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

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