Marketing Strategy and SWOT Analysis of Kering
Have you ever heard of the luxury brands Alexander McQueen, Yves Saint Laurent, Gucci, Creed, Balenciaga, and more? Did you know that they all fall under a multinational corporation called Kering? The latter is an international Luxury group that supervises the growth of the mentioned renowned Fashion Houses. Focusing on authenticity, responsibility, and audacity, the Fashion Group promotes its name and always stays on top of the game with its core strategies. With “Ker” being the home and “ing” being the action, the fashion group’s name is pronounced as “Caring,” which already holds a lot that we can discuss during this blog. So, let’s do it.
Kering’s mission and vision statements.
The statements mentioned above are combined for this company.
“At Kering, people are at the heart of our strategy. Our mission is to offer a stimulating, caring work environment where creativity, audacity, and diversity fuel the success of our Houses and drive our vision of sustainable and influential luxury.”
The statement emphasized the significance of making consumers happy and satisfied, and not solely with putting out the products that people might need.
This company suggests a motivating work environment for its employees where they can thrive off of their imagination, diversity, and mindset to contribute to the success of their Houses.
The vision focuses more on the suggested luxury to be significant to its consumers while maintaining sustainability at the same time.
The company promises to contribute to its luxury vision that motivates and fascinates its consumers. The clients must be engaged in Kering’s offerings, which always focus on inclusivity and genuineness.
Kering fosters creativity and does everything of its power to take upon the duty of driving towards a more sustainable environment and globe.
Initially, the vision of Kring was created on innovative risk-taking that motivates and advances how individuals become more explicit, sustainable, and inviting people.
Kering believes in its Fashion Houses’ creative path where incredibly talented people contribute towards the goal that creative mindset and inventiveness are what matter.
The company provides its employees with all the means to develop and reach their full potential by stepping out of their comfort zones to redesign the luxury world.
The luxury sphere continuously grows, so Kering knows the necessity for ongoing transformation and the swiftness of international trends. The investigation for self-expression, hyper-connectivity, meaning, self-empowerment, and an inextinguishable innovation thirst fall under the latter.
Throughout time, luxury was considered a heritage, superb craftsmanship and exceptional know-how. However, in our day and age, luxury holds a much deeper meaning, and the manner of selection defines one’s individuality.
The luxury market is thriving, inspiring, and impressive, and Kering is a part of it. The latter confidently describes the purpose of luxury today and encourages customers to join on a trip to creativity, findings, and possibility.
Kerning’s positioning strategy
To find that out, look at the Instagram post below.
This post is advertising four Bottega Veneta bags and purses, and the photos are incredibly straightforward. One would only grasp that it is a bag advertisement if looking at which page made the post or looking further at the caption.
However, Kering is not simple like that; it is a sophisticated luxury group, after all, so of course, it has made a thorough description in the caption for its followers to take a look at.
The caption mentions that the Bottega Veneta bags that are being advertised in the photos are from “The First Sunrise With You,” a collection emphasizing the Dragon Year.
Bottega Venera has utilized the elements of the shoreline, top of rocks, under windmills, and following mountain roads to contribute to the Year of the Dragon. The capsule collection features upscale designs with highlights alongside a custom Jodie.
What can we gather from this simple yet sophisticated post that Kering has made on its Instagram page?
Of course, the first hint is that these items are luxury and high-status. And, logically following that, of course, for the Fashion Group that it is, this is a pattern throughout the whole Instagram page.
Another hint is the quality of the items. We are getting an up-close shot of the bags, allowing a lot of room to concentrate on the details and nitty-gritty showcased on these items.
The last hint, which, once again, is seen throughout the entire Instagram page and the Fashion Group in general, is the above-average pricing. That, of course, is expected due to Kering’s luxury highlight.
With these three hints in mind, the archetype that Kering belongs to is the Ruler.
What do we know about this archetype?
Desire: power
Aim: create a successful, thriving family, society, or company
Strategy: practice supervision
These are the messaging levels of the archetype.
Level One: the absence of aids, direction, or association
Level Two: taking responsibility for your life’s numerous scenes at the given moment
Level Three: managing your home, corporation, community, or workplace
Level Four: shifting into a supervisor in your domain, community, or organization
The Ruler’s identicalness might be suitable for your company if you have the following:
- a luxury item used by influential people to enhance their power
- A product that helps individuals become more organized
- A service or product that can offer a long-term assurance for maintaining your power in proportion or bettering it
- a company with a regulatory and defensive function
- a product or service with an average to above-average price scheme
- A company that wishes to differentiate itself from market leaders
- A comparably sound field or an item that offers predictability and security in an unorganized field.
Brand archetypes: Why are they significant in practice?
Is there a reason brand archetypes hold a real meaning in the real world?
Numerous companies’ communication strategies could concentrate on other platforms with distinct objectives. However, Their communication strategies are tied up by a joint logic, which is archetypal branding.
Utilizing archetypal branding guarantees your messages are typical, original, and coherent. A motivational statement that maintains your company can contact every individual on the earth and have different consequences depending on the understanding.
One paradigm highlights education, while others emphasize becoming a hero. Marketing specialists can mix their thoughts to develop more influential messaging using communication based on archetypes.
To better understand how you can transform your brand messaging into something more valuable, take a look at the “8 Steps To a Complete Archetypal Branding.”
SWOT Analysis of Kering.
Strengths
Delineated system: Kering is the third largest luxury group globally, and its format is incredibly delineated, even though the Fashion Luxury Group has multiple luxury brands. The main two corporate brands of Kering are the brand portfolio and the Kering Group.
Outstanding strategy and positioning: While the Kering Group has so many brands, all of them stand out with their positioning and strategy. For instance, Gucci, Boucheron, and Ulysse Nardin watches are all included in the Kering Group.
Brand structures: All portfolio brands have formulations allowing them to find, create, and develop a unique brand strategy.
Strong partners: The global logistics center was created in 2021 with a world-famous logistics and transportation services provider.
Cutting-edge technology: The logistics center is blessed with automation and technology to resolve the issue of longer delivery times generated by the outbreak of e-commerce under COVID-19.
Weaknesses
Increasing concentration on Gucci: The focus on Gucci implies that the latter holds a large share of the operating revenue from Kering’s total operating revenue. An emphasizing point would be that in 2022, Gucci got 52% of Kering’s entire income.
Gucci’s elevated operating revenue: Of course, it is amazing for the Kering group that one of its brands, Gucci, has a high operating revenue. However, there is a difference between Gucci’s operating revenue now and before. The latter encourages additional indecision for the Kering Group’s future.
Opportunities:
More emphasis on social media: Additional intake on the e-commerce business model and social media could encourage Kering Luxury to collaborate with regional logistics service providers and suppliers in international markets.
Heightened audience: Focusing on social media could help Kering Luxury spend less on joining a new market. The latter could also allow Kering to acquire consumers with trimmer marketing spending. In the meantime, social media could also raise awareness and encourage more growth in the future through web traffic.
Threats
China as a leading consumer in luxury goods: China is a leader in acquiring luxury items. That implies that the Kering Group is slowly emphasizing its concentration on the Chinese market. However, the trade relations between China and the US are increasingly strained. That means there could be potential international trade conflict and increase the risk of labor.
More rigid environmental laws: In developed countries, the environmental regulations are transforming into something more uncompromising. The governments of these countries are setting more elevated taxes to encourage ecological gains. That would mean that the Kering Group would have to disburse its shipping and packaging costs more.
The segment that Kering has chosen to target.
For that analysis, let us watch this short video.
This video is a straight-off fashion show. We are following the brands with their styles as we go.
Gucci is showcased in a yellow setting, YSL in black, Balenciaga in beige, Bottega in a patterned setting, and Alexander McQueen in dark grey. Then we see Brioni in the nature.
Boucheron is shown in front of a sight, and Pomellato is in front of a grey/shadowed wall. Qeelin is in front of red to emphasize the beauty of the jewelry. All of these brands are offered by incredibly prominent individuals that the audience loves.
The first hint is that everybody stands out with their looks, and every brand stands out with its aesthetic and unique style while adjoining.
The second hint is the emphasis on luxury. Even when showcased in front of blank, one-colored walls, these items have a way of presenting themselves so that one knows precisely what they are looking at.
With these points in mind, we can infer that the segment Kering has chosen to target is Peacocks.
Lifestyle and values:
Peacocks value individual expression over uniformity and pursue distinctiveness in various ways. Even though striving for perfection can lead to uncertainty, they maintain their confidence in facing failure. Their perfectionism is fueled by accomplishments, which systematically divide objectives into doable chunks. They actively pursue education and advancements to advance to leadership positions in their careers. Even if they are financially successful, they frequently need to pay more attention to necessities instead of overpaying for luxury.
Attitude towards shopping:
Peacocks buy opulent items because they want to stand out and appear flawless. They are drawn to bargains and special deals because they appreciate quantity as much as quality. Maintaining a modern look is essential and is encouraged by media consumption for fashion ideas. Once consumers identify a favorite company, they are steadfast in brand loyalty.
Other interesting facts:
- Peacocks value their looks and the manner of their recognition.
- They regularly visit the gym since the latter is not only a means of staying in shape but also a way of meeting new individuals.
- This segment enjoys visiting the cinema and is an above-average bar and restaurant goer.
- Mut makes friends with individuals who are like them.
- Their primary information medium is the TV, but they also enjoy racing magazines.
- Online platforms are a way of maintaining a social life and communicating with others.
- Some Peacocks utilize print media, but fewer listen to the radio.
That concludes the Marketing Strategy of Kering blog, where we touched upon the company’s mission and vision, archetype, SWOT analysis, and segment. Do not hesitate to stop by our main website for more content that will be fun to read and valuable to hold.
