SELL without SELLING Luxury Good Marketing Khunteta & Khurana
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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
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