...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 if...
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...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...
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...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 base...
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...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...
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...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 first...
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...Customer Relationship Marketing Student’s name Institution To evaluate the impact of Customer Relationship Marketing (CRM) on the consumer behavior in the luxury retail market of UK. Abstract Customer relation marketing (CRM) is a strategic process of business in which the relationship of client, the loyalty of customers and brand value are built through the marketing activities and strategies. Customer relation marketing has allowed luxury retail market in the United Kingdom to develop long-term relationships with new and established customers while helping in the streamline corporate performance. Customer relationship marketing is a new completive weapon for the luxury market products in the United Kingdom. The battle is among corporates and business in the luxury market products a consequence mainly attributed to internet and rise globalization. Organizations that are offering the luxury products to their customers is focusing on conquering the minds of their customers. In this, they make them be loyal brand followers and satisfy their customer needs with the help of customer relation marketing systems. Luxury products and brand have become the new modern cults. Each brand is seeking to attract the largest customer base. The main purpose of writing the dissertation is to carry out a qualitative thematic research and analyses on the impact customer relation marketing in the luxury retail sector in the United Kingdom. The research and analysis will be based on...
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...SOCIAL MEDIA MARKETING ACTIVITIES ENHANCE CUSTOMER EQUITY/VALUE PERCEPTION? | By GUL KHAN. | Thesis submitted to the Lahore School of Economics in partial fulfillment of the requirements for the degree of [MBA] | [2013] | [Word count] Supervised by: [Ms. SHAMILA KHAN] 1. Introduction The luxury market is a high revenue market across the globe and is continuous on rise. This rise can be increased through expansion for the existing and new brands. This industry is a high value-added industry based on high brand assets. The number of customers for this industry can be increased through specially designed social media marketing techniques. There are great opportunities in emerging markets such as China, India and the Middle East for the luxury brands, so the expansion can be done in these markets. Right now, Luxury brands cannot rely only on strong brand assets and hence secure regular customers. The entrance of new brands follows heated competition and hence signals unforeseen changes in the market dynamics. The global economic downturn has forced the luxury brands to change the business models. The brands cannot rely only on brand symbol and consideration of other factors like brand legacy, quality, esthetic value, and trustworthy customer relationships is necessary in order to succeed. The success element for the companies is that they have to provide value in every possible way. Luxury brands have skewed their eyes toward social media marketing to compose...
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...of Louis Vuitton Company on the Digital World Students Name Institute Affiliation Date ABSTRACT 1. The study utilizes an investigative approach to finding out the positioning of the luxury brand in the digital world; a case of Louis Vuitton Company. Louis Vuitton is one of the best luxury brands in the market with a worth estimate of $24.7 billion. Many luxury brands have not bought the idea of going online and utilizing the digital platform in marketing their products. Nowadays it is very crucial and as well relevant for any luxury brand to go digital. With the world’s economic changes, people have revised their spending and diverted to a rather more relevant daily survival practices. In such a scenario, Luxury brands need to do an aggressive marketing and making their presence be felt all over the world. The technological advancements in the business sector are playing a bigger role rather. The digital platform has been in use for decades now with many business sectors going online. It is noted that as many business sectors would like to venture in the e-commerce, many luxury brands haven’t bought the same idea. Luxury brand companies have the notion that the digital marketing is made for small and middle-level range of commodities. In the year 2014, only three luxury brands gained their strength in the market with Louis Vuitton taking the lead. Therefore, we ask this question, what makes Louis Vuitton take the lead in the market in this transforming technological...
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...Japan, and identify the current phenomena in the market. Luxury is a business model of LV in accelerating Japanese consumers. It is followed by great execution of marketing principles in term of Product, Distribution, Promotion, and Price. However, the modern life of consumers has created change in their behavior. It has become a serious issue that challenges LV’s success in the future. In constructing this paper, a review of relevant journal, newspaper, academic publications, and online resources were used. Consumer behavior change is identified as a significant influence that challenges future performance of LV in the market. LV must seriously think on how to strategically maintain its competitive advantages in the market. This paper recommends LV to enhance its luxury existence in the heart of potential customers. It can be done through extensively enhancing customer relationship, and the main concept that should be implement is strategic alignment between its current marketing programs and Research & Design functions to support high quality production, which accommodate consumers’ expectations. Table of Contents EXECUTIVE SUMMARY………………………………………………………………………....i 1.Introduction ..................................................................................................................... 1 2.Business model strategy: Luxury as a business model ..................
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...Recommendations: Luxury consumers have high expectations when they are shopping in luxury boutiques. Luxury brands have set the bar high and these standards have to be translated to their digital platforms especially as consumers evolve and become more digitally savvy. “Whether browsing via a mobile app, an in-store tablet or simply just on-line, customers expect to receive exactly the same premium experience that looks and feels like their favorite brands”- luxury brands must be consistent in their marketing message and keep the image of the brand strong across all platforms from offline to online media. Chanel for example, has a beautiful website, it is an overall sensory experience as music plays and stunning images convey the brands opulence. However, despite the look of the site, the user experience lacks logical progression. Navigating the site is challenging and soon becomes disappointing when the...
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...CHAPTER 1 INTRODUCTION 1.1 Background of the topic In the early 1990s, the market of luxury goods had been increasing in sales. The Boston Consulting Group estimated in the year 2005 worldwide luxury product sales would be $ 840 billion (Truong, Simmons, McColl, & Kitchen, 2008). The reasons for increasing sales were the recovery of thw economy and quality and productivity were improving (Truong et al., 2008). From a few years ago up to now many countries in Europe have been affected by the economic crisis, the U.S. had a recession, and Asia (Japan) had an earthquake (Max Colchester, Wall Street Journal, July 29, 2011),(Melendez, 2011) Because of these problems luxury brand products should have been affected an lost sales in the world market. However, LVMH reported a 20% sales increase from the last quarter of the year, Gucci increased 22% in sales reported last week (Christina, 2012). This is the opposite of what we would have expected. The increase in sales of global luxury brand in the market shows the trend of current consumers which are younger than the older consumers of the past (Twitchell, 2002). More and more people buy luxury brands, not just working people but also students. 1.1.1 Asian demand for luxury product The Asia market has a high potential for growth and strong demand (Colchester, 2011).This is because the economy in Asia is good and has been getting better and better for many years. China, economic growth rate in 2011 was 9.2%,...
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...Keeping Luxury Inaccessible Keeping Luxury Inaccessible By David Ward (PhD), Claudia Chiari (MBA) All correspondence to Prof. David Ward, Via Fornari 46, 20146 Milan, Italy email: daward@tin.it Co-author: Claudia Chiari, Via Vittorio Alfieri 27, 52100, Arezzo, Italy Abstract This paper sets out to explain and decipher luxury and especially inaccessible luxury with the intent to provide enterprises three new analytical tools to ensure they stay ‘in front of the pack’. The paper starts by assessing what luxury was and is today and how and why it has evolved so far. It looks at Mass and Intermediate luxuries and then discusses three models to assess also Inaccessible luxury. The three models specifically developed by the authors are: 1. The Tangibility of Luxury, 2. The Spectrum of Luxury and 3. Brand Identity of Luxury. It will be shown that a luxury product can indeed migrate towards intermediate and mass luxuries when its traits become tangible and when rarity turns into abundance and luxury becomes accessible. The authors promote the idea that this process can be controlled by the enterprise or industry providing the brand, product traits and distribution are managed accordingly. The authors also examine the particular linkage between rational and emotional value through the brand and map the degree of luxury of a brand by assessing what actually differentiates the luxury products from the rest. This is not done in the traditional way of assessing the marketing mix (4P, 6P...
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...owned luxury wrist watch company founded in 1839. The Patek Philippe is a luxury brand that promotes values such as heritage, tradition and family that appeal to even most affluent customers (Patek Philippe SA, 2014). The report has examined the sources of Patek Philippe brand equity using Aaker's brand equity model. Afterwards, an international branding strategy has been developed, examining the possibilities and size of the luxury market in China. Marketing strategy elements such as targeting, positioning and marketing P's are discussed in the following sections of the report. Given that Patek Philippe will be entering a new market in China the possibility of a brand extension development is considered. Lastly, an annual control plan for Patek Philippe brand is introduced for measurement, control and monitoring purposes. Aaker’s Brand Equity Model The brand is described as ''a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors'' (American Marketing Association, 2014 and Aaker et al. 1991). Therefore brands are useful means of signaling the level of quality, cost, value and risks involved in buying the product or services. Consumer - based brand equity identifies the response of consumers that have interacted with the brand in the past (Kotler & Keller, 2009). The report examined the branding strategy of Patek Philippe luxury watch...
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...OROTON International Marketing Report Student: Erin Burgess Student: Kellie Burmeister Student: Mark Bell Lecturer: Suzanna Mahinder Due date: 25th August 2013 OROTON page 2 TABLE OF CONTENTS INTRODUCTION ................................................................................................. 3 THE OROTON BRAND ....................................................................................... 3 OROTON PRODUCTS........................................................................................ 3 THE CHINESE MARKET .................................................................................... 4 OBJECTIVES ...................................................................................................... 4 TARGET MARKET .............................................................................................. 5 MARKET RESEARCH ......................................................................................... 5 ENTRY STRATEGY ............................................................................................ 6 PRICE STRATEGY ............................................................................................. 7 PRODUCT STRATEGY....................................................................................... 8 PROMOTION STRATEGY .................................................................................. 8 DISTRIBUTION STRATEGY ................................................................................
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...SUMMARY Luxury branding is a whole new ball-game altogether, both from the perspective of the marketer as well as the luxury consumer. It therefore becomes important to view it both in relation and isolation from the ‘regular’ goods marketing. To achieve the above objective, we first look at how luxury goods are different from regular goods and then go on to explore some facets and trends of the luxury goods as well as their market and consumers. This finally sums up into a SWOT analysis of the luxury goods segment, thereby helping in obtaining a bird’s eye view of the exercise at hand. Considering that the luxury concept has shifted to the ‘new’ meaning, we delve into that aspect to understand the drivers for luxury brands presently, as well in the time to come. This is followed by a luxury potential determination of the Indian market both in terms of quantitative growth factors as well as qualitative initiatives. Post identification of the mindset of the Indian luxury consumer, we have conducted a synergetic strategy building exercise, in an attempt to make sure that there are actionable points, which will go on to ensure the best interplay between the 3 most important factors for a luxury brand, i.e. the product brand, the brand / reputation of the service provider and the price-value relationship of the luxury brand. 2 TABLE OF CONTENTS Getting to know luxury......................................................................1 Difference between regular & luxury goods...
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