Luxury Brand Management
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Transcript of Luxury Brand Management
Luxury Brand Management
Presented by:-Ashka Raval
141306
“Some people think Luxury is the opposite of Poverty. It is not. It is opposite of Vulgarity.”
- Coco Chanel
What is Luxury?• Luxury is a word derived from an old French word “Luxurie”, which means
‘Lasciviousness, a sinful self-indulgence’.• Classification of Goods:
LUXURY
NECESSITY
AFFLUENT
BASIC
Limited in supply, difficult to procure and very expensive
Goods not essential to growth and prosperity
Goods for normal growth of people & communities
Goods to maintain life
Some of the top Luxury Brands
The Clients of Luxury Goods• Clients of Luxury goods are rich, filthy rich or everybody?• On the basis of net worth of individuals there are four customers segments:
– Millennium Money– Old Money– Middle Money– New Money
• Motivations of customer behind buying: Familial and social parameters , self giving concept, self-assertion, differentiation and genuine appreciation for product excellence.
How is Luxury Sector Different?
Regular Goods
• Focus on increasing customers base.
• Attracting customers through sales promotions
• Increasing availability of products
• Size of the company can be small-medium-large
• Brand awareness varies
• Average break-even
Luxury Goods
• Focus increasing quality customer base
• Avoid sales promotion
• Product availability at very specific locations
• Luxury goods companies are small-medium size
• Brands awareness is high
• High break-even
Brand Identity Brand Identity Prism (Coco Chanel)
Physique Personality
Relationship Culture
Reflection Self-image
DurableFlatteringRespectful
The Modern Elegant Woman
A liberated woman’s lifestyle
SimplicitySophisticationAnticipationLiberation
InstinctiveDaringCreativePerfectionist
“Take a look” for women
Brand EquityWho are you?
•Very Expensive
•High Brand awareness
•Available in Flagship Stores
•Differentiated product features
• Very superior product
What are you?
•Attributes may be compensated for design
•Extravagant design known for unique craftsmanship
•Not known for extensive product use
What about you?
•Memorable brand experience
•High on hedonism
•Satisfy emotional needs
What about you & me?
•Status relationships
•Status stories
•Relationship with meaning
RATIONAL FUNCTIONAL EMOTIONAL RELATIONAL
Corner Stones of Luxury Branding
• Performance• Pedigree• Paucity• Persona• Public figures• Placement• Public Relations• Pricing
Performance• Performance refers to the delivery of superior experience of a
luxury brands at two levels- first at Product level and second at Experiential Level
NASA Certified watch - OMEGAPatek Phillepe
Pedigree
• Many Luxury brands have rich pedigree and extraordinary history that turns into inseparable part of brand mystique.
Rolls Royce Celebrating
100th Anniversary
Gucci Museum
in Florence
Coco Chanel
Paucity
Over-revelation and distribution of luxury brand can cause dilution of luxury character. Hence many brands try to maintain perception that goods are scarce.
• Natural Paucity• Technology-driven Paucity• Tactical-driven Paucity
Platinum- Natural Paucity
Luxurious sports car- Technological Paucity
Crystal Studded Limited Edition Benz- Tactical Paucity
Persona• The persona of a luxury brand is largely due to:– Its distinctive projection– Application across customer touch-points• Social Media• Association with real life incidents• Examples: Jimmy Choo, Rolex, Tiffany & Co., Gucci
– Brand communication through advertising– Focuses on visual Identity
Public Figures & Product Placement
•Luxury brands have always been known for including celebrities as a part of their marketing mix.
•The strategic attempts are:• Dressing celebrities for their walk down the red carpet• Product placement in movies, songs and television
programs.• Invites to special events
•This attempts removes the appearance of selling while still promoting the product
Public Relations• PR in Luxury products plays and enormous role in brand
proliferation and thereby subtly influencing public opinion.
• The PR is mainly through features in:– Luxury Magazines– Celebrity endorsements in events– Designer talks– Dialogues with Luxury customers– Launch events
Presence
• Luxury brands must have presence in all the prime locations of the world to create a higher brand value
• Stores of these brands are mainly located in downtown areas of various fashion capitals of the world.
• They also need to have flagship stores.
Keys to success in Luxury Goods Branding
• The strong brand name• The primacy of design• Reason for being• Keeping up with social trends• Identifying needs of customers
THANK YOU