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.