MKT3063 AS1 E-PORTFOLIO
4. TACTICS
Tactics refer to the details of strategy (PR Smith, 2022). The ‘Technology & Tailoring’ campaign will analyse the tactical decisions recommended for Balenciaga through an application of the marketing mix (Figure 1.5) and the marketing communications mix (Figure 1.6).
Figure 1.5 - Marketing Mix Tactics For Balenciaga
Figure 1.6 - Marketing Communications Mix
Figure 1.5 - Marketing Mix Tactics For Balenciaga
4.1 TACTICS FOR STRATEGY 1 - PRODUCT DEVELOPMENT
PRODUCT
The luxury products will be made to measure with a focus on impeccable quality and fit. The main product categories that the bespoke tailoring service will apply to include suits (Klarna, 2022), formalwear (BoF & McKinsey & Co, 2022), outerwear and streetwear. However, the trend of customisation will also be available across trainers, footwear and leather goods accessories to attract Gen Z luxury consumers (WARC, 2022) who want to access the brand through entry-level products, although certain aspirational consumers have been purchasing less due to the recession and a lower discretionary income (Zweiglinska, 2023).
PRICE
The made to measure service will not cost any extra to the client as an individual service. However, the price of the bespoke clothing will reflect the hand-made tailoring aspect and incorporate the extra labour required through a cost plus pricing strategy. Balenciaga will communicate the ‘enduring value’ of the bespoke tailoring service in order to justify the higher cost to the target consumer (WARC, 2022).
PLACE
The bespoke tailoring portal will be exclusively available online via a sign-up link, which will transport website visitors to the metaverse. Customers will be able to login to a virtual portal that stores personalised measurements. Purchases can be made across all channels; virtual, digital and in-store, reflecting the fact that Gen Z luxury consumers are ‘platform agnostic’ and channel fluid (O’ Shea, 2023). The customer can buy a digital rendering of the clothing online as an NFT or instead opt for a physical version of the bespoke item to collect in store (Lee et al, 2020) at a Balenciaga boutique or have delivered to their home address.
PROMOTION
The new made to measure, tailoring service will be promoted via direct mail, as this marcomms tactic allows high targeting, personalisation, and control (PR Smith, 2022). The email will be sent with an exclusive access-only link to the metaverse. The consumer will have the opportunity to customise designs and visualise the final product through augmented reality VTO (Douglass, 2023). The use of a social media ad and #bespoke balenciaga further encourages consumer co-creation, whilst video content marketing visually updates customers throughout the stages of garment construction to enhance storytelling (Lidbury, 2023).
4.2 TACTICS FOR STRATEGY 2 - MARKET PENETRATION
PRODUCT
The existing products will remain the same, as the strategy is market penetration. However, Balenciaga could extend existing product lines in its haute couture and ‘Garde Robe’ collections to further generate awareness of Balenciaga’s brand heritage in tailoring.
PRICE
Pricing is competitive in the luxury fashion sector with many key players increasing prices in order to maintain market share and heighten consumer demand (Danziger, 2022). As ‘millennials purchase power is rising’ and Gen Z prefer experiences to physical goods (KPMG, 2022), Balenciaga is well positioned to increase pricing. However, it is recommended that any shift in price is transparent, as consumers face the cost-of-living crisis (Halley, 2022).
PLACE
The share of online sales for personal luxury goods is forecast to represent 1/3 of all luxury sales by 2030, primarily driven by monobrand online stores and technological opportunities in the metaverse (Bain and Company, 2023). Therefore, Balenciaga will create awareness about the brands heritage through consistent integrated marketing communications across multiple online channels including on social media, the brand website and mobile to deliver value to digitally-attune Gen Z and millennial consumers. An omnichannel approach is also important in building consumer-based brand equity (Becagli and Milanesi, 2021). Balenciaga will adopt phygital retail by capitalising on the opportunities within experiential marketing innovation, particularly in the virtual world through AI and AR (Bui, 2023).
PROMOTION
To promote awareness of Balenciaga’s brand heritage amongst the target consumer segment of 18-34 year olds through the strategy of market penetration, Balenciaga will host a live public relations event in the form of a virtual fashion show. The event will be hosted in Balenciaga’s haute couture flagship store in Paris (Parkes, 2022); however, it will be available to watch live in the metaverse, opening up accessibility to a global audience (Lannevere, 2022). The theme that the event will convey is a return to quality craftsmanship and the history of the fashion house. In addition to this, the event will communicate the message of inclusivity, featuring models with diverse body types (Banks-Walker, 2022) to respond to consumer demand for representation (WARC, 2022). The event will be promoted on social media platforms with a QR code to enable the target consumers to access the branded digital experience easily (Stanley, 2022)
4.3 TACTICS FOR STRATEGY 3 - MARKET PENETRATION
PRODUCT
The products for this strategy will not vary as a market penetration focuses existing products on the existing target market.
PRICE
As the strategy for this objective relates to educating and connecting with consumers through the brand website, there is no particular tactical decision for Balenciaga’s price in this instance.
PLACE
The objective behind this marketing penetration strategy involves increasing visitors to Balenciaga’s website. Therefore, a lot of the promotional material will feature online, as share of online sales channels is expected to exceed 30% by 2025 (WARC, 2022).
PROMOTION
The tactics to achieve this market penetration strategy involve a partnership with Cristobal Balenciaga Museoa, a podcast with fashion historians and video content of Balenciaga’s pattern cutting skills to inspire future generations of couturiers and fashion designers. The affiliate marketing partnership between Balenciaga and the museum in Spain will be displayed on the brands website alongside links to the video and podcast. This integrated approach will allow consumers to navigate Balenciaga brand history and engage in an online community.