Sell Without Selling

SELL without SELLING

Luxury Good Marketing Khunteta & Khurana

Luxury Goods

Products which are not necessary

Luxury Goods

Products which are not necessaryTend to make life more pleasant

Luxury Goods

Products which are not necessaryTend to make life more pleasantOften bought by individuals with high disposable income

Luxury Brands

Core competences of creativity, exclusivity, craftsmanship

Luxury Brands

Core competences of creativity, exclusivity, craftsmanshipSatisfaction of owning expensive items

Luxury Brands

Core competences of creativity, exclusivity, craftsmanshipSatisfaction of owning expensive items Added psychological benefits like esteem, prestige

How is the luxury sector different ?

Small to medium(in respect to revenue)

Large

5000 employees 116000 employees

Company Size

How is the luxury sector different ?

Large

Eliminated, merged in case of losses

Small to medium

Generally negative operational profits, stretched for long periods

Loss Handling

(To be) Eliminated, merged in case of losses (24/7 Wall Street)

Incurring losses for the past 22 years.

Still operational.

How is the luxury sector different ?

Small to medium

Generally negative operational profits, stretched for long periods

Break even Delayed/ No short term impact of strategic decisions

Large

Eliminated, merged in case of losses

Break even less delayed/ Short term impact of strategic decisions

Creative director changed-> Sales dropped after 1.5 yrs

30% global - 70% local -> immediate rise in sales

Impact of Short Term Strategic Decisions

7 Major luxury Sectors

Framework Based On Case Study

Framework

Who are you ?

PriceBrand AwarenessFlagship StoresSuperior Products

Rational

Flagship Store

Christian Dior flagship store (Paris)

Framework

You and I !?

Status relationshipStatus storiesSatisfy role-playing aspectsRelationship with symbolic meaning

Relational

Stories

Story to connect with travellers. Angelina Jolie for Louis Vuitton (2011)

Framework

What about you ?

Memorable brand experienceHigh social approvalHigh on hedonism (status, esteem)Satisfy emotional desire

Emotional

The most iconic ad. Marilyn Monroe for Chanel No. 5 (1952)

Framework

What are you?

Attributes may be compensated for designExtravagant designsKnown for unique craftsmanshipNot known for extensive product use

Functional

8ps of Luxury Branding

Performance

high qualityunique designextraordinary product capabilitiestechnology & innovation

ex : Patek Philippe’s 70th anniversary

Performance

Patek Philippe 70th Anniversary Limited Edition watch, 2009

Pedigree

extraordinary history that turn into an inseparable part of the brand’s mystique

ex : Gucci Museo in Florence Italy

Paucity

Creating a sense of scarcity

Natural : Jewelry (rubies, emeralds)Technological : Continuous Innovation makes newest product scarceTactical : Limited Editions

Mercedes-Benz SL600, Luxury Crystal Benz, studded with 300,000 Swarovski crystal glass, are displayed at the pavilion of custom car accessory company Garson/D.A.D at Tokyo Auto Salon 2009

Sensorial and emotional brand identity : logos, visual ads, movies, sounds

Persona

Rolls Royce Logo and Phantom Persona

Public Figures

Celebrities and public figures are employedgrab attention, credibility and impact

Example: Brad Pitt for NO5.

Brad Pitt for Chanel No. 5 (2012)

Placement

store location, consumer interaction, salesperson’s presentation.

Create a unique indulging experience. ex : Dior Store, NYC

Christian Dior emphasises a lot on placement (NYC)

Public Relations

Assure premium support and care for customers and channels like : fashion weeks, sports* events and themed previews

*equestrian, golf and tennis

Rolex sponsors major international equestrian events in distinct disciplines. Most recently, the brand partnered the Rolex Grand slam of show Jumping, a global initiative created in 2013

Pricing

consumers relate luxury to price of goodsbrands price their goods higher than expected

richness -> luxury

Luxury brands never display their prices and create a sense of luxury. (Harry Winston, 2014)

Conclusion

Product Excellence + Brand’s Performance

Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

Must maintain exclusivity

Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

Must maintain exclusivity

8Ps may not be the universal method, but provides an strong analytical toolbox

Thank You

Khunteta & KhuranaLuxury Good Marketing