Presented by Pam Danziger, Unity Marketing at LuxePack New York

2©Unity Marketing, 2016

Former Harvard University Professor, and now Professor Boston University, Juliet Shor introduced the ‘lipstick effect’ theory in her book

entitled The Over Spent American (1999). Her thesis:

Consumers will buy higher-priced, more prestigious lipsticks, specifically Chanel, that are used in public, vs. lower-priced, less

prestigious brands that are used in privacy of the bathroom. Further in times of economic troubles, consumers will indulge in ‘little’ luxuries, like

Chanel lipstick, instead of expensive luxuries, like Chanel suits or handbags.

Adding supporting evidence of the ‘lipstick effect,’ Leonard Lauder confirmed that sales of his company’s lipstick rose after 9/11 terrorist

attacks in a New York Times article published May 1, 2008.

Premise #1

Is luxury purchased primarily for status & prestige?

ONLY SOME PEOPLE

Premise #2

In times of economic turmoil & uncertainty, do consumers opt for ‘little luxuries’ rather than ‘big luxuries’?

YES!

3

©Unity Marketing, 2016

4

©Unity Marketing, 2016

5

©Unity Marketing, 2016

Same food served in different ways creates vastly different customer experiences and vastly different results.

Creating heighten expectations of a fine-dining experience creates the impression that people got fine-dining quality food. They rated the food very high.

The exact same food served without those fine-dining expectations resulted in the very same food getting a much lower rating.

Dr. Brian Wansink is the John Dyson Professor of Consumer Behavior at Cornell University, where he directs the Cornell Food and Brand Lab.

He studies how people’s perceptions about food impact their behavior around food.

6

©Unity Marketing, 2016

©Unity Marketing, 2016

7

8©Unity Marketing, 2016

Old Style New Style

Luxury Has a Brand New Style

High negatives• Conspicuous consumption• Indulgence• Exclusivity• Elitism• Extravagance• Wealthy 1%

Luxury for the Rest of Us• Practical• Functional• Inclusive• More affordable• Democratic

©Unity Marketing, 2016

9

10

“Luxury is just a marketers’ term that means something is overpriced and too expensive.”

Calling a brand ‘luxury’ doesn’t necessarily make it so

Use the ‘L-Word’ with extreme caution!

©Unity Marketing, 2016

Luxury for Me

Luxury isn’t about you, and what you think, but about me and who I am

©Unity Marketing, 2016

11

Sport watches (FitBit, Ironman, ShinolaRunwell) are the new ‘anti-status’ symbol, that say not about how much watch I can afford (e.g. Rolex) but who I am and what I need my watch for.

Heard in recent focus group with millennials, “The initials after my name are my status symbol.” Consumers are

looking for new meaning beyond traditional status symbols.

Status symbols reflect elitism, snobbishness, one-upmanship.

Anti-status status symbols tell you about me.

©Unity Marketing, 2016 12

For Dr. Perricone

beauty the luxury is on

the inside not on the

outside. And the

positioning of the ‘no

foundation foundation’

is about the luxury of

beautiful skin for the

wearer, not the

beholder.

©Unity Marketing, 2016 13

Luxury of Discovery

Thrill of discovery invites customers to spread the word –Discovery anchors your most powerful marketing tool: word-of-mouth

©Unity Marketing, 2016

14

Exclusive etailer

Project Gravitas got

started doing the one

essential LBD in 8

different ways for

every body type.

Thrill of discovery

gave women

something to shout

about and share with

friends.

©Unity Marketing, 2016 15

Who knew ground up

rocks could provide

such good coverage

and be so good for

your skin?

It was a

revolutionary idea

that had to be

shared.

©Unity Marketing, 2016 16

Luxury of Simplicity

Today, more than ever, the KISS principle -- Keep It Simple Stupid! – is valued. Embrace the concept of simple elegance.

©Unity Marketing, 2016

17

Everlane presents a

new style of luxury at

very un-luxury prices

Online-only Everlane

sophisticated, basic

styles with high-end

fabrication priced way

below retail

Brand story telling

explains how Everlane

can price so low

©Unity Marketing, 2016 18

Glossier doesn’t call

its three-phased

approach to beauty

‘luxury,’ but it asks

its customers to tell

what luxury is for

them.

©Unity Marketing, 2016 19

Kiehl’s sells simplicity itself – simple product, simple ingredients, simple packaging – and extraordinary results. The label spells out Crème de Corps point of difference with quality ingredients. The simple bottle announces the luxury is inside the bottle, not what’s on the outside. It’s prominent “since 1851” heritage says a brand that has been around that long must be doing it right.

Copyright Unity Marketing, 2016 20

The label makes this simple elegant promise:

“Continued use for 10 days will provide a

skin texture heretofore unattainable”

21©Unity Marketing, 2016

Beauty brands need to deliver meaningful luxury to the customer, which is all about the enhanced, special experiences they offer.

22

©Unity Marketing, 2016

23

©Unity Marketing, 2016

24

©Unity Marketing, 2016

Today’s consumer marketers face an increasingly competitive environment with many business and marketing challenges.

Unity Marketing leads with research to help businesses gain insights into their core customers and their best target customers – the affluent who have discretionary income to spend.

Affluent Consumer Tracking Study Two waves

Spring Shopper Track

Fall Product & Services Track

Consumer Gifting Study In-depth investigation into gift choices and shopping

behavior among middle-income to upper-income consumers.

Special investigation into how consumers use the internet for their gift research, planning and buying needs.

Survey completed April 2015 (n=1,649 consumers HHI $97,900)

Art, Framing & Wall Décor Study The ‘selfie’ culture has created a new market for frames

and wall décor. In addition, affluent consumers are collecting more original, one-of-a-kind artwork to display on their walls.

An in-depth study is planned in 2016 to investigate the new art, framing and wall décor market, with a special section devoted to how consumers use the internet in their pursuit of new art and frames to display.

Millennials on the Road to Affluence This new study has important implications for every

brand that wants to connect with the next generation of luxury consumers: the Millennials

To deliver more actionable

insights to marketers about

the best potential

customers in the U.S.

consumer market today –

the affluent top 20%.

Qualitative expertise Focus groups, IDIs

Expert, influential & channel partner studies

Quantitative expertise Survey design

Data analysis including statistical data analysis

Analyzing survey results for key take aways

Marketing & branding consulting How to use research to create more powerful brands

and more compelling marketing

Speaking experience Presentations that deliver the most important

information and insights that the audience can take away and put into action

We are a boutique

marketing research and

consulting firm.

We lead with research to

advise businesses that need

insights into mind of

affluent consumer with

incomes $100k and above.

Greater access to new AFFLUENT consumer SAMPLES

In-depth data about HIGH-END & LUXURY customers

Understanding of BRAND USAGE & AWARENESS

Key COMPETITOR BRAND usage & awareness

Purchase & usage TRACKING STUDIES

CUSTOMER SURVEYS and studies to identify new opportunities

Unity Marketing can

provide more data about

the affluent consumers,

combining both qualitative

and quantitative research

strategies.

UNDERSTAND your best prospective CUSTOMERS’ needs and desires

Get the COMPETITIVE EDGE

Develop more effective MARKETING STRATEGIES

RESEARCH your market

SHARE customer KNOWLEGDE & INSIGHTS

Evaluate NEW PRODUCTS

Find best CHANNELS OF DISTRIBUTION

Track TRENDS in the market

Unity Marketing can help you

use the research data you

have on hand to greater effect

to drive growth for your

business.

We consult with companies of

all sizes, from small to mid-

sized to large multi-nationals.

We support retailers,

manufacturers and marketers

in both B2C and B2B

marketing strategies.

Presentations CUSTOMIZED to specific needs of your group

PREPARE your marketing and sales teams for the competitive landscape of tomorrow

Gain “All Access” into the mind of today’s most influential shoppers – the AMERICAN AFFLUENT

Turn research-based INSIGHTS into ACTIONABLE STRATEGIES for reaching your most profitable customers

For over a decade Pam Danziger has studied the changing preferences, shopping habits, attitudes, and lifestyles of affluent consumers.

Her presentations, speeches, seminars, webinars & workshops are customized to the needs of each audience.

Each presentation is designed to give the audience news they can use to understand the mind of today’s most influential shoppers – the American Affluent.

The goal is to deliver research-based insights that can be turned into actionable marketing strategies for each member of the audience to reach their most profitable customers.

Unity's research-based

approach can help

marketers and retailers find

new opportunities for

growth in their businesses.

Email Pam188@ptd.net or

call 717.336.1600 to discuss

your marketing challenges.

Pam Danziger and the Unity Marketing team offer a range of

tools and resources to help marketers and retailers identify

their best customers and channel partners and how to reach

them most effectively with targeted marketing strategies

and tactics.

Speaker, author, and market researcher Pamela N. Danziger is internationally recognized for her expertise on the world's most influential consumers: the American Affluent. Her new mini-book, What Do HENRY's Want?, explores the changing face of America's consumer marketplace.

As founder of Unity Marketing in 1992, Pam leads with research to provide brands with actionable insights into the minds of their most profitable customers.

Leadership in luxury marketing recognized through Global Luxury Award presented by Harper’s Bazaar, London May 2007.

She was named to Luxury Daily's Luxury Women to Watch in 2013. She is a member of Jim Blasingame: The Small Business Advocate’s Brain Trust and a contributing columnist to The Robin Report.

Currently Pam is working on a new book : Meet the HENRYs: Millennials on the Road to Affluence

Her most recent books are What Do HENRYs Want? and Shops that POP! 7 Steps to Extraordinary Retail Success.

Previous books, Putting the Luxe Back in Luxury: How New Consumer Values Are Redefining the Way We Market Luxury; Shopping: Why We Love It, Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes & Why People Buy Things They Don’t Need