Pomellato case Study


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Pomellato case Study

  1. 1. Pomellato and its Facebook Strategy Agate Elie & Donna McCullough December 20, 2011 Pomellato is a luxury Italian jewelry brand with boutiques in Europe, Asia and theUnited States. The brand operates three boutiques in the United States and has plansto increase its market share. The marketing director performed a competitivebenchmarking analysis and has uncovered that the brand’s Facebok page has attractedonly 800 fans, and has little to no engagement. He questions how this can be? We have celebrities such as Cameron Diaz andTilda Swinton endorsing our products? (See exhibit 1) We should have thousands offans on our Facebook site and provide and engaging and interactive experience that willempower our fans to purchase our products. However, it is important to know that thebrand is not generating any online revenue, but only through retailers and Pomellato’sboutiques. The marketing director met with the head of business development anddecided it was time to hire a social media specialist who could develop and implement arobust strategy to heighten the awareness of the brand on Facebook. The social media specialist realizes that the company established a Facebookpage but never maintained the page, nor developed a strategy to engage consumers. Itis like starting from scratch. However, he notices that each time they post on the wall,fans like it and comment on it. He also knows that if the community is small it is becauseAmericans are not aware of the brand. So far there are two personalized tabs, onefeaturing an advertising movie, and posts which are not written regularly (about once amonth). He peruses the page and sees no links to the brand website; there was nointegration with the brand’s website or any other digital platform. (See exhibit 2)
  2. 2. After talking to his manager he realized that the brand was missing out on theopportunities that Facebook provides. No one at the company maintained the pagebecause they did not know how to create a Facebook page that would both control theimage of the brand in order to keep its prestige and that would still engage the fancommunity. He was aware that the luxury industry had some reluctance to invest insocial media because of that same reason. The specialist conducted research about how luxury brands optimize socialmedia. The research concluded that luxury brands manage their Facebook pagesdifferently than consumer brands. In general, luxury brands tend to attract fans but don’tencourage much interaction. Luxury brands are often challenged by the need to identifysolutions to encourage engagement while maintaining the control of the brand. Additional findings from his research indicated the following 1) brands onFacebook need to participate in sharing, interaction, and compelling content 2) brandsshould post product highlights, 3) brands should offer a fully integrated experience thatbrings additional value. The social media specialist identified two primary objectives: 1) Create a largeengaged community and, 2) maintain control of the prestigious brand image. How washe going to meet his objectives with the following questions that needed answered.How does a luxury company like Pomellato create an engaging relationship with fans onFacebook without losing its prestige? Which type of content should we use? Whatadditional value would the Facebook page bring to fans? Now that social media isentering the marketing sphere, should we think about the Luxury Industry in a differentway? What strategy should Pomellato adopt on Facebook? Until he could answer thesequestions he did not feel comfortable revising the brand’s Facebook page.
  3. 3. Exhibit1: Advertising for Pomellato with famous actress Tilda SwintonExhibit 2: Pomellato website