Ch. 12-Services and Nonprofit Organization

Zegnas only form of service is the tailoring. When buying a suit at a Zegna retailer, you are offered free alterations to all purchases. You are guaranteed reliability because Zegna hires only the finest tailors from around the world to handle their clothing. After your suit is ready for pick up, you will be able to see the tangible evidence that it has been dealt with love and passion as it underwent surgery. The fit is perfect. It will always be perfect. And you can see that the service was worth the wait. 

Ch. 11- Developing and Managing Products

Ermenegildo Zegna constantly analyzes the market place to try to figure out new ways of improving their production and creating new products. Although menswear, suits, and fabrics have been around for centuries, there is always going to be a new approach to it that will reinvent what clothing is. Zegna creates ways of making their high fashion clothing available to all types of men by introducing product modifications that will grab the attention of those who have yet to seek interest in the brand. Zegnas products are innovative, as most of the products you will see are new to the market in some unique way.

Ch. 8 - Segmenting and Targeting Markets

Ermenegildo Zegna has a defined target market because of the price of purchasing their products. It is for the wealthy and not many others can afford to shop with them. They also have market segmentation. They have different styles of Zegna suits, depending on what type of person you are. One of their options is Business Attire. This is your standard and internationally accepted two piece suit that can be worn in any business environment. But, they also have sportier options for those that fit that category. Usually this segmentation is based on demographics, as older buyers may want a suit that fits more loose, and the younger buyers typically shop for form fitting and slim.

Ch. 15- Marketing Communications

David Burtka & Neil Patrick Harris, both in Ermenegildo Zegna Made to Measure.

Ermenegildo Zegna is often worn by successful actors and famous personalities alike. Zegna suits can be seen on the red carpet, at new movie promotions, or on a busy street in NYC. All of this draws publicity to the brand. Many people look up to actors as inspiration and when you read in the newspaper or in magazines that your favorite actor wore a top of the line Zegna suit, you begin to want one yourself.  You become intrigued with the brand and want to know more about them. You may ask around to see if anyone you know has owned one and if they have, they will tell you how excellent their purchase was. Zegna grows their company primarily through earned media, although they also use paid media to increase their consumer base. Campaign ads can be seen in popular magazines. They use the pull strategy to stimulate consumer demand by create videos and ads that can be viewed on their social media pages or their website, instead of purchasing air time.

Ch. 10 - Product Concepts

Ermenegildo Zegna is known in the fashion world as a company that creates exceptional clothing for the modern gentlemen. But, what many people don’t know is that they started with a simple product, wool. Zegna began selling wool to other companies and for about 60 years they created a trustworthy and reliable product. Their fabric was a business product. At first, they only distributed fabrics to clothing brands but decided to start producing suits themselves around the 70’s. They created a consumer product. Zegna knew consumers admired their craftsmanship so why not take it a step further and create our own specialty product. Since then, they have created an even bigger name for themselves and are now looked up to by other clothing brands.

 Every season, Zegna modifies their products to adapt to the changing world of fashion. They stay ahead of trends by creating them. They offer a large variety of products for all types of men, both business attire and causal. They have truly created an image and a brand and are now globally known as serving quality clothing. Many customers who shop at Zegna have brand loyalty, especially when dealing with tailors. Customers prefer to work with the same Zegna tailor because they know that the tailor understands their body structure and is a reliable source for alterations. All of these aspects of Zegna keeps customers coming back and back again.

Ch. 17 - Personal Selling and Sales Management

Ermenegildo Zegnas focus is to always manufacture the highest quality products to their customers. Luxury is deeply imbedded in this brands foundation. An important part of a luxury brand is to not pressure your customers into buying your product. Instead, Zegnas sales techniques include heavy communication. When you walk into Zegna, you are always greeted with a respectable welcome and are perhaps offered a beverage. Their employees ask if you need assistance in anything and inform you to feel free to ask any questions. This builds a customer-seller relationship. Zegna employees have an immense knowledge on the products they are selling, so every question you ask will have an answer. This builds credibility for the seller. Zegna employees may refer you to a different store, or a different Zegna tailor, as one may be more suited for the job than others. Zegna employees build friendships with the customers. This often times increases their networking so instead of a customer saying to their friend “ Lets go shop at Zegna”, they will say “ Lets go see my friend David who works at Zegna.” Zegna employees do no typically negotiate. It Is not part of their sales process. Zegna employees may also follow-up with the customer after exchanging emails or phone numbers. They may inform them about upcoming sales or new collections that are arriving.

Ch. 16 - Advertising, Public Relations and Sale

Since Ermenegildo Zegna is a luxury menswear company, they typically do not advertise the way regular everyday companies would. Clothing companies use collections to advertise what they will be selling for the upcoming season. Often times, Zegna would create a short clip that markets the product they are selling and the mood of the collection. This is their advertising campaign. They provide an interesting look to the clothing that they are promoting to try and influence consumers to purchase them. They give advertising appeal to their clothing by sometimes going into detail and explaining what they have changed for the collection and why. They may explain why a new technique for treating wool is far more suprior than other companies or how they have found the perfect fit for a dress shirt. Zegna posts these advertising campaigns on their website, blogs, and social media pages such as instagram and twitter. This is an example of a recent campaign advertising Z Zegna’s spring/summer 2015 collection. They decided to create a unique selling proposition by stepping into a futuristic setting and mixing sneakers with suits, something that isn’t seen too often but is very unique and appealing to a younger generation. 

"Discover the new Z Zegna SS15 advertising campaign - directed by Jacob Sutton - Entitled 'Be Your Own Style 24:7'. Tailoring and sportswear are brought together to present this versatile menswear collection designed to embrace the always-on lifestyle of the modern trendsetter."

Ch. 14 - Marketing Channels and Retailing

Ermenegildo Zegna uses dual distribution to sell their products. They also sell the similar products but in different forms. For example, Zegna will sell a certain suit with a certain fabric in their stores across the globe. But, they also will sell fabrics that are very similar to other brands that can make their own products with it. During this process though, they distribute selectively. Not all the fabrics the Zegna uses for their suit are available for sale. They have a select section of fabrics that they would like to sale to other companies, while still having exclusive fabrics that they use for themselves. Zegna has online retailing available for everyone, and over 500 retail store around the world. Their destination store is the flagship Zegna retailer on Fifth Avenue in New York City. The layout and atmosphere in every store follows the same pattern of high-end luxury goods. There is always a relaxing and somewhat gentle feel the their stores which create a great environment to sell clothing in. Soft carpeting and lighting create a mood that is unforgettable and makes you want to go back and experience it again.

Ch. 6 - Consumer Decision Making

Because Zegna is such an expensive company, understanding consumer behavior is very important for them to continue doing business. They cant just expect that everyone who buys suits wants the most expensive and luxurious one. Their consumer decision-making process goes as follows: Zegna fabrics are know worldwide as being exceptional. Many brands, from small boutiques to large fashion houses use Zegna fabric. Zegna is also responsible for manufacturing numerous other brands suiting. For example, you can walk down Fifth Avenue and see all the companies that use Zegna fabric. You can also stumble upon a small boutique in the middle of Burlington, Vermont and find Zegna fabric like I once did. This is all brand recognition. You see the name, you feel the quality, and you remember it forever.  After hearing about Zegna, or possibly seeing something Zegna manufactured, your next step would be an information search. Zegnas website offers a great detail of information on their products. Also, going to a Zegna store and seeing the products yourself will help make your life easier. Their staff is thoroughly knowledgeable and can answer any questions you may have. Learning about alternatives for suiting is always a smart idea, as every brand has different cuts and may suit your needs better. So what style of suiting does Zegna have? They answered that question by creating different off-brands that have completely different cuts to widen their consumer base. Purchasing a Zegna product for an average worker is something that needs to be thought out. As I have mentioned before, Zegna products are very expensive. Customers are ensured that Zegna products will last years of wear without showing signs of deterioration. After buying a Zegna suit, many customers come back and back again, and as their wants and needs grow, so do Zegnas products.

Ch. 5 - Developing a Global Vision

Zegna Boutique in China.

Ermenegildo Zegna is known worldwide for their exceptional understanding of mens suiting. What started as a small textile company grew into an international powerhouse that leads the world in suit quality. Zegna opened their first boutique in Paris in 1980, followed by Milan in 1985. They currently have over 500 boutiques all around the world. Zegna’s global vision allowed them to see that not only producing fabric could make them money, but venturing off into the suiting business can be extremely profitable as well. Much of their clothing is made in their factories in Italy, which is a great selling point to worldwide customers. Zegna products are also imported from places such as Switzerland, Spain, Mexico, and Turkey. 

"Ermenegildo Zegna turnover exceeds 1 Billion euros and expands in Africa."

"Ermenegildo Zegna turnover exceeds 1 Billion euros and expands in Africa."

Most shoppers see Italian products as being luxurious, high quality, and worth the purchase, so opening boutiques in places such as Paris, Japan, and the United States was a smart move. Last year, Zegna made a licensing agreement with eyewear manufacturer Marcolin to allow the brand to use the Zegna name when selling certain products. “Passion for excellence, high quality, style, and made in Italy: these are the core values perfectly shared by both groups, which are the basis of this partnership,” said Giovanni Zoppas, CEO of Marcolin.

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.