1. BUSINESS CASE: Ralph Lauren
Ralph Lauren launched PoloTech™, a smartshirt with groundbreaking adaptive workout app. The innovative PoloTech™ is a smartshirt, a seamless blend of sleek, modern style with real-time biometric technology, makes its retail debut on August 27. Ralph Lauren continues to lead the fashion industry in wearable technology with the launch of this groundbreaking fitness shirt and the simultaneous introduction of a game-changing, adaptive workout app that uses detailed data to tailor individualized training for maximum results.
“The Ralph Lauren PoloTech™ shirt will change the way you look at fashion and apparel. It will give you knowledge you can use to lead a better life,” said David Lauren, Executive Vice President of Global Advertising, Marketing and Corporate Communications. “This is a bridge between technology, fitness and style that approaches wellness and well-being in comprehensive and complementary ways. It will touch many parts of your life.”
The smartshirt was developed in partnership with proprietary technology from Canadian-based OMSignal, whose team includes experts in neuroscience, sports medicine and engineering. The PoloTech™ app workout routines were devised by Galvanized, the health and fitness media company founded by David Zinczenko.
THE MARKETING MIX: PRODUCT
- Smartshirt with groundbreaking adaptive workout app
- Modern style with real-time biometric technology
- For Men & iPhone users only
- Developed with OMSignal
- Launched – August 27, 2016, in US
MARKETING mix: PRICE
Initial U.S. Price: $295
- Fashionable: “sleek black” with yellow Polo Player logo.
- Customized Workout – 3 exclusive workouts that adapt, in real time, to data captured by the shirt.
- It’s difficult to take the shirt off
- The garment is at least machine-washable
MARKETING mix: PLACEMENT
Initially available at:
- Flagship in NY
- US Open store on the grounds of the USTA Billie Jean King National Tennis Center.
In France, Ralph Lauren has one Flagship store and an e-commerce website in French.
Retired from commercialization on March 2017!
MARKETING mix: PROMOTION
Different channels to reach consumers:
- Advertisements in print
- Online & Social Media
- Television – occasionally
- August 2014, Marcos Giron, dressed at the U.S. Open Tennis Championships the prototype during practices, but not during the tournament
Sponsors major events and athletes:
- 2006 – first official outfitter of Wimbledon
- Sponsors the United States Olympic Team
- Sponsors professional golfers: Webb Simpson and Luke Donald
FRENCH MARKET CASE STUDY
- France Area: 551.695 km2
- Capital: Paris
- Currency: EUR
- Institution: Republic
- Internet Access: 87%
- Official language: French
- Foreign Languages: English, Spanish, Italian and German
- Total population: 66.415.00 (population growth: 0.88%)
- Median age: 41,1 years (Male: 39.4 years, Female: 42.6 years)
- The number of smartphone users in France is growing steadily
- “Not trusting foreign websites” is the main barrier regarding cross-border e-commerce
- Off all Social Media Platforms, Facebook has the most French Users with 43% market share
PoloTech™ QUALITATIVE MARKET STUDY
Alix, 24 years old, Marketing Project MN, MSC in Luxury Marketing, ex-tennis woman
- Product ->interesting to challenge yourself, optimize performances.
- Lacks innovation.
- Difficult to estimate a price, because of the connected watches.
- Facebook & Instagram – best channels, an athlete to promote it à people like to refer to them.
Melyna, 25 years old, Marketing Project Manager & Instagram Fitness Influencer
- Product starts from a good concept => is it really adapted to a sporty activity?
- Quality of the t-shirt =>people shall feel at ease to like it.
- Price range between 90 & 150€ to fit with the connected watches prices.
- Mailing & social networking ->A Fitness Influencer or an athlete to promote
Emmanuel, 26 years old, Herbalife fitness coach
- Product -> good idea only if it’s soft for use.
- Lacks options => too many common options with a connected sports watch.
- Ready to buy it until the limit of 200€.
- Social networks (Facebook, Instagram) & the muse of the product must be an athlete.
Jean-Daniel, 23 years old, Engineer in Disabled people’s reeducation, football & basketball player
- Product – interesting for sporty people, attention to the caring recommendations
- Must be soft, allowing the skin to breath & easy to clean.
- Price limiting the perspective of buying
- A muse like Griezmann, representing the Millenials
Why PoloTech™ should not be launched to French Market
- iOS – 24.4% market share vs. Android – 72.2%. Female population – 49%.
=>Losing: 72% – potential customers & 49% – population in France.
- Price – 295 $ => Positioning the product as a High-End Product.
- 76% clientele in Paris => distribution to Paris area only.
- Potential clientele – prefer smart watch – cannot accept the product is unwashable
- French people spend on average 253 €/year for sport tenue