Case Study Tracy
Case Study Tracy
An excellent overview of the business context, the nature and nuance of the business in the
apparel/fashion industry. Insights into the function of marketing are clear and models such as
SCA, the marketing strategy funnel, Doyle’s SHV and internet web strategies etc have been
discussed
Asanka de Mel founded LOVI in 2015 with the intention of incorporating Sri Lankan
aesthetic appeal and design into a line of clothing that stimulates fashion-conscious men and
women worldwide. Motivated by the ancient history of Sri Lanka and its kings and queens,
LOVI reintroduces fashionable Ceylonese garments to the fashion scene in order to create a
new identity for Sri Lankan clothing. Particularly, it innovates Sarongs - traditional clothing
item that has been worn for hundreds of years. Accordingly, in nature, LOVI specializes in
producing Sarongs bearing cultural and heritage of Sri Lanka people.
LOVI’s nuance is demonstrated through its product differentiation and segmentation. While
many Sarongs sold in the markets are traditional ones with little attraction for low-income
people, and two major direct competitors - Barefoot and Hameedia – offer high-end products,
LOVI provides creative/modern-designed products for medium income people who
accounting for a large percentage of the population.
Marketing plays an important role in creating LOVI’s value. Marketing helps the firm to
reach people and make them become consumers of products/services offered by the firm to
increase its value (Barone, 2019, as cited in Arustamyan et al., 2020)). Effective marketing
makes people believe that its products are excellent, encouraging them to purchase. Besides,
marketing aids to differentiate LOVI from other rivals through focusing upon marketing’s
uniqueness (Grant, 2016). Such roles aid to increase LOVI’s values, which is shown through
sustainable competitive advantage (SCA) and internet marketing strategies.
SCA embraces three types – differentiation – demonstrating uniqueness but still satisfying
customers’ needs, cost leadership - lowest delivered unit cost, and focus – paying attention to
a specific niche (Coyne Kevin, 1986). LOVI has gained SCA by all three types: it produces
Sarongs bearing cultural and heritage of Sri Lanka people (differentiation) at reasonable
prices that low and middle-income purchasers can by (cost leadership) and for hanging-out
occasions (focus). Accordingly, effective marketing helps LOVI to access target customers
to a large extent to introduce these features to the customers for differentiation on the market.
Consequently, SCA is well-known by clients to inspire them to purchase the firm’s products
and appreciate it. Ultimately, the firm’s value is increased. A study by Faryabi et al. (2011)
shows that marketing is the main element to adding value through SCA thanks to marketing’s
contribution to making SCA popular among participants. In the case of LOVI, marketing
helps it have a distinctive position on the market with few competitors.
Internet marketing, or digital marketing, connects brands and clients through centered
networking and social interaction (Chi, 2011). Internet marketing embraces any social
network, like Facebook, Instagram, Google, and allows businesses to reach a larger audience
and develop creative value propositions that were previously impossible (Vukasovič, 2013).
Internet marketing strategies enrich the brand with the products’ prominent features, which
provides consumers with a beneficial influence on safety or exclusivity, increases the brand's
value. In the case of LOVI, internet marketing truly contributes to the firm’s value when it
increases the customers’ interaction through social networks (hashtags on Facebook,
Instagram). The special thing about LOVI’s internet marketing is that LOVI does not
generally support or boost posts, but will occasionally do so if the post is extremely
significant, such as introducing a new retail partner or a new collection – this makes LOVI’s
products more luxurious at reasonable prices, bringing a feeling that consumers benefit from
the brand.
Q2: LOVI Ceylon are a distinct brand with a highly focused mission statement. Analyse the
brand values of LOVI and recommend how best the company can combine their social
message and heritage with commercial concerns. Your answer should show how this is
influenced by the cultural values of Sri Lanka.
Outstanding understanding of the importance and relevance of branding and brand values
are addressed in depth in line with insights into appropriate communication mix tools, be this
corporate communications, PR, prestigious institutions in the country, e.g. Art galleries. A
background understanding of Sri Lanka is evident. Use of Hofstede model well applied
LOVI’s branding and brand values are critical to implementing its mission. LOVI’s brand
belongs to experience brand which brings image of shared associations, emotions & personal
values. The firm’s branding and brand values are encouraged through advertising with the
using of communication mix tools – social media, events, and influencers for PR. Social
media include Instagram to share stories and announce new collections, supporting LOVI to
bring special identity to a large number of people without geographical boundary restriction
(Janssen & Janssen, 2018). Besides, events, like Colombia’s Fashion Week by LOVI, allow
people to experience the “true and real” brand in a real world, making them feel to be
immersed in the brand’s products, improving the brand awareness among people
(Zarantonello & Schmitt, 2015). Meanwhile, influencers for PR effectively boost branding
since they offer a fantastic range for a brand because of the already established connection
and trust between them and their followers (Vyatkina, 2020). Therefore, communication mix
tools allow LOVI to accomplish its mission, which in turns boost brand values for the firm to
strengthen its mission.
However, LOVI can combine their social message and heritage with commercial concerns
through promotional videos on Facebook that inspire people to purchase Sarongs to donate
products for poor people. This is based on Sri Lanka’s cultural dimensions through
Hofstede’s model. Power distance in Sri Lanka is very high (80), meaning that its society is
relatively hierarchical. A score of 35 in Individualism-Collectiveness indicates that Sri Lanka
is a collectivistic society - a close, lifetime engagement to the member 'group,' whether it is a
family, extended family, or extended relationships. Regarding Masculinity-Femininity, Sri
Lanka, with a score of 10, is thus classified as a Feminine society. The emphasis is on
"working to live," supervisors strive for agreement, and people value fairness, togetherness,
and quality in their working lives. Since Sri Lankans are more considerate of uncertainty and
ambiguity (45), the culture has moderately low uncertainty avoidance, having a fair amount
of openness to new ideas. Regarding long-term orientation, Sri Lanka has a moderate score
(45), meaning that it prefer to uphold time-honored traditions and norms while being
skeptical of societal change. More especially, Sri Lanka has no score of Indulgence, implying
that people have no control over their desires and impulses. Accordingly, LOVI invites
female influencers to advertise its Sarongs (e.g. Femininity), and demonstrates Sarongs given
to poor people (Collectivism), taking advantage of new ideas (Low uncertainty avoidance)
since LOVI has not used promotional videos. Therefore, it is expected that the
recommendation helps to advertise heritage’s beauty while still conveying social commitment
message “together as one”.
Brands from certain parts of the world face colossal challenges when competing on the
global stage. Based on your reading, suggest how brands from the developing world can
compete with those from the developed one? Your answer should include practical as well
as theoretical suggestions that would be affordable for a company like LOVI.
Globalization encourages different companies in the same field to enter the shared global
markets to compete with each other. The globalization facilitates economies of many nations,
from which leveraging the income of the people. Accordingly, their demands for special
products that still satisfy their needs increase, for which companies with differentiation grow
strong in the globalization (Aničić & Nestorović, 2020). According to Hofstede, Sri Lanka is
open to changes while still upholding time-honored traditions. This means that the consumers
prefer standard Sarongs with little innovation; however, they still accept new creative ideas
for Sarongs to experience new things. Nevertheless, bringing the products to the global
markets means that products need to meet diversified demands of people of different cultures.
Accordingly, product standardization - setting identical characteristics for a particular good or
service – appears not to be suitable. In the global context, it is claimed that product adaptation
is more effective for the firms to win the consumers’ hearts than product standardization if
they wish to target global clients.
- Effect of globalization/geo-politics on brand
- Attitudes of people to standardization/adaptation
- Strategies?
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Janssen, D., & Janssen, C. (2018). What is Online Advertising? Techopedia.
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