Brand Identity and Pricing Strategies

Identity Prism

• The Identity Prism is a model used to analyze brand identity.
• It consists of six elements: Physique, Personality, Relationship, Culture, Reflection, and Self Image.
• Physique is about tangible elements associated with the brand, such as logo, design, etc.
• Personality refers to how the brand would be described if it were a person.
• Relationship is the connection between the brand and its customers.
• Culture encompasses the values, beliefs, and heritage that define the brand.
• Reflection is how the brand is perceived by the outside world.
• Self Image is how the brand sees itself.

Pricing

• Price is a key aspect of luxury branding and should not be excessively communicated.
• The price should be perceived as high, emphasizing the brand's exclusivity.
• Sales and discounts should be rare and strategic, mainly for rewarding loyal customers or attracting new clientele.
• Price should be justified by the value and exclusivity of the product.

Sales Channels

• Luxury brands use a mixture of online and offline channels to reach their customers.
• Offline channels include directly operated stores, shop-in-shop, third-party stores, and door-to-door.
• Online channels provide information on price, offer instantaneity, and allow brands to reach new markets and customers.
• Online channels should be part of a well-rounded phygital experience.

Retail

• Luxury retail focuses on creating a unique and immersive experience for customers.
• It involves elements like location, architecture and design, technology, sensory cues, and customized services.
• The focus is on building a relationship with the customer and fostering brand loyalty.

Staff

• Luxury brands employ staff trained to be brand ambassadors and experts in their field.
• Staff should be focused on building one-on-one relationships with customers, providing personalized experiences.
• Customer loyalty and satisfaction are vital for successful luxury brands.

Luxury Offers

• Luxury offers go beyond standard products and focus on creating an experience for consumers.
• They seek to associate the product's form with its functionality, create symbolic interactions between consumers and the brand, and build a sense of community.

Luxury Offer VS Premium Offer

• Luxury and Premium offers differ in their marketing mix and approach.
• Premium offers are often mass-produced, have longer product lines, and rely heavily on advertising and digital marketing.
• Luxury offers are locally produced, focus on exclusivity and timelessness, and rely on personalized communication and a strong brand reputation.

Kapferer’s 8 Commandments of Luxury

• Kapferer outlines eight key commandments for luxury brands:
• No offshore production.
• No advertisement to sell (emphasize brand image, not specific products).
• Communicate to an audience beyond the core target to create exclusivity.
• Maintain complete control over the value chain (production, distribution, etc.).
• Manage all distribution channels.
• Avoid granting licenses to maintain exclusivity.
• Continuously increase average selling prices to reinforce luxury positioning.
• Develop direct one-to-one relationships with clients for personalized experiences and brand loyalty.