Brands & Branding and Private Labels Case Study

Alessi: Managing Brand Equity at the Italian Design Firm

OR

Abstract:
In early 2004, Alberto Alessi, general manager of Alessi S.p.A - the Italian, family-run, kitchen and tableware factory - famous for its playful and innovative design is absorbed about how to manage Alessi's brand equity. Alberto needs to optimise a set of objectives, subject to certain constraints. The objectives are: (1) to bring Alessi's range to masses or in other words, how to enhance and build more luxury into their brand at every price point it offers; and (2) to find new typologies into which Alessi can expand. The constraints are: (a) to sustain the aura of quality and innovation surrounding Alessi; (b) to provide Alessi's designers with the opportunity to take risks and innovate, staying close to the borderline.

The main objectives of the case are to grasp the key issues involved in managing brand equity and thus the focus is on various issues, faced by a luxury goods firm, like Chinese counterfeits, branding strategy problems, production planning problems and so on. The case also provides various possible options such as 1) whether to engage the Chinese manufacturers 2) extending brand both line- and category-wise 3) going for patenting actively 4) consider a change in the business model and so on.

The case prepares a rich ground to discuss critical issues in the strategic brand management of fashion and luxury goods. In particular, it illustrates how Alessi has managed to grow, without losing its core identity and its customer value. It is also meant to evaluate Alessi's brand strategy using the brand equity approach.

Pedagogical Objectives:

• The Alessi case is written to serve a number of purposes in a course on Strategic Brand Management. Specifically it can be used to:
• Highlight the importance of brand equity approach
• Define and illustrate brand equity for Alessi
• Evaluate the relative importance of various elements of brand equity that provides value
• Demonstrate how the value that has emerged from various environmental factors have enhanced brand Alessi
• Manage brand equity - how should it be leveraged and protected in the face of various threats; how should it be exploited?
• Raise questions and suggest issues for strategic brand management, in the case of Alessi.

Keywords : Alessi, Italy, Kitchen and tableware, Strategic brand management, Create and sustain brand equity, Home luxury goods, Family-owned businesses, Design-driven innovation, Clusters and strategy, Brands & Branding Case Study, Perceived quality, Brand associations, Democratisation of luxury, Focused low-cost strategy