SlideShare a Scribd company logo
1 of 48
LUXURY BRAND MANAGEMENT
A PRESENTATION ON
THE WORLD OF PRIVILEGE
FOR EDUCATION PURPOSE ONLY
This slide deck was compiled because the notion of luxury is so central to contemporary consumption, but academic and popular
business publications about luxury business, and importantly, luxury branding has been largely conceptual.
“Some people think luxury is the
opposite of poverty. It is not.
It is the opposite of vulgarity.”
- Coco Chanel
HOW IS THE LUXURY SECTOR DIFFERENT?
Every brand manager is quick to assert that their
business or brand is different from any other, but
those managing luxury brands are possibly the
only ones who are justified to claim such massive
differentiation in their businesses and brands.
BRAND
AWARENESS
GAUGE
Luxury brands enjoy very high
brand awareness - both aided
awareness and top-of-the-
mind awareness. Allow me to
explain the high awareness by
taking a luxury and non
luxury brand as an example.
REVENUE BY BUSINESS
(millions of Euro)
12/31/2012 12/31/2011
AUTOMOTIVE 38,229 42,710
EQUIPMENT 17,365 16,190
FINANCE COMPANIES 1,910 1,902
ELIMINATIONS -2,128 -2,293
TOTAL 55,376 58,509
REVENUE BY BUSINESS
(millions of Euro)
Until
10/31/2012
12/31/2011
DIOR COUTURE 1,003 1,000
WINES/SPIRITS 3,216 3,524
FASHION GOODS 7,977 8,712
PERFUMES/COSMETICS 2,993 3,195
WATCHES/JEWELRY 2,300 1,949
SELECTIVE RETAILING 6,099 6,436
ELIMINATIONS -252 -188
TOTAL 23,336 24,428
Though Peugeot is twice bigger than Dior, most
consumers around the world will name Dior before
Peugeot when quizzed. People the world over read
about Dior in magazines, see them on TV and
fashion shows, and want to know more about Dior.
BRAND AWARENESS
Most luxury companies are
small- or medium-size
enterprise. You could say the
number of marketing
executives in a P&G or
Unilever will outnumber the
marketing executives in the
total luxury-goods industry.
COMPANY SIZE
BRAND PRESENCE
Though small, luxury brands must be
present everywhere in the world. Tourists
must find luxury brands where they travel
even if they purchase them only at home.
FLAGSHIP STORES
Countless tourists/visitors and
locals are awed by the iconic
and unabashedly extravagant
luxury flagship stores that
reinforces the brand’s image
in consumers’ minds.
FASHION
BEVERAGES JEWELRY
EYEWEARBEAUTY
PROPERTY
AUTO
Hotels
Homes
Clubs
Prescription glasses
Sunglasses
Costume
Watches
Wines
Champagne
Cognac
Cosmetics
Perfumes
Hair
Resorts, spa
Accessories
Apparel
Haute couture
Prêt-à-porter
THE SEVEN MAJOR
PRODUCT GROUPS LUXURY
SECTOR OPERATES
NOW, WHAT IS REALLY LUXURY?
Luxury is a term is derived from luxurie
meaning ‘lasciviousness, sinful self-indulgence’
Goods not essential to
growth and prosperity
Goods for normal growth of
people and communities
Goods limited in supply, difficult
to procure, and/or very expensive
Goods to maintain life
ADAM SMITH’S
CLASSIFICATION OF GOODS
PARTIAL ROSTER OF LUXURY BRANDS
(sales above $1 billion)
RATIO
N
AL
FU
N
CTIO
N
AL
EM
O
TIO
N
AL
RELATIO
N
AL
Who are you?
What are you?
What about
you and me?
What about you?
Keller, Kevin Lane; Brand Pyramid Model
➡ Very expensive
➡ High brand awareness
➡ Available in flagship
stores
➡ Differentiated product
features (technically
superior)
➡ Very high on quality
➡ Attributes may be
compensated for design
➡ Extravagant designs
➡ Known for unique
craftsmanship
➡ Not known for extensive
product use
➡ Memorable brand
experience
➡ High social approval
➡ High on hedonism
(status, esteem)
➡ Satisfy emotional desire
➡ Status relationship
➡ Status stories
➡ Satisfy role-playing
aspects
➡ Relationship with
symbolic meaning
Kotler, Philip; Differentiation of Products, Marketing Management
Rolls-Royce
Mercedes
Infiniti
Dodge
KiaBASIC
UTILITY
QUALITY
PREMIUM
LUXURYLUXURIFICATIONMASSIFICATION
ARMANI
ARMANI
PRIVE
ARMANI
CASA
ARMANI
EXCHANGE
ARMANI
JEANS
ARMANI
SPA
SINGLE BRAND
ACROSS THE LUXURY SPECTRUM
MONOLITHIC
BRAND
Unified brand identity
One visual system
Consistency
Extensions built by descriptors
SUB BRANDS
WOMEN’S
FASHION
MEN’S
FASHION
CHILDREN’S
FASHION
JEWELRY WATCHES EYEWEAR BEAUTY HOME SERVICES OTHERS
Armani Privé
Armani Privé
Fine Jewelry
Armani Privé
Fragrances
Armani
Casa
Armani
Hotels and
Resorts
Armani
Samsung TV
Giorgio
Armani
Giorgio
Armani
Armani SPA
GA Jewelry
Giorgio
Armani
Giorgio
Armani
GA Beauty
Armani
Ristorante
GA Samsung
Smart Phone
Armani
Collezioni
Emporio
Armani
Emporio
Armani
Emporio
Armani
Emporio
Armani
EA
Fragrances
EA Caffé
EA Samsung
Mobile Phone
Armani Jeans Armani Jeans
Armani Baby
Armani Junior
Armani Teen
AJ Caffé
Armani Dolci
Armani Fiori
Armani Libri
Armani
Exchange
Armani
Exchange
AX Jewelry
Armani
Exchange
Armani
Exchange
FASTFASHIONLUXURY
CONSPICUOUSSUBTLE
Consume for prestige, status, and association with higher class
Consume to dissociate from lower class
$1,300
$700 $180$400
$650$2,000
MASSTIGEPRESTIGE
Owing to high
brand awareness
and perceived quality,
consumers confer high social
status and prestige value for
for consuming luxury brands.
Based on consumption of
luxury brands, four
groups of consumers
emerge according
to economic
status and
motivating
force for
status.
PATRICIAN
POSEUR
PARVENU
PROLETARIAN
STATUS NEED
WEALTH
LOW
HAVE-NOTSHAVES
HIGH
Quietly signal
each other
Use loud signals to
associate with Haves and
disassociate with Have-Nots
Aspire to be Haves that
they mimic parvenus
Do not engage in
signaling
Han, Young Jee et al., “Signaling Status with Luxury Goods,” Journal of Marketing 2010
LOW PURCHASE FREQUENCY
HIGHEXCLUSIVITYLOWEXCLUSIVITY
HIGH PURCHASE FREQUENCY
INACCESSIBLE
LUXURY
ACCESSIBLE
LUXURY
Inaccessible luxury is a
necessity that begins
where necessity ends.
Downward extension of
luxury to make it
accessible for mass.
MULTIBRAND SPECIALTY STORES
DUTY-FREE STORES
FLAGSHIP
STORES
ExtenddistributionFollow
customers
intheirtravel
Displayfull
assortment
Poseurs
Patrician,parvenu
A major existing paradox
lies in creating “desire” and
‘exclusivity” of luxury brands on
the classless virtual world.
Versace did not have a website
until 2005; Prada until 2007.
Though luxury industry is known
for creativity, it has been slow on
digital channels. Luxury brands
have since become more
accessible, collaborative, and
experiential. Today, brands
across the luxury spectrum
mediate tension between
exclusivity that protects brand
desirability and the inclusivity
needed to attract new customers
on social media networks.
INPUT
PROCESS
OUTPUT
Branding Marketing mix Social groups
Psychology
personality
Motivation
attitude
Perception
learning
Purchase
behavior
Involvement Evaluation
Luxury branding is not about getting a consumer to choose
a luxury brand over the competition. It’s about getting
them to see the brand as the only solution to their desire.
LUXURY BRAND
COUNTRY OF
ORIGIN
BRAND VALUE
(2013)
BRAND VALUE
(2012)
Louis Vuitton France $22,719 $25,920
Hermes France $19,129 $19,161
Gucci Italy $12,735 $6,420
Prada Italy $9,454 $5,788
Rolex Switzerland $7,941 $7,171
Chanel France $7,075 $6,677
Cartier France $6,377 $4,843
Burberry England $4,194 $4,090
Fendi Italy $3,636 NA
Coach USA $3,276 NA
TOP TEN LUXURY BRANDS
Evaluation of brand value conducted by Millward Brown in 2012 and 2013
Segmenting luxury consumers based on physical
and psychosocial attributes of luxury brands
Hudders, Liselot, “Consumer Meaning Making,” International Journal of Market Research 2013
Rarity
Expensiveness
Uniqueness
Conspicuousness
Exclusivity
Inaccessibility
ExcellentQuality
Craftsmanship
Durability
Refinement
Elegance
Sophistication
Innovativeness
Comfort
Handicraft
Creativity
Psychosocial
attributes
Psychosocial
attributes
Physical
attributes
Expressive dimension Impressive-functional Impressive-emotional
LUXURY BRAND MEANING
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
Expressive segment
Impressive segment
K-means Clustering
Experiential valueFunctional valueSymbolic value
O
N
TO
LO
G
ICAL
M
O
D
E
AESTH
ETIC
M
O
D
E
Enduring
(being)
erm
anence
Transience
(becom
ing)
flux
N
ovice
(observer)
surface
Expert
(preserver)
depth
AESTH
ETIC
M
O
D
E
O
N
TO
LO
G
ICAL
M
O
D
E
POSTMODERN
WABI SABI
CLASSIC
MODERN
Evanescent
conspicuous
consumption
Commercial
conspicuous
consumption
Ephemeral
aesthetic
consumption
Monumental
aesthetic
consumption
Eg. Purdey
sidelock shotgun
Eg. Louis Vuitton
bag
Eg. Haute cuisine
Eg. Hyper-real
experiences
TAXONOMYOFLUXURYBRANDS
Berthon, Pierre et al., “Aesthetics and Ephemerality,” California Management Review, 2009
EducatePopularize
Exclucivize
Expertize
HOW IS LUXURY BRANDED?
BRAND
PURCHASE
CIRCLE
UNAWARE
DETACHED
LOYALISTS
CONVINCED
ADVOCATES
INFORMED
ANTI
8PsTHE EIGHT CORNERSTONES OF LUXURY BRANDING
Perceivedquality
Paucity
Price
Place
Publicfigure
Pedigree
Presence
PR
Quality is not an accident. It is the result
of high intention, high craftsmanship and
aesthetics, sincere effort, and skillful
execution; it represents the wise choice of
many alternatives in the luxury spectrum.1PERCEIVED QUALITY
2
Luxury brands have very short life span.
Also, luxury brands want to maintain the
perception that luxury is scarce. Both
natural paucity and tactical paucity
generate artificial demand and desire.
PAUCITY
3It is not luxury without premium
pricing. Price helps generate the
luxury stature in consumers’ minds. In
order to maintain the perceived value
and quality, price is set higher than the
consumer expectation and willingness.
PRICE
Consumers must live luxury from Milan to New York. Luxury
brands are in every major international city taking into
account image-creation (flagship stores) and image-
consumption activities (licensing for secondary products).
Original
Company
Distribution
System
Licensing
Distribution
for Licensees
HOME OVERSEAS
CORE
LICENSED
4PLACE
5Movie stars, musicians, sports personalities,
royal families, TV personalities, fashion
models, and designer themselves garner
attention and impact at special events and
award/fashion shows. This sort of product
placements and subtle endorsements from
celebrities positively affect brand perceptions.
PUBLIC FIGUREHEADS
6History helps in familiarity. Rich ancestry
and tradition wraps the brand with deep
mystique. Mystique is an aura..a
framework of beliefs constructed around
the founder or object, endowing the
person or object with enhanced value and
profound meaning. An ounce of mystique
is worth a pound of performance.
PEDIGREE
7Every customer touchpoint is a moment of
truth heightening the brand experience
and amplifying the aura of luxury.
Aesthetics, craftsmanship, and high art
value is extended not only to the physical
or virtual environment where the brand
retails/e-tails, but to every customer
touchpoint where luxury is experienced.
BRAND PRESENCE
8Public relations is a sophisticated
branding machine that plays a
humungous role in image proliferation
and in influencing public opinion
favorably; fashion shows, celebrity
endorsements at award shows, designer
talk shows build brand relevance and
dialogue with luxury consumers.
PUBLIC RELATIONS
Applying brand identity prism to
Chanel to understand the
multiple facets of luxury identity
PHYSIQUE PERSONALITY
RELATIONSHIP CULTURE
REFLECTION IMAGE
Independent,
sensual
woman
Long-lasting
and respectful
Liberation
Modern day
elegant
woman
Liberated
lifestyle
Sophisticated,
progressive,
and daring
Kapferer, Jean-Noel, “Brand Identity Prism”
Andrea Semprini extended the
Greimas Square, which helps in
marketers understand luxury
consumption values better.
S1 S2
~S1~S2 S
S
Contrary
Implicatory
Contradictory
S1 positive seme
S2 negative seme
S complex axis (S1+S2)
~S neutral axis (neither S1 nor S2)
Practical
U
topian
Critical
D
iversionary
MISSION
PROJECT
EUPHORIA
INFORMATION
Allegiance
Obligation
Visionary
Mythical
Transcendence
Utilitarian
Functional
Valuable
Advantageous
Adventure
Transgression
Dream
Transformation
Amusement
Indulgence
Incitement
Divertissement
CRITICAL DIVERSIONARY
PRACTICAL
UTOPIAN
POSITIONINGOFLUXURYBRANDS
MULTIPLE CONSTRAINTS TO CREATIVE DEPT.
CREATIVE
Brand
Identity
Direction
Retail and
Wholesale
Merchandising
Dept.
Production
and Sourcing
Dept.
Fashion
Trends
Customer
Evolution
In Europe, luxury sector has the
creative dept. (or designer) as
the fulcrum, and the emphasis
is on creativity, craftsmanship,
and innovation. On the other
side of the Atlantic,
personalization, customization,
customers’ desires and feelings
are central to luxury
businesses. Consequently,
brand management takes a
significant role in the business
of luxury management.
SYNTHETIC FLOW CHART OF FACTORS OF LUXURY BRAND SUCCESS
EFFECTIVENESS
RELEVANCEENGAGEMENT
IDENTITY-IMAGEALIGNMENT
COHERENCECONSISTENCY
LUXURY HOUSE
MARCOM
PRODUCT DIST.
PERCEPTIONS
PURCHASE
Sudio

More Related Content

What's hot

PRADA Marketing strategy
PRADA Marketing strategyPRADA Marketing strategy
PRADA Marketing strategy
Olya Dyachuk
 
Burberry Research
Burberry ResearchBurberry Research
Burberry Research
joelyp
 

What's hot (20)

Burberry Case Study
Burberry Case StudyBurberry Case Study
Burberry Case Study
 
Louis Vuitton case study
Louis Vuitton case studyLouis Vuitton case study
Louis Vuitton case study
 
Zara
ZaraZara
Zara
 
Luxury Brand Management
Luxury Brand ManagementLuxury Brand Management
Luxury Brand Management
 
What is Luxury?
What is Luxury?What is Luxury?
What is Luxury?
 
Word Of Mouth In Luxury Brands
Word Of Mouth  In Luxury BrandsWord Of Mouth  In Luxury Brands
Word Of Mouth In Luxury Brands
 
Luxury Experiences
Luxury ExperiencesLuxury Experiences
Luxury Experiences
 
Management of Fashion and Luxury Companies
Management of Fashion and Luxury CompaniesManagement of Fashion and Luxury Companies
Management of Fashion and Luxury Companies
 
Luxury Branding- Brand Management Approaches
Luxury Branding- Brand Management ApproachesLuxury Branding- Brand Management Approaches
Luxury Branding- Brand Management Approaches
 
Brand management - H&M
Brand management - H&M Brand management - H&M
Brand management - H&M
 
PRADA Marketing strategy
PRADA Marketing strategyPRADA Marketing strategy
PRADA Marketing strategy
 
COMPLETE IN DEPTH STUDY ABOUT THE BRAND ARMANI
COMPLETE IN DEPTH STUDY ABOUT THE BRAND ARMANICOMPLETE IN DEPTH STUDY ABOUT THE BRAND ARMANI
COMPLETE IN DEPTH STUDY ABOUT THE BRAND ARMANI
 
The Luxury Brand Market & Consumer
The Luxury Brand Market & ConsumerThe Luxury Brand Market & Consumer
The Luxury Brand Market & Consumer
 
Hermes 's maketing strategy
Hermes 's maketing strategyHermes 's maketing strategy
Hermes 's maketing strategy
 
Louis vuitton China: Brand extension, NOlogo, ... KNG Asia
Louis vuitton China: Brand extension, NOlogo, ... KNG AsiaLouis vuitton China: Brand extension, NOlogo, ... KNG Asia
Louis vuitton China: Brand extension, NOlogo, ... KNG Asia
 
Luxury Brand Marketing
Luxury Brand MarketingLuxury Brand Marketing
Luxury Brand Marketing
 
Fundamental of luxury-Chapter 2.pdf
Fundamental of luxury-Chapter 2.pdfFundamental of luxury-Chapter 2.pdf
Fundamental of luxury-Chapter 2.pdf
 
Presentation on H & M Marketing Analysis
Presentation on H & M Marketing Analysis Presentation on H & M Marketing Analysis
Presentation on H & M Marketing Analysis
 
Case study Zara
Case study Zara Case study Zara
Case study Zara
 
Burberry Research
Burberry ResearchBurberry Research
Burberry Research
 

Viewers also liked

Build Your O2O Funnel
Build Your O2O FunnelBuild Your O2O Funnel
Build Your O2O Funnel
SweetIQ
 
Dior Communication Strategy
Dior Communication StrategyDior Communication Strategy
Dior Communication Strategy
Tiffany Rebecca
 

Viewers also liked (10)

Quality Management
Quality ManagementQuality Management
Quality Management
 
Build Your O2O Funnel
Build Your O2O FunnelBuild Your O2O Funnel
Build Your O2O Funnel
 
A Generic Apple "Steve Jobs" style Keynote Address Presentation
A Generic Apple "Steve Jobs" style Keynote Address PresentationA Generic Apple "Steve Jobs" style Keynote Address Presentation
A Generic Apple "Steve Jobs" style Keynote Address Presentation
 
Patek phillipe final
Patek phillipe  finalPatek phillipe  final
Patek phillipe final
 
Retail, luxury and fashion affiliate marketing
Retail, luxury and fashion affiliate marketingRetail, luxury and fashion affiliate marketing
Retail, luxury and fashion affiliate marketing
 
How Luxury Brands Can Remain Exclusive Online
How Luxury Brands Can Remain Exclusive OnlineHow Luxury Brands Can Remain Exclusive Online
How Luxury Brands Can Remain Exclusive Online
 
Online Marketing For Fashion Designers - 2015
Online Marketing For Fashion Designers - 2015Online Marketing For Fashion Designers - 2015
Online Marketing For Fashion Designers - 2015
 
Social Media Best Practices For Luxury Brands
Social Media Best Practices For Luxury BrandsSocial Media Best Practices For Luxury Brands
Social Media Best Practices For Luxury Brands
 
25 Digital Transformation Case Studies In Retail
25 Digital Transformation Case Studies In Retail25 Digital Transformation Case Studies In Retail
25 Digital Transformation Case Studies In Retail
 
Dior Communication Strategy
Dior Communication StrategyDior Communication Strategy
Dior Communication Strategy
 

Similar to LUXURY BRAND MANAGEMENT

Fashion market study 1 1
Fashion market study 1 1Fashion market study 1 1
Fashion market study 1 1
vasu_goel
 
297 luxury branding_india
297 luxury branding_india297 luxury branding_india
297 luxury branding_india
Vivek Sharma
 
Luxury retails-evolving-landscape
Luxury retails-evolving-landscapeLuxury retails-evolving-landscape
Luxury retails-evolving-landscape
Veena Srinath
 
Luxury In Turbulent Times Slideshare
Luxury In Turbulent Times SlideshareLuxury In Turbulent Times Slideshare
Luxury In Turbulent Times Slideshare
deepakohri
 
2010 luxury trends
2010 luxury trends2010 luxury trends
2010 luxury trends
Sparxoo
 
Preserve the luxury or extend the brand.
Preserve the luxury or extend the brand.Preserve the luxury or extend the brand.
Preserve the luxury or extend the brand.
Vaishnavi Ketharnathan
 

Similar to LUXURY BRAND MANAGEMENT (20)

Creation of brand
Creation of brandCreation of brand
Creation of brand
 
5 luxury market trends in Southeast Asia (July 2013)
5 luxury market trends in Southeast Asia (July 2013)5 luxury market trends in Southeast Asia (July 2013)
5 luxury market trends in Southeast Asia (July 2013)
 
Branding Magazine Roundtable 8.5.15[2]
Branding Magazine Roundtable 8.5.15[2]Branding Magazine Roundtable 8.5.15[2]
Branding Magazine Roundtable 8.5.15[2]
 
STARBRANDS // BUILT TO SHINE: Luxury marketing
STARBRANDS // BUILT TO SHINE: Luxury marketingSTARBRANDS // BUILT TO SHINE: Luxury marketing
STARBRANDS // BUILT TO SHINE: Luxury marketing
 
A knowledgeable reports on luxury brands. (May be It's sharp May be it's quite)
A knowledgeable reports on luxury brands. (May be It's sharp May be it's quite)A knowledgeable reports on luxury brands. (May be It's sharp May be it's quite)
A knowledgeable reports on luxury brands. (May be It's sharp May be it's quite)
 
Ppt selling
Ppt sellingPpt selling
Ppt selling
 
Fashion market study 1 1
Fashion market study 1 1Fashion market study 1 1
Fashion market study 1 1
 
297 luxury branding_india
297 luxury branding_india297 luxury branding_india
297 luxury branding_india
 
Luxury Workshop: The Psychology of Luxury Shopping
Luxury Workshop: The Psychology of Luxury ShoppingLuxury Workshop: The Psychology of Luxury Shopping
Luxury Workshop: The Psychology of Luxury Shopping
 
Everlasting Luxury
Everlasting LuxuryEverlasting Luxury
Everlasting Luxury
 
Luxury retails-evolving-landscape
Luxury retails-evolving-landscapeLuxury retails-evolving-landscape
Luxury retails-evolving-landscape
 
Retail Managment Final
Retail Managment FinalRetail Managment Final
Retail Managment Final
 
2010 Luxury Trend Report
2010 Luxury Trend Report2010 Luxury Trend Report
2010 Luxury Trend Report
 
Luxury In Turbulent Times Slideshare
Luxury In Turbulent Times SlideshareLuxury In Turbulent Times Slideshare
Luxury In Turbulent Times Slideshare
 
2010 luxury trends
2010 luxury trends2010 luxury trends
2010 luxury trends
 
Cultural strategy
Cultural strategyCultural strategy
Cultural strategy
 
Dynvibe - can you hear the consumer rebellion
Dynvibe - can you hear the consumer rebellionDynvibe - can you hear the consumer rebellion
Dynvibe - can you hear the consumer rebellion
 
Elluminate Magazine Issue 13 luxury
Elluminate Magazine Issue 13 luxury Elluminate Magazine Issue 13 luxury
Elluminate Magazine Issue 13 luxury
 
Making a successful brand in the luxury sector in 12 advices and tools…
Making a successful brand in the luxury sector in 12 advices and tools…Making a successful brand in the luxury sector in 12 advices and tools…
Making a successful brand in the luxury sector in 12 advices and tools…
 
Preserve the luxury or extend the brand.
Preserve the luxury or extend the brand.Preserve the luxury or extend the brand.
Preserve the luxury or extend the brand.
 

More from Sudio Sudarsan

More from Sudio Sudarsan (6)

A WORD TO THE EYES
A WORD TO THE EYESA WORD TO THE EYES
A WORD TO THE EYES
 
IDEA TO IDENTITY: THE DESIGN OF BRAND
IDEA TO IDENTITY:  THE DESIGN OF BRANDIDEA TO IDENTITY:  THE DESIGN OF BRAND
IDEA TO IDENTITY: THE DESIGN OF BRAND
 
SEMIOTICS OF BRAND BUILDING
SEMIOTICS OF BRAND BUILDINGSEMIOTICS OF BRAND BUILDING
SEMIOTICS OF BRAND BUILDING
 
DIGITAL TRENDSPOT
DIGITAL TRENDSPOTDIGITAL TRENDSPOT
DIGITAL TRENDSPOT
 
WHAT IS BRANDING?
WHAT IS BRANDING?WHAT IS BRANDING?
WHAT IS BRANDING?
 
DIGITAL BRANDING
DIGITAL BRANDINGDIGITAL BRANDING
DIGITAL BRANDING
 

Recently uploaded

Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
Boundify
 

Recently uploaded (20)

10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDEGURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
 
WheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond InsightsWheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond Insights
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDEJIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
 
A DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptxA DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptx
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTSPALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
 
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR ESCORTS SERVICE PROVIDE
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR  ESCORTS SERVICE PROVIDEJAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR  ESCORTS SERVICE PROVIDE
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR ESCORTS SERVICE PROVIDE
 
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDEUJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deckPitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
 

LUXURY BRAND MANAGEMENT

  • 2. A PRESENTATION ON THE WORLD OF PRIVILEGE FOR EDUCATION PURPOSE ONLY This slide deck was compiled because the notion of luxury is so central to contemporary consumption, but academic and popular business publications about luxury business, and importantly, luxury branding has been largely conceptual.
  • 3. “Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity.” - Coco Chanel
  • 4. HOW IS THE LUXURY SECTOR DIFFERENT? Every brand manager is quick to assert that their business or brand is different from any other, but those managing luxury brands are possibly the only ones who are justified to claim such massive differentiation in their businesses and brands.
  • 5. BRAND AWARENESS GAUGE Luxury brands enjoy very high brand awareness - both aided awareness and top-of-the- mind awareness. Allow me to explain the high awareness by taking a luxury and non luxury brand as an example.
  • 6. REVENUE BY BUSINESS (millions of Euro) 12/31/2012 12/31/2011 AUTOMOTIVE 38,229 42,710 EQUIPMENT 17,365 16,190 FINANCE COMPANIES 1,910 1,902 ELIMINATIONS -2,128 -2,293 TOTAL 55,376 58,509
  • 7. REVENUE BY BUSINESS (millions of Euro) Until 10/31/2012 12/31/2011 DIOR COUTURE 1,003 1,000 WINES/SPIRITS 3,216 3,524 FASHION GOODS 7,977 8,712 PERFUMES/COSMETICS 2,993 3,195 WATCHES/JEWELRY 2,300 1,949 SELECTIVE RETAILING 6,099 6,436 ELIMINATIONS -252 -188 TOTAL 23,336 24,428
  • 8. Though Peugeot is twice bigger than Dior, most consumers around the world will name Dior before Peugeot when quizzed. People the world over read about Dior in magazines, see them on TV and fashion shows, and want to know more about Dior. BRAND AWARENESS
  • 9. Most luxury companies are small- or medium-size enterprise. You could say the number of marketing executives in a P&G or Unilever will outnumber the marketing executives in the total luxury-goods industry. COMPANY SIZE
  • 10. BRAND PRESENCE Though small, luxury brands must be present everywhere in the world. Tourists must find luxury brands where they travel even if they purchase them only at home.
  • 11. FLAGSHIP STORES Countless tourists/visitors and locals are awed by the iconic and unabashedly extravagant luxury flagship stores that reinforces the brand’s image in consumers’ minds.
  • 13. NOW, WHAT IS REALLY LUXURY?
  • 14. Luxury is a term is derived from luxurie meaning ‘lasciviousness, sinful self-indulgence’
  • 15. Goods not essential to growth and prosperity Goods for normal growth of people and communities Goods limited in supply, difficult to procure, and/or very expensive Goods to maintain life ADAM SMITH’S CLASSIFICATION OF GOODS
  • 16. PARTIAL ROSTER OF LUXURY BRANDS (sales above $1 billion)
  • 17. RATIO N AL FU N CTIO N AL EM O TIO N AL RELATIO N AL Who are you? What are you? What about you and me? What about you? Keller, Kevin Lane; Brand Pyramid Model ➡ Very expensive ➡ High brand awareness ➡ Available in flagship stores ➡ Differentiated product features (technically superior) ➡ Very high on quality ➡ Attributes may be compensated for design ➡ Extravagant designs ➡ Known for unique craftsmanship ➡ Not known for extensive product use ➡ Memorable brand experience ➡ High social approval ➡ High on hedonism (status, esteem) ➡ Satisfy emotional desire ➡ Status relationship ➡ Status stories ➡ Satisfy role-playing aspects ➡ Relationship with symbolic meaning
  • 18. Kotler, Philip; Differentiation of Products, Marketing Management Rolls-Royce Mercedes Infiniti Dodge KiaBASIC UTILITY QUALITY PREMIUM LUXURYLUXURIFICATIONMASSIFICATION
  • 19. ARMANI ARMANI PRIVE ARMANI CASA ARMANI EXCHANGE ARMANI JEANS ARMANI SPA SINGLE BRAND ACROSS THE LUXURY SPECTRUM MONOLITHIC BRAND Unified brand identity One visual system Consistency Extensions built by descriptors SUB BRANDS
  • 20. WOMEN’S FASHION MEN’S FASHION CHILDREN’S FASHION JEWELRY WATCHES EYEWEAR BEAUTY HOME SERVICES OTHERS Armani Privé Armani Privé Fine Jewelry Armani Privé Fragrances Armani Casa Armani Hotels and Resorts Armani Samsung TV Giorgio Armani Giorgio Armani Armani SPA GA Jewelry Giorgio Armani Giorgio Armani GA Beauty Armani Ristorante GA Samsung Smart Phone Armani Collezioni Emporio Armani Emporio Armani Emporio Armani Emporio Armani EA Fragrances EA Caffé EA Samsung Mobile Phone Armani Jeans Armani Jeans Armani Baby Armani Junior Armani Teen AJ Caffé Armani Dolci Armani Fiori Armani Libri Armani Exchange Armani Exchange AX Jewelry Armani Exchange Armani Exchange FASTFASHIONLUXURY
  • 21. CONSPICUOUSSUBTLE Consume for prestige, status, and association with higher class Consume to dissociate from lower class $1,300 $700 $180$400 $650$2,000 MASSTIGEPRESTIGE
  • 22. Owing to high brand awareness and perceived quality, consumers confer high social status and prestige value for for consuming luxury brands. Based on consumption of luxury brands, four groups of consumers emerge according to economic status and motivating force for status.
  • 23. PATRICIAN POSEUR PARVENU PROLETARIAN STATUS NEED WEALTH LOW HAVE-NOTSHAVES HIGH Quietly signal each other Use loud signals to associate with Haves and disassociate with Have-Nots Aspire to be Haves that they mimic parvenus Do not engage in signaling Han, Young Jee et al., “Signaling Status with Luxury Goods,” Journal of Marketing 2010
  • 24. LOW PURCHASE FREQUENCY HIGHEXCLUSIVITYLOWEXCLUSIVITY HIGH PURCHASE FREQUENCY INACCESSIBLE LUXURY ACCESSIBLE LUXURY Inaccessible luxury is a necessity that begins where necessity ends. Downward extension of luxury to make it accessible for mass.
  • 25. MULTIBRAND SPECIALTY STORES DUTY-FREE STORES FLAGSHIP STORES ExtenddistributionFollow customers intheirtravel Displayfull assortment Poseurs Patrician,parvenu A major existing paradox lies in creating “desire” and ‘exclusivity” of luxury brands on the classless virtual world. Versace did not have a website until 2005; Prada until 2007. Though luxury industry is known for creativity, it has been slow on digital channels. Luxury brands have since become more accessible, collaborative, and experiential. Today, brands across the luxury spectrum mediate tension between exclusivity that protects brand desirability and the inclusivity needed to attract new customers on social media networks.
  • 26. INPUT PROCESS OUTPUT Branding Marketing mix Social groups Psychology personality Motivation attitude Perception learning Purchase behavior Involvement Evaluation
  • 27. Luxury branding is not about getting a consumer to choose a luxury brand over the competition. It’s about getting them to see the brand as the only solution to their desire.
  • 28. LUXURY BRAND COUNTRY OF ORIGIN BRAND VALUE (2013) BRAND VALUE (2012) Louis Vuitton France $22,719 $25,920 Hermes France $19,129 $19,161 Gucci Italy $12,735 $6,420 Prada Italy $9,454 $5,788 Rolex Switzerland $7,941 $7,171 Chanel France $7,075 $6,677 Cartier France $6,377 $4,843 Burberry England $4,194 $4,090 Fendi Italy $3,636 NA Coach USA $3,276 NA TOP TEN LUXURY BRANDS Evaluation of brand value conducted by Millward Brown in 2012 and 2013
  • 29. Segmenting luxury consumers based on physical and psychosocial attributes of luxury brands Hudders, Liselot, “Consumer Meaning Making,” International Journal of Market Research 2013 Rarity Expensiveness Uniqueness Conspicuousness Exclusivity Inaccessibility ExcellentQuality Craftsmanship Durability Refinement Elegance Sophistication Innovativeness Comfort Handicraft Creativity Psychosocial attributes Psychosocial attributes Physical attributes Expressive dimension Impressive-functional Impressive-emotional LUXURY BRAND MEANING 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Expressive segment Impressive segment K-means Clustering Experiential valueFunctional valueSymbolic value
  • 31. HOW IS LUXURY BRANDED?
  • 33. 8PsTHE EIGHT CORNERSTONES OF LUXURY BRANDING Perceivedquality Paucity Price Place Publicfigure Pedigree Presence PR
  • 34. Quality is not an accident. It is the result of high intention, high craftsmanship and aesthetics, sincere effort, and skillful execution; it represents the wise choice of many alternatives in the luxury spectrum.1PERCEIVED QUALITY
  • 35. 2 Luxury brands have very short life span. Also, luxury brands want to maintain the perception that luxury is scarce. Both natural paucity and tactical paucity generate artificial demand and desire. PAUCITY
  • 36. 3It is not luxury without premium pricing. Price helps generate the luxury stature in consumers’ minds. In order to maintain the perceived value and quality, price is set higher than the consumer expectation and willingness. PRICE
  • 37. Consumers must live luxury from Milan to New York. Luxury brands are in every major international city taking into account image-creation (flagship stores) and image- consumption activities (licensing for secondary products). Original Company Distribution System Licensing Distribution for Licensees HOME OVERSEAS CORE LICENSED 4PLACE
  • 38. 5Movie stars, musicians, sports personalities, royal families, TV personalities, fashion models, and designer themselves garner attention and impact at special events and award/fashion shows. This sort of product placements and subtle endorsements from celebrities positively affect brand perceptions. PUBLIC FIGUREHEADS
  • 39. 6History helps in familiarity. Rich ancestry and tradition wraps the brand with deep mystique. Mystique is an aura..a framework of beliefs constructed around the founder or object, endowing the person or object with enhanced value and profound meaning. An ounce of mystique is worth a pound of performance. PEDIGREE
  • 40. 7Every customer touchpoint is a moment of truth heightening the brand experience and amplifying the aura of luxury. Aesthetics, craftsmanship, and high art value is extended not only to the physical or virtual environment where the brand retails/e-tails, but to every customer touchpoint where luxury is experienced. BRAND PRESENCE
  • 41. 8Public relations is a sophisticated branding machine that plays a humungous role in image proliferation and in influencing public opinion favorably; fashion shows, celebrity endorsements at award shows, designer talk shows build brand relevance and dialogue with luxury consumers. PUBLIC RELATIONS
  • 42. Applying brand identity prism to Chanel to understand the multiple facets of luxury identity PHYSIQUE PERSONALITY RELATIONSHIP CULTURE REFLECTION IMAGE Independent, sensual woman Long-lasting and respectful Liberation Modern day elegant woman Liberated lifestyle Sophisticated, progressive, and daring Kapferer, Jean-Noel, “Brand Identity Prism”
  • 43. Andrea Semprini extended the Greimas Square, which helps in marketers understand luxury consumption values better. S1 S2 ~S1~S2 S S Contrary Implicatory Contradictory S1 positive seme S2 negative seme S complex axis (S1+S2) ~S neutral axis (neither S1 nor S2)
  • 46. MULTIPLE CONSTRAINTS TO CREATIVE DEPT. CREATIVE Brand Identity Direction Retail and Wholesale Merchandising Dept. Production and Sourcing Dept. Fashion Trends Customer Evolution In Europe, luxury sector has the creative dept. (or designer) as the fulcrum, and the emphasis is on creativity, craftsmanship, and innovation. On the other side of the Atlantic, personalization, customization, customers’ desires and feelings are central to luxury businesses. Consequently, brand management takes a significant role in the business of luxury management.
  • 47. SYNTHETIC FLOW CHART OF FACTORS OF LUXURY BRAND SUCCESS EFFECTIVENESS RELEVANCEENGAGEMENT IDENTITY-IMAGEALIGNMENT COHERENCECONSISTENCY LUXURY HOUSE MARCOM PRODUCT DIST. PERCEPTIONS PURCHASE
  • 48. Sudio