안녕하세요! Move over Abercrombie and Hollister: a new brand is set to enter the US market and compete for the top position in the "casual luxury" market. South Korean brand, Who.A.U (short for "who are you") has had major success at home, boasting 50 stores nationwide and plans to expand into other Asian markets. Their brand is as clearly defined as you can get, complete with sun-kissed, attractive blondes lazing by ocean scenes and looks of passion in the model's faces. Who.A.U offers many of the same product categories as Hollister and is similar in price point. The question remains however, will Americans accept a new player in the market and more importantly would body-conscious 14 year olds buy clothes from a Korean retailer?
My guess is most likely no, but Who.A.U seems to have already solved that issue. When asked, a friend from Seoul, Korea exclaimed, "It's not an American brand??" Yes, even a native, fashion-forward Korean had no idea; which speaks volumes about Who.A.U's branding strategy and their attention to consumer wants. They are aware that people from their domestic market (Koreans) buy a lot of Abercrombie and Hollister apparel when they visit the US and that a certain segment of the market was missing. Also, Abercrombie and Hollister have no operations in Asia, and have been slow in reacting to growth potential in the Korean and Chinese markets.
Who.A.U has reacted, and fast. Their plans of expansion are funded by their deep-pocketed parent company, and they show no signs of slowing down. However, the US market is very fragmented and vastly different from Korean consumers, making Who.A.U's entrance into the market challenging. From what I have observed, young fashion-conscious teens in Asia, namely Korea, enjoy international fashion, accepting and buying brands originating anywhere from Italy to Japan. Kids in the US (on average) do not have the same international exposure, and likely do not have the same understanding of other cultures. Capturing American teens could therefore be an uphill battle, but if a Korean retailer can brand itself so "American/California" that a native didn't know otherwise, then maybe they have a shot. Best of luck to you Who.A.U, with your excellent brand strategy and marketing you have the skills needed to adapt your brand to an international market.
미국에서 성공하기를 바랍니다!
[hope you succeed in the US!]
-As a US consumer, would you think this was a Korean brand?
Who.A.U website: http://www.whoau.com/
-For CARS/RCS students, what do you think about the Korean market in terms of growth/market potential in the apparel industry?
-Jane Brownfield
Friday, September 28, 2007
Tuesday, September 18, 2007
She Walks In Beauty
One of the great wonders of the fashion world as well as the business world is a company's/ fashion house's ability to change everything about themselves with one collection or innovative product. Such is the case with classic American milliner, Anne Klein. Evidence of what was to come began a few months ago when the fall collection for AK began its shoot for the Fall ad campaign. From the moment the ads subtlely penetrated the American media, everyone knew something was different, but the element of surprise had just begun to ensue.
I flipped open a Vogue about 2 months ago in mid-July and thumbed through the pages as I usually do. Scanning the various ads for Ready-to-Wear from the usual suspects, I wasn't particularly thrilled by what I saw. Except for Tod's, which in my opinion, is the best dressy/casual invention since sliced bread. But, with fashion, something is ALWAYS different. Just as I was about to close the periodical and place it back on the shelf, I found myself completely stumped mid-way through my browsing. What I saw was one of the best print ads for any couture house, hands-down.
To set the scene, a reed-thin model dressed impeccably in a slouchy silk trench, a structured woolen dress, and sky-high pumps leaned against a dark, shaded brick wall. The dark, shaded brick wall served as the perfect backdrop to highlight the the model and her divine dressings. Her face was contorted into such a look, that one might assume she was withdrawn into herself, as though she were an actress playing a role with such depth that not even a camera's eye could adequately archive her emotion. The dark atmosphere and imposing urban background gave the image its hard-edged look, thus bringing the look full circle. As you, the observer, interpret this image, you bring together all the ideas presented before you and thus make your judgements about the image. This will all occur in less than 45 seconds, and in that amount of time, the marketer has only that small window to get your attention and keep it. What you see in this ad is couture, art, design, and detail all meticulously planned in a such a format that you can do nothing but take in the splendor. Ingenious would be the adjective used to describe the layout. Taking decorated minimalism to a new level, Anne Klein's new collection had more gall than Jil Sander's celebrated art-house chic. Incredibly, this is what the marketing team at AK produced for the new series of beautiful pieces it sent down the runway at New York's fashion week. The looks that sashayed down the catwalks were a breath of fresh air from the corporate banality that the collections of previous years possessed. New silhouettes, gorgeous prints and knits, and luxe textiles paraded for all the shows attendees to see.
Structure was achieved without structure at all. Wispy resort collections featured hand painted cocktail dresses with innovative cuts, vibrant and rich colors, as well as updated styles. The dresses, made of wispy silk and linen were belted with sashes and sewn with loose pleats and darts for soft and clingy lines. Fall and winter featured fabulous gowns, skirts, jackets, and exquisite ready to wear. Tuxedo pants, with rive gauche glossy jackets were the new way to dress up for occasion. Masculinity was boldly embraced with colorful button ups, and bright suits. Everything about the clothes screamed femininity and masculine traditionalism. Yet, something new lurked behind the designs. This new element was a European flair, and artsy eclecticism. Scottish plaid and rich herringbone were combined to make a funky woolen trench for fall/winter, and espresso skinny slacks were worn underneath for a warm, but tough-as-nails evocation. It seemed as though Klein had given Burberry, Sander, and even Marc Jacobs a run for their money. Wide leg pants were worn with skimpy 80's throwback blouses, and brightly drab mustard creams were part of the monochrome uniform. Was this truly Ann Klein we were seeing, or a reinvention similar to that of Chanel in the 50's?
Although this wonderful maturation was brilliant in its own right, its partial success must be accredited to the marketing agency. Giving us a small taste of what was to come, the ads themselves gave us a new idea of what we could expect from the traditional American brand. This is where the marketing has its most admirable moments. Knowing exactly how to ignite a catalyst for change; the process should almost be patented if it hasn't already. Step 1: a brand makeover that isn't too overtly pretentious. Step 2: placement is precise and very appropriate. Step 3: the most difficult-- innovative creativity must peak interest and draw interest from its images. Saturation must NOT occur, the images must make a gradual integration into the market, and then a following will draw towards the product.
It seems as though Anne Klein took this to heart, and followed the precise steps towards its future. I don't think the label will ever be the same from this point forward. Under the direction of Isabel Toledo, the creations will continue to evolve into something much different and with a completely different look. She may have stepped gingerly with this collection, but if it's as well-received as I predict it will be, AK may be the new stop in luxury fashion for fashionista and celebrity alike. Humble beginnings certainly won't stop this change.
She'll probably enter a room and everyone will ask, "My God, you look stunning. Who are you wearing?" She'll nonchalantly reply "It's Anne Klein collection."
Get ready. www.anneklein.com
--Corey Fitzgerald
I flipped open a Vogue about 2 months ago in mid-July and thumbed through the pages as I usually do. Scanning the various ads for Ready-to-Wear from the usual suspects, I wasn't particularly thrilled by what I saw. Except for Tod's, which in my opinion, is the best dressy/casual invention since sliced bread. But, with fashion, something is ALWAYS different. Just as I was about to close the periodical and place it back on the shelf, I found myself completely stumped mid-way through my browsing. What I saw was one of the best print ads for any couture house, hands-down.
To set the scene, a reed-thin model dressed impeccably in a slouchy silk trench, a structured woolen dress, and sky-high pumps leaned against a dark, shaded brick wall. The dark, shaded brick wall served as the perfect backdrop to highlight the the model and her divine dressings. Her face was contorted into such a look, that one might assume she was withdrawn into herself, as though she were an actress playing a role with such depth that not even a camera's eye could adequately archive her emotion. The dark atmosphere and imposing urban background gave the image its hard-edged look, thus bringing the look full circle. As you, the observer, interpret this image, you bring together all the ideas presented before you and thus make your judgements about the image. This will all occur in less than 45 seconds, and in that amount of time, the marketer has only that small window to get your attention and keep it. What you see in this ad is couture, art, design, and detail all meticulously planned in a such a format that you can do nothing but take in the splendor. Ingenious would be the adjective used to describe the layout. Taking decorated minimalism to a new level, Anne Klein's new collection had more gall than Jil Sander's celebrated art-house chic. Incredibly, this is what the marketing team at AK produced for the new series of beautiful pieces it sent down the runway at New York's fashion week. The looks that sashayed down the catwalks were a breath of fresh air from the corporate banality that the collections of previous years possessed. New silhouettes, gorgeous prints and knits, and luxe textiles paraded for all the shows attendees to see.
Structure was achieved without structure at all. Wispy resort collections featured hand painted cocktail dresses with innovative cuts, vibrant and rich colors, as well as updated styles. The dresses, made of wispy silk and linen were belted with sashes and sewn with loose pleats and darts for soft and clingy lines. Fall and winter featured fabulous gowns, skirts, jackets, and exquisite ready to wear. Tuxedo pants, with rive gauche glossy jackets were the new way to dress up for occasion. Masculinity was boldly embraced with colorful button ups, and bright suits. Everything about the clothes screamed femininity and masculine traditionalism. Yet, something new lurked behind the designs. This new element was a European flair, and artsy eclecticism. Scottish plaid and rich herringbone were combined to make a funky woolen trench for fall/winter, and espresso skinny slacks were worn underneath for a warm, but tough-as-nails evocation. It seemed as though Klein had given Burberry, Sander, and even Marc Jacobs a run for their money. Wide leg pants were worn with skimpy 80's throwback blouses, and brightly drab mustard creams were part of the monochrome uniform. Was this truly Ann Klein we were seeing, or a reinvention similar to that of Chanel in the 50's?
Although this wonderful maturation was brilliant in its own right, its partial success must be accredited to the marketing agency. Giving us a small taste of what was to come, the ads themselves gave us a new idea of what we could expect from the traditional American brand. This is where the marketing has its most admirable moments. Knowing exactly how to ignite a catalyst for change; the process should almost be patented if it hasn't already. Step 1: a brand makeover that isn't too overtly pretentious. Step 2: placement is precise and very appropriate. Step 3: the most difficult-- innovative creativity must peak interest and draw interest from its images. Saturation must NOT occur, the images must make a gradual integration into the market, and then a following will draw towards the product.
It seems as though Anne Klein took this to heart, and followed the precise steps towards its future. I don't think the label will ever be the same from this point forward. Under the direction of Isabel Toledo, the creations will continue to evolve into something much different and with a completely different look. She may have stepped gingerly with this collection, but if it's as well-received as I predict it will be, AK may be the new stop in luxury fashion for fashionista and celebrity alike. Humble beginnings certainly won't stop this change.
She'll probably enter a room and everyone will ask, "My God, you look stunning. Who are you wearing?" She'll nonchalantly reply "It's Anne Klein collection."
Get ready. www.anneklein.com
--Corey Fitzgerald
Wednesday, September 12, 2007
High Standards: A Look At Marketing In Popular Culture
I want you to tell me what sells you something, and then tell me what made you purchase the product specifically. Is it sex? Is it lighting? Is it presentation? What makes you buy?
Today's ads and commercials seem so uninspiring, and when one brilliant ad stands out above the rest, the idea is talked about by everyone. What is it that makes many of today's ads so blah, so generic? Where has innovation gone to? Is it that large marketing firms are soo afraid of the big bad moral police? In America, I know there isn't an enforcement policy or a moral authority like there are in predominantly Muslim countries. But-- there are however underlying social moires that bar us from saying and doing certain things publicly. Although we claim to be a society of moral chastity and social/cultural acceptance, there still is a certain amount of censorship on the things we say and do but with exception. In contrast to this, some ads have been culprit to portraying a gratuitous amount of sex in ads they market to masses. For example, the AXE deodorant ads: Completely and unabashedly made for selling a product to men obviously insinuates sex as a side effect. This ad stands out in my mind as one of the only ads in American media that shows this kind of liberal disregard.
It must be said, that these ads, however entertaining, are in poor taste. European marketing firms often have sex as a topic in their ads, but always in jest and with taste. In general European nations seem to have less of a problem discussing and displaying sex in their media. The main difference in the two nations is that one is perpetually exposed and therefore much more comfortable with its discussion. European ads are revered for their creativity and sharp wit. Consumers enjoy those commercials and then are more likely to seek out the good the firm is purveying. But American ads, those are a different story.
When I flip through the latest gossip magazine, I don't see anything that inspires me. All the photos are of generic models or actors that lifelessly stand in front of a product without actively engaging me. Why on earth would I want to purchase a tube of lip-gloss or wear a sweater that I see from Old Navy if I don't even care what the ad has to say? If I'm not engaged, then I won't look twice at the ads. I feel that what American ad companies and firms lack is the assumption of intelligence on the consumer's part. Apple has done so well because they have a certain sophistication to their ads. Clean, white, upscale, the ads are pleasing aesthetically and socially. No toes are really stepped on and the relatability (I made it up, I know) is almost familiar (even if you've never used an apple product before). However, the true power of the ads lies within their assumption of intelligence. While the ads are enjoyable, they're also released for the viewing of mass consumers, meaning, everyone can view the ads. And they talk to US, American society about what we'd like about a PC. They assume we already like "ease-of-use, simplicity, elegance, and versatility" even if we don't own a MAC. With that winning combination, they've already sold us their product, and we've never even thought about owning one before. It's almost like they've got us with a one-two punch.
However, these ads still aren't daring enough. Intelligence is one thing, but selling with a more dynamic punch is something that should be tried in the American markets. Maybe companies should try using upscale sophistication with more daring images. Putting two and two together; doesn't that equate to innovation? I think that may be the very definition of it.
But let's not get ahead of ourselves. America still has a LOT of growing up to do. Liberalism isn't one of our strong points by far. We still have to overcome social acceptance, and push barriers. Equality must be met before we can even prepare ourselves for any sort of social supernova to occur. Maybe that should be the job of the American Marketing firms: Help push images and messages of "lighten up, America" on society so that change can happen. Take a look at the Gucci ads from a few years ago. Men and women together in the ads, all touching in an intimate way, you're not even sure if it's attraction or just comfortable proximity. Those in a way, aside from selling us some of the most beautiful pieces of couture, also helped spread a nouveau message of "free love". These images become a social staple and then we become used to them. Hopefully a new wave of ads will encourage us to loosen up and take a more comfortable stance on the things we will and won't tolerate.
I know we've all heard of censorship, but what the hell ever happened to the notion of free-speech and acceptance?
--Corey Fitzgerald
Today's ads and commercials seem so uninspiring, and when one brilliant ad stands out above the rest, the idea is talked about by everyone. What is it that makes many of today's ads so blah, so generic? Where has innovation gone to? Is it that large marketing firms are soo afraid of the big bad moral police? In America, I know there isn't an enforcement policy or a moral authority like there are in predominantly Muslim countries. But-- there are however underlying social moires that bar us from saying and doing certain things publicly. Although we claim to be a society of moral chastity and social/cultural acceptance, there still is a certain amount of censorship on the things we say and do but with exception. In contrast to this, some ads have been culprit to portraying a gratuitous amount of sex in ads they market to masses. For example, the AXE deodorant ads: Completely and unabashedly made for selling a product to men obviously insinuates sex as a side effect. This ad stands out in my mind as one of the only ads in American media that shows this kind of liberal disregard.
It must be said, that these ads, however entertaining, are in poor taste. European marketing firms often have sex as a topic in their ads, but always in jest and with taste. In general European nations seem to have less of a problem discussing and displaying sex in their media. The main difference in the two nations is that one is perpetually exposed and therefore much more comfortable with its discussion. European ads are revered for their creativity and sharp wit. Consumers enjoy those commercials and then are more likely to seek out the good the firm is purveying. But American ads, those are a different story.
When I flip through the latest gossip magazine, I don't see anything that inspires me. All the photos are of generic models or actors that lifelessly stand in front of a product without actively engaging me. Why on earth would I want to purchase a tube of lip-gloss or wear a sweater that I see from Old Navy if I don't even care what the ad has to say? If I'm not engaged, then I won't look twice at the ads. I feel that what American ad companies and firms lack is the assumption of intelligence on the consumer's part. Apple has done so well because they have a certain sophistication to their ads. Clean, white, upscale, the ads are pleasing aesthetically and socially. No toes are really stepped on and the relatability (I made it up, I know) is almost familiar (even if you've never used an apple product before). However, the true power of the ads lies within their assumption of intelligence. While the ads are enjoyable, they're also released for the viewing of mass consumers, meaning, everyone can view the ads. And they talk to US, American society about what we'd like about a PC. They assume we already like "ease-of-use, simplicity, elegance, and versatility" even if we don't own a MAC. With that winning combination, they've already sold us their product, and we've never even thought about owning one before. It's almost like they've got us with a one-two punch.
However, these ads still aren't daring enough. Intelligence is one thing, but selling with a more dynamic punch is something that should be tried in the American markets. Maybe companies should try using upscale sophistication with more daring images. Putting two and two together; doesn't that equate to innovation? I think that may be the very definition of it.
But let's not get ahead of ourselves. America still has a LOT of growing up to do. Liberalism isn't one of our strong points by far. We still have to overcome social acceptance, and push barriers. Equality must be met before we can even prepare ourselves for any sort of social supernova to occur. Maybe that should be the job of the American Marketing firms: Help push images and messages of "lighten up, America" on society so that change can happen. Take a look at the Gucci ads from a few years ago. Men and women together in the ads, all touching in an intimate way, you're not even sure if it's attraction or just comfortable proximity. Those in a way, aside from selling us some of the most beautiful pieces of couture, also helped spread a nouveau message of "free love". These images become a social staple and then we become used to them. Hopefully a new wave of ads will encourage us to loosen up and take a more comfortable stance on the things we will and won't tolerate.
I know we've all heard of censorship, but what the hell ever happened to the notion of free-speech and acceptance?
--Corey Fitzgerald
Sunday, September 9, 2007
Ralph Lauren: The Marketing Perfectionists
When you think of a brand of clothing, with it comes imagery and a certain idea the wearer is buying into, and conversely, hoping to convey with wear. If someone were to say to you, "what do you think of when someone says the name 'Ralph Lauren?'", what images would come to your mind? Most likely, you'll mentally conjure words that are associated with the brand's idea. Prominence, luxury, affluence, power, Americana (definitively), and comfort ability. Secondly, you'll envision images that go hand in hand with these words. And these images, the very ones you're thinking of, have come directly from Ralph Lauren's ad campaigns. The notion of lifestyle marketing is nothing new. Presently, it's more common to see large retailers marketing their products to a certain niche of consumer society. Examples of this would be Isaac Mizrahi at Target; low budget chic for college aged women and young professionals who desire luxury at a reduced price. Another would be Hot Topic and it's aim at young, rock and roll teens who express their angst through apparel and accessories. However, Ralph Lauren has triumphed above all these other retailers with it's marketing campaigns and painstaking attention to detail.
Prim designs with classic cuts and silhouettes complement the clean ready-to-wear style. The clothes are novel for their ideals, but when paired with squeaky-clean American models, the look is completed. The backdrop is uppity-Northeastern Americana, beautiful estates that overlook the New York countryside and sprawling homes and sailboats nestled into the grandeur of Martha's Vineyard. When you wear the same polo, the same sweater, the trousers, the tweed and herringbone coats, and those divine linen sailor pants you feel as if you're headed to the same destination as the fictional characters in his ads. Consistently decadent, the ads are always shot in pristine color, glossy finish and the faux-ideal of naturalism in an all-but-natural environment.
The Ralph Lauren customer is generally a fashion-conscious male or female, seeking out quality clothing that empowers them with the feeling of opulence and power. And I can guarantee you, when a customer is shopping for Ralph Lauren, their purpose is specifically Ralph Lauren and nothing else. The wouldn't buy an IZOD polo with the intention of saying something about them. The goal is the shirt with the insignia, because it's the one detail that makes the statement loud and clear. In this way, RL has achieved the ultimate in commercial success. They've made their clothes not only a way of life, but a destination point as well. Once you've placed RL on your body, you're saying something about yourself, and the message will be apparent and well-read by most.
And what a concept it is, that one garment of clothing can socially define who a person is aspiring to be. Many other fashion houses and retail brands have tried the same concept, but with enough clout to stomp on all other competition, RL is the heavyweight champion in the fashion world. A Gucci bag may suggest a girl has the money to purchase the accessory, but a Ralph Lauren ensemble is the uniform of the affluent members of American society. And to be perfectly honest, the ensemble spits in the face of a Gucci Hobo any day of the week.
For the other fashion houses out there, I'd suggest hiring a new campaign manager and then going from there. You've got to sell your idea first before even thinking you've got a chance against old Ralphie. You might be forgotten in 10 years, but RL will still be kicking ass and taking names in the next few decades.
Take notes fashion world, you've got a lot of catching up to do.
---Corey Fitzgerald
Prim designs with classic cuts and silhouettes complement the clean ready-to-wear style. The clothes are novel for their ideals, but when paired with squeaky-clean American models, the look is completed. The backdrop is uppity-Northeastern Americana, beautiful estates that overlook the New York countryside and sprawling homes and sailboats nestled into the grandeur of Martha's Vineyard. When you wear the same polo, the same sweater, the trousers, the tweed and herringbone coats, and those divine linen sailor pants you feel as if you're headed to the same destination as the fictional characters in his ads. Consistently decadent, the ads are always shot in pristine color, glossy finish and the faux-ideal of naturalism in an all-but-natural environment.
The Ralph Lauren customer is generally a fashion-conscious male or female, seeking out quality clothing that empowers them with the feeling of opulence and power. And I can guarantee you, when a customer is shopping for Ralph Lauren, their purpose is specifically Ralph Lauren and nothing else. The wouldn't buy an IZOD polo with the intention of saying something about them. The goal is the shirt with the insignia, because it's the one detail that makes the statement loud and clear. In this way, RL has achieved the ultimate in commercial success. They've made their clothes not only a way of life, but a destination point as well. Once you've placed RL on your body, you're saying something about yourself, and the message will be apparent and well-read by most.
And what a concept it is, that one garment of clothing can socially define who a person is aspiring to be. Many other fashion houses and retail brands have tried the same concept, but with enough clout to stomp on all other competition, RL is the heavyweight champion in the fashion world. A Gucci bag may suggest a girl has the money to purchase the accessory, but a Ralph Lauren ensemble is the uniform of the affluent members of American society. And to be perfectly honest, the ensemble spits in the face of a Gucci Hobo any day of the week.
For the other fashion houses out there, I'd suggest hiring a new campaign manager and then going from there. You've got to sell your idea first before even thinking you've got a chance against old Ralphie. You might be forgotten in 10 years, but RL will still be kicking ass and taking names in the next few decades.
Take notes fashion world, you've got a lot of catching up to do.
---Corey Fitzgerald
Tuesday, August 28, 2007
Can New CEO Glen Murphy Revamp Gap Inc. ?
The once iconic American brand has since faded in the eyes of consumers in recent years, a driving force in Gap Inc.'s two year profit slump. Gap Inc has its share of issues, but the most significant seems to be simply its inability to capture its target customer and their consistent failure to produce an inspiring product offering. This trend is likely linked with Gap Inc's high turnover of executive employees who essentially are in charge of a brand's direction. It is possible that Gap has relied too heavily on its established brand name, leading the company to become overconfident with expansion and new growth market potential while subsequently loosing sight of their core product, message, and brand identity.
To combat Gap Inc.'s downturn is newly appointed CEO Glen Murphy. With a reputation in brand turn-arounds, Murphy has the difficult task of re-vamping the Gap brand and cultivating a creative atmosphere for his design and merchandising teams. Internally, Gap Inc has been noted as being a "revolving-door of talent" primarily in the merchandising department and design team.
The executive high turnover, which Murphy pledges to stop, has sent mixed messages to investors, another factor contributing to Gap Inc.'s lagging stock price and sales growth. Although Gap's low price-to-earnings ratio can be a sign of a mature or established company, it can also signify low-growth and missed sales projections.
However, it looks as though Murphy is doing all the right things as new CEO, proclaiming an "unleash" of creativity that will span throughout all of Gap Inc's divisions including Old Navy and Banana Republic. With no previous experience in the apparel/fashion industry Murphy is poised to learn about the apparel process and direct the company back to it's core values. His plans include improving the store experience, cutting costs by closing down their newest operation, Fourth and Towne, and decreasing company office space and HR costs. Perhaps Gap Inc. and Murphy will narrow their customer focus to avoid getting lost in such a broad market. Flashy advertising and the newest celebrity face will only be a quick fix for Gap; first they must redefine their customers and reconnect with their wants and expectations. This can be accomplished by putting together a winning combination of designers, merchandisers, analysts, supply chain managers, etc. and also allowing this team to grow and mature with the brand by giving them an incentive to be creative. Murphy has a long journey ahead, but I feel confident Gap's timeless appeal and accessible customer base will be helpful in their growth attempts as they strive be "back on top."
-Jane Brownfield
To combat Gap Inc.'s downturn is newly appointed CEO Glen Murphy. With a reputation in brand turn-arounds, Murphy has the difficult task of re-vamping the Gap brand and cultivating a creative atmosphere for his design and merchandising teams. Internally, Gap Inc has been noted as being a "revolving-door of talent" primarily in the merchandising department and design team.
The executive high turnover, which Murphy pledges to stop, has sent mixed messages to investors, another factor contributing to Gap Inc.'s lagging stock price and sales growth. Although Gap's low price-to-earnings ratio can be a sign of a mature or established company, it can also signify low-growth and missed sales projections.
However, it looks as though Murphy is doing all the right things as new CEO, proclaiming an "unleash" of creativity that will span throughout all of Gap Inc's divisions including Old Navy and Banana Republic. With no previous experience in the apparel/fashion industry Murphy is poised to learn about the apparel process and direct the company back to it's core values. His plans include improving the store experience, cutting costs by closing down their newest operation, Fourth and Towne, and decreasing company office space and HR costs. Perhaps Gap Inc. and Murphy will narrow their customer focus to avoid getting lost in such a broad market. Flashy advertising and the newest celebrity face will only be a quick fix for Gap; first they must redefine their customers and reconnect with their wants and expectations. This can be accomplished by putting together a winning combination of designers, merchandisers, analysts, supply chain managers, etc. and also allowing this team to grow and mature with the brand by giving them an incentive to be creative. Murphy has a long journey ahead, but I feel confident Gap's timeless appeal and accessible customer base will be helpful in their growth attempts as they strive be "back on top."
-Jane Brownfield
Thursday, August 23, 2007
Give Me The Drugs: The Seduction of Prescription Drug Advertising
Within the last decade, prescription drug advertising has grown 3 fold, thus securing it's position as commonplace in the consumer market. No longer are advertisements for these drugs few and far between; now that these ads are readily displayed on television, the drug literacy of the average American has also expanded. These ads for pharmaceuticals appear regularly on television and convince many Americans that they have conditions that they may not actually have. This increase in prescription drug advertising and the subsequent result of their consumption show the strength of ad power these drug companies have. Large brands such as Lunesta, Nexium, Crestor have spent more than 200 million dollars on advertising and marketing to make these names commonplace. The advertising campaigns have been successful because of their marginalization of the real risk involved, while making them appeal to your emotions first. Once the consumers feel a connection with the ad itself, they'll seek the drug that will be conducive to their "condition". For example, Lunesta's advertising campaign featured a butterfly logo and employed dream-like sentiment throughout the message capturing the audience with its promise of a full nights sleep. The ads often feature a tired mother or a stressed out father; situations that are very common to many Americans. Often theses drug ads list the side effects towards the end of the ad, after capturing its audience with its message. This strategy has proven to be a success as the number of Americans on prescription drugs is rising. These companies are aware that many consumers are concerned more with perceived quality and results than fact and do an excellent job of convincing consumers that they are truly informed.
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