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Swarovski consumer insights
- 1. Generating and Applying Consumer Insightsfor Swarovski
- 2. • Swarovski isthe premium brand for the finest crystal adornments since 1895. • It is associated with top-class designers and brands. • Its creative manufacturing process remains a secret that is part of Swarovski’s legacy. • Jewelry’s prices range from $35 up to $1,500. • It has physical and online presence, i.e., Swarovski retail stores and swarovski.com • Although Swarovski creates crystal jewelry and not diamonds, it managed to compete with Tiffany & Co. Background
- 3. Top of mindunaided recall – word cloud
- 4. • Focused on relationships •Have a desire to make someone feel good and special • Buy unique gifts for their special ones People who buy Swarovski as a Gift Demo- graphics Psycho- graphics • Women and men • Single or married • Age group of 18-45 • Medium to High Income Target Group
- 5. • Usage Level:Bought at least once in last 2 years • Price Sensitivity: Low • Level of loyalty: Medium to High • Product Involvement level: High People who buy Swarovski as a Gift Behavior Geo- graphy • Living or spending most of the time in metropolitan areas • Living in San Francisco Bay Area Target Group
- 6. Persona Rachel – 35years Chandler –42 years
- 7. • Qualitative research: – Personal interviews with Target group (in-person) and competition – Sample size of 9 for Target group and 4 for competition • Quantitative research – Survey with Target group, non buyers and self buyers – Sample size of 45 Research methodology
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- 9. • People giftSwarovski to the special people in their lives to show how special they mean to them. Swarovski correctly communicates people’s feelings to others. • People gift diamonds and gold to people who are not very close to them. They want to impress those people by the value of the gift and not what symbolizes. Insight 1 : attitude (belief) • Ads within malls that emphasize relationships: How a mother/wife/daughter felt when she receives a Swarovski. • A wall inside the store to show relationships’ special moments. People can share their own moments of Swarovski.
- 10. • Respondents givehigh importance to variety as well price and value for money when they decide on a gift. However, they are not looking for discounts. Insight 2 : attribute • Stores should always keep the right quantity of bracelets and earrings that are within the $75-$150 price range. Earrings and bracelets are the most common items that people buy for their special ones.
- 11. • Swarovski addsspecial moments to your life. • People can create memorable moments by buying something for their loved ones without an occasion. Insight 3 : motivations • Share videos of real-life moments on YouTube, such as meeting someone special after a long time or saying thank you.
- 12. • Stages ofdecision making for men take place nearby/in the store. • Men seek assistance from women in making the final choice. • Men ask their friends to accompany them. Insight 4 : decision making process • Provide personal shoppers in stores. • Leave the choice on customer .
- 13. • Women liketo talk about jewelry with family members and ask their opinion . • Men don’t discuss jewelry related topics with anyone and make the decision without any consultation with family members. Insight 5 : Gender and family influence • For women, add frequent posts on social media and involve into discussions (#TellUsWhatYouBought). • For men, keep individualistic approach towards every post.
- 14. • Customers wantto enjoy the exclusivity associated with Swarovski. • Negative attitude towards personal emails, TV advertisements or Billboards. Insight 6: Communications • Advertisements only near the stores. • Social media to also keep the brand equity intact by posting absolutely relevant material.
- 15. • Customers trustthat Swarovski knows what a woman wants and that if they go to Swarovski, they will end up liking something and buying it. Insight 7: attitude • The adverts to include a statement, “ We know what a woman wants”. • On social media – “Unable to decide what to buy for the lady you love. Swarovski knows exactly what a woman wants.” Come to Swarovski and ask for our personal shoppers.
- 16. • Customers takepride in associating with Swarovski’s prestigious history, authenticity and skilled craftsmanship in creating every piece . Insight 8: attitude • Archived pictures of old times where people are producing Swarovski jewels on social media. • Show some old trends and how Swarovski was a part of it. • Share facts about the source of crystals.
- 17. • Use wordsin various communication methods Brand association – word cloud
- 18. • Swarovski storeenvironment is welcoming to everyone unlike competitors’ stores. • The pricing strategy is perfect as people associate price with quality . • The advertisement creativity outside the stores is eye-catching and people visualize their special ones wearing Swarovski ; looking glamorous and beautiful . Few insights on what Swarovski is doing right
- 19. 1) How SwarovskiInnovated And Stayed Relevant To Its Market. (November 17, 2014). Fashionbi: Data and Insights about Brands in the Fashion & Luxury Industries. Retrieved from http://fashionbi.com/insights/marketing- analysis/how-swarovski-innovated-and-stayed-relevant-to-its-market 2) Swarovski Targets Teens with Cut-Price New Label. (2012). Marketing Week, 35(7), 4. Source: Business Source Complete 3) Carter, B. (February, 2015). IBISWorld Industry Report 44831: Jewelry Stores in the US. IBISWorld. Retrieved from http://0-clients1.ibisworld.com.library.ggu.edu/reports/us/industry/default.aspx?entid=1075 4) Zelesny, E. (January 21, 2011). Swarovski has right formula for building long-term loyal customer. Luxury Dailly. Retrieved from http://www.luxurydaily.com/swarovski-has-right-formula-for-building-long-term-loyal-customer/ 5) Schiffman, L., & Wisenblit, J. (2014). Consumerbehavior (11th ed., Vol. 2014). Prentice hall. 6) Online Survey Software Tools and Solutions | Qualtrics. (n.d.). Retrieved April 13, 2015, from http://www.qualtrics.com/research-suite/ 7) Tagxedo - Word Cloud with Styles. (n.d.). Retrieved April 13, 2015, from http://www.tagxedo.com/ 8) About Swarovski crystals. (n.d.). Retrieved April 12, 2015, from http://crystals.swarovski.com/brand/about- swarovski/swarovski-crystals.en.html 9) Brand Survey Findings. (2012, October 4). Retrieved April 13, 2015, from https://brandtiffanyandco.wordpress.com/brand-survey-findings/ References
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Editor's Notes
- #5 I will introduce you to our target group. It would include people who buy Swarovski product for someone else as a gift. Here are the demographic characteristics of the group. We target both women and men, single or married, of the age from 18 to 45 because according to most of Swarovski’s campaigns this is an age group the company targets. Income is from medium to high because as Zina mentioned prices range from 35 to thousands of dollars. For psychographic characteristics interests and attitudes of the group were identified: Focused on relationships, have desire to make someone feel good and special, tend to buy unique gifts for their special ones.
- #6 The next are common behaviors held by target group. We concentrate on people who bought Swarovski at least once in last 2 year, because the proportion of heavy users is small for jewelry industry. Price sensitivity is low. Swarovski is successful in its unique marketing approach of building customer loyalty, and that is why the loyalty level is from Medium to high. And since Swarovski is a jewelry brand, product involvement level is high. In terms of geography, out target group are people living or spending most of their time in metropolitan areas, and in the scope of this research we focus on San Francisco Bay Area.
- #13 Several insight about decision making were discovered: First, all the stages of decision making for men takes place nearby or in the store, because male respondents said that they didn’t make any research beforehand, but just noticed the store while passing nearby it, unlike the female respondents who actually said they had looked for products online and already had knew what to expect from the store. We also found out that men actually seek assistance from women in making their final choice or ask their female friend to accompany them. Combining these insights the following actions are proposed. To Provide personal shoppers in stores: This would work in following way: when a man enters a store, he is informed about availability of personal shoppers and that they can assist him if only he asks for it. So thereby, we leave the choice on the customer in the case if he doesn’t want any help.
- #14 This insight shows how people are influenced by family members depending on the gender. Women like to discuss and talk about jewelry with their family members and ask their opinion when buying gifts for someone else. Whereas men like to keep the process to themselves, they don’t discuss jewelry related topics and make the choice and decision without any consultation with family members. Posts on social media should target more women then men and encourage them to participate in discussions by launching events and for example using hashtags like #telluswhatubought The posts directed to men should appear more rarely and individualistic approach should be kept towards every post with the focus on relationships
- #15 1) What was found out thought qualitative research is that customers want to feel that Swarovski is not a brand that is available everywhere to everyone and hence they want to enjoy the exclusivity associated with the brand. 2) Moreover, respondents expressed negative attitudes towards some promotional techniques like personal emails, ads on TV and billboards. Based on this, here are the actions for company: Advertisement should appear only near the stores. That means within the malls / or on the street where the store is located To keep brand equity intact company can post only relevant materials to their social media, this would also prevent from being intrusive
- #19 Any reduction in price will disconnect people on the association as they buy for special people to create special memories.