"Successful Baltika Group rebranding strategy. "Mosaic" case in Lithuania".

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"Successful Baltika Group rebranding strategy. "Mosaic" case in Lithuania".

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For the brand development, one name for menswear and womenswear was needed ... CHR/Evermen was not a brand, just combination of menswear and womenswear label ... – PowerPoint PPT presentation

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Title: "Successful Baltika Group rebranding strategy. "Mosaic" case in Lithuania".


1
"Successful BaltikaGroup re-branding strategy.
"Mosaic" case in Lithuania".
  • Daina Daubare
  • September, 2007

2
Baltika today
  • Baltika Group is a rapidly growing fashion
    retailer in the Baltics and Eastern Europe
  • four retail concepts
  • 124 stores with shop floor space of 23,011 m2
    (June 2007)
  • retail coverage of six countries
  • vertically integrated business model
  • The company aims to be the leading specialist
    fashion retailer in Central and Eastern Europe
  • The Group employs 1,900 people
  • Since 1997, it has been listed on OMX Tallinn
    Stock Exchange

Baltikas retail markets
CEE region
3
Some history
  • 1928  Gentleman is established in Tallinn
  • 1959  The company is restructured and named
    Baltika 1988  The company starts to manufacture
    ladies clothes 1991  Baltika is privatised
    1991  The first gentlemens clothes collection
    Baltman 1993  The first ladies clothes
    collection Christine Collection (CHR)
  • 1995  The Evermen collection is created 2002 
    Strategic changes are launched to make the
    company into a clothes retailing company 2002 
    Monton fashion brand is launched in five markets
    2006  The names of CHR and Evermen retail
    concepts are changed the new name becomes Mosaic
    2006  Baltika opens its 100th store 2006
     Baltika acquires an Estonian well known fashion
    brand Ivo Nikkolo 

4
Vertical model in fashion business
? CUSTOMER ?
?
?
?
Heavy competition Differentiation speed counts
Retail company (net profit margin 3-7)
Retailer
V e r t i c a l (10)
Creating a brand - expensive complex
Brand manufacturer
Wholesale company (3-5)
Retailer makes the decision
Label manufacturer
China attacks
Product manufacturer (does not own label)
Production company (0-3)
Subcontractor
5
Vertically integrated business model unique in
the Baltic's
Centralised management
  • Centralised brand-based management product
    design, supply chain, logistics, etc.
  • Efficient inventory control and sales information
    systems monitoring and analysis on a daily basis

Sourcing
  • Own production base (four factories)
    specialisation in mens and womens tailored
    suits, shirts, jackets, coats (ca 40 of sales)
  • Worldwide purchasing (ca 60 of sales)

Retail ca 80 of total sales
Wholesale ca 20 of total sales
  • Distribution through wholesale to department
    stores in the Baltics, Finland and Eastern Russia
  • A balanced portfolio of different brand store
    chains (Monton, Mosaic, Baltman and Ivo Nikkolo)
  • Strong retail organisations in target markets

6
Retail Brands
  • trendy and fashionable fast fashion brand for
    ladies and men
  • store format 350600 m2
  • end 2008 65-75 stores
  • possible franchising
  • stylish and high-quality professional and smart
    casual apparel for women, men and children
  • store format 200350 m2
  • end 2008 65-75 stores
  • enlargement of wholesale business
  • stylish, classic and high-quality clothes for men
  • store format 100130 m2
  • end 2008 ca 30 stores
  • premium level fashion brand for women

7
Retail network
Baltikas retail markets
Preliminary data
8
Sales division between retail concepts, 2006
56 yoy
39 yoy
31 yoy
Ivo Nikkolo other
9
Why new name?
  • Main reasons
  • For the brand development, one name for menswear
    and womenswear was needed
  • The brand has become international and more
    quality, new name should reflect that better
  • Also
  • The name was complicated to pronaunciate and
    difficult to remember, that is why in some
    countries Christine was used instead of CHR it
    has been making our marketing activities more
    complicated and expensive
  • CHR/Evermen was not a brand, just combination of
    menswear and womenswear label
  • No sole rights in Latvia

10
The Process of Choosing the New Name
  • International competition
  • A choice made between several hundreds of names
  • Evaluation from different markets feedback
  • When comparing the logotypes of the names, we
    observed the values communicated by CHR/Evermen
    brand warmth, naturalness, self-confidence, joy
    of life and reliability
  • The name needed to have a good international
    sound while being easy to pronounce and remember,
    visually distinctive and able to communicate the
    brands values

11
CHR/Evermen became
12
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13
Baltika Lietuva
  • 1993. First Baltman shop in Kaunas.
  • 1996. Christine Collection and Respect brands
    for ladies clothing in Baltman shops
  • 2002. Launched new fashion brand and retail chain
    Monton.
  • 2003. Launched new fashion brand and retail
    concept CHR/Evermen.
  • 2006. Re-branding of CHR/Evermen to Mosaic.
  • 2007. Launched new fashion brand and retail
    concept Ivo Nikkolo.

14
Baltika Lietuva shops
15
Why Mosaic?
  • Each item or object that we see has been pieced
    together from smaller pieces that connect with
    each other forming a whole entity.
  • On an emotional and personal level, each human
    being is an individual comprised of different
    ingredients - character, thoughts, behavior,
    upbringing, preferences etc.
  • Part of this individuality is clothing, which is
    an integral part of creating an impression.
    Clothing and the other components must harmonize
    to achieve equilibrium between outside and inside

16
Mosaic target customer
  • Age 35 years, majority of buyers should be
    30-40-year-old
  • MC client woman, man, a person with family
    (children) and encoded sense of loyalty and
    traditions
  • Occupation middle level manager, specialists
    (incl. private and public sector, doctors,
    teachers, white collar workers etc)
  • Mindset stability, conservativeness,
    responsibility, respect for traditions, but still
    professionally and socially active and searching
    for harmony both at work and personal life
    member of different professional and social
    organisations.
  • Need stylish clothing for feeling good at work
    and after 5 p.m.
  • Important style, quality and comfort

17
USP, differentiation and values
  • USP is built upon clients needs
  • stylish clothing for work at a competitive price
  • targeted collection
  • USP - contemporary stylish apparel for feeling
    good in the office and after 5 p.m.
  • Keywords style, comfort, quality
  • Values
  • Warm
  • Natural
  • Happy
  • Confident
  • Reliable

18
Mosaic launch
  • Objective
  • Keep the current clients and attract new clients
    to the stores
  • Strategy
  • 2006-1 transition period to connect CHR/Evermen
    to Mosaic
  • 2006-2 new brand communication

19
Communication Solutions for the transition period
  • Idea
  • Maintaining strong developmental linkage between
    the old and new names clearly demonstrating
    that CHR/Evermen is going to be Mosaic
  • Used
  • In retail outlets of the Baltika Group
  • In media channels (depending on the country)

20
Transition period communication in shops
  • Wall behind the cash desk
  • Stickers on the window
  • Plastic bags
  • T-shirts for sales assistants
  • Catalogues
  • Additional paper labels on every garment

21
Mosaic Shop During the Transition Period
22
Plastic bags
23
T-shirts
24
Catalogue (examples of different pages)
25
Additional label on products
26
Transition period communication in media channels
  • Prind advertisements
  • Outdoor
  • TV clip

27
Mosaic marketing communication
  • Objective to become a strong international brand
    in our own targeted niche and with our own focus
  • Very important shop environment, marketing
    communication and customer service (staff
    training set-based compatibility)
  • The customer is more conservative -gt lower speed
    of achieving desired results -gt need for better
    targeted channels and stronger communication
  • Image of styling brand Mosaic will help you
    look great advice for stylish wardrobe together
    with cosmetics, perfume etc
  • Style Editor styling advice through one person,
    stylist
  • Testimonials of the clients (famous and ordinary)
    local opinion leaders
  • Local strong co-operation projects
    (communities, forums, www, events) through local
    opinion leaders and by word of mouth
  • Marketing communication on different levels
    brand, market, city.

28
Mosaic development
29
Thank you!
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