The essence of luxury products as mentioned above is based on a paradoxical relationship between price and demand for this goods. This paradox also affects the tools used in luxury brand marketing. By the main objectives of the marketing strategy of luxury D. Dubois recognizes: craftmanship, high cost, high price and 12 T. In accordance with the D. Dubois considerations, luxury product does not have to, and indeed can not be cheap.
Its production must take place at a very high standard, this applies to both materials and quality craftsmanship. Production of luxury products is very common in nature with craftmenship. Already this shows huge differences in the development of product strategy of mass and luxury goods.
Another element of the marketing mix of luxury goods standing at odds with the assumptions of the mass market is undeniably price. In the case of mass products market, it must first of all respond to the functionality of the product and reflect its value to the customer. The paradox of marketing of luxury goods manifests itself most strongly at this site, namely the strategy of price, which in this case is to simply be the highest possible price that the consumer is willing to pay for the product.
Dubois also points to the limited distribution, as another part of the paradox of luxury goods. This aspect should be seen both from the point of view of the company's strategy and future prospects of consumer expectations.
It should be noted that the essence of luxury goods is just in their unavailability to the average consumer. Aura of a luxurious nature of the product is due to its inaccessibility, and hence the uniqueness of individuals who own it. Intensive distribution of the product not only negate the idea of luxury, but also would conflict with the expectations of consumers.
Price is a practical barrier to unwanted consumers of luxury goods, and the distribution is transparent expression of their unavailability.
The approach to the management of luxury brand presented by D. Dubois is very niche. High prices, low promotional activity, or even a limited distribution make the product become less available. Getting the product requires the consumer to take a lot of effort. That consumers want to take the effort, luxury brand must somehow attract him. The brand must have a very strong personality. Requires the use of specific aesthetic concept.
In accordance with the considerations D. Chevalier, G. Mazzalovo, Luxury Brand Management. Selection of luxury brand management tools requires emphasizing its key values.
Luxury brand strength lies in its identity. It turns out that the ethical and emotional values are the fundamental factor affecting the value of the brand. This approach is also emphasized by J. Floch indicated levels of definition and analysis of brand universe that are presented in Figure 2.
Figure 2: Levels of definitione and analysis of a brand universe. It should be recalled that the concept of luxury is very relative. While the company communicates a unified message, the same for all markets, its reception may be different, even for different geographic markets.
Characteristics of a luxury brand in the opinion of Polish consumers are subject to an annual survey conducted by KPMG. The overall results of the study in terms of the characteristics of luxury brands are shown in Figure 3 The study was conducted on a nationwide sample of consumers. As an important criterion for the selection of the sample was treated the income.
In the absence of a clear definition of luxury, and hence the lack of consumer awareness in this regard, the respondents were asked to mention the spontaneous features associated with the luxury brand. Then the task of the respondents was to assess the significance of these characteristics on a scale of 1 to 7 where: 1-negligible, 7 - the most important.
Figure 3. Undeniably the highest value for Polish consumers is high quality of luxury products. It should be noted, however, that apart from the high price, brand ambassadors or opinions of close environment other features relate primarily to the emotional values.
It seems important to identify marketing tools that will allow the effective management of such specific brand as luxury one. One of the proposals shown above, is the concept of marketing paradox of luxury goods presented by D. The authors considerations, however, oscillate around a basic set of tools of the marketing mix, such as: product, price, distribution and promotion.
Aurora represents a practical look at the management of the luxury brand, by virtue of the cooperation in the field of strategic communication projects of De Beers, Ford-Lincoln, Al Tayer Group, Omega watches, luxury real-estate projects, luxury healthcareprojects, etc.
Although the scope of these tools is much wider than the traditional 4P, it should be noted that they have common points. Performance is an element of the product. Pedigree results from a particular product management, but also becomes an important element of the promotion.
Persona, public figures, and PR are part of the traditional approach of promotion. In contrast, price and placement can be uniquely identified with the price and place in the traditional sense of the marketing mix 4P of mass products. The relationships between the scope of marketing tools of luxury and mass brands are shown in Figure 4. Craftmenship is indicated as an important element in the strategy of luxury goods also by D. It should be noted, however, that not only craftmenship is sufficient feature of luxury product.
As rightly pointed R. Aurora also other features are important. This approach is also popular among the associations incorporating luxury goods producers such as Comite Colbert, or Altagamma. French Comite Colbert association was founded in and is the oldest organization of this type. It incorporates the most important French luxury brands and promotes these brands in global markets From luxury products Comite Colbert requires, among the others: strong brand associated with exclusive lifestyle, a very high quality and design at the highest level.
In the case of the Italian organization Altagamma greater emphasis is placed on innovation. Although even in this case the quality, design and prestige are important criteria.
A perfect example of luxury brands that meet the criteria, set out in this place by R. Aurora are the finest in its category brand watches, such as Patek Philippe, and Omega. These are not only watches with a long history in the market, but also the art equipment for not only measuring time. One of the Omega watches is the only watch cerified by NASA and is being sent on the most important space missions. But innovation and new technologies can be found even in such traditional products, like Louis Vuitton suitcases.
Brand in response to changing consumer demand has launched ultra-light luggage, well-proven in the aircraft. Performance, however, is not limited only to the functional value of a luxury product. It also includes a very important factor, namely the emotional value that luxury product provide. Experiental and symbolic dimension of luxury noticed also C. Tynan, Mckechine and C.
Luxury product should communicate specific values, such as Chanel brand is a symbol of beauty, classic. Another P in the marketing of luxury goods is pedigree. Luxury brands are often accompanied by a very rich history, legendary founder character.
Tynan, S. Mckechine, C. Buyers of Louis Vouiton suitcases appreciate them not only for their excellent quality, but also for their remarkable history, dating back to the mid-nineteenth century. A perfect example of the brand's history is also a Gucci museum in Florence, or biographical book written by a family member, Jenny Gucci titled "Gucci Wars", describing not only the family intrigues but also presenting the rich history of the brand.
The counterparts of distribution in the traditional approach of marketing mix in the luxury goods are paucity and placement. Luxury products are supposed to be hardly accesable, their consumers expectes that. Paucity may, however, result from three factors. It may result from natural paucity the actual scarcity , the technology-led paucity and the tactical-driven paucity.
The natural paucity applies to such products as diamonds and platinum. The undisputed leader in the diamond market is Van Beers. Tehnology-led paucity refers to products where changes in technology, innovation, result in very high costs and are time consuming. Emphasis on innovation, technology is essential for the production of luxury cars, watches, electronics and appliances. Craftmentship is the element of product strategy, which causes paucity of products.
No mass production causes that even for such prosaic products as handbag, the customer must wait six years, as is the case with Hermes Birkin model. It turns out that even in the luxury cosmetics market innovative technologies are an essential part of product policy. They do not limit the availability of the product directly. Skip to search form Skip to main content You are currently offline.
Some features of the site may not work correctly. This qualitative study contributed to the growing body of research in luxury brand management by constructing a framework that can be utilized by luxury companies and conglomerates to develop their business strategies.
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Skip to main content. Start your free trial. Book description The definitive guide to managing a luxury brand, newly revised and updated What defines a luxury brand? Includes dedicated chapters focusing on each of the main functions of a luxury brand, including brand creation, the complexity of managing brand identity, the convergence of arts and brands, and much more Addresses the practical functions that can make or break bottom lines and affect brand perception, such as distribution, retailing, logistics, and licensing Focuses on brand life-cycle, brand identity, and licensing issues A compelling and comprehensive examination of the different dimensions of luxury management in various sectors, this new edition of the classic text on brand management is essential reading for anyone working with or interested in making the most of a luxury brand in the post-recession world.
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