Eileen Fisher’s Brand Description
The Eileen Fisher brand could be described as beautiful simple designs intended to move with life dynamics. The brand statement clarifies what Eileen Fisher is all about. The brand shows that the company is involved in designing and marketing beautiful clothes for customers who value high-quality clothes.
Simplicity and good designs have helped Eileen Fisher Company to attract and retain customers. Most of the customers are older than 50 years. It is also clear that the brand promises customers dynamics in clothing designs. Therefore, clothes are designed based on changing fashion trends. Trends are essential in the fashion industry because the sector experiences change annually. Customers are loyal to the brand, and they have been following and buying new clothing designs produced by the company. Therefore, the brand achieves its goal of fulfilling the promise made to customers. If the customers do not shift with the changing styles and designs, then it could be concluded that the brand doe not make convincing promise statements to customers. It has been shown that company brands help them keep in business by attracting and retaining customers.
The sources of equity of Eileen Fisher Company are finances and customer-based perceptions. The financial equity could be measured by quantitative methods of research which involve analysis of data through statistical methods. For example, the graph presented in the case study shows a steady rise in sales from 1985 (0.2 million USD) to 2008 (272.9 million USD). The financial source of brand equity could imply that customers buy some clothes from the company although they could be more expensive than those produced by other companies. Therefore, customers could pay higher prices for clothes that have an established brand. Customer-based perceptions about the brand could be measured by qualitative methods of research which involve data collection and analysis. Data are not in the form of numbers. In the case study, customers express their feelings about the brand. When they learn that the brand is expected to experience major changes, they get worried that they would lack the right sizes of clothes to purchase from the company. The outcomes of the two sources of brand equity are improved financial performance and customer satisfaction.
Repositioning the Brand to Target the Emerging Segments
Eileen Fisher should reposition the brand to target the emerging segments. There are two main pros that the company would have by focusing on the new segments. Firstly, it would reap the benefits associated with first-mover. Benefits would be realized if the new segments would produce good business for the company. Secondly, the company would benefit from new capital available in the emerging segments. Research demonstrates that emerging segments have untapped capital that is tapped by first-movers. In fact, Eileen Fisher would access new capital essential for growth and expansion in different segments across the world. On the other hand, targeting emerging segments has disadvantages. Firstly, it would be difficult for the company to overcome new customer risks. Customer preferences and purchasing behaviors might be different from those in the established segments. Overcoming customer risks would be key to conducting successful business in the emerging segments. Another disadvantage is that there would be a high level of business uncertainty in the emerging segments. Therefore, Eileen Fisher Company would make a big mistake by targeting emerging segments which would result in big financial losses.
Branding Strategy
Assuming that the new segment is profitable and needs to be targeted, the company should use a brand strategy that would make new customers develop some positive and long-lasting perceptions about its products. The company should not use its current brand. The case study shows that the majority of customers for the clothes produced by the company are the old persons. The middle-aged persons associate the clothes with the old. If the company uses its current brand, it would not capture most customers in the new segment because the customers would think that the same clothes for the old persons are being promoted. The company needs to use a branding strategy that would incorporate new business promises as well as retain the promises in the current brand.
However, if the company is doing well, it would change the entire brand so that it would enter the new segment with an independent brand. Launching a sub-brand along with the company brand would help the company retain its identity and business aspirations in the new segment. Some loyal customers in the new segment would help to sell the brand to other potential customers because they understand the quality of the products. The approach would ensure that the products would not be bought by only the aged. In addition, it would help the company not to lose its established segment. In fact, the established market is providing the company with good business revenues. However, the company is worried about what would happen when all the old customers move away from the market. Fortunately, the new branding strategy would take care of the business worry.