Natuzzi, Nicoletti pursue 3-tier strategies
By Joan Gunin -- Furniture Today, May 22, 2006
High Point — Italian leather upholstery producers Natuzzi and Nicoletti have both incorporated three-tiered brand strategies into their lines.
Natuzzi, with a good-better-best strategy already in place, broadened its high end at market with the limited launch of its top-of-the-line Pasquale Natuzzi Collection, named for its founder and CEO. The company also offers the promotional Italsofa and mainstream Natuzzi brands.
This summer, the Pasquale Natuzzi Collection concept will be tested at a Bloomingdale's store on Long Island, New York, and at The Trend House at Marshall Field's in Chicago.
The line will have its own team dedicated to brand positioning, organization, training, product assortment and distribution. The high-end product is designed and manufactured in Italy.
Nicoletti launched its three-brand strategy at market.
"The creation of three brand identities allows us to be very focused, to have separate pricing tiers and to concentrate on specific customers," said Marketing Manager Cosimo "Mimmo" Cavallo.
Sofa Art by Giuseppe Nicoletti is the promotional brand geared to high-volume chains. Three-piece sofa, loveseat and chair packages in this category retail from $1,499 to $1,999.
In the middle is the Nicoletti brand, for department stores and independents, offering three-piece sets from $2,199 to $2,499 retail.
At the high end, is Suite Evolution. Targeting specialty boutiques, the new Italian-built line has no price ceiling — sofas in this collection can be $6,000, the company said.
