Luxury Marketing Plan Odyssea Yachts

Mahindra Odyssea – A Marketing Plan

Table of Contents Understanding the Luxury Boat Buyers ................................................................................................4 Market Segmentation of Luxury Boating Consumers .........................................................................5 Insights ..........................................................................................................................................9 Overall Marketing Communications Framework for Luxury Boats........................................................11 Generate awareness and interest in the boating lifestyle .............................................................12 Advertising............................................................................................................................12 Public Relations .....................................................................................................................12 Qualify prospects and provide them with meaningful information ...............................................13 Interactive Marketing ............................................................................................................13 Innovative Proposition ...........................................................................................................13 In raptures Experience ...........................................................................................................14 Enhance the consumer retail experience ........................................................................................14 Dealer & Product Certification ................................................................................................15 Cult Marketing ......................................................................................................................15 Conclusion .......................................................................................................................................17 Bibliography.....................................................................................................................................17

Acknowledgement I take this opportunity to thank Mr. Patrick Coote, Marketing Director at Fraser Yachts Monaco S.A.M, for his guidance during the course of this document preparation. His expertise both in the function and the Industry was an invaluable learning experience to say the least. I also take this opportunity, to thank Mrs.Jaya Tripati, Mentor, who took the pain to review the document and helped me make it even better. Her functional expertise helped me refine the document better. Context Setting The main reason behind drafting this document is to demonstrate my Passion in making a mark in this field of Luxury Marketing along with Mahindra Odyssea. I am keen to explore my fitment with Mahindra Odyssea to take this passion, further.

Understanding the Luxury Boat Buyers Before understanding the luxury boat market segments, it is important to understand the prospective boater and the characteristics that define him or her. The below understanding is based on the survey conducted in the United States. Even though the survey is foreign, it definitely throws some insightful light on a typical luxury boat buyer. People who like to go boating are viewed as liking the outdoors, being adventurous, relaxed, social, outgoing, energetic and family oriented, and as not minding to get dirty. They are less likely to be viewed as introverted, religious, spiritual, stressed, and as being retired. Current and prospective boaters and anglers are “down to earth” people. They tend to believe that relationships are more important than possessions, dress casually, believe people should take them for what they are, and make their clothes last. These people are also concerned about the direction of society, like spending free time at home, also spend free time relaxing, buy clothes for comfort, like trying new things, believe it is worth paying more for quality, and sometimes treat themselves.

Market Segmentation of Luxury Boating Consumers Having understood the generic characteristics of this group, let us now try to segment this market. Market segmentation allows us to differentiate the market into more or less homogeneous groups. These groups often tend to respond differently to marketing strategies and messages. Segmentation analysis enables the marketer to target a specific marketing mix to each segment, making marketing easier, more efficient and more successful. This segmentation analysis identified four boating and fishing segments. Based on the characteristics that identify these groups, the segments have been named: Leisure Seekers Thoughtful Loners Family Folk Thrill Seekers These segments are analyzed and described on the pages that follow.

Leisure Seekers place a premium on getting rest and relaxation from their recreational activities. It is also important to them that they are free from responsibilities. They are not especially concerned about who their company is for their leisure activities – alone, with family or with friends is fine with them. They are the least likely of the four segments to value recreational activities because they let them spend time with their children. Recreational boating provides the benefits that Leisure Seekers value in recreational and leisure activities. They find it restful and relaxing, and it frees them from responsibility. They view boating as not requiring a high level of skill – also a form of freedom. Like Leisure Seekers, Thoughtful Loners enjoy activities that are slow, relaxing and restful. Unlike Leisure Seekers, Thoughtful Loners enjoy leisure activities that provide more than simply rest. They seek a sense of accomplishment from recreation through using their brains and gaining or enhancing skills. They get a sense of independence from their favorite activities – which they prefer to do alone. Thoughtful Loners like to boat because it is restful and relaxing. They also appreciate the connection with nature they experience in boating. They can participate alone and feel a sense of independence. However, certain other attributes that this segment values do not characterize their experiences of boating: a sense of accomplishment and the opportunity to use their brains. While they do value the opportunity to go boating alone, this rating is much lower than would be expected if spending time alone truly characterized their boating experiences. In comparison to the other segments, Thoughtful Loners place the least value on spending time with friends while boating.

Spending time with family and children is the primary criterion for recreational activities among Family Folk. Other criteria that appeal to this segment include activities that are restful and allow laughter and a connection to nature. Family Folk are a natural fit for boating in that it provides the benefits they seek in recreational and leisure activities. They value it because it lets them spend time with their family and is good for their relationship with their children. They appreciate its restful quality and that it can be experienced at a slow, relaxing pace. They are sensitive to its connection with nature, and they like that it allow them to laugh.

Thrill Seekers like activities that get their adrenaline flowing. They like activities that are challenging, exhilarating and exciting. They do not want slow paced recreational activities, and they do not enjoy recreation alone. Thrill Seekers are the most likely of the clusters to say that they enjoy recreational activities that are like a party. The adrenaline-driven Thrill Seekers like boating because it provides experiences that they value – exhilaration, excitement, challenge and a sense of independence. They also appreciate the fun (laughter) of boating and the opportunity to develop and improve their skills.

Insights Regardless of the recreational or leisure activities anglers and boaters participate in, they seek are release from stress in their recreational and leisure activities. The importance of release from stress is so high; it does not differentiate boaters and anglers, active, lapsed or prospective. Virtually all are looking for a release from stress. But, boaters and anglers seem to find this release from stress in different ways. For others, being energized and excited seem to be releases, and participants are to specific recreational and leisure activities because the energy and excitement they experience are a sense of release. Sometimes, being able to laugh or feel a sense of accomplishment are reasons to participate and provide release from stress. Grant Thornton's 2005 International Business Owners Survey (IBOS) has revealed that urban Business owners of India are the fifth most stressed out folks globally. This segment is exactly the target market for our Luxury yacht. Therefore position Boating and Yachting culture as a stress buster, a getaway from normal stressful routine

Friends and family play important roles in boating and fishing as companions who also participate -- or maybe just go along -- in these activities. Boaters most frequently go with spouses / significant others, their friends and their children. These relationships may also play an important role in attracting new participants. Prospective boaters are particularly likely to anticipate going with their spouses or significant others. Hence position Boating and Yachting culture as a Relationship enabler, be it friends or family

Overall Marketing Communications Framework for Luxury Boats The above is a self explanatory framework for marketing communications in Luxury Yacht Marketing. In India, boating culture is at its nascent stage and hence the demand for the same must be created. Hence the market could be bucketed into: Not Interested – In the Aspect of Boating - Not to be targeted Interested – But have not much of clue about boating – Yet to be qualified Considering – Adequately informed – Qualified prospect Shopping – Decision made to Buy – Close to $$$ The enabling factors for the same would be: Dealer Sales and Service The Quality of the end product Access to water bodies

The following are the strategies that could be adopted to increase the interest levels in Boating amongst Affluent Indians and motivate them to become owners quickly: 1. Generate awareness and interest of the boating lifestyle 2. Qualify prospects and provide them with meaningful information 3. Enhance the consumer retail experience Generate awareness and interest in the boating lifestyle This could be achieved through the following three tactics: Advertising Public Relations Research Advertising - Mahindra Odyssea Ad campaign that is regional, as spread evenly or clustered around seaside towns and areas of greater household incomes and geared toward generating awareness of the boating lifestyle. Media mix to include cable television, on-line banner and search advertising along with magazines.Emphasis will be to generate qualified leads and measurement of each medium to the best of our ability. Also, it is of paramount importance that Mahindra Odyssea builds a response mechanism on all advertising so you can track all media spend ROI Tools – The following are the tools/enablers that would help Odyssea to reach out to i ts target audience to increase awareness amongst them regarding Leisure Boating: Website – Buyers of your products are highly likely to have web access. Make sure your site is awesome, easy to use and stunning dedicated to Mahindra Odyssea Boating and its luxuries Free DVD’s – Start distributing “Get Started on Boating” DVD’s that goes a step further than the website and explains the culture of “Boating & Fishing” Public Relations - A year-round strategic public relations plan that promotes the boating lifestyle, supports the Mahindra Odyssea Boating advertising campaign and brand, while driving consumers to mahindraodyssea.com. Budgets to include, various national, regional and local consumer media

programs and expenses, satellite and radio media tours, media outreach programs, strategic media events, and comprehensive press materials and collateral. Tools – The above could be achieved by securing : A minimum of two feature stories in national long lead publications with a circulation of at least 1 million A minimum of 20 total broadcast segments within the top boating markets A minimum of 40 feature print stories in the top Business and Lifestyle dailies A minimum of two national television placements. Also establish new relationships with a minimum of ten key national media via a press event, one on- one meetings and/or desk side media visits. Existing M&M Branding Agency and media connects could be leveraged for the same. Qualify prospects and provide them with meaningful information Having reached out to the desired target market, it is important to motivate interested consumers to become Boaters more quickly and hence qualify the leads that we receive through the website, dealers, to concentrate on the low hanging fruit. The following are the tactics that could be achieved to move closer to the sale: Interactive Marketing Innovative Proposition In raptures Experience Interactive Marketing – The dealer or Odyssea marketing manager, to design your ideal customer profile and score the prospect with respect to the ideal profile and target those who are close to your ideal profile. Innovative Proposition - Ravi Dhar, a marketing professor and Director of Yale’s Center for Consumer Insight, places what might be termed “ownership fatigue” in context. Dhar notes that, thirty years ago, people owned fewer things. As a result, there was a lot more attachment to, and value placed on, those things. Nowadays, the proliferation of options means less commitment, enabling consumers to enjoy a

product temporarily before moving onto the next one. Fractional ownership of luxury goods has now been introduced, enabling the affluent to share the cost of an acquisition they enjoy only a few days a year. It is inspired by the time-share model, but is more exclusive and often comes with an equity stake. Exclusive Resorts is a good example of fractional property ownership. Homes in their portfolio are worth on average $2.5 million, and memberships cost nearly $400,000 with annual dues between $15,000 and $25,000. In order to make sure that its members can easily access any given property, this company maintains a ratio of six to seven new members to every one house. (Keeping in mind “Trading Off ” as part of the equation, the new equity models from companies like M Private Residences might be slightly more attractive for others.) Odyssea could consider a similar pricing strategy, as this would significantly reduce the cost of ownership of the luxury yacht and hence would increase its customer base. Odyssea could consider a mechanism of four to five owners per yacht. But This concept has not taken off in the global luxury boating industry. According to Mr.Patrick Coote, Marketing director at Fraser yacht’s Monaco “Fractional ownership may sound like an easier selling job but remember you have to sell to five times more people. This has never taken off in the boating world although new companies try it every year. In reality, owners always want to use the boat at the same time in the same season” This needs to be explored from an Indian context, as Indians are always considered to be value buyers. In raptures Experience – All we have done till now is to sell a dream. Having qualified the prospects and are sure of $$$ from them, it is time to make them experience the ecstasy of Boating. The dealer of Odyssea or Odyssea Marketing, can organize for one hour or half a day experience to its prospect to close the sale. According to Mr.Patrick Coote, “Nothing sells a boat more than getting people on it to try out on the water. I’d suggest regular client days at a waterside location to get people experiencing the product. Your only costs will be some petrol, drinks and snacks!” Enhance the consumer retail experience

It is all about consumer experience in Luxury retail Marketing and hence tremendous amount of professionalism needs to be brought into the same. This could be achieved through: Dealer & Product Certification Cult Marketing Dealer & Product Certification: Certification of dealer processes, facilities and the product itself, is one way of enhancing customer experience as this delivers a positive message to the retail consumer that they are purchasing a “Certified products “through a “Certified dealer” will enhance the boating experience, creating consumer value. For example, in the United States, you have certification programs like “The Marine Industry Dealership Certification” which certify the processes followed by the yacht dealer. Also in the US, all boats sold must meet U.S. Coast Guard minimum regulations. NMMA Certified boats must also meet the more comprehensive standards set by the American Boat & Yacht Council (ABYC). ABYC standards cover more systems and components than USCG regulations. NMMA Ce rtified boats undergo third-party inspection to ensure all applicable standards are met; the result is a thoroughly inspected, high-quality boat for you and your passengers. The above standards could be voluntarily adopted by Odyssea Yachts to confirm the quality of products that the end consumer buys. Cult Marketing: The pursuit of luxury is often a passionate endeavor and the affluent can be very passionate consumers. In many instances, it is their passionate nature that has put them in the position to access the luxuries that comprise their lifestyle. In the United States today, in particular, the lion’s share of wealth is accumulated through business ownership (or sale) and employment compensation; the passion for success in business and professional life is mirrored by passion for the lifestyle choices their wealth enables them to make. Whether they are collectors, connoisseurs or communities of like-minded individuals, passionate consumers are brand advocates respected by their peers and a brand marketer’s best ally. Whether they’re collectors or not, connoisseurs are people who their friends respect for their knowledge. Passionate individuals rarely stay isolated. Rather they share their passion with like -minded people. Fellow collectors share a faith that has been likened to that of religious believers. In fact, the only people who can teach things to a true collector are other collectors and hopefully the brand itself.

Harley Davidson, the legendry motorcycle manufacturer has a marketing spend that amounts to 1.8 percent of total revenue number. Compare this to a Coca Cola and the number zooms to more than ten percent of Coca Cola’s revenues. This is purely because of the cult brand following HD created for it. A cult is the result of people’s opinion of your products and the owners of your product. Therefore you have to find a way how you can influence people's opinion, attract a certain kind of customers that represents your brand image and give them a sense of belonging to somewhere. Like a TRIBE. A tribe is basically a group of people connected to each other, to your products and your brand. Successful marketing increasingly includes the task of cultivating, nurturing and developing a tribe and its members. Instead of following the top-down approach which is the core of "brand management" , "tribal marketing" focuses on each individual that gives permission to be part of your brand and convert him into a passionate and loyal follower that will spread the marketing message for you. HD offers a lesson or two to Odyssea, as stated by a Boston based consultant, “ I don't know of any company, and I've worked with all sorts of companies," he said, "where the senior executive team goes out to the Four Corners and spends over a week riding with a group of customers to an event celebrating the product. It is the company that is closest to its customers, thus creating passionate customers”. Hence Odyssea Yachts should adopt the following tactics to create a Brand that invokes passionate response among its consumers Build The Odyssea Community: 1. Start a Odyssea Yacht owners community like “O.O.G – Odyssea Owner Group” 2. Sponsor Yacht rallies for owners of Odyssea Brand, offer special promotions 3. keep Odyssea owners in close contact with the company and each other, creating a family like atmosphere among members 4. The showroom should also be constructed as a hangout place for Odyssea yacht members 5. Offer factory tours so customers can see their yacht being built. This touches the emotional side of their purchase as they can literally see their baby coming to life and can witness the love, care and attention to detail being spent on it 6. Give the Odyssea Brand, a aspiration value 7. Get your clients passionate about your brand and they in turn would become your brand ambassadors

Conclusion The report demonstrates self’s knowledge on the target market and the tactical game plan to convert the target market to profitable $$$ Bibliography The following are the reference materials that enabled preparation of this document: The Six P’s of Luxury Marketing – Winsper Luxury Grow Boating Initiative – Strategic Plan Recreational Boating & Fishing Foundation – National Survey: Final report

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Luxury Marketing Plan Odyssea Yachts

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Luxury Marketing Plan Odyssea Yachts — Document Transcript