Nasz pogląd czyli The Brand Marriage Company na marketing marek i produktów luksusowych a w szczególności ich strategię i budowę pod kątem segmentacji konsumentów dóbr luksusowych. Our (The Brand Marriage Company) view on luxury marketing.especially luxury brand strategy and brand building in regards to luxury consumers segmentation.

2. Luxury Brand Marketing

3. What is luxury?

4. Origins of Luxury
Traditional luxury is a strictly European concept – French, British and
Italian.
It is associated with certain specific categories:
—Apparel & Watches
—Jewellery
—Fashion
—Beauty (fragrance & cosmetics)
—Automobile
These categories have two things in common:
—Their products are hard goods
—They concern the dressing and decoration of the person
They are the goods that give you the feeling of being on top of things.

5. Definitions
Conception of Luxury:
Luxury Products are Branded
Luxury Products are Expensive
Luxury Products are for Luxury Consumers

6. Definitions
If everyone owns particular brand…it is by
definition not luxury.
Luxury is
about the quantity or a vast array of expensive goods
partly derived from technical superiority
…and unique craftsmanship
TO PROJECT CERTAIN SOCIAL STATUS OR WEALTH
SATISFY CERTAIN ROLE PLAYING ASPECTS
SATISFY EMOTIONAL DESIRE WITH INTANGIBLE,
BENEFITS
SUBJECTIVE

7. Definitions
According to a dictionary:
Luxury is „the state of great comfort and
extravagant living” or „an inessential, desirable good
that is expensive or difficult to obtain”.
However, most interesting is the antonym of luxury,
which is necessity. From this perspective luxury is
something that appeals to and feeds our lust.

8. Definitions
According to Serge Dive (CEO of Beyond Luxury):
Luxury is an urge, an absolute desire to sin with the view to break
our daily routine and give us the illusion of happiness at least for an instant.

9. What is luxury brand marketing?

10. What is luxury brand marketing?
Does it simply mean creating desire for things
that no one really needs?
And charging a lot of money for
them?

11. Definitions
In economic terms, luxury products are those
who can consistently command and justify
higher price than products with comparable
functions and similar quality.
In marketing terms, luxury products are those
who can deliver emotional benefits hard to
match by comparable products.

12. What is luxury brand marketing?
Luxury doesn't have to be the most expensive or exclusive
brand. Luxury is not how much something cost but how
much it means to me or you.

13. What is luxury brand marketing?
Ultimately
luxury marketing is about transformation of people's
experience, self perception and feeling - from ordinary into
extraordinary!

14. Luxury Consumers

15. Luxury consumers
Luxury consumers are
everywhere and are very
diverse.
Source: Ad Week Sept`04

16. Consumer Segmentation
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

17. Consumer Segmentation
Butterflies and X-Fluents seem to be 2 most promising targets (penetration+spending).
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

18. Luxury Cocooners
Want involving stories
behind brands, like eco
stories, like vintage
style, go for authenticity
and ethics, what they buy is
a part of their self-identity,
they buy luxury products to
fill up their emotional
emptiness
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

19. Butterflies
Respect icons of luxury,
seek contemporary
themes, value unique
craftsmanship here is
where couture thrives,
status symbols are
meaningless, feel responsible
for sharing their wealth
with others, not motivated by
status or exclusivity
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

20. Luxury Aspires
Materialistic, luxury
perceived as products they
buy not as a feeling or
experience, look for goods
endorsed by artists,
designers or celebrities,
value elegance and
uniqueness
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

21. X-Fluents
The last bastion of
conspicuous
consumption, buy chic,
super premium brands,
what they buy and have is
what they are – status and
recognition is what drives
them
Source: Marketing Luxury to the Masses, Pamela N. Danzinger

22. Luxury Consumers: summary
They are rooted in values
rather than badges.
They are more enlightened,
less materialistic luxury
consumers.
Source: Ad Week Sept`04

23. Luxury Consumers: summary
Purchases reflect their personal style
Source: Ad Week Sept`04

24. Luxury Consumers: summary
For many, luxury conjures up
images of just the type of
behavior they want to avoid:
Elitism
Stuffiness
Snobbery
Instead they feel money
affords:
Independence
Security
Comfort
Source: San Diego Union-Tribune, Nov`03

25. Luxury Consumers: summary
They look for:
—Superior quality, craftsmanship and customer service are the top, general needs.
—Yet, more than over 30% of consumers say luxury brands are worse than in
the recent years
—Over 60% of consumers believe luxury goods prices are too high relative to the
value they deliver
—Over 60% of wealthy consumers say that the current state of the economy has
changed their view of the luxury industry and they cut down on buying luxury
products.
Luxury Brands Are Failing to Deliver on
Luxury Fundamentals!
Source: The State of the Luxury Industry Study, Luxury Institute, 2008

26. What is causing the shift in
consumer behavior towards
luxury brands?

27. Development of New Luxury
Luxury is about satisfying consumers pleasures.
What are today's indulgences?
They are associated with:
—Time
—Space
—Home
—Modernity
What gives you a feeling of being on top of things?
—Service
—Being Different / Self Identification in the mass, plastic, digital world
New luxury builds upon modern, extended view of the person and helps to
highlight its individuality.

28. Development of New Luxury
So,…
luxury is no longer about rampant materialism
or getting a new gadget.
___
instead it is the enjoyment and experience that
money can buy.
___
Luxury = Freedom
Freedom = Comfort + Confidence
Source: Chain Store Age, Feb`04

29. Drivers of change
It is driven by a need for diversity & individualism.
Current call for individuality comes out as a result of
globalization processes, often symbolized by
McDonalization and Wal-Martization, as well as
collapse of political systems that highly valued
conformism and uniformity at the cost of the
individualism i.e. communism in EE countries.
People are fed up with the sameness, efficiency and
social control.

30. Drivers of change
It is driven by a hedonism and need for showing one`s status.
There is a growing consumer perception that massmarket food, drinks and personal care products are
bland and lacking hedonic benefits.
Premiumness and luxury are now about personal
enjoyment and tasting. Sensual moments of
pleasure are worth paying more: well-being, health,
youth, indulgement.

31. Drivers of change
It is driven by a need for security, real values, authenticity.
The need for everyday performance in
professional and personal lives, financial crisis,
wars, erosion of family values, climate changes they all bring lot of stress and make people feel
less secure.
Luxury products bring authenticity into the
`plastic world` of today. They stand for quality
and real values.

32. Drivers of change
It is driven by a need for simplicity and convenience.
Middle-aged yuppies living a
hectic life and bombarded by
too much information, increased
time pressure
hamper for
making a life simpler and more
convenient..

33. Drivers of change
It is driven by a need for a democratized luxury.
All people think they have the right to the best
and the most beautiful. Consumers
increasingly feel they should have access to
the same quality as the social elite or
celebrities.
Affected by recession and financial crisis,
people now search a rationale to buy, mix low
with high, reject the ordinary and expensive
e.g. Massimo Dutti, Habitat

34. IMPACT: Massification of
luxury brands vs luxurification
of mass brands

35. Massclusivity
We have a surplus of similar companies, employing
similar people, with similar educational
backgrounds, working in similar jobs, coming up with
similar ideas, producing similar things, with
similar prices and similar quality.
- Kjell Nordstrom and Jonas Ridderstale „Funky Business”

36. Massclusivity
We also have a surplus of similar brands, with
similar brand attributes, similar marketing
messages, making similar bran claims, with
similar quality, selling at similar prices.
Welcome to the Surplus Economy!

37. Examples of mass luxury brands

38. Luxury ladder
Super Luxury
CHIC
LUXURY
(classical luxury)
Luxury
Near Luxury
UBER PREMIUM
Affordable Luxury
LUXURY
(masstige and premium brands aspiring to luxury)
Super Premium
Premium
ENLARGED
LUXURY
(value & mass brands aspiring to premium)
Upmarket

39. Massification of luxury
CHIC
LUXURY
(classical luxury)
UBER PREMIUM
LUXURY
(masstige and premium brands aspiring to luxury)
ENLARGED
LUXURY
(value & mass brands aspiring to premium)
Thanks to its price attractiveness Internet
heavily contributed to proliferation of luxury
lifestyle and consumption.

40. What is the risk of massification
of luxury?

41. Challenge: massclusivity
In a rush to grow profits many luxury brands try to
increase their sales, they come out of their niche and
try to appeal to a wider mass-consumer group.
So, how far you can:
• stretch your brand without destroying it?
• go before your brand become mass?

42. Massclusivity: examples
How serious is their luxury diluted?

43. Massclusivity
Is there a winning formula?

44. Massclusivity
LVMH CEO Bernard Arnault:
”Sharply define the brand identity by mining the
brand's history and finding the right designer to
express it”.
„Tightly control quality and distribution”.
„Create a masterful marketing buzz”.

45. Massclusivity
Massclusivity is a fact. Massification is
happening across a broad set of categories.
Every marketer needs to have a Luxury
Marketing Strategy in place to be able to answer
a question:
Who can effectively capture this segment in
your category?

46. How to build new luxury
brands?

47. Luxury Brand Building: define your current and future position on the luxury ladder
Pure Artist, Creator and Unique
Creation.
Exclusive, Prestige Image, Highest
Quality and Service, Professional
Management
Mass Produced, Best Quality in
Category, Enjoy Market Share
Leadership
Mass Produced, Good Overall
Price-Value-Image Brand
Proposition
Constantly Under Cost Pressure,
Unable to Build Brand Equity,
Usually Out of Top3 in Market
Share Leadership
Luxury Brand
Massification of
Luxury Brands
Leading Brand
Quality Brand
Better Brand
Luxurification of
Mass Brands
`Just Another Brand`

48. Distinctive Luxury
Price &
Exclusivity
High
Luxury Brand Building: define your luxury position
Experience Luxury
Low
Essential Luxury
Core of Mass
Luxury
Affordable Luxury
Low
High
Purchase
Frequency

49. Luxury Brand Building: define origins of your luxury
Luxury-by-Birth
Luxury brands remain true to
their heritage and stay
expensive and exclusive e.g.
Chanel
State of the art
technologies position as
a form of luxury e.g.
Apple
Luxury brands broaden markets
and develop multiple brand
extensions e.g. Emporio Armani
Popular brands
develop/acquire upmarket brands e.g. Ford
& Jaguar
Niche market players
position themselves as
luxury brands e.g. Bang
& Olufsen
Popular brands using
`luxury` as a form of
differentiation e.g. Avon
by Ungaro
Value-at-Heart

50. Price &
Exclusivity
High
Luxury Brand Building: reenergize your brand
Low
Special Limited
Editions
Core of Mass
Luxury
Extended Product
Range
Low
High
Purchase
Frequency

51. Emerging Luxury Trends

52. Trends
Traditional luxury brands dramatically accelerate their internet activities

53. Trends
Luxury enters new categories to embrace digitally empowered X…Y
generations

54. Trends
Socially Responsible Luxury
The
global
crisis
of
confidence in governmental,
financial
and
other
institutions will drive luxury
consumers to demand that
luxury brands serve not just
them, but society as a whole.

55. Trends
Green Luxury
That will rise a need for ecofriendly luxury products in
ways
that
can
be
documented.

56. Trends
Ethical Luxury
Consumers will require luxury
brands to be ethical with all
constituents, charitable in ways
that make a difference to their
beneficiaries.
Overconsumption won't be
longer a sign of success
especially when so many
people
are
starving
or
unemployed.
In the era of and post financial
crisis philanthropy will help
luxury brands to build their
reputation and `culture of
sharing`.

57. Trends
Return to Classic Luxury
In the midst of this financial crisis,
and the populist backlash on
unearned financial services, many
wealthy consumers are confused
about luxury, even if they have
money
to
spend.
Thus, many wealthy consumers
will opt for classic luxury of wellknown and trusted brands, luxury
that is unique and exclusive, with
exquisite
artistic
design,
craftsmanship,
and
quality,
delivered with impeccable service.

58. Trends
Experiential Luxury
Luxury becomes less
tangible, less visible,
less about material
possession and more
private, personal and
more elusive for the
most elite confident
consumers.

59. Thank you
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