Rmg 914 - final WEEK 6 PP
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RMG 914 INTRODUCTION TO LUXURY RETAIL MODULE # 6
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Transcript of Rmg 914 - final WEEK 6 PP
RMG 914INTRODUCTION TO LUXURY RETAIL
MODULE # 6
E-TAILING & TECHNOLOGY RETAILING
INTERNET ADVANTAGES
o Global Brand Management
o Competitive Brand Management
o Consumer Web Analytics
o Customization
o Marketing Communication and Retailing
Due to craftsmanship and excellence in products many firms were reluctant to become part of the internet
A serious challenge once on the internet was harnessing digital strategies and media to promote the brand while safeguarding the sense of exclusivity
CHALLENGES
THE INTERNET AND LUXURY BRANDSo Ubiquity
o Speed
o Flexibility
o Mobility
o High Efficiency
o An Unlimited Space to Interact within
It is now seen as a necessary for luxury firms for the adaption of mass marketing strategies and because much information about luxury brands circulates and this format gives the brands ability to protect and defend reputations
Earlier in existence-approached with skepticism and curiosity. It is only in the last few years with the convergence of digital applications and mobile technology have luxury firms firmly understood the inevitability of having an online presence
THE INTERNET AND LUXURY BRANDS
The design of a successful online presence is a key aspect to gaining profitable customer relationships and a prerequisite of understanding the behavioural patterns of luxury consumers
Demand Side – financial and product Risks- namely payments Procedures and the Risk of receiving Counterfeit Products
THE INTERNET AND LUXURY BRANDS
DESIGNING AN ATTRACTIVE ONLINE PRESENCE
Construction of an effective website is crucial
It must offer: o Advertisement platform o Sales platform o Company description and essence o Distribution of catalogueso Customer service & entertainment o Investor information
Design and Functionality are key-multi sensory – using tools such as visuals – figures- pictures – sounds – videos and 3D presentations to create a “webmosphere”
www.Gucci.com
DESIGNING AN ATTRACTIVE ONLINE PRESENCE
Many of the luxury brands have also build company pages such as:
o Facebook – luxury brands have increase by 63% in 2012o Twitter – luxury brands have increased by 43% in 2012o Instagram – Still newer/ up and coming for luxury brands
DESIGNING AN ATTRACTIVE ONLINE PRESENCE
ONLINE OPPORTUNITIES FOR LUXURY BRANDS
o Global Brand Management
o Competitive Environment Monitoring
o Customer Profiling and Web Analytics
o Mercedes Benz – www.stars-insight.com
CUSTOMIZATION AND CUSTOMER ENGAGEMENT Increasing focus on the concept of customization for the end user
o LVMH’s Louis Vuitton monogram collection where consumers can personalize with their initials of other features
o Porsche’s launch of an interactive campaign on Facebook for its 911 Carrera 4S car
DIGITAL MARKETING COMMUNICATION STRATEGIES
o Online advertisements has grown and is now not just confined to the websites
o Digital commerce is now a PULL communication strategy as it is now the consumer searching for information
o Today advertisements are created to promote brand awareness
DIGITAL MARKETING COMMUNICATION STRATEGIES Examples of digital marketing communication:
o Banners o Action – banners o Pop-up adds o Online videoso Microsites o In luxury - Microsites are used most frequently for specific
events or products and are found to be more effective in the luxury market
FAMOUS CAMPAIGNS THROUGH BRANDING
o In luxury - Microsites are used most frequently for specific events or products and are found to be more effective in the luxury marketo http://www.odyssee.cartier.com/o http://www.campaignlive.co.uk/article/cartier-creates-epic-ad-celebrate-165-year-heritage/1120666 o http://artofthetrench.burberry.com
o OPEN WEB SITES FOR CAMPAIGNS
KEY POINTS
o Understand the online market and digital technologies in-depth
o Acquire the necessary skills to delineate successful online strategies
o Create a luxurious online presence
o Ensure seamless integration between online and offline strategies
o Listen to feedback
o Be active on social media
E-TAILING STRATEGIES
o Some luxury firms only sell through portals of Fashion E-tailers and in doing so loose some control over image and branding
o It is essential to keep pricing exactly the same online and offline
TIFFANY E tail Strategies
Tiffany & CO. has an excellent website in which jewellery is arranged by price, designer and collection and gem. Tiffany has also created a free I phone app that allows customer to browse
their own size of engagement rings
DIGITAL MEDIA APPLICATIONS IN
MONO-BRAND STORES
DIGITAL MEDIA AND MONO-BRAND STORES
o How to keep mono-brand stores profitable?
o One was is seamless brand images and unique customer experience online and offline and on mobile distribution
o Integration of Media applications
o Complex and significant expense
o Other examples of mono brand stores and their digital media strengths
Chart 11.1 to be scanned into presentation – need to get to scanner
TARGETS INFLUENCING RETAIL CHOICES
o Wide assortment o Cash points of sale
o High service quality
o Positive Store Attitude
o Fast Checkout
TARGETS INFLUENCING FREQUENCY OF VISIT
o Positive store attitude
o Positive store image
o Retail store digital media integration
o Digital media integration at POS
HOW CAN LUXURY BRANDS INTEGRATE MEDIA AT THEIR POS
o Service offering
o Pricing
o Product offering
o CRM
o Change management
o Controlling
RETAILING VARIETIES
o Free standing stores
o Flagship stores
o Shop in Shops
o Corners
o Department store counters
o Sale in Multi brand individual stores
BACKGROUND ANALYSIS o Central Business District
o Main Street
o Strip Malls
o Shopping Malls
o Free Standing Stores
ADVANTAGES OF RETAIL LOCATIONS
Relative advantages of Major Retail Locations
CUSTOMER ENGAGAEMENT
TIME SPENT
o Woman with a man – 4 minutes and 41 seconds
o A woman alone – 5 minutes and 20 seconds
o A woman with a child – 7 minutes and 19 seconds
o A woman with another woman – 8 minutes and 15 seconds
RETAILING INDICES
o Index of attractiveness of the store
o Conversion Rates
o Average Ticket
o Average number of items purchased
o Inventory Management
o Ratio of POS to total sales
o Sales per square foot/meter
o Sales per staff
o Sell through
o Standard income statements per store
RETAILING IN THE LUXURY FIELD
o Store location:o Chicken vs. Egg-better
o Different leasing systems and their costs o American leasing systems o Japanese leasing systemso The French leasing systems
BUDGET PLANNING AND CONTROL
o Sales Targets
o Inventory Forecast
o Purchasing Plan
o Margin Controls
o Special Discounts
o Loss Prevention and Pilferage
THE STORE INFORMATION SYSTEM
o Computer links to head office
o Online reports – constant updates – transfers – reallocation and learning about regional differences
o Staffing
o Training
o Evaluation and Motivation
o CRM
COMMUNICATION POWER TO THE STORE
o Present the product in highlighted context
o Architecture, product and staff aesthetics
o Multi Sensory products, odors, music, decorations, lights, logos, and advertisement propaganda
o Personnel communication
o Internal and external displays
o Selling Online
QUESTIONS TO PONDER
Question to PonderWritten response required by next week.
1. What kind of things are brands doing to get on the Radar of their best potentials? ■ A) Advertising in door to door flyers B) Reaching out through relevant communication platforms C) Using
Mailing List and client lists. Back up your response with a few reasons and examples.1. What is the impact of Social Media vs Traditional Market Research? What kind of marketing do millennials
respond to most frequently?■ A)word of mouth B) Television C) Internet Advertising■ Give some examples that you feel are relevant for your response.
1. What are the smartest marketers doing to gain greater share of “The Best “?■ A)Research in the stores B) Building Blogs C) Creating Customer Service Portals■ Which of the above do you feel is most correct and Why ?
