Strategy As Success Driver (Ralph Lauren)

A good strategy is like a house foundation. Without it, whatever you wish to build will lack proper stability and, in the long run, it will collapse into itself. That's why the right strategy is crucial to the success of any project, campaign, brand, or business.

Everything starts with a plan, a strategy, a "point A to point B" master plan that will help us stay on track and build things in alignment with the bigger picture. Even an architect builds a needed foundation based on the entire idea of the house. If one is building a skyscraper, they won't exactly start with a foundation of a cottage.

And so with that in mind, we can see that it's the same in business and branding. The bigger the project or the company, the bigger and more complex the strategy will become. If we take into account multifaceted brands like Ralph Lauren, Armani or Hermes, for example, by scanning through their websites and portfolios, you will quickly gather that with so many different aspects to the brand, each category needs a strategy and approach of its own. Of course, there is an "umbrella" strategy, a bigger picture vision, but throughout the company, that main strategy gets used to get everyone immersed in the brand's essence, through which they can then create "sub-strategies" and plans that will help propel the brand forward.

The Ralph Lauren brand is a great example of how re-strategising can lead to newfound success. Up until 2017, the brand was in decline. And then they've appointed a new CEO, Patrice Louvet, who turned the tide and had the company turn towards the continual growth in profits and popularity.

"Over eight years, Louvet has refashioned a company whose top line, $7.1 billion in the most recent fiscal year, is on a steady upward course, and whose profits and operating margins are at 13-year highs." (Source: fortune.com)

Another proof of how laser-focused they are on a great strategy is found on their website. (Ralph Lauren) They recently posted an updated strategy titled Next Great Chapter: Drive, underpinned by Ralph Lauren's quote, “I’ve always looked at the business as an evolution. We’re never standing still, and we’re never chasing anyone. Everything is a new chapter.” Can't you just feel their strategy essence through this? Constant evolution, authenticity, going forward.

There are three Strategic Growth Drivers to their strategy found on their website:

1 - Elevate & Energize Our Lifestyle Brand: For nearly 60 years, Ralph Lauren has inspired people to dream and step into cinematic worlds that are both inclusive and aspirational, allowing us to build lasting connections with consumers across generations and geographies.

2 - Drive The Core & Expand More: At the heart of our product strategy is Ralph's vision that is rooted in quality, timelessness and authenticity.

3 - Win in Key Cities with Our Consumer Ecosystem: Whether shopping in Shanghai, London, Paris or New York, we deliver consistent, elevated and digitally connected experiences to consumers around the world.

This brings us to another interesting point:

"Some of Louvet’s changes involved making Ralph Lauren smaller to make it stronger. Building on Larsson’s work, he continued to get the brand out of department stores that were not showcasing it well." (Source: fortune.com)

It's a well-known fact that when it comes to luxury branding, less is more. Their marketing strategies are very different from the usual go-to tactics that non-luxury brands use. The luxury sector prides itself on the exclusivity, one-of-a-kind products, craftsmanship, and timeless pieces that are hard to obtain. And so, for a brand like Ralph Lauren, too much availability and an oversaturated market with their products means loss of the sense of exclusivity. So now you can understand why it was important for Louvet to eliminate the brand's presence from stores that were creating a distorted brand image of easily available or of lesser quality products.

And now let's look at a topic that is of utmost interest to a lot of companies at the moment - getting sustained attention, loyalty, and approval from young people.

A lot of luxury brands have struggled lately to sustain continual growth because of the rapid changes in cultural and societal mindset. People care much more about sustainability and "realness" of the brand. Especially young people are drifting away from the "old-school" luxury perception, and rather ask themselves "is this product really quality, should I pay such a price for it, is it made from sustainable materials, or is there a better product on the market that I can look into?"

"Thirty percent of Gen Zers surveyed in the US and UK said they would 'revert to their ‘go to’ brand for a new product or service' when making purchases, according to a recent survey. More than double that portion, 62 percent, said they would check out other options, even if they have a favorite brand. And among those with a favorite brand, more than 50 percent of Gen Zers would switch it up if another brand were cheaper or of higher quality. " (Source: mckinsey.com)

We can see that brand loyalty is a hard-earned thing these days among young people. So that makes the following research even more compelling because it tells us that Ralph Lauren must be doing something right, and there is a lot to learn from their strategies and approach right now.

"Whatever the balance of art and science, the company is winning over young customers. Research firm Kantar’s BrandZ tracker found Ralph Lauren has the fourth-highest brand equity in the luxury apparel category among young people, a marked improvement from just five years ago." (Source: fortune.com)

I think that Ralph Lauren is in for a winning season in the game of luxury brands, and that they will have many more successful campaigns coming!

Now that you've gained insight into what a great strategy can do for a business and brand, make sure to have a good look at what can be shifted, what can be optimised and improved in order to drive more success in your own journey. If you think you need help in creating a strategic master plan for the way forward, get in touch, and I'll be happy to help you create a Brand Evolution Strategy that will power the expansion and growth towards your goals.

Till the next read!

Teja Jereb