Friday, September 25, 2015

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.


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