Strategic management and marketing for the luxury brand--BVLGARI Essay

Strategic management and marketing for the luxury brand--BVLGARI - Essay Example Bvlgari is now considered to be Italy’s â€Å"best known luxury brand† (Foulkes 2007, p.1). To capitalise on this positive brand identity, the company will be introducing a line of wedding gowns and high heels into the market. This report highlights an introduction of a new product into Bvulgari’s established market, offering a comprehensive analysis of external market factors that pose opportunities or threats to Bvlgari, micro-level considerations that could potentially impact success in the new product line launch, and an overview of the viability of the market to sustain the new product line. Between 2007 and 2009, the luxury good market experienced financial problems as a result of the global recession (Euromonitor 2011). However, the luxury market in Europe is in a recovery stage and BRIC nations are demanding more luxury products. On a global basis, demand for luxury products continues to escalate. In 2000, the global luxury market that includes cosmetics, jewellery, handbags and fragrances is estimated to be worth $170 billion USD (York University 2001). In 2012, China became the number one market for consumption of luxury products, overtaking all other global markets (Inocencio 2013). China has surpassed even Germany, Italy, the United States and the UK in luxury goods consumption volume. It has further been estimated that the global luxury market will increase to a value of â‚ ¬880 billion between 2014 and 2024 (Zargani 2014). nation, surpassed all markets in the world as the largest consumer of luxury products (Inocencio 2013), inclusive of Japan, Russia, Germany, Italy, the United Kingdom, the United States and Brazil. There is ample growth in luxury consumption and luxury marketer profitability as a result of developing economies in Asian nations. In the year 2014, it is expected that the global luxury sector will grow to a value of 880 billion Euros over the next 10 years (Zargani 2014). Hence, this is a lucrative global market with