This second part of the situation analysis will focus on the Armani perfume SWOT : we describe the main strengths, weaknesses, opportunities and threats but not all the existing points because it would be too long and uninteresting.
The brand image of Armani
License exploited by L’Oréal : a very good promotional support
A very dense distributive networkWeaknesses
License exploited by L’Oréal : is there a total control of the product image ?
Price : a little bit more expensive that the competitors
Strong opportunity of development
Problem of Giorgio Armani's succession in the head of the group
Fierce competition, competitive and cyclical pressure
Strenghts (internal capabilities that help the company reach its objefctives)
-The perfume benefits from the brand image of Armani which is a symbol of elegance and timeless brand. Moreover, the brand is present on all of the luxury segments, the product thus has a maximal exposure. The perfume is directly associated to an image of luxury and quality without to have to point out it by a specific speech.
-It is a license exploited by L’Oréal, the product thus benefits from a very important promotional support at the world level (TV campaigns…). So, Giorgio Armani has not to be afraid for the promotion of his product, L’Oréal takes charge of everything, and effectively.
-Strong visibility of Armani related to the recent development of the distributive network and thus its density as well as to the innovation of concepts (café-restaurant, shops dedicated to accessories and to house… Weaknesses (internal elements that may interfere with the company’s ability to reach its objectives)
-The product is a license exploited by L’Oréal. We can thus wonder if Giorgio Armani keeps a total control of the product image? Furthermore, the activity is less...