Tod's Group

Date: 2015-10-07; view: 1091.

Introduction of Company / History / Products

Chapter One

Appendix

References

Conclusion

Table of Contents

INDIVIDUAL ASSIGNMENT

Faculty of Economics

Taras Shevchenko National University of Kyiv

Subject: Marketing Management

Completed by

1^st year student of magistrates

specialty Business Administration

Carlo Adami

Kiev, 2015

Chapter One -Introduction of Company/History/Products

Chapter Two –Marketing Research

2.1 –Primary Demand

2.2 –SWOT Analysis

Chapter Three –Porftolio Analysis

Chapter Four –Marketing Strategy

4.1 –Segmentation and Positioning

4.1 –Competitive Strategy

4.3 –Growth Strategy

Tod's Group is one of the most important player operating in the creation, production and distribution of handmade shoes, clothings, and leather accessories, which are sold under four different luxury brands (Tod's, Hogan, Fay and Roger Vivier) in all over the world. The mission of the Group is to satisfy its customers by delivering them a high quality product, which is able to match, at the same time, their desires for a functional and confortable product, and their aspirations to become the owners of a prestigious and exclusive Italian fashion product (emotional branding).

Tod's S.p.A. is the operating holding of the Group. It is located in Sant'Elpidio a Mare, a little town in the centre of Italy, and it is listed on the Italian Stock Exchange (now member of the London Stock Exchange Group), even thought the majority of the equity (nearly 58% of the total) belongs to the Della Valle family, which founded the company in the 1970s. Other important stakeholders are: Capital Research and Management Company (5%); Oppenheimerfunds Inc. (3,5%); and the French investor Arnault Bernard (LVMH), by means the Delphine S.a.s. (3,5%). The Chief Executive Officer, and President of the company is Diego Della Valle, the man who has been able to transform a small shoes factory in a multinational corporation of fashion.

Tod's S.p.A. represents the production and the distribution centre of the Group, and totally covers internally the whole production value chain, in order to assure the maximum standard in quality. The company also controls some foreign sub-holdings, which are responsible, in part, of the marketing, promotion and public relations activities; and numerous limited companies, which run all the retail operations in several different countries. Because of this specific structure, the Group results to be present in Europe (89 directly operated retail stores - DOS, 16 franchised stores - FS), China (62, DOS, 1 FS), Japane (30 DOS, 1 FS), Corea (16 DOS, 7 FS), United States (13 DOS, 2 FS), and in the most significant countries of the world (Middle Est, Russia, Singapore et cetera).

Due to the fact Tod's is positioned as a high quality luxury manufacturer, the main competitors are Prada, Gucci, Ferragamo, Hermes and Louis Vuitton.

The Group presents revenues close to one billion euro, and a gross margin of 24% on sales. Italy represents one third of the total sales, the Far East more than a quarter, and the rest of Europe nearly the 20%. Between the brands, Tod's covers the 60% of the revenues, Hogan the 22%, Rover Vivier 12% and Fay the 6%. With 4 thousand employees (of which only less than 1% are executives), a net capital of 800 millions, and a negative net financial position Tod's emerges as one of the most sane and profitable Italian company in the middle enterprise segments.

The strategy of Tod's consists on incrementing the share of sales of the brands Fay and Roger Vivier, and in reducing the dependence of financial results on the Italian market. The company pays also attention to the etic, the environment and other sustainability issues. In fact, the shareholders have deliberated the destination of the 1% of the net profit in investments to sustain the geographical area in which Tod's is present. Furthermore, the company has sponsored the restructuring of the most important work of the Roman architecture and engineering in Italy, the Colosseum, with a financing of 25 millions Euro. That operation has contributed to increase the knowledge and the prestigious of the brand.