Luxury Brand Management & Environment PDF

GOING BEYOND TOGETHER Luxury Brand Management & the Environment Stefania Masè, Ph.D. Lecture 7 – Recap of the 4Ps IPAG.EDU IPAG.ED GOING BEYOND TOGETHER We can try to resched...

GOING BEYOND TOGETHER Luxury Brand Management & the Environment Stefania Masè, Ph.D. Lecture 7 – Recap of the 4Ps IPAG.EDU IPAG.ED GOING BEYOND TOGETHER We can try to reschedule our second field trip What do you think? IPAG.EDU IPAG.ED GOING BEYOND TOGETHER We will reschedule the last two presentations IPAG.EDU IPAG.ED  GOING BEYOND TOGETHER https://www.allassignmenthelp.co.uk/blog/4ps/ https://www.forbes.com/advisor/business/4-ps-marketing/IPAG.EDU IPAG.ED  GOING BEYOND TOGETHER This is luxury … just forget what I’ve just said! IPAG.EDU IPAG.ED A newGOING role for marketing BEYOND in luxury: TOGETHER Product (and service) innovation Experiential marketing has become a cornerstone of many recent advances in areas such as retailing, tourism and events marketing The marketing of luxury goods has become increasingly complex The characteristics of luxury goods suggest that marketing within the sector is different from many other industries. IPAG.EDU IPAG.ED A newGOING role for marketing BEYOND in luxury: TOGETHER Product (and service) innovation Pine and Gilmore (1999) explained their view of experiential marketing in the following manner: ‘when a person buys a service, he purchases a set of intangible activities carried out on his behalf. But when he buys an experience, he pays to spend time enjoying a series of memorable events that a company stages to engage him in a personal way’. Holbrook and Hirschman (1982) identified the following experiential aspects of consumption: fantasies feelings and fun IPAG.EDU IPAG.ED  A newGOING role for marketing BEYOND in luxury: TOGETHER Product (and service) innovation Pine and Gilmore (1998) suggest that we think about experiences across two bipolar constructs – customer participation and connection. IPAG.EDU IPAG.ED GOING BEYOND TOGETHER Think back to the experiences you had during your visit to luxury stores/ flagship stores in Monaco IPAG.EDU IPAG.ED A newGOING role for marketing BEYOND in luxury: TOGETHER Product (and service) innovation Experiential marketing is a relatively new orientation that is gaining ground not only in Western but also emerging economies and provides a contrast to traditional marketing. Whereas traditional marketing frameworks view consumers as rational decision-makers focused on the functional features and benefits of products, experiential marketing views consumers as emotional beings, focused on achieving pleasurable experiences. IPAG.EDU IPAG.ED  GOING A new role forBEYOND TOGETHER marketing in luxury: Price Is luxury expensive? The major approaches to luxury: Philosophical-sociological perspective: The evolution of attitudes toward luxury The broadest scope of luxury Micro-economic perspective The relationship between prices, income and demand for luxury The middle scope of luxury Managerial perspective The development of a business and the marketing strategy specifically for luxury products The smallest scope of luxury IPAG.EDU IPAG.ED  A new role GOINGforBEYOND marketing in luxury: Price TOGETHER Is luxury expensive? Exceptions to the law of demand: THE BANDWAGON EFFECT VEBLEN EFFECT The bandwagon effect is when people start doing A Veblen good is a good for which demand something because everybody else seems to be increases as the price increases. Veblen goods are typically high-quality goods doing it. The bandwagon effect can be attributed to that are well made, exclusive, and a status psychological, social, and economic factors. symbol. The bandwagon effect originates in politics, where Veblen goods are generally sought after by people vote for the candidate who appears to have affluent consumers who place a premium on the most support because they want to be part of the utility of the good. The demand curve for a Veblen good is the majority. The bandwagon effect can also impact consumer upward sloping, contrary to a normal demand spending and investing decisions. curve, which is downward sloping. The SNOB effect is a phenomenon described in microeconomics as a situation where the demand for a certain good by individuals of a higher income level is inversely related to its demand by those of a lower income level. The "snob effect" contrasts most other microeconomic models, in that the demand curve can have a positive slope, rather IPAG.EDU IPAG.ED A new role GOINGforBEYOND marketing in luxury: Place/ retailing in luxury TOGETHER Over the past decade, the importance of luxury fashion brands globally has gained significant importance Luxury means excess: the best design, the best craftsmanship, the best retailing (the nicest locations and store concepts), and the best customer service occur in the luxury fashion industry and, for these reasons, luxury fashion brands frequently drive the world of marketing strategies (Ko Delegate and Megehee, Staying 2012) focused distribution to on your core specialist business companies IPAG.EDU IPAG.ED A new role GOINGforBEYOND marketing in luxury: Place/ retailing in luxury TOGETHER Intensive Selective Exclusive distribution distribution distribution Benefits Benefits Benefits Global market coverage. Saves money (costs are lower Allows control of the point of sale. This can become a source of loyalty, the than with intensive distribution) customer can find their favorite products Allows control of product availability (the wherever they go. Possibility to coordinate rarity of a product with a prestigious image Induces strong product recognition. marketing actions between that cannot be found elsewhere increases Increases sales in proportion to the number different outlets demand and loyalty) of outlets Allows you to concentrate your Disadvantages Disadvantages efforts on fewer brands Relying on a single outlet makes difficult to Only suitable for low-priced products with Disadvantages maintain a high-level brand image high turnover Adds a selection and validation Not suitable where there is a significant local Generates a low margin step for your distributors. competition Difficult to control the number of distributors IPAG.EDU IPAG.ED  GOING BEYOND TOGETHER Experience at the point Experiential marketing covers all actions of sale: design and aimed at giving the customer a memorable experience at the point of sale atmosphere Stimulation of Affirmation of Highlighting of the senses the brand's products Creating identity emotions The brand at the Proposing the Surprise Creating a link service of the extraordinary experiential Stimulating the 5 senses IPAG.EDU IPAG.ED Welcome to the GOING BEYOND TOGETHER experience economy! Pine and Gilmore, 1998 Aesthetic Experience: This experience is characterized by immersion without active participation. The customer is deeply engaged in the environment and its ambience but does not affect it. Escapist Experience: The escapist experience requires active participation and immerses customers in an activity or environment. They are part of the event or performance. Entertainment Experience: Entertainment experiences are passive participatory in nature. The customer enjoys the event or performance as an observer. IPAG.EDU IPAG.ED Educational Experience: Examples GOING BEYOND TOGETHER IPAG.EDU IPAG.ED GOING BEYOND TOGETHER IPAG.EDU IPAG.ED GOING BEYOND TOGETHER https://www.youtube.com/watch?v=QuflBZZa0uM IPAG.EDU IPAG.ED GOING BEYOND TOGETHER IPAG.EDU IPAG.ED GOING BEYOND TOGETHER IPAG.EDU IPAG.ED A newGOING role for marketing BEYOND in luxury: TOGETHER Promotion An Integrated Marketing Communication Integrated marketing communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. IPAG.EDU IPAG.ED  Tools/ Touch points GOING BEYOND TOGETHER IPAG.EDU IPAG.ED  Best cases from luxury: CHANEL GOING BEYOND TOGETHER Unified Brand Image: Chanel maintains a consistent and luxurious brand image across all platforms, from their high-fashion shows to social media posts. They use a blend of traditional advertising, like print ads in high-end fashion magazines, and digital campaigns that tell a cohesive brand story. Digital and Social Media Integration: Chanel effectively integrates its marketing campaigns across various digital platforms, including Instagram, where they showcase their products, brand history, and behind-the-scenes content, creating a cohesive IPAG.EDU IPAG.ED  Best cases from luxury: LOUIS VUITTON GOING BEYOND TOGETHER Collaborations and Experiential Marketing: Louis Vuitton is known for its collaborations with artists and designers, which are extensively marketed through multiple channels, including social media, in-store displays, and exclusive events, ensuring a unified brand experience. Digital Innovation: The brand also leverages technology, such as augmented reality (AR) experiences in their app, to enhance product discovery and engagement, seamlessly integrating these innovations into their broader marketing strategy. https:// www.voguebusiness.com/technology/ louis-vuitton-to- release-new-nfts IPAG.EDU IPAG.ED  Best cases from luxury: ROLEX GOING BEYOND TOGETHER Consistent Messaging Across Channels: Rolex's marketing strategy focuses on the timeless quality and precision of their watches. This message is consistently communicated across all channels, including television ads, print media, and digital platforms. Sponsorship and Event Marketing: The brand sponsors prestigious events in sports and arts, such as Wimbledon and the Oscars, which aligns with its image of luxury and excellence. These sponsorships are integrated into their marketing communications to reinforce the brand's prestige. IPAG.EDU IPAG.ED  Best cases from luxury: BURBERRY GOING BEYOND TOGETHER Digital First Approach: Burberry has been a pioneer in adopting a digital-first strategy, integrating social media, digital experiences, and traditional advertising seamlessly. Their use of interactive ads, social media campaigns, and even an augmented reality experience in collaboration with Google, showcases their innovative approach to IMC. Personalized Customer Experiences: By leveraging data and technology, Burberry offers personalized shopping experiences both online and in-store, ensuring that every touchpoint is aligned with their brand values and messaging. IPAG.EDU IPAG.ED  Best cases from luxury: TIFFANY and Co GOING BEYOND TOGETHER Cohesive Brand Storytelling: Tiffany & Co. excels in telling a cohesive brand story that spans across their advertising campaigns, social media, and in-store experiences, emphasizing themes of love, beauty, and heritage. Engagement Through Content: The brand utilizes its website and social media platforms to engage consumers with rich content, including stories behind their collections, how-to guides, and behind-the-scenes looks, ensuring that the IPAG.EDU IPAG.ED content is integrated across GOING BEYOND TOGETHER Customer Journey Map Digital Touchpoints Offer to Customers Email Data Landing Page Web Service Paid Content Email Social Media Websites Search Data Loyalty Program Community Mobile App Online Display Survey 3rd Party Twitter/Social Consideratio Awareness Purchase Service Loyalty n Call Center Word of Mouth Mailing Physical Touchpoints Agent & Broker Direct Mail Chat PR Offer in Invoice Store & Branch Ratio or TV Managed Earned IPAG.EDU IPAG.ED  GOING BEYOND TOGETHER Jing Daily, a platform that offers insights into luxury brands in China, features a case study on Adidas. The case study unsurprisingly discusses the Read integrated marketing communication strategy Search implemented by Adidas in China, detailing the Discuss & variety of tools and touchpoints utilized. Share Read it, ready for discussion IPAG.EDU IPAG.ED