Module: Luxury Brand Management

Code: MKT3057-39FT
Student ID: 23852739
Instructor: Nguyen Minh Trang
Contents
Executive Summary.....................................................................................................................................2
The Assessment Task The goal of this project is to create a thorough portfolio that addresses the
subjects and inquiries listed below..........................................................................................................2
Part 1: Using at least 3 academic sources, discuss the characteristics that differentiate luxury brands
from other types of brands...................................................................................................................2
Part 2: Provide a brand case study example that supports this portfolio entry. Your example should
illustrate luxury brand characteristics..................................................................................................2
Part 1:..........................................................................................................................................................2
Part 2:..........................................................................................................................................................3
References (1).............................................................................................................................................4
Task 2:.........................................................................................................................................................5
Part 1: Using at least 6 academic sources, explain and critically evaluate proposed processes and elements
of brand storytelling in building luxury brands............................................................................................5
Part 2: Using a storytelling process/framework and luxury brand of your choice, analyse and evaluate the
brand’s storytelling practice. You should include both strengths and weaknesses of their current approach
and recommend creative and innovative improvements to current practice.................................................5
Part 1:......................................................................................................................................................5
Part 2:......................................................................................................................................................7
Recommendations:..............................................................................................................................9
References (2):............................................................................................................................................9
Task 3:.......................................................................................................................................................10
Part 1: Select a luxury brand challenge/opportunity of your choice from the ones covered in the module.
Using a variety of research sources, explain and critically evaluate the challenge/opportunity this issue
presents to luxury brands...........................................................................................................................10
Part 2: For luxury brands generally, propose a range of creative and innovative solutions to addressing
this issue to sustain and build brand equity................................................................................................10
Part 1:....................................................................................................................................................10
Part 2:....................................................................................................................................................11
References (3):..........................................................................................................................................12
Executive Summary
The Assessment Task
The goal of this project is to create a thorough portfolio that addresses the subjects and
inquiries listed below.
Portfolio Entry 1: Characteristics of luxury brands (LO: a, b, c, e)
Task 1:
Part 1: Using at least 3 academic sources, discuss the characteristics that differentiate
luxury brands from other types of brands.
Part 2: Provide a brand case study example that supports this portfolio entry. Your
example should illustrate luxury brand characteristics.

Part 1:
Seven common traits set luxury brands apart from mainstream ones, according to De
Barnier et al. (2012): exceptional quality, hedonism (beauty and pleasure), price
(expensive), rarity (which is not scarcity), selective distribution and related personalized
services, exclusive character (prestige, privilege), and creativity. When creating a luxury
brand, each of the seven requirements must be satisfied in order to set it apart from other
types of products (Kapferer and Bastien, 2012).

Product: rare, hedonistic, and of the highest caliber

Since the intricate process and high standards of handwork are impossible to replicate by
machine, one of the core tenets of a real luxury strategy (Kapferer and Bastien, 2012) is
to create locally by skilled craftsmen and respect the origins of raw materials (Kapferer,
2010). Therefore, what sets "hand-made" items apart and draws in the upper class and
aficionados is their artistry, inventiveness, and refinement. The essence of luxury
products is associated with their uniqueness, increasing the value of the owner (Jang et al,
2015). Both the quantity of items offered and the clients' access to them are always
restricted by luxury companies (e.g., products are only available sometimes or at specific
locations).

Price: Expensive

Dryl & Beben (2014) assert that one important distinction between luxury brands and
mainstream ones is their high price. Consequently, luxury businesses seldom cut their
pricing in an effort to attract more clients. Rather, continue to attract a select few
consumers who can afford the high costs and expand the base of consumers who are
prepared to pay for brand access.
Location: specific distribution, related individualized services

Luxury firms always need to invest in flagship/concept shops that offer exceptional high-
end experiences in order to convey to consumers the luxury of the brand. A flagship shop
is a location that stands in for a brand, showcasing the products that go into the brand's
name to project the desired image. In the meanwhile, a concept shop serves as a venue for
the showcasing of brand-new, difficult-to-find merchandise. The store's layout and design
must be extremely creative, unique, and provide a unique shopping experience for
customers in order to highlight their luxury and establish a connection with their
intangible premium values. In order to produce premium bespoke services and rationalize
their luxury, the brand must also guarantee a singular peak experience that is distinct
from everyday life through additional venues where the brand is present, such as break
rooms, tea rooms, spas, private rooms, clubs, banquet halls, etc.
Exclusive nature (privilege and status), inventiveness in communication

Actually, no other product category provides advantages that are more symbolic than
functional. Vigneron and Johnson (2004) state on page 490 that the symbolic meaning is
mostly related to human values and way of life. Luxury companies effectively attract
upper-class and upper-middle-class consumers who desire to demonstrate social status by
linking the possession of luxury products with evidence of high-class social standing.
Although they are the majority, they may not buy luxury goods frequently, but they may
occasionally pay to satiate their desire to become part of the upper class.

Luxury brands communicate as though their worth extends beyond their offerings. As a
result, luxury brand advertising should not only highlight certain items but also the
lifestyle, attractiveness, and look that the brand aspires to. When creating a luxury brand
image, this is known as the "abstract principle" and inventiveness. It helps the brand carry
several levels of meaning, giving buyers the freedom to express their own imagination
about the product and igniting a strong desire for it.

Part 2:

French luxury apparel business Hermès was established in 1837. The group's areas of
expertise include ready-to-wear, jewelry, timepieces, fragrances, accessories, leather
products, and home furnishings.
Hermès resists assembly lines, automation, and mass manufacturing and is steadfastly
committed to its traditional business strategy. The majority of Hermès products are
handmade in Les Ateliers Hermès, medium-sized factories in France that prioritize
premium manufacturing. Hermès asserts that the majority of its products are made
entirely by one person, purportedly to guarantee the product's excellence and
individuality.
Prestige Pricing, a premium pricing approach was implemented by Hermès. This
approach is limited to luxury goods and brands, emphasizing lifestyle and ego expression
via use of these goods and services. Hermès solely targets the affluent market,
concentrating on a little portion of the market but generating enough revenue to support a
whole company, therefore it does not gradually lower prices. The Hermès Birkin bag,
which retails for between $8,300 and $150,000 and symbolizes the brand's renowned
workmanship, is one of the company's most lucrative products.

Hermès has always adhered to the company's guiding concepts of "exclusivity" and
"heritage" in its communications. The advertisements are meant to honor the Hermès way
of life rather than to promote goods made by other tailors. Additionally, the brand
supports events specifically designed to enhance the company's legacy and reputation.
Additionally, Hermès works with independent designers and artists to increase the
prominence of its products. The partnership's primary goal is to increase exclusivity
surrounding particular product categories. The traditional "limited edition" items serve
this purpose. Hermès is another very inventive company; according to Forbes 100 Most
Innovative Companies List 2020, it is ranked 29th. Social media and content marketing
have been effectively included into all of Hermès' advertising efforts through its
communication strategy. One recent example is the creation of two incredibly popular
applications, Parcel Manager and Silk Knots, as well as the appearance of an online pop-
up virtual store devoted to items. Hermès also makes large investments in internet video,
print, TV, and photographic advertising to market various collections to various
audiences at various periods of the year.

References (1)
De Barnier, V., Falcy, S. and Valette-Florence, P. (2012) 'Do consumers perceive three
levels of luxury? A comparison of accessible, intermediate and inaccessible luxury
brands', Journal of Brand Management, Vol. 19, No. 7, pp.623-636.
Dryl, W., & Bęben, R. (2014). Luxury brand management.
Jang, W. E., Ko, Y. J., Morris, J. D., & Chang, Y. (2015). Scarcity message effects on
consumption behavior: Limited edition product considerations. Available at :
https://www.researchgate.net/publication/281672199_Scarcity_Message_Effects_on_Con
sumption_Behavior_Limited_Edition_Product_Considerations

Kapferer, J-N. (2010) 'All that glitters is not green: the challenge of sustainable luxury',
Available at :
https://www.researchgate.net/publication/306152247_All_that_glitters_is_not_green_The
_challenge_of_sustainable_luxury

Kapferer, J-N. and Bastien, V. (2012) The Luxury Strategy: Break the Rules of
Marketing to Build Luxury Brands, Kogan Page, London., Available at :
https://www.researchgate.net/publication/281251957_The_Luxury_Strategy_Break_the_
Rules_of_Marketing_to_Build_Luxury_Brands

Vigneron, F. & Johnson, L.W., 2004. Measuring Perceptions of Brand Luxury. Brand
Management, 11(6), pp.484-506.

Portfolio Entry 2: Luxury brand storytelling (LO: a, b, c. d, e)

Task 2:

Part 1: Using at least 6 academic sources, explain and critically evaluate proposed
processes and elements of brand storytelling in building luxury brands.

Part 2: Using a storytelling process/framework and luxury brand of your choice, analyse
and evaluate the brand’s storytelling practice. You should include both strengths and
weaknesses of their current approach and recommend creative and innovative
improvements to current practice.

Part 1:
For luxury enterprises, stories might be beneficial in a lot of ways. These could improve
the customer experience, create positive brand associations, and boost spending
inclination (Atwal and Williams, 2009). They can help buyers see beyond the practical
uses of luxury items by expanding the symbolic values associated with these companies.
A distinctive backstory that distinguishes luxury brands from other businesses in the
same sector is essential. This is so because luxury businesses rely on their target
audience's ideas of exclusivity, status, and prestige to draw them in. Making a captivating
brand story, however, may be difficult, particularly for luxury firms that deal with
ethereal elements like exclusivity, emotions, and aesthetics.

Three components should serve as the foundation for brand storytelling, according to
some researchers: narrative, authenticity, and emotional appeal. The way the brand story
is created, delivered, and conveyed to the intended audience is referred to as the narrative
aspect. A distinctive and engrossing story that links the audience to the brand's values,
beliefs, and culture should be used by luxury businesses. Furthermore, luxury firms have
to make sure that their brand narrative is true by coordinating it with their real business
practices, offerings, and goods. Stated differently, the brand narrative must precisely
reflect the company's values and offerings. Finally, in order to arouse strong emotions of
want, appreciation, and loyalty in their target audience, luxury businesses should employ
emotional appeal.

Four essential components are included in another brand storytelling model: the tale
universe, the resolve, the catalyst, and the trigger. The original requirement or motivation
for the development of the brand narrative is known as the trigger factor. The pivotal
events or times that mold the brand narrative are referred to as the catalyst factor. The
cultural, social, and historical background that shapes the brand narrative is included in
the story world aspect. The moral or ethical teachings that the brand narrative aims to
impart to the audience are the final component of the resolution aspect.

Previous studies have demonstrated that the evolution of a tale is inextricably linked to
tradition and history. The brand has to highlight its historical ties and highlight its own
personality via the usage of basic components like storytelling. Writing a great story
requires careful consideration of many distinct aspects; there is no one-size-fits-all
approach. Nonetheless, businesses may follow a few basic guidelines. Then, luxury tales
are particular texts with recognizable characters, a believable storyline, a pivotal moment,
and a clear lesson. (Oliva Rota & Ruiz Collantes, 2015)

(1) Identifiable characters with unique identities propel the narrative (Küntay, 2002). The
core of the story is the lived experiences of these individuals.

(2) According to Escalas (1998) and Papadatos (2006), the conceivable storyline is a
sequence of events involving people in a scenario that is specified both geographically and
chronologically. Thompson (1997) asserts that a plot needs to contain both narrative framing
—the symbolic and thematic similarities connecting several tale episodes that aid in meaning
production—and narrative movement, which is the chronological flow of events that
determines a story's direction.

(3) A pivotal moment is necessary to move the narrative further. It was Aristotle (335
BC/1998) who originally claimed that a story had to have a crescendo, or a balance-imbalance-
balance frame (Ruiz Collantes and Oliva Rota, 2015).However, they only create hedonistic or
aspirational environments without hinting at a magnificent peak, luxury enterprises usually
disregard this criterion.

(4) As successful stories typically center on "the struggle to attain, defend, or regain
harmony," luxury businesses should make a clear message. (Fog et al., 2005). It becomes more
evident why characters engaged in voluntary combat to address plot issues when the conflict in
the story is resolved, or what the characters battled for.
Part 2:
Gabrielle Chanel launched the luxury brand Chanel in Paris, France, at the beginning of the 20th
century. The company has a long and distinguished history, having contributed significantly to
the growth of haute couture and designing some of the most recognizable and timeless pieces of
contemporary fashion. Chanel had a number of difficulties in the market in 2011, which
prompted the brand to launch the "It's a Man's World" campaign to address some of the
problems.

The fact that the premium fashion business was getting more and more competitive was one of
Chanel's biggest problems in 2011. Chanel was up against fierce competition from a number of
other upscale fashion brands due to the growth of fresh, creative designers and the development
of new luxury markets in Asia. This implied that the company would have to come up with fresh
ideas to set itself apart from the competition.

The growing male domination of the fashion business was another significant issue Chanel was
dealing with at the time. The fashion business was still primarily dominated by men, despite the
fact that many of the most significant fashion designers of the 20th century were female,
including Coco Chanel. This meant that women were underrepresented in the sector and
frequently left out of important decision-making processes.

Chanel was able to establish itself as a company that was dedicated to empowering women and
dismantling gender stereotypes in the fashion business with the help of the "It's a Man's World"
campaign. In terms of garnering favorable media coverage for the company and connecting with
consumers, the campaign was a resounding success. Chanel is now recognized as one of the most
avant-garde and influential luxury fashion labels globally, and it is highly esteemed for its
dedication to advancing gender parity within the sector and empowering women.

Chanel's "It's a Man World" (2011) narrative analysis including: characters, an imagined
storyline, turning point and a lesson.
The recognizable character in "It's a Man World" is Keira Knightly. She adopted the persona of a
model who is constantly in danger from men and who protects her independence by using her
brand as a shield. The female lead character effectively embodied the brand's individuality; she
was stunning, astute, self-reliant, and seductive. A secondary group of incredibly attractive, well-
groomed, and well-coiffed male models appeared in the advertisement as well. Their dapper
demeanor suggested classic masculinity. The actresses were picked with the intention of
appealing to the aspirational lifestyle connected with the company as well as the wealthy,
fashion-conscious ladies that make up the core audience of the premium brand. We feel sorry for
Keira Knightly since, in the video, guys clearly represent a threat to her.

At the start of the story, the female lead awakens in her Paris apartment. She put on some Chanel
perfume as she got ready for work. She's safe and self-assured on her own. As soon as she leaves
the shelter of her nest, she rides her motorcycle and faces the loneliness of the city. A crowd of
eager racers, all male motorcycle riders, encircles her. After slinking away, she finds herself at
work, where a male photographer is in charge of a number of docile women who are waiting for
her. The photographer orders him to leave Keira alone, starts the photo shoot with
professionalism, and then rapidly begs to make improper small talk with her.

In contrast to the stereotype of women in the studio being obedient to males, the female lead
made an abrupt move. She deceives the male character in a clever and alluring way, preventing
him from touching her body. She runs away, seizing the chance to divert herself and
triumphantly getting back on her bike. She gives him a victorious expression as she exits the
studio at the conclusion of the tale. The protagonist is continuously made to feel insecure, and
the brand is offered as the answer to her issues (in the final scene, when she mounts her bike, she
puts the fragrance on her heart, creating a symbolic armor). The characters in this story are
starkly opposed to one another (black men versus white or beige women, a men's gang versus the
lonely woman). The soundtrack of the film, which featured Josh Stone's song "It's a Man's
World," reaffirms Chanel's dedication to defending women's autonomy and equal rights.
Chanel's narrative exemplified the brand's mission to liberate women from male domination. The
major takeaway from the advertisement is that Chanel's high-end products are not only exquisite,
but they also transcend gender, giving women a platform to express and connect with their own
feelings of success and empowerment. The commercial highlights the strength and beauty that
come from accepting uniqueness and embraces the concept of defying social standards. It
becomes more evident why characters engaged in voluntary combat to address narrative issues
after the conflict in the story is resolved, or what the characters battled for. This is crucial to
luxury branding since a story's resolution should reflect the promise an organization has given to
its clients (Kapferer, 2012).

Strengths
Targeted audience:
The narrative was created with the strong,
self-reliant, confident woman in mind—the
kind who can afford luxury products like
Chanel perfume. As a result, the brand was
able to establish the Coco Mademoiselle as a
symbol of empowerment, strength, and
independence.
Weaknesses
Gender Stereotyping: The narrative supported
the misconception that a woman's success
depends on her ability to hold a traditionally
male role, even if it placed a strong focus on
women's empowerment. Furthermore, it
reinforced gender stereotypes rather than
doing anything to dispel them.

Motivating Messaging: The campaign's Limited Representation: It's possible that all
tagline, "It's a Man's World, but it wouldn't be body types and shapes were overlooked
 anything without a Woman or a Girl," struck because the piece mainly featured thin,
a chord with the target audience for the model-like ladies.
product. It conveyed the message that women
can do everything they set their minds to,
regardless of the barriers society may put in
their path.

Good Visuals: The narrative had excellent
visuals that complemented the theme of
empowerment by showcasing strong, self-
assured women in a variety of environments.
Tone-Deaf Imagery: Some images that
depicted women as masculine caricatures and
employed sports gear that is often associated
with men drew criticism for being unsuitable
and tone-deaf. It might be argued that these
pictures don't depict intersections.

Recommendations:
1. Intersectional representation: The tale may offer more representation by including a diverse
range of women of different races, body sizes, and abilities in order to acknowledge the reality of
intersectionality and better reflect its intended audience.
2. Address the issue of gender-based roles: Chanel may enhance the narrative by emphasizing
the need to eradicate sexism, misogyny, and gender stereotypes from society when she presents
women in conventionally masculine roles.
3. Boost engagement: Chanel may make better use of social media to get more feedback and
involvement on their marketing campaigns. Apart from encouraging interaction, producing
unique and interactive content facilitates data gathering to gain deeper insights into the
inclinations and patterns of the intended audience.

References (2):

Escalas, Jennifer E. (1998), 'Advertising Narratives. What Are They and How Do TheyWork?',
in Representing Consumers: Voices, Views, and Visions, Barbara B. Stern,ed. London, UK:
Routledge, 267-89, Available at :
https://www.taylorfrancis.com/books/edit/10.4324/9780203380260/representing-consumers-
barbara-stern

Papadatos, Caroline (2006), 'The Art of Storytelling: How Loyalty Marketers Can Build
Emotional Connections to Their Brands', Journal of Consumer Marketing, Available at:
https://www.researchgate.net/publication/240258167_The_art_of_storytelling_How_loyalty_mar
keters_can_build_emotional_connections_to_their_brands
Kapferer, Jean Noël (2012), The New Strategic Brand Management: Advanced Insights and
Strategic Thinking. London, UK: Kogan Page Publishers. Available at :
https://www.researchgate.net/publication/281803401_The_New_Strategic_Brand_Management
Atwal, Glyn and Alistair Williams (2009), 'Luxury Brand Marketing: The Experience Is
Everything!' Journal of Brand Management,16 (5), 338-46

Fog, Klaus, Christian Budtz, and Baris Yakavoylu (2005), Storytelling: Branding in Practice.
Berlin: Springer.Available at :
https://www.researchgate.net/publication/248527297_Storytelling_Branding_in_Practice_K_Fog
_C_Budtz_B_Yakaboylu_Springer_Berlin_2005_238_pp_4995

Slater, Michael D., and Donna Rouner (2002), 'Entertainment-Education and Elaboration
Likelihood: Understanding the Processing of Narrative Persuasion', Communication Theory 12
(2):117-244.

Seo, Yuri, and Margo Buchanan-Oliver (2015), 'Luxury Branding: The Industry, Trends, and
Future Conceptualisations', Asia Pacific Journal of Marketing and Logistics, 27 (1),82-
98.Available at :
https://www.researchgate.net/publication/273167542_Luxury_branding_The_industry_trends_an
d_future_conceptualisations

Portfolio Entry 3: Luxury brand challenge and opportunity (LO: a, c. d, e)

Task 3:

Part 1: Select a luxury brand challenge/opportunity of your choice from the ones covered in the
module. Using a variety of research sources, explain and critically evaluate the
challenge/opportunity this issue presents to luxury brands

Part 2: For luxury brands generally, propose a range of creative and innovative solutions to
addressing this issue to sustain and build brand equity.

Part 1:
Since its establishment in 1921, Gucci has come a long way from being a single storefront on a
little Florence street to becoming a globally recognized representation of Italian craftsmanship,
avant-garde design, and visionary creativity. Throughout the 20th and 21st centuries, the House's
history has left an enduring impact on fashion and society, both reflecting and characterizing the
decades that gave rise to it.

The problem of counterfeiting is one of the frequent difficulties Gucci encounters. The illegal
manufacture and distribution of copycat goods bearing a brand's name, which are frequently
offered for a significantly lower price than the original product, is known as counterfeiting.
Luxury companies face serious challenges from counterfeiting, which not only damages their
reputation and image but also causes financial loss and possible legal problems (Anastazja,2018).
Gucci and other luxury companies are threatened by the problem of counterfeiting in a number
of ways. Initially, the association of counterfeit products with immoral and lower-quality
methods might weaken the brand's image and reputation (Steve Dix,2009).Consumers who
inadvertently buy counterfeit goods might have a bad impression of the company and be
reluctant to buy real goods in the future. Furthermore, as counterfeit products may become more
widely available to customers, their presence on the market may lessen the perceived exclusivity
and value of the brand.

Legally speaking, Gucci must continuously enforce and monitor intellectual property rights in
order to prevent counterfeiting. It can take a long time and be expensive to find counterfeiters
and take legal action against them, thus this demands a lot of resources and work. Furthermore,
because counterfeiting is an international issue, it is difficult for companies to successfully
address the issue in different countries and by using a multifaceted approach that includes
proactive steps to safeguard their brand and customers.(Khadijah Mohamed,2014) This might
entail making investments in cutting-edge technology like blockchain or RFID to monitor and
verify items, working with stakeholders and law enforcement to hunt down counterfeiters, and
teaching customers how to spot original products.
Part 2:
Solutions to addressing this issue:
1.Work together with other luxury brands: By establishing distinctive and exclusive partnerships
that appeal to a larger audience, working together with other premium brands may help develop
brand equity. Limited edition goods, co-branded occasions, and cooperative marketing initiatives
are a few examples of this.

2.Emphasis on sustainability: Customers are becoming more and more interested in sustainable
and ethical products in today's socially conscious world. By implementing sustainable practices,
such as employing eco-friendly materials, producing goods locally, or supporting philanthropic
causes, luxury firms may increase their brand equity.

3.Invest in the client experience: High-end businesses may develop a devoted following by
offering individualized shopping experiences and first-rate customer service. Offering
specialized styling services, VIP gatherings, or unique experiences to esteemed clients are a few
examples of this.

4.Accept technology: By utilizing it, luxury firms may improve consumer satisfaction and
strengthen their brand. This can involve developing immersive virtual shopping experiences,
using chatbots driven by AI for customer support, or integrating virtual try-on tools.
5.Interact with customers on social media: Presence on these platforms may help luxury
businesses establish a relationship with consumers and increase brand value. This might involve
releasing behind-the-scenes material, working with influencers, or developing interactive
marketing campaigns that appeal to and engage target audience members.

References (3):
History of gucci, available at : https://www.gucci.com/us/en/nst/history-of-gucci

Steve Dix,2009, Consumers' willingness to knowingly purchase counterfeit products- Available

at :
https://www.researchgate.net/publication/240260780_Consumers'_willingness_to_knowingly_p
urchase_counterfeit_products

Anastazja,2018,BRAND IMAGE AND THE FIGHT AGAINST COUNTERFEITING BY THE

GUCCI COMPANY - Available
at
:https://www.researchgate.net/publication/328795533_BRAND_IMAGE_AND_THE_FIGHT_AG
AINST_COUNTERFEITING_BY_THE_GUCCI_COMPANY

Khadijah,2014- Fighting counterfeiting: Importance of enforcement of intellectual property

rights Available at :
https://www.researchgate.net/publication/301285213_Fighting_counterfeiting_Importance_of
_enforcement_of_intellectual_property_rights