Strategic Management and Marketing for the Luxury Goods Vivienne Assignment

Strategic Management and Marketing for the Luxury Goods Vivienne Westwood - Assignment Example In such context, Luxury Goods Company Vivienne Westwood has been selected sample organization in the paper and study will conduct marketing audit in order to help the sample organization to decide marketing strategy. McDonald and Wilson (2011) suggested that organizations should use both strategic and tactical marketing plan in order design marketing strategy. According to these scholars, strategic marketing includes situational analysis, customer segmentation, and macro environmental audit while tactical marketing plan includes implementation marketing strategies. The paper will follow the mentioned approach while doing marketing audit for Vivienne Westwood. Before going to the main discussion, the study will analyze the business situation and macro environment for Vivienne Westwood in order to create background for marketing audit. Situational Analysis There is no doubt that primary operational hub for Vivienne Westwood is UK and therefore the study will concentrate on macro enviro nmental parameters of UK which can influence business dimensions of Vivienne Westwood. ... ion in UK (British Fashion Council, 2012) The above diagram is showing the rise of luxury consumption expenditure in UK while the following diagram will depict the structure of designer and luxury fashion industry in UK. Figure 2: Industry Structure (British Fashion Council, 2012) It is evident from the diagram that retail luxury clothing and footwear are the primary revenue generating option for designers like Vivienne Westwood, Paul Smith, Burberry, Stella McCartney, Mulberry etc. In such context, PEST (Political, economic, social and technological) analysis can be done in order to understand macro environmental aspects of UK. Political Government of UK follows trade policy as directed in NATO or North Atlantic Treaty Organization. However, in recent years the UK government has taken steps as budget cuts (more than 20%) in entertainment, fashion and sports sector which negatively affected growth of fashion and designer merchandises manufacturing sector (British Fashion Council, 201 2). The government has also reduced corporate tax to 23% and such reduction would bound to increase operating margin for fashion retailers like Vivienne Westwood, Paul Smith, Burberry and others. Economic Spending capacity of people is being negatively affected by the trailing effect of Economic recession started in 2008 and Sovereign debt crisis. For example, the industry growth has been dipped by almost 0.2% in recent years (Marketline, 2012). However, British Fashion Council (2012) reported that economic slowdown might have increased cost of manufacturing for luxury retailers like Vivienne Westwood, Paul Smith, Burberry and others but it has hardly any impact on luxury consumption in UK. This divergence occurs due to the fact that generally affluent class purchases luxury products and