Brand Mix

Question four: Ralph Lauren - a meatball sandwich?

Your example of the Ralph Lauren outlets shows how important it is and how effective it can be when a company aligns its organization and marketing against a well-identified market demand. But Ralph Lauren didn’t use any new marketing techniques in the execution of this program and its products were, arguably, more average than its regular line. Is this an example of a meatball sandwich? Or how should we interpret this success?

Seth:

He definitely pioneered some huge innovations... the offprice fashion mall is now a multi billion dollar industry, largely due to their leadership. He figured out that there isn't always a connection between the price of your fabric or the cost of your stitching and what it's worth to the customer. In other words, that pony on the chest is worth a great deal if the product itself is 'good enough'. It's not up to you or to me to say what 'average' is. In this case, it was WAY above the quality and cachet I could get from a competitor. Even better. the tone of the stores was just right... not too tacky, not too upscale.