Presentation on theme: "BROOKS BROTHERS, INC. Moving to Italy. Company History 1818: Henry S. Brooks opens Brooks & Co. in New York City. 1830: Creation of Seersucker suit. 1833:"— Presentation transcript:
BROOKS BROTHERS, INC. Moving to Italy
Company History 1818: Henry S. Brooks opens Brooks & Co. in New York City. 1830: Creation of Seersucker suit. 1833: Brooks Brothers becomes a Corporation. 1896: Creation of one of Brooks Brothers best selling items : the button-down polo collar shirt.
Company History (Cont.) 1979: Opening of Brooks Brothers stores in Japan. 1989: Partnership agreement with Dickson Concepts to open stores in Hong Kong. 1999: First Brooks Brothers airport store opens at La Guardia Airport, New York. 2001: Partnership agreements in Austria, Switzerland, and Taiwan. 2001: Brooks Brothers expands into golf equipments and accessories.
KEY FACTORS Mission Statement: To make and deal only in merchandise of the finest quality, to sell it at a fair profit and to deal with people who seek and appreciate such merchandise. Brooks Brothers clientele: wealthy families, corporate executives, political leaders, Hollywood celebrities, and sport athletes. Other product lines: Women and kids apparel and clothing. Mens fragrance, cream shavers, after-shave lotions, and deodorants.
WHY ITALY? MILAN: MILAN: the capital city of Italian fashion. the most urbanized and cosmopolitan city in Italy. Italys financial and cultural center. Presence of may others well-known designers: Armani, Versace, Gucci, D&G, Valentino, etc.
The Italian People Believe that clothing distinguishes people level of power, wealth, and status. Believe it is very important to always be dressed up nicely and well put together in any situation. Rigorously follow fashion trends and styles, and are not afraid of changes. Golf is becoming a popular recreation activity and attracts many wealthy Italians.(Brooks Brothers golf equipments and clothing will certainly profit from this segment).
They love to talk and eat together. Looking fashionable is always a top priority. They always seem to not have a care in the world. Italians have coined the phrase La Dolce Vita which means the Sweet Life.
The piazza is the central meeting place of the Italian culture. There will always be a crowd of people walking, talking and having fun in the piazza. Piazzas are usually the sites for festivals, gatherings and political events.
One of the largest parts of the Italian lifestyle is fashion. Italians have always considered themselves to be the forerunners of fashion in the world. They are all very proud of their famous designers: Versace, Dolce & Gabbana, Gucci, and Armani
There is no Italian dress code; but there is a cultural perception of casual attire. Where Americans think about quantity and value, Italians are motivated by quality and durability. Men should wear expensive, sophisticated ties and well-cut dark suits. Men often wear accessories such as cuff links, tie clips, and stylish watches Women are advised to dress simply and with elegance.
People have to observe how the Italians behave and reason their actions to understand the Italian culture. There are many dos and donts that tourists should have in mind before entering the country. This is crucial for Brooks Brothers, who will experience many obstacles to their entering strategy if they wont follow the rule of local responsiveness.
Economy 9% unemployment Revenue: 30% industry,65% services GDP per capita: PPP=$25,000
Government President: Carlo Azeglio Part of the European Monetary System Currently stable government It is a Republic
Industry Well known for its textiles Many famous designers are from Italy One of the most fashionable places in the world
Business Environment Very Intense Milan is fashion capitol of the world Latest trends Internationally famous Tourist destination Good food, sports & fashion
Brooks Brothers 185 Year old company 2002 recorded $650 Million in sales Niche Look Worn by rich & Famous (JFK) Known for quality and signature look
Weaknesses Fierce competition Tailored needs World famous brands Fitted look Culturally sensitive culture
STORE APPEARANCE 1 ST FLOOR: Casual wear, sport clothing, up-beat music targeted at younger clientele. 2 nd Floor: Elegant clothing, suits, ties and accessories, soft music targeted at older clientele. Interactive for the customer Sales associate readily available and competent.
Selling Strategy Mix of Push and Pull Strategy. Personal selling to keep in contact to customers. Advertise in sophisticated magazines.
E-MEASURE An innovative state-of-the-art technology to make customized clothing. Measurements taken by well trained sales associates Measurements transferred to manufacturing plant instantly. Final product available upon request of method of delivery of customer: Next-day delivery Two-day delivery Standard delivery
Market Entry Strategy Wholly owned subsidiary (Green-field venture) Tight control over our operations Technological know how. Multidomestic Strategy Goal: to achieve maximum local responsiveness Style is different in Italy Customization of clothes to consumers taste
Structure Vertical differentiation- decentralized structure Focus on flexibility and control over operations in Italy Horizontal differentiation- Worldwide area structure Focus on local responsiveness