brooks brothers, inc. moving to italy. company history 1818: henry s. brooks opens brooks & co....
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BROOKS BROTHERS, INC.
Moving to ItalyMoving to Italy
Company HistoryCompany 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 FACTORSKEY 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. Men’s fragrance, cream shavers, after-shave
lotions, and deodorants.
WHY ITALY?WHY ITALY?
MILAN:MILAN:
the capital city of Italian fashion.
the most urbanized and cosmopolitan city in Italy.
Italy’s 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 do’s and don’ts 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 won’t follow the rule of local responsiveness.
EconomyEconomy
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
Competitive Strengths
Italians share a fondness for: Quality Fashion Beauty Fashion Tailored clothing Impeccably dressed
Weaknesses
Fierce competition Tailored needs World famous
brands Fitted look Culturally sensitive
culture
STORE APPEARANCE
1ST FLOOR: Casual wear, sport clothing, up-beat music targeted at younger clientele.
2nd 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 consumer’s taste
Structure
Vertical differentiation- decentralized structure• Focus on flexibility and control over
operations in Italy
Horizontal differentiation- Worldwide area structure
• Focus on local responsiveness