Erdem-TranThiThanhTruc

Teesside University – Business School

ERDEM

Brand Development Strategies Plan

Tran Thi Thanh Truc

5/7/2013

Brand Marketing – MAR2006-N-BJ1-2012

Tran Thi Thanh Truc – M2184031Erdem – Brand Development Proposal

ContentsI. Introduction......................................................................................................2

II. Erdem Brand Positioning................................................................................3

III. Erdem Brand Development Proposal..........................................................51. Erdem’s existing brand development......................................................62. New Brand Development Strategies.......................................................10

IV. Erdem Brand Communications Plan.........................................................12

1. Erdem Current Brand Promotion............................................................12

2. New Brand Development Strategies.......................................................14

Bibliography..........................................................................................................16

Appendix 1..............................................................................................................18

Appendix 2..............................................................................................................19

Brand Marketing 2012/2013 – Jill Rose Teesside University – Business School 1


I. Introduction

Erdem Moralioglu was born in Canada in 1976. His Father is Turkish and his

mother is English. After graduating from Ryerson University, he came to London in

2000 and studied Master degree in Royal College of Art (RCA). In 2003, he worked

in the US for Diane Von Furstenberg but I was coming back London in 2004 and

started his own business. This year, Erdem established the Erdem label in East

London. In 2006, Erdem made the collaboration with Mackintosh, the rainy-

weather-cost company. In 2007, Erdem received the Swarovski British Fashion

Council Enterprise Award. After that, the Fall 2009 and Spring 2010 outings were

funded by the British Council’s Fashion. Since 2010, Erdem has cooperated with

many different brands and magazines. He becomes one of the most innovative

designers in the world at moment. (Vogue, 2011)

In that report, I am going to analysis Erdem brand positioning which helps Erdem

strong in fashion industry. The next part is the brand development with the proposal

for a new brand release with timeline based.



II. Erdem Brand Positioning

Positioning definition

“Positioning is the act of designing the company’s offering and image so that they

can occupy a meaningful and distinct competitive position in the target customer’s

minds.” (Kotler, 1997)

In the brand positioning analysis, evaluating how brand is perceived in market as

well how successful the brand positions itself to defend other competitors.

Moreover, identifying the brand positioning is a good to know the unique

advantages of the brand that makes it becomes outstanding towards others. There

are two broad sources of value: cost-driven and value-added brand.

In fact, Erdem is positioning its brand as a value-added brand because of the

unique designs, limited collections and huge collaborations. For example, Erdem

contributed as a designer in Kate Middleton’s wedding gown or collaboration with

H&M in (Alexander E., 2011). In the value-added brand, the premium price is

charged. Erdem collection is usually worn by famous people and they have

performed on red carpets such as Kate Bosworth, Carey Mulligan, Ashley Olsen or

Jessica Biel. Launching in 2005, however, Erdem is a strong and acclaimed brand

in the world. It also catches high attentions from every fashion company and it

becomes one of London Fashion Week’s hottest show tickets ever. (London

Fashion Week, 2013)

Value-Added Brand

According to de Chernatony and McDonald (2003), understanding the cost-driven

or value-added components is crucial to evaluate the brand. Look the figure1.1 to

see the classifying brands on a strategic basis:



Benefits brand

ERDEM

Power brand

Commodity brand Productivity brand

Figure 1.1: Classifying brands on strategic basis

Based on offering limited and seasonal collections with the high prices, Erdem is a

benefits brand with a high related cost and high value-added advantages. On the

Erdem official webpage, the collections just can be only sold in stockist and a few

online shops, e.g. according to Ministry of Fashion page, Erdem’s skirt from £480

upon £1,440. The dresses are sold from £1,500 upon £4,400 and Erdem are one of

the coveted designers at moment (Ministry of Fashion, 2012)

One of the reasons which helps Erdem is well-being in the UK is the cleverness use

of bold colour, prink and a playful approach to embellishment. (See pictures 1.1)

Erdem is not just a name of the designer; it has become a confident brand with the

unique and young performances. Erdem’s designs are charming to every age of

women. Furthermore, Erdem has achieved the benefits of working with the highest

quality of materials, using some of the finest fabric mills in Europe. (Erdem

Biography - London Fashion Week, 2013)


High

Low

High Low

Relative cost

Val

ue-a

dded

adv

anta

ges


Picture 1.1: Erdem Women’s wear

Value-added brand, however, is more challenging for Erdem to compete with other

lower-cost competitors. The differential prices can limit the consumer’s purchasing

when they are not prepared to pay the extra cost. Other threat for Erdem can be the

competitive imitations. In the high street fashion, nowadays, many other brands

follow Erdem and they copy sometimes the designs. Therefore, Erdem needs to

focus on the higher technology supporting to add more values and more difficult for

competitors to duplicate. (de Chernatony & McDonald, 2003, pp. 326-332)

III. Erdem Brand Development Proposal

The Erdem brand development proposal is focused to increase the brand

awareness, develop the brand image and enter new markets. The proposal is

consisted of two parts, first is to analysis Erdem’s existing activities in the market,

which affect the consumer’s perceptions and buyer behaviours. The analysis is

based on Ansoff Matrix for a future decision making and new development plan.

The second part is Erdem new brand development plan for one year campaign.



1. Erdem’s existing brand development

Ansoff matrix is tool to examine the activities of a brand in the market at moment,

then developers can think of new ways to approach more customers or market

expansion. For Erdem, the Ansoff matrix will bring a clear picture of the brand, as

well as the designer. The evaluation from market and product analysis can lead the

decision making process. It is a well prepared step for the brand development

proposal. Ansoff matrix has four elements, such as Market penetration, Marketing

development, Product development and Diversification. See the figure 1.2 to view

the matrix fit with Erdem brand.

In fact, Erdem has been running well in his business. It means Market Penetration

is under controlled to satisfy the existing customers with the existing products. For

example, on Erdem main webpage, there are two main methods to buy Erdem’s

collections, first is customers can find the nearest stockists in many countries,

second is visiting online shops which offer Erdem’s clothing. (Erdem Web, 2013)

Those methods are supporting each other in interacting and communicating with

customers. Online shopping is popular way nowadays when it is more flexible and

saving cost. However, Erdem does not own an official online shops, customers will

buy from the third person so it may affect people’s awareness. The next point,

which makes Erdem become famous, is innovative seasonal collections. Erdem

offers frequently spring, summer, autumn and winter collections since 2009. The

way Erdem named the collections and determine the signatures helps customers

have built first path of thinking and expectation from Erdem. Jones (2011) used to

said that: “I see each collection as a new chapter in the same book of her life. It’s a

narrative, but she’s still the same core girl: colourful, sweet, elegant and hopefully

effortless.” The advantages of releasing seasonal collections are keeping and

serving existing customers better as well as building the premium and loyalty from

the customers. The collections express the stability of the brand and the designer.

Erdem has performed the best in his collections in order to contribute new article

painting designs for the high-class fashion. The more famous people wear his

designs, the more popular his brand is. On Erdem’s Facebook page, there are

several pictures taken celebrities wear Erdem’s dresses when coming to great



shows or even red carpets. Erdem does not need to say much about his products

but people believe in them and wear them. The final activity that build-up Erdem

brand in the fashion industry is articles, presses and new collections information

released frequently on famous magazines, e.g. Vogue, Elle or Stylist. Those

magazines catch a million readers a day and Erdem is known rapidly in that way.

However, it is argued that if the brand is not healthy, it cannot stand wealthy. Erdem

comes to magazines, as a push into the market and people will update the new

collections by trustful sources. Therefore, in general, Erdem has logically developed

in the UK fashion industry as well other market in Europe, Russia and North

America.

It has become more colourful for Erdem if it is said about Product Development.

Erdem has been collaborated with other famous brands and inspired the Erdem’s

flowing into different products. The significant collaborations are:

- In 2010, J Brand’s 5 x 5 London Collaborations: Erdem Mogalioglu had

worked with four other designers named Christopher Kane, Meadham

Kirchoff, Peter Pilotto and Richard Nicoll to create new jeans for J Brand.

(Fashion Review, 2011) See picture 1.2

Picture 1.2: Erdem with J Brand Collaboration 2010



- In 2010, Globe-Trotter Collaborations that had the first met Erdem in 2006.

Erdem has asked for the covetable luggage designs with Gary Bott.

(Alexander E., 2010) Look the picture 1.4 to view the collections.

- In 2011, Cutler and Gross Eyewear Collaborations, which had the first

collaboration in 2009. Erdem had worked to design the Spring/Summer

Sunglasses 2012. (Cutler and Gross Web, 2011) Look the picture 1.3

- In 2013, team working with Nicholas Kirkwood to design the 56 different

kinds of high heels. (Marinelli, 2013)

Picture 1.3: Erdem with Cutler and Gross Sunglasses Collaboration 2011

Those collaborations are extremely strong protection for Erdem brand and people

can see clearly his abilities on design and every woman become more magic,

beautiful than ever. Besides that, Erdem also focus on different materials to develop

products. The quality of products is defined by good materials. For example, in the

Autumn/Winter 2011 collection, Erdem used printed stretch cotton for skirts and silk

for blouse or dress. They were slim and cut close into the body. (Erdem Press 1 -

London Fashion Week, 2013) Then in Resort 2012 collection, cotton was reused

again, however, the combinations of colours and fabrics were changed the whole

picture. The designs were about knee-length dresses, which effortlessly focused on

full slips or belted nipped in waists. (Erdem Press 2 – London Fashion Week, 2013)

However, in the latest collection, Erdem will choose totally different materials for his

designs. He is going to use plastic and leather for the Pre-fall 2013. PVC and

organic materials are also used in that latest collection. Erdem is intelligent to make



that decision while the ethical issues are hotter in fashion industry. It seems a bold

collection but Erdem believe women will love it. (Blanks, 2012)

In final elements, Market Development and Diversification, Erdem seems quiet. It is

said obviously that Erdem opens almost stores in countries from the US, Europe to

Central Asia and Eastern Asia. Expansion new market is not urgent requirements at

moment because Erdem is covered the world already. However, the point here can

find is activities for other smaller markets are seldom. Asian or Middle Eastern

markets do not receive much show or up-to-date press as Europe and North

America. This limitation can be a huge barrier for Erdem in the future if the brand

wants to anticipate the Asian markets. It happens the same in Diversification when

Erdem has not decided to coming into other countries, for example Thailand,

Vietnam or South Africa.

Market Penetration-Online Selling

-Stockists

-Seasonal collections

Product Development-New materials

-Collaborations

Market Development-Maintain more Asian

markets

DiversificationStill considering

Figure 1.2: Ansoff Product/Market Matrix


Existing

New

Existing New

Product

Market


Picture 1.4: Erdem with Globe-Trotter Collaboration 2010

2. New Brand Development Strategies

There are two popular methods to develop a brand, namely:

- Line extension/brand extension

- Brand stretching

For Erdem, using Line extension/Brand extension is a consideration. According to

Riezebos (2003) “If the new product belongs to the same product class as the

existing product, we speak of a line extension… We speak of an brand extension

when the name of an extension brand is used for a product in a different product

class.” Therefore, using Line extension looks suitable for Erdem to develop his

“new” brand. There are many advantages such as reducing perceived risks,

increasing efficiency of promotion expenditure, embracing variety – seeking

behaviour by “repertoire” of brand as well as reducing marketing costs. Basing on



the value-added brand positioning and huge benefits hat Erdem brings into

customers, the new line extension can add more opportunities for customers to buy

Erdem’s clothing and the potentials customers will increase, especially younger

women. The new brand development will focus on Flower trends designs with main

colours are red and white. The shapes of dress or shirts are inspired by long dress

from Asian (e.g. China and Korea) in order to communicate with Asian markets and

transform the collections into Western-Eastern cultural combinations.

Moreover, the line extension will continue the purpose of build-up the brand

awareness, stronger interactions with outside and worthy experiences for future

collections. The targeted groups are for all kinds and age of women. The new line

extension brand is a collection of young thinking, innovative, proactive and feminine

in both business environment and family atmosphere. More and more Asian women

are looking for famous brands and try to buy online. For example, in Japan, around

10% annual income of women is used on fashion and wealthy women tend to buy

luxury brands every year. (Japan Market Resource Network, 2007) It happens the

same in China and Korea. Therefore, if Erdem is thinking more about approaching

emerge markets, Erdem can make more profits.

Look for the figure 1.3 to view brief of new line extension brand:

Name of collections Sakura 2014 (Sakura – Japanese, means Cherry)

Released time Spring/Summer 2014

Main materials Silk, fabric, cotton

Trends Flower, shaped, long length

Choice of colours Red, white, green, navy

Consist of collections Long dresses, shirts, skirts, blouse

Ideas of collections Modern Asian in Western styles

Main markets approaching Europe, US, Japan, China and Korea

Signature Aristocratic, Attractiveness, Vitality

Number of designs 45 – 55

Figure 1.3: Sakura 2014 collection brief



IV. Erdem Brand Communications Plan

Before purchasing any products, customers need to know about the products. To

succeed the brand development brand strategies, Erdem has to choose suitable

promotions to communicate with the customers. The marketing communications are

important because they are “the voice” of branding. There are many promotional

methods such as media bases, sales bases or products bases. There is also an

alternative brand promotion strategy, which is based on HEART or HEAD

conceptions. It has two dimensions, namely rational dimension and

representationality dimension. (de Chernatony and McDonald, 2003)

In the part, the analysis of Erdem current brand promotion is firstly performed with

the supporting of de Chernatony and McDonald matrix. Secondly the new brand

development strategies will be mentioned and included of Marketing communication

objectives and timeline based plan.

1. Erdem Current Brand Promotion

Erdem is young and open-minded; therefore, his collections are innovative and

impressing. He satisfies most of the women from young to the middle ages. A

significant number of celebrities wear his designs and they are happy about this. It

means his brand meets the utilitarian needs. At the British Fashion Council’s

London Show Rooms in Los Angeles in 2011, Erdem said that: “I’ve had the

privilege of dressing a diverse groups of women who are all amazing. It’s such a

huge compliment. I love the idea of providing women with something that they feel

really comfortable in and that makes them feel like a beautiful version of

themselves.” Erdem uses colours to bold most of the collections. He has

encouraged women of all ages and they feel more beautiful when wearing his

dresses. (Scharf, 2011) In that way, the functional needs of Erdem brand is high.

Erdem speaks closely to customers by small talks or in persons, which makes

Erdem understands and serves better for each individual customer. However, when

looking at the representationality of Erdem brand, it is focused more about the

emotion of brand’s abilities to help customers express about themselves. (de

Chernatony and McDonald, 2003, pp. 409-411) In recent event, Kate Middleton had



worn Erdem’s dress when coming visit The Willows Primary School in Manchester.

It marks a strong positive point for Erdem when he can design for pregnant women.

Kate looked slim and active in that dress. (Overland, 2013) Meanwhile, there are

also other famous actresses wearing Erdem dresses and performing in red carpets.

(See the picture 1.5) Combining that information, Erdem is categorised in the matrix

with high functionality and rather high representationlity. Look the figure 1.4 to view

de Chernatony and Mcdonald matrix.

Dell Computers Rolls Royce

ERDEM

Saxa Salt Oxo

Figure 1.4: de Chernatony and McDonald matrix


High

Low

Low High

Representationality

Func

tiona

lity


Picture 1.5: Celebrities wearing Erdem dress in red carpets (Telegraph, 2013)

2. New Brand Development Strategies

In the new line extension plan, the collection “Sakura 2014” is a push for Erdem to

be known by more people, not only celebrities. The main targeted markets are

Asian, e.g. Japna, Korea and China. Look the

Marketing Communication Objectives

Brand Communication Tools

Increase the popularity to 20% in one

year

New “Sakura 2014” Collection Information

Increase the brand awareness to 15%

within one year

Erdem Events and Media Advertising on

YouTube about

“Guess What Next” Campaign



Interact more with customers outside Customer services -> Newsletter

Improve brand image Celebrities adornment -> Posters, Event

Speech

Increase number of involving people Win tickets event shows

Win ticket collection released shows

By: guess “the next colours”

Increase sales 15% Offline and Online sales – Promotions for

Asian markets

Figure 1.5: Marketing communication objectives and tools approaching

The campaign “Guess What Next” is the core activities to play around the market

before launching the collection. Using Social Media, especially YouTube is to get

more pictures, active and colours of Erdem to younger people and potentials. Find

the Appendix 1 to see the poster. When people see the posters, they can compete

to win tickets to Erdem events show or Erdem New collection releases by register

the emails by main webpage and guess the main next colours are going to use.

When Erdem get the email addresses, it becomes the customer’s database and

customer service centre can use to send newsletter in future. Find the Appendix 2

to view the Timeline based for the proposal.

Using Media is, nowadays, popular and rapid to reach the customers. Erdem is not

going to lose its unique but Erdem will find out more potentials. The threats of copy-

cat can be affect but Erdem probably uses the finest fabric and his talents to make

the perfect products, which are hard to be followed by competitors.

In conclusion, with a strong personalities and brand positioning, Erdem label is

outstanding in the world. The “Sakura 2014” collection is a friendly hello from

Erdem to Asian market as well as others potentials. The line extension at the

moment is suitability for Erdem’s budget. The collection helps Erdem to build-up the

brand awareness and image; meanwhile, it can make provide more services and

interactions to the customers.



Bibliography

Alexander, E., 2010. The Erdem Effect. Vogue. August 25. [Online] Available at:

<http://www.vogue.co.uk/news/2010/08/25/globe-trotter-erdem-collaboration>

[Accessed 28 April 2013]

Blanks, T., 2012. Erdem Pre-fall 2013. Style. December 18. [Online] Available at:

<http://www.style.com/fashionshows/review/2013PF-ERDEM> [Accessed 28 April

2013]

Cutler and Gross, 2011. Erdem Launches Second Collaboration With Cutler and

Gross. [Online] Available at: <http://www.cutlerandgross.com/blog/erdem-launches-

second-collaboration-with-cutler-and-gross/> [Accessed 1 May 2013]

de Chernatony, L. & McDonald, M., 2003. Creating Powerful Brands. 3rd ed.

Oxford: Elsevier Butterworth-Heinemann

Erdem Web, 2013. Stockists. [Online] Available at:

<http://www.erdem.com/stockists.php> [Accessed 3 May 2015]

Fashion Review, 2011. Erdem Fashion. [Online] Available at:

<http://www.fashionreview.co.uk/erdem-fashion/> [Accessed 2 May 2013]

Japan Market Resource Network, 2007. Japan’s Changing Of Consumber: Drivers

Of Change For Luxury Brands. [Online] Available at:

<http://www.jmrn.com/UserFiles/File/DCLB_JMRN.pdf> [Accessed 3 May 2013]

London Fashion Week, 2013. Erdem Biography. [Online] Available at:

<http://www.londonfashionweek.co.uk/uploads/documents/doc_2993.pdf>

[Accessed 1 May 2013]

London Fashion Week, 2013. Erdem Press 1. [Online] Available at:



London Fashion Week, 2013. Erdem Press 2. [Online] Available at:





Ministry of Fashion, 2012. Erdem Fashion. [Online] Available at:

<http://www.ministryoffashion.co.uk/erdem/b14542/> [Accessed 1 May 2013]

Marinelli G., 2013. Nicholas Kirkwood Takes A Drive Into Pre-fall, Platform Heel

First. Refinery29. January 28. [Online] Available at:

<http://www.refinery29.com/42359?page=3> [Accessed 4 May 2013]

Overland, H., 2013. Kate Middleton: Pretty In Floral Erdem Dress. Today’s Parent.

April 23. [Online] Available at: <http://www.todaysparent.com/blogs/celebrity-

candy/kate-middleton-dress> [Accessed 3 May 2013]

Scharf, L., 2011. Celebrities love Erdem. Instyle. November 22. [Online] Available

at: <http://news.instyle.com/2011/11/22/erdem-celebrity-photos/> [Accessed 3 May

2013]



Appendix 1Poster for Campaign “Guess What Next”





Appendix 2 Timeline based plan


Activities Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14"Guess What Next"

CampaignNew Collection First Press -

Vogue

Erdem Speech about "Sakura 2014"

Campaign Results - Tickets Give away

"Sakura 2014" Release

Celebrities Performs and Speaks

Newsletter sending

Sales Promotions in Asian Markets

Documents

Erdem-TranThiThanhTruc