1) Premium and affluent consumers are increasingly using social media platforms like Facebook, with over 60% of affluents using social networking in 2008. 2) Luxury brands can benefit from using social media to reach aspirational consumers and foster brand loyalty by engaging in two-way communication and building online communities. 3) Top luxury brands like Gucci, Mercedes-Benz, Coach, and Louis Vuitton have established a strong presence on Facebook with hundreds of thousands of fans and have seen engagement through content sharing and contests.

1. SOCIAL MEDIA FINDINGSClaus Handberg – handberg7480@gmail.com X = ? BRAND

2. Reasons why?…why should luxury brands go digital? Web Promotion Platform Premium, affluent consumers are online! US Affluent Internet users will grow from 43.7 million in 2006 To 57.1 million in 2011 (source eMarketer report 2007) 27% of affluents did participate in social networking in 2007 – went up to 60% in 2008 (source Luxury Institute) On avg. they have memberships in 2,8 social networks and 110 connections on avg. Going beyond exclusivity to reach aspirers creating “lust for the product” and “one day I’ll be able to afford that” feelings 96% of Gen. Y (Forbes calls “Next generation of luxury consumers) are using social media Remember - setting up a Facebook fan-page is free …. But doing active and effective Social Media marketing isn’t “Social Media platforms give brands the opportunity to be a leader of discussion about their products online. Placing a brand in the middle of two-way communication with their consumers, builds meaningful relationships that fosters loyalty and promote advocacy.” Julia Roy, Luxury Brands and Social Media

4. Positive brand sentiment

5. Increased website & retail traffic

6. Increased consumer awareness

7. Increased interaction with in-store promotions and events

8. Real-time consumer feedback for insight and researchWeb 2.0…a change in the virtual landscape ..marketing are conversations “the art of listening, learning and sharing” Social Media genres

9. Social Media……Facebook and others Social Media element: Facebook has become a dominant … and accepted channel in the business environment. Of the 15 most popular pages – three belong to corporations: Coca-Cola, Starbucks and Skittles “Fans” spend on avg. 6 Facebook hours a month – (source Nielsen) Facebook tools translate into 20 languages, ensuring global usability 63% of Facebook users live outside the US. Extensive growth continues – and women over 55 are the fastest growing demographic. Targeted Advertising programs are available for commercial use on Facebook. Corporations can target ads to relevant personal profiles. Facebook boasts that it runs campaigns from 83 of the top 100 brands. - US

10. Luxury brands in social media:…what are they doing Social Media element: Gucci Stats: 568.000 fans - each update receives over 200 interactions Continually updating page with content: text, video, photos. Mercedes Benz: Stats: 248.000 fans Also established Generation Benz, an invitation only branded social network where consumers can give feedback on vehicles Coach: Stats: 580.000 fans Contest where participants designed, shared and rated Coach bag designs. The winner was sold as a limited edition item. Louis Vuitton: Stats: 836.000 fans Ferrari: Stats: 224.000 fans Brands Facebook profile photo - February 2010

11. Social Media……the story of growth in DK Social Media element: Facebook – the DK growth story…. Started in Denmark august 2006. 2007: between 300.000 – 400.000 users 2008: between 600.000 – 700.000 users 2009 January: 1.861.480 users 2010 February: 2.299.800 users Source: JP/Politikkens Hus

12. Social Media……the others! Social Media element: Twitter: Has signed social search deals with Google and MS. Twitter results will now be featured on the first page of Google, in similar fashion to Google news results What people say about our brand on Twitter will become VERY important Twitter.com is globally the 12th most popular website (source: Alexa Top 500 Global Sites) MySpace: Dedicated music & video network, being seen as fading but still holds a dedicated crowd of fans. Can be linked together with Twitter to co-post on both network in one go. Other to be considered: YouTube.com, Playlist.com, behance.net, current.com, ilike.com, jamendo.com, etc…

13. Social Media……KPI’s and measurement Social Media element: A new set of intelligence & measurement Monitor the Social Media Buzz – through Market Intelligence setup Reputation in social media as a KPI of success Tool for changing our brand perception through two-way dialogue with our target audience Work as a powerful research tool Listen to understand customer needs Putting out questions to “friends” and “followers”

14. Case for consideration……even a brand like Old Spice (P&G) can have an effect with social media… “Turn up your man smell” Social Media element: October 2009 The Procter & Gamble brand was running an ad on Facebook hoping to increase its 55.000 strong Facebook fan base. After 2 weeks, Old Spice boasted nearly 175.000 fans. Targeted advertising on Facebook was supported by YouTube Video commercials Today (February 2010) Old Spice has 427.200 fans. http://www.youtube.com/watch?v=LpUrz9RvuPk