Question

What generic business strategy Moncler is using to achieve competitive advantage?

List and explain the specific steps Moncler is taking to implement this strategy?

Compare and contrast their strategy with other luxury brands you recognize (Gucci, Chanel, Dior, Armani, etc.)

Answer 1

Moncler has adopted a product differentiation marketing strategy. With this, they are able to charge premium pricing and gain a loyal customer base for themselves.

It is an Italian luxury fashion brand that is most popular for its skiwear.

Their impressive quality that can withstand harsh weather conditions and unique design has made them differentiated from the competitors.

2. Moncler is built upon three strategies, great quality, unique design, and impressive marketing style.

Unlike other brands that come with their collection once or twice a year. Moncler is known to bring new designs and collections every month. They bring the limited collection, that is initially hyped online and then released to the target segment. The hype generated and design with regularity keeps them in touch with their customers.

Also, unlike other brands that have one creative director. In Moncler Genius collection, there are 8 designers involved, who are well-established names in the market.

These collections bring upon the blend of different voices ( as Moncler describes it).

Apart from design and marketing, they also keep their quality great. For example, their quilted jackets were used by the Italian expedition to K2 in 1954. They make use of Japanese Nylon that provides durability, along with the quality of yarn and other materials whose quality is high. Also, it is mostly manufactured in Europe, unlike other brands that are made in Asian countries like China. This makes their price on the higher side.

They also make use of sustainable practices to run the business.

Due to their differentiation in the product and how they are promoted, they are able to put a premium price on their products

3. While Gucci, Chanel, Dior, etc are also popular and are known for their differentiated products, but they are not direct competitors of Moncler, which is popular for puffer jackets and coats, while Chanel apart from ready-made clothes, is equally popular for luxury goods and accessories.

What makes Moncler stand out is the acute focus on design and quality along with regularity. They sustain the dialogue with the customers. Bring a product as a limited edition, that creates hype for it. Along with that, having the creative genius of 8 directors who are well established, speaks about its quality, which other luxury brands are unable to copy