Marketing Report on Valentino Brand

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Marketing Report On Valentino Brand

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In this marketing report, I am going to explain the micro- and macro-economic factors of Valentino, analyzing the current performance strategies, target segment and competitor. I will also be covering the marketing mix, 7Ps which evaluate the marketing communication strategies of the brand, and lastly I will come up with a recommendation for the brand.

Valentino gets its name from Valentino Garavani, who is a specialized master on international stage of high level customization and creating haute couture. It is a universally admired famous fashion brand for its red carpet gowns and exquisite creation, it is positioned in the high end luxury fashion market. It operates in over 90 countries and has over 160 direct managed boutiques. The brand differentiates its strong brand image by its prestigious Italian heritage and its unique fabric, also characterized by its distinct style and glamour. It is recognized as one of sustainable brands which are responsible of environmental and ethical principle.

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This spun off companies are separated into two groups:

a) Valentino, (featuring the prestigious brands Valentino, Valentino Garavani, Valentino Roma, RED Valentino and Valentino Black);

b) a licensing unit with brands Marlboro Classics and M Missoni, as well as his own brands, Lebole, Oxon and Portrait.

Since in the 2002, the Valentino fashion house was purchased by an Italian fabric maker, Marzotto. And Hugo boss were in one of the business group until the date of 23rd December 2009, because it has renounce on that date and no longer be a part of the group. The Valentino Fashion Group operates in over 110 countries, with more than 1,600 single-brand boutiques and 433 directly-managed shops. And on the 12th July, 2012, the Valentino group was sold to Mayhoola (a Qatari investment group) for $700 million euros. In the same year, due to the management taken under Mayhoola, Valentino’s annual revenue was $370 million euros. And in the fiscal year of 2016, its annual sale increased to $1.11 billion euros.

Valentino has diversified itself and covered mainly the exploitation, design and manufacture of fashion garments, accessories, footwear, making it a complete lifestyle brand. Its core consumers are upper middle and upper class males and females that are at the age of 25 to 40 who are highly interested in fashion, used to luxurious city lifestyle, and are essential for their needs to be looking innovative and exclusive in different occasions.

However, its orientated market has been revamped, instead of targeting non price sensitive and customers in higher income level, they wanted to open the brand to different consumers, which is more modern, youthful, global and more price conscious audience, stated by Stefano Sassi, the CEO of Valentino Fashion Group. “It is considered as a smart approach to re develop its brand image. It was shifted to become less production-oriented and more fashion-driven.” He had played a big part in rejuvenating the brand through extending product range and diffusion lines. Therefore for RED Valentino, it is targeting new luxury market at a lower starting price point with an entry level price, as for Valentino Black, pricing has been arranged to be more luxury in comparison to RED, to differentiate from young consumer but does not reach the price level of the main line.

Valentino remains in the high luxury marketing positioning, to stay competitive in the market, the following points has to be addressed in order to compete against Prada, Chanel and Christian Dior based on the Porter's Five Forces model.

  • Threats of potential new entrants – to avoid new company to rise, Valentino should set limited distribution channels in order to strengthen the foundation of customer loyalty.
  • Bargaining power of the buyer – Valentino has to either decrease the price range or provide better quality product in order for customer to be satisfied.
  • Bargaining power of the suppliers – Elevate product range to reduce the risk.
  • Threats of substitute – Ensuring highest quality standard in the market.
  • Threats of competitive rivalry within the industry – Differentiate strategies should be used

PESTEL analysis of Valentino for the macro-economic factors

Political – Chinese exports to Europe and Japan have been debilitated. Without a doubt some manufacturing capacity has moved outside of China. Valentino need to look somewhere else to create merchandise for export.

Economical – Asian countries economy has moderated down and keeps on appearing significant indications of shortcoming, which is also a bad sign for Valentino growing in Asian market.

Social-cultural – Being capable to distinguish the correct channel for marketing, comprehend acquiring motivation of luxury buyers, and address the distinctions in benefits between shopping in-store vs online will be a key focus for luxury brands to go ahead.

Technological – Valentino are showing great development and are grasping the potential for advanced innovation to reach new audiences, enhancing brand awareness, what's more, build up a more extensive geographic reach.

Environmental – Valentino SpA is freely accessible natural benefit and misfortune bookkeeping statements, for example, Kering's, measure an association's environmental footprint all through its supply chain as well as calculating the monetary value.

Legal – Could create legal issue if technology become part of luxury market.

The 7Ps marketing mix for Valentino


Valentino brand reach its customer or clients through retail stores, direct manage boutiques and e-commerce platforms. Via online advertising, it allows Valentino to have control of knowing who sees the advertisement and therefore it can be known who to connect with and maintain a stronger relationship. The Haute couture items offers aristocratic to its first class clients and offered through the boutiques kept up by the organization itself which provides personalization based of their styling needs.


Print - the Valentino ready-to-wear, RED Valentino, Valentino Garavani and Valentino Black use print advertisement in high fashion magazines for its major publication to the audience, for example ELLE and VOGUE magazine. Magazine covers tend to be more influential than online advertising because digital printing lacks the impact of the aesthetic being in a cover, the mood and layout of the printed advert emphasize the USP of Valentino.


Public Relation is very vital to have in order to maintain the relationships with general public, and to contact with. Valentino uses a lot of PR strategies in order to establish and enriching brand reputation and image.

Catwalk show – it is used mostly in ready to wear and haute couture collections. It will be recorded then are distributed in the Valentino official website for general public to view and admire. Catwalk shows empower extravagance brand to flaunt the adornment the most unmistakable part of brand image. Through utilizing catwalk shows to display the most exclusive collections, Valentino could exhibit the present of clothing in a dramatic way that summed by the brands character of womanliness, style and extraordinary design and to carton a stage of intrigue and inquisitively for the ready to wear catwalks gathering to follow.

Sponsorship – sponsorship is a successful method to pick up believability through supporting philanthropy occasion or music identity that mirrors the value of the brand and how it wishes to be exhibited. Valentino has supported the raising support occasion "cash and rocket tour" in recent years by supporting a gathering pledges occasion, Valentino enhance the credibility of the brand, which will strengthen the sale and brand image, as clients want to invest into a brand that stands by moral standards.

Celebrities’ endorsement – Valentino does not immediate help celebrities to speak to the brand, supporting prominent models to model and publicizing their diffusion lines can empower Valentino to have a high form status. Be but Valentino do advance or give its own particular item to them who reflect the style of the brand. Celebrities will then be shot by the media and will then be advanced on fashion magazines.

Online and TV campaign – they are significantly used to promoted range of extensions and diffusion line to a wider market.

Social media – Valentino uses different social media to communicate with its customers, Facebook, Twitter, Pinterest, Instagram, YouTube, Snapchat. Valentino will update and post the newest picture, video, fashion show. It allows public to get engaged and keep up to date with the latest trend.


Valentino is a premium priced brand furnishing to the upscale class. The Haute couture is the extravagance product line which is offered for clients who are not exceptionally value cognizant and need a brand which is very selective to the elites in the general public. On the contrary, the Pret a Porter product line is offered at a price range of $315 euros to $5205 euros. The Valentino Garavani product line is offered in the price range of $115 euros to $2555 euros and price of The RED Valentino is range of $30 euros to $1465 euros, which is the most economical product line for customer. Price for Valentino Black ranges between the main line and RED, these two sub-lines are created in order to list a clear hierarchy of different levels of luxury so that the brand value is not diluted.

Due to the recent deceleration of the growing market in China, indicating the luxury market has been weakened. Under the circumstances, Valentino had to adapt changes by lowering products’ price in the Asian market while prices in the European market will be kept stationary, in order to show awareness and maintain the amount of investments from clients.

Product range

Valentino offers top product design, first rate quality of material, offering excellent tailoring and mature workmanship in handcrafting the haute couture uniquely in the roman atelier with a team of 40 seamstresses. Valentino Pret a Porter offers a wide product range over various product lines for men and women. It offers a high starting point range of dresses, trousers, jumpers and coats.

Valentino has also done collaborations with emerging designers to design imposing textile that has the essence and style of Valentino. Valentino Garavani offers range of accessories, for example shoes, small leather goods, scarf, eyewear and jewellry. RED Valentino, which was launched as a diffusion line in 2013 to offer a more contemporary, younger and affordable line.

Potential product could be developed to general public in order to improve brand image by creating new ways to fuse craftsmanship with modernity, focusing more in iconic products, for example 3D printing products, having rare and ethically sourced stones in order to engage future luxury consumers to bring modern aspect forward.


In 2016 the fashion label witnessed a key change as designer Pierpaolo Piccioli took on the label's solo creative leadership, after Maria Grazia Chiuri left for Dior, having worked in tandem with Piccioli at Valentino for nine years. Valentino has experienced a remarkable revitalization, creating a new era, yet the heritage is retained.

Audiences seemed to be delighted about the new collections and the change of aspect and style due to the inspiration from different painting references, which added soul to the garments from his imagination.

Valentino is trying endeavors to accommodate amazing staff knowledge and service through the institute program, despite internal marketing will be vital in underlining the re-situating of identity and the significance of being focused on the brands sustainable and ethical efforts.

Physical environment

Not only frequently updating their status through social media, Recently RED Valentino has promoted its redevelopment by hosting events through pop up stores in high populated areas during the S/S15 fashion week, which was held in a luxurious gelato bar, in order to gain deeper understanding of their loyal customers and to search for potential customers. Youthful movie director Gia Coppola was also invited to team up with RED Valentino in order to express brand identity and increase engagement.

Valentino and e-commerce company Yoox Net-A-Porter Group has joined partnership to launch a new business model in early 2018, named “Next Era”, which benefits the social public and raise the customer experience by reinventing the relationship between luxury brands and online retailers. This cutting edge model will empower Valentino clients' extraordinary online access to its product by utilizing the stock from Valentino boutiques and logistic centers, in addition YNAP's worldwide system of eight satisfaction focuses over the globe, extending from New York and Dubai to Milan and Shanghai.


To conclude, developed brands like Valentino should exploit its benefit of existing opportunities in existing market. Valentino can invade into and make good use of web based internet retailing which will rise as one of the noticeable types of contacting clients which can overall improve the service of marketing environment. Furthermore, it should adopt to new technology and concentrate on eco-accommodating wear collection and creating better innovative fabrics which are picking up prevalence and distance their products from maturity stage in the life cycle due to the lack of variety in product range. Besides, Valentino should give careful consideration to assemble brand culture, upgrade service quality reinforce commercial infusion and keep up brand esteem and customer loyalty.

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