INSTITUTE 

OF MANAGEMENT TECHNOLOGY ‐ GHAZIABAD 
Post‐Graduate Diploma in Management – Full Time 
(Batch 2019 – 21) 
End Term Exam: VI (Take Home Exam) 
Subject: LUXURY MARKETING (LUXM), Section: A+B+C 
Faculty Name: Prof. Garima Saxena / Sheetal Jain    
Exam Date:    20.11.2020       Time:  4 Hrs.              Maximum Marks: 40 
Instructions:
1) Please attempt ANY FOUR out of SIX questions provided below.
2) Each question is for 10 marks.
3) Maximum word limit for each question is 500 words (part an and b included). Students not
adhering to the word limit would face a penalty.

QUESTIONS

Question 1: In the last few years, various luxury brands including Louis Vuitton, TAG Heuer,
Montblanc and Hublot have launched smartwatches with several unique features. However, the
sales of these luxury smartwatches have been far from expectations.

a) Explain the characteristics of the target segment of such luxury smartwatches. What customer
value dimensions are likely to be the most important for the category of luxury smartwatches in
comparison to traditional luxury watches? (5 marks)

b) Explain the different ways of brands extension in luxury market? Provide reasons why you
believe the above described brand extensions are likely to succeed or fail. (5 marks)

Question 2. Recently, Tiffany & Co. has announced a program detailing the provenance of the
diamonds they sell, beginning with country and mine of origin. Demonstrating a commitment to
traceability, the New-York based jeweler plans to share this “Full Craftsmanship Journey”, from
where the diamond was unearthed, where it was cut, polished & graded, and details about its
incorporation into the finished piece of jewelry.

a) Do you think shift from opacity to transparency is very crucial for success of luxury brands
today? (5 marks)
b) How technology and innovation can help achieve sustainability in luxury industry? Explain
with examples. (5 marks)

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Question 3: With European and US economies suffering due to the COVID-19 pandemic, the
dependence of luxury brands on China for sales and growth has further deepened. However,
various experts are of the view that most western luxury brands fail to understand the fast-moving
and techno-savvy Chinese luxury customers. Managers of various firms still operate with the older
belief (or even a bias) that Chinese luxury consumption is just about status and a big logo. In order
to win the true Chinese luxury consumers, brands must have and tell a compelling and authentic
brand story.
a) Explain the importance of storytelling for luxury brands. Use examples to elucidate your point.
(5 marks)
b) With your knowledge of luxury marketing in developed markets versus emerging markets,
explain how there are both similarities and differences between the two luxury markets.
(5 marks)

Question 4: ‘Little Tags Luxury’ is a multi-label e-boutique launched in India on 26th September,
2020 with celebrity moms Soha Ali Khan and Neha Dhupia sharing their motherhood stories on
Instagram. It offers top international designer labels like Diesel, Balmain, Pinko, Dsquard, Molo
and others in kids wear to the Indian audience.
a) Do you think such a multi-brand e-retailer in the kids wear category would succeed in India?
Explain your reasoning in detail. (5 marks)
b) Do you think it is a wise decision for international wear luxury brands to use this multi-brand
e-commerce retailer in India? Explain the benefits and challenges with using such a channel.
(5 marks)

Question 5. Lately, authenticated luxury consignment marketplace, The RealReal announced its
partnership with Gucci. The inherent longevity of luxury products supports a circular economy
and, by joining forces with The RealReal, Gucci is promoting this avenue to extend the life of its
products even further.

a) Will pre-loved fashion become mainstream in the luxury fashion industry? Explain. (5 marks)
b) Do you think this is a right move or it might threaten the exclusivity aura of luxury goods?
(5 marks)

Question 6: Luxury has always been about pampering its clients and making them feel special.
This has remained unchanged during the COVID-19 pandemic also. However, new ways have
been devised by luxury brands to entice loyal clients.

(a) What strategies are the luxury brands adapting to attract consumers today? (5 marks)

(b) Will these new norms change the dynamics of luxury industry forever? (5 marks)

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