Introduction.
The recent scandal of child exploitation, two campaigns have left consumers lost and confused in what to think about one of the biggest trend-forward designer brands. Building trust with consumers since 1919, Balenciaga has taken many turns regarding art direction but taken it too far when it came to two advertorial campaigns featuring child pornography cases and child sexual exploitation suggestive images. After growing dramatically with what is now the biggest consumer of luxury fashion, their target audience Generation Z and Millennials, (Wintermeier, 2021), they encountered one of the biggest cultural cancellations seen by the fashion industry in 2022 (Lau, 2023).
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Finding a way to overcome such damaging controversy requires analysis of the
external market trends, as well as internally questioning where to improve and what
to capitalise on, this will be structured using Paul Smith’s SOSTAC planning system.
The structure simply questions where the brand is currently and where it can go,
whilst looking at how Balenciaga will achieve the goal found in the situational
analysis. This goal stems from three possible outcomes, revitalise, relaunch and
reposition, explained in the report is the choice to reposition, aligning this goal
with the Summer23 campaign plan of showcasing a stripped back humanised
brand to create a relationship with their consumers again, something their target
market values highly (IBM, 2018). The website will also reference Fill and Turnbull's
Communication Mix (2019) and it's relevance in campaign planning.
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This goal will be developed through tactics, and built on the situational analysis
recommending both on and offline marketing ensuring achieving the SMART
objectives, based on consumer segmentation analysis, as factors majorly impact the
success of repositioning Balenciaga in the consumer mind. The objectives will add
value, get closer to the consumer and build the brand online, using sizzle, sell, serve and speak (Chaffey., et al, 2000). The report will also suggest a strategy which Balenciaga should undertake based on Ansoff’s Matrix 1957, the strategy choice of market penetration and product development is explained further whilst taking into consideration the risks when repositioning a brand after such controversy. The E-Portfolio addresses the budget and resource allocation Balenciaga would need to consider when launching this campaign idea. Actions and control featured in SOSTAC provide detailed specifics to the tactics and will help measure the success of the campaign efforts.
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Balenciaga could benefit from improving consumer perception after
seeing a loss of 7% towards the end of 2022 (Kirby, 2023), as well as the parent
group KERING also facing losses in other houses they own (KERING, 2023).
The reasoning for not relaunching or revitalising, is after researching into
Balenciaga’s popularity, 14.2m Instagram followers remained engaged (Instagram, 2023),
resulting in no need to relaunch an entirely new brand and no need to revitalise as pre-scandal,
even their more avant-garde designs were popular. Repositioning them provides the target market
with familiarity they value but improves the brand and puts any consumer doubt to rest.
