Mango Case Study Essay
MANGO was established in 1984 with the opening of their first store in Barcelona, Spain. H. E. by Mango is a men’s line created in 2008. MANGO primary target market is mainly women aged 20-35 years old. Young, urban women, career driven, love fashion and want to wear the latest fashion trends. Ethnicity doesn’t make a big difference since company now has its stores in over 100 countries and it is still growing. The company believes that 30% of the passersby are actually within their target market. MANGO’s secondary target market for sub-brand H. E. is young men who care about fashion trends.
MANGO proposes clothes that are at the same time trendy and practical. Of course the stylists are inspired by fashion shows but they have to design more than 70% of basic clothes and around 30% of “fashion” products. Prices remain affordable even though they are higher than Zara. MANGO’s goal consists in proposing clothes for everything. That is the reason why the brand opened different lines: casual sport, suit and jeans. Mango is an excellent example of a smart marketing mix tools usage. Place All their stores are in prime locations (if we take NYC, for example, MANGO is located in Soho and on 5th Avenue).
MANGO stores create a pleasant environment in which customers can enjoy the shopping experience. They are comfortable, spacious and luminous, with a spirit of boutique rather than that of a chain. Promotion MANGO constantly works on its image via communications, campaigns, PR events and celebrities to support its fashion presence and promote the brand. Unlike Zara (main competitor) which has policy of zero advertising and prefers to invest a percentage of revenues in opening new stores instead. Thus, Zara has 8 stores in NYC versus Mango with its 3 stores.
Product MANGO is characterized by offering fashion for the young, modern and urban woman. It has its own design which adopts the latest fashion tendencies. All the lines in MANGO collection can be combined with different accessories like shoes, bags, belts, costume jewelry and other products which are made by MANGO. Price MANGO offers moderate pricing suited for their target audience. They have announced a 20% price reduction in 2012 to adapt to the new global economic situation, in an effort to offer good-quality products at lowers prices to its customers.
This seems to be a brilliant way to add positive and differential element in their advertising campaign. Place, product and price are reflected in a smart promotion which is focused on the company’s target market. MANGO actively practices customer driven marketing strategy. It is all about reaching out to their customer: they have “keep the beat” blog (where they give you an advice on how to organize your closet, discuss the trends, etc. ), Facebook page, Pinterest page, MANGO Youtube channel (features videos from the photo shoots).
All these tools are being used to keep in touch with the customers and take every opportunity to promote and market the brand. Likewise, MANGO has recently launched a new competition to engage fans through sharing their Street Style look on the brand’s website. The winners will receive a gift card and will be published in MANGO online magazine. Celebrities are the center of each communication campaign of their fashion line: Penelope Cruz, Monica Cruz, Scarlett Johansson and Olivia Palermo have been the faces of MANGO’s ads.
This advertising strategy makes a lot of sense given the fact that these women are elegant but also modern – a perfect role model for MANGO’s target audience. Company constantly works on its image. One of the examples is the “El Boton” MANGO Fashion Awards created in 2007. It offers young designers throughout the world the opportunity to participate in an international fashion design competition. The aim of this event is give young designers access to a new media platform, as well as the opportunity to market their collections. This campaign has a positive impact on the brand image and company positioning.
It benefits the company’s image greatly, it creates interest and it helps the brand to stand out and be different from its competitors. This kind of initiative is both interesting and exciting in the sense that it paves the way for the discovery and development of young designers. Company actively uses contractual vertical marketing system through their franchising strategy. This is certainly one of the company’s strengths. It allows them to be present worldwide and expand quickly, because they don’t have to shoulder the cost of store’s ownership.
MANGO’s turnover from online sales saw a huge increase in 2011-2012. It is not surprising, because MANGO online store is convenient, it offers free shipping on orders over $50, it includes outlet store, and it features great images of the merchandise for sale, newest catalog for the customers to choose from. Once again, it proofs that company knows what its customer needs and quickly provides a solution to satisfy them. MANGO does not manufacture any of its clothes. They rely on more than140 suppliers worldwide.
Given the fact that competition is very high, company should probably reconsider the way their merchandise is manufactured. For example Zara owns a factory in Spain which produces 50% of the merchandise. The company can design a new product and have finished goods in its stores in 4-5 weeks, whereas it takes MANGO up to 3-4 months. Shortening the product life cycle means greater success in meeting consumer preferences. If a design doesn’t sell well within a week, it is withdrawn from shops, further orders are canceled and a new design is pursued.
MANGO has opened 215 stores within American department store JCPenney. It offers a collection created exclusively for JCPenney by the design team of Mango. It might not be a great idea for MANGO, since JCPenney stores do not seem to be very popular among MANGO’s main target audience. And it might hurt brand’s “trendy” reputation. The collection offered at JCPenney is different, more affordable, and less fashionable. If this is an attempt to attract a new segment of the market then it most likely will not work considering the fact that JCPenney is not doing great financially.
In 2010 company obtained Made in Green certification, which proclaims that all Mango clothes are produced without the use of harmful substances, and with respect for the environment and the rights of the workers. It is a huge step ahead of company’s competitor Zara, which has recently faced accusation in poor labor conditions in their factories and Zara employees testified about severe abuse against them and they called company’s management “management by fear”. In the light of these events MANGO’s image as a socially responsible company seems to be very strong.
In conclusion it is safe to say that MANGO has its own distinctive positioning and strategy. Their concept is a well-defined product arising from the relationship between original design, styling, quality, unified brand image and a specific purpose – to dress women in the latest trends, both for their day-to-day and occasional needs. Their stores are designed with comfort and enjoyment in mind. Their product is displayed in small collections so that it can be easily appreciated, selected and tried. MANGO makes shopping a real experience.
MANGO has found its niche within the market. To face Zara, which does not advertise and creates basic items, Mango tries to be highly fashion and glamour and its budget for communication is very important. Thanks to its rapid international expansion of the company, MANGO has reached its goal of having a store in each of the most important cities in the world. It is planning to open at least one a day throughout 2012. The fact that the company continued to grow even during recession of 2008 proofs that their marketing strategy is working well.