Post on 26-Jan-2017
2©Unity Marketing, 2016
Former Harvard University Professor, and now Professor Boston University, Juliet Shor introduced the ‘lipstick effect’ theory in her book
entitled The Over Spent American (1999). Her thesis:
Consumers will buy higher-priced, more prestigious lipsticks, specifically Chanel, that are used in public, vs. lower-priced, less
prestigious brands that are used in privacy of the bathroom. Further in times of economic troubles, consumers will indulge in ‘little’ luxuries, like
Chanel lipstick, instead of expensive luxuries, like Chanel suits or handbags.
Adding supporting evidence of the ‘lipstick effect,’ Leonard Lauder confirmed that sales of his company’s lipstick rose after 9/11 terrorist
attacks in a New York Times article published May 1, 2008.
Premise #1
Is luxury purchased primarily for status & prestige?
ONLY SOME PEOPLE
Premise #2
In times of economic turmoil & uncertainty, do consumers opt for ‘little luxuries’ rather than ‘big luxuries’?
YES!
3
©Unity Marketing, 2016
Same food served in different ways creates vastly different customer experiences and vastly different results.
Creating heighten expectations of a fine-dining experience creates the impression that people got fine-dining quality food. They rated the food very high.
The exact same food served without those fine-dining expectations resulted in the very same food getting a much lower rating.
Dr. Brian Wansink is the John Dyson Professor of Consumer Behavior at Cornell University, where he directs the Cornell Food and Brand Lab.
He studies how people’s perceptions about food impact their behavior around food.
6
©Unity Marketing, 2016
Old Style New Style
Luxury Has a Brand New Style
High negatives• Conspicuous consumption• Indulgence• Exclusivity• Elitism• Extravagance• Wealthy 1%
Luxury for the Rest of Us• Practical• Functional• Inclusive• More affordable• Democratic
©Unity Marketing, 2016
9
10
“Luxury is just a marketers’ term that means something is overpriced and too expensive.”
Calling a brand ‘luxury’ doesn’t necessarily make it so
Use the ‘L-Word’ with extreme caution!
©Unity Marketing, 2016
Luxury for Me
Luxury isn’t about you, and what you think, but about me and who I am
©Unity Marketing, 2016
11
Sport watches (FitBit, Ironman, ShinolaRunwell) are the new ‘anti-status’ symbol, that say not about how much watch I can afford (e.g. Rolex) but who I am and what I need my watch for.
Heard in recent focus group with millennials, “The initials after my name are my status symbol.” Consumers are
looking for new meaning beyond traditional status symbols.
Status symbols reflect elitism, snobbishness, one-upmanship.
Anti-status status symbols tell you about me.
©Unity Marketing, 2016 12
For Dr. Perricone
beauty the luxury is on
the inside not on the
outside. And the
positioning of the ‘no
foundation foundation’
is about the luxury of
beautiful skin for the
wearer, not the
beholder.
©Unity Marketing, 2016 13
Luxury of Discovery
Thrill of discovery invites customers to spread the word –Discovery anchors your most powerful marketing tool: word-of-mouth
©Unity Marketing, 2016
14
Exclusive etailer
Project Gravitas got
started doing the one
essential LBD in 8
different ways for
every body type.
Thrill of discovery
gave women
something to shout
about and share with
friends.
©Unity Marketing, 2016 15
Who knew ground up
rocks could provide
such good coverage
and be so good for
your skin?
It was a
revolutionary idea
that had to be
shared.
©Unity Marketing, 2016 16
Luxury of Simplicity
Today, more than ever, the KISS principle -- Keep It Simple Stupid! – is valued. Embrace the concept of simple elegance.
©Unity Marketing, 2016
17
Everlane presents a
new style of luxury at
very un-luxury prices
Online-only Everlane
sophisticated, basic
styles with high-end
fabrication priced way
below retail
Brand story telling
explains how Everlane
can price so low
©Unity Marketing, 2016 18
Glossier doesn’t call
its three-phased
approach to beauty
‘luxury,’ but it asks
its customers to tell
what luxury is for
them.
©Unity Marketing, 2016 19
Kiehl’s sells simplicity itself – simple product, simple ingredients, simple packaging – and extraordinary results. The label spells out Crème de Corps point of difference with quality ingredients. The simple bottle announces the luxury is inside the bottle, not what’s on the outside. It’s prominent “since 1851” heritage says a brand that has been around that long must be doing it right.
Copyright Unity Marketing, 2016 20
The label makes this simple elegant promise:
“Continued use for 10 days will provide a
skin texture heretofore unattainable”
21©Unity Marketing, 2016
Beauty brands need to deliver meaningful luxury to the customer, which is all about the enhanced, special experiences they offer.
Today’s consumer marketers face an increasingly competitive environment with many business and marketing challenges.
Unity Marketing leads with research to help businesses gain insights into their core customers and their best target customers – the affluent who have discretionary income to spend.
Affluent Consumer Tracking Study Two waves
Spring Shopper Track
Fall Product & Services Track
Consumer Gifting Study In-depth investigation into gift choices and shopping
behavior among middle-income to upper-income consumers.
Special investigation into how consumers use the internet for their gift research, planning and buying needs.
Survey completed April 2015 (n=1,649 consumers HHI $97,900)
Art, Framing & Wall Décor Study The ‘selfie’ culture has created a new market for frames
and wall décor. In addition, affluent consumers are collecting more original, one-of-a-kind artwork to display on their walls.
An in-depth study is planned in 2016 to investigate the new art, framing and wall décor market, with a special section devoted to how consumers use the internet in their pursuit of new art and frames to display.
Millennials on the Road to Affluence This new study has important implications for every
brand that wants to connect with the next generation of luxury consumers: the Millennials
To deliver more actionable
insights to marketers about
the best potential
customers in the U.S.
consumer market today –
the affluent top 20%.
Qualitative expertise Focus groups, IDIs
Expert, influential & channel partner studies
Quantitative expertise Survey design
Data analysis including statistical data analysis
Analyzing survey results for key take aways
Marketing & branding consulting How to use research to create more powerful brands
and more compelling marketing
Speaking experience Presentations that deliver the most important
information and insights that the audience can take away and put into action
We are a boutique
marketing research and
consulting firm.
We lead with research to
advise businesses that need
insights into mind of
affluent consumer with
incomes $100k and above.
Greater access to new AFFLUENT consumer SAMPLES
In-depth data about HIGH-END & LUXURY customers
Understanding of BRAND USAGE & AWARENESS
Key COMPETITOR BRAND usage & awareness
Purchase & usage TRACKING STUDIES
CUSTOMER SURVEYS and studies to identify new opportunities
Unity Marketing can
provide more data about
the affluent consumers,
combining both qualitative
and quantitative research
strategies.
UNDERSTAND your best prospective CUSTOMERS’ needs and desires
Get the COMPETITIVE EDGE
Develop more effective MARKETING STRATEGIES
RESEARCH your market
SHARE customer KNOWLEGDE & INSIGHTS
Evaluate NEW PRODUCTS
Find best CHANNELS OF DISTRIBUTION
Track TRENDS in the market
Unity Marketing can help you
use the research data you
have on hand to greater effect
to drive growth for your
business.
We consult with companies of
all sizes, from small to mid-
sized to large multi-nationals.
We support retailers,
manufacturers and marketers
in both B2C and B2B
marketing strategies.
Presentations CUSTOMIZED to specific needs of your group
PREPARE your marketing and sales teams for the competitive landscape of tomorrow
Gain “All Access” into the mind of today’s most influential shoppers – the AMERICAN AFFLUENT
Turn research-based INSIGHTS into ACTIONABLE STRATEGIES for reaching your most profitable customers
For over a decade Pam Danziger has studied the changing preferences, shopping habits, attitudes, and lifestyles of affluent consumers.
Her presentations, speeches, seminars, webinars & workshops are customized to the needs of each audience.
Each presentation is designed to give the audience news they can use to understand the mind of today’s most influential shoppers – the American Affluent.
The goal is to deliver research-based insights that can be turned into actionable marketing strategies for each member of the audience to reach their most profitable customers.
Unity's research-based
approach can help
marketers and retailers find
new opportunities for
growth in their businesses.
Email Pam188@ptd.net or
call 717.336.1600 to discuss
your marketing challenges.
Pam Danziger and the Unity Marketing team offer a range of
tools and resources to help marketers and retailers identify
their best customers and channel partners and how to reach
them most effectively with targeted marketing strategies
and tactics.
Speaker, author, and market researcher Pamela N. Danziger is internationally recognized for her expertise on the world's most influential consumers: the American Affluent. Her new mini-book, What Do HENRY's Want?, explores the changing face of America's consumer marketplace.
As founder of Unity Marketing in 1992, Pam leads with research to provide brands with actionable insights into the minds of their most profitable customers.
Leadership in luxury marketing recognized through Global Luxury Award presented by Harper’s Bazaar, London May 2007.
She was named to Luxury Daily's Luxury Women to Watch in 2013. She is a member of Jim Blasingame: The Small Business Advocate’s Brain Trust and a contributing columnist to The Robin Report.
Currently Pam is working on a new book : Meet the HENRYs: Millennials on the Road to Affluence
Her most recent books are What Do HENRYs Want? and Shops that POP! 7 Steps to Extraordinary Retail Success.
Previous books, Putting the Luxe Back in Luxury: How New Consumer Values Are Redefining the Way We Market Luxury; Shopping: Why We Love It, Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes & Why People Buy Things They Don’t Need