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Market and company analysis of Armani Exchange

Paper Type: Free Essay Subject: Marketing
Wordcount: 1325 words Published: 1st Jan 2015

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Armani Exchange is private company owned by idol designer Giorgio Armani dealing in the industry of fashion and leisure. Armani Exchange was launched in the United States in 1991. The brand is known for its provocative advertisement campaigns and popularity among young Hollywood pop culture celebrities which expended throughout young males and females across the world. Armani Exchange designs, manufactures, distributes, and retails fashion and lifestyle products, including apparel, accessories, eyewear, watches, jewelry, and music. The brand is inspired by “street-chic” culture and fashionable dance music which derived from European styles and is constantly gaining popularity among Americans. Armani Exchange is both the most “accessible” as well as most affordable among all Armani brands where almost all products are priced below one hundred dollars.

Company Goals:

Armani Exchange was launched in 1991 in the United States has become to be one of leading fashion brands in the world today.  With 140 stores worldwide, Armani Exchange is aggressively expanding its vertical retail network in the United States and internationally. Its key markets that include the UK, Brazil, Argentina, Mexico, Korea, Japan and China.

Our company goal is to expand the Armani Exchange Brand to India’s exponentially growing middle class. India is a country located in South Asia and is basically a peninsula, with the Arabian Sea on the west, the Bay of Bengal on the east, and the Indian Ocean to the south. India has the second largest population on earth, just behind China. It represents just over 15% of the world’s population. Its Major cities include cities include, New Delhi (7 million), Mumbay (14 million), Calcutta (11 million), Madras (6 million), Bangalore and Kanpur.

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Armani Exchanges key markets are all growing consumer economies with a growing middle class. India is currently on the rise with an exponentially growing middles class that moves ahead of these countries. Evidence shows that as income increases, the amount of discretionary spending increases. For corporations and private companies such as Armani Exchange, the middle class in India presents a significant business opportunity.

Description of customers and their needs:

India at one point was a very conservative and religious country. Although still at some parts it remains the same, the society especially the young generation is adapting to western and European culture. In the past the traditional Indian dresses and men’s suits have been changes with t-shirts, jeans, sneakers, and fashionable coats. Fashion in India is has become to be a lifestyle and Armani Exchange is the brand to fulfill the costumers wants for high end stylish clothing for an reasonable price the middle/upper class can afford.

Target Market:

Armani Exchange is a brand focused on the young generation who are outgoing fun and proudly represent the brand. The target costumer is “contemporary, focused, modern and fast”. Armani Exchange is not for everyone. It is targeted towards young man and women whose ages vary from 18 to 32 years old. The Armani Exchange brand represents young, urban and sexy fun outgoing people who go out at night to clubs and are very social. Music culture is an important part of the brand and is reflected by the men and women who wear the brand. Currently in Mumbai, India (financial capital of India); 37% of the population are ages 18-32 and 49% of the young business that travel to Mumbai are in the same age group as well.


Armani Exchange is a high fashion brand whose apparel and accessories have been proven to be one of the most sought after brands in the world.

The following products are sold by Armani Exchange are:

Apparel (denim, tops, outwear, etc.)

Accessories (hats, scarf, belts, etc.)






Armani Exchange is the accessible as well the most affordable Armani brand. Armani Exchanges moderately prices with most products priced under $100. Armani Exchange is currently operating in 14 countries. Because every country has a different poverty/ middle class rate, Armani purposely prices their products based on the average upper/middle class in every country. The average salary for people living in Mumbai, India (our future location) is $2000 per month. This shows that prices need to be a little lower than in the U.S market however there is still a substantial profit margin to be made. This makes our products globally known and holds a competitive price against other high fashion brands.

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Armani Exchange designs, manufactures, distributes all of its products as well as owns 100% of its retail locations. Armani holds it’s headquarters in Milan, Italy (fashion capital of the world). In order to make Armani Exchange the most affordable Armani brand, the products had to be manufactured outside of Italy. Currently 100% of the products are made in China, India, and Brazil. Because the products are made in India, shipping costs and imports taxes, quotas, and fees are eliminated. This lets the company lower prices and maximize revenue. Opening a store in Mumbai, India would potentially be a success because of the rising economy, the highly populated area, middle/upper to poverty ratio, and target market.


Advertising is the most important aspect of bringing a business to a foreign country. The name “Armani” is an international icon that practically everyone knows. We conducted 1675 surveys in Mumbai towards our target market. When we ask our volunteers if they were familiar with the Brand “Armani”, 97.5% answered yes. The second questioned we asked was “would you be interested in owning Armani apparel?” 92.7% answered yes. This shows that Armani Exchange would be a brand that brings interest to our potential customers.

The ad-campaign will be constructed of 4 different areas which are television commercials and billboards, free music downloads Magazine advertisements, and 3D campaign. We will run advertisements on the channels like MTV India in order to get the most exposure to our target market. We will post billboard of models wearing our brand across the city as well as on buses to attract the customer’s attention wherever they are at all times. Music is a big part of the brand. The Armani Exchange store will have a music station that an iPod can hookup to. Every week, a customer can download 2 new singles for free. This attracts costumers and will give a unique feature to our store that no other offers.

The newest for of advertisement the will put us above everyone else is our brand new 3D campaign. Armani Exchange will be the only company in the world to advertise with such concept. The 3D advertising campaign will run online. The magazine spreads will be equipped with a pair of 3D glasses. These ads will direct readers to a specially designed 3D page on the Armani Exchange website where users will be able to view an exclusive 2D and 3D music videos. This concept will give Armani Exchange a very exclusive and unique style that differentiates the brand from others.

What makes us different?

Armani exchange is a very unique and different brand like no other. The brand is inspired by “street-chic” culture and fashionable dance music which derived from European styles. Our advertising campaigns and store features differentiate from “average” to “above and beyond”. The music station and live disc jockeys playing on weekends and holidays really gives the costumer what the brands represents the vibe it gives which is young, urban, sexy, and fun.

Store concept:


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