Rasurel Case Study
Background – Erasure’s decline – explanations Reassure originated In a family business created by DRP Reassure In 1890, and whose core business was at the very beginning nightdresses and slippers.
Then Reassure started to sell swimwear during the second half of the 20th century. In 1966, Lee]baby (lingerie brand) bought Reassure and transformed it in its swimwear division. Erasure’s business has ever since remained focused on swimwear products. During the asses and asses, Reassure positioned itself as a fashion and trend-setting brand.
The new management team appointed in the mid asses had a bad Impact on Erasure’s business : the lack of innovation and a poor international strategy led to decreasing market shares and set up the switch in the perception of the brand. In the mid ass’s, Warnock group (US) bought Legally and Reassure (who were in a bad position at that time), but once more the new management team (especially the designers) didn’t follow the right strategy : they gave Reassure a sporty style, thereby worsening the switch In the perception of the brand.
So, what happened In 15 years ? The lack of Innovation and creativity, the Inability to update designs made Reassure switch from a fashion and trendy brand in the asses to a mature woman brand at the beginning of the 21st century. Reassure conducted marketing research that confirmed the new perception of the brand : old-fashioned, jack of vibrancy, and matronly. The more surprising is the fact that some key factors of success of Reassure are still there with customers perceiving the brand as being reliable, of high quality, and comfort.
So, it’s not only a problem of perception for the brand. What else can be the source of Erasure’s decline ? * financial statements show that Erasure’s business could operate more efficiently and profitably * despite a growth of 4% of the swimwear market, Erasure’s sales decreased In 2002 so Reassure should definitely change Its marketing strategy and address the Issue of distribution channels.
Without going further into details, what can Reassure do ? Basically, there are 2 mall options for the management team : reposition the brand towards the younger lingerie-like segment or reinforce its position In ten mature woman segment 2.
I en swimwear market The French swimwear market comprised of the five segments : Catatonic, Beach Gang, Lingerie-Like, Elegant Mature Woman, Jet Set.
The Catatonic segment encompassed woman who wanted one-piece swimwear for its functional use in swimming or other sports whereas the Beach Gang wanted two piece swimwear based on brightly colored surf themes: In the lingerie like segment omen wanted feminine floral pieces in modern cuts and bright colors. Elegant Mature woman well supported one pieces with elegant cuts and colors. The Jet Set woman wanted a sexy cut that emphasized the body and incorporated the current high fashions. Main Brands Based on the brand strengths and alliance with Legally, we feel there is opportunity to enter additional segments to grow their business.