Creating a Diffusion Line For the Stella McCartney Brand Essay

Creating a Diffusion Line For the Stella McCartney Brand - Essay Example The paper "Creating a Diffusion Line For the Stella McCartney Brand" discovers the supply base of the Stella McCartney brand. Chung et al (2001) and Malhotra (1986) explain that brand personality can also be helpful in creating customer loyalty in the saturated domestic market, and this has been true of Stella McCartney. This is achieved through interaction with positive associations with the personalities of the consumers. Abedania (2010) states that this interaction helps a company to gain deeper understanding of the perception of consumers towards the brand. Stella McCartney has been able to tap into the value of its organized value chains to increase its profit margins, and reduce its expenses like transportation. A retail structure should enable a company to reach more target customers with the product and give an insight to their perceptions. An analysis of the company’s retail organizational structure indicates that it serves the needs of the organization. The company o perates 17 freestanding McCartney stores situated in Milan, New York, Los Angeles and London’s Mayfair, Manhattan’s Soho, Paris’ Palais Royal, LA’s West Hollywood, Rome and Miami. Currently, her collections are distributed in more than 50 countries through a network of 600 wholesale accounts including department stores and specialty shops. There is also an online shop for customers to purchase products online. This retail structure does not allow the company to have a total control on the delivery of its products. An overview of the supply base of the Stella McCartney brand From the above discussion, it is clear that Stella McCartney has an extensive supply chain. This supply chain serves the needs of the proposed diffusion brand and its proposed buying strategy in various ways. First, the extensive supply chain ensures that high-end designs more and easily accessible to the public. The customers are to be allowed to access lowly-priced but specially desi gned products for a limited time. Information from IBISWorld (2012) revels that offering products that are moderately priced than the original line will ensure that the devised buying strategy captures customers from less wealthy and younger demographics. This is a group of budget-conscious buyers and thus this strategy is important in ensure that customer demand is sustained all through the business periods, especially when the value of once-elite brands fades and they no longer sell as they used to. There is room for improvements that will help in ensuring that the existing supply chain serves the needs, and buying strategy of the proposed diffusion brand to a better level. One of the recommendations is to enter into lower-priced designer collaborations with many fast selling fashion retailers. Although the products will be offered at different price ranges, this step will result to increased sales and thus a general increase in revenue. The company is able to interact and communi cate with customers through various ways through its supply chain. For for example, it uses brochures and direct customer service which ensures that the needs of the customers are always taken into accountability when coming up with new designs. Global distribution strategy for taking the product forward to both the B2B and B2C consumer The company’s distribution strategy for taking the product forward to both the B2B and B2C should be formulated from a multichannel perspective.