Written Analysis of Case

Background Analysis
With the increasing demands and expansion of the current business, the managers have to take strategic and functional decisions which includes diverse marketing strategy. Elie Saab (Lebanon based fashion designer) along with his managing director Cavalcanti, tends to formulate a sound expansion strategy for coming 5 years of the business. The strategy aims to eliminate the threats of brand dilution and emphasis on the selection of the right partners and profitable new markets. Moreover it is experienced that the market trends are changing with time as brand plays a very vital role. People associate their values in term of image, quality, fashion, store atmosphere and status when they buy dresses. As Elie Saab is a brand that targets exclusive and super rich segment, the dresses are made to perfection while considering the exclusivity, status, creativity and class. The luxurious brand, moreover is divided into 3 sections, the super wealthy brands, aspirational brands and the ones which target the upper middle class. The economy also states that the High net worth individuals rate, population and financial wealth of the individuals are rising every year, which opens the opportunity for the fashion companies to expand their businesses and maintain the international presence rewarding more financial benefits.

History and Expansion

Elie Saab is the visionary, creative and aspirational fashion designer who started his creativity at the age of 9, when he used to make dresses out of old curtains and table covers, soon he started his own atelier unyielding his desire to design in a creative and innovative way under the name of ES ( Elie Saab ) brand. By 1990s the brand expanded and participated in various fashion shows in Paris, Italy and Rome which created his global presence and Elie started to get recognized internationally. Elie Saab, by 1980s, got a status of Haute Couture and soon started his ready to wear products. By 2000, Elie Saab was market as premium fashion designer in the Holly wood also, as many celebrities wore his dresses in the Oscars and other exclusive events. The company soon started expanding strategically. The first alliance was with the Tatweer/Dubai Hotel chain to develop signature Hotels. Soon ES, also got affiliated with Tiger Woods. In 2008 ES started its flagship store in UK, soon in 2008, started its fragrance and perfume product line business. In 2010, to show the symbol of luxury, Elie Saab signed a contract with Yatch show

case in Abu Dhabi, which was a symbol of exclusivity, premium, status and unsurpassable luxury. His expansions also include the flagship stores in Dubai mall, boutiques in London, Parris Milan and Beirut.

Operational and Marketing Aspectives

At current there were 150 full time employees. The creative function was handled by Elie Saab himself and the Business function was handled by Cavalcanti. The main product lines of ES includes the haute Couture outfits, ready to war outfits, wedding dresses and accessories. The distribution strategy only entails the company stores, retailers, partner stores and (licensing, partnership and third party distributions), moreover the most visible marketing strategy was to have a good after sales services. The other marketing attention was gained by the media coverage and celebrity endorsements. There were three communication offices with the aim of building public relations. Elie Saab was also keen to invest in the social welfare and various training programs. The finish dresses were featured at the fashion shows and pictures of the dresses were then used to create catalogs and other marketing related materials. The pricing range of the custom made couture products varies from $30,000 to $ 1000000, while the ready to wear products ranges from $1200 to $21000. The pricing was done keeping in mind the customers who are interested in high fashion and have the ability to afford them.

Analysis
As far as the strengths of the business are related, the foremost strength is that the member of the chamber syndicate de la couture along with the direct ownership of its stores except the Dubai, the direct ownership can increase your local expertise which can eventually initiate the learning process and by this Elie Saab can analyses the fashion trends of various places which could help in further expansion of the business. Moreover Saab was personally involved in the customer service and brand management activities. The main weakness of the brand which could be an impediment is the dilution of brand in many activities, which could result in loss of the original identity of the brand. The brand started off with fashion designer clothing and now also into a business like yachts and hotels, which is an example of undiversified expansions. The sales figures are still own in Asian, USA and Russia.

The opportunity exist in those markets as there are high number of net worth individuals there. Moreover there is no evidence that Elie Saab is making online expansions too. The main threat of the context is the demand increasing demand of ready to wear clothing, which can lead to more casual type of clothing. If the demand keeps on raising there is a threat that business might mix the aspect of luxury with affordability. There is also a threat that if the product is launched into the developing economies, the prices will go down, ultimately resulting in the true identity of the premium nature of brand.

Recommendations
ES should open the flagship stores in Asia, more specifically in Hong Kong, China and Russia as they yield more number of millionaires. This strategic move will also increase the global presence of the brand. There should be related diversification like mens clothing, eyewear, and swimsuits. When the brand is subjected to expand, the concept of Strategic business units comes in, so if ES expand to the mens wear, the different SBU should be formulated, which will advance the operational capabilities of the brand , resulting in better analysis and fulfillment of demands, keeping in mind the aspect of creativity, luxury, exclusivity and premium.