"It's all about branding of Luxury Brand" hear you find the details about secrete of brand developing ideas & thought. how can be a brand make difference from other.Is it brief or hide something & how could you make a good brand of you own.May be It's sharp May be it's quite.

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Assessment Submission Form
Student Name Adnan Muidul Hasan
Student Number 091200019
Assessment Title Luxury Brands
Course Brand Management (MKT 405)
Lecturer Moniruzzaman Khan
Date Submitted
OFFICE USE ONLY
Date Received
OFFICE USE ONLY
Grade/Mark
Declaration of Authorship
I declare that all material in this assessment is my own work except where there is clear
and appropriate reference to the work of others.
 I hold a copy of this assignment if the original is lost or damaged
 I hereby certify that no part of this assignment or product has been copied from any other
student’s work or from any other source except where due acknowledgement is made in
the assignment
Signed………………………………………………. Date ……………………………………………

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EXECUTIVE 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 market both in terms of quantitative
growth factors as well as qualitative initiatives.
Post identification of the mindset of the 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.

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TABLE OF CONTENTS
What is Brand? .........................................................................................................................4
Getting to know luxury...........................................................................................................5
Difference between regular & luxury goods.........................................................................6
Characteristics of the luxury brand…... ………………………………………………7 to 9
Strategies for Luxury Marketing ………………………………………………… 10 to 13
8 P’s of Luxury Brand Marketing…………………………………………………… 14 to 22
KEY LEARNINGS & TAKEOUTS……………………………………………………….23
Conclusion ............................................................................................................................ 24
References............................................................................................................................. 25

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What is a brand?
When you think of BMW, what do you think of? Maybe you recall their slogan, the ultimate
driving machine, the sleek look and feel of their cars or the expensive price tag.
All are part of BMW's brand, and all work to reinforce the image BMW wants you to
remember: That theirs is a superior, expensive, top-of-the-line automobile.
Your brand is your promise to your customers.
BMW promises great cars. McDonald's promises affordable, predictable food. You want to
do something similar. You need to create an intentional thought and feeling in the mind of
consumers when they think about your business. That is called brand.
Brand Formation:
There are three distinguishing importance of great brands:
First, brands are unique: The whole idea behind branding is that you distinguish yourself in
a crowded marketplace. If you try and be everything to everyone, you will be nothing to no
one. Your brand has to be unique to your business, and different than other things out there.
And it must also be something at which you are great.
Second, brands deliver on their promise: Your brand must be based in reality. That is, it
must be linked to the culture, style, product and service of your business.
Take Whole Foods Markets for example. What is their promise, their brand?
Essentially Whole Foods promises that you will get fresh, healthy, quality, organic food in a
cool atmosphere. The chain (growing at a record clip, by the way) bets that you will be
willing to pay a premium price for that sort of product and experience, and they are right.
Third, brands are integrated: A quality brand is reinforced by everything you do: Where
your business is located, your prices, your customer service, everything.

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Getting to know luxury
“Why do I need to know how the watch market is doing? I’m in the business of luxury”,
Partick Heiniger, CEO, Rolex
Luxury brands have often been associated with the core competences of creativity,
exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. These
product attributes give the consumers the satisfaction of not only owning expensive items but
the extra-added psychological benefits like esteem, prestige and a sense of a high status that
reminds them and others that they belong to an exclusive group of only a select few, who can
afford these pricey items.
The luxury sector targets its products and services at consumers on the top-end of the wealth
spectrum. These self-selected elite are more or less price insensitive and choose to spend their
time and money on objects that are plainly opulence rather than necessities. For these
reasons, luxury and prestige brands have for centuries commanded an unwavering and often
illogical customer loyalty.
Luxury has never been something easy to define, yet this mystery concept is something
highly desired by one and all alike. We look at delving deeper into this mystery and aura of
luxury goods by way of comparing them against ‘regular goods’ as well as highlighting the
characteristics of the luxury industry. But before beginning with that, let’s first attempt to
understand some common terms associated in the world of high-end goods:
Luxury and prestige brands such as Rolex, Louis Vuitton, Lamborghini, Varghese, Chanel,
Prada, and levies, Rolls-Royce, Gucci, mcQ, omega and Cartier represent the highest form of
craftsmanship and command a staunch consumer loyalty that is not affected by trends. These
brands create and set the seasonal trends and are also capable to pulling all of their consumers
with them wherever they go.
Premium brands are those brands like Polo Ralph Lauren, Calvin Klein and Tommy
Hilfiger that aspire to be luxury and prestige brands but their marketing mix strategies are
more attuned to a mass market, albeit a luxury mass market. They are also termed as mass-
premium brands or mass-luxury brands.
Fashion brands on the other hand are those that address the masses.

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Difference between regular & luxury goods

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Characteristics of the luxury brand
1. Luxury means different things to different people
Luxury has no certified origins. But luxury branding is said to have taken birth in the
west with the appearance of high-end brands. To get an insight into what luxury today
means to different Americans, we take a look at the table below, compiled by
American Demographics in 2003, to understand how to develop target strategies for
various segments.
2. Luxury is a product category in itself
This can be best explained by the fact that both an expensive watch and an artwork
can be considered to be luxury items. Therefore, all luxury marketers are not just
competing in their ‘technically defined’ product categories (like manufacturers of
refrigerators compete amongst themselves) but for the wallet share of luxury goods in
total.
3. The meaning of luxury had changed
Luxury has moved from its ‘old’ meaning of ownership (also known as conspicuous
consumption - Conspicuous consumption is a term used to describe the lavish
spending on goods and services that are acquired mainly for the purpose of displaying
income or wealth rather than to satisfy a real need of the consumer. In the mind of a
conspicuous consumer, such display serves as a means of attaining or maintaining
social status. Invidious consumption, a necessary corollary, is the term applied to
consumption of goods and services for the deliberate purpose of inspiring envy in
others) of objects to the ‘new’ meaning of the experience / fulfilment derived from
possessing a certain object.

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4. Aura is more important than exclusivity
Exclusivity is something that cannot be ensured to a great extent and neither is it the
prime requirement of a luxury consumer. The consumer bases his decisions on the
relevance of the aura of the brand to his fulfilment or actualization needs.
5. Classification of luxury consumers
SRI Consulting Business Intelligence places consumers in 3 groups according
to what luxury means to them:
Luxury is Functional – these consumers tend to buy luxury products for
their superior functionality and quality. Consumers in this segment, the
largest of the three, tend to be older and wealthier and are willing to spend
more money to buy things that will last and have enduring value. They buy
a wide array of luxury goods, from artwork to vacations, and conduct
extensive pre-purchase research, making logical decisions rather than
emotional or impulsive. Messages that highlight product quality and are
information-intensive are powerful with this group.
Luxury is Reward – these consumers tend to be younger than the first
group but older than the third. They use luxury goods as a status symbol to
say “I’ve made it!” They are motivated by their desire to be successful and
demonstrate this to others. Luxury brands that have widespread recognition
are popular, however they don’t wish to appear lavish or hedonistic in their
appearance. They want to purchase “smart” luxury that demonstrates
importance while not leaving them open to criticism. Marketing messages
that communicate acceptable exclusivity resonate with this group.
Luxury is Indulgence – this group is the smallest of the three and tends to
include younger consumers and slightly more males than the other two
groups. Their purpose for luxury goods is to lavish themselves in self-
indulgence. They are willing to pay a premium for goods that express their
individuality and make others take notice and are not overly concerned with
product longevity or possible criticism. They enjoy luxury for the way it
makes them feel, therefore have a more emotional approach to purchases.

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6. Trading up
A mass of wealthy people have emerged the world over, give rise to a large section of
consumers who are now moving to luxury / premium brands, thereby creating greater
business opportunity for luxury marketers.
7. Emergence of luxury brands
Sea of luxury brands have emerged giving a wide choice to consumers, in all
segments of luxury goods.
8. Trading down
Today, fashion brands are giving luxury brands competition because of marketing
mix and branding strategies, which make it acceptable to pair these two brands. This
is something that was not practiced before.
eg. Wearing an Armani shirt with a pair of GAP jeans
9. Factors at play
In luxury marketing there is a subtle interplay between three factors that most
strongly influence the luxury consumer to buy: product brand; dealer or store’s brand
or service providers’ reputation; and price/value relationship
10. Customer loyalty is more important that brand awareness
Rather than focus on measuring the brand awareness of a luxury company, measuring
customer loyalty is far more significant a metric regarding the success or failure of
corporate strategy to connect with the luxury consumer.

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Strategies for Luxury Marketing
There are conventional foundations for ensuring success of a brand and they are listed below
in brief:
1. The brand must be “expansive”
Which means it should be full of innovation opportunities for the marketer and in terms of
satisfying the divergent needs of the luxury consumer
2. The brand must tell a story
It is this story, of either heritage or performance or other aspects that goes on to build the aura
of a brand over time. The story always accentuates the identity of the brand.
3. The brand must be relevant to the consumers’ needs
Depending upon the mindset of the luxury class, it is imperative for a brand to satisfy those
needs, whether they be for recognition or functional use etc.
4. The brand must align with consumers’ values
A brand that does not concur with the basic values of a consumer’s society has a small
chance of succeeding because luxury items are forms of expression or identification for a
luxury consumer. This makes it difficult for the consumer to adopt the brand in such cases.
5. The brand must perform
Irrespective of which category the brand belongs to, a performance assurance is a must for
the brand if it wishes to be in the evoked set of luxury consumers, considering the price being
paid for luxury.
6. The brand must be unique
Every item must be unique from other brands or product. It will raise the brand value and
product stability.
7. Based on inputs
Based on the inputs given above as well as an understanding of the decision making process
of the luxury consumer, we recommend the following paths for luxury marketers based on
what consumers really desire from their luxury brands, i.e. product brand, dealer/store brand
and price/value relationship :

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(The price / value relationship has been accorded less focus since the consumer is at a phase
when cost of luxury is secondary to its appeal / benefits)
 Brand Me Affluent!
It is turning out to be a raging battle for the luxury marketers in terms of customer
loyalty. The customer will switch to whichever brand that accentuates his
affluence.
TASK: It is essential for marketers to ensure that the recognition value of their brands is
always high so that it lends a sense of affluence to the consumer, which can only come if
others around him / her perceive the brand to be a top-notch luxury brand. This can come
from either being aligned with the most successful celebrities or being a part of elite events
and promotions.
There are also some luxury branding strategies available to the luxury marketer which can be
used since the consumer is obsessed with the ownership of a luxury brand but may not have
enough financial strength of acquire some of the luxuries.
Luxury brand strategies

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Additionally, it is also important to estimate the amount of efforts required for building
brand loyalty, which can be considered inversely proportional to the brand loyalty in a
category. An indication of the same is given in the table below:
Given the wealth escalation in the coming years, the consumers are ready to empty their
wallets in an attempt to go beyond satisficing their needs. They want the best, be it in
whichever category because it helps them relate to the feeling of being the best in their
fields, thus completing their sense of accomplishment.
 Luxury is having the world at my fingertips – First!
The “I’ve Made It” desire can only be achieved if a consumer has access to the
luxury products before anyone else. If someone else gains access to those luxury
goods, then that particular good becomes a me-too product.
TASK : A luxury marketer will not only have to be faster than his competitors in
reaching out to the consumer, to gain a share of wallet but also continuously offer
innovative products that serve to differentiate between the consumers.

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 “Ethnic Chic” – The Fusion of Local & Global goods
Consumer, while attempting to ape the West, also sees a sign of luxury in the
culture / royalty. Taking this point forward, a consumer also attempts to build a
connect with his roots while at the same time making efforts to achieve grandeur.
TASK: This point is connected to the strategy of a product being in line with the
consumers’ values for it to be adopted. Apart from this context, ethnicity is also a
fashion statement in many product categories such as
 You Think I’m Demanding? Next!
The quantitative figures do foresee a large population of luxury consumers. As it
happens in most cases where the segment size increases substantially, products
move towards standardization and service levels become low to achieve
economies of scale. However, it is important to understand that the luxury market
does not behave in this manner at all.
TASK: The marketer’s job should be a constant endeavor to offer newer luxury goods
to the consumer, in sync with their needs. In addition to that, marketers will need to
make sure that each and every single consumer has to be treated with a high-level of
personalized attention, given the nature of the product and the consumer. Even minor
shortfalls in this case will have the consumer shifting their brand preferences to those
marketers who can satisfy their needs better

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8 P’s of Luxury Brand Marketing
“I think every girl deep inside dreams about having the money to be able to buy the Louis Vuitton bag
or being at the red carpet herself and wear a beautiful Chanel dress”
Luxury brands have always been a fascinating space and luxury brand marketing one of the most
complicated ones. So, going by the above consumer quote, this paper attempts to decode what makes
Louis Vuitton, Louis Vuitton; Chanel, Chanel – in simple words what makes a luxury brand
desirable? What are the ingredients/components that make up a luxury brand?
Is it the physical / functional attributes like the product quality, craftsmanship, design, technology?
As one respondent in one of the qualitative research in UAE said “When you buy something with
really high-quality, you can genuinely feel the difference. It is in the touch, the feel of the material;
it’s in the smoothness, it’s in its minute details...”
Or is it the self-asserting emotional stimulation of letting the others know that I’ve arrived & I have a
penchant for finer things in life not common to many? A respondent said “I bought my BMW, just to
keep my key on the table during the meeting.” Another respondent said “If I stop at a signal I feel I
will attract attention of people”.
Or is it that luxury brands are just the stepladder to move to the right circle or an appropriate thing to
have or wear in that circle? A respondent said “There is a proverb which says if you wear nice shoes
you enter nice place”.
3 MOTIVATIONS - SELF ASSERTION, DIFFERENTIATION AND GENUINE
APPRECIATION FOR PRODUCT EXCELLENCE:
In my assessment, by-and-large the above are the three major motivators that drive people to desire
and acquire luxury brands. That said, it’s important to acknowledge that they are not mutually
exclusive.
Exclusivity has always been connected to luxury brands. But from the consumer’s perspective the
definition of exclusivity goes through an evolution. At the early stage, having the ability or affluence
to own a luxury brand desirable and recognizable by everyone is exclusivity. It is a means by which
consumers assert themselves - whether it is to fit-in or simply to make a statement.
As the consumer moves on and with more people joining the ‘ownership’ circle, just owning a
recognizable symbol is not enough – the new need to “differentiate” sets in to further confirm their
social status and to stand-out among the equals. The source of exclusivity, then, can manifest in form
of acquiring limited editions or something with extraordinary product capabilities or rare materials,
craftsmanship; it can also be driven by brand’s distinctive personality or simply the knowledge of the
brand legacy. One can also observe that people who seek differentiation tend to have larger repertoire
of luxury brands, have a choice of not-so-common luxury brands, have a definitive reason for their
choice and sometime even prefer to stick to specialist brands.
“I prefer to buy my watch from an expert watch-brand, not a fashion label.”
While genuine appreciation for product excellent needs no explanation, it’s a life style & a story.
- Qualitative research,
UAE, 2010.

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THE 8 P’S – PILLARS OF LUXURY BRAND MARKETING:
PERFORMANCE:
Performance refers to the delivery of superior experience of a luxury brand at two levels – first, at a
product level and second, at an experiential level.
At a product level, fundamentally it must satisfy the functional and utilitarian characteristic as well
as deliver on its practical physical attributes – a recipe of quality or design excellence ingredients like
craftsmanship, precision, materials, high quality, unique design, extraordinary product capabilities,
technology & innovation. For example:
On their 70th
anniversary,
Patek Philippe
unveiled a new
complicated
wristwatch. Along
with a unique
column wheel
chronograph
movement, the day
and month appear in
a double window at
12 o’clock, with a
hand indicating the
date around the
moon phase. The
leap year is
displayed in a small
round window at
4:30 opposite a
matching
Window for the day/night display at 7:30.
Like all the brand’s grand complications, it
has two interchangeable backs - one in
sapphire crystal that reveals the movement
complexity and the elegance of its
finishing, the other, a white gold solid back
that can be personalized with a dedication
or an engraving.
Omega Speedmaster Chronograph – the moon
watch:
Selection by NASA,
a walk in space in
1965 and since 1969
six mission to the
moon is what makes
this series with
extraordinary
capabilities. After it
became a life-saving
instrument during
the Apollo 13
mission, the Speed
master went on to
Become a symbol of
peace, as both
American & Soviet
astronauts wore it in
the first joint space-
mission during the
cold war. It never left
the Space Program as
it still the only watch
certified by NASA
for all EVAs (Extra-
Vehicular Activities).
A luxury brand must perform at an experiential level as well, i.e. the emotional value of the brand
the consumers buy into – beyond what the product is to what it represents. For example: Rolex
stands of symbol of heroic achievement & Tiffany is a symbol of love and beauty.

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PEDIGREE:
Many luxury brands have a rich pedigree and extraordinary history that turn in to an inseparable part
of the brand’s mystique. This mystique is generally built around the exceptional legendary founder
character of the past, making up an integral part of the brand story and brand personality.
So, when consumers buy say a Cartier or a Chanel product - it is not only because of the product
performance factor, but subconsciously they are also influenced by the brand’s rich lineage, heritage
and the years of mastery.
Coco Chanel started her
business in 1913 and within
a few decades, became a
revolutionary couturier.
Karl Lagerfeld took
the helm in the 1980s
and has been
modernizing the brand
ever since.
With Chanel Coco Mademoiselle
campaigns in 1981, 2008, 2009 &
the recent 2011, Chanel has
continuously leveraged its
pedigree / brand myst
Gucci opened the doors of its own museum in
Florence to mark the completion of the
house's 90th-anniversary celebration.
Similarly, Rolls-Royce celebrated the 100th
anniversary of its iconic emblem, the Spirit of
Ecstasy with '100 cars for 100 years' and featured a
collection of Rolls-Royce models, supplied by
members of the Rolls-Royce Enthusiasts' Club,
dating back to 1911
PAUCITY:
Over-revelation-and-distribution of luxury brand can cause dilution of luxury character, hence many
brands try to maintain the perception that the goods are scarce. Case in point - Burberry diluted its
brand image in the UK in the early 2000s by over-licensing its brand, thus reducing its image as a
brand whose products were consumed only by the elite. Gucci, now largely sold in directly-owned
stores, following a nearly crippling attempt to widely license their brand in the 1970s and 1980s.
Broadly, there’s natural paucity (the actual scarcity), the technology-led paucity and the tactical-
driven paucity.
Natural paucity is triggered by scarce ingredients like platinum, diamonds, etc. and/or those
goods that require exceptional human expertise, for example handcrafted quality that constraints
the mass production.

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Technology-driven paucity is as a result of conception-time involved in continuous innovation
and research-&-development process.
Tactical- driven paucity are more promotional in nature such as the limited editions or the special
series to generate artificial desire and demand. Another deviation within this is the customization of
luxury good, e.g. Garson USA custom made a diamond-encrusted Mercedes SL600 for Prince Al-
Waleed bin Talal of Saudi Arabia in 2007.
PERSONA:
The persona of a luxury brand is largely a result of – first, its distinctive projection plus coherence of
its applications across consumer touch-points and second, the brand communication through its
advertising.
The visual brand identity captures the brand’s personality, mystique & emotional values in a
nutshell. The distinct and consistent orchestration of the identity is central to establishing the
visibility, familiarity & common identifiable brand imagery. The visual brand orchestration can
manifest by way of its coherent application of its identity, the brand color(s), the other design
elements like icons, the uniquely identifiable design, branded environment and even the tone-of-voice.

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While the luxury brand’s visual identity is a fairly stable factor, luxury brand advertising is a more
dynamic and versatile marketing vehicle. While the pedigree of the brand has its role, keeping-up the
contemporary-appeal and the newness-factor is crucial for enduring brand relevance. Therefore,
luxury advertising not only needs to generate the desire for the seasonal collection, but at the same
time it must also enhance the brand’s cool-quotient, thereby making it continuously desirable and
aspirational.
At an overall level, luxury advertising messages
can be observed:
1.
As more emotional and sensual to
distance it from mass-premium brands
2.
Create a world and an aura that is
truly exceptional to their brand
signature
3.
Generate major differentiation in its
production and execution
One of the relatively new trends within luxury brand communication is the use of the long-form-
commercials or the short-film-videos to generate interest with the online audience. It is clearly a
pursuit where luxury brands are looking to bridge the gap between the familiar world of print and the
fast-evolving world of online. It has also proved impactful as in a matter of few minutes, the viewer
can have a clear understanding of the brand image or the story the brand is trying to convey or simply
promotion of the new collection.
The short-flash-videos at
Montblanc website focuses on its
craftsmanship legacy:
Louis Vuitton created a 3-
minute thematic video for
its ‘journey’ campaign.
A one-and-half minute video
by Tiffany & Co. focuses on
promoting gifting during
holidays.

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Apart from these, with the intent of enhancing the ‘emotional connections’ with discerning mindsets,
luxury brands have been exploring the digital space by engaging them in their activation programs.
The objective is to generate a genuine affinity with the brand that transcends beyond the product, to an
extent where, the consumers feel that they have found a soul mate.
With the objective of strengthening the brand’s
association to love and romance Tiffany & co.
launched and iPhone app as a guide to those who
want to take their romantic relationship forward.
The website also showcases select true love
stories of real people to give that personal touch.
In line with its brand essence of ‘symbol of
heroic achievement’, each year
rolexawards.com showcases pioneering projects
of real people that demonstrated innovative
thought and betterment of human-kind.
Thereby, establishing a personal affinity with
their audience, beyond celebrity endorsement.
Some of the luxury brands have also utilized the social media. The objective may not necessarily
be, as deep as, engaging the audience in their storytelling, but it has been done largely to generate
the desire or the lust for the brand or the product. It is also an effective tool to keep-up the
contemporary-appeal and the newness-factor by having a continuous dialogue.
Gucci has
successfully
kept their high
numbers of
Facebook fans
engaged by
continually
updating their
content, thereby
sparking
conversations in
the form of
‘likes’ and
‘comments’.
Jimmy Choo organized a real-time treasure hunt around
London via Foursquare to engage fans both online and off.
PUBLIC FIGURES:
Public-figure or celebrities have been traditionally employed as one of the marketing mix in luxury
brand advertising and they still continue to garner attention, credibility and impact. Public figures can
span from film-stars to music personalities, from sports personalities to royal families and even the
designer themselves. But because celebrity endorsements are no longer exclusive to luxury space and
extensively used (and abused) across mass categories, it take a different meaning when it comes to
luxury brand endorsement.

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Accessorization or dressing celebrities for their walk down the red carpet, product placements
within movies and television programs, invites to special events. This strategy attempts to remove
the appearance of “selling” while still promoting the product by making it seem as a part of the
celebrity’s lives, thereby positively affecting consumer’s attitudes, brand value & purchase
intention.
Chopard has been official
partner of the Cannes Film
Festival since last 14 years,
showcasing and premiering
their collection by accessorizing
celebrities on the red carpet.
The Lebanese singer and
UNICEF goodwill ambassador
Nancy Ajram was Cartier’s
special guest at the Cartier
International Dubai Polo
Challenge held in Dubai, UAE in
2010.
Omega have sponsored the
James Bond franchise since
1995 – earlier with Pierce
Brosnan and now with Daniel
Craig
Long-form-commercials / short-films have also utilized the celebrity-factor. Chanel for instance
recently created 3-minute short film with actress Keira Knightley who replaced Kate Moss in its ads
for its Coco Mademoiselle fragrance. Other previous faces of Chanel have included French star
Catherine Deneuve and Nicole Kidman, who represented Chanel No. 5.
Similarly, as a part of their ‘core values’ campaign, Louis Vuitton used their website as the online
medium to showcase their celebrity endorser’s journey, their story to bring to life how the brand has
been promoting the art of travel and inspiring legendary journeys.
The Coco Mademoiselle campaign with
Keira Knightley
Angelina Jolie’s journey, her story (her journey to
Cambodia) is one of the celebrity stories featured
on Louis Vuitton website
PLACEMENT:
The retail branded environment in luxury branding is
all about heightening the consumer’s brand experience
and amplifying the brand aura. Hence, the branded
environment, the movement of truth, is where it must
“live” the brand by orchestrating immaculate
detailing that engages all senses of the discerning
audience. Starting from the choice of store location,
the chain of touch-points consumer interacts, the
salesperson’s presentation and the impact of each
touch-point is critical in creating an experience.

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That said, today’s evolving luxury consumers are increasingly seeking beyond the typical
sophisticated, over-the-top, cosmetically elegant presentation or even the exclusive invites, privileged
previews. With the increasing democratization of luxury brands and the rapid emergence of massive
brands – the luxury consumers have become more discriminating and demanding. They are seeking a
more knowledgeable and lifestyle
E.g.: Quintessentially, a British company with 60
offices worldwide describe themselves as a ‘luxury
lifestyle company’ that provides concierge services
to affluent and high net worth individuals. Their
services include exclusive access to the hottest VIP-
events, cultural happenings, once-in-a-life time
experiences, top restaurants, clubs, spas and hotels,
access to fine wines, private jets, luxury cars and
yachts, party planners; art, education and
investment consultants; travel and adventure
specialists, bespoke gifting and styling services
Another important point to note within the placement factor is that it is not limited to the physical
environment where the brand retails, but it extends to all the environments or consumer touch-points
that the brand associates itself with. This spans from the extremely selective niche media where it
advertises to the sports, the events, art, conversations that it places itself with.
If luxury is about environment and aesthetics,
then fashion magazines like Vogue, In Style,
Vanity Fair, Harper’s Bazaar, etc. provide that
complementing environment and aesthetics for
luxury brand to advertise in print media.
Rolex associates itself with more than 150 events in
golf, sailing, tennis, motor-sport, arts and at
equestrian tournament vs. associating with sports
like football / cricket that have more mass
following.
Due to their origin in the writing culture,
Montblanc supports and honors modern-day
patrons of the arts through forums like De La
Italian carmaker Maserati placed its Gran Turismo
coupes in "a guerrilla-style-product-placement for
the 2011 Limitless movie where the maincharacter
needed a ride to express luxury, style and
performance.

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PR (PUBLIC RELATIONS):
PR in luxury branding plays an enormous role in image proliferation of the brand, thereby subtly
influencing public opinion. It is also employed to convey other supporting messages and attributes of
the brand which cannot be explicitly captured in advertising, but by no means are less important to
create brand’s personality, mystique and emotional values – whether it’s via the pedigree factor or
via public-figure any of the previous 7 P’s mentioned.
It is also a sophisticated branding machine for maintaining ongoing relevance and dialogue with the
luxury consumer, especially so in fashion, technology and seasonal trends driven categories. At a
tactical level, PR is utilized to generate buzz & convey the brand news, point of views of inspirers and
influencers (celebrity talk or the designer speak), a crucial support for brand activation (like the
fashion weeks, sport-events, themed previews, etc.).
PRICING:
Pricing plays a quite a big role in the way consumers perceive luxury brands. Consciously or sub-
consciously, consumers tend to generate a mental luxury stature or image with the price-range that the
brand operates. Therefore, it is important for luxury brands to price themselves right – as setting the
price lower than the consumer expectation and willingness to pay can potentially harm the brand
value, whereas the reverse can potentially not given enough justification for consumers to go ahead
and buy.
The pricing strategy in luxury brands gained spotlight in the recent past not only because of the
challenging economic environment, but because of more informed-and-exposed consumers who are
more discriminating and demanding, for whom premium pricing without substance doesn’t imply
luxury. A recent research by Unity Marketing suggests that affluent shoppers won’t spend ten-times
more for something only three times better. The luxury-brands must, therefore, justify their price
through the interplay of the 7P’s mentioned on top, thereby keep-up and maintain a higher perceived
value.
The sales promotions also tend to be handled differently by luxury marketers. While few have
resorted to sales and discounts, most others play it by adding more value to the purchase like gift with
purchase, gift-certificates or rebates for the next purchase, multiple item discounts, online or email
exclusives, more loyalty points, no shipping and handling charges by online retailers, etc. Luxury
brands also use the channel of luxury retailers like Harvey Nichols, Saks 5th
Avenue who offer annual
sales by offering them slightly lower prices.

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Another way employed by luxury brands is by creating an extension into a secondary
line with relatively lower price points like Giorgio Armani’s - Armani Exchange,
Roberto Cavalli’s - Just Cavalli, Prada’s – Miu Miu, Alexander McQueen’s - McQ
lines.
KEY LEARNINGS & TAKEOUTS:
In conclusion, the key to luxury brand marketing boils down to the following three
points:
1. Product excellence by itself in not enough, the luxury brand must perform at
an experiential level as well. As luxury consumers evolve, not only these act
as points of differentiation, but also as ‘substance’ to justify a premium value
and pricing.
2. While pedigree factor is important to exuberate the years of mastery or
lineage, it is crucial to generate ongoing relevance and dynamism through
the persona, PR & public-figure factor.
3. Luxury brands must continue to maintain a certain degree of exclusivity and
stature with the paucity factor and the placement factor – from the retail
experience to the touch-points it associates itself with.
The 8 P’s of luxury brand marketing can provide a holistic framework to luxury
marketers. The 8 P’s may not be a
“Universal methodology”, yet it presents a strong analytical “toolbox” to audit and
leverage the brand potential. That said, a pragmatic approach must be underlined,
as the situation and challenges would differ from brand-to-brand and market-to-
market.

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Conclusion
The starting point for identifying successful luxury brand strategies in World has been
established by identifying certain salient aspects of luxury brands that remain constant
as well as identifying the stage of mindset of the consumer towards these brands.
The focus is now towards ‘how soon’ luxury brands will enter the market to gain a first
mover advantage, which is of significant importance in World. Apart from how soon,
we primarily focus on ‘how will’ luxury brands cater to the mainly aspirational needs of
the consumer.
A word of caution that goes for luxury marketers, irrespective of their brands and
geographical presence – The luxury consumer is always looking for newer ways to
satisfy his continuously changing needs. Hence, the need to keep a close tab through
insightful research is of prime importance.
As far as World is concerned, given the rapidly accelerating affluence of the masses, the
scenario is set to witness a boom. The ones who will be riding the wave will be the ones
who’ve kept their ears open to each and every word of their each and every customer.
After all, in the luxury business, no marketer can afford the luxury of treating its
consumers as a loosely bunched segment.

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References
Articles
1. Eight Things That Every Marketer Needs to Know about the New Luxury Market;
Pam Danziger
2. The Changing Face of Luxury; Patricia Graham and Marcus Matthews
3. The Psychology of Travel – What is Luxury?; STAR Group
4. How to Build a ‘New Luxury’ Brand; Unity Marketing
5. The Unmistakable sign language of luxury; Hindu Business Line
6. What Becomes a Luxury Brand Most?; Chief Marketer.com
Books
The concept of Luxury brand by Klaus Heine.
Websites
1. unitymarketing.com
2. hindustantimes.com
3. brandchannel.com
4. britishluxurycouncil.com
5. wikipedia.com
6. brandnoise.com
Secondary Research
1. Inside the Affluent Space; American Express study by Peter Raj Kapoor
2. What people perceive as luxury; American Demographics 2003
3. Research on the factor of 8p’s to luxury brands in UAE. 2010