Northeastern University Week 4 Front Row Tribe Fashion Company Analytical Review 1. Can the sharing economy work in the luxury business? 2.What kind of cu

Northeastern University Week 4 Front Row Tribe Fashion Company Analytical Review 1. Can the sharing economy work in the luxury business?

2.What kind of customers should Front Row Tribe target, and what channels would be most appropriate?

3. How should Front Row Tribe approach expanding into European, U.S. and other international markets?

4. What other suggestions would you have for Front Row?

Please use the text to reference and use while answering questions. Each question should be about 400 words. 6/28/2020
Northeastern University
Week 4 Case Introduction: Front Row
Tribe – The Sharing Economy Meets
the Luxury Industry
Good morning, this is Professor Sarathy. I want to talk briefly about our case Front
Row Tribe. Front Row Tribe is an Italian company based in Milan. As you may know,
Milan is one of the world’s centers of fashion. And what Front Row Tribe wants to do
is provide designer clothing on loan, on rental. So that what they want to do is have
a website where people who want clothes for a special occasion– a wedding, a
birthday party, New Year’s Eve, et cetera– might be able to come and browse the
selection, choose a dress or suit or whatever they want, and this would be sent out
to them. And, of course, they’d pay for it. And then after they use it, they’d send it
back after a period of two or three days.
And this is the business model that Front Row Tribe is trying to develop. And, of
course, the case is about both the business model as well as their expansion goals.
They want to go from Italy into other European countries and possibly into Asia, the
US, et cetera. As you may know, it’s not a novel concept. For example, we have a
company in the US called Rent the Runway, which offers similar services.
And the issue here is, once again, what is the relative balance between digital
marketing and physical marketing? In other words, the clothes are available in
storefronts. Is it enough to display them on a website, or do you want to have the
ability for customers to also come and visit the store to select possible loans? And
then second, what kind of brands to stock. Should they only stock European brands
or also American brand names, Asian designers, et cetera? How broad an
assortment?
And then most important, how do you maintain loyalty? Because the model would
be, let’s say, a dress costs 200 euros, you’d need to rent it out at least half a dozen
times in order to make some profit. And so how do you get enough customers,
volume, and how do you get customers to recommend the site so that more
customers join and you have more potential demand for your product? And then, of
course, as you take this concept to other countries, how do you need to adapt it? So
that if I want to sell rental clothes in Saudi Arabia, where there’s a rich population, is
there a cultural attitude that says only poor people would do such a thing, rich
people would buy their own clothes?
So you need to think about cultural attitudes, the assortment of products you carry,
how you’d price it, the cleaning issue, for example, so that tears are mended, stains
are removed, and clothes are delivered to the customer in a pristine condition. Then,
of course, how do you ensure you get the clothes back in time so that the loan of
two days doesn’t become a loan of six days, et cetera? So it’s a fun case which helps
you think about social media, digital marketing, omnichannel approaches to
marketing, et cetera.
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D’Amore-McKim School of Business
Digital Marketing and Social Media
in Global Markets
Ravi Sarathy
Northeastern University
Week 4 L2
1
D’Amore-McKim School of Business
Key Global Digital Marketing Issues
Digital marketing mind-set—How can digital technologies drive the
business?
Customer insight—using big data, analytics
Using digital touchpoints to enhance the company’s value proposition
and customer experience; Disney MagicBand
Precise targeting: based on customer values, preferences, behavior;
building an emotional connection
Consistency of service across channels—physical and digital
Ecosystems and partners; Spotify, Instagram, WeChat, WhatsApp,
Facebook, Google, Echo, etc.
Learning organization, enhancing digital capabilities: customer-centric
test and learn delivery model, customer involvement in design;
building digital skills internally versus outsourcing
Adequate digital infrastructure: data collection and access, software
tools, predictive modeling, IT infrastructure, storage, data security
Becoming the customer’s trusted partner
D’Amore-McKim School of Business
Using Social Media
Social media is the media of the people—the media that people
use
To interact, to communicate, to share
To express likes and dislikes, sharing what generates engagement and
passion
Cultural context influences how social media is used
Why we share what we share
What are the triggers that cause us to take action on social media
Who do we want to share with?
Family, friends, colleagues at work, teammates, neighbors, like-minded
people, the public, prominent figures we admire or dislike, etc.
Who do people trust?
3
D’Amore-McKim School of Business
The Value of Social Media
Social media influences how the potential consumer learns
about products and services, interprets their utility, and uses
them
Who uses social media—the seller/advertiser, the customer,
the developer, competitors?
How much does social media cost to use, how reliable it is, who
can be reached with that technology and platform?
4
D’Amore-McKim School of Business
Source: Abtan, Olivier, Barton, Christine, Bonelli, Federico, et al. Boston Consulting
Group. (2016, September). Digital or die: The choice for luxury brands. Retrieved
from https://www.bcg.com/enus/publications/2016/digital-or-die-choice-luxurybrands.aspx.
D’Amore-McKim School of Business
Source: Abtan, Olivier, Barton, Christine, Bonelli, Federico, et al. Boston Consulting Group.
(2016, September). Digital or die: The choice for luxury brands. Retrieved from
https://www.bcg.com/enus/publications/2016/digital-or-die-choice-luxury-brands.aspx.
D’Amore-McKim School of Business
Source: Abtan, Olivier, Barton, Christine, Bonelli, Federico, et al. Boston Consulting Group.
(2016, September). Digital or die: The choice for luxury brands. Retrieved from
https://www.bcg.com/enus/publications/2016/digital-or-die-choice-luxury-brands.aspx.
D’Amore-McKim School of Business
Source: Abtan, Olivier, Barton, Christine, Bonelli, Federico, et al. Boston Consulting Group.
(2016, September). Digital or die: The choice for luxury brands. Retrieved from
https://www.bcg.com/enus/publications/2016/digital-or-die-choice-luxury-brands.aspx.
D’Amore-McKim School of Business
Outbound: cold calling;
Inbound: Search engine
optimization, email
marketing, blogs, social
media: let the customer seek
you; customer’s search and
social media history, current
level of usage;
Source: BCG,
5 Selling
Secrets of
Today’s Digital
B2B Leaders
Customer Success
managers: aid in adoption,
deployment of product
Selling more (Volume
expansion); Upselling; and,
Cross-selling.
D’Amore-McKim School of Business
Source: BCG, 5 Selling Secrets of Today’s Digital B2B Leaders
D’Amore-McKim School of Business
Social Media Factors
Many social media platforms: the complexity of
fragmentation—WeChat, Facebook, Twitter, Instagram, Vine,
Periscope, Snapchat, LinkedIn, WhatsApp, Wiebo, Line (Korea);
blogs
Each platform is an environment, like a classroom, the
workplace; how do people use that particular platform?
Platform and technology—what technology do people have?
Does an individual have multiple devices to access social media? A
smartphone, a tablet, a desktop, FitBit, Google Glass, Echo, etc.?
Or, in emerging markets: a single older device, perhaps an old phone
shared among several users (the family?)
How much time does a potential customer spend online?
11
D’Amore-McKim School of Business
Social Media Strategy
Importance of a social media strategy
Designing the campaign
Test, learn, adapt
Measures to assess whether strategic objectives are being
achieved
What does social media achieve?
Advertising—one-way versus two-way communication, a
conversation, engagement, likes, retweets
Grow sales
Enhance brand image
Enable learning about the product/service, the firm
12
D’Amore-McKim School of Business
D’Amore-McKim School of Business
Global Online Advertising
• Mission: planning and implementation of brand objectives including
brand awareness, brand positioning, and adaptation of brand
attributes for individual markets
• Customer profiling and demographics: profiling desired target
customer segments and reaching them through media best able to
attract target segments
• Message selection and adaptation: messages tailored to desired
segments and desired customer actions
• Media economics: economics based on media availability and
media cost-benefit analysis
• Measurement: conversion using branding and advertising to move
target customers to actions, ranging from information seeking to
purchasing
• Customer prospect databases: databases from several sources
including advertising reach and response
14
D’Amore-McKim School of Business
Global Branding and Advertising
Ravi Sarathy
Northeastern University
Week 4 L1
1
D’Amore-McKim School of Business
What Is a Brand?
A brand persuades people to buy
Provides comfort to the consumer that the product (brand) will
Provide value
Perform reliably
Meet his (her) needs
Confer status
A consumer’s relationship to the brand
Perceived strengths of the product/service
Brand personality: attraction to, emotional affinity with the brand
Knowledge of, importance of and perceived status of the brand
2
D’Amore-McKim School of Business
Brand Concepts
BRAND IMAGE—How the brand is now perceived
BRAND IDENTITY
How strategists want the brand to be perceived
Should be active and look to the future
Should also reflect the brand’s enduring qualities
Can be aspirational or trusted
BRAND POSITION
The part of the brand identity and value proposition to be actively communicated
to a target audience
Guides the current advertising and marketing communication programs
Stresses brand differentiation, advantage over competing brands
THE BRAND AS A CONDITIONAL ASSET
For a brand to deliver value, requires collaboration with design, production, and
other marketing functions
No brand value if brand benefits cannot be realized
THE BRAND TERRITORY—How far does the brand extend?
Perceived competence
Specific know-how
Typical products and services
Level of quality
3
D’Amore-McKim School of Business
Brand Dynamics
Consumers at the higher levels spend more of
their budget on that brand
How do you move people up the pyramid?
High share
of wallet
Bonding
Advantage
Performance
Relevance
Presence
Source: Millward Brown
Low share
of wallet
4
D’Amore-McKim School of Business
Brand Equity: Measurement and Action
 Loyalty
◦
◦
◦
◦
Price premium
Purchase intent
Share of wallet
Satisfaction/loyalty
 Perceived Quality
◦ Quality ranking
◦ Leadership
 Awareness
 Association/
Differentiation
◦ Perceived Value
◦ Brand personality,
image
◦ Corporate image
 Market performance
◦ Market share
◦ Price and distribution
indices
Source: Aaker, David. (1996). Building Strong Brands.
New York: Free Press.
5
D’Amore-McKim School of Business
Issues in Global Branding
Global branding and regional adaptation
Choices regarding image, positioning, and communications
Stage of market and cultural influences
Market research to establish global branding parameters
Branding and Original Equipment Manufacturer (OEM)
strategies
6
D’Amore-McKim School of Business
Developing Global Brands
Clean slate brands
Image, brand personality
Strengths
Attributes: quality, innovation
Pricing
Target segments (typical user, typical buyer)
Product benefits
Positioning (competition)
Communications, style, look and feel, media, storyboards
Channel incentives
Stimulating trial, early adopters
Performance measurement
Consistent campaign over planned time frame
7
D’Amore-McKim School of Business
What Characterizes a Global Brand?
Home market strength
The brand is strong in the home market, and this strength and cash flow from
repeat sales funds the push into new foreign markets and the investment in
creating a global brand.
Geographic balance
The brand has reasonable levels of sales in the key markets of North America,
Europe, Japan, Asia-Pacific, etc. A brand cannot pretend to be global unless
people have heard of it in different parts of the world.
Addresses a similar need
worldwide
Providing a basis for a standardized message delivered globally
Country of origin, which Every global brand has a country of origin that is part of the global brand’s
is part of the global
identity. If consumers do not value the brand’s country of origin, it will be
brand’s identity
hard to create a strong intangible attribute for the brand.
Focus on a single broad
product category
Consistent positioning
Link to the corporate
brand
The brand’s main focus on a single broad product category, such as IBM or
Coca Cola, Sony, or BMW
That the brand represents the same set of practical and emotional attributes
everywhere
A link to the corporate brand, with the global brand name and the corporate
brand often being the same
8
D’Amore-McKim School of Business
American values were not seen as a central aspect of a global brand.
Source: Holt, Quelch, & Taylor. (2004, September). How global brands
compete, Harvard Business Review.
D’Amore-McKim School of Business
Dimensions of Global Brands
Quality Signal:
Source: Holt, Quelch, & Taylor. (2004, September). How global brands compete, Harvard Business
Review.
D’Amore-McKim School of Business
P. Kotler, Marketing Management (9th ed.) refers to
Five Ms in Discussing Advertising
Mission, Money, Message, Media, and Measurement
• Mission may vary with specific international market.
• Costs of advertising and media can also vary.
• Message will most likely have to be adapted to each market, as
will media choices and use.
• Media results will vary depending on each market and the
choices made, their appropriateness, and quality of execution.
• These principles can also apply to social media. (The social
media platform would be the equivalent of media used in
general advertising.)
11
D’Amore-McKim School of Business
Message
Selection
Customization
Adaptation
Production
Social Responsibility
Clarity
Mission
Sales Goals
Brand Awareness
Lead Generation
Image and
Reputation
Measurement
Sales Impact
Lead Generation
Brand Awareness
Internet Response
Money
Cost
Effectiveness
Competition
Differentiation
Returns
Media
Availability and Choice
Frequency, Timing
Balance: Traditional and Internet
communication
Social Media Platforms
12
D’Amore-McKim School of Business
International Advertising and Promotion
• How the firm communicates the product attributes/benefits to
customers
• Standardized advertising strategy may be difficult
– Variations across country markets in appeals, acceptance, positioning, costs,
culture, and laws
– Limitations imposed by language, culture, media availability, and advertising
budgets
– Lack of information on cost, coverage, and effectiveness
• Barriers to international communication
– Cultural and language barriers
– Media availability; newspapers, magazines, radio and TV; satellite and cable
TV; the Internet; Direct Mail; Billboards, etc.
– Source effects (country of origin effects)
– Budget limits relative to market size and potential
13
D’Amore-McKim School of Business
International Advertising and Promotion (cont.)
Determinants of push/pull strategies
Product type and consumer sophistication
Channel length
Media availability
Push versus pull strategies
Push strategy: personal selling emphasis
Industrial products, complex new products
Short distribution channels
Pull strategy: mass media advertising
Consumer goods
Long distribution channels
Multiple channels for marketing message
Role of web-based personalized, targeted communication
14
D’Amore-McKim School of Business
Promotions
• Appropriateness in that market
• Contests, sweepstakes, games; Coupons (cents off, rebates,
etc.)
• Point-of-purchase (POP) display
• Premiums (awards, prizes, etc.) and price-pack specials
• Sampling
• Special financing
• Channel Intermediary—allowances (advertising and display),
gifts, awards
15
D’Amore-McKim School of Business
Corporate Image Marketing
News releases, press conferences, invited and feature articles,
sponsored programs, white papers, etc.
Corporate website, “community” pages, blogs
Corporate volunteer programs, environmental and social
responsibility initiatives
16
D’Amore-McKim School of Business
References
Aaker, David A. (1991). Managing Brand Equity: Capitalizing on the
Value of a Brand Name. New York: Free Press..
Aaker, David. (1996). Building Strong Brands. New York: Free Press,
Fig. 3-1.
Kapferer, Jean-Noël. (1998). Strategic Brand Management: Creating
and Sustaining Brand Equity Long Term (4th ed.). London: Kogan
Page Ltd., p. 426.
Keller, Kevin Lane. (1998). Strategic Brand Management: Building,
Measuring, and Managing Brand Equity. Upper Saddle River, NJ:
Prentice Hall.
Kapferer, Jean-Noel. (2004). The New Strategic Brand Management.
London: Kogan Page.
Keller, K. L. Keller, & Lehmann, D. R. (2006, November). Brands &
branding: research findings & future priorities, Marketing Science
25(6), p. 740–759.
17
D’Amore-McKim School of Business
Digital Marketing and Social Media
in Global Markets
Ravi Sarathy
Northeastern University
Week 4 L2
18
D’Amore-McKim School of Business
Global Online Advertising
• Mission: planning and implementation of brand objectives including brand
awareness, brand positioning, and adaptation of brand attributes for
individual markets
• Customer profiling and demographics: profiling desired target customer
segments and reaching them through media best able to attract target
segments
• Message selection and adaptation: messages tailored to desired segments
and desired customer actions
• Media economics: economics based on media availability and media costbenefit analysis
• Measurement: conversion using branding and advertising to move target
customers to actions, ranging from information seeking to purchasing
• Customer prospect databases: databases from several sources including
advertising reach and response
19
D’Amore-McKim School of Business
Using Social Media
Social media is the media of the people—the media that people
use
To interact, to communicate, to share
To express likes and dislikes, sharing what generates engagement and
passion
Cultural context influences how social media is used
Why we share what we share
What are the triggers that cause us to take action on social media
Who do we want to share with?
Family, friends, colleagues at work, teammates, neighbors, like-minded
people, the public, prominent figures we admire or dislike, etc.
Who do people trust?
20
D’Amore-McKim School of Business
Social Media Factors
Many social media platforms: the complexity of
fragmentation—Facebook, Twitter, Instagram, Vine, Periscope,
Snapchat, LinkedIn, WhatsApp, Wiebo, Line (Korea); blogs
Each platform is an environment, like a classroom, the
workplace; how do people use that particular platform?
Platform and technology—what technology do people have?
Does an individual have multiple devices to access social media? A
smartphone, a tablet, a desktop, FitBit, Google Glass, Echo, etc.?
Or, in emerging markets: a single older device, perhaps an old phone
shared among several users (the family?)
How much time does a potential customer spend online?
21
D’Amore-McKim School of Business
The Value of Social Media
Social media influences how the potential consumer learns
about products and services, interprets their utility, and uses
them
Who uses social media—the seller/advertiser, the customer,
the developer, competitors?
How much does social media cost to use, how reliable it is, who
can be reached with that technology and platform?
22
D’Amore-McKim School of Business
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