, T., & Bruce, M., (2007), ‘Fashion Marketing: contemporary issues’, 2nd edition, Published by Elsevier Ltd.
!
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pp. 19-29
!
Kapferer, J.N., Bastien, V., (2012). ‘The Luxury Strategy’, Published by Kogan Page Limited, pp.18
!
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!
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!

BIBLIOGRAPHY
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!
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!
Philipp Nikolaus Kluge , Martin Fassnacht , (2015) "Selling luxury goods online: effects of online accessibility and price display", International Journal of
Retail & Distribution Management, Vol. 43 Iss: 10/11, pp.1065 - 1082
!
Spry, A., Pappu, R., Cornwell, T. B., (2011), ‘Celebrity endorsement, brand credibility and brand equity’, European Journal of Marketing, Vol, 45, Iss.6, pp.
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!
Thomas, D., (2007), ‘Deluxe: How luxury lost it’s lustre’, Published by The Penguin Group
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Tungate, M., (2012), ‘Fashion brands: branding style from Armani to Zara’, 3rd Edition, Published by Kogan Page.
!
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!
ARTICLES & WEBSITES
Adams, C., (2015), ‘Dolce & Gabbana sparks controversy again with new ad campaign that glamorizes gang rape’, Inquisitor, (accessed at http://
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!
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ARTICLES & WEBSITES
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!
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!
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!
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!
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!
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!
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!
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!
!
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!
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!
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