0
Current Strategy The current strategy is marked by the strong presence of Johan Rupert in the heart of the group and the strategy. Cartier, Richemont's cash cow, has just gone through its two worst financial years. In October 2003, Alain-Dominique Perrin, ex CEO of Cartier and who was appointed CEO of Richemont is replaced by Johann Rupert who wants to take a greater control in the Omega replica company after the last two disastrous years. Communication The advertisement campaign is a pure product campaign presenting the watch on a red background. An example is presented at Annex X: Cartier's advertisement, December 2003, Elle Deutschland. Born a little bit more than twenty years ago, the collection "Art de Cartier" encompasses some 1200 pieces of jewelry. It is mainly old Cartier pieces that Cartier bought back in auctions or private collections and that represent the evolution of the brand over the last 150 years.
There is no fix location to present the collection; on the omega speedmaster replica contrary, the objects are presented worldwide in itinerant exhibitions. The collection has already been presented, among others, in Paris (first exhibition in 1989), Saint-Petersburg (1992), Tokyo (1995), Lausanne (1996), New York (1997) and London (1997), Mexico (1999), Berlin (2202) and Shangai (2004). This strategy is very well thought of because now, Cartier's jewellery and timepieces are considered as art pieces. The creation of the Cartier Art Magazine also increased this vision a lot. Cartier is also sponsoring many art events but they do not use this sponsorship in their advertising campaign. Cartier has a representation contract with Monica Belluci. It means that, anytime she is wearing jewellery, this omega seamaster replica is Cartier jewellery. There are actually many celebrities who wish to have that kind or contract or ask to borrow jewellery. Cartier is also the sponsor of various events, locally, like the Cartier Polo World Cup on Snow. Distribution The distribution network has been decreased and some stores have been renovated on the impulsion of Johann Rupert. In fact, one of the key success factors to launch a luxury watch is to have a selective distribution strategy as well. Cartier had way to much distribution points and selectiveness was decreasing. Furthermore, the direction was trying to progressively eliminate the omega constellation replica lower range of product ("les Must de Cartier"). Therefore, one can imagine that distribution and price strategies were not on the same level. Product range Lately, after the very bad results of exercice 2002-2003, the worst in its history, the product range has been broadened with entry level product for already 1800 CHF (new Tanks).What is more, the "Les Must de Cartier" collection will be conserved and renewed. As it has just been mentioned, the omega de ville replica direction wanted to get rid of this collection because it was damaging the brand identity and prestige.
Brand Awareness As Annex IV: Brand Awareness shows, Cartier has also a very high brand awareness that reaches 95%. What is more, Cartier embodies refinement, French tradition and luxury. Weaknesses Human turnover is high Turnover has been high the last five years at Cartier in spite of permanent organizational changes, dismissals and departure of some managers. As an example, Jean-Christophe Bedos, ex CEO of Cartier France is now CEO of Boucheron -Gucci Group- and Guy Leymarie, who worked 18 years for Richemont,cartier love bracelet sterling silver replica, ex CEO of Dunhill and Cartier, is now working for De Beers -LVMH- after his eviction. What is more, Cartier counts four different CEO in 6 years. In June 2003, when the brand is doing extremely badly, Franco Cologni is joining CEO Bernard Fornas in order to turn the omega casino royal replica brand around. He explains this high turnover the following way "There are too many over-dimensioned egos in the luxury industry and particularly at Cartier. Nevertheless, there is a golden rule in this business: managers go by but the brand stays".(Le Temps, 3.7.03) What is more, Cartier closed a plant in Villeret,cartier love bracelet replica, Switzerland and canceled 200 work places in the watchmaking industry in Switzerland.
The bad situation of the market is not the only explanation. M. Rupert comments that "the last successful years conducted to complacency" and that "with complacency progress stops" In fact, the production decreased to 230000 watches in 2002 versus 350000 in average the precedent years. Financial Results Cartier is just coming out of two disastrous years with two years in a row a declining turnover and net benefice.
Published at Sooper Articles - Ezine Articles Directory
No comments:
Post a Comment