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Consumer Behavior Research Paper

Dolce&Gabbana and its marketing strategy
Dolce and Gabbana Company is one of the most famous companies all over the world. It includes two brands: Dolce&Gabbana and D&G Dolce&Gabbana. It’s famous for luxury goods sectors and splendid clothing. The two founders of the Company are Domenico Dolce and Stefano Gabbana. They aren’t just stylistic and creative leaders; they always work out the strategies to develop their brands. They are mainly focused on the balanced development and well-organized business. The Company produces clothing, leather goods, footwear, knitwear and different accessories. The company is specialized in production and distribution of women’s and men’s leather clothing, ties, scarves, beachwear and underwear, shoes and in the year 2001 even introduced the children’s line. It also produces a lot of consumer goods that can be distributed only under license. For example, it has exclusive brand rights to Dolce&Gabbana eyewear, fragrances, clothing, and wristwatches.

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The marketing strategy of the Dolce&Gabbana Company is circumspect. The main aspect of it is creation and location of subsidiaries and stores all over the world. These subsidiaries acted independently and held their marketing politics. The second principle of the marketing strategy is the fact that the leaders follow their vision and work out not only expensive lines for celebrities and starts but also create clothing for people of moderate means, these collections are more affordable.

The History of the Company
The history of Dolce and Gabbana Company is inseparably connected with the lives of its main two leaders: Domenico Dolce and Stefano Gabbana. Dolce was born in Polizzi Generosa in Italy in 1958, received fashion education and at first worked in the small clothing factory for his family. Gabbana was born in 1962 in Venice, Italy and at university studying graphic design. These two persons met in the year 1980 while they were working in the atelier in Venice and from this moment on they started working together. Their first collection was ready in 1986, and it became popular all over the world. In 1990 they opened the boutique for women in Milan and represented premiere menswear collection. They also began to design for the Compliance line in Milan.
Dolce&Gabbana is one of the top international names equally with Gucci, Prada, Versace, and Armani. In 2005 Dolce and Gabbana claimed that they would split after 17 years, but Gabbana reassured people that “This is a love split, not a business split… Domenico and I are still very good friends and, as for the working relationship, we are still very much together. Business, in fact, has never been better.”

Customers and Advertising
The range of goods at Dolce&Gabbana Company is so great that practically every person can find things sold for all tastes and at inexpensive prices. The number of customers rises each year, and now in Dolce&Gabbana stores you can meet people of different age, gender social class, religion, culture, and region. The company is on everybody’s lips all over the world.

Good advertising in our era of information is the guaranteed success nowadays. So, advertising is a special sphere in Dolce&Gabbana brands and first of all; it is the responsibility of design-managed companies. Dolce&Gabbana Company has professional designers, who openly use the emotional language of design. The top designers address the company in different forums.
Despite all the inner forces of the company, I mean designers, managers and advertisers’ work, the popularity and fame of the Company are connected with famous stars who wear Dolce&Gabbana clothes. Dolce and Gabbana design clothes for the celebrities they like and among these celebrities are Madonna, Monica Bellucci, Isabella Rossellini and Angelina Jolie. Their favorite celebrity is Madonna, and so they design for Madonna everything she wants: “We love Madonna, so anything she asks we say yes because we love the person, the style, the music—everything.” They designed all Madonna’s costumes in 1993 for her Girlie Show. Dolce&Gabbana clothes for famous stars advertise the Company much more than any advertising tricks.

Revenues and Internal and External Communications
The last few years are characterized by great increases in business and finance sphere. In 2004 the revenues were 585.1 million euros that mean the rise of 23.2% compared with the previous period. The consolidated net income rose to 33.8% in comparison with the previous period. The wholesale revenues that include revenues of Dolce&Gabbana and D&G Dolce&Gabbana brands and all subsidiaries reached 867.5 million euros. The revenues improved by 15.1% in comparison with the previous fiscal year. By the end of 2004, the Company employed 1,776 people and had 73 retail stores over the world.

The Company is working in two directions: the first one is the production of the structure and the second one is the network of companies that coordinate the distribution. The main company, Dolce&Gabbana Industria, controls the facilities in Val d’Arno and Incisa, the companies that provide support service and DGS S.p.A. DGS S.p.A, for its turn, controls the own-store network. The Company has two international subsidiaries that are the US subsidiary in New York (was established in 1992) and The Japanese subsidiary in Tokyo (was established in 2001). The subsidiaries held marketing operations and retail them in their markets and co-ordinate wholesale. The company also has stores all over Europe and in China that are managed by local companies, which are also owned by Dolce&Gabbana S.p.A. The level of Dolce & Gabbana development is so high that now it doesn’t need any sponsors. It can sponsor smaller firms and companies because the revenues of the Company rise every year.

Customers and their influence
Dolce&Gabbana Company is the symbol of glamour in Italy and all over the world. “The brand stands for a timeless style for an unconventional luxury, which season after season combines innovation with the strong Mediterranean flavor of its origins” (Sozzani, 1999). Its strategy easily explains the popularity of the Company. The main peculiarity of the Company is the fact that it orientates on the wide circle of customers and so customers influence the adoption process for the brand. This influence is many-sided. Dolce & Gabbana’s variety of consumer goods depends on different levels of population and their needs. The company’s main aim is to satisfy all the requirements in clothing, shoes, fragrance and other goods. The needs depend on age, gender, religion, social class and many other factors. Let’s analyze Dolce&Gabbana’s production on the examples of social class and age. Dolce & Gabbana, taking into account social differentiation of the society, now is centered on the designing of two central lines for adults: D&G and Dolce & Gabbana. D&G is more oriented on people of modern means, and so has lower prices. The brand forms casual lines and the style are characterized as “urban inspiration”. This direction follows the time and the trends of culture. It goes without saying that D&G is trend-setting. Dolce & Gabbana, of course, is more expensive than D&G. This line is not so much influenced by the time as D&G and isn’t so changeable. It’s influenced by sartorial designs and represents a great variety of luxurious clothes. This line is popular among rich people, especially among pop stars and TV celebrities. Both lines present a broad spectrum of eyewear, underwear, beachwear, clothing, and fragrances.

D&G line presents goods for juniors too. The junior line is a separate one that designs clothes for children under age 13. Popular culture obviously influences this brand; the example is the Ibiza line of D&G Junior. D&G Junior designs clothes for children of different age and every season represents unique collections for boys and girls. These lines make it clear that Dolce & Gabbana is influenced by the society greatly.

Bibliography

1. Dolce & Gabbana. Dolce & Gabbana: Wildness. New York: Abbeville Press, 1998.
2. Katz, Marcelle. How We Met: Domenico Dolce and Stefano Gabbana. Independent on Sunday (August 3, 1997): 50-51.
3. Sozzani, Franca. Dolce & Gabbana. London: Thames & Hudson, 1999.

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