Branding project

Branding Project:

Ellinor Lindqvist Christina Costa Sabine Kodu

2

Index Context……………………………………………………………………Page 3

Environmental Scan………………………………………………. ……...Page3

Objectives ………………………………………………………… …….Page 4

Strategy ………………………………………………………………......Page 4

Audiences …………………………………………………………..…… Page 6

Messages …………………………………………………………………Page 6

Tactics…………………………………………………………………… Page 7

Customer Analysis…………………………………………………….… Page 8

Internal Analysis……………………………………………………….…Page 8

Competitor Analysis………………………………………………...……Page 8

Functional Analysis…………………………………………….……….. Page 9

Economic Analysis…………………………………………………….…Page 9

Relational Analysis………………………………………………...……Page 10

Morphologic Analysis………………………………………………...…Page 11

Bibliography…………………………………………………………….Page 12

.

3

Context

In March 2007 H & M started the brand Collection of style, COS. The chain is a

project created by the chairman of the brand Stefan Persson's son Karl Johan. It is his

first project within the H &M group. COS is an independent brand and even though it

is a part of the group it doesn’t have any visible link to the Swedish brand H & M.

The store concept is to produce a collection of luxurious men and women's clothing. The idea is to offer high fashion with high quality fabrics, finish and fit at an

affordable price.

“Where the H & M's prices stop COS's prices take over. But it will still be high

quality at a good price," said Jenni Tapper-Hoel, press contact at H & M in 2007. COS launched their first store in London and the same year they opened a dozen other

stores around the Europe, they have chosen locations like Belgium, France, Germany

and Spain. Today there are 39 stores and the company has plans to open even more.

Environmental Scan Since COS is part of the H & M group they certainly have the recourses and

experience to make it in the saturated fashion market. The production, distribution

and logistics are done thru coordination with H & M. The collections are created by

COS´s own selection of young designers and buyers. The store locations are carefully

chosen and you can find COS at the most coveted addresses in major cities. This

makes it easy for customers to find the brand and is a one of its success factors.

H & M's has decided to launch COS as an independent brand with no visible

connection to the source. This of course has an impact on the consumer perception of

the brand. A study done by students at Lund’s University of economics in Sweden

showed results that consumers are positively influenced by H & M's choice of moving

to a House of Brands and launch COS as a standalone brand. In this article the result

also shows that the invisible, but clear link is a key success factor.

4

Media say that the COS, is H & M' s attempt to go upmarket. Insiders say it’s an

attempt to reposition itself after slow sales caused by fierce competition in the

"budget" market from the likes of Primark, Tesco and George at Asda. According to

H & M their success lies in their product and what they are offering customers- high

quality fashion at affordable prices. Of course they have a great marketing and

communications departments that know how to sell “ the lifestyle of COS” to

costumers. Because this is a lot of what the brand is about. In their stores they display

a classic, smart and luxurious style as well as in their own magazine and the garments

that they sell.

Objectives The creation of the brand COS is H & Ms attempt to reach a more upscale market.

Their focus has earlier been to produce and sell fast- fashion and cheap clothes. COS

has a more grown up style of clothing than the bargains that H & M are offering.

The H & M group’s objectives are to create a high street brand and to supply

customers with classic clothes with contemporary cuts.

Today's consumers are becoming more quality conscious and long-term in their

buying habits. H & M has created COS to meet this consumer trend. The obvious goal

is to reach customers and to sell their product.

Strategy COS is using an interesting strategy to enter into a market that had seemed to be

going downgrading, the middle market; that is where brands such as Miss Sixty,

Guess, Levis, Diesel, Massimo Dutti are positioned. The concept on which the brand

is based gives another meaning to fashion. The COS collection combines the art of

details with affordable prices and their business concept is: "fashion and quality at the

best price", not forgetting about quality in terms of the fabrics, fit and finishing.

COS (Collection of Style) combines the meticulous focus and attention to detail of

ready-to-wear design with down to earth pricing; making aspiring fashion attainable

5

to the mainstream. After H&M made the successful collaborations with Karl

Lagerfeld, Stella McCartney and Viktor & Rolf it’s no surprise the chain reveals this

new, design-driven concept with an affordable price tag: haute fashion on the high

street.

The latest trends show an increased interest in ethical products, and purchasing

decisions are not based purely on price. According to trendwatching.com our

shopping behavior becomes increasingly "hourglass formed '. Consumers today

choose to buy either expensive or cheap products. H & M are following this trend by

offering products in both of these categories. There is a growing quality and price

consciousness among fashion consumers. The quality-conscious consumers a

developing audience in today’s society and has become an important target for

brands.

COS basically wants to enter the middle market brands with their prices and at the

same time they want to eliminate the luxury brands with their quality. As a store they

have the chance to grow geographically; set more franchises around the world, but

they still want to keep their exclusivity. The future plans are to open their first COS

store in Sweden this summer, the brand believes that COS will suit the Swedish

customer well. This will be the first store that will be carrying the whole collection for

women, men and children.

6

Audiences When referring to the public or audience that COS stores wants to approach we

clearly see its target. COS is definitely the “future of style for the man on the street”.

Someone who will wear COS, is someone who seeks not only for style and form, but

also for upgraded quality. Someone with culture, who understands design maybe a

little of architecture, conservative and simple when it comes to dress code but at the

same time with a touch of being edgy in trying new forms in style.

In an article by Winston Chesterfield, “COS Stores: Style and Quality finally

Affordable”, he talks about COS as being “a revelation for fashion, because it does

not seek to clothe average man on the street, but rather seeks to appeal to

disenchanted man of style, the dandy without a tailor.”

In the other hand the head of COS menswear design described that the brand “calls to

mind a modern man with a big city mindset, who understands and definitely

appreciates good style and great quality.”

After analyzing all these and observing the people who enter and approach the store,

we get a clear image of who are the audiences of this brand; an interesting market

with a futuristic vision of fashion.

Messages When talking about COS as communicating with the audience, we do not see a lot of

promotion. Jose Guerrero, expert in Communication and Media, confirms this by

saying that, “COS is basically dealing with catalogues and web communication as

major visual references. They do not use ads, TV or any other major publicity, but

they do use their stores and create major scenarios for their lifestyles, with great

interior decoration and window-displays.” And all these are true, as a matter of fact

they communicate through their website where they not only show interesting images

of their collection, looks and campaign but also have photos of their spaces and a

Magazine who hosts them.

Interacting with their photos we see that they are quite personal, artistic and pure. By

this we understand that COS wants to transmit that their pieces are constituted by

neat, clean and modern silhouettes.

7

The brand also emphasizes the spaces in the store. In their website they expose many

images of the interior of their stores around the world. Interior design seems to be

important in their way of communicating with the public; everything is organized by

colors and as you step in you notice how everything has been thought about. Black,

white and grey prevail in their collections giving a sober and interesting air. Stores are

not decorated equally; when you enter a store in Denmark or Toulouse you will notice

that the spaces, lightning is different. This is what they want to project, they are an

innovating brand and even though they are throughout the world they know how to

adapt to their environment, they want a costumer to feel comfortable, like at home

when choosing a garment. They want the costumer to go visit the store so that there

is a closer connection with the brand, because that is where all the experience is,

within the store.

Everything is so neat and well set, with a lot of illumination that you just feel

comfortable knowing that quality is insured. They know how to connect architecture

design and fashion, because everything as a whole seems to be coherent. But most

importantly they know how to communicate with the audience in a more personal

way, offering customers a closer relationship with the store and brand itself.

Tactics Cos purchase their products from around 60 suppliers, which are located primarily in

Europe and some in Asia. The products are manufactured under good working

conditions and the brand has a code of conduct. The code is based on ILO´s core

conventions and the Convention on the Rights of the Child, it includes the following

supplier requirements: - compliance with local labor law-statutory pay and working

hours- the right to organize and bargain collectively-a ban on child labor-a ban on

discrimination-a ban on forced labor-health and safety in the workplace – compliance

with local environmental legislation. All products sold under the COS brand name are

covered by the code of conduct. All suppliers of garments and other products that bear

the COS brand commit to our code of conduct. When suppliers sign the code of

conduct, they also agree to an undergoing audit. This means that COS can conduct

announced or unannounced audits at any time.

8

Customer Analysis Someone who will approach COS will probably be around 25 up to 50 years old. The

style of the brand doesn’t really appeal to the younger audience. The garments are

classic and even though the brand follows trends it isn’t that “trend conscious” as

other brands. COS is more about the classic cuts and design. Something that is more

interesting for a more mature crowd.

"It is fashionable essentials, reinvented classics and the latest trends," says Rebekka

Bay COS's former women’s wear designer. The customer is probably interested in

design, culture and fashion.

What separates a COS brand consumer from everybody else is that one seeks for style

and form rather then cheap slogans and throwaway fashion. What motivates the

customer to buy from COS is that they are offering a lifestyle, you can find a

coherence in the way the website, magazine and stores are portrayed. This gives the

customers a feeling of belonging and satisfaction.

Internal Analysis

Cos is a rather new brand and doesn’t have that much history. The brands heritage is

linked to H & Ms past. The brands values are clear they want to offer a product that

has been produced under good conditions. The quality of the garments is also very

important as well as the design.

The characteristics they require for employing is people who are full of energy, have

good communication skills, fast paced but detail oriented and lively interested in

fashion, design and lifestyle. Basically someone who is willing to make the customers

day.

Competitor Analysis

Price wise competitors could be brands like Miss Sixty, Guess, Levis, Diesel and

Massimo Dutti. What sets COS apart from these brands is their sense for design and

high standard in their products. In terms of brand image they compete with brands

like Fillipa K and even Acne. Their vulnerability could be that the product they are

offering has a longer lifecycle and that may cause customers to not come back so

often in search of new garments.

9

Cos is a new band and doesn’t have an established customer base while other brands

may have more loyal customers. The fact that the brand is part of the H & M group

could be a weakness. COS is selling a lifestyle that is about design and quality the

brand image of H& M isn’t really about these topics. When unknowing customers

realize the truth the brand may not have the same value for them.

Functional Analysis The relation between the brand image and the product are very close. H & M didn’t

think that their new concept could fit under their existing brand and decided to instead

build it from scratch. One of the reasons for this is that customers should not associate

COS with the brand values that H& M have. The new brand should represent quality,

design and timeless pieces. These words don’t really come to mind when you are

thinking about H & M.

When building the brand image everything is carefully thought out. The image of the

brand is displayed thru the design of the stores, the employees that work there and the

service that they offer. Their website and magazine sell a lifestyle that attracts

customers. The product they are selling is part of this lifestyle so the image of the

brand and what they are offering are very close to each other.

Economic Analysis

COS is all about high fashion with good quality at an affordable price. Any costumer

who approaches the brand knows that according to costs; COS is not an expensive

brand since it offers well done clothes made of high standard fabrics offering an

exquisite and unique style.

Their garments lie between 39 Euros and 300 Euros that in our opinion are affordable

and appealing.

Price examples women: Dresses: From €49.00 to €79.00 Shirts: From €29.00 to €39.00 Blazers: From €79.00 to €125.00 Trousers: From €49.00 to €79.00

10

Skirts: From €49.00 to €69.00 Jeans: €69.00 Party dresses: From €79.00 to €125.00 Outerwear: From €79.00 to €225.00 Leather bags: From € 125.00 to €250.00 Price examples men: Suits: From €250.00 to €350.00 Shirts: From €39.00 to €49.00 Trousers: From €59.00 to €69.00 Cashmere jumpers: €99.00 Jeans: €69.00 Party waistcoat: €69.00 Outerwear: From €175.00 to €190.00 Shoes: €99.00

Relational Analysis The brand does not appear in

media that much, they don’t use

ads in magazines or TV. COS are

using their stores as scenarios for

their lifestyle, they are displaying

their image thru the window-

displays. Music, light, scent and

the overall design of the store is a

way to communicate with people. Inside Cos store Passeig de Gracia, Barcelona

The stores have comfortable areas with sofas and armchairs, they offer selected books

and journals and provide a relaxed atmosphere. Thru creating a positive atmosphere

customers will respond in a good way and understand the culture of the brand. They

will have an understanding for the lifestyle that the brand is trying to transmit.

In their magazine the band writes about interior

design, creative people like photographers, vogue

editors, musicians. There is a section in their site

under the category things were you find tips about

photography books, artists and blogs. These people

and different things al fit in under the brands style.

11

Morphologic Analysis As mentioned before Cos don’t use any major publicity. If you want to enter the press

section of their webpage you will have to send a mail to the company asking for a

password. There is and has been a lot of secrecy around the brand. The Secrecy has

had a positive effect and created curiosity and expectation amongst people.

This has led to rumor speeding and a discussion around H & Ms new concept. Word

of mouth has played an important part in their marketing. Instead of using the more

common ways of marketing they are using other ways to communicate with

customers. Their catalogues, magazine and website informs us about the spirit of the

brand. The photos in them are artistic and quite personal. Instead of having a big logo

COS is more subtitle something that can bee seen in their website.

To have good locations for

Their stores are part of the strategy since they are using their stores as the main

advertisement for their brand. People will easier find their locations and the window

displays will attract customers. They have stores located at the best addresses around

Europe. The flagship store was opened on Regent Street, in the heart of London's

shopping district. William Russell a well-known architect

that also designed stores for Alexander McQueen

designed it.

The design of the stores is influenced by mid-century

modern Scandinavian design. According to William

Russell’s it is a reflection of his own love of Scandinavian

design and H&M’s corporate home Sweden. The clean,

modern design of the stores sets the tone for COS as a

brand.

The design is important also for the shopping bags. They

function as advertisement for the brand. Even if they

don’t always have big logos the design itself attracts fashion conscious people

12

Bibliography

http://www.fashionbeans.com/collections/cos-clothing-the-future-of-high-street-menswear/

www.cosstores.com/

http://www.hm.com/fi_sv/finansiellinformation/pressmeddelanden/__prfashion.nhtml?pressreleaseid=388 http://www.catwalkqueen.tv/2006/11/shiny_tv_at_hm_.html http://www.mensflair.com/shopping-guide/cos-store-style-quality.php

http://pentagram.com/en/new/2007/03/new-work-cos-collection-of-sty.php

http://www.hm.com/gb/press/pressreleases/__prfashion.nhtml?pressreleaseid=388

http://www.monocle.com/sections/design/Web-Articles/HMs-Collection-of-Style/