Ralph Lauren is an American business organization which is founded by Ralph Lauren in 1967. Headquarter of firm is in New York City, United States. The framework of all it's products is same i.e. longevity, style and timelessness. It is popularly known for clothing as well as for different premium lifestyle goods and products which are divided in four categories i.e. fragrances, apparel, home and accessories. Cited organization targets the middle and upper class of people as their consumers. In present scenario, there are 23,000 employees working in the organization. The annual revenue of cited firm is 7.4 billion USD in 2016.
2. Discussion and Application of Theory
a. The use of marketing concepts and key terminologies
When an organization takes feedback from customers, to understand their needs and then implement some decisions for the satisfaction of customers demand (Moriarty, 2014). This philosophy of organization is known as MConclusion And Recommendationarketing concept.
There are 5 different types of concepts of marketing used by Ralph Lauren Corporation, which are as follows:
- Production Concept: This shows that the consumers favour those products which are less expensive and easily available in market (Concepts of Marketing, 2013). To achieve this concept, a managers of Ralph Lauren mainly focuses on mass distribution, higher production efficiency and low costs.
- Product Concept: This shows that the consumer prefer those, which have better quality, new features, innovative and high performance (Bose, 2010). For this, managers focuses on making better products and increases their quality over time.
- Selling Concept: In this, consumer buys only those products, which aggressively sells or promotes by cited organization. This concept comes in practice when they have overcapacity. The main focus is to sell the product that they already made instead of making new products, which is demanded by market.
- Marketing Concepts: This focuses on the needs and demands of the market and then delivers that product in the market better than their competitors (Athanasopoulos, 2014). Cited firm's main goal is to make your brand so strong that customers prefer your brand instead of choosing any other competitor.
- Societal Marketing Concept: In this, focal point of cited organization is to understand the needs of the consumers and fulfil their demands better than other competitors which maintains the well being of society and consumers.
b. Consumers make their buying decisions under various conditions, both locally and internationally, as well as online versus offline
The process of decision-making which is used by customers for any transaction in market before, after and during the purchase of any product or services is known as Buying decision process.
Buying Decisions for local market: If a customer buys the local product, then this decision helps in the growth of the local economy as the money stays in the local community (Jobber, 2012). Small local businesses create wider range of products according to the need of the customers. As the local firm will grow, number of jobs will also increase which decreases unemployment.
Buying Decision for international market: Global organization are more often in customers eye, as they use effective methods to promote their brand. Cited firm takes full advantages of big data and social media to make better connections with their customers. In quality, people trusts the global brands like Ralph Lauren more easily than any other local brand.
Buying Decision for Offline: In offline stores, customers can directly purchase their product from outlets of cited organization while in online purchasing one intermediate increases like eBay, Amazon, etc. therefore, the margin in offline is higher than the margin in online purchasing (French, 2010). Also the offline market have limited number of shops, so the number of competitors decreases. Also, it is easy to understand the actual quality of the product in physical store.
Buying Decision for Online: Online purchasing of Ralph Lauren products, decreases the costs of physical offline stores, which is the major cost factor of the brand. Same product is available at lower price as compared with offline stores (Pamela, 2016.). One can easily purchase any Ralph Lauren product from anywhere and anytime.
Conclusion And Recommendation
In fashion business world, Ralph Lauren is one of the biggest brand and doing well and also gaining market share and revenue. Cited firm makes many efforts to fulfil the needs of their customers and satisfy them. There are many threats which are faced by the organization from their competitors like Banana Republic, Zara, Abercrombie and Fitch, etc. Also new entrants are joining the market, but it is not a big issue to overcome as they have the advantage of better brand than others.
Ralph Lauren should continue to expand their brand in different countries. They should do more research to find out that which organization can bring more values to their brand. In some countries, there are many firms, which may become a strong partner for Ralph Lauren as many developing countries have good demands of luxury products of Polo. They should launch newer products as comparatively lower prices to encourage the middle class people to buy their products.
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