Marketing Channel Management Assessment Answer

Subject Name : Management

Introduction

Ralph Lauren company is the world-level leader in the marketing, design and distribution of luxury lifestyle products in 5 categories, namely, footwear and accessories, apparel, fragrances, home and hospitality (Ralph Lauren, 2023). The mission of the company is to become the favourite brand of consumers by laying emphasis on all marketing and operational activities in direction of customer centrism and making use of research to understand and influence customers. The main purpose of the research is to assess the business retail model of Polo Ralph Lauren, to evaluate their usage of intermediaries in channel distribution in both a practical sense and theoretical sense, judge the innovativeness in channel management and then analyze the weaknesses in channel structures as being affected by COVID.

Business model

Polo Ralph Lauren has an exclusive strong global presence. Its headquarters are located in New York, USA. It has branches in distinct metropolises all across the globe and has a broad distribution system. The marketing comprises more than 140 personalized outlets of Ralph Lauren, over 500 directly functioned outlets, more than 70 club Monaco outlets and about 250+ factory outlets (Chevalier & Gutsatz, 2020). Also, it carries out its operations via more than 400 concession workshops. It has also owned an online outlet for the simplicity of customers and over 10 e-commerce portals. The company's products are extensively available via a chief multi-brand e-commerce portal at the global level.

Ralph Lauren is planning to enter the subscription model with the launching of The Lauren Look. For about $125, customers can curate items from the most recent Lauren collections, which constitute the company's most broadly disbursed brand (McCoy & Chi, 2022). They acquire the shipment once their curated closet is complete and their favourite pieces are prioritized and can return them for new pieces or buy them at member prices.

Practical and theoretical analysis of intermediaries

Channel intermediaries constitute as the individuals and groups that make it probable for clienteles to have admittance to products. The distribution procedures of products can vary on the basis of the corporation that owns the item and the distribution technique used to deliver the product to consumers (Chen et al., 2020).

Ralph Lauren makes use of an intensive distribution strategy. It is termed as the marketing strategy that engages in making the products of the company available to consumers in as many places as possible. Ralph Lauren sells its products in small and large local shops, and national chains (Saxena et al., 2021).

However, there are a few drawbacks to intensive distribution channels. To disburse products to a wide range of locations, it is useful to have a huge supply of items to sell. It might involve spending money on production, materials and storage space. Placing the product in front of customers cannot confirm sales. Thus, spending money on intensive distribution is integrally risky. However, it may assist in improving the chances of raising sales and aid consumers to associate the brand with the product they require. Ralph Lauren can consider performing research on consumer habits, focus group analysis or testing on rewards and risks associated with intensive disbursement.

In 2021, Ralph Lauren operated over 4404 distribution channels throughout North America, 3920 distribution channels throughout Europe and over 500 distribution channels throughout Asia. The number of distribution channels reduced in North America to 3373 in 2022 and in Europe, increased to 5184 and in Asia, it got reduced to 446 distribution channels (Statista, 2022).

Ralph Lauren Corporation also make use of direct distribution nation of origin and in sites where it has subsidiary processes. This channel does not involve any wholesalers or other distributors. Also, it makes use of a modern version of retailing channels and e-commerce channels and makes sales through online retailers and via its company website (Chevalier & Gutsatz, 2020). One major advantage of making use of direct distribution is the ability of the company to acquire direct feedback from consumers. Such feedback may involve online and in-store surveys that ask consumers to rate their experience with Ralph Lauren representatives. This also helped the company in developing a better pricing model. It helps it in competing with other brands by providing sales or discounts along with offering standard pricing, charging less for its products on regular basis as compared to indirect distributors.

Innovation in channel management

Ralph Lauren has remained updated with the most recent progresses in marketing research and marketing information. It makes extensive use of innovative and new strategies to reach the target customers. Also, it hires top-of-the-field dealers to ease its promotional campaigns and marketing tactic. Every marketing drive launched by Ralph Lauren is competent memorable and more powerful than the former one. With the help of innovative market research, the company tend to base its marketing strategy on customer and market research (Cavusgil, 2021). It undertakes informed marketing campaigns and objectives based on the behavioural feedback of customers. It integrates consumer feedback in its marketing and distribution approach that have been grabbed by analyzing market trends, and customer requirements and wants.

IoT technology and digitization are revolutionizing and reshaping the retail sector, offering developments and new prospects in buyer service, all over the supply chain and in brick-and-mortar outlets and other distribution networks. In supplement to possibly revolutionizing consumer-facing submissions, IoT technologies might undertake a major part in retail supply chain and distribution functions (Sudheendranath, 2016). Ralph Lauren Corporation directs in carrying digital revolutions into outlets and linking the offline and online.

Polo Ralph Lauren has launched virtual stores in 2020. It enables customers to step into iconic flagship outlets of the company across the world from Beverly Hills and New York to Hong Kong and Paris. The experience at the virtual store attributes the newest collections, together with vintage and antique offerings, all shoppable from the comfort of home (Ralph Lauren, 2023).

Moreover, it runs interactive shoppable windows that help customers in interacting with the brand on the way. The screens exhibited large-size pictures of the popular products of the brand and passing-by customers can choose from 18 colour options. The interactive mobile application will enable users to buy products from their mobile devices directly. With the aid of mobile immediacy technology, the demonstrations allow customers to unlock interactive and exclusive content.

It operates a smart fitting room that guises like a usual dressing room embedded with a complete length mirror (Parmar, 2023). Products carried into the fitting room are perceived by interpretating RFID tags, warning the details of the item. Customers can view exclusive details of the item, request alternative sizes and colours, view stylist suggestions or request aid from associates for a highly engaging personal experience.

Weaknesses in channel structures

The influence of COVID-19 on the world, on the apparel industry and on the business of Ralph Lauren Corporation, is profound and wide-reaching. The major proportion of retail stores the company in Europe and North America and other parts of the world stayed temporarily closed because of the global pandemic. It has continuously assessed the location of its operations by location, taking into consideration the guidance of global health organizations and local governments to recognize when its operations can begin returning to business (Ralph Lauren, 2020).

On the other hand, its digital flagship businesses remained open and its fulfilment operations have also presumed following a brief closure period to improve safety and health protocols in its distribution centres. Such actions included extensive deep cleanings, execution of social isolation on-site and astounded work shifts.

The company took various actions to alleviate risk and offer its teams improved possessions and support amidst the COVID-19 pandemic, smearing the learnings and insights from its practice in China (Follett, 2020). As a major portion of this, Ralph Lauren has straightforwardly procured medical experts from WorldClinic to aid in decision-making. Actions realized consist of striking temporary shutting of distribution centres and stores, the worldwide restriction on corporate travel, and deep sanitization and cleanings across retail, corporate and distribution offices.

Conclusion

It can be concluded that the marketing strategy lay emphasis on offering superior quality goods and services, offering significant value to consumers and focusing on building consumer experience. Its distribution strategy is grounded on market and target customer research. It has formulated informed marketing drives and objectives based on the behavioural response of the customers. It tends to sell both directly and indirectly to the customers. It follows an intensive marketing strategy where it has made efforts to include its items in as many retailers as possible. This helped the company in ensuring that its products are available to customers in a distinct part of the nation. IoT and digitization technology have shaped and revolutionized the retail sector offering developments and new prospects in consumer service, during its supply chain. Its physical stores were temporarily got closed due to COVID-19 restrictions but its online sales channels have performed extremely well.

References

Cavusgil, S. T. (2021). Advancing knowledge on emerging markets: Past and future research in perspective. International Business Review, 30(2), 101796.

Chen, Z., Cao, H., Xu, F., Cheng, M., Wang, T., & Li, Y. (2020). Understanding the role of intermediaries in online social e-commerce: an exploratory study of beidian. Proceedings of the ACM on Human-Computer Interaction, 4(CSCW2), 1-24.

Chevalier, M., & Gutsatz, M. (2020). Luxury retail and digital management: Developing customer experience in a digital world. John Wiley & Sons.

Follett, C. (2020). Charity Rises to the Occasion amid the Pandemic.

McCoy, L., & Chi, T. (2022). Collaborative Consumption: A Study of Sustainability Presentation in Fashion Rental Platforms. Sustainability, 14(14), 8537.

Parmar, G. (2023). Smart Retailing: A Novel Approach for Retailing Business. In Big Data Analytics (pp. 143-172). Auerbach Publications.

Ralph Lauren. (2020). Ralph Lauren Corporation provides an update on COVID-19 response initiatives. Retrieved from https://corporate.ralphlauren.com/pr_200331_COVID19Update.html

Ralph Lauren. (2023). Innovation. Retrieved from https://corporate.ralphlauren.com/innovation

Ralph Lauren. (2023). Our purpose. Retrieved from https://corporate.ralphlauren.com/strategy

Saxena, N., John, S., & Deshpande, P. (2021). Application of Business Analytics in Corporate Enterprises: An Exploratory Study. IUP Journal of Business Strategy, 18(3).

Statista. (2022). Number of distribution channels of Ralph Lauren worldwide in 2022, by region. Retrieved from https://www.statista.com/statistics/268527/number-of-distribution-channels-of-ralph-lauren-worldwide-by-region/

Sudheendranath, R. (2016). Ralph Lauren Corporation – digitization in the luxury retail business. Retrieved from https://d3.harvard.edu/platform-rctom/submission/ralph-lauren-corporation-digitization-in-the-luxury-retail-business/

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