AE1 PDF- A VISUAL AND WRITTEN PROCESS ANALYSIS

MULBERRY PLC

EVE FISHER-Q79818099BA FASHION MANAGEMENT WITH MARKETING LEVEL 4

FASHION PROCESSWORD COUNT: 2721

Executive Summary:After the trend depicted in AE2 for Autumn/ Winter 2011, of Winter Bohemian, I believed Mulberry was a relevant company of focus.

This PDF aims to look at the fashion process adopted by Mulberry, and to use a variety of models and theories to answer the issues used by the fashion industry to identify trend, inspiration, product development, material and silhouettes typically used by Mulberry, ethical issues, manufacturing considerations and PLC considerations.

The report identifies the needs of the typical Mulberry consumer, and studies the process used to satisfy the needs and wants of their consumer. This report brings to focus Mulberry’s perception in the market, relative to Ready-to-Wear fashion and their key competitors. Mulberry provides a quirky, British Heritage and fulfils a niche in the fashion market of today that has proved to be a very successful brand in recent years.

Original Inspiration:

Table showing key financial information of

past 5 years (Fame 2010).

A Brief History of Mulberry

Mulberry started in 1971 in Somerset, England.

Mulberry pride themselves on being a British

Lifestyle brand, well known for their leather

goods and high quality. As well as leather

goods, the company also produces

womenswear, accessories and footwear. Today,

the company continues to expand into

international markets, opening its first US

store in 2004, as well as signing deals with

„Mitsui and Co‟ and „Sanki Shoji‟ for wholesale

distribution in Japan in 2005. The company has

overcome the recession, with huge success

globally, and remains an iconic British Fashion

Company.

Financial Information

At the beginning of the century, Mulberry were

close to bankruptcy and the company was

performing poorly. The company got

transformed by Christina Ong, and has done

very well since, steadily improving profits

every year. The only year that failed to make

like for like was 2004. There was a huge rise in

sales in 2010, with 2009 making £58.6m and

2010 making £72.1m, making a 23% increase

year on year. They could improve profit by

opening more stores world wide, and further

promoting their best selling products, such as

the Alexa and Bayswater bags.

(Mulberry Financial Graphs, Keynote 2011)

Strengths

-Mulberry has kept up with competitors and released the

Mulberry iPhone/iPad App.

-Mulberry are beginning to expand into diverse new

markets, such as dog coats.

-Mulberry have a very good ethical policy, aiming to take

action against climate change, reducing waste, animal

welfare, community involvement, fair partners and

health and wellbeing.

-Mulberry use wholesale as a distribution channel, and

gain more profit.

-Mulberry has started a blog on their website to engage

their consumers with the brand.

-Mulberry send news and updates to subscribers, as a

form of direct marketing giving them a strong

promotional mix.

-Emma Hill, creative director of the company, has

transformed the company making it very successful in

recent years

Weaknesses

-Mulberry have a very small product range, and could

diversify the brand more to increase profit.

-The Tsunami in Japan has affected Mulberry‟s ambitions

to diversify into the Japanese market. As an brand

emphasizing British Heritage, which performs well in Asia,

the company is potentially missing a huge market due to

the tragedy.

-Mulberry could expand further, by building more stores

in America, Australia and Asia. This will help them gain a

higher perception of the company, and will increase sales

and gain publicity,

- Mulberry can be highly priced, therefore alienating less

wealthy markets.

Opportunities

-Mulberry has the chance to expand into menswear, such

as garments, shoes, and accessories.

-Mulberry could use celebrities as a promotional tool. Due

to Alexa Chung being spotted with a Mulberry bag,

Mulberry launched the „Alexa‟ bag.

-Mulberry could expand more internationally, into Japan,

and throughout the USA.

Threats

-Mulberry has many competitors, as seen in the

perceptual map. This threatens Mulberry‟s market share.

-The Recession has been a major threat to the luxury

fashion market. Mulberry need to ensure they maintain

their success with competitive marketing strategies.

-Mulberry use a lot of silk and cotton, meaning the price

of cotton going up will result in prices going up or losing

profit for the company.

- The VAT rise of January 2011 posed as a threat in the

sense that customers may not be willing to spend the

excess on a luxury brand.

This is a perceptual map of the

luxury fashion market. Compared

to most luxury designer brands,

Mulberry is inexpensive, but still

retain the perception of creating

high quality products.

I have highlighted Louis Vuitton and

Burberry as their main competitors.

Burberry, as well as Mulberry, pride

themselves on high quality British

Heritage inspired designs. As a

lifestyle British brand, Mulberry

needs to ensure their products

convey this to the consumer, just as

well as Burberry, to gain market

share.

I have also identified Louis Vuitton

as a main competitor, due to the

product ranges offered by both

companies. Both companies have

built a solid customer base by

obtaining a reputation for high

quality leather goods. Mulberry

need to ensure that the products

they deliver to the consumer are

innovative, unique, and challenge

what Louis Vuitton have to offer.

Mulberry release many styles of

handbag, all categorised with

feminine names, to offer the

consumer something different.

Trend Analysis:

Pen Portrait

Mulberry focuses on consumers who

are typically professional who enjoy

quality made goods.

The Mulberry consumer is called

„Alexa‟. She is in her late twenties

and has a well paid career, owning

her own flat in Somerset. She has a

close group of male and female

friends and a partner. She has

traditional British values, and is

admired for her quirky fashion sense.

She reads a lot, enjoys travelling,

goes to posh bars with friends and

spends the rest of her time visiting

her family. She visits art galleries and

enjoys the peace and tranquillity of

the English countryside. She is a

calm, carefree person who is highly

respected. She is confident,

humorous and spirited. She adores

British fashion and owns a variety of

Mulberry bags.

Mulberry consumers are

loyal to the brand, and feel

an attachment to the

product lines especially

bags

The Mulberry brand is

perceived as high

quality, especially

leather goods. The

company is constantly

growing and is

perceived as an iconic

fashion label.

Brand Equity Pyramid (Keller)

The feelings the

consumer gains from

Mulberry is a sense of

luxury, elegance, class,

and the feeling of being

“effortlessly cool and

effortlessly British”

(Emma Hill, 2010,

Vogue.co.uk).

Mulberry

strongly promote

their company as

a lifestyle

„British Heritage‟

brand, and focus

their product

lines to sustain

this image.

According to

Georgia Fendley,

Brand Director

for Mulberry, the

brand

personality is

about

“authenticity,

attention to

detail, energy,

playfulness and

of course our

passion for great

British craft.”

Mulberry is a

luxury designer

brand, which

means the

products are highly

priced.

Mulberry‟s brand is

high quality,

therefore products

are well made and

durable.

The Mulberry brand satisfies the needs

of the consumer, by involving them

with the lifestyle and the fantasized

idea of being part of the British

Heritage. The range of Mulberry

handbags is a big part of their brand

image, and represents the British

Heritage that the brand offers.

LFW is the main trade show Mulberry uses to promote

their latest trends. In LFW 2011, Mulberry had a

„Fantastic Mr Fox‟ theme, using props such as

mushrooms, trees, and a leafy green backdrop.

Imagery

Salience

Performance

Judgements Feelings

Resonance

Political

-The amount of disposable income that

consumers have will have decreased with the

recession, resulting in changing customer

buying habits.

-Global warming means fashion is changing.

Mulberry have been inspired to make an

impression, and have incorporated „garden‟

designs in new stores. This concept is derived

from the environment, and the idea is to

preserve nature. Their Autumn/Winter 2011

show also shares a „natural‟ theme, with trees

and mushrooms used as props. This relates to

our winter bohemian trend.

Economic

-The recession has obviously hit the luxury

fashion market hard, however Mulberry

continue to be very successful.

-The VAT rise of January 2011 has made prices

for Mulberry‟s products higher, which could

result in customers being more careful with

their money.

-The rise in the price of cotton, a popular

fabric used by Mulberry, means prices of

garments will increase.

Social

-Consumers are increasingly aware of the

ethical procedures a company operates, and

Mulberry have acted on this by creating a

policy ensuring they act on climate change,

reducing waste, animal welfare, health and

wellbeing of employees, community

involvement and fair partners.

-Consumers are pushing a demand for organic

fabrics. Mulberry use pure silk, cotton, and

wool in their garments. The props used for A/W

2011 showed a natural theme.

-Animal awareness and welfare is a huge

concern. Mulberry recently named the seating

rows at LFW with animals, and held a

„Fantastic Mr Fox‟ theme.

Technological

-Mulberry has created an iPhone and iPad App,

which allows the consumer to look through the

collection, purchase, watch videos of seasonal

shows, locate the nearest store and read the

latest blogs. Consumers can share their

favourite items on social networking sites, such

as Facebook and Twitter.

-Mulberry constantly ensure their website is

interactive with their consumers, by publishing

reports, policies, videos of their catwalk

shows, writing a blog, and allowing people to

look through their look book. They also use e-

marketing, by sending regular promotional

emails to subscribers. Engaging consumers with

the trend will inevitable sell it.

Ansoff Matrix

This is a business method to

determine marketing strategies.

Mulberry would be considered Market

Development. They‟re expanding

internationally, as well as

collaborating with American store,

Target, to create more affordable

bags for fans who cannot afford a

„ready to wear‟ handbag. I would

argue that they promote the same

products to different markets,

possibly to avoid ruining the brand‟s

image of „British Heritage‟. They

could diversify by developing a

menswear range. At the moment,

they only sell men‟s bags. They have

recently opened a new store in

Beijing, aiming the British Heritage

Lifestyle at a new market. British

Heritage brands, such as Burberry,

have proved very popular to the Asian

market, and with continual growth

Mulberry should be successful in

targeting this new market. I would

also partially argue that they haver

begun to diversify, offering iPad

covers and „dog coats‟. However,

these products are not particularly

innovative and different, and there is

not a huge risk in creating these new

products.

Existing Products New Products

Exis

ting M

ark

ets

New

Mark

ets

River Island,

£36.99Mulberry Tillie Bag,

£825

Trickle Down Theory-

Mulberry‟s handbags and „British Chic‟ style have been so

popular, that high street constantly creates replicas of the

famous „Alexa‟ bag, as well as imitating the ready to wear

ranges. This is the trickle down theory; the idea that fashion

begins at designer level, and then trickles down to bridge

and high street level.

Mulberry Bayswater, £675

Mulberry Mini Alexa, £1379 ASOS, £85

Bubble Up Theory-

Mulberry have always been inspired by the idea of „British

Heritage‟ fashion. The style of their bags can be compared to those

of the briefcase and satchel, items which have been possessed for

centuries by middle class men. The briefcase and satchel have

always been used as practical items, for carrying possessions and

important documents. However, the iconic satchel is now

considered a unisex accessory, and has been the main source of

inspiration for the „typically British‟ Mulberry handbags. Alexa, a

style of bag created by Mulberry, is a well known tribute to Alexa

Chung, who created a fad with her satchel handbags and „British

Chic‟ look.

Topshop Leather Satchel, £85

Product Category Analysis:

Economy Penetration

Skimming Premium

Mulberry uses a

Premium Price

strategy, due to the

high quality of the

products. Mulberry

have penetrated the

market, therefore

increasing their

brand‟s value.

Quality

Pri

ce

Low

Low

Hig

h

High

Question Marks

I would say that Men‟s bags

would be a question mark, as

well as menswear if they

diversify into this market.

Mulberry establish

themselves as a fairly

feminine brand.

The new range of iPod and

iPad cases.

Stars

I would say the „Alexa‟ is the

star. Ever since Alexa Chung

was seen with a Mulberry,

their popularity has soared.

It is their best selling bag.

The Tillie is meant to be an

evolution of the Alexa, and

has also been performing

well.

Dogs

As a ready to wear designer

brand, it is difficult to

distinguish dogs in the

market, as anything can be

shown on the catwalk.

Cash Cow

The Cash Cow for Mulberry is

always their range of

handbags, which has become

iconic. They have many

ranges, all with names, such

as the Bayswater, Roxanne,

Mabel, Mitzy, Tillie, Taylor

and Alexa. The Bayswater

and the Alexa are the cash

cows.

Hig

h

High

Low

Low Market Share

Mar

ket

Gro

wth

Mulberry are well known for their bags in their

company, and create many different styles. They

also sell womenswear, men‟s bags, accessories,

purses and wallets, travel gear shoes, and more

recently dog coats and iPod and iPad accessories.

They continue to diversify their products, but would

allow further diversification by creating a menswear

range. Their most popular product is the Alexa

handbag, inspired by Alexa Chung, which aims to

capture her “coolest girl in sixth form sensibility,”

(Emma Hill, Mulberry’s creative director, 2010).

Boston Matrix- This categorises products in Mulberry to levels of success.

Stars are products which are selling well currently, Cash Cows are products

which will always be best sellers, Dogs are products which are performing

poorly, and Question Marks are products which could do well, or go the

opposite way and perform poorly. Dogs are difficult to distinguish is Pret a

Porter fashion, as anything can be seen on the catwalk and considered

„artistic‟ and „creative‟. I have also drawn up a Price Strategy Matrix,

confirming that Mulberry use premium pricing with their product range. The

quality and innovativeness of the brand reflect the high price points their

products sell for.

Fad The fad product of Mulberry would be the Alexa,

the product that is in high demand from

consumers due to the British fashion icon, Alexa

Chung, whose fashion sense is admired and

imitated by consumers. This product allows the

consumer to buy into her incredible, no effort,

British look. Fad would be a star in an Ansoff

Matrix.

Fashion The fashion trend throughout Mulberry for

Autumn/Winter 2011 is the theme shown at

London Fashion Week, „Fantastic Mr Fox‟. There

was a strong nature element throughout the show,

indicated by props used as well as the colour

scheme. The fashion would be the women's „ready

to wear‟ collection, closely linked to the Winter

Bohemian trend identified in AE2. Fashion would

be a question mark in the Ansoff Matrix.

Basic/ Core The basic/ core product for Mulberry would be

accessories, purses and travelling goods. Their

traveling goods are focused for practicality rather

than fashion, as well as their purses and basic

accessories e.g. a scarf, or a Blackberry case.

Basic/ Core would be a dog in the Ansoff Matrix.

Classic The classic product would very much be the

Bayswater handbag. It is always a best seller

within the company, and has a classical, elegant

look which will never go out of fashion. It is the

cash cow of the product range, and will always

perform successfully. This would form as a cash

cow in the Ansoff Matrix.

Material Analysis:

Core Fabrics

Mulberry use a lot of high quality fabrics, mainly silk, wool,

linen and cotton in their womenswear ready to wear

collection. All their bags use natural leather, and are made

to the highest quality. They use a lot of natural materials,

meaning they gain appeal from a market demanding natural

fabrics. The trend focused upon in AE2 demonstrates how

the „Winter Bohemian Luxury Fashion Consumer‟ would love

Mulberry for the use of natural, high quality fabrics, due to

the current issue of animal welfare and global warming.

Mulberry‟s policy is dedicated to sourcing fabrics ethically

and to ensure employees are happy and healthy. They use

fair trade when available and suitable for the business‟

needs.

LFW and Mulberry

Mulberry use LFW as a key show

to promote their latest

collections. For the Autumn/

Winter 2011 collection, Mulberry

made their show stand out by

using various props, such as trees,

mushrooms, silk birds perched on

trees, as well as sounds of owls,

dogs barking and cats miaowing

being played during the show.

London Fashion Week is where

Mulberry can really make an

impression on the world, and

show their ready to wear

collections in true English style.

Peggy Dress, 100% SilkShort Sheepskin Duffle Coat, 100% Sheepskin

Culottes, 77% Wool,16% Polyester, 6% Nylon and 1% Elastane

Sparkle Tweed Bayswater Bag, 100% Leather

(All Images from Mulberry.com)

(Goo

gle

Imag

es, 2

011)

(Corporate Social Responsibility

2011, Mulberry.com)

Canary Yellow Navy Blue Maroon Lilac Warm Beige Deep Purple Rose Pink Light

Teal

Mulberry’s Autumn/ Winter 2011 Collection, Google Images

These were the key colours for fabric in the Autumn/ Winter 2011 collection, all have an essence of Winter Bohemian. The colours

represent the autumnal English colours, of rich plums, lavenders, beiges, greys, blues and greens. Mulberry are inspired by nature,

as reflected in their colour palette. This relates to the trend of „Winter Bohemian‟, and we can see how the increase of animal

awareness and global warming has inspired a natural theme throughout the collection.

Silhouette and Trim Development:

Mulberry’s Silhouette

Mulberry, like most companies, tend to design similar

silhouettes every season. Most of their dresses are nipped

in at the waist, or on the hips. The Autumn/Winter 2011

trend of maxi dresses and skirts has meant that silhouettes

are becoming longer, and Mulberry has adapted this trend

to their classic silhouettes. In the Autumn/Winter 2011

show, every item is nipped in at the waist, usually with a

belt. Other silhouettes included A-Line and tulip skirts. The

Maxi and Midi was popular in this collection, and layering

was seen on some of the designs.

Trims

Mulberry used a lot of fur trims in their Autumn/ Winter

2011 collection, as well as embellishment and giant

buttons. This links in with the depicted trend of „Winter

Bohemian‟, as focused upon in AE2. They use signature

rivet detailing on their bags.

Labels

Mulberry always label their bags and purses, with the

Mulberry tree logo and engraved onto them is „Est. 1971‟,

the year Mulberry was founded. In the interior of their

bags, they imprint the tree logo, as well as on the zips.

There is an internal plaque imprinted as well. Replicas are

usually easy to spot due to lack of the original trademarks

of their bags.

Tulip SilhouetteNipped in at

the hipMax

i

Layered/ Midi A-Line

Traditional Mulberry Silhouette

Classic Product Line

As one of Mulberry‟s most iconic products, I have chosen the Bayswater

handbag for their classic product line. To ensure the product does not go

into decline, Mulberry release new designs and adaptations of the

Bayswater every season. They change the colours, materials, textures,

patterns but retain the classic shape. For the trend depicted in AE1 of

Winter Bohemian, I have researched Mulberry‟s Autumn/ Winter 2011

colour palette and noticed maroon was a key colour in their shows, based

on the theme of nature and the English countryside. I chose a knitwear

pattern, thinking it was relevant to the huge knit wear trend for the

upcoming season. I kept leather detailing on the handles and panels, and

believe it resembles a Mulberry seasonal edition of the Bayswater, relevant

to the trends of Autumn/ Winter 2011 collection.

Fad Product Line

For the fad product line, I chose the popular „Alexa‟ handbag, launched at

the beginning of 2010 which has been a favourite ever since. I have depicted

this product because when it came around, consumers saw Alexa Chung as a

style icon, and wanted to capture her quirky British look, and the Alexa

quickly became a desired fashion accessory. To ensure the product does not

decline, the Alexa is released every season to comply with the current

trends. In AE2, I observed a lot of Ready-to-Wear companies had used snake

skin for Autumn/Winter 2011 (including Burberry, a huge competitor of

Mulberry). I designed the seasonal Alexa fad with a beige snake skin print,

but retained the signature brown colour that Mulberry‟s consumers love. As it

is a subtle pattern, this bag reflects the signature look of an Alexa whilst

complying with the upcoming trend. It very much relates to Winter

Bohemian.

Fashion Product Line

Changing the colour-

Autumn/ Winter 2011

Mulberry colour palette.

For the fashion product line, I chose a twist dress from Mulberry‟s

collection. It‟s a simple dress, but captures their traditional

silhouette of having a nipped in waist. Most companies release a new

colour once the fashion product falls into maturity, to match the

seasonal colour palette. I observed that canary yellow was a popular

colour in the Mulberry Autumn/Winter 2011 collection, inspired by

the colours of the English countryside to retain the British Heritage

brand. I then tried overlaying a floral pattern onto the same design,

to symbolize this theme. I believe these designs reflect Mulberry‟s

brand.

Basic/ Core Product Line

For the basic product line, I identified the Mulberry purse range. This is

because their is consumer demand for matching Mulberry purses to go with

their bags. The product is in maturity, meaning it is constantly profitable and

will always be a popular purchase. However, the Mulberry purse needs to be

reinvented every season to match the seasonal bags available. This is why I

have designed one with a snake skin pattern. It matched the Alexa fad design

I created, meaning a matching purse would be in demand for Autumn/Winter

2011. It is applicable to the trend of Winter Bohemian, and ensures the

company keep up with their competitors offering the same product. Like my

other designs, I believe it captures the Mulberry brand well.

Manufacturing Concerns:

Threat of New Entrants- Mulberry

are threatened by Burberry, a British

Heritage Brand who have lowered

their price points in recent years to

keep up with consumer demand.

Bargaining Power of Buyers-

Mulberry are market and product

orientated, meaning that they

focus on penetrating their

market, and expanding their

products.

Rivalry

amongst

existing

competitors

Threat of Substitute Products or

Services- Burberry are expanding

into leather goods, meaning the

market share could be taken by

Burberry.

Bargaining Power of

Suppliers- Mulberry

prides themselves on

manufacturing their

products within the

UK.

Porter’s Five Forces

This model is used amongst businesses to define threats and demands

of the market. I have identified where Mulberry are threatened by

Burberry‟s entrance into targeting a less affluent consumer, and how

Burberry expanding their leather goods could be a threat to Mulberry‟s

market. The power of their consumers and suppliers has further been

expanded using this model.

Mulberry and their Manufacturing Procedures

Mulberry pride themselves on how ethical their manufacturing

procedures are, and how each product is made out of fine materials

and is produced to the highest quality. They aim to “maintain and

increase the levels of manufacturing in the UK,” (Mulberry. 2011)

however they currently have suppliers in the UK, Spain, Turkey and

China. They carry out procedures to ensure that employees in their

factories are fairly treated and not discriminated against. Mulberry

enforce their standards at their factories with regular visits from

employees and third party auditor, to ensure that the manufacturing

procedure is ethical, both globally and in the UK. When Emma Hill,

creative director of Mulberry, was asked if manufacturing in the UK

was important, she replied “Extremely! It‟s an honour to work for a

brand that has a factory in the English countryside and is still investing

in its UK manufacture – it really is a rare and beautiful thing.” (Liberty

London Girl Blog, 2011).

Horizontal Product Integration

Mulberry use horizontal

integration, meaning that they

expand their products to the same

market. Their current market is

performing well, so Mulberry are

penetrating the market by

creating new, innovative fashion

products. They have reopened

their Somerset factory, in order to

manufacture these products.

Mulberry‟s firm strategy consists of market penetration and product development.

They aim to continually please their target consumer, by finding new, innovative

ways to communicate with the consumer. They want the consumer to be loyal to the

brand, and try and engage them with iPhone Aps, social networking (where they

personify the brand e.g. „love, Mulberry‟ after every status update), blogs, history,

„Evolution of the Alexa‟ and now a book. They constantly update their classic bags,

making them out of new fabrics, new patterns, new sizes and new colours. They

create a desire in their consumer for the latest Mulberry products.

Demand conditions translates as to how a company is required to keep

up with customer demand and to deliver innovative new products to

beat their competitors. After such a successful collaboration with

Target, Mulberry have a huge demand from consumers to expand into

America. They currently have one store in New York, meaning they

could potentially be missing out to competitors such as Louis Vuitton

and Burberry, who currently have many stores in the US. Mulberry are

missing out due to competitors, a threat mentioned in the SWOT

analysis. As a British Lifestyle brand, Burberry have proved how

successful they have been in the US, meaning it could be a significant

opportunity for Mulberry.

Mulberry have a strong marketing strategy and so far, creative

director Emma Hill has managed to retain heritage but promote

the brand creatively. As mentioned above, Burberry and Louis

Vuitton are Mulberry‟s main competitors. Mulberry need to

diversify the brand more by expanding into new markets with

products they want. The Target/Mulberry collaboration worked

well, because it entered the market with a low price point, but

retained the brand‟s values of craftsmanship and quality.

Mulberry have pursued the idea of

expanding a designer brand with a high

street one. This has made them a

recognised designer in the US, creating

an opportunity to be instantly profitable

in this country. The demand is high for

Mulberry, and expanding into this

market would prove to be successful.

They plan to diversify into North

America, as well as expand in the USA.

Ethical Considerations:

As a huge, global company Mulberry have a responsibility to ensure that

they carry out legal, ethical procedures and that employees are being

treated fairly and equally. Mulberry are keen to involve their consumers

with their Corporate Social Responsibility document, to raise awareness

of how their company operates, and the measures they are taking in

order to meet ethical standards and legislations. Mulberry target an

intelligent consumer, one who is conscience of the world, and ethical

issues will be significant to them. The Mulberry consumer expects this

company to be ethical, and expects them to do everything In their power

to fulfil this.

Mulberry have recognised the demand for ethical products. As

we can see in the Corporate Social Responsibility document,

Mulberry only work with people who have similar ethical

values, and they use fair-trade alternatives when available.

Here are key facts which indicate the demand for ethical

fashion.

-Respondents who strongly agreed they would never buy

clothing or footwear from a company that exploited its

workers were more likely to be women (35.4%) and aged 25

or over. (Keynote, 2008). This fits in with Mulberry‟s target

market, meaning that ethical procedures are important to

their consumer.

-”This growth is being driven by stronger consumer demand

for fairly produced and sustainable clothing, and that

demand is being met by growing numbers of ethical brands

with and without their own retail outlets, and now

increasingly joined by the high street majors.” (Mintel,

2009). This quote suggests that ethical fashion is in high

demand, and provides an opportunity for Mulberry to expand

into this potential market.

-”Sustainable alternatives, such as bamboo and recycled

clothing and textiles, offer particularly good potential to

increase volume to meet growing demand into the future. In

the mean time, increased supplies of fabrics like organic

wool, peace silk and hemp silk are enabling designers to

expand further into sectors like outerwear and evening

dresses.” (Mintel, 2009). Mulberry, as a luxury brand, could

source these materials to help them gain a reputation for

being a ethical fashion retailer, which will inevitably improve

their brand image and appeal to their target consumer.

Cultural Influences:Macro factors are always going to affect Mulberry, whether it is influencing current

trends or changing their policies due to new legislations. This section will look at the

cultural influences affecting the company.

Political

Political issues, such as unemployment, wars, global

warming and current issues will always affect how a

company like Mulberry operates. For example, global

warming has led to Mulberry switching to renewable

energy sources, minimalizing their carbon footprint and

decreasing the amount of chemicals used in production.

Economic

Economic issues tend to change the typical buying habits

of a consumer. For example, the recession and rise in VAT

has made consumers more reluctant to spend money on

items considered a luxury in order to cut costs. People

have less disposable income, so Mulberry aim to penetrate

the market to encourage more spending. The rise in the

price of cotton means Mulberry will research into

alternative materials, or raise their prices for cotton

garments. We can see „a pendulum swing‟, as the

recession of the 1970‟s is repeating in current day, so is

the 1970s bohemian hippie trend.

Social

Social issues affect what consumer‟s demand from a

company. For example, people are increasingly aware of

animal welfare, the environment, and traditions held

within a culture change. Consumers are increasingly

aware, and the demand for ethical fashion has influenced

Mulberry‟s Corporate Social Responsibility.

Technological

Technology is continually advancing, meaning companies

need to advance with it to keep up with competitors.

Mulberry have taken all the opportunities technology can

offer, by updating blogs and social networking sites, using

e-marketing, creating iPod aps, and by having an

interactive website with features to engage the consumer

(Evolution of the Alexa, History of the brand, and allowing

the consumer to stream catwalk shows).

Environmental

With a rising concern for the environment, Mulberry

continue to make the company more environmentally

friendly to keep up with consumer demands. Mulberry are

taking action to ensure they reduce their waste and act

on climate change. By using UK factories, they reduce

their carbon footprint.

Legislation

Mulberry always need to be aware of the latest

legislation, so they take out the right policies and do not

break the law. Legislation in a business involves equal

rights and opportunities, protecting the employees data,

and not using endangered animals for fabrics. Legislation

will always dominate a business.

To be successful, Mulberry need to constantly develop

their target consumer. Mulberry use Demographic

Segmentation, meaning they define their target

consumer by demographics. They aim their products for

women, between the ages of 25-40. Their consumers

are typically professional, in the social grade ABC1.

They have disposable income for luxury goods, and love

the British Heritage Mulberry offers.

Butterflies

Butterflies are profitable but not loyal. Mulberry need

to attract this customer in order to maintain

profitability.

True Friends

These consumers are highly loyal and highly

profitable. To maintain this, Mulberry need to listen

to and research this consumer to keep up with their

demands. This will enable them to deliver what they

need and want.

Strangers

These consumers are not loyal and very low in profit.

Mulberry should not aim to these consumers, as the

company does not relate to them.

Barnacles

Barnacles are loyal, but not profitable. As a luxury

company, Mulberry is expensive, however the

collaboration with Target would have engaged this

market.

Hig

h

Pro

fita

bilit

yLow

Pro

fita

bilit

y

Short Term Customers Long Term Customers

Customer Relationship Matrix, (Kolter 1986)

PLC Considerations:

As an innovative

luxury fashion

brand, Mulberry

need to consider

the product

lifecycle, in

relation to retail,

promotion and

products. This

model will help the

company

determine

promotional

strategies,

marketing

strategies, and will

distinguish when

different product

categories are in

growth, maturity

or decline. This

helps the company

with time

management, so

when a product is

in decline, they

can release a

product in growth.

Intro Early Growth Late Growth Maturity Maturity Decline

Competitors

Customers

Profitability

Risk

Early AdoptersInnovators Early Majority Late Majority LaggardsLate Majority

Very Few SomeSeveral

Competing

Many players. Competition

kills off and consolidation

begins

Few

Competitors

Uncertain High Declining Declining Minimal

High Lower Moderate Higher Highest

The Retail Life Cycle

Below is a retail life cycle, depicting what type of consumers buy products at particular

stages of the product life cycle. Talking about this cycle from the company‟s perspective, it

is clear to see that Mulberry are in late growth. They have several competitors, have gained

a large fan base and are continuing growth. Sale

s

Time

Product Life Cycle

The product life cycle is a method used to show where a product is in the market, and can

be used to show when the product will stop being profitable. On this page, I am going to

identify four types of product and draw a product life cycle for each one, fashion, fad,

classic and basic/core.

Sale

s

Sale

s

Sale

s

Sale

s

Time Time

TimeTime

Fad Fashion

Classic Basic/ Core

.

Intro

IntroIntro

Intro

GrowthGrowth

GrowthGrowth

MaturityMaturity

Maturity Maturity

DeclineDecline

DeclineDecline

Ansoff Matrix

The fad would

require product

development, as

new products need

to be continually

introduced.

The Fad product has

a quick growth,

quick decline and

maturity.

Ansoff Matrix

The fashion would

require product

development, in

order to gain profit.

The Fashion product

gradually grows, has

a short maturity

before declining.

Ansoff Matrix

The Classic would require

market development and

penetration, to maintain

the consumer‟s interest

and draw new market in.

The Classic product

grows, then declines

until a new adaptation is

released, making growth

creep back up.

Ansoff Matrix

The basic product would require

market

development and penetration to

draw new markets in, and hold

their markets

interest.

The Basic/Core Product has a

gradual growth, and spends a

long time in the maturity phase.

Promotion and the Product

Life Cycle

This model shows what

mediums of promotion

companies should follow at

different stages of the Product

Life Cycle, to ensure their

product gains as much

awareness from consumers as

possible and to maximise the

potential profit of a product.

When a product is first

launched, the aim of

promotion should be to

increase awareness and create

a desire for that product,

before using persuasive

advertising to encourage a

purchase from the consumer.

They should then reinforce this

message by reminding the

consumer about the product,

before changing the price of

the product whilst it begins to

decline, to further encourage

the consumer. Only seasonal

products go on sale in

Mulberry, classic and basic

items such as the Bayswater

never do. This is because these

products remain in the growth

and maturity stages of the

product lifestyle and are

unlikely to go into decline.

In relation to the Boston Matrix and Customer Relationship Matrix:

Question Marks:

When a product is

introduced, it is

uncertain whether the

product will do well.

Barnacle:

Barnacles are loyal to

the company, and act

as innovators for the

product. However,

they are not very

profitable.

Cash Cows:

A product which stays in

maturity for a long period

of time proves the product

is highly profitable, and

will be for a long period of

time.

True Friend:

This consumer is loyal and

profitable, and maintain

the profit made by a

product.

Stars:

If a product is in

growth, it is an

indication that the

product is performing

well and gaining profit.

Butterfly:

Butterflies are

profitable but not

loyal, so persuasive

advertising is necessary

at this stage.

Dogs:

If a product is in

decline, the

product is no

longer

profitable,

making it a

„dog‟.

Stranger:

Strangers are not

profitable or

loyal, therefore

generating no

profit.

Category Fabric Product

Line

Image/

Style

Description Sizes Colour Sale

Price

Country

of Origin

Launch

Date

Alexa Soft

Buffalo

Leather

Bags British

Chic

Inspired by

Alexa Chung,

the bag is part

Elkington and

part

Bayswater.

Comes in 3

sizes, the

„Mini Alexa‟,

the „Alexa,‟

and the

„Oversized

Alexa

Comes in a

variety, but

usually

brown.

Standard

Alexa is

£785,

Oversized

Alexa is

£925 and

Mini Alexa

is £525.

Somerset,

UK

January,

2010.

English

Plum Twist

Dress

59% Wool,

41% Silk

Dress Vintage,

Occasion

Wear

Nipped in at

the waist,

flared skirt

with a twisted

neck line.

UK Size 6- 14 Plum £1016 Somerset,

UK

Spring/

Summer

2011

French

Purse

Natural

Leather

Women‟s

Purses

Simplistic 8 Card Slots,

Popper

Closure,

Mulberry

Plaque,

Internal Zip

Pocket

Height: 9.5cm

Width: 14cm

Depth: 2cm

Black £200 Somerset,

UK

New

Designs

every

season

Bayswater Oak

Natural

Leather

Bags Iconic,

British

Heritage

Influenced

from the

Satchel and

Briefcase, one

of Mulberry‟s

most iconic

designs

Height:

26.5cm

Width: 36cm

Depth: 16cm

Handle Drop:

15.5cm

Comes in a

variety of

colours,

usually

brown

£675 for a

basic

Bayswater

Somerset,

UK

New

Designs

every

season

Fad

Fash

ion

Cla

ssic

Basi

cMulberry Range Plan

Below are my suggested product lines for fad, fashion, classic and basic. I have drawn a range plan for each product, a method used

by industries to plan stock and how and where it will be manufactured then released into stores. Details such as size, colour,

materials and suggested retail price is all noted, to ensure the stock is made to the right standard. The fashion industry typically

forcasts a trend, designs it, plans the physical process of creating it, before manufacturing and delivering to stores. This range plan is

simplistic, as information was limited.

Strategies,

Tactics and

Actions

Internal Strengths Internal Weaknesses

External

Opportunities

Mulberry are very good at promoting the

British Heritage Lifestyle.

Mulberry have created iconic bags, well

known globally in the fashion industry.

Mulberry have expanded internationally,

and have performed well financially

throughtout the recession

Mulberry can expand their market more, by

opening stores in Japan and America. British

brands have proved to have done well over

there, such as the Target collaboration and

Burberry‟s Asian market.

Mulberry lack a menswear

range, which essentially is

ruling out a huge market.

Mulberry need to develop their

womenswear to the same

degree of fame as their bags.

Mulberry could use menswear

as an opportunity to diversify.

Mulberry could use the

opportunity of the global

market to diversify, developing

new products for new markets.

External Threats The Tsunami in Japan, which occurred early

in 2011, has alienated the possibility of

opening a store in this country in the near

future, creating a threat of losing profit and

wasting time for not building a fan base of

the brand.

Burberry threaten Mulberry, due to the basis

of British Heritage themed brands. Burberry

have expanded and grown globally, creating

a threat for Mulberry to fall behind the

market.

The threat of creating a

menswear range would be the

expense and time spent

developing and creating it.

Mulberry is a feminine brand,

so it could essentially destroy

the brand if it fails to do well.

Expanding globally could be a

risk, due to the possibility of

consumers feeling

unconnected with the brand,

therefore gaining bad public

relations.

TOWS Analysis

This diagram is a more

developed SWOT

analysis, looking at

how a business

interprets external

threats and

opportunities, and

reacts based on

weaknesses and

strengths. It is better

used for determining a

marketing strategy, to

see where the

company is performing

well, and where they

are performing poorly.

This analysis looks at

Mulberry and what

risks they gain from

opportunities, and

what holds them back

from changing a

weakness.

Harvard References:

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d%3d

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intelligence/view/product/2179/green-and-ethical-consumer?highlight=ethical+clothing&utm_source=kn.reports.search

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fortunes.html