Ch. 4 - The Marketing Environment

Ermenegildo Zegna has a thin target market when it comes to the affordability of their suits. If you walk into a boutique, lets say the one on Madison Avenue, and want to buy a suit, you will have to bring at least $3,000. And for a while that was the cheapest Zegna suit you can get. Their target market was businessmen, lawyers, doctors, stockbrokers, etc of the “baby boomers” era. They even have specific made-to-measure suits that can cost you upwards of $7,000. Although this is an insane amount of money to spend on a suit, it is worth the quality and those who study fabric and fit will agree. Zegna does not have high mark-ups on their suits just to make money. The fabric they are using can be wools that are very rare and hard to get, difficult to produce, and very delicate. Zegna clientele understand the importance of quality of fabric and are willing to purchase expensive suits. But Zegna didn’t want to be limited to successful baby boomers so they created Z Zegna. Z Zegna is targeted to a younger market: Generation Y. The suit cuts are much slimmer and appeal to a younger crowd. Also the fabric isn’t as expensive yet still great quality. Z Zegna suits sell for about $1,200 and up. The companies decision to start Z Zegna was based on basic research and applied research. Now, Zegna is marketed to a wider variety of men who all have similar values of quality clothing.

Ch. 18- Social Media and Marketing

Instagram Post

Ermenegildo Zegna is known for keeping their customers fully informed on what they are buying when shopping for a luxury suit. They use various types of social media to do so. They have 150k followers on Instagram and almost 400k likes on Facebook. They post on various topics such as upcoming collections, new releases, and information on the fabrics and products they produce. They also post visually pleasing pictures and campaign ads on their social media pages to draw in new customers. After uploading pictures of new products, they explain what fabric is being used and little bit of information on the image. 

 

As I have mentioned in previous posts, Zegna is known for their high quality fabrics. Their most common fabric of use is wool. Many people wonder suit makers still use this ancient material and why aren’t new synthetic materials being used for suits. Zegna directly addresses this question via email and social media. They created a campaign that explains why wool is the most sought after material for suits, and why nothing else can compare to it. In this campaign, they talk about how they use the wool from the Merino sheep from Australia. These sheep live in all types of weather conditions and because of this, their wool adapts to the climate around them. That is why wool is now commonly being used as a summer fabric as well. This wool also has the ability to absorb moisture both from external and internal sources (rain or sweat). They explain why materials matter and why wool is an “integral element” for suits. Zegnas decision to create this campaign was a smart move and by posting it on social media, it strung up a lot of attention from their clientele.  You can find the article here: http://www.zegna.com/us/fine-fabrics/men-wool-suits.html

Instagram Post

Ch. 2 - Strategic Planning for Competitive Advantage

Gildo Zegna

An important aspect of a successful company is understanding the brand inside and out. It is important to know what you are capable of delivering and what your customers expect from you. The Ermenegildo Zegna Company has been in the family for over 100 years and is still owned and operated by them. This makes Zegna special and different from the rest of the corporate-owned men’s tailored suiting companies out there. Important company decisions are not made by a corporate big shot whose only interest is to make money. Instead, Zegna’s CEO Gildo Zegna, and Chairman Paolo Zegna, understand what is in the best interest for the company and keep an intimate relationship with the brand. This gives them a competitive advantage over companies like Berluti, Loro Piana, Donna Karan, Dior and many others. 

Ermenegildo Zegna has suits and products for all kinds of men. They have business attire, which is the formal business suit you see on wall street. They design Tuxedos for black tie events. And they also have their newly famed contemporary line called Z Zegna. Z Zegna is targeted towards a younger market such as myself. The suits are cut much slimmer and more form fitting. It is also a lot more affordable then the cheapest Zegna suit you can find such as the Torino or Milano (These are alternate cuts of suits Zegna offers. Some are slimmer, some are bulkier.) 

SWOT Analysis:

Internal Strengths: As I have stated above, a huge strength and advantage is family ownership. They understand the true meaning and goal of their brand because it is physically theirs. They can make any decision they want, good or bad (Almost always good). As you walk through their stores, you can feel the passion gravitate down from the designer to you. There is love and intimacy in every garment they create. Another huge strength for Zegna is their fabric. Zegna started as a strict wool manufacturer in the early 20^th century. They understand fabric more than any other brand in the market. As a matter of fact, they are so well known for the fabric that companies such as Tom Ford, Gucci, and Yves Saint Laurant use their fabric for men’s suits. And on top of their use of Zegna fabric, their suits are manufactured by Zegna factories. This is what makes Zegna the most powerful and largest Menswear brand in the world. They can see what their competition is designing before it even hits the runway because they practically control their competition.

Weaknesses: Having complete family ownership is indeed a strength, but it can also be a weakness. If somehow they fall into a large sum of debt and begin to lose necessary assets, there is no one there to bail them out. Brands that are owned by corporations can almost guarantee that is something goes wrong, it is not the end of the company. These corporations have partial ownership in them so they can always be there to help. Unfortunately, Zegna does not have that ability.

External Opportunities: Zegna’s distribution of fabrics opens up opportunities for large and small companies to buy supplies from them. When a small boutique uses Zegna fabric, there is a Zegna label on the inside. In a way they are getting paid to advertise their name and draw more customers to their own tailored suits.

Threats: Zegna, although the largest Menswear company in the world, is not ranked as having the best tailored suits. Their focus is equally split between the design and manufacturing of their in house suits, and fabric distribution and external manufacturing for other brands. I believe this is why other brands cause a threat when it comes to the best tailored suits. The Ermenegildo Zegna name is not a well known as names such as Armani or Hugo Boss. This does not mean these brands are superior. I still believe Zegna produces top of the line suits. They are just not a “label brand”. People buy Zegna suits for the quality, not the name. But trust me, Zegna compared to any other company is a no brainier. Ermenegildo Zegna wins it all.

Ch. 1 - Overview of Marketing

            Ermenegildo Zegna is a luxury Italian men’s suiting company based in Trivero, Italy. It is the largest menswear brand in the world, with over $1 billion in annual revenue. There are numerous things people don’t know about Zegna. The company was founded in 1910 when Eremenegildo bought his fathers textile loom and began manufacturing some of the finest wool for men’s suits. By the 30’s, the mill had over 1,000 employees. The Zegna fabric manufacturing company became increasingly successful throughout the years. 

             Aldo and Angelo Zegna, Ermenegildos sons, joined the company in 1942. Two years after Ermenegildos death in 1966, the Zegna sons launched their first line of Ready-to-wear men’s suits. They began opening factories around the world and in 1980, opened their first boutique in Paris, France. They currently have over 500 boutiques around the world. Not only do they manufacture their own suits, but they also control men’s suiting manufacturing for Gucci, Tom Ford, Yves Saint Laurent and Dunhill. Another inspiring aspect of this brand is that over 100 years later and it is still owed by the Zegna family. They understand the true aspect of luxury suiting and excel in producing what their customers need. What began as a small wool mill, turned into a beautiful success because they never forgot the importance of family and love. Zegna will continue to produce the highest quality suits for years to come.