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Principles And Practice Of Marketing-Ppm

2. Introduction - Principles And Practice Of Marketing-Ppm

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This business report aims to highlight the term “PPM” (Principles and Practice of Marketing). Marketing is a critical business function for both profit and non-profit businesses. Marketing is a broad term that includes product designing, marketing research and development, promotion, customers, etc.

In this business report, the focus will be given on the current marketing scenario of Hugo Boss, UK. More specifically, this report will include the critical analysis of positioning and segmentation strategies that Hugo Boss has been following for the last three years in the UK.Additionally, in this report, the focus will also be given to how the marketing mix strategy has helped to underpin the positioning of Hugo Boss in the UK market.

The second section of this report will highlight the core findings of Hugo Boss, the UK's marketing mix strategy in alignment with the Taught theory and model. 

Lastly, this report will include a critical evaluation of the effectiveness of marketing efforts that Hugo Boss has been used to position the brand in the UK fashion market.

2.1 Reflection on the company -Hugo Boss

Hugo Boss AG, most commonly known as Hugo Boss, is a European fashion company headquartered in Metzigen, Germany, Europe. Starting from fashion accessories to footwear, clothing to fragrances- Hugo Boss deals with a large variety of fashion products and sartorial. Hugo Boss is one of the leading brands in the premium segment of the global apparel market and the UK fashion market. As per the company report, in 2019, the company has been marked as one of the largest German clothing companies and brands, with global salesof 2.9 billion euros (Uk.globaldatabase.com. (2022).

 In the UK, on an ordinary 1000 people are currently associated with the HugoBoss, UK. as per the report of the company in the financial year of 2019-20, the total turnover rate of the company in the UK market was £146 million, a 5.4% of increment than the previous year. At the same time, the company’s gross profit went up by 1.9% in the financial year 2020 (Hugoboss.com. (2022).

(Figure 1: Total Employee Count of HUGO BOSS in the UK, 2019)

(Source:Uk.globaldatabase.com. 2022)

(Figure 2: Financial data of HUGO BOSS, UK, 2020)

(Source: Uk.globaldatabase.com. 2022/)

According to the 2020 report, Hugo Boss, UK's total asset value was 46.5 million with a working capital amount of 4 million andatotal liability of £7 million. Considering these facts and figures, it can be assumed that around one thousand employees who work for Hugo Boss in the UK are always ready to offer the best to the customers, from collection to service- the Boss and HUGO’s women and menswear not only restricted in the casual outfit or business wear categories or athleisurewear but also it includes elegant wears for the special occasion. The company claims that “no matter what the day is, the customer will dress perfectly for every situation and occasion” (HUGO BOSS Annual Report (2020).Due to its extensive presence in the global and UK fashion market, it has been observed that the brand has used b and all-embracing marketing strategies to stay in front of its competitors.

3. Discussion on Positioning of Hugo Boss, the UK in last three years

(Image 2: Positioning Strategy of HUGO BOSS, UK)

(Source: Hugoboss.com., 2022)

Considering the overall business scenario in the past three years for Hugo Boss in the Uk fashion market, it can be evident that the brand has some unique features for positioning.

  1. Digitization, casualisation, and the sustainable constitutive power of overreaching the industry trend
  2. Focus on proper execution of strategic priorities in alignment with future growth
  3. Development of measurable, achievable and specific business objectives- are the primary criteria for long-term success for the brand (com. (2022)

The vision of HUGO BOSS in the UK is “to become of the most desirable fashion brand”. And HUGO BOSS has positioned itself in the premium segment of the UK apparel market.

For positioning the brand in the UK high street and premium fashion industry, HUGO BOSS has been following three guiding principles in the past three years:

  • Putting the customers at the core of all business activities
  • Follow the sustainable business strategy
  • Leverage all the opportunities along with innovative digital solutions,
  • Developing a skilled team and talents for the company.


Considering the last three years’ target market, it can be seen that HUGO mainly targets younger and fashion-conscious customers. Boss offers business wear and refined casualwear collection. Therefore, the target market for BOSS is the UK’s sophisticated customers (Nast, 2022).

Considering the segmentation of BOSS, the brand used to segment its targeted customers based on psychographic status. Or more specifically, BOSS has segmented its target market based on the following psychographic rate of the customers:

  1. Status-oriented
  2. Rational-minded
  3. Prefer classic yet modern and high-quality fashion apparel
  4. Prefers quality and fit over cost

(Image 2: The BOSS-show in the UK- Brand Positioning strategy)

(Source: Nast, 2022)

Therefore, BOSS has positioned its brand in the Upper premium segment, characterised by high quality, superior materials and precise design product ranges. Additionally, BOSS has invested ina “value-for-money” proposition for its products in the UK high-street fashion market. Further, to position the brand in the premium apparel segment market of the UK, BOSS has followed the entry-level pricing” strategy for brand positioning (Soares, 2021).More specifically, in the UK, with the presentation of the Spring and Summar collection in 2020, BOSS has positioned its brand through the entry-level price range of the upper premium segment.

Additionally, from 2019 to 2021, the brand has focused on numerous events and campaigns to position the Brand. The brand has presented its menswear and apparel for unisex in the BOSS Fashion Show, UK. additionally, BOSS runway Collection in 2021 was another strategy that the brand has used to position itself in the UK premium fashion market segment (Nast, 2022).

Unlike BOSS, HUGO mainly targets the younger and more-fashion conscious millennials. Considering the psychographic segmentation, HUGO mainly segments its customers based on their personality, open-mindedness, individuality and spontaneous like to shop. HUGO specifically targets the younger and fashionable customer base who are inclined to progressive design and clear fashion. Like BOSS, HUGO has positioned the brand in the UK’s premium fashion market segment. HUGO also follows the entry-level pricing strategy to position the brand. And the price of HUGO is 30% lower in the UK than BOSS (Virtualhumans.org. (2022).

The pronounced positioning strategy of HUGO includes events and campaigns. In 2021, HUGO BOSS came up with the Russell Athletics capsule collection. With the presentation of the physical exhibition in Millan, HUGO has positioned the brand on social media platforms and in the UK’s premium fashion industry.

(Image 3 : HUGO BOSS Largest Fashion Week in Millan)

(Source: Wessel, 2022)

4. Critical analysis of four elements of the Marketing mix about Hugo Boos, UK

4.1 Product

Product is the central area of all the marketing activities, so an effective product mix is very crucial to establishing a b positioning within the targeted marketplace (Dörnyei., 2020). HUGO BOSS is a luxury fashion and accessory brand. The brand has a number of categories of products in its marketing mix in the UK. The main product categories of the brand are as follows:

  • Cloths: HUGO BOSS offers a big selection of apparel for men, women and unisex. Hugo and Boss are the two primary brands under which their clothing range is separated. They are then divided into four separate divisions, each with a different target audience, including Boss Black, Boss Orange, Boss Selection, and Boss Green. Hugo is more on the fashionable side, while Boss, as the primary brand, concentrates on the stylish brand character.

Image 4: HUGO BOSS Spring-Summer Collection 2021

Source: https://www.gq-magazine.co.uk/)

Fragrance: the fragrance segment of HUGO BOSS is highly popular in the UK and also globally. The brands offer a large variety of premium perfumes which are offered in stylish ballots, perfectly providing a luxury feel to the customers.

Image 5: HUGO BOSS Fragrance Range

(Source: Hugoboss.com., 2022)

Accessories: The HUGO BOSS brand also sells hats, watches, wallets, watches, belts, and other accessories

Image 6: Hugo Men accessories

(Source: Hugoboss.com., 2022)

Hugo plays in the luxury section of the fashion market, and it ensures that its products give a premium feel to its customers. Personalisation is one of the major product strategies of the brand under its ultra-premium segment. The brand offers customised apparel and accessories, which effectively allows the brand to establish a premium and personalised impact on the customers. The customised segment of the brand has become a favourite gift option to the targeted audience.

Image 7: HUGO BOSS Unisex customised clothing

(Source: Hugoboss.com., 2022)

Through its customised product offering, the brand tries to directly provide the customers with a sense of establishing its identity, which reflects its 'dare to be you' campaign, as shown in the image 7.

The packing strategy is highly crucial in terms of branding. The sustainable packing strategy of HUGO BOSS enables it to position itself as a sustainable brand. The brand uses FSC®-certified papers for packaging. Besides that, the packing is effectively designed to reflect the richness of the brand. The effectively designed labels of HUGO BOSS show the authenticity of each product and also mark its product branding.

Image: HUGO BOSS Packaging

(Source: Hugoboss.com. (2022)

In the product offering of HUGO BOSS, the presence of the Product life Cycle is quite evident. The Product Life Cycle theory states that every product has a life which goes through four stages introduction, growth, maturity and decline. The products HUGO BOSS introduced a focus on a market trend (Kotler et al., 2019). For instance, the 'Dare to be you' unisex apparel range is designed focusing on the LGBT rise, which is presently in a growth segment were actively creating fashion statements. Soon new fashion trends arrive in the market, and it reaches their maturity stage and then decline.

4.2 Price

HUGO BOSS has been created for a high-end, premium customer segment that is highly inclined towards fashion. The brand follows the premium pricing strategy, which has been designed to serve its targeted niche. Premium pricing strategy is about setting the price of the products significantly high compared to the market average for strengthening the perceived quality and establishing a luxury brand image. The pricing strategy of HUGO BOSS is effectively aligned with its generic strategy of Differentiation-Focus, which is the strategy for gaining a competitive edge in which a business tries to outperform its rivals by providing a product that consumers believe to be superior to those of rivals despite costing more (Bai., 2018). By using this tactic, the business concentrates on a limited market and aims to appeal to a specialised niche. Differentiation-Focus is a strategy for gaining a competitive edge in which a business tries to outperform its rivals by providing a product that consumers believe to be superior to those of rivals despite costing more. By using this tactic, the business concentrates on a limited market and aims to appeal to a specialised niche.

To HUGO BOSS, the appeal of its brand is of the utmost significance. HUGO BOSS' brand managers are aware of the significant value add their brand provides in terms of luxury, and they are also aware that customers are willing to pay a premium for it. Hugo aims to keep up the appearance of exclusivity while providing its clientele with opulent service. HUGO BOSS targets the correct audience at the right time because the pricing of their products correlates closely with the areas in which they operate.

4.3 Place

In terms of place and distribution, the brand adopted the exclusive distribution strategy; under this distribution strategy, brands partner with very limited distributors so that the products are being sold in defined locations (Mitterfellner., 2019). HUGO BOSS is a luxury brand, and its products are not for everyone. In order to ensure its exclusivity, the brand adopted the exclusive distribution strategy. To accommodate the purchasing habits of HUGO BOSS customers, the brand is methodically harmonising its distribution. The brand is distributed through the Group's own retail and wholesale operations, which operate both online and offline. In the market segment of the UK, HUGO BOSS has a significant presence. The brand has stores in major prime locations of the country, including London, Hounslow, Manchester, Nottingham, Southampton, Glasgow and so on.

Image 8: Location of HUGO BOSS stores in the UK

At the present time, HUGO BOSS is giving a huge focus on its online distribution channel. The brand effectively utilises the potential of its online store https://www.hugoboss.com/uk. Besides that, the brand is also making its product available on popular e-commerce sites like Amazon, eBay and so on. Building a b hold on the omnichannel distribution channels, including retail, wholesale, digital and licensing the brand to ensure a seamless brand experience across all the customer touch points (HUGO BOSS Annual Report., 2022)

Figure 3: Expected distribution channel growth of HUGO BOSS by 2025

(Source: HUGO BOSS Annual Report., 2022)

4.4 Promotion

In the present market environment an engaging and consistent promotional strategy is one of the prime requirement for every brand (Craig et al., 2017).HUGO BOSS utilises both traditional and digital platforms of marketing to ensure its positioning in the high-end fashion market. The brand has been promoting and sponsoring both Big Fashion events and Dynamic Sports events all over the world for many years. The majority of HUGO BOSS's clients are affluent or business-class clients who are difficult to reach. HUGO BOSS, therefore, places advertisements in upscale publications where the brand may draw attention.

Image 9: HUGO BOSS SS20 Fashion Show, London

(Source: Hugoboss.com.,2022)

The company also used testimonial-based marketing, interviewing its most valuable clients. To keep this momentum going, the brand sponsors a number of elite events, including Formula One, sailing competitions, and golf championships. The brand actively promotes such actions through digital platforms in order to enhance its brand awareness and engage its customer base (Chaffey and Ellis-Chadwick., 2019).

In terms of digital marketing, the brand holds an engaging content strategy under which it utilises the major social media platforms like Facebook, Instagram, YouTube, and Twitter and so on. For the launch of its Spring/Summer collection 2022, the brand actively promoted the social media campaigns #HowDoYouHUGO and #BeYourOwnBoss. HUGO BOSS makes the globally popular K-pop star Big Matthew the face of the #HowDoYouHUGO campaign. In order to make the campaign successful, the brand utilises influencer marketing with the celebrities like Hailey Bieber and Kendall Jenner. Besides that, the brand is actively engaging popular social media influencers to further spread the campaign.

Image 10: Big Matthew, the face of the #HowDoYouHUGO campaign

(Source: Hugoboss.com. (2022)

4. Evaluation of Marketing Efforts of Hugo Boss, UK(Word: 614)

When evaluating the marketing efforts, the focus must be given to the key performance indicators of the brand (Roth, 2022). Considering the marketing report of HUGO BOSS, the KPI of the brand are as follows:

  1. Be sustainable throughout
  2. Empowering the people and society
  3. Rigorous execution

HUGO BOSS, being one of the popular fashions brands in the premium fashion segment of the UK and across the world, the brand follows five-claim strategies:

  1. Boost the brand
  2. Product is king
  3. Be digital and customizable
  4. Rebalance omnichannel
  5. Organize for growth

To meet the KPIs, the brand used to invest in promotional marketing. In 2021, the brand launched a “star-studded” BOSS Campaign as a part of organisational branding activities. This has helped the brand to increase its Instagram followers to a considerable extent (Roth, 2022).

(Image 11: HUGO BOSS Fashion Campaign)

(Source:Group.hugoboss.com. 2022)

(Image 12: HUGO BOSS-Social Media Influencers-star cast)

(Source:Group.hugoboss.com. 2022)

(Image 13: HUGO BOSS Instagram Post on #BeYourOWn Boss campaign)

(Source:Group.hugoboss.com. 2022)

With the fashion campaign in 2021, HUGO BOSS has gained more than 30 million views on its YouTube channel. This branding strategy has helped HUGO BOSS to get record-breakingresults. With 15 billion impressions within 5 weeksand more than 800 million engagements within 5 weeks (Group.hugoboss.com. (2022).

HUGO BOSS also invests in celebrity endorsement, where the brand hires social media influencers to increase its marketing effectiveness. For example, for the #BeYour OwnBoss campaign, HUGO BOSS has approached Imma and Nobody Sausage. For this campaign, both posted a picture wearing BOSS hoodies on Instagram. These two posts have gained 27,300 likes with 238 comments (Unmetric. (2022).

(Image 14: Instagram post of Imma for HUGO BOSS)

(Source:Virtualhumans.org. (2022)

(Image 15: Nobody Sausage post for HUGO BOSS on Instagram)

(Source:Virtualhumans.org. (2022)

The below image will demarcate the actual image of HOGO BOSS among the mindset of its customers.

(Figure 4: Consumer Perception graph for HUGO BOSS)

(Source:Roth, 2022)

How consumers perceive a brand is an essential KPI to measure the marketing effectiveness of that particular brand. As per the data, compared to other brands in the UK”s Premium fashion segment market, the brand perception of HUGO BOSS among its consumers is 50-79% which is positive. Additionally, the brandcarries b dominance (69%) and perceives as masculine (Phau et al., 2021).

As per the below flower graph, the brand contains both positive and negative attributes, the five positive attributes associated with HUGO BOSS are:

  1. Cosmopolitan
  2. Suave
  3. Keen
  4. Fashionable
  5. Masculine

Additionally, a b presence on social media platforms like YouTube, Instagram, Twitter and Facebook have given b brand positioning and indicates the brand's marketing effectiveness.The totalnumber of followers of HUGO BOSS on Facebook, UK is 179,11, with an average engagement in the Instagram profile of 350. Additionally, every post of HUGO BOSS used to get 165,15 average likes with 1481 likes per post (Piehler et al., 2021).

(Figure 5: Flower diagram for positive and Negative Attributes of HUGO BOSS)

(Source:Roth, 2022)

On the other hand, the negative attributes of HUGO BOSS are high price, premium segmentation, relentlessness, and viciousness.

(Figure 6: HUGO BOSS Social Media marketing size)

(Source:Unmetric. 2022). 

Considering all the facts and figures, it can be concluded that, being one of the largest premium fashion brands, HUGO BOSS is successful enough in marketing effectiveness. As per the Instagram followers number or graphs and charts, the brand successfully met its KPI. Though, the Brand needs to diversify its product ranges from menswear to womenswear, as the brand is more masculine. Additionally, the brand may shift its focus from a premium pricing strategy to product-based cost strategy to target millennials from middle-income brackets.

6. Conclusion

In this portfolio report, an attempt has been made to critically evaluate the marketing mix operation of the luxury fashion brand HUGO BOSS. The brand has effectively positioned itself in the UK luxury fashion market. In this report, the four marketing mix element, product, price, place and promotion has been taken into consideration for evaluating the marketing mix of HUGO BOSS. The brand is a premium brand and it has significantly designed its product mix ensuring the perspective of its niche customer segment. The premium pricing strategy enable the brand to get effectively implement its differentiation-focus strategy. In terms of distribution the brand holds an Omni-channel strategy under which it effectively utilising all its distribution channels including retail, wholesaler, digital and licensing. Finally the promotional mix of the brand is highly focused. The brand uses the traditional platforms like high-fashion magazine advertising along with it effectively utilise the digital platforms for running digital media campaigns.


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