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As a board member of Dow Corning, I vote in favor of the proposed class action settlement. If you consider the benefits associated with this option they far outweigh the costs of declining the settlement. By late 1, 10,000 suits were filed against manufacturers of breast implants. When you consider the amount of time that would be forfeited in dealing with all the cases individually it is an absolute waste. We as a firm need to bite the bullet and pay for our negligence, regardless if we believe that we were at fault or not. The individual law suits that would undoubtedly last for what would seem like an eternity will promote negative publicity for our entire company and slander our company name. In reality we have more to lose if we don’t accept this settlement. There is also a considerable outside risk associated with prolonged litigation and you have to ask yourself how long you would want the aftermath to linger. The possibility of women opting out should not be given much attention. Past instances show that it is more difficult to enter into a lawsuit on your own rather than being part of a class action suit. The jury could possibly view these individuals as being greedy and possessing thoughts that our generous settlement was not good enough for them. As a member of the board, I strongly recommend the acceptance of this proposed settlement.


Financially it is in our best interest to go ahead with the settlement. The cost of litigations more than doubled from 11 to 1 and in 1 it drastically increased by $571 million. By means of careful planning we have set aside an implant reserve that totals $1.1 billion. The proposed settlement calls for a total fund of $4.5 billion where our contribution would total around $ billion. In hopes that our insurance company will pay for half of our payment we can be expected to pay around $1 billion. Financially the best option for us is to accept the settlement because we already have the necessary funds on reserve. If you add up the costs of each separate lawsuit they would greatly exceed the $ billion settlement. We must also ask ourselves how important this product is to our company. In 170 medical implants accounted for only 1% of our total sales. In 1 we announced we were dropping out of the breast implant business altogether which proves that this product is not worth the risk.


Bearing in mind that the scientific evidence that would be brought to the juror’s attention during trial would not work to our advantage, it gives us even more reason to accept the settlement. The internal memos that have surfaced will show the jury that we were aware of the diminished quality of our products, “When will we learn at Dow Corning that making a product just good enough always leads to products that are not quite good enough?” Although at times we made valiant attempts to correct the defected products, the evidence will work against us.


Everyone at DCC follows the Corporate Code of Conduct that was first introduced in 176 and we have prided ourselves on our high level of ethical behavior. Though some individuals may disagree, DCC acted in the most ethical way possible. We sought ways to reduce potentially harmful products by strengthening the outer walls of the implant to decrease the occurrence of ruptures and actively worked to correct gel bleed in our products. “Safe does not mean risk free”, DCC and the public were aware of the potential risks but their decisions were guided by the benefits. We have an obligation to our customers and the medical community as a whole. It is our responsibility to inform customers and distributors of potential hazards.





The situation that DCC is facing has become all too common over the years. The media continues to do what they do so well; exasperate the public while creating generalized anxiety among the two million women with breast implants. Newspaper headlines and television news reports formed a false picture of our company. The media led the public to believe we were unethical and undaunted by the well-being of our customers. Thus, the media helped create the spark that fueled the flame of thousands of individual lawsuits.


The onslaught of lawsuits against the breast implant community turned the heads of the legal community. Billboards advertised legal services that were aimed directly at women with breast implants. In general attorneys filed suits on a contingency basis in which they would receive anywhere between 5%-40% of their clients compensatory and punitive damages. We could not depend on the jury to rule in our favor because they tend to base their decisions on the sympathy they would possess for the numerous women. On the other hand, the judge presiding over the cases would be more inclined to rule more objectively.


Interest groups had mixed emotions regarding their stance on the DCC controversy. The Public Citizen group fought hard against our company. They obtained internal company studies that suggested that silicone was in fact cancerous. Public Citizen created a “How to Sue” kit which contained potentially incriminating evidence to aid women in their legal battle with DCC. Odd as it sounds several breast cancer support groups backed DCC. They presented evidence that .5% of women with breast implants were in fact satisfied with the product. Some women argued that it was a violation of women’s rights to choose what was best for her body. It is quite difficult to hold doctors accountable for the complications associated with breast implants. Because memories pertaining to specific patient consolations fade over time, the cases against the physicians rarely hold up in court. Driven by the power of money plaintiffs soon realize that doctors lack the financial prowess to fund numerous claims therefore the plaintiffs set their sights on the deeper pockets of large corporations.


Economically the product liability system should function similar to that of an insurance policy like our class action settlement. The established funds will serve to compensate those individuals that were injured. This system provides the manufacturer with an incentive to produce a safer product but unfortunately, some firms are forced to drop out of the industry because of either possible risks or lack of resources.


Politically the product liability system takes on the role of a lottery, which clearly demonstrates the “big gains to few, small costs to many” concept. Many cases show signs of opposing factions but in the end an equitable solution is rarely achieved. Society overall will not benefit from the politically based product liability system and productivity and innovation will be impacted negatively. Prices will ultimately increase and the potential for new and innovative products will drop considerably. In order to protect the overall benefits of society an apposite balance must occur between cooperation and competition.








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Oh when the saints come marching in. What tis anything but this phrase means? Who are the saints exactly? Why are they marching? Everyday and everywhere people sing this song, but are they really saying? They love saints and they want to see them them march. The best way to sing this so with the accompany of the trumpet. The trumpet is a brass insturment made for going toot, toot with. A little boy off in the distance plays this song. All of the sudden, saints come marching in and his whole world changes! Oh no! Oh my!


Another way of looking at why the saints like to march is by looking at their costumes and if they are fitted enough. When thinking about the saints marching, the image of the saint parade comes to mind. What is better, listening to dumb saints babble smart things or smart saints babble about dumb things. The second choice is prefered by many because you should never trust a dumb saint, escpecially one such as this one. You talk, I talk, we all talk. Is that two arm fifty greasy words park minimum sneeze over shoesale yet? Legos I blank guess smelly not.


After marching with the saints and having the saints march with us, it is completely normal to go to sleep. What you do now, is read the last two sentences. Only this time read only every other word starting with Is. I am so smart. Smarter than those saints. Has anyone else tried that. Im a moocher! Sorry! when the saints go marching in song





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Japanese anime is a visual art style that has become increasingly popular in western culture over the past five decades. The recent explosion of anime shows has caused concern by American parents over the violence and sexual content that is occasionally exhibited in episodes that are loosely edited. Mainstream anime that is heavily edited has also caused pandemonium, mainly by the anime otaku (fan base) in America who are accustomed to viewing anime in its full and unedited form. Even though it is good that parents are concerned about what their children are viewing, I personally believe that anime should have the same right as any other American program to be shown on television, or at least be sold in stores, as an unedited art form.


The main reason for the debate over anime content stems from the differences between Japanese and American culture. The Japanese are a bit more lenient as far as censorship goes. The Japanese government adopted most of its constitutional basis ironically from the United States after World War II and strongly exercises a right similar to the First Amendment. Much of the content seen in Japanese media has been lightly, if at all, censored. Only recently has the Japanese government attempted to make laws and obscenity codes concerning child pornography and depiction of pubic hair and genitals (Reyes). The American government, however, has had no clear definition of obscenity. In spite of this, any material that contains objectionable material is usually subject to be censored to some degree. Anime is considered to be a serious art form in Japan, and a good percentage of shows and manga (comic books) are of visual artistry. Many Americans who know little about anime view these shows as strictly cartoons for children, and a lot of the time they are treated as such. For example, the anime and manga (comic book) series Sailor Moon, created by Naoko Takeuchi, was originally targeted as a show for teenage girls in Japan. Sometimes the show would contain innocent scenes of nudity, such as the main character taking a bath. When Sailor Moon was brought to the United States, the show was marketed mainly to children. Parents most certainly would not allow children to view nudity of any kind, so the production company of the American version was forced to edit these scenes out, along with other scenes as well. Japanese anime is generally “created for college students and adults, and most of the anime that is for kids is created in a culture where kids are not limited to G-rated programs,” (Jedi Master Thrash’s Anime Page). When an anime series is syndicated to American television, a great bit of the mature content is cut, and as a result, the show is drastically altered.


Japanese anime goes through two types of basic editing before it is shown on American television. The first type of editing is for censorship of the questionable material. Sailor Moon went through many drastic censorship cuts in the first two seasons. The most notable edit that the show’s producers made was the theme of homosexuality. In the first season, the relationship of male villains Zoicite and Malachite was altered, and the producers changed Zoicite’s gender to make the relationship seem more acceptable to American viewers. Another production company picked up the series for seasons three and four, and even though the censoring was not as severe as the other producers, it was still noticeable. Fish Eye, another male homosexual villain in season four, was not as drastically butchered as the previous characters in season one. His character was still basically the same as the original Japanese version, but his comments made about his attraction to other male characters on the show are not heard on the American version. Season five of Sailor Moon has yet to be dubbed because some of the characters on the show change gender in their transformations. I think it is ironic that a country that preaches individuality and non-discrimination would go to such lengths to edit out scenes that educate young children about different lifestyles.


Some production companies also go as far as to edit out or alter scenes concerning Japanese culture. On the show Cardcaptors (Card Captor Sakura in Japan), the main character says she is eating hamburgers but she is clearly eating sushi. Some people might say that “in order for a series to sell and be successful in the United States, the viewers must be able to understand the programs,” and since the main audience is children, “the networks will cater the series to the children’s ability to understand the shows,” (Anime in America). In my opinion, this type of editing is unnecessary and actually confuses young viewers. Anime should be shown so people can “learn about another culture, and experience foreign thoughts, not to change them to match domestic culture,” (Jedi Master Thrash’s Anime Page).





The second type of editing that all anime series go through is arguably the most unnecessary. Typically, an anime shown in Japan takes up the full time it is allotted. However, American shows are usually about 18-4 minutes long on average in a 0-minute time slot. Because of commercial time, the whole Japanese series cannot be shown on American television. As a result, bits of scenes are cut out to fit the time constraints. Some production companies cut entire episodes because they want the series to begin or end on a certain day (preferably on Friday so the audience will be in suspense until the following week). In Dragonball Z, a very popular anime around the world and currently in the United States, the first two Japanese episodes were edited as just one episode on American television. Another anime show Robotech lost an entire season in American television syndication. The problem with this type of editing is that when future episodes flashback or rely on a past episode for the storyline, a lot of American viewers are confused and do not understand what is going on. Anime “isn’t episodic like American cartoons [;] it has a continuous story line, tightly linked, and any loss in that chain disrupts the entire series,” (Jedi Master Thrash’s Anime Page).


Many parents are concerned and upset with the content in Japanese anime. There was even a court case against a production company called Media Blasters in 18 concerning an angry father who claimed he bought a “mislabeled” product because it contained an objectionably obscene trailer of an anime (Reyes). The Comic Book Legal Defense Fund brought another case concerning obscenity charges to court. They claim that on two separate occasions, a copy of the adult manga “Legend of the Overfiend” was sold to an undercover cop and a member of the PTA (Reyes). Even though both of these people were adults over the age of 18, the sitting judge of the case denied the motion to dismiss the case. The truth is most parents are not around during the afternoon hours when anime is shown on television. But some parents that are monitoring what their children are watching seem to be offended particularly more so with Japanese anime than other programs, which contain considerably more violence and sexual situations than anime. It all stems from the fact that older generations of American society are not informed about anime and assume it is meant to be strictly children’s cartoons. Producers have added to this confusion by marketing to children, selling action figures and school supplies that the parents are buying. So the parents ultimately expect a wholesome show that their children can watch without being traumatized and corrupted. Honestly, there are rarely any shows on the air that children want to watch that are free of questionable content. As long as our society remains corrupt, a reflection of that will be shown on the airwaves as long as it receives ratings.


On the other side of the spectrum are the members of the anime otaku, who are completely offended at producers’ attempts to edit shows. The members of the anime otaku have found a common ground for bonding on the Internet and have formed several groups and started petitions against censorship of their favorite shows. Most even threaten to boycott the show if serious changes are not made. These groups know what the original Japanese version of the show looks like because most of them were fans before the recent anime explosion in the United States started. They went through much trouble trying to obtain imported videos and other apparel from Japan. Now that anime apparel is so accessible in the United States, they are angry at the quality of some of the products. Most groups feel that the censorship is “the equivalent of plagiarism,” and claim that producers alter the works to fit “our own culture and needs,” (Jedi Master Thrash’s Anime Page). The anime otaku do have a reason to be angry, but because they can be so harsh with their demands, their pleas often fall upon deaf ears.


There are three types of Japanese anime currently available for purchase in the United States dubbed, uncut, and subtitled. Dubbed anime is usually the cheapest to purchase but contains the least amount of unedited footage. Uncut anime usually indicates that a producer has left in most or all of the scenes of the original, but there is still some editing involved. These are more expensive than dubbed items but not as expensive as subtitles. Subtitles contain the original scenes and dialogue translated into English. These can be costly at times, however, the most costly anime item would most likely be an import. There is also a great difference in content whether you buy a VHS or a DVD. DVDs tend to contain more content, such as both dubbed and subtitled storylines, and have gained a good reputation even from producers who are generally heavy on the editing. Even though the DVDs are expensive, they are a great deal because they essentially contain two videos in one. For the serious anime collector, I recommend either imports or DVDs that preserve the original Japanese content. For mature children that are not quite used to the content or a first time buyer of anime, I recommend the uncut version on VHS. And of course for small children I recommend the dubbed versions of the anime. Even though I don’t really like dubbed versions of anime, they seem to appeal better to American children than other audiences.


The only solution that would satisfy both parents and the anime otaku would be the implementation of a rating system. Currently, most anime movies have mild warnings or do not have a rating at all. Dubbed and some uncut amines made for children should be rated PG so that parents know that there is some questionable content they should be aware of. Subtitles, depending on the original Japanese target audience, should be rated PG-1 for the milder animes and NC-17 for the more controversial types of anime. Hentai, or Japanese anime porn, would mostly likely fit under the NC-17 rating. Wit the implementation of a rating system, there should be more access to subtitles. It is very difficult to find a store that sells subtitles unless it is on the Internet, so to make it easier for the fans that can see mature anime, local video stores should volunteer to sell all types of anime. It is possible that producers could lose some revenue for dubbed anime from this method, but there should be an increase in anime content purchased because the consumer is finally getting what they want.


Japanese anime has certainly come a long way from the days of Speed Racer when the English words never matched the mouth movements. Without a doubt, there is a long journey ahead for anime if it wants to gain the full respect of Americans. Until the people of America can embrace anime as if it were like one of its own shows, profit-driven producers will continue to ruin its legacy and make a mockery out of a widely renowned and respected art form.











Sources


“Anime in America”. http//www.angelfire.com/pa/bonnienjess/jessbox010.html


“Censorship of Anime on Syndicate TV”. http//members.aol.com/thrashwise/anime.htm


Reyes, Luis. “Walking on Eggshells Anime and Censorship”. http//www.akadot.com/article/article-censorship1.html


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Alfred Stieglitz is known as one of the greatest masters of photography. He photographed everything that he experienced and helped people see that art is a means of communication and expression. The way he saw an image was directly affected by his emotions at the time, and he learned how to manipulate the photographs to convey those emotions.


In the late 180s, Stielglitz recalled the painters he knew envied his medium because he could produce the same results as they could. However, they would not consider photography an art because it was machine-made.


Stieglitz worked editing the American Amateur Photographer from 18 to 186, when he founded Camera Notes, a camera club in New York. He edited for Camera Notes until 10. He exhibited work by several photographers, and established a gallery in 105. In 108, Stieglitz showed work by Matisse and some of Rodin’s drawings. His photographic vision had reached past photography and into all forms of art and expression. He exhibited work by Picasso, Georgia O’Keeffe, and some African sculpture as well. The diversity of the work he showed reflected his opinion that the newly emerging held much higher importance than repetition.


Alfred Stieglitz continued to exhibit other artists’ work as well as his own and worked with the Anderson Galleries and the Intimate Gallery, as well as An American Place. It was through these galleries that he shaped American modern art.





Stieglitz believed in true, original work and when asked if some of his prints could be reproduced he scoffed and explained that everything that makes his photographs what they are would be lost in a reproduction.





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Giorgio Armani is the one largest Italian designer group. Currently, they hold a billion dollars a year company in the fashion market. Their customers are mostly well-educated and wealthy individuals. Although they are doing pretty well with their current target market, it is not big enough to restore their lost market share. Their new target market will by Generation X (Armani Exchange). This segment is composed of 1% of total US population with annual disposable income of 15 billion per year.





TABLE OF CONTENTS


I. CURRENT MARKETING STRATEGY





A. INITIAL PURPOSE


B. CORE COMPETENCIES


C. CURRENT/POTENTIAL CUSTOMER/PRODUCT


D. KEY MARKET RESEARCH FINDING


II. PRODUCT FEATURES AND BENEFITS


A. PRODUCT POSITIONING


B. PRICING


C. CUSTOMER SERVICE


D. PROFITABILITY


E. DISTRIBUTION CHANNELS


F. IMAGE


G. PROMOTIONAL


III. S.W.O.T. ANALYSIS


A. KEY COMPETITORS


B. RELEVANT MACRO ENVIRONMENT


IV. SEGMENTATION, TARGETING, AND POSITIONING


I. SITUATION ANALYSIS & HISTORY


A. INITIAL PURPOSE


“Giorgio Armani began a free-lance design business in 170 with the encouragement of his close friend Sergio Galeotti, and established his own mens wear label in 174. He gradually adapted his designs for women and added the womens wear line in 175, in partnership with Galeotti.?(Krebs, 10-7)


B. CORE COMPETENCIES


There are many core competencies that Giorgio Armani possesses. Its main core competency is its bond with its customers. Being that it is the top Italian fashion designer promotes a strong positive image of its products, because of its product’s quality and the ability to design innovative features quickly.


C. CURRENT/POTENTIAL CUSTOMER/PRODUCT


Giorgio Armani offers a variety of fashion lines with high quality and both custom-made and prete-a-porter. The exclusive lines are


?Armani Alta Moda (haute couture)


?Borgonuovo 1


?Giorgio Armani


?Le Collezioni (diffusion), since 17


?Mani (diffusion)


?Emporio Armani (diffusion, younger customer, worldwide), since 184


?A/X Armani Exchange (basics, United States only)


?Giorgio Armani U.S.A. (lower priced)


?Armani Jeans


?Armani Neve (winter sportswear), since 16


?Armani Golf (sportswear), since 16


?Classico, since 16


D. KEY MARKET RESEARCH FINDINGS


Eg. There are many different types of Armani customers.


Median Age N years


Median household income $K


Median personal income $K


Male N%


Married N% (single N%, widowed /divorced N%)


Household with Children N%


College graduate or some college education N%


II. PRODUCT FEATURES AND BENEFITS


A. PRODUCT POSITIONING


Giorgio Armani’s products are highly positioned. As a high-end fashion group where high dividends come in at an extremely high cost, the wide line of products cover up all niches for the high-end target market.


B. PRICING


The price of Giorgio Armani is not cheap. The suggested retail prices range from about $100 to $100,000.


C. CUSTOMER SERVICE


The fashion shows are held throughout the world are not only for fashion magazines journalists to get together but for customers too. This also enables Armani executives to interact and get suggestion from customers to improve their products.


D. PROFITABILITY


Sales of the Armani-Group in 18 amounted to 540 billion Lira ($1574 million), up 1.4% from 1. Garments accounted for about 1700 billion Lira ($1054 million), and accessories for about 840 billion Lira ($50 million). In 001, the group sales, including sales from licensed products rose to about 500 billion Lira ($. billion). The Armani-Group also includes the Sportswear Company Simint, which handles all of Armanis informal lines. Armani himself holds 5% of the Simint assets. Simint was rated the best performing stock at the Milan exchange, with an annual increase of 1% with respect to the stock price. While Simint produces the Armani Jeans line, the Armani Junior label and the Emporio Armani mens wear, the Emporio womens clothes are produced by the Antinea (sales in 001 00 billion Lira), a 100% Armani offspring. Giorgio Armani S.p.A. develops the Armani labels. In 18, Giorgio Armani S.p.A. showed a 0% growth in sales to 10 billion Lira ($884 million), thus doubling its sales figures of 17. Two years later sales were at 10 billion Lira ($1180 million), increasing another 5% to 400 billion Lira ($1556 million) in 001. Pre-tax profits for the Giorgio Armani S.p.A. marked 650 billion Lira ($4 million). (Krebs, 10-0)


E. DISTRIBUTION CHANNELS


“The biggest export market for Armani is the United States, where Armani labels are sold at 1000 points of sale. In 15, Armani had 6 outlets carrying the exclusive Giorgio Armani and Borgonuovo-1 lines. Emporio Armani outlets numbered 11 in 15, with 54 in Italy and in Japan. This figure rose to 145 stores in 001 and is planned to be increased by 8 in the near future. A/X Armani Exchange used to be sold only in the United States. In 14, the A/X-stores were taken over by Club 1 USA, Inc., but continuously struggled to compete with lower-priced competitors like Banana Republic. Today, Armani intends to open up even more A/X-outlets, also introducing them to customers in Asia for the first time. (Krebs, 10-0)


“The first freestanding store for Giorgio Armani’s Mani by Giorgio Armani and Collezioni Giorgio Armani collections has been opened in London.?(Fallon, 11-10-01)


“Collezioni and Mani represent 7 percent of the company’s profits?(Fallon, 11-10-01)


“The London store is owned by Club 1, the retail empire of Christina Ong that owns the Emporio Armani and Giorgio Armani stores in the UK.?(Fallon, 11-10-01)


“The fundamental reason for the opening the Collezioni stores is that we wanted to present this collection of clothing and accessories for men and women together in its own unified space, he said. Collezioni customers are made up primarily of young professionals who often have little at hand to shop. Therefore a store that offers a big variety of compatible, high quality products obviously is very convenient for customers.?(Fallon, 11-10-01)


“The freestanding London store is at 4-44 New Bond Street, near to the new cK Calvin Klein store as well as the upcoming Versace Jeans Couture and Tommy Hilfiger stores. Other designer shops nearby include Polo Ralph Lauren, Emporio Armani and Ermenegildo Zegna.?= Donna Karan (Fallon, 11-10-01)


F. IMAGE


“Armanis fashions have set the tone for a global dressing down. In the corporate America of the late 0th century, he was perhaps the only man who could challenge dress-for-success guru John Molloy and win. And it is from the springboard of Armani designs that fashion will leap into the next century.


If French designer Gabrielle Chanel liberated women from stays and long dresses, it was Armani who offered them professional fashion equality without bending their gender.?Griffin, 5-5-00)


“What made Armani a star among designers was his unpadded, unstructured jacket. At a time when Italian men still were battling a stereotypical greasy image, Armani single-handedly cleaned up the look.?(Griffin, 5-5-00)


“After years of rummaging through 0th-century styles to turn out retro-inspired trends, fashion designers have run smack into the designs most women still have in their closets power suits.?(Griffin, -0-00)


“Now theyve taken a flying leap into the mid-180s, era of the career woman, with strong suits, high heels and pricey accessories.?(Griffin, -0-00)


“Women probably will not be able to recycle whats left in their closets from the 80s, however. Key changes, sometimes ever so slight, make all the difference in the look.?(Griffin, -0-00)


“Next, he translated the jacket for a womans body, then tossed it over easy skirts and trousers. It gave modern woman an alternative to uptight luncheon suits with peplums and stiff fabrics. While the shoulders, lapels, vents, fit, lengths, fabrics and closures _ all the design elements of the jacket _ have changed through the years, the words Armani jacket instantly conjure an image in the minds of the fashion cognoscenti.?(Griffin, 5-5-00)


“There are no warpaint, feathers or beads, but mens clothes tell everyone what tribe theyve in.?Teliga, -5-8)


“EMPORIO ARMANI The less expensive label of the Italian designer Giorgio Armani, renowned for his elegant soft tailoring and deconstruction of the stiff business suit. Colin Bertram, menswear manager, Emporio Armani?(Teliga, -5-8)


“The look For menswear its very straightforward, nothing overtly fashiony yet more body-conscious (this season). It is always Armani so it is always going to be understated.


The customer Anyone between 18 and 70 who is interested in fashion and style but wants to wear the clothes rather than the clothes wearing them. Tends to be an urban customer - advertising executives to merchant bankers.?(Teliga, -5-8)


G. PROMOTIONAL MATERIALS


“The crowning coup of his advertising strategy this sprung will be to underwrite the entire issue of Time Atlantic’s 75th anniversary edition, slated to hit newsstands March and reach more than 65000 readers in Europe, Africa and the Middle East.?(Forden, -0-8)


“This operation is in the Armani tradition of taking dominant or exclusive positions in key issues of important magazines.?(Forden, -0-8)


“Armani appeared on the cover of the magazine in April 18 and aha advertised there over the years to reach a broad readership, particularly men, who are mote difficult to target with traditional positions in fashion magazines.?(Forden, -0-8)


“The Time project is the kingpin in a veritable blitz of ventures across Europe in which Armani is the sole advertiser. Last fall, he took the entire section of The Sunday Times of London. In Italy last month, Armani appeared as the exclusive advertiser in weekly news magazine L’Espresso, Milan financial Il Sole 4 Ore, daily newspaper La Republicca and its weekly weekend magazine D. Armani bought an entire issue of Le Monde last month to the opening of the Emporio Armani boutique and caf?in the legendary Publicis drugstore site on Paris?Left bank.?(Forden, -0-8)


“Time has agreed to send the issue to a VIP list of some 10,000 people, including heads of state in Europe, the Middle East and Africa; chief executives officers of Fortune Global 500 companies; members of the European Parliament, and senior managers across Europe.?(Forden, -0-8)


At the 70th Academy Awards, “Armani dressed Matt Damon and Ben Affleck, Oscar winners for best original screenplay for Good Will Hunting.?(Williams, -5-8)


“Nabbing these two was clearly a coup for Armani. Affleck and Damon could be the Gen X’s version of Paul Newman and Robert Redford.?(Williams, -5-8)


II. S.W.O.T. ANALYSIS


STRENGTHS?Strong positive image of the product ? WEAKNESSES?Inability to access secondary markets.?


OPPORTUNITIES?Aiming for the smallest consumer segment of all- the individual? THREATS?Fashion industry is not a stable market. ?


A. KEY COMPETITORS


Giorgio Armani’s main competitors are Italian and French houses of design.


“He is known as a workaholic, who can sometimes be rude and arrogant. His dislike of fellow Italian designers Gianni Versace and Valentino has recently been suppressed for the benefit of the international press.?(Krebs, 10-7)


“The freestanding London store is at 4-44 New Bond Street, near to the new cK Calvin Klein store as well as the upcoming Versace Jeans Couture and Tommy Hilfiger stores. Other designer shops nearby include Polo Ralph Lauren, Emporio Armani and Ermenegildo Zegna.?= Donna Karan (Fallon, 11-10-7)


“In 14, the A/X-stores were taken over by Club 1 USA, Inc., but continuously struggled to compete with lower-priced competitors like Banana Republic.?(Fallon, 11-10-7)


B. RELEVANT MACRO ENVIRONMENT


“Price has become important in the 17 Italian fashion market. The Italian lira is at a 0% high rate because of its re-entry in Europe’s Exchange Rate Mechanism. Italian consumers have also become value conscious and fashion designers Giorgio Armani and Gianfranco Ferre plan to decrease their prices accordingly. Armani will decrease prices 10% to 0%.?Conti, 1-1-6)


?Italy and the EU partners agreed last month to fix the lira at 0 against the mark ?a rate that is still competitive, but not as much as before?The French, who had lobbied in Brussels last month for an even stronger lira, said their Italian competitors had an unfair edge when it came to exports.?(Conti, 1-1-6)


“In fact, some fashion houses are looking at the bright side of the new lira. Imports such as leather, cotton and silk will cost less, companies will no longer have to play a guessing game about the lira’s exchange rate when they fix their prices for the next year, and the Italian economy as a whole will be perceived as more stable.?(Conti, 1-1-6)


?EU nations taking part in the European Monetary Union, scheduled for Jan. 1, 1.?(Conti, 1-1-6)


IV. SEGMENTATION, TARGETING AND POSITIONING


MISSION


Eg. Giorgio Armani’s mission is to build a trusting relationship with its business partners.


MARKETING GOALS CONSISTENT WITH MISSION


Eg. The main marketing goal of Giorgio Armani is spreading. In order to support their mission, they need to achieve the following satisfy customer desires, strengthen their relationships with customers, and improve the quality of their designs as well as keeping up with the increasing demand.


“With a group of well-diversified customers, Giorgio Armani has a highly differentiated market segment. Each product is designed according to the needs and desire of their customers, in order to fit them within their segments.


Armani wants to expand the number of his stores significantly. Most visibly, he opened up two huge flagship stores in New York City on Madison Avenue, one for the top line and one for Emporio Armani. Armani seemingly pursues the establishment of a lifestyle brand Armani. This movement is reflected in the various attempts to offer a wide variety of products under the Armani-label. Such as the in 16 introduced Armani Neve winter sportswear line, the Armani Golf sportswear line (both produced previously by Skinea and now by Simint), and the introduction of custom-made bridal gowns, as part of the Borgonuovo-1 line. Also, Classico, a new luxurious and costly line for men and women will be introduced. Here, Armani wants to offer modern interpretations of classic designs. In addition, Armani sells a wide range of home accessories under the Emporio Armani-label. In 17, the first Armani Jeans store in Rome, Italy also included a Armani book shop, selling publications about various artistic subjects, like fashion and photography.?(Krebs, 10-7)


“Top Italian fashion houses plan to expand sales and distribution by moving into secondary markets outside of the key fashion centers. Giorgio Armani and Versace, for example, plan to open boutiques in cities to sell toned-down fashions priced 0% to 40% less than their top lines.?Forden, -4-8)


“Many of Italy’s major apparel houses are working on ways to further penetrate their traditional markets in Europe and the US by moving into secondary cities.?(Forden, -4-8)


“It also means they can achieve a more capillary penetration in areas where the top collection can’t go.?(Forden, -4-8)


PRICING


Eg. When considering what pricing strategy to use, there were several steps that needed to be followed in order to come up with a price that would satisfy both the target market and Armani itself. When identifying pricing constrains, I took into consideration that there is an increasing demand for Armani cloths.


DISTRIBUTION


Eg. Giorgio Armani has an indirect channel distribution where licensed dealers act as the intermediary between the manufacturer and its customers.


PROMOTION


Traditionally, Giorgio Armani has somewhat only used traditional advertising to market their lines. This would reach only a selected group of customers, mainly those who are very enthusiastic about fashion. The goal is to target a whole new segment of possible fashion enthusiasts, Generation X. To do this they need to change the way they have been advertising their products.


Armani has rarely used television and radio for promoting their products. I agree in continuing with that concept, to an extent. In targeting the generation X, they need to find a medium which the Xers use frequently. Television is the biggest medium for this group. However because Armani should not lose their mysterious image, they should not use commercials. Instead they should use a more “slick?way. I thought about using prime stars from TV shows such as “Friends? “Seinfield? and “ER?those that generation X watches, to project the “ideal?Armani image. The popularity of the shows and the role that these shows play in shaping the lives of people is tremendous. Xers identify themselves with the people that they see on television. The actors have made certain hairstyles popular, and even the type of clothes they wear popular. Therefore, by having the cast wearing their designs in the shows, should encourage Xers to want to own a Harley too.


The other medium is magazines. The magazines that I would use to target this segment are Sports Illustrated, GQ, Cosmopolitan, Esquire, Business Week and so on.


BIBLIOGRAPHY


Krebs, Jost Giorgio Armani. Hyper Fashion - October 17 Ed. http//www.unibw-muenchen.de/campus/WOW/v1041/hyper/armani.html


Conti, Samantha GFT license for Armani women’s lines not settled. WWD - April , 17. v17 n78 p17 (1)


Daily News Record, Armani, GFT weigh name change for NY-based unit.- Sara Gay Forden, July 16th , 17. v7 n85 p15 (1)


WWD, Armani, GFT weigh new name for Giorgio Armani Fashion Corp.-Sara Gay Forden, July 15th, 17. v174 n10 p1(1)


WWD, It’s time for Armani ad blitz.- Sara Gay Forden, Feb. 0th, 18. v175 n p1(1).


Daily News Record, New Sunshine Boys, The, Stan Williams.-March 5, 18. n6 p8 (1)


Houston Chronicle, Accent Armani The man behind the jacket, Linda GillanGriffin. May 5,17. p.


Houston Chronicle, Welcome back WONDER WOMAN.-Linda Gillan Griffin. March 0, 7. p1


Sydney Morning Herald. Tribes Man. Jane De Teliga. Feb.5, 7. p1


WWD. Italian’s far-reaching plans.-Sara Gay Forden. Feb. 4, 18. v175 n5 p4B


Daily News Record London store sets new marketing direction for Armani; first freestanding unit for Collezioni and Mani collections. James Fallon. Nov. 10, 17. V7 n15 p


WWD Italian fashion houses beset by higher lira, tight-fisted shopper. Samantha Conti, Dec. 1, 16. v17 n1 p1.


C. HISTORY


Late events “Giorgio Armani Fashion Corp (Armani USA) is entirely controlled by GFT, as well as the overseas distribution of the men’s and women’s diffusion collections, Giorgio Armani Le Collezioni, and the men’s bridge line, Mani.?(Forden, 7-16-7)


“Turin based GFT, also manufactures for Valentino, Calvin Klein, Emanuel Ungaro, Joseph Abboud and Nino Cerruti, among others.?(Forden, 7-16-7)


“The Giorgio Armani business represents around $64 million of GFT’s total sales. GFT’s US Armani business totals around $185 million.?(Forden, 7-15-7)


“Talks of the change comes when the industry is rife with speculation over the future of Armani’s women’s license with GFT, which has been up for renewal since March 17.?(Forden, 7-15-7) As rumors indicate, “Armani was beefing up capacity at Antinea, his directly owned manufacturer. The facility currently produces the Emporio Armani collection and there is speculation that it could also take on production of the women’s diffusion collection next year.?(Forden, 7-15-7)


“GFT managing director, .., announced the formation of Gruppo Industriale Marzotto, which will be GFT’s new parent company.?(Conti, 4--7)


GIM (Gruppo Industiale Marotto), was “created from the fusion of HPI - - an industrial holding that contains GFT and Fila - - and Marotto.?(Conti, 4--7)


“Armani is GFT’s most important licensee.?(Conti, 4--7)


“The main Armani lines are produced by Italys largest manufacturer of designer garments, Gruppo GFT. Armani garments account for about 0% of GFT sales and are therefore GFTs most important license. In 14, Armani tried to take over GFT with the help of American investors, presumably to help out Armanis sportswear affiliate, Simint, which had gotten into financial trouble at the time. Simint is now recovering, after cutting its staff, changing its distribution structure, and concentrating its production in Italy. An economic turnaround could be achieved, which resulted in 15/16 in sales of 55 billion Lira ($160 million) and turning a loss of 4 billion Lira ($16 million) in the previous year to a net profit 5.4 billion Lira ($.5 million). Sales for the fiscal year 16/17 are expected to be 180 billion Lira ($117 million). Armani is said to be interested in expanding his own production capabilities. For that purpose, Armani is expected either to shift the production of his main lines from GFT to Simint or Antinea or he might take over stock from GFT, who are expected to make such an offer in order to keep their most profitable client.?(Krebs, 10-7)





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