Brand Management

Case Write Up
ELIE SAAB: GROWTH OF A GLOBAL
LUXURY BRAND

SUBMITTED TO:
DR. WAHEED

By Group 2:
NIHIT SINGHAL (SMBA 152034)
MUNAWAR (SMBA 152032)
DEVIKA SINGH ( 152017)
NISCHAL KANTH MONGAM (SMBA 152068)
SHARLA RAHMAN (SMBA 152070)
Summary:

Introduction:

Saab, conceived in Beirut, was nine years of age when he built up an enthusiasm for
dressmaking. He composed and outlined dresses for his sisters and utilized his mom's
tablecloths and blind for material. When he was 18, Saab opened his first atelier with
10 workers. His product offering around then included sumptuous night outfits and
wedding dresses. He got broad media scope when he included his first gathering at the
Casino Du Liban in Beirut. In 1982, Saab opened his first workshop in Beirut and
started planning extravagant night outfits and impeccable wedding dresses. His ability
for configuration is filled by his vocation in the 1980s. In 1990, Saab keeps on
growing its business by moving to a bigger studio in Beirut, and the association of
selective design appears in Europe. In 2000, he opened a salon and showroom in
Paris, to build its cosmopolitan and universal demographic. The leader store opened in
Paris in March 2007.

In June 2010, Elie Saab (ES) has opened its first lead store in the Gulf locale in the
prestigious Dubai Mall in Dubai. The new lead store is to fortify the closeness of the
brand in the United Arab Emirates, to make their items more available to
neighborhood and global clients in the locale. Shop offers day and night wear dresses,
shoes, sacks and extras from the most recent prepared to-wear (RTW) accumulations.
In July 2008, ES has opened its first boutique in the UK Harrods.

The organization arrangements to expand its nearness in the retail world by opening
extra stores in significant urban areas around the globe, including the U.S. what's
more, Asia. While the organization has seen a noteworthy development,
administration needs to manage the issue of picking the correct accomplices,
recognizing new markets with the most elevated development potential and above all,
to shield the brand from weakening.
Issues in the case:
Much of the organization's accomplishment in the past five years was the ascribe to
its quick development in the prepared to wear (RTW) product offering, as it turned
into the organization's new line of business. Brand is a vital part in the worldwide
extravagance fashion industry, as client purchased the item as well as its related
values in the terms of picture, quality, form, store environment and benefactor status.
At the design business, there are three layers of market with each claim progression.
In the first place was best level brands like ES are the level to the super-rich (24%),
represented almost a fourth of extravagance spending. The second level was the
"optimistic" market (36%), which bloomed amid the late 1980s and mid 1990s, as
brands prefer Gucci and LV extended far and wide and presented littler, more
moderate cowhide products that got to be materialistic trifle. The third was the level
as an" open" extravagance mark (40%, for example, Burberry, Coach, and so on that
had some expertise in extravagance frill for the rich white collar class. The worldwide
breakdown of extravagance item utilization in 2009 was 37% of extravagance
products were obtained in Asia, 35% in Europe, 24% in the USA and the rest 4%
were spreading far and wide.
During 2008-2010, ES do a few assentions to grow their Brand Portfolio, for example,
In 2008, ES framed a vital union with Tatweer (Dubai Properties) to create signature
inns.
In July 2008, ES opened its first UK boutique at Harrods in the "Eveningwear" office
on the main floor.
In September 2009, ES and Beaute Prestige International (BPI), the center scent
backup Shiseido Group, marked 10-year aroma and corrective permit contract.
In January 2010, ES marked with Weyves International Ltd. Furthermore, Oceano, a
uber yachting organization, as an accomplice on making of three mega yacths.
In June 2010, ES opened its first lead stores in the Gulf district in Dubai Mall.
As of 2010, ES Group utilized 150 representatives. ES isolate the gathering was
sorted out around two principle work, inventive capacity which oversaw by Elie Saab
involved all exercises identified with the outline and creation of the yearly
accumulations. The other capacity was the business work which oversaw by
Cavalcanti and secured the general organization operations, execution of techniques
and advancement of extension arrangements.
By 2010, ES had four essential product offerings: Haute Couture, RTW, extras and
wedding dresses.
In the right on time of 2000 until 2008 the pattern of RTW and embellishments give
ES the greatest rate of offers, this circumstance indicate us if ES did not protect their
image in weakening which could be bit by bit moved ES to lower portion mark rather
than their selectiveness.

Answer 1
Their center business is Haute Couture yet they have a sum of four essential items
lines: Haute Couture, Ready-To-Wear, Accessories, and Wedding Dresses.

On top of these principle four product offerings "ES framed a vital organization
together with Tatweer (Dubai Properties) to create signature lodgings" (Shuayto and
Khayyal, 2012, p.4). Framed a 10-year aroma and beautifiers permit contract with
Beaute Prestige International (BPI) and made a mark scent.

ES later on marked with Weyves International Ltd. to chip away at the production of
three uber yachts. There Augmented Services is of Yatches and High end services.

Answer 2

Strengths
- Exclusivity in Haute Couture
- Having Local Expertise
- Investment and Trust in Stars and Royal people
- One of the Few certified houses for Couture

Weakness
- Dilution issues
- Low Sales in USA, Russia and Asia
- Less presence in Multi brand Shops

Opportunities
- Growth of HWNI
- Potential in Asian Market
- Growth potential in USA Market

Threats
- Party people not investing much in Haute Couture
- Affordability
- Ladies are interested in competitor brands
Competitive advantage:
Their upper hand is in their definitive customized encounter they give to their Haute
Couture mark clients. This is done however the identity and know-how of the planner
Elie Saab who truly applies the standards of Haute Couture.

Answer 3.

The company is in the Maturity Stage of the Product life cycle development. Elie
Saab products have grown over last few decades and have reached the Maturity stage.
The positioning has been for Exclusive Customers. The differentiation Stratgey has
changed over time by differentiating other products from Elie Saab products as having
high Exclusivity for Royal People. Now a days Elie Saab is targeting high Net worth
Individual people from Russia, China and other emerging Markets

They opened a Flag Ship store on Dubai and have Signature Hotels in Dubai in 2008
with Tatweer Properties. They invest a lot in Fashion Shows and differentiated
themselves as an Exclusive brand.

Answer 4.
The company was having different entry modes such as
a) Licensing
b) Partnerships
c) Third party distribution
d) Company owned stores

The Current entry Strategy is to introduce more day wear to the RTW collection and
is to have variety in them. To provide Luxury with affordable prices and good
Quality Service and Life time Customer Experience. They were currently having less
stores as compared to previous records. Licensing minimizes the risk of fake products
but has limitation of limited contract time.

Partnership brings shared ideas and combines resources of both the companies but has
limitation of difficulty to manage and control. Partner may become a rival
The company Vision was to place the brand on any product line that was considered
luxurious and exclusive.

Answer 5

Definitely ES should go for new Markets as there is great Growth potential in new
Markets such as Affordable luxury Market It can be produced in High Volume
having high profit Margin. They should maintain exclusivity and target Ready to
Wear Collection Market for affordable market.

For this the strategy adopted was of opening New stores in the countries where there
are High net worth Individuals in China there is maximum of 31% growth in number
of HNWIs . Through the above entry modes the advantage is to have good Customer
Satisfaction whereas the issue to have not faked products in different areas. Hence
emerging Markets such as China, Russia, India and several other countries be
targeted.

Answer 6

Recommendation is to maintain its Exclusivity in Haute Couture and Invest in New

markets for RTW

Maintain Brand image and prevent it from Dilution, have proper communication and
increase Advertising spend which is currently less as compared to other form of
communication. Increase Brand Loyalty

Maintain its Customer service as better customer service retains the brand Loyalty.
Diversify its product base. The marketing Mix strategy has all the 4 P to be
considered. ES should go for promotions having high Celebrity content. The price
should be reduced as comparison for Affordability. The product is to be focussed as
Highly Exclusive product. ES should enter new places for Emerging Markets such as
China, Russia, India and several other opportunities.