Mavi: Fashioning a Path to Brand Growth

By: Jill Avery and Gamze Yucaoglu

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Synopsis: Mavi, a leading Turkish apparel retailer, had sales of $419 million in 2015, up 20%. Growth rates like these were becoming routine at Mavi. But, the path to growth was getting more challenging, and Turkven, Mavi's private equity partner, was planning its options after seven years of investment. There were four growth levers Mavi could pull, but each involved selecting one growth path while neglecting another. Should the company invest in growth domestically or internationally? Should they change the price positioning of the brand to move up-market or down-market? Which value proposition offered the most future promise: functional differentiation, lifestyle differentiation, or celebrity endorsement? Should the company continue to serve both men and women of all ages or were there specific consumer targets that offered the most promise? Managers realized that these choices would not only determine the company's short term growth trajectory but also shape the longer term value of the Mavi brand.