Premium Essay

Branding Luxury Brand

In: Business and Management

Submitted By rajat2000
Words 37078
Pages 149
The Concept of Luxury Brands by Klaus Heine

Technische Universität Berlin, Department of Marketing Prof. Dr. Volker Trommsdor Wilmersdorfer Str. 148, 10585 Berlin, Germany Phone: +49.30.314-29.922



Fax: +49.30.314-22.664

Email: Klaus.Heine@marketing-trommsdor.de



Internet: www.marketing.tu-berlin.de

Heine, Klaus (2011) The Concept of Luxury Brands, Technische Universität Berlin, www.conceptouxurybrands.com.

Edition: 1.0
This paper is published as the rst part of the serial publication Luxury Brand Management

ISSN: 2193-1208 Editing & Review: Bartek Goldmann and Kate Vredenburgh Cover page: Kevin Duggan Acknowledgements:
Dr. Steen Herm. I would like to thank the following people for their support and constructive criticism: Prof. Dr. Volker Trommsdor, Prof. Dr. Reinhold Roski, Dr. Vera Waldschmidt, Demet Tuncer,

by Klaus Heine (2011);

Copyright by Klaus Heine.

All rights reserved. Apart from any fair dealing for the purpose of re-

search or private study, or criticism or review, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, scanning, or by any information storage or retrieval system, without permission in writing from the author.

Technische Universität Berlin, Department of Marketing, Wilmersdorfer Str. 148, 10585 Berlin, Germany, Tel: +49.30.314-29.922, Fax: +49.30.314-22.664

Contents
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

v vi vii

I. Introduction
1. Luxury is Anything and Nothing 2. Outline of Chapters

1
2 5

II. Conceptual Foundations
3. Types of Definitions and...

Similar Documents

Free Essay

Hahrley

...When repositioning the brand, Bravo and her team noticed available niches between Polo Ralph Lauren/Giorgio Armani in apparel and Coach/Gucci in accessories (Moon, 2004). Relative to its competitors, Burberry is presented as ‘accessible luxury’ (Moon, 2004). Burberry’s new competitive positioning is seen as sustainable over long term. What separates Burberry from other luxury brands is the functional aspect—a trench coat that has a purpose (Moon, 2004). Burberry’s point of difference was to be aspirational, but also functional (Moon, 2004). Bravo described the brand’s current position as wedged between Ralph Lauren’s lifestyle and Gucci’s fashion (Moon, 2004). Not only are lifestyle and fashion brands competitors of Burberry, but companies like Target are competitors as well (Moon, 2004). This is due to people shopping everywhere; high-income people shopping at discount warehouses and middle-income people shopping at luxury retailers (Moon, 2004). Since Burberry is continuing to bring out innovative designs and products partnered with proper advertisements, its competitive positioning is sustainable over the long term. 2. The case notes that Bravo’s team has managed to elevate the overall status of Burberry’s brand. How has it managed to accomplish this? b. First and foremost, Bravo and her team knew that the next five years were going to be crucial (Moon, 2004). Bravo’s team set the goal to maintain Burberry’s currency and cachet of the brand across its customer......

Words: 1371 - Pages: 6

Free Essay

Louboutin

...led him to become expelled from school three times. At the age of 12, he ran away from home and moved in with his peers’ family. At this same age, Louboutin frequently visited the flea markets and snuck into shows to watch famous showgirls perform. During his visit to the African and Oceanic Art Museum, he became inspired to create shoes. Louboutin received little formal training during his lifetime; the small amount he received was at the Academie Roederer where he studied drawing and decorative arts. During his teens, he traveled for a year in Egypt and India. Inspired by these foreign cultures, the young Christian decided to return to Paris with a portfolio full of heels in 1981. While in Paris, he worked as a freelance designer for brands like Chanel, Yves Saint Laurent, and Maud Frizon. He also tutored under designer, Charles Jourdan. In 1988, Roger Vivier, a famous designer who worked for Dior, took Christian under his wing. Vivier helped Louboutin sharpen his shoe designing and manufacturing skills. In 1991, Christian finally established his own company. He opened up his first boutique, Christian Louboutin, in Paris, France. With the help of Princess Caroline of Monaco and a fashion journalist, he instantly became famous. He gained famous clients, like Madonna, Sarah Jessica Parker, Lady Gaga, Beyonce, and more. Louboutin’s most famous global trademark is the red bottom heels. Christian...

Words: 328 - Pages: 2

Premium Essay

Case Study - Vertu, Gucci, Lv

...Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not affected by trends. These brands set seasonal trends and are capable of generating consumers, wherever they are established.In luxury marketing, there is a delicate relationship between 4 factors that most strongly influence the purchase of the luxury consumer. They are the exclusiveness of the brand, the reputation of the brand, forms of distribution and price/value affiliation. Exclusivity cannot always be ensured due to immense competition. But by consequence, it is not the key requirement of a luxury consumer. The consumer bases their purchasing decisions mainly on the aura of the brand and completion of their ‘actualization needs’. Therefore, aura of the brand is more important than exclusivity. A luxury consumer is always looking for newer ways to satisfy their inconsistent wants and needs. Therefore, it is important for Gucci, LV and Vertu irrespective of their exclusivity and geographical presence to research and give their consumers major importance, to be successful in the fashion or high-end market. This report will aim to discuss the key success factors of Gucci, LV and Vertu that have impacted on their brand image and exclusivity. Furthermore, it gives a detailed explanation supported with examples on how they achieve their elitism. It then discusses the problems and obstacles......

Words: 262 - Pages: 2

Free Essay

Instagram and Luxury Brands

...concern over plans to introduce native advertising, which the official Instagram blog has attempted to assuage by saying that the intention is to “focus on delivering a small number of beautiful, high-quality photos and videos from a handful of brands that are already great members of the Instagram community.” And according to Steve Olenski at Forbes, “there will be no shortage of brands chomping at the proverbial bit to be part of the ‘small number’… Instagram’s growth has been so substantial that it now rivals Google and Pinterest in terms of brand adoption.” Olenski based his assertion on a recent study by Simply Measured, which indicates that brand adoption on Instagram is up 40% on last year. Another salient point highlighted by the study is that automotive, media and luxury brands dominate in terms of engagement on Instagram – and these engagement levels are continuing their growth. Brand engagement has increased by 350% in the last year, due to more and more brands embracing the platform as a means of reaching their followers. So why are brands flocking to Instagram, over other apps and networks? The first and most obvious answer is that lifestyle and luxury brands want to tell inherently visual stories (which is also why many brands are establishing a presence on Tumblr). An extract from the study suggests that “aside from the 150 million users, Instagram offers an...

Words: 501 - Pages: 3

Premium Essay

Gucci Case Study

...It is difficult to find a precise definition of “luxury”, but it’s generally identified with high quality and price products in the fields of fashion, luggage, jewelry, cosmetics, fragrances, watches, and drinks. In the luxury goods business there are 35 companies that share 60% of the market, but only 6 of them have revenues in excess of $1 billion. Considering the definition explained before, the most important companies which belong to the market are: Louis Vuitton, Cartier, Gucci, Prada, Hermes, Bulgari, Tod’s, Celine, Jil Sander, Kenzo, Valentino, Lacroix, Donna Karan, TAG Heuer, Armani, Tiffany, Chanel, Ralph Lauren and Tommy Hilfiger. It is an interesting market because it is completely focused on the quality of the product from every point of view: the beauty and the design of the product, the refinement and affectation of raw materials, the meaning of the product (the style and the social status of the person to whom it belongs) and the values and emotions that it transfers. As a result, the company focus is mainly on differentiation rather than on cost, therefore these companies follow a differentiation strategy in order to obtain a differentiation advantage. This feature of the market is reflected on the companies’ results, for example looking at the return on sales ratios of Gucci (27% in 1999) in relation to ther company markets like Coca-Cola Company (10,6% in 2000), Amazon (6,8% in 2000) and Dell (8% in 1998). Considering the market in general, LVMH holds the......

Words: 292 - Pages: 2

Premium Essay

Harrington

...2087 JUNE 15, 2007 CHEKITAN S. DEV LAURE MOUGEOT STROOCK Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Introduction For nearly 25 years, Rosewood Hotels & Resorts (Rosewood), a private hotel management company, sought to build a global reputation with iconic luxury hotels such as The Mansion on Turtle Creek in Dallas and The Carlyle in New York—trophy properties so distinctive, each could thrive on its own name, without any “corporate” identification (see Exhibit 1 for brand history). The Rosewood brand was muted, unmentioned in advertising, and known mainly to hotel professionals. However, in early 2004, to boost the company’s growth, John Scott, Rosewood’s new president and CEO, and Robert Boulogne, vice president of sales and marketing, were considering a new brand strategy. As Boulogne recalled: We thought the time was right to establish Rosewood as a true brand incorporated into the name of each hotel and prominently displayed in all communications for and at our properties. This would help provide us with a platform for encouraging guests who stay at one of our properties to stay at some of the others. But, they wondered how far they could push this branding strategy without undercutting the distinctiveness of each individually branded hotel. Company Profile and Background Headquartered in Dallas, Texas, Rosewood Hotels & Resorts, L.L.C, was a privately held company, established in 1979 by the Caroline Rose Hunt......

Words: 5996 - Pages: 24

Premium Essay

Branding

...Brand Name and the Quest for Success in the Luxury Sector All luxury designers strive to achieve long-term success. To put a label on a collection of products is to create a brand, but that label does not provide for definite staying power. Lucrative brands have gone beyond creating something pretty; an outstanding brand writes a story that the consumer believes and wants to buy into and the brand then becomes more than its product. Labels that grasp the importance of branding understand that they must be more than the watch or bag or scarf. The appeal of a brand must be in who the consumer becomes when he or she puts on or uses a certain product. Brand awareness widens when a high-end label creates and conveys a clear message or lifestyle that the consumer thinks he or she can attain through purchase. That is the art of branding. Branding convinces the consumer not to simply buy a product, but instead buy the brand as a whole. A stellar product does not stand alone—behind it must be something deeper, a message or a symbol which should represent or relate back to the identity of the brand. Within the luxury sector, where products are often an investment regardless of one’s socio-economic status, conveying an identity is crucial. If the consumer cannot see what he or she will gain from purchasing a $2,000 handbag or a $26,000 watch, there will be no sale, and the ship that is the brand will sink. John Goodchild and Clive Callow, authors of Brands: Visions and......

Words: 2971 - Pages: 12

Premium Essay

Rosewood - Case

...2087 JUNE 15, 2007 CHEKITAN S. DEV LAURE MOUGEOT STROOCK Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Introduction For nearly 25 years, Rosewood Hotels & Resorts (Rosewood), a private hotel management company, sought to build a global reputation with iconic luxury hotels such as The Mansion on Turtle Creek in Dallas and The Carlyle in New York—trophy properties so distinctive, each could thrive on its own name, without any “corporate” identification (see Exhibit 1 for brand history). The Rosewood brand was muted, unmentioned in advertising, and known mainly to hotel professionals. However, in early 2004, to boost the company’s growth, John Scott, Rosewood’s new president and CEO, and Robert Boulogne, vice president of sales and marketing, were considering a new brand strategy. As Boulogne recalled: We thought the time was right to establish Rosewood as a true brand incorporated into the name of each hotel and prominently displayed in all communications for and at our properties. This would help provide us with a platform for encouraging guests who stay at one of our properties to stay at some of the others. But, they wondered how far they could push this branding strategy without undercutting the distinctiveness of each individually branded hotel. Company Profile and Background Headquartered in Dallas, Texas, Rosewood Hotels & Resorts, L.L.C, was a privately held company, established in 1979 by the......

Words: 5840 - Pages: 24

Premium Essay

Rosewood Hotel Group

...one-of-a-kind luxury properties that are individually branded with the purpose of capturing what is unique about a given location. This strategy has been successful but now management believes that branding the hotels as a collective will increase customer visits between properties. Question #1- Why is Rosewood considering a new branding strategy? In your answer consider the characteristics of the company, its competitive environment, customer base and its current marketing/branding strategy. Rosewood Hotels is considering a new branding strategy to increase its revenue. They recognize that the even subtle increases in customer lifetime value (CLV) can mean significant increases in the bottom line. They also realize that an investment in retaining a customer to increase the CLV is more cost effective than attracting new customers due to the long term benefits. Management believes that moving from marketing the properties individually to corporate branding will increase customer repeat visits between hotels and that will consequently increase revenue by increasing CLV. This individual “brand positioning substantially limits our market,” as chairman of the board Maritz states, “I think we are underestimating the power of corporate brands, such as the Four Seasons, as status symbols. At this time, we are after only a subset of the luxury market-the sophisticated customers who value the distinctive, exclusive „collection hotel‟ when in fact the vast majority of the luxury market......

Words: 1740 - Pages: 7

Premium Essay

Rosewood Case

...Resorts has been in business for close to 25 years. It operates in the luxury hotel segment, with a focus on one-of-a-kind hotels. Each hotel reflects the local culture and character of its location. Up to this point it has allowed properties to thrive on their own with very little corporate identity. However, management feels there is an opportunity for growth in the market and is considering a new brand strategy; one that would establish the Rosewood brand and incorporate it into the name of each property as well as introduce more Rosewood branded items in the hotels. It needs to present its strategy to the Board of Directors and is questioning how far it can push the branding without hurting the individual identities of the properties. Industry There are two distinct groups in the luxury hotel industry, the “Collections” of individual properties such as Auberge, RockResorts, and Orient-Express, and the Corporate Branded hotels such as the Ritz-Carlton and Four Seasons. Rosewood operates in the “Collections” group. It built its concept around “A Sense of Place®”, which is meant to reflect how each property captures what is unique about its location. This is fairly typical of the “Collections” brand model, where companies focus branding and marketing on individual properties, with the overall corporate brand relatively muted in the background. The Corporate Branded hotels focus heavily on their brand name and offer a very similar experience from property to......

Words: 3959 - Pages: 16

Premium Essay

Rolex

...Jeannine Komonosky Long Le James E. Salter Copyright © 2005 SalterQuest.com. All Rights Reserved. Introduction • Watch Industry • Key Brand Components • Current Brand Strategy • Image Associations • Perceptual Map • Competitive Position • Industry Analysis • Opportunities & Threats • • • • Strengths Weaknesses Brand Report Card Revised Branding Goal and Strategy • Revised Brand Messaging Copyright © 2005 SalterQuest.com. All Rights Reserved. Watch Industry • History – Industry Grew up in Geneva – Swiss Watches have a Worldwide Reputation for Quality • Technological Developments – Mechanical Watches have 100 to 130 components – Light-emitting diodes (LED) – Liquid Crystal Display (LCD) – Quartz Analog • Brands now Compete on: – Features – Product Attributes – Positioning Copyright © 2005 SalterQuest.com. All Rights Reserved. Key Brand Components • Early Publicity Advantages • Branding Challenge • Importance of Marketing • Role of Collectable Copyright © 2005 SalterQuest.com. All Rights Reserved. Current Brand Strategy • Early Brand Strategy • Current Brand Strategy Copyright © 2005 SalterQuest.com. All Rights Reserved. Image Associations Corporate Success Symbol Swiss Made Luxury Market Wealth in Travel Prestige Sports The World of Rolex Luxury Adventure James Bond 007 Disposable Income Copyright © 2005 SalterQuest.com. All Rights Reserved. Perceptual Map Prescious......

Words: 684 - Pages: 3

Premium Essay

Luxury Brand Marketing

...global market for luxury brands has experienced a dramatic growth over the last three decades, and the current demand for luxury brand products has grown enormously. Wiedmann, Hennigs and Siebels(2009, p. 627) stated that a luxury good: “brings esteem for its owner and enables consumers to satisfy psychological and functional needs”. This essay will argue that marketing theories: brand theories and the ‘four-P framework’ ( product, pricing, place and promotion) are applied to bring superior value to luxury brands. It will also identify the tangible and intangible resources that are utilized to add superior value to luxury brands, in comparison to low-priced products. An illustration will also be given regarding luxury and basic cosmetic branding. Finally, it will be argued that it is not ethical to charge high prices for products. Nowadays the consumption of luxury products has become so vital to the global economy and the high profile of luxury goods has built widespread awareness of brands in customers’ perception. It is claimed that a luxury brand is one that is selective and exclusive, and which has an additional creative and emotional value for the customer (Chevalier and Mazzalovo, 2008). Even if some consumers cannot afford to buy luxury brands, they are familiar with the name or symbol of some famous brands that are classified as luxuries. A brand name helps differentiate its products from others and makes it distinct from those of other sellers. Brand equity......

Words: 1662 - Pages: 7

Premium Essay

Rosewood Branding

...corporate name. This strategy has worked well for many years as shown by the results of a prominent reputation and a specific customer market. Now that the luxury hotel market is becoming quite crowded, the new CEO/President and Vice President of Sales and Marketing, John Scott and Robert Boulogne, are finding it more difficult to compete with corporate branding such as the Ritz Carlton and the Four Seasons hotel. John and Robert are considering transforming the customary strategy of individual branding into corporate branding by incorporating Rosewood’s brand into each individual property. Completing this transformation will create several positive and of course negative factors that will need careful consideration. Over the past 25 years Rosewood Hotels has built for itself a portfolio of some of the most iconic luxury hotels in the business. Every one of these hotels features architecture, interiors, and culinary concepts that reflect the local character and culture. This is defined as Rosewood’s “Sense of Place” philosophy. This is what has differentiated Rosewood from its competitors in the luxury hotel business. Leveraging these individual property brands was Rosewood’s strategy in the 90’s. While it is clear to see that there are several benefits and gains for adopting the corporate branding identity such as increased brand recognition and visibility, it is important for the Rosewood hotels’ executive management to be careful while designing its growth and......

Words: 874 - Pages: 4

Premium Essay

International Branding

... Understanding Branding A brand in its simplest form is a name, logo, design or image used by an organization to identify a product or service and distinguish it from that of their competitors (Kotler et al 2012). However, the perceptions about brands are changing, and many academics now define brand as a powerful psychological construct held in the minds of all those aware of the branded product, organization or movement (Kylander and Stone 2012). Unlike the commercial sectors, charities and the not-for-profit sectors have long been reluctant to engage in strategic branding activities. Despite big charity organisations like RSPCA and Greenpeace having universally recognized brand images, the need to have a strong brand is still disputed by many charity practitioners (Saxton, 2008). Hankinson (2001) suggests that this could have been the result of greater complexity of charity brands compared to commercial brands, the difficulties in committing internal stakeholders to branding concepts or merely the risk of being seen as ‘too commercial’ or even ‘immoral’. However, the past decade has witnessed a paradigm shift in branding activities in the non-profit sector, and branding seems to be at an inflection point in its development. (Kylander and Stone 2012) 2. Role of Branding in the Charity and Not-for-profit Sector Until a decade ago, the major role of a ‘brand’ in the non-profit sector was to act as a fundraising tool for the organization. But branding today has......

Words: 3753 - Pages: 16

Premium Essay

Rosewood Hotels & Resorts Executive Summary

...Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Nature of Situation Rosewood Hotels and Resorts is a privately held hotel management company. Rosewood is the corporate entity behind many popular luxury hotels such as The Mansion on Turtle Creek and the Carlyle. Rosewood developed the luxury properties based on their concept of “A Sense of Place”. “A Sense of Place” incorporated the unique features-characteristics-culture of the location with the hotel to create a unique hotel at each location. In order to maintain the uniqueness of each individual hotel, Rosewood has kept the corporate company hidden from the boutique hotels. The strategy has allowed Rosewood to become a success and remain separate from some of their chain competitors. The differentiation of each hotel has created iconic hotels with no brand recognition amongst them. The following data demonstrates the importance of having brand loyalty in the luxury hotel business. 2003 report showed majority of customers did not know the Rosewood Brand. In 2004, John Scott, Rosewood President and CEO, and Robert Boulogne, vice president, were working to boost the growth and sales of the company. They looked to a competitor, AmanResorts, who had clientele that would seek out their hotels: Rosewood wanted to create the same clientele awareness. Rosewood was also collecting more data from their guests by using its central reservation system (CRS). The database is......

Words: 472 - Pages: 2