EEE 370 Individual Case Analysis PDF

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This is my case analysis for the Italian brand assignment...

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Alena Zappa – Case Analysis FILA Organization                    

Fila brothers started company in 1911 in Biella, in 1923 established family-run textile business as a high-quality knitwear manufacturing company, entered limited partnership named Maglficio Biellese Merged with Fratelli Fila in 1942, in 1972 had sales of over 1 billion lire, workforce over 250 Managing director Enrico Frachey - transformed Fila into global sportswear brand 20th century marked era of individual expression rising to international prominence: Sports (especially tennis) = “vivacity of the human spirit” Designer Pier Luigi Rolando, engineering director Alessandro Galliano created Fila’s premiere outerwear collection (1972) Crafted fabric to mirror athletes movement – adhering smoothly to body like a second skin yet providing sense of total freedom (inspired by Frachey’s cliff climbs in Biella) Wanted to produce fabrics that combined luxury, art and utility – drew inspiration from homeland to create a product as “textured” and “evocative” as the Italian landscape: the “austerity” of the Alps, “fluidity” of the hills, and “boldness” of Mediterranean coast Launched “White Line” collection – challenged traditional tennis wear, fused provocative and exemplary, effective function captivated market = new era for the sportswear industry Fila = caters to the exceptional athlete and the cosmopolitan individual by understanding that “classic doesn’t have to mean conservative, and timeless designs can still be contemporary” Debuted collection with renowned tennis players Adriano Panatta, Paolo Bertolucci, and Bjorn Borg (wore Fila while winning five consecutive victories at Wimbledon) Reinhold Messner (first to reach Mount Everest summit without additional oxygen) wore Fila Kim Clijsters made history when she came out of 18 month retirement and won back to back US opens – designed “Trophy Collection” for Clijsters to wear at Grand Slam tournament Changed signing endorsement deal with NBA star Grant Hill and World Cup skier Alberto Tomba to compete with Nike and Reebok Huge sales increase in South African market in the 90s, kids grew up wearing Fila sneakers Adopted new logo in the 80s – artistic letter “F” gave brand “futuristic” and “elegant” look Red bar = vitality, vigor and passion, blue color represents trustworthiness and reliability 2000s marked difficult period for Fila – original Italian ownership shop, Holding di Partecipazioni, sold company to US hedge fund, Cerberus Capital Management in 2003 due to number of failed endorsements and over-commitment 2007 Fila Korea kept Fila alive when the company bought the global brand and subsidiaries Fila partnered with Global Leading Brands House (GLBH) – fashion organization dedicated to helping companies develop high-end fashion products, Fila established one of its headquarters in Milan after this partnership 2017 collaboration with Pink Dolphin Clothing marked return of Fila on global scale, growing presence in South African market taps into brands history and nostalgia it has in the country

Rational Proposition

Key Success Factors and SWOT Analysis: Fila’s key success factors include a strong team and favorable timing. The company started with two brothers, which creates a family dynamic that promotes group synergy. To expand the family owned business the brother’s hired managing director Enrico Frachey who developed Fila into a global brand. Designer Pier Luigi Rolando and engineering director Alessandro Galliano joined the team in 1972 and created Fila’s premiere outerwear collection, which revolutionized the sports industry. This passion behind the family-owned-and-operated business paired with the knowledge and skill of Frachey, Rolando and Galliano sparked Fila’s success. Furthermore, the late 20th century international launch of Fila proved crucial for the company’s success. Fila recognized the global market starting to value sports, especially tennis, as a form of individual expression. In response, Fila launched the “White Line” collection, which challenged traditional tennis wear by combining exceptional function with contemporary design. Overall, Fila’s strengths include premium quality and style and legacy. The brand uses superior fabric to craft athletic wear that is both functional and fashionable. Additionally, the brand maintains a strong legacy with its “Fila” athletes, reputable sponsorships, and over a century long life in the marketplace. Weaknesses include versatility and over-commitment. The market does not recognize Fila as a versatile athletic brand although it offers versatile products. Further, Fila operates on a global scale, making it difficult to fulfill consumer and affiliate demands. Fila Korea’s takeover of the brand in 2007 exemplifies this weakness. Opportunities include collaboration and expansion. Fila can collaborate with other companies and athletes to continue transforming the brand and maintaining relevance. The company can continue expanding the brand such as creating new product lines and increasing versatility to engage the consumer. Fila’s main threats are international competitors such as Nike. The brand needs to ensure differentiation from similar brands to remain relevant. Marketing Positioning and Competitive Advantage vs. Key Competitors: Fila positions itself as a high-quality, mid-high price brand that offers premium performance, yet sophisticated products. The brand uses superior fabric inspired by the Italian landscape to provide luxury, art, and utility. Fila separates itself from competitors through its fashion orientation. This is an athletic brand that not only enables maximum performance, but also exudes style. Furthermore, Fila’s strong affiliation with the Tennis world differentiates the brand from other athletic apparel brands. Competitors include Nike, Adidas, and Reebok. These brands all offer superior quality and are priced at similar rates. These brands challenge Fila with their versatility. Nike continues to lead the market as it caters to a number of sports. Adidas also caters to a various sports and produces a strong lifestyle brand. Reebok’s shoe line directly competes with Fila offering athletic and fashion sneakers. Additionally, these brands market themselves at similar prices. Despite these competitors, Fila maintains a competitive advantage in the marketplace through its Italian inspired fashionable, yet functional approach to athletic wear. Emotional Proposition Mission – Vision – Emotional Connection with Customers:

Fila strives to help transport their consumer to wherever they want to go because they believe “the beauty of sport is that of a life in motion.” The brand believes sports are a form of individual expression, and athletes deserve garments that not only enhance their performance, but also demonstrate their style. Fila wants the consumer to break expectations, challenge personal limits, and stand out. This mission connects with the customer on an emotional level because wearing Fila surpasses the athletic function; rather, it inspires the customer to channel their individuality. Style Identity, Aesthetic Attractiveness and Design of the Brand: Fila is a chic, athletic brand that caters to the fashion-conscious athlete. The brand combines performance and sophistication to give a refined aesthetic. Inspired by the Italian landscape, the brand screams style. Furthermore, Fila merges the concept of challenge and admiration by creating classic products with a modern twist, such as the “White Line” collection. Fila’s colors (red and blue) also have significance, demonstrating the brands attention to detail. Red stands for vitality, vigor and passion and blue stands for trustworthiness and reliability. The “F” logo further represents the brand’s identity with a “futuristic,” yet “elegant” look. Spiritual Proposition Corporate Social Responsibility and Key Social Values Fila lacks a distinct social responsibility; however, the brand dedicates itself to honoring athletes in their challenging sports pursuits. For example, Fila created a special line for Kim Clijsters for making history after she came out of an 18-month retirement and won back-to-back U.S. Opens. Furthermore, in recent years Fila has paired with Pink Dolphin Clothing, a company promoting positivity and limiting product to keep saturation from the streets. This collaboration reignited the presence of Fila in the South African market and exemplifies the beginning of Fila making a strong social mark with its dedication to prosperity and conservation. Conclusions and Possible Recommendations Fila found success through a strong team and impeccable timing. The brand stands out as a classic, yet trendsetting brand with admirable quality and chic design. This aesthetic enables maximum performance, while conserving individuality. Fila dedicates itself to fostering the phenomenon of sports as a form self-expression and inspiring the consumer to defy expectations no matter the conquest. The brand transcends competitors such as Nike with its unique Italian inspiration and fashion legacy; however, Fila remains hidden in terms of versatility. While Fila offers versatile sports products, other brand dominate the market in this regard. Fila has the opportunity to promote its other sports products (such as yoga and basketball apparel) in the same way it markets its top selling lines: a functional fashion statement. In addition, the brand has the opportunity to further integrate the idea of style and performance by reminding the consumer that Fila is not strictly athleisure; rather, serious athletes can wear this brand to maximize their performance while feeling stylish and refined.

Works Cited

Bhasin, Hitesh, et al. “Top 10 Fila Competitors - Competitor Analysis of Fila.” Marketing91, 14 June 2018, www.marketing91.com/top-fila-competitors/. “History.” Vendor Code of Business Conduct, www.fila.com/customerservice/corporate/History+of+Fila.html. Saunders, Evan. “Sneaker History – How Fila Conquered Italy, Then The World.” Fortress of Solitude, Fortress of Solitude, 15 July 2018, www.fortressofsolitude.co.za/sneakerhistory-fila/....