Explain how Armani uses its brand portfolio approach to maintain profits during recessions
What will be an ideal response?
Armani differentiates its product line into three tiers distinct in style, luxury, customization, and price. In the most expensive, Tier I, are Giorgio Armani and Giorgio Armani Privé, custom-made couture products selling for thousands of dollars. In Tier II are Emporio Armani — young, modern, more affordable styles — and Armani jeans. In lower-priced Tier III are youthful and street-savvy versions, A|X Armani Exchange, sold exclusively at 268 retail locations. Each extension lives up to the Armani brand's core promise without diluting the parent's image. But clear differentiation minimizes consumer confusion and brand cannibalization. During slow growth, the lower end picks up the slack and helps maintain profitability.
You might also like to view...
Which one of the following is not a key condition indicating doubt about a client's ability to continue as a going-concern?
a. Adverse key financial ratios. b. Employee strike that halts operations for several months. c. Company has not paid dividends to date. d. Default on bank debt.
Refer to the following selected financial information from Gomez Electronics. Compute the company's debt-to-equity ratio for Year 2. Year 2Year 1Net sales$478,500 $426,250 Cost of goods sold 276,300 250,120 Interest expense 9,700 10,700 Net income before tax 67,250 52,680 Net income after tax 46,050 39,900 Total assets 317,100 288,000 Total liabilities 181,400 167,300 Total equity 135,700 120,700
A. 0.75. B. 1.75. C. 2.34. D. 1.34. E. 2.63.
The structure of AdVance's business model—formulating custom fertilizers for customers—relies on which of the following sales models?
A) partnering B) persuading C) cobranding D) body language E) transactional selling
Which of the following facts is NOT a reason that listening can be challenging?
a. The human ear is unable to keep up with the speech rate of most speakers. b. Our minds process much faster than a speaker can talk. c. The listener often thinks ahead to anticipate future points and evaluate the ideas heard. d. Listeners often make written notes as they listen.