This document provides 12 pieces of advice for building a successful luxury brand. It emphasizes that brand is the most important asset and should be unique. It also stresses the importance of thorough strategic analysis, having a clear business formulation linked to brand positioning, and adapting operations locally. Finally, it highlights key characteristics of luxury brands like heritage, craftsmanship, and excellence in customer relationships.

1. Making a successful brand in the luxury sector
in 12 advices and
tools…
L.DUSAUSOY
Sales & Marketing director
Trainer
Coach
Lecturer
MBA graduated – General Management.

2. ADVICE #1
“CONSIDER THAT YOUR BRAND IS YOUR BEST ASSET”.
« ON AVERAGE, BRAND VALUE IS 40% OF A COMPANY’S MARKET CAPITALIZATION , 70% IN THE LUXURY SECTOR »
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1975 1985 1995 2005 2009
COMPONENTS OF S&P 500 – MARKET VALUE
intangible assets Tangible assets
ASSET MANAGEMENT
“DON’T FORGET TO USE ADAPTED
ANALYTICAL PROCESS WITH RIGHT TOOLS”.

3. ADVICE #2
“CONSIDER THAT BEEING UNIQUE MAY WORKS FOR YOUR BOTTOM LINE ”.
« ON AVERAGE, BRAND VALUE IS 40% OF A COMPANY’S MARKET CAPITALIZATION , 70% IN THE LUXURY SECTOR »
Launch in a new strategical market place
Launch of activities
Impact on Sales revenues
Launch in an existing market place
Impact on Net incomes
86 % 14 %
38 %
61 %39 %
62 %
Source : 2013
W. CHAN KIM / BLUE OCEAN
STRATEGY 2010
BUSINESS POSITIONNING

4. Evaluate
performance of
currents results.
Review
corporate
Governance :
Board of directors +
top management
INTERNAL ANALYSIS (SW)
Scan
CORE
BUSINESSES
Scan
CORE
COMPETENCIES
& RESSOURCES
Scan
CORPORATE
DNA
Value
History
EXTERNAL ANALYSIS (OT)
Scan
INDUTRY
ANALYSIS
Determine
KSF OF
INDUSTRY
Scan
EXTERNAL
ENVIRONMENT
PORTER
MATRIX
PESTEL
MATRIX
BUSINESS
FORMULATION
Values
Mission
Vision
Finance
Organization
Know how
Market share
Brand values / Equity
Products performance
Analyse
SWOT
MATRIX
VALUE
CHAIN
MATRIX
BRAND
EQUITY
MATRIX
STRATEGIC DECISION MAKING PROCESS
Laurent DUSAUSOY
(Inspired by Dr Henrik Rasanen).
VRIN
MATRIX
Examine and evaluate
current business
formulation (Mission,
Vision…)
“DON’T FORGET TO USE ADAPTED
ANALYTICAL PROCESS WITH RIGHT TOOLS”.
Competitive
position
Value Chain
Analysis
ADVICE #3
“ MAKE A LINK BETWEEN BUSINESS FORMULATION AND BRAND POSITIONNING”. BUSINESS POSITIONNING

5. Analyse
TOWS
MATRIX
Market vs Products
(MARKET FOCUSED)
Price vs Perceived Value
(CUSTOMER FOCUSED)
CLOCK
MATRIX
Analyse
ANSOFF
MATRIX
Market vs Market Share
(MARKET SHARE FOCUSED)
BCG
MATRIX
Existing needs
vs
potential New needs
(NEEDS FOCUSED)
BLUE
OCEAN
STRATEGIC OPTIONS
COST LEADERSHIP
MARKET SPECIALIZATION
PRODUCT DIFFERENCIATION
Select and
recommand best
alternative
Implement defined
strategies
(budgets, actions,
people).
Evaluate and
control… (KPI,
analytic tools).
Review (if needed)
initial strategy
OPPORTUNITIES
DECISION
ADVICE #4
“ BE CLEAR AND CONSISTENT IN YOUR BUSINESS DECISION …” STRATEGIC OPTIONS
“MANY OPPORTUNITIES, 3 OPTIONS, 1
SOLUTION, NO MORE…”

6. RIVALRY AMONG COMPETITORS
COMPETITIVE STRUCTURE = OLIGOPOLY
DEMAND CONDITION = HIGH (6-7% Per Year)
EXIT BARRIERS
POWER OF SUPPLIERS
NUMBER OF SUPPLIERS VS BUYERS
LEVEL OF DEPENDENCE ON A SUPPLIER
EFFECTIVE SUBSTITUTES
POSSIBILITY OF SUPPLIERS’ VERTICAL INTEGRATION
AVAILABILITY OF SUBSTITUTES
PRICE OF SUBTITUTES
QUALITY OF SUBSTITUTES
SWITCHING COST TO CUSTOMERS
HIGH
Brand Image = ++++
CRM Programs = ++
Scale economy = +++ (LVMH, Richemont, Kering etc.)
Break Even point = +++
. See Wolrdwide presence.
. See operating expenses.
Integration of suppliers = ++
. ex : LVMH => Léman Cadran, Delos Bottier
More and more distribution access = -
MODERATE
Rising population of middle price brands = ++
Trade down = +
Counterfeit = +
Internet and fashion brands = Zara = +
BARRIERS TO ENTRY
BRAND LOYALTY
SCALE ECONOMIES (CONSOLIDATION).
CAPITAL REQUIREMENT
EXCLUSIVE ACCESS & DISTRIBUTION
Decreasing buyer concentration = +
Increasing number of wealthy = +
Consumers can not drive prices = +
Loyalty programs => Switch = +
Inspired by Bain & Co report.
LOW
Limited high skilled workers = ++
Skills shortage – retiring craftsmen, not
many youngsters willing to learn = ++
Couture-level embroiderers inFrance:
~10,000 in 1920,dropped to ~200 now = +++
Highly specialized “atelier d’arts” with a
narrow scope of expertise = +++
MODERATE
POWER OF BUYERS
NUMBER OF BUYERS RELATIVE TO SUPPLIERS
LEVEL OF DEPENDENCE OF BUYER
SWITCHING COSTS
POSSIBILITY OF BUYERS’ VERTICAL INTEGRATION
ADVICE #5
“ BY THE WAY, CONSIDER THE MAIN CHARACTERISTICS OF THE LUXURY BUSINESS SECTOR”. PORTER MODEL
PORTER

7. ADVICE #6
“ CONSIDER THAT COUNTRY OF ORIGIN IS ALSO A STRONG ASSET”. BRAND IDENTITY
Expertise
Differenciation
Authenticity
Quality standarts
According to Futurebrand survey, (« Made In’research »), the strongest
« Countries of Origin » are defined by their performance in 4 key areas.
The overall ranking per industry is as below :
From 2000 to Future’ Key drivers
Origin as an ‘asset’
Thought of (and trusted)
Intellectual property
Authenticity and
ethics as a competitive
differentiator

8. RELATIONSHIP
CULTURE
(VALUES)
MENTALIZATION
PERSONNALITY
REFLECTED CONSUMER
KAPFERER
BRAND IDENTITY
ADVICE #7
“ AND BE ABBLE TO ILLUSTRATE THIS POINT IN A FEW WORDS = YOUR UNIQUENESS”.
PHYSICAL FACET

9. BRAND
AWARENESS
BRAND
IDENTITY
BRAND
LOYALTY
PERCEIVED
QUALITY
BRAND
ASSOCIATION
« 5 ACTIONS ARE REQUIRED TO MAXIMIZE YOUR BRAND VALUE. ALL ARE PART OF YOUR BRAND EQUITY. »
Emotional
Rational
BRAND PREFERENCE
PERCEIVED BY CUSTOMERS
INTENTED BY COMPANY
BRAND RELEVANCE
EQUITY
ADVICE #8
“ CAUSE HAVING UNIQUE BRAND IDENTITY IS NOT ENOUGH, BE AWARE ABOUT HOW TO CREATE
AND GENERATE STRONG BRAND VALUE”.
BRAND EQUITY
AAKER

10. « YOU CAN CREATE EFFICIENT BRAND EQUITY DASHBOARD FOR FREE BY USING SIMPLE ITEMS AND TOOLS
(FACEBOOK, TWITTER, GOOGLE ETC.). YOU CAN ALSO USE SPECIFIC AGENCIES TO MEASURE IT »
ADVICE #9
“ CREATE AN EFFICIENT BRAND EQUITY DASHBOARD TO ANALYSE THE POWER OF YOUR
BRAND AND THUS BASED ON CUSTOMER BASED BRAND EQUITY PRINCIPLES”.
BRAND EQUITY ITEMS
Salience
Performance Imagery
FeelingsJudgements
Resonnance
IDENTITY
« Who are you »
MEANINGS
What are you ?
RESPONSE
What about you ?
RELATIONSHIPS
What about you and I ?
STAGES OF BRAND DEVELOPMENT: BRANDING OBJECTIVES AT EACH STAGE:
Awareness
Point of differenciation
Positive reactions
Loyalty, commitment
and advocacy
User Profiles
Personality and values
history
heritage
KELLER

11. REALISM = PREMIUM
DREAM = LUXURY
Self distinction
Timeless
Social elevation
Gift
Superlative
Hedonism
Imitation
Ephemeral
Social tribal
SEDUCTION = FASHION
Priceless
Performances
MARKET PLACE
ADVICE #10
“ DON’T MAKE ANY CONFUSION BETWEEN FASHION, PREMIUM AND LUXURY BRAND
POSITIONNING”.
KAPFERER

12. INDUSTRY COMPANY BRANDS PILLARS CONSUMERS
Total control of the value
chain.
Partly control of the
distribution (owned stores).
Never delocalise.
CSR oriented
=> VERTICAL INTEGRATION
Family based business.
Passion for details
Passionated creators
Products oriented
Craftmanship
No licences
=> LIMITED TERRITORY
One to one relationship
Elitism relation
Commitment
Worldwide
Retail is key for brand
experience ( shopping
experience).
SERVICES (NEW).
=> HEDONISM AND
EXCELLENCE IN RELATIONSHIP
WITH PASSION AND
EXCITATION
Heritage
History
Legend
Limit of the price is the sky !
Authenticity
Iconic products
=> SPECIFIC BRAND IDENTITY AND
BRAND EQUITY
OFFER < DEMAND
ADVICE #11
“ TO SUM UP YOUR (FUTURE) LUXURY BRAND, BE SURE TO FULFILL FOLLOWING ELEMENTS AND KEY (MARKET
PLACE) CHARACTERISTICS”.

13. ad)
C O N S E I L S E N S T R A T E G I E D E M A R Q U E S
ipsum
ADVICE #12
“BUT BEFORE ENDING THIS PRESENTATION, DO NOT FORGET TO ADAPTING YOUR OPERATIONAL ACTIVITIES TO LOCAL AREAS ”

14. YOUR BRAND IS ABOUT TO BE UNIQUE AND
SUCCESSFULL
SOON
ad)
C O N S E I L S E N S T R A T E G I E D E M A R Q U E S
ipsum
BRAND IDENTITY
BRAND EQUITY OPTIMIZATION
BRAND PORTFOLIO MANAGEMENT
BRAND SALES DEVELOPMENT
ADRESSE :
3, RUE CHRISTOPHE COLOMB
59700 MARCQ EN BAROEUL
FRANCE
CONTACT :
LAURENT DUSAUSOY
TEL : +33(0) 666 133 179
ldusausoy@me.com