Product & Brand Management. Development of a new product for Manolo Blahnik

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Product & Brand Management
Assignment
Development of a new product idea
Submitted By:
Sofya Fominova W1621766
Luisa Krain W1613752
Xuanyi Liu W1613898
Supervised by Dr. Clive Helm
Submitted date: November 21, 2016
Submitted to: Dr. Clive Helm via Blackboard
Word Count (incl. references): 4994

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Table of Contents
LIST OF FIGURES 3
EXECUTIVE SUMMARY 4
1. INTRODUCTION 5
2. MARKET OPPORTUNITY ANALYSIS 5
2.1 MARKET SIZE 5
2.1.1 FOOTWEAR AND SPORTSWEAR MARKET 5
2.1.2 LUXURY TRAINERS MARKET 6
2.2 PEST-ANALYSIS 8
2.2.1 POLITICAL FACTORS AND LEGAL FACTORS 8
2.2.2 ECONOMIC FACTORS 9
2.2.3 SOCIAL FACTORS 10
2.2.4 TECHNOLOGICAL FACTORS 10
2.3 COMPETITORS 11
2.3.1 COMPETITIVE LANDSCAPE 11
2.3.2 LUXURY FOOTWEAR BRANDS [SPORTS AND NON-SPORT USAGE] 12
2.3.3 EMERGING COMPETITORS: SPORTS FOOTWEAR BRANDS & CO-BRANDED PRODUCTS 13
2.4 SWOT ANALYSIS 13
2.4.1 STRENGTHS AND OPPORTUNITIES 13
2.4.2 WEAKNESSES AND THREATS 15
3. MARKETING PLAN FOR MANOLO BLAHNIK 15
3.1 PRODUCT AND BRAND STRATEGY 16
3.1.1 PRODUCT ATTRIBUTES 16
3.1.2 SEGMENTATION AND TARGET MARKET 16
3.1.3 POSITIONING 17
3.1.4 COMPETITIVE ADVANTAGE 17
3.2 DISTRIBUTION 18
3.3 PRICE 19
3.3.1 COMPETITIVE PRICING 19
3.3.2 COST STRUCTURE 19
3.3.3 PRICING RECOMMENDATION 20
3.4 PROMOTION 20
3.5 PEOPLE 21
4. CONCLUSION 21
5. REFERENCES 23

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List of figures
Figure 1: UK footwear sales, best- and worst-case forecast, 2011-2021
Figure 2: Number of sneakers selling out online in the UK at full price
Figure 3: Market segmentation of footwear in context of overall apparel spend, based on
research from Euromonitor, 2016; Mintel, 2016 and Goodman, 2013. Produced by
authors.
Figure 4: Forecast Sales of Luxury Goods by Category: Value 2015-2020; Euromonitor
2016.
Figure 5: Annual expenditure of footwear in the UK from 2005 to 2015, based on volume
(in million GBP)
Figure 6: Competitors of Manolo Blahnik. Produced by authors, based on information
taken from official websites of each of the brands.
Figure 7: Consumer Classification, Caci (2013)
Figure 8: Price range for luxury trainers, Produced by authors, using pricing information
from farfetch.com

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Executive summary
The recently established market for the luxury sneakers has been rapidly growing since
2014. Many fashion designers brands have already benefited from the market and
established their presence in this segment. This trend development offers a substantial
opportunity for Manolo Blahnik to expand their existing product line and introduce luxury
non-sports sneakers.
To illuminate the major factors influencing the product launch, secondary research was
assessed. Key findings include a general trend of especially more mature women with a
higher income level to purchase luxury non-sports sneakers. Furthermore, mass
customisation opens up the possibility for companies to offer alternative, individualised
products to customers. The competitive analysis showed that Manolo Blahnik’s competitors
have not adapted this trend yet. Thus, introducing the possibility of mass customised trainers
for Manolo Blahnik’s target segment offers a great advantage.
In the second part of the report the development of luxury non-sports sneakers is
addressed. Offering comfort without compromising style, Manolo Blahnik takes on a unique
position within this attractive market. Through balanced multi-channel distribution and well-
designed promotional activities, the establishment of a strong market position will be
ensured.

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1.Introduction
Ever since the iconic appearance in the “Sex and the City” series, Manolo Blahnik is one
of the most anticipated shoe designers in the world (Design Museum, 2016). Since 1971,
Blahnik designs individual shoes, where each design has its own story (Blahnik, 2016). He is
known as a very independent designer, not picking up every trend (Nelson, 2016). However,
in order to be able to stay fashionable in a fast moving market like the shoe market, Manolo
Blahnik should consider introducing a shoe collection of trainers. To assess this opportunity,
the current market situation will be analysed, and a SWOT analysis will be conducted.
Furthermore, a marketing plan for introducing this new line will be discussed, acknowledging
product attributes, price, distribution and promotion, as well as people.
2. Market Opportunity Analysis
2.1 Market Size
2.1.1 Footwear and Sportswear Market
Britain’s footwear market has been steadily growing over the past five years, as shown
in Figure 1. In July 2016 the industry was estimated to grow by 5.4% to reach £10.5 billion
by the end of the year, by 2021 the market is expected to increase by further 25% (Sender,
2016b).
Figure 1: UK footwear sales, best- and worst-case forecast, 2011-21.

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Sportswear, a major subsegment of the footwear market, has also been growing
continuously (Sender, 2016c). Reports are showing a significant shift in customer’s
preferences, as now consumers choose to wear sports clothing on the daily basis (ibid.).
According to the Sports Fashion - UK report, sneakers are now also likely to be worn for
everyday activities, overtaking shoes with heels and “becoming the second favourite item of
footwear after flat shoes” (ibid.). Kurt Geiger’s creative director confirms: 'There's definitely a
radical shift towards lower heels. Sneakers are really on trend’. (London, 2014)
With the increasing number of sales for trainers, both online (Sedghi, 2015) and offline
(London, 2014), many fashion designers, including Valentino, Tom Ford and Lanvin, have
entered the market, contributing to the trend for luxury sneakers (Sender, 2015c). That also
helped to change the perception of sportswear, and embraced it as a fashion statement
(ibid.).
Figure 2: Number of sneakers selling out online in the UK at full price. Sedghi, 2015.
2.1.2 Luxury Trainers Market
Manolo Blahnik is operating within the luxury segment, thus the market size for the
proposed product line of trainers should be narrowed further.
Although no data is available confirming the size of the luxury trainers market, the
projection of customer expenditure distribution across the apparel industry will be used to
scope the market.
According to Euromonitor (2016) footwear expenditure contributes to 18.5% of total the
“Footwear and Clothing” category spend. Within footwear, the sports category accounts for
23% of the spend (Goodman, 2013b). However, according to Mintel, only 51% of customers
are buying sport footwear for non-sports use (Sender, 2016b). Based on the statics above,

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the market size for sports footwear that is purchased for non-sports use is estimated as
follows:
Footwear Spend × Sports Footwear × Non-sports use sports footwear;
which equals:
100% × 23% × 51%
For the overall footwear market, the non-sports use sports footwear accounts for:
£10,540m x 23% x 51% = ~£1.23 billion
For the luxury footwear market, the non-sports use sports footwear accounts for:
£1,022.1m1
x 23% x 51% = ~£119.89 million
(UK luxury footwear market x Sports footwear x Non-sports use sports footwear)
Figure 3: Market segmentation of footwear in context of overall apparel spend, based on
research from Euromonitor, 2016; Mintel, 2016 and Goodman, 2013. Produced by authors.
According to a Euromonitor (2016) estimate, the luxury footwear market in 2016 is
valued at ~£1,022.1m, resulting in the approximate market size of the luxury trainers
segment to be £119.89 million (as per calculations above). Based on that, by 2020, this
market is predicted to grow to over £143 million.
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The number is derived by multiplying current luxury apparel and footwear market size from Figure 4
(£5,524.9 in 2016) by 18.5% (spend on luxury footwear of overall market), as per Euromonitor (2016).

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Figure 4: Forecast Sales of Luxury Goods by Category: Value 2015-2020; Euromonitor
2016.
2.2 PEST-Analysis
In order to evaluate Manolo Blahnik’s market position, a PEST analysis is conducted.
Political, economic, social and technological factors will be considered in order to assess the
current market situation, with respect to the brand.
2.2.1 Political factors and legal factors
As for political factors, the BREXIT-decision is a very present issue to consider for
companies based in Britain. For the United Kingdom to leave the European Union will have
noticeable consequences. However, at the moment these consequences cannot be
foreseen. Despite the unknown future, the drop of sterling, due to the BREXIT, has
increased sales at this current state (Lewin, Megaw and Noble, 2016). This is due to
increased currency-related spending power of foreigners (Allen, 2016). Therefore, currency
exchange rates and political stability have to be considered.
In addition, tax rates have to be examined. Income tax rates and corporation tax may
influence purchase decisions of customers and revenues for companies, accordingly
(Harper, Ravenscroft and Service, 2016), as well as foreign investments. Especially with the
realisation of BREXIT, corporation taxes might drop to keep international investors attracted
to the British marketplace (Monaghan, 2016). However, tax regulations have to be
renegotiated, which might result in higher import prices (Foster, 2016).
Furthermore, due to offline as well as online sales, customer privacy policies have to be
followed. In order to purchase online, customers have to register. Therefore standard terms
and conditions are applied and have to be accepted in order to purchase.

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2.2.2 Economic factors
During the last 11 years, the UK footwear market has constantly been increasing (Office
for National Statistics UK, 2016) and is still estimated to grow (Sender, 2016a).
Figure 5: Annual expenditure of footwear in the UK from 2005 to 2015, based on volume
(in million GBP), (Office for National Statistics, UK)
Since “very few women consider shoes simply protection from the elements” (Goffe,
2012), the shoe market is very unlikely to decline or be substituted by something else. The
footwear market in the UK continues to exceed the clothing market (Sender, 2016a). Within
this market women’s shoes still build the majority (ibid.).
Generally, flats have become increasingly more favourable by consumers, especially
women (Goffe, 2012). This may be due to current developments towards a more comfortable
style and a general increase in sportswear being suitable for everyday life (ibid.). Also, the
image of trainers has drastically improved, due to high-end designers creating trainers for
their collections (Sender, 2015a). Therefore, shoes being the most likely purchased designer
item (Sender, 2015a) and generally accepting trainers as “fashionable”, pushes trainers
sales to a high (Sender, 2016a).

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2.2.3 Social factors
The influence of social factors, such as the rise of athlete endorsers (Weinswig, 2016) or
fashion trends communicated through social media (Hope, 2016), have led to sneakers’
increasing popularity and acceptance in street-style fashion (Sender, 2016a). Adapting
current trends, designers also started designing high-end trainers, again making these more
acceptable in high fashion, rather than limiting them to sportswear (Sender, 2015a).
A further influential factor may be recognised in the prestige gained by wearing designer
clothes (Wiedmann, Hennigs and Siebels, 2009). Trendiness is considered by high
investments in clothes as well as shoes (Maltz Bovy, 2015). Especially people with low self-
esteem tend to gain higher values out of purchasing luxury fashion, even though they might
not be able to afford it (Page, 2015). Especially young people, who feel higher pressure to
constantly be dressed in a fashionable way and purchase recent fashion through social
media trends (Meikle, 2013), might regularly buy high-end products in order to maintain self-
esteem, trendiness and their image towards society as high as possible (Wiedmann,
Hennigs and Siebels, 2009).
Furthermore, sustainability and corporate social responsibility play an increasing role
in the market (Barberi Ettaro, 2016). Consumers deliberately care more about ecologically-
friendly materials, transportation, and more transparent manufacturing practices (Velasquez,
2015). Therefore, in order to keep a positive brand image, companies will have to take
initiative and implement transparent, eco-friendly manufacturing processes (ibid.).
2.2.4 Technological factors
Mass customisation is one of the main trends concerning the shoe retail market,
especially trainers (Sender, 2016a). Research has shown, that customers are willing to pay
a higher price for customised products (Boër and Dulio, 2007). Therefore, production
processes are designed in a reasonably flexible way at moderate costs (Borenstein, Da
Silveira and Fogliatto, 2001). In order to implement mass customisation, certain factors have
to be considered. This includes shared knowledge between supply chain members, the
ability of the product to be customised, available technology, and demand, among others
(ibid.).
Likewise, technology included in trainers offers lucrative market opportunities (Goodman
associates, 2013). To boost the importance for the sportive use, companies develop and
introduce new technologies to support athletes’ success (Petro, 2015). Smart technologies,

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distances travelled, and burned calories are some of the most popular innovations
concerning modern footwear (ibid.).
Besides new technologies for footwear, the use of technology in form of social media to
communicate with consumers, may lead companies to reach an even broader and younger
audience (Costa, 2013). This development is important to consider, since it has been shown,
that 16-35 year olds are the main buyers of designer fashion (Sender, 2015b), however they
are less likely to purchase designer trainers (Sender, 2015c).
2.3 Competitors
Manolo Blahnik is entering the rapidly growing market of luxury trainers (Euromonitor,
2016). A number of competitors have already established their presence in the market,
including a number of high-end apparel and footwear brands.
2.3.1 Competitive Landscape
Specialised trainers manufacturers, such as Nike (sport) and Vans (casual) have
secured their market share in the more affordable segment over the last five decades
(Telegraph, 2011). Most companies in the luxurious and expensive segment, however,
entered the market recently, and are only starting to build up market share and competitive
differentiation.
The differentiation is mainly driven by two key product characteristics: price and sport
usage.
The graph below lays out key market players in four distinct categories: luxury sports
trainers (higher price), luxury non-sports sneakers (higher price), high street (lower price)
sports trainers and non-sports sneakers (lower price).

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Figure 6: Competitors of Manolo Blahnik. Produced by authors, based on information
taken from official websites of each of the brands.
2.3.2 Luxury Footwear Brands [Sports and Non-sport Usage]
The segment has emerged recently, gaining major traction after Chanel’s initiative to
showcase sportswear in a fashion show in 2014 (Cartney-Morley, 2016).
Although the market is fragmented, the following major brands possess the most
significant share:
● Chanel, as a trendsetter in the industry, is focusing on handmade haute couture
trainers, which typically cost above £2,500 and take up to 30 hours to make by hand
(Nguyen, 2014). This is aligned with Chanel’s brand and value proposition across their
offerings in clothing and accessories categories.
● Dior also launched sneakers in 2014. Its Fusion-labelled trainers start from £700, and
mimic Dior’s signature design lines and themes (Eggenberger, 2014).

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● Jimmy Choo, another footwear brand, introduced trainers ahead of the trend; with
north of £1 million in pre-orders before their launch in 2010 (English, 2010). The brand offers
a wider variety of designs and styles, starting at £350, – more affordable than its couture
competitors.
● Unlike its other luxury counterparts, Lanvin entered the market with more sports-
oriented sneakers (Marshall, 2013).
● Other luxury brands who entered the market with a sports footwear proposition in the
past years include Christian Louboutin, Gucci, Prada, Dolce&Gabbana, Roger Vivier and
others. All of those brands reflect their signature style and maintain price range within their
footwear offerings.
2.3.3 Emerging Competitors: Sports Footwear Brands & Co-Branded Products
In addition to the luxury apparel brands who are expanding their product lines by adding
sneakers, traditional sportswear manufacturers are also rushing to meet the demand in
luxury markets, mainly through partnerships with renowned designers.
● Nike is partnering with fashion designers like Givenchy (Eytan, 2016), featuring both
brands in advertising campaigns and other promotional activities. This affiliation attracts the
target audience of the luxury brand Givenchy to Nike (ibid.).
● Adidas is partnering with Stella McCartney (Bilemjian, 2015), co-branding the
products to create a premium image for Adidas.
Both brands indicated their desire to expand into the luxury segment, however they are
still more affordable than luxury brands.
2.4 SWOT Analysis
2.4.1 Strengths and Opportunities
Having had four decades of brand history, Manolo Blahnik is much older than many of
its other luxury shoemaker brand competitors, such as Christian Louboutin, Jimmy Choo and
Nicholas Kirkwood (Treybay, 2011). The brand has always been known for being able to
offer elegant and timeless styles without compromising comfort (ibid), especially after being

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featured in the “Sex and the City” TV show, Manolo Blahnik has become highly well known
and desirable (Craik, 2016). Such qualities of the brand can be a joint strength to potentially
draw a lot of attention.
Manolo Blahnik is a privately held company (Bloomberg, 2016), the designer and
founder himself has always insisted to remain independent and avoided expansion (Pithers,
2015). In contrast, many of its competitors, such as Jimmy Choo have either gone public
(Choo, 2016), or Nicholas Kirkwood had been acquired by a bigger parent company LVMH
(Goody, 2016). This unique identity of Manolo Blahnik can be considered as a strength when
it comes to major political and economical changes, particularly with potential influences of
uncertain corporation tax regulations from BREXIT as previously mentioned (Monaghan,
2016). Manolo Blahnik would not be heavily affected by factors, such as external investors
and shareholders within an unstable macro environment. This is also confirmed by the
founder of another independent brand - Paul Smith, “Being an independent company we’re
flexible enough to weather the storm” (Porter, 2016).
Additionally, since the BREXIT, the UK has become the cheapest luxury market in the
world now due to the weak pound sterling. Such lower prices have attracted increasing
tourist spending power, and would boost luxury brands sales in the UK (Hoang, 2016). As
one of the brands within this luxury market, Manolo Blahnik would gain more sales through
this opportunity.
As mentioned above, there is a rising popularity of trainers (37%) which have taken over
heels to become the second favourable footwear (Sender, 2016c). This is related to a
general increasing trend in casual lifestyle in the UK, and a more relaxing atmosphere in the
workplace, as well as an increasing number of people working from home (Dover, 2016b).
As a result, casual dressing has become more acceptable than in the past (ibid). As a result
there is a high demand and desire to incorporate more comfort into daily wardrobes (Sender,
2016c). Hence, for Manolo Blahnik, which has been renowned in designing heels, there is a
huge opportunity introducing sneakers to adapt to this general growing social trend.
While the younger consumers remain the leading purchasers of sports footwear and
changing trends, there is a gap for having more style integrating into sportswear, particularly
to meet the needs of older consumers (Dover, 2016a). For those older generations, fashion
and attractiveness were far more important than comfort (Jacobs, 2012). This is another big
opportunity for Manolo Blahnik, as the brand has always had long established reputation in
designing stylish heels (Treybay, 2011). Therefore, it is capable to integrate more elegant
elements in sneaker designs, in order to offer a seamless combination of comfort and style
catering the more mature consumers.
According to Mintel, human touch is the future trend (Neil, 2013). Handmade products
are being uplifted as they offer a personal touch, expertise and uniqueness (ibid.). There is

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an opportunity for Manolo Blahnik, as all shoes are handmade in Italy to ensure quality and
comfort, because “the best shoes in the world are made there” (Specter, 2000). However,
68% of shoppers in the UK do not believe that luxury items necessarily offer superior quality
(Goody 2016c). Therefore, emphasizing the strength of craftsmanship and handmade touch
could differentiate Manolo Blahnik and strengthen its position in the market.
2.4.2 Weaknesses and Threats
In general, designer footwear is mostly purchased by people aged 25-44 (Sender,
2015c). As previously mentioned, there is a gap in offering stylish sportswear for mature
consumers (Senter, 2015d), which provides an opportunity for Manolo Blahnik. However,
there is a threat, due to a relatively competitive environment of designer sneakers created
already, from the market entry of various luxury labels such as Valentino, Lanvin and Chanel
(Sender, 2015c).
As previously discussed in the strength analysis on BREXIT, the unstable
relationship between the EU and the UK could also affect the import and production cost of
companies (Freeman, 2016). Since Manolo Blahnik’s products are all handmade in Italy
(Specter, 2000), there is a potential threat in the increase of the production and import costs,
resulting in the brand’s overall pricing going up. Depending on the degree of retail pricing
increase, there is a potential threat of losing customers if the increase is too high (Kapner,
2014).
Manolo Blahnik founded his brand four decades ago (Craik, 2016). The designer himself
has never been willing to follow trends and stays true to his self-belief (ibid.). Holding such
strong personal rejection to adapting to the change of modern casual lifestyle, can be a
weakness that slows down the market growth rate of the brand. Comparing to its
competitors, such as Dior launching handmade sneakers in 2014, which have sold out in
many locations (Monk, 2015), Manolo Blahnik missed out on the opportunity.
3. Marketing Plan for Manolo Blahnik
In order to maintain the current market position and open up possibilities to enter a new
market segment, as well as target an additional customer audience, Manolo Blahnik should
introduce a collection of high-end designer sneakers. By offering this collection, the brand
would adapt to a profitable and growing market (Sender, 2015c). The product proposal
assesses the opportunities and the benefits of Manolo Blahnik introducing sneakers. Based
on evaluations concerning product attributes, price, distribution, promotion and people, the
brand’s positioning and target market will be evaluated.

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3.1 Product and Brand Strategy
3.1.1 Product attributes
The sneakers introduced by Manolo Blahnik will not compromise in style. Comfortable
sneakers, aligned with the existing signature elegance, will fit the busy lifestyle of modern
strong women (Milligan, 2016). The trainers will be designed for non-sportive use. Rather,
they are intended to be worn by style-conscious women on a day-to-day basis. Additionally,
high-end materials will be used. This includes soft leather, satin, suede, fur, jewels and silk,
among others. In order to create a unique collection, these materials will be partly combined
and displayed in a range of different colours. Due to Manolo Blahnik’s rich heritage, the
design of the shoes will be rather timeless as well as colourful. Furthermore, all shoes will be
handmade and produced in Italy. However, the company will process the materials within a
sustainable production process where applicable, in order to attain an environmentally
friendly production. With this, Manolo Blahnik will respond to current consumer trends of
higher desire for eco-friendly products (Euromonitor, 2016).
The shoes included in the collection will be designed seasonally. This indicates a new
collection twice a year, however, due to the creative independence of the designer, these
collections do not necessarily have to comply with most recent developments and runway
trends.
Furthermore, the sneaker collection includes a selected range of designs, which
customers can personalise when ordering online. Through mass customisation (of a number
of basic models), consumers can choose to personalise their own shoes, deciding what
materials and which colours they would like to have. Therefore, a range of different material
options as well as colours will be given to the consumers. This would differentiate the
company, compared to direct competitors on the sneaker market. Even though indirect
competitors in the less expensive field of sneakers such as Nike make high use of mass
customisation, it is not yet common with exclusive and high-end companies.
The trainer collection will be launched during London Fashion Week in February 2017.
3.1.2 Segmentation and target market
In order to better satisfy customer needs, the market has to be efficiently segmented,
and the target audience identified. Based on this analysis, Manolo Blahnik has to position
itself in this market accordingly. The sneakers will still match the current general style of the
company, being designed as luxurious, colourful and partly playful, and each design with its
own story.

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Additionally, it is important to note, that the brand was founded in the UK and since then
was heavily influenced by the local culture (Morton, 2014). Accordingly, the sneaker
collection will be launched across its existing distribution channels in the UK first. Even
though, they will be available for a broader market through international distributors, the
main target market will be British women, aged 25 and above who wear comfortable but
stylish sneakers. Women buying Manolo Blahnik shoes are considered to have a relatively
high income level, in order to afford the shoes. They are modern and self-confident, and
have a timeless and elegant style.
Further, the ACORN User Guide (Caci, 2013) gives more information on how to
segment the UK market on a geodemographic basis. It divides the consumer market, based
on 6 categories, 18 groups and 62 types (ibid.). Consumers targeted by Manolo Blahnik will
be part of Affluent Achievers (ibid.), more specifically A2 and B7 as can be seen in figure 7
below. They earn above average incomes and are considered quite active (ibid.). These
groups include wealthy families with children as well as empty nesters (ibid.).
Figure 7: Consumer Classification, Caci (2013)
3.1.3 Positioning
Based on this analysis, Manolo Blahnik’s positioning remains the same. As can be seen
in the conceptual map (see figure 6 above), the brand locates itself in the high priced, non-
sportive segment of the market.
3.1.4 Competitive Advantage
As mentioned in 3.1.1, a mass customisation service will be offered within the sneaker
launch. Based on our research and findings, currently there are no other luxury brands
offering this service in the luxury sneaker market. Therefore, this unique feature provided by
the Manolo Blahnik sneaker range would be its competitive advantage amongst its
competitors, since customisation is driving the luxury industry and there is a demand for an
individual item (Goody, 2016b).

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Manolo Blahnik, the designer, has always stayed away from seasonal footwear trends in
the past (Bateman, 2015), and insisted on creating original and timeless designs. This
means, offering alternative sneaker styles would differentiate the brand in the market, which
enables the brand to cater those consumers that seek for distinctive styles.
3.2 Distribution
To ensure exposure to the widest possible target audience, implementation of an omni-
channel distribution strategy is essential for the largest market penetration. This means that
products will be distributed across multiple channels, including the following:
● Manolo Blahnik retail boutiques
In the United Kingdom, Manolo Blahnik operates two retail stores. Distribution through
its own boutiques is essential to generate awareness and establish market presence,
however this channel is unlikely to contribute significant revenues due to limited footfall.
● Department stores
The primary distribution channel for Manolo Blahnik in the UK are department stores,
due to its prime placement at five major department stores, such as Harrods and Selfridges
(Blahnik, 2016). Besides the extensive footfall, it attracts international shoppers with
awareness of Manolo Blahnik’s brand but limited presence in their home countries
(Smithers, 2016).
Furthermore, for example Selfridges recently introduced a dedicated department for
luxury sneakers (London, 2014), making it an ideal place to generate awareness and
establish the brand in a luxury sneakers market.
● E-commerce & M-commerce
With the rise of online and mobile shoppers (see Figure 2), it’s important to make
products available across Manolo Blahnik’s own website and a mobile application.
● Third-party E-commerce
Third-party fashion distributors are growing rapidly in the UK, with companies like Net-a-
porter and Farfetch skyrocketing to multi-billion valuations and growing revenues across
different digital channels (Ahmed, 2015). Therefore it is crucial for Manolo Blahnik to sell
sneakers on these websites.

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3.3 Price
3.3.1 Competitive Pricing
The table below showcases the current pricing range for luxury trainers produced by key
competitors:
Brand Minimum Price Maximum Price
Approximate
Median Price
Jimmy Choo £325 £550 £375
Lanvin £325 £610 £425
Valentino £390 £1,580 £565
Dolce&Gabbana £345 £1,300 £680
Figure 8: Price range for luxury trainers. Produced by authors, using pricing information from
www.farfetch.com
Based on the competitive pricing analysis, key direct competitors in the luxury sneakers
market offer entry-level products starting from approx. £350, with higher-end models retailed
at more than £1000.
3.3.2 Cost Structure
Manolo Blahnik’s main cost-drivers are as follows:
Production cost, including:
● Premium materials, such as satin and jewels
● Labour cost (handmade in Italy)
Distribution cost, including:
● Fixed cost for showrooms and boutiques
● Fixed cost for placement at department stores
● Logistics costs
Marketing cost, including:
● Placement in popular TV shows, such as ‘Sex and the City’

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Current footwear products are priced within a £550 - £2950 range, including exceptional
pieces, according to the official website of Manolo Blahnik (Blahnik, 2016).
The cost structure for high-end footwear is not different to the luxury sneakers, and
includes a high margin.
3.3.3 Pricing Recommendation
Based on the competitive overview, the recommended price for the basic product shall
start at £350 - £395 range. The majority of trainers in the proposed product line, should,
however, match Manolo Blahnik’s dress shoes pricing, and be retailed within £450-£750
range.
The product line should also include a limited number of models priced above £1,000, to
compete with luxury brands in the haute couture market. Such products might include
embedded jewels, and should be positioned as exclusive, limited editions.
3.4 Promotion
The promotion of the launch will be carried out on both online and offline channels.
A campaign ‘We all dressed for Manolo’ will be introduced to promote the sneaker line
launch, featuring several iconic and stylish English celebrities between the age of 25-50, to
embrace the idea of being stylish at different ages. Because Manolo Blahnik, the designer
himself has always adored the English style, he believes English girls are about expressing
individuality, and confessed his tastes and likes are very much shaped from living in England
(Morton, 2014). The usage of celebrities, not only has the potential to create a stunt and
attract different groups of customers, this strategy will also be coherent with the heavy
association between the brand and celebrity culture in the past.
The campaign advert will be placed in various offline publications such as Vogue,
Vanity Fair and Harrods magazine. A launch PR event will be held exclusively during the
coming London Fashion Week period, partnered with Selfridges London at Manolo Blahnik’s
concession space, alongside the presence of brand ambassadors, major media editors,
supermodels, celebrities and social elites. There will be a pre event poster on Selfridge’s
social media accounts and banner on their official website to promote the event. A series of
10 seconds live videos on famous guests during the event will be taken on a smartphone,
and published on Snapchat. The feature of Snapchat only allows the general public to take a
peek at the event once on that specific evening. This action will increase attention, yet
remain the brand’s exclusive image. Furthermore, it will be followed by post event press
coverage through offline and online media platforms such as Vogue and The Sunday Times
Style to reach wider range of potential consumers.

21
Meanwhile, a series of short films from the campaign, each featuring a different
celebrity, will be placed on Manolo Blahnik’s various social media accounts and the official
website within one month to keep up the public interest. Email notifications will be sent
weekly including the film link, to inform Manolo Blahnik’s existing customers. Vogue UK will
have the exclusive access during the short films’ production to create short videos of behind
scenes, as well as interviews of the featured celebrities and Manolo Blahnik the designer
himself, to be shown on Vogue UK’s official Youtube channel.
All the celebrities featured in campaign will receive a free pair of customised sneakers.
Additionally, another three top influential online bloggers such as Susie Bubble and Chiara
Ferragni will receive a free pair each in order to promote on their personal Instagram
accounts.
A competition of sharing the campaign with keyword “#wealldressedformanolo” on
Instagram will then be carried out, the selected winner will receive an invite to visit Manolo
Blahnik’s design studio in London and witness the process behind the making, in order to
emphasise the high level of craftsmanship and establish an authentic branding to the public.
In addition, Manolo Blahnik will collaborate with a popular English young fashion
designer J.W. Anderson, to create special editions of sneakers for the Fall/Winter 2017
collection, and will be showcased at J.W. Anderson’s fashion show. This strategy is mainly
used to increase the attention and build a younger brand image to the younger consumers.
Orders will be accepted straight after the runway rather than waiting for six months, but only
1000 pairs of sneakers will be sold at both Manolo Blahnik and J.W. Anderson’s distribution
channels, since limited editions increase exclusivity and desirability of a brand (Goody,
2016b).
3.5 People
Brand ambassadors will be responsible to ensure acknowledgement across all
distribution channels, including the delivery of sales staff training materials and seasonal
training sessions.
4. Conclusion
Having carefully assessed the opportunity of introducing luxury non-sports sneakers to
the luxury footwear segment, Manolo Blahnik is advised to launch high-end sneakers and
implement the proposed marketing plan. Due to a high market growth for fashionable
trainers and a general increase in consumer demand for more comfortable shoes this market
segment yields a lucrative investment. By entering the market and implementing the
marketing plan, the brand could approach the possibility of increasing their market share.

22
Applying high quality materials, Manolo Blahnik attains their current brand image and
beliefs, however, by utilizing mass customisation the brand addresses an additional target
audience and offers a high qualitative comfortable, but stylish shoes.

23
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