BLONDE SALAD Harvard Case Solution & Analysis

Blonde Salad Case Study Solution


In the year 2009, Chiara Ferragni inspired from other bloggers started her own blog named as Blonde Salad, she wanted to turn her passion into the business and in the small period of time, she earned milestones, in the year 2011, her blog has the 70,000 daily visits.

In the year 2013, Pozzoli and Ferragni hired 28-year-old Alessio Sanzogni as the editorial and communication manager at Blonde Salad, he was hired to strengthen the celebrity’s image and Blonde salad’s image. Sanzogni saw that company needed a real strategic shift to acclimatize the changing environment. He has identified hour issues and Chair has to make the decision how to deal with these four issues.

The first issue was regarding the turning the blog into the fashion magazine, as it was right to expand its brand and revenue streams with this turnaround, she can separate her own brand with the company’s brand identity.(CHIANG, 2011)

The second issue regarding the marketplace of Blonde Salad, she had to determine either to open E-Commerce website or not.

The third issue was regarding the product differentiation, as Sanzogni was launching new products, it would increase the revenue streams for the company and it would also separate the brand identity of CFC with the Chiara’s celebrity.(Farhana, 2014)

The fourth issue was regarding the separation of products with the blog or folded in one company.

Now Chiara with her team has to make the final decision.

Issue 1

No doubt, with turning the blog into the lifestyle magazine, company’s revenue stream would increasein the long run, as in the short-run company would face some challenges such as not achieving the revenue target in the fiscal year 2014. Such challenges occurred because of shift in the target audience, as first company was accepting all offers from different brands to put their product on its blog, now with the new revenue model due to turning the blog into lifestyle magazine, company was only accepting offers from fashion industry as now its target audience changed from young girls to fashion insiders.

In today’s world, Brand management has become an issue for the organizations, as brand management plays an important in the success of any organization, if we talk about Blonde Salad, Chiara’s brand identity could influence the revenues streams of the company, as Blonde Salad was wholly associated with the Chiara’s brand identity, people were following Chiara’s personality, what she was wearing, where she was going.

Yes, thecompanyshould turn the Blonde Salad into the lifestyle magazine as It is the right time to expand its brand into the lifestyle magazine, thecompany has the resources and its team to turn it around. Lifestyle magazine would increase the revenue streams for the company and also target its specific target audience of fashion insiders.

Issue 2

Sanzogni has many criteria regarding turning the Blonde Salad into marketplace. But before this, first, they have to work on Blonde Salad lifestyle magazine. As they are trying to turn the blog into lifestyle magazine, so in my opinion, it is not the right time to turn the Blonde Salad into themarketplace. No doubt the idea is perfect, but implementation also plays an important role in the success of that idea. It is not the right time to implement this idea. First, let the lifestyle magazine grow, then it can turn the magazine into the marketplace. First, they have to look at the customer perception regarding the Blonde Salad lifestyle magazine, when it would create the image in the minds of theconsumer, then they can introduce Blonde Salad marketplace.

Now the question arises, how can Blonde Salad turn the lifestyle magazine in the marketplace, it can promote its E-Commerce website on its magazine and it can develop the long-term relationship with the luxury brands so that it ensures that their products are available on the Blonde Salad E-Commerce website.  It can face competitors like Net-a-Porter, it can give tough competition to Blonde Salad. By doing these, thecompany can achieve the Sanzogni’s criteria of providing the product that cannot find anywhere else and other criteria too.

Yeah possibly, some criteria cannot be met such as one of his criteria was that brand should be accessible to everyone, this criterion cannot meet as it would be a luxury brand and they also have to use the premium pricing strategy as per its image in the minds of consumer, so brand may not be accessible to everyone. This criterion can be ignored, as Blonde Salad has the image of theluxury brand so it could not target everyone, it has to identify its target and its needs and act accordingly.

Blond Salad should use warehouse as drop-shipping would create problems for the consumer and company as well, when consumer buys two products from different brands then there would be two different parcels shipped and when company shipped its products then the brand name of Blonde Salad would not be promoted, so company can open its own warehouse and shipped the product by themselves, this would allow company to promote its brand too while the shipping the product in its own shoppers. (Hovelaque, 2006)

Issue 3

Blond salad can use transitional internalization strategy, in which company can offer the core company products in all over the world and also produce new products by looking at the needs and wants of the consumer of that specific country. (Moore, 2003)

The company can also use the licensing strategy in the respective countries, through the licensing strategy, thecompany would license its designs, trademarks and brand names. This would allow the company to use its products in that specific country.

Licensing would reduce the risk of theproduct appearing on the black market as this would create the negative image in the minds of consumers.

The company can do its research regarding the biggest store in that country and it can close the deal with them, as this is a very famous shoe brand, with that deal, both the store and company get the benefits with that.

BLONDE SALAD Harvard Case Solution & Analysis


Pestle Analysis

Political factors

From the political factors, we can say that Oceania market is suitable for CFC to expand its business. The table shows that both countries have the stable government, that would be the positive point for the company to expand its operations. As businesses operate on forecasts and future scenarios, theunstable government can affect the forecast the company and increases its external risk.................

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