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8 Ps of Luxury Brand Marketing
I think every girl deep inside dreams about having the money to be able to buy the Louis Vuitton
bag
or being at the red carpet herself and wear a beautiful Chanel dress - Qualitative research, UAE,
2010.
Luxury brands have always been a fascinating space and luxury brand marketing one of the mostcomplicated ones.
So, going by the above consumer quote, this paper attempts to decode what makes Louis Vuitton,
Louis Vuitton;
Chanel, Chanel in simple words what makes a luxury brand desirable? What are the
ingredients/components that
make up a luxury brand?
Is it the physical / functional attributes like the product quality, craftsmanship, design, technology?
As one
respondent in one of the qualitative research in UAE said When you buy something with really high-
quality, you
can genuinely feel the difference. It is in the touch, the feel of the material; its in the smoothness,its in its minute
details...
Or is it the self-asserting emotional stimulation of letting the others know that Ive arrived & I have a
penchant for
finer things in life not common to many? A respondent said I bought my BMW, just to keep my key
on the table
during the meeting. Another respondent said If I stop at a signal I feel I will attract attention of
people.
Or is it that luxury brands are just the stepladder to move to the right circle or an appropriate thing
to have or wear
in that circle? A respondent said There is a proverb which says if you wear nice shoes you enter niceplace.
3 MOTIVATIONS - SELF ASSERTION, DIFFERENTIATION AND GENUINE APPRECIATION FOR PRODUCT
EXCELLENCE:
In my assessment, by-and-large the above are the three major motivators that drive people to desire
and acquire
luxury brands. That said, its important to acknowledge that they are not mutually exclusive.
Exclusivity has always been connected to luxury brands. But from the consumers perspective the
definition of
exclusivity goes through an evolution. At the early stage, having the ability or affluence to own a
luxury brand
desirable and recognizable by everyone is exclusivity. It is a means by which consumers assertthemselves - whether
it is to fit-in or simply to make a statement.
As the consumer moves on and with more people joining the ownership circle, just owning a
recognizable symbol
is not enoughthe new need to differentiate sets in to further confirm their social status and to
stand-out among
the equals. The source of exclusivity, then, can manifest in form of acquiring limited editions or
something with
extraordinary product capabilities or rare materials, craftsmanship; it can also be driven by brands
distinctive
personality or simply the knowledge of the brand legacy. One can also observe that people who seek
differentiation
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wristwatch. Along with a
unique column wheel
chronograph movement,
the day and month appear
in a double window at 12
oclock, with a handindicating the date around
the moon phase. The leap
year is displayed in a small
round window at 4:30
opposite a matching
window for the day/night display at 7:30.
Like all the brands grand complications, it has two
interchangeable backs - one in sapphire crystal that
reveals the movement complexity and the elegance of
its finishing, the other, a white gold solid back that can
be personalized with a dedication or an engraving.Omega Speedmaster Chronograph the moon watch:
Selection by NASA, a walk
in space in 1965 and since
1969 six mission to the
moon is what makes this
series with extraordinary
capabilities. After it
became a life-saving
instrument during the
Apollo 13 mission, the
Speedmaster went on tobecome a symbol of peace,
as both American & Soviet
astronauts wore it in the
first joint space-mission
during the cold war. It
never left the Space
Program as it still the only
watch certified by NASA for
all EVAs (Extra-Vehicular
Activities).
A luxury brand must perform at an experiential level as well, i.e. the emotional value of the brand
the consumers
buy into beyond what the product is to what it represents. For example: Rolex stands of symbol of
heroic
achievement & Tiffany is a symbol of love and beauty.PEDIGREE:
Many luxury brands have a rich pedigree and extraordinary history that turn in to an inseparable
part of the brands
mystique. This mystique is generally built around the exceptional legendary founder character of the
past, making
up an integral part of the brand story and brand personality.
So, when consumers buy say a Cartier or a Chanel product - it is not only because of the product
performance
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factor, but subconsciously they are also influenced by the brands rich lineage, heritage and the
years of mastery.
Coco Chanel started her business in
1913 and within a few decades,
became a revolutionary couturier.
Karl Lagerfeld took the helmin the 1980s and has been
modernizing the brand ever
since.
With Chanel Coco Mademoiselle campaigns
in 1981, 2008, 2009 & the recent 2011,
Chanel has continuously leveraged its
pedigree / brand mystique.
Gucci opened the doors of its own museum in Florence to
mark the completion of the house's 90th-anniversary
celebration.
Similarly, Rolls-Royce celebrated the 100th anniversary of itsiconic emblem, the Spirit of Ecstasy with '100 cars for 100 years'
and featured a collection of Rolls-Royce models, supplied by
members of the Rolls-Royce Enthusiasts' Club, dating back to 1911
PAUCITY:
Over-revelation-and-distribution of luxury brand can cause dilution of luxury character, hence many
brands try to
maintain the perception that the goods are scarce. Case in point - Burberry diluted its brand image in
the UK in the
early 2000s by over-licensing its brand, thus reducing its image as a brand whose products were
consumed only by
the elite. Gucci, now largely sold in directly-owned stores, following a nearly crippling attempt towidely license
their brand in the 1970s and 1980s.
Broadly, theres natural paucity (the actual scarcity), the technology-led paucity and the tactical-
driven paucity.
Natural paucity is triggered by scarce ingredients like platinum, diamonds, etc. and/or those goods
that require
exceptional human expertise, for example handcrafted quality that constraints the mass
production.Technology-driven paucity is as a result of conception-time involved in continuous
innovation and research-&-
development process.
Tactical- driven paucity are more promotional in nature such as the limited editions or the special
series to
generate artificial desire and demand. Another deviation within this is the customization of luxury
good, e.g. Garson
USA custom made a diamond-encrusted Mercedes SL600 for Prince Al-Waleed bin Talal of Saudi
Arabia in 2007.
PERSONA:
The persona of a luxury brand is largely a result of first, its distinctive projection plus coherence of
its applications
across consumer touch-points and second, the brand communication through its advertising.
The visual brand identity captures the brands personality, mystique & emotional values in a
nutshell. The distinct
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and consistent orchestration of the identity is central to establishing the visibility, familiarity &
common identifiable
brand imagery. The visual brand orchestration can manifest by way of its coherent application of its
identity, the
brand color(s), the other design elements like icons, the uniquely identifiable design, branded
environment andeven the tone-of-voice.While the luxury brands visual identity is a fairly stable factor, luxury brand
advertising is a more dynamic and
versatile marketing vehicle. While the pedigree of the brand has its role, keeping-up the
contemporary-appeal and
the newness-factor is crucial for enduring brand relevance. Therefore, luxury advertising not only
needs to generate
the desire for the seasonal collection, but at the same time it must also enhance the brands cool-
quotient, thereby
making it continuously desirable and aspirational.
At an overall level, luxury advertising messages can be
observed:and sensual to distance it
from mass-premium brands
exceptional to their brand signature
Generate major differentiation in its production
and execution
One of the relatively new trends within luxury brand communication is the use of the long-form-
commercials or the
short-film-videos to generate interest with the online audience. It is clearly a pursuit where luxury
brands are
looking to bridge the gap between the familiar world of print and the fast-evolving world of online. Ithas also
proved impactful as in a matter of few minutes, the viewer can have a clear understanding of the
brand image or
the story the brand is trying to convey or simply promotion of the new collection.
The short-flash-videos at Montblanc
website focuses on its craftsmanship legacy:
http://bit.ly/uiSQ8F
Louis Vuitton created a 3-minute
thematic video for its journey
campaign.
http://youtu.be/NQlueM5ETYU
A one-and-half minute video by Tiffany
& Co. focuses on promoting gifting
during holidays.
http://youtu.be/BacfKM3876gApart from these, with the intent of enhancing the emotional
connections with discerning mindsets, luxury brands
have been exploring the digital space by engaging them in their activation programs. The objective is
to generate a
genuine affinity with the brand that transcends beyond the product, to an extent where, the
consumers feel that
they have found a soul mate.
With the objective of strengthening the brands association to
love and romance Tiffany & co. launched
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whatmakeslovetrue.com and iPhone app as a guide to those
who want to take their romantic relationship forward. The
website also showcases select true love stories of real people
to give that personal touch.
In line with its brand essence of symbol of heroic
achievement, each year rolexawards.com showcasespioneering projects of real people that demonstrated
innovative thought and betterment of human-kind. Thereby,
establishing a personal affinity with their audience, beyond
celebrity endorsement.
Some of the luxury brands have also utilized the social media. The objective may not necessarily be,
as deep as,
engaging the audience in their storytelling, but it has been done largely to generate the desire or the
lust for the
brand or the product. It is also an effective tool to keep-up the contemporary-appeal and the
newness-factor by
having a continuous dialogue.Jimmy Choo organized a real-time treasure hunt around
London via Foursquare to engage fans both online and off.
Gucci has
successfully kept
their high numbers
of Facebook fans
engaged by
continually updating
their content,
thereby sparking
conversations in theform of likes and
comments.
PUBLIC FIGURES:
Public-figure or celebrities have been traditionally employed as one of the marketing mix in luxury
brand
advertising and they still continue to garner attention, credibility and impact. Public figures can span
from film-stars
to music personalities, from sports personalities to royal families and even the designer themselves.
But because
celebrity endorsements are no longer exclusive to luxury space and extensively used (and abused)
across mass
categories, it take a different meaning when it comes to luxury brand endorsement.
Not only does the public figures associated values and personality have to resonate with that of the
luxury brands
aura, but theres a distinct difference in the way celebrity role is crafted, executed and strategically
utilized. Beyond
traditional advertising (largely print in selected media), less in-your-face advertising tools are
employed like accessorization or dressing celebrities for their walk down the red carpet, product
placements within movies and
television programs, invites to special events. This strategy attempts to remove the appearance of
selling while
still promoting the product by making it seem as a part of the celebritys lives, thereby positively
affecting
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consumers attitudes, brand value & purchase intention.
Chopard has been official partner of the
Cannes Film Festival since last 14 years,
showcasing and premiering their
collection by accessorizing celebrities on
the red carpet.The Lebanese singer and UNICEF goodwill
ambassador Nancy Ajram was Cartiers
special guest at the Cartier International
Dubai Polo Challenge held in Dubai, UAE
in 2010.
Omega have sponsored the James Bond
franchise since 1995 earlier with Pierce
Brosnan and now with Daniel Craig
Long-form-commercials / short-films have also utilized the celebrity-factor. Chanel for instance
recently created 3-
minute short film with actress Keira Knightley who replaced Kate Moss in its ads for its CocoMademoiselle
fragrance. Other previous faces of Chanel have included French star Catherine Deneuve and Nicole
Kidman, who
represented Chanel No. 5.
Similarly, as a part of their core values campaign, Louis Vuitton used their website as the online
medium to
showcase their celebrity endorsers journey, their story to bring to life how the brand has been
promoting the art of
travel and inspiring legendary journeys.
The Coco Mademoiselle campaign with Keira Knightley
http://youtu.be/TiO2o1NChAUAngelina Jolies journey, her story (her journey to Cambodia) is
one of the celebrity stories featured on Louis Vuitton website
louisvuittonjourneys.com
PLACEMENT:
The retail branded environment in luxury branding is all
about heightening the consumers brand experience and
amplifying the brand aura. Hence, the branded
environment, the movement of truth, is where it must
live the brand by orchestrating immaculate detailing
that engages all senses of the discerning audience.
Starting from the choice of store location, the chain of
touch-points consumer interacts, the salespersons
presentation and the impact of each touch-point is
critical in creating a unique indulging experience.That said, todays evolving luxury consumers are
increasingly seeking beyond the typical sophisticated, over-thetop, cosmetically elegant
presentation or even the exclusive invites, privileged previews. With the increasing
democratization of luxury brands and the rapid emergence of masstige brands the luxury
consumers have
become more discriminating and demanding. They are seeking a more knowledgeable and
professional assistance,
a trusted and reliable collaboration helping them to manage their stature and lifestyle. Not only has
this led to the
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new business offerings like Quintessentially (more below), but also luxury brands are increasingly
investing in
training and empowering their sales staff.
Another important point to note within the placement factor is that it is not limited to the physical
environment
where the brand retails, but it extends to all the environments or consumer touch-points that thebrand associates
itself with. This spans from the extremely selective niche media where it advertises to the sports, the
events, art,
conversations that it places itself with.
If luxury is about environment and aesthetics, then fashion
magazines like Vogue, InStyle, Vanity Fair, Harpers Bazaar,
etc. provide that complementing environment and aesthetics
for luxury brand to advertise in print media.
Rolex associates itself with more than 150 events in golf, sailing,
tennis, motor-sport, arts and at equestrian tournament vs.
associating with sports like football / cricket that have more massfollowing.
Due to their origin in the writing culture, Montblanc supports
and honors modern-day patrons of the arts through forums
like De La Culture Arts Patronage, Young Artist World
Patronage, Young Directors Project, the Montblanc Cultural
foundation and the Unicef cooperation.
Italian carmaker Maserati placed its GranTurismo coupes in "a
guerrilla-style-product-placement for the 2011 Limitless movie
where the main character needed a ride to express luxury, style
and performance.
E.g.: Quintessentially, a British company with 60 officesworldwide describe themselves as a luxury lifestyle company
that provides concierge services to affluent and high net worth
individuals. Their services include exclusive access to the hottest
VIP-events, cultural happenings, once-in-a-life time experiences,
top restaurants, clubs, spas and hotels, access to fine wines,
private jets, luxury cars and yachts, party planners; art, education
and investment consultants; travel and adventure specialists,
bespoke gifting and styling services and much more.
http://youtu.be/0Pf2fJ5xcz0! PR (PUBLIC RELATIONS):
PR in luxury branding plays an enormous role in image proliferation of the brand, thereby subtly
influencing public
opinion. It is also employed to convey other supporting messages and attributes of the brand which
cannot be
explicitly captured in advertising, but by no means are less important to create brands personality,
mystique and
emotional valueswhether its via the pedigree factor or via public-figure any of the previous 7 Ps
mentioned.
It is also a sophisticated branding machine for maintaining ongoing relevance and dialogue with the
luxury
consumer, especially so in fashion, technology and seasonal trends driven categories. At a tactical
level, PR is
utilized to generate buzz & convey the brand news, point of views of inspirers and influencers
(celebrity talk or the
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designer speak), a crucial support for brand activation (like the fashion weeks, sport-events, themed
previews, etc.).
PRICING:
Pricing plays a quite a big role in the way consumers perceive luxury brands. Consciously or sub-
consciously,consumers tend to generate a mental luxury stature or image with the price-range that the brand
operates.
Therefore, it is important for luxury brands to price thmeselves right as setting the price lower
than the consumer
expectation and willingness to pay can potentially harm the brand value, whereas the reverse can
potentially not
given enough justification for consumers to go ahead and buy.
The pricing strategy in luxury brands gained spotlight in the recent past not only because of the
challenging
economic environment, but because of more informed-and-exposed consumers who are more
discriminating anddemanding, for whom premium pricing without substance doesnt imply luxury. A recent research by
Unity
Marketing suggests that affluent shoppers wont spend ten-times more for something only three
times better. The
luxury-brands must, therefore, justify their price through the interplay of the 7Ps mentioned on top,
thereby keepup and maintain a higher perceived value.
The sales promotions also tend to be handled differently by luxury marketers. While few have
resorted to sales and
discounts, most others play it by adding more value to the purchase like gift with purchase, gift-
certificates or
rebates for the next purchase, multiple item discounts, online or email exclusives, more loyaltypoints, no shipping
and handling charges by online retailers, etc. Luxury brands also use the channel of luxury retailers
like Harvey
Nichols, Saks 5
th
Avenue who offer annual sales by offering them slightly lower prices.Another way employed by
luxury brands is by creating an extension into a secondary line with relatively lower price
points like Giorgio Armanis - Armani Exchange, Roberto Cavallis - Just Cavalli, Pradas Miu Miu,
Alexander
McQueens - McQ lines.
KEY LEARNINGS & TAKEOUTS:
In conclusion, the key to luxury brand marketing boils down to the following three points:
y brand must perform at an experiential level
as well.
As luxury consumers evolve, not only these act as points of differentiation, but also as substance to
justify
a premium value and pricing.
generate
ongoing relevance and dynamism through the persona, PR & public-figure factor.
sivity and stature with the
paucity factor
and the placement factor from the retail experience to the touch-points it associates itself with.
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The 8 Ps of luxury brand marketing can provide a holistic framework to luxury marketers. The 8 Ps
may not be a
universal methodology, yet it presents a strong analytical toolbox to audit and leverage the
brand potential.
That said, a pragmatic approach must be underlined, as the situation and challenges would differ
from brand-tobrand and market-to-market.