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Ralph Lauren Bear Analysis

1844 words - 8 pages

Date: March 15th, 2013

To: Jackwyn L. Nemerov, Executive Vice President of Ralph Lauren Corporation

From: Yousuf Masud

Subject: Brand Equity Analysis and Recommendations for Ralph Lauren Corporation

Ralph Lauren Corporation, formerly known as Polo Ralph Lauren Corporation, is an upscale lifestyle and clothing company whose name has been associated with maturity and class since its inception in 1967 in New York City. It has been a major leader in the economic sector of consumer goods for years and has dominated the fields of design, marketing and distribution of premium lifestyle products. Despite the emergence of new edgy-fashion brands, Ralph Lauren still holds tremendous ...view middle of the document...

He is a man who came from a working-class background and is grounded to his roots but still embraces the lifestyle of his clothing, which represents classic elegance and gracious living (Socha, 1998). The Ralph Lauren Corporation embodies the passion that Ralph Lauren put forth when he was a young man selling his own personally designed ties. Now, the Ralph Lauren design team is very dedicated with about 9 different department teams. “The teams help to develop concepts, themes and products for each brand and category. These teams work in close collaboration with merchandising, sales and production staff in order to gain market and other valuable input. A strong creative team helps the company to keep abreast with the changing requirements of the customers and have a competitive edge over its competitors” (Ralph Lauren Corporation, 2012). Despite the company’s age, the brand has been doing the right things to still hold a strong name and to be recognized globally.

Economic Impact on Ralph Lauren’s Sales
The winter holidays have positively impacted Ralph Lauren’s sales. “US and Europe markets helped boost the company’s sales primarily because of winter holidays” (Tomorrow’s outlook, 2013). The increase in growth can also be attributed to the recent economic recovery, which has been giving consumers more spending money (Investors alliance, 2013). Ralph Lauren’s sector performance has been up 7.8 percent since the beginning of 2012. The current economic climate may benefit Ralph Lauren Corporation, as consumers are more willing to spend money rather than save.

Financials: Ralph Lauren’s e-commerce and new stores have increased their market growth.

* ”Ralph Lauren’s net income for 2013 fiscal third quarter increased to $216 million or $2.31 per diluted share” (Byers, 2013)
* Total gross profit and net income has steadily increased over the past 3 years.

Increasing Brand Recognition Through Partnerships and Charity

Ralph Lauren was chosen as the official clothing supplier for the U.S Olympic team in 2008. This partnership has continued through the 2010 Winter Olympics and the 2012 Summer Olympics (Ralph lauren, 2012). The Ralph Lauren Corporation brand has benefitted greatly from this as the top U.S athletes have worn their clothing on the greatest international stage, The Olympics. In addition, Ralph Lauren has also been chosen as the official clothing supplier for Wimbledon and the US open. All officials and ball boys are dressed in Ralph Lauren designed clothing. Ralph Lauren also sponsors a number of professional golfers including Webb Simpson, Jonathan Byrd, and Morgan Pressel. These partnerships further increase Ralph Lauren’s brand recognition.

Charity
Despite Ralph Lauren’s association with people of upper class background, their charity work has been able to influence the brand positively among all social classes. The man Ralph Lauren has been very generous in “supporting higher education and programs which...

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