Question 4

4.1

1. Demographic Segmentation

Demographic Segmentation: Demography Segmentation is to break up the market into

groups that include factors such as age, gender, income, education, employment type,
and size of the family. These Things Provide a Fundamental Understanding of
Purchasing Power and Traits of The Customers.

Armani's Application:

• Age: Rich adult-aged adults are the target audience of Armani. Armani Exchange, the
company's specialty line focuses on younger customers and appeals to those with a
high disposable income (commonly within those aged from 30 to 50).

• Gender: To segment its market based on gender, Armani provides different product
lines for males and females. Emporer Armani usually aims the people who must have a
minor rage, while Giorgio Armani gives more exquisite, more traditional articles for
ladies and men.

• Income: Armani is attracting wealthier customers who may pay a higher price
because of the elegance and exclusivity of attempting to place its products towards the
top of the market. Hence, Armani products with this kind of price tag were hierarchical
and aspirational due to this income-based segregation.

2. Psychographic Segmentation

Psychographic segmentation definition and explanation: This method focuses on

demographics, socioeconomic status, values, beliefs, hobbies, lifestyle, and personality
traits. It helps companies like Armani to get a broader psychological insight into what
their target audience is like and by what they are motivated.
Armani's application:

 Lifestyle and Values: Fashionable, sophisticated, and elegant are words that
represent Armani for those who value luxury. Key achievements and differences
made. This mirrors in the brand's advertising and retail which puts forward an
upscale, high-fashion way of life.

 Class: The brand is targeting the audience as class and upper class. Its
products are prepared to reinforce a sense of social identity and status as much
as they are to meet fashion desires. This may appeal to customers who value
elegance and status in their purchases.

Personality Traits: The appreciation of older styles and the way they have guided the
present is appealing to anyone with traditional tastes but a modern lifestyle. The brand
appeals to customers in search of under-the-radar luxury, and other collections feature
timeless staples that exude coolness and elegance.

3. Behavioral Segmentation

Explanation and Importance of Behavioral Segmentation; This strategy involves

dividing the market based on how customers behave including their usage patterns,
loyalty to brands, desired benefits, and choices made based on occasions. It enables
companies to effectively target consumer behaviors through their product offerings and
marketing strategies.

Application by Armani.
 Occasion: Armani categorizes the market into segments based on usage
patterns and specific scenarios. For instance, it offers a range of products for
events, business meetings, casual gatherings, as well as special occasions, like
premieres or weddings.
  Fostering Brand Loyalty; Armani builds a bond with its customers through top-
notch products, exceptional craftsmanship, and a unique brand experience.
Tailored customer care, exclusive events, and loyalty programs, for patrons all
contribute to nurturing this loyalty.

 Meeting Customer Needs: Armani understands that its customers seek

exclusivity, quality, and status beyond fashion. By emphasizing these benefits in
its product offerings and marketing materials Armani solidifies its reputation, as a
luxury brand that delivers on customer desires.

Armani's ability to effectively identify, target, and position itself in the competitive luxury
fashion industry accepted its strategic use of demographic, psychographic, and
behavioral segmentation grounds. Understanding the various demands and tastes of its
wealthy customers allows Armani to design items that appeal to its target market, craft
specialized marketing strategies, and keep up its position as the largest supplier of high-
end clothing. By using this segmentation strategy, Armani maintains its exclusive status,
competence, and attractiveness to its wealthier customers while maintaining its
importance.

4.2) To reach the audience it is targeting; Armani uses a strategy of selected specialty
Now let us examine this tactic and see how Armani's organizational style aligns with it:

Definition and Features of the Selective Specialization Strategy:

Differentiated marketing, or selective specialization, focuses on multiple market groups
and creates a unique marketing mix for each. This approach recognizes that the
demands, tastes, and purchasing habits of various market categories differ. Brands may
better satisfy the varied needs of their customers and increase market coverage without
compromising their image by customizing products and marketing initiatives for each
category.
Armani's application:

1. Product Categories and Names: Armani logically separates its product offers into
brands and lines, each of which targets a particular market specialty:

o Giorgia Armani: The main company catering to mature, wealthy clients who value
classic elegance, presenting luxurious, elegant clothes and jewelry.

o Emporia Armani: Targeting a young, fashion-conscious customer seeking elegant,

modern
o Armani Exchange: Offers stylish yet priced attire to appeal to a younger, wider
audience.

o Armani Prive: Provides celebrities and extremely wealthy people with customized
products clothing and outstanding designer clothes.

Each business associated with the Armani label appeals to various client segments
according to their daily lives, tastes, and ability to spend by taking a unique approach to
the position.

2. Marketing and Retail Strategy: To reach every market it seeks; Armani carefully
positions its brand and offerings with a range of retailers.

o Giorgia Armani: Located in luxury shopping malls and special showrooms in major
international clothing hubs.

o Emporia Armani: Located in hip urban areas and easily approachable upscale retail
areas to draw in more youthful, fashion-forward customers.

o Armani Exchange: To increase affordability and knowledge within the audience it

seeks, the company uses a combination of independent locations, social media
channels, and participation in well-known shopping malls.

In Conclusion, Armani can capitalize on its achievements in design, manufacturing, and

brand value throughout a variety of luxurious clothing categories because of its
approach to specialty. This strategy not only expands the market reach but also keeps
Armani a highly wanted brand among wealthy consumers across the world.

4.3 Positioning is the position your brand should occupy in a specific target market.

1. Luxurious and Prestige: Armani promotes its company as an exclusive brand that
appeals to wealthy customers who respect excellence and privilege. This positioning
reflects the brand's pricing, which frequently commands higher costs than those of
current fashion labels.

2. Elegance and Charm: Targeting clients who value classic styles and modest luxury,
Armani places a strong emphasis on elegance and class in its creations. This is
appealing to a certain type of person who prefers timeless looks versus fads or
contemporary looks.

3. Expanded Market Offerings: In addition to clothing, Armani now offers a wide range
of supplies, beauty products, scents, luxurious lodgings, and homes. By diversifying, it
can maintain its highly regarded standing in a range of lifestyle sectors.

4. Celeb Approvals and Highly Publicized Events: Armani regularly links itself to
popular occasions including sporting events, design displays, and movie screenings.
These connections strengthen the impression of elegance and raise its status.

5. Shopping Experience: Armani's stores and sales outlets create an attractive

purchasing environment. Its luxury image helps the environment, client service, and
packaging.

Given the circumstances, Armani's marketing approach focuses on luxuries, exclusive

status, class, and an excellent brand legacy, making it attractive to wealthy customers
looking for premium, classic style and lifestyle items.