LUXURY BRAND MANAGEMENT

MKT3057-39FT
STUDENT’S NAME: NGUYEN THI HUONG GIANG
STUDENT ID: 23853599

April, 2024
Executive Summary

The subsequent assignment entails the creation of a thorough portfolio addressing the themes
pertaining to luxury brands. The initial segment elucidates the distinguishing characteristics of
luxury brands vis-a-vis other categories of brands, followed by an examination of Rolex as an
illustrative case in point.

The assessment of proposed procedures and components of brand narrative in the establishment
of a luxury brand is delineated in the section on introductory luxury brand storytelling.
Subsequently, an evaluation of Lamborghini's narrative strategy is conducted, encompassing an
analysis of the strengths and weaknesses inherent in their current approach. Additionally, the
assignment proffers suggestions for creative and innovative enhancements to the current strategy.

Conclusively, the closing segment deliberates on the challenges and opportunities faced by
luxury brand Cartier, alongside recommendations to address these challenges.

2
Contents
1. Introduction............................................................................................................................4
2. The characteristics of luxury brand.....................................................................................4
2.1. The characteristics of luxury brands.............................................................................4
2.1.1. Symbolism................................................................................................................4
2.1.2. Price.........................................................................................................................5
2.1.3. Quality.....................................................................................................................5
2.1.4. Aesthetics.................................................................................................................5
2.1.5. Rarity.......................................................................................................................5
2.1.6. Extraordinary..........................................................................................................6
2.2. The characteristics of Rolex Oyster Perpetual Oystersteel...........................................6
2.2.1. Symbolism................................................................................................................6
2.2.2. Price.........................................................................................................................6
2.2.3. Quality.....................................................................................................................7
2.2.4. Aesthetics.................................................................................................................7
2.2.5. Rarity.......................................................................................................................7
2.2.6. Extraordinary..........................................................................................................7
3. Luxury brand storytelling.....................................................................................................8
3.1. Processes and elements of brand storytelling................................................................8
3.1.1. Processes of Brand Storytelling...............................................................................8
3.1.2. Elements of Brand Storytelling..............................................................................10
3.2. Storytelling of Lamborghini - a true Story for Lamborghini’s Real Lovers..............12
3.2.1. Message.................................................................................................................12
3.2.2. Conflict..................................................................................................................12
3.2.3. Characteristics.......................................................................................................13
3.2.4. Plot.........................................................................................................................13
3.2.5. Recommendation....................................................................................................14
4. Luxury brand challenge and opportunity.........................................................................14
4.1. Social Media Opportunity............................................................................................14
4.2. Solution for challenges of social media.......................................................................15
5. Conclusion............................................................................................................................17
6. References.............................................................................................................................18
7. Appendices............................................................................................................................23

3
 1. Introduction

This manuscript functions as an exhaustive analysis of luxury brands, delving into the attributes,
storytelling, challenges, and opportunities inherent in luxury branding. More specifically, this
assignment will provide instances pertaining to Lamborghini and Cartier to enhance
comprehension of the theoretical frameworks in each segment.

2. The characteristics of luxury brand

2.1. The characteristics of luxury brands

Symbolism

Extraordinar
Price
iness
Characteristics
of Luxury
Products and
Brands
Rarity Quality

Aesthetics

Figure 1: The concept of Luxury Brand (source: Heine)

Several characteristics are often associated with luxury brands, including price, quality,
aesthetics, rarity, extraordinariness, and symbolism (Heine, K., & Phan, M. 2011)

2.1.1. Symbolism

While the latter's purpose is primarily centered around functionality, the

acquisition of luxury items serves a more symbolic role (Hornig, 2013).
Consumers leverage the symbolic meanings attached to these goods to not only
sustain themselves but also to express their values within a social framework
(Hornig, 2013). An example of this can be seen in the utilization of the

4
 Monogram Canvas by Louis Vuitton, which projects an image of sophistication,
allure, and exclusivity (Rodríguez Muñoz, 2023)

2.1.2. Price

Price is the most prevalent characteristic in academic literature, being considered

the most objective and easily measurable criteria for assessing a product's
luxuriousness (Gutsatz, M., & Heine, K. 2018). The pricing strategies employed
by luxury brands significantly impact how unique and prestigious they are
perceived by consumers (Greenberg 2020). Hence, the pricing of luxury fashion
items is more influenced by their symbolic significance to consumers' self-
concept rather than their physical attributes (Hornig, 2013). Furthermore, when
determining the prices of luxury goods, considerations encompass the overall
value associated with the brand's positioning, the product's scarcity, and
distinctiveness, as well as the brand's extensive history and legendary narratives
(Chevalier, M., & Mazzalovo, G. 2021). Luxury brands deliberately establish high
price points for their products to enhance exclusivity and maintain their symbolic
allure (Kapferer, 2021)

2.1.3. Quality

A predominant feature of luxury goods is their emphasis on quality, often tied to

unique raw materials or production methods that are locally specific (Karaosman,
2020). Consequently, maintaining consistent product quality is imperative for
cultivating a favorable reputation for the luxury brand, necessitating the delivery
of superior quality and subsequently ensuring a high level of customer satisfaction
(Bilge, 2015). For instance, Hermès Barenia Natural Leather stands out as one of
the finest leather varieties available, boasting a luxuriously smooth surface with a
subtle sheen, exceptional scratch resistance due to its oil-absorbing properties,
water resistance, and suitability for inclement weather conditions (Hermes
Leather and Skins Guide, n.d.).

2.1.4. Aesthetics

The aesthetic appeal of a luxury brand is crafted through unique design elements
combined with the brand's distinct timelessness and heritage (Greenberg, 2020).
A significant majority of respondents recognize aesthetics as a defining feature of
luxury products (Romaniuk, 2020). Luxury items' aesthetics align with the elite
class's preferences, reflecting the cultural relativism inherent in luxury (Kapferer,
2001). Notably, leather goods hold considerable significance in this realm, driven
by iconic pieces like the renowned Lady Dior handbag (Antonaglia, F., &
Passebois Ducros, J., 2020)

5
 2.1.5. Rarity

Luxury goods are distinguished by their rarity rather than commonality (Kisabaka
2001, p. 96). By restricting manufacturing and personalizing their items, luxury
brands make sure that their products are rare (Greenberg, 2020). Luxury brands
ensure the scarcity of their products through manufacturing restrictions and
personalization, alongside natural limitations such as the scarcity of product
components like precious metals. Furthermore, artificial constraints, such as
limited editions, are commonly employed by luxury brands, exemplified by the
Romanee Conti vineyards' production of a limited number of wine bottles
annually (Kapferer, J. N., 2012).

2.1.6. Extraordinary

The essence of luxury is encapsulated in the uniqueness of luxury brands that set
them apart from others (Iftekhar, 2022). These brands often boast a rich heritage
and a remarkable history that become integral components of their mystique
(Arora, R. 2011). This aura of mystique typically revolves around the legendary
founder figure of the past, shaping the brand's narrative and character (Arora, R.
2011). Consequently, consumers drawn to brands like Cartier or Chanel are not
solely swayed by product performance but are also subconsciously influenced by
the brand's esteemed lineage, heritage, and expertise (Arora, R., 2011).

2.2. The characteristics of Rolex Oyster Perpetual Oystersteel

Taking Rolex luxury watches as a focal point, a detailed examination can provide insights
into the distinctive attributes of luxury brands as delineated above, aiding in a
comprehensive understanding of their characteristics vis-a-vis other brand categories.

2.2.1. Symbolism

Rolex watches serve as symbols of affluence and achievement within consumer

culture, with individuals associating themselves with these symbols of status and
prosperity (Mortelmans, D. 1998). Notably, Rolex's sponsorship of prestigious
sporting events like golf, tennis, and Formula 1 underscores values of elegance,
precision, and skill that align with the image projected by Rolex timepieces
(Dewhirst, 2023).

2.2.2. Price

Renowned for their meticulous craftsmanship, optimal weight distribution,

comfort, user-friendliness, and extensive warranty coverage, Rolex watches
command a premium price point (Rolex Newsroom, n.d.). These timepieces
undergo rigorous testing and are trusted by athletes and adventurers worldwide in

6
 challenging terrains. The pricing of Rolex watches exhibits a consistent annual
increase of 4%, irrespective of materials or models, as exemplified by the Rolex
Cosmograph Daytona 2024, priced between $17,000 and $85,000 based on the
material used.

2.2.3. Quality

Rolex presents its own watches with two words: “performance and prestige.”
(Sádaba, 2018). Rolex stands at the forefront of innovation in waterproof and
dustproof watches, perpetual rotor mechanisms, and GMT-Master watches,
among other advancements (Rolex). The brand's legacy dates to 1910 when Rolex
secured the first Swiss chronometer certificate, followed by the prestigious
precision certificate from the Kew Observatory in Great Britain in 1914 (Ehrlich,
2017). Positioned as a premium product with a substantially higher price tag,
Rolex watches epitomize superior quality and craftsmanship.

2.2.4. Aesthetics

In each instance of contemplation, the opulence of a Rolex timepiece can be

observed from all angles, showcasing the renowned and distinct design that
combines gold and steel to create the iconic Rolex signature known as Rolesor, a
name officially trademarked in the year 1933 (Rolex). The brand is famed for its
exclusive alloys, including Everose Gold, a special amalgamation of gold, copper,
and a hint of platinum, producing a unique rosy tint while also ensuring
exceptional durability against both fading and corrosion.

2.2.5. Rarity

On occasion, Rolex unveils limited edition or special edition watches that quickly
become coveted items among avid collectors. These timepieces, produced in
limited numbers, such as the Rolex Kermit anniversary models or collaborations
like Domino’s Rolex Air-King, tend to appreciate over time due to their rarity in
the market. Furthermore, Rolex has a practice of discontinuing specific models,
heightening their desirability, and consequently driving up their prices in the
secondary market.

2.2.6. Extraordinary

Rolex stands as a trailblazer in the creation of waterproof and dustproof

timepieces, the invention of the perpetual rotor, the development of GMT-master
watches, and various other pioneering achievements (Sádaba, T., & Bernal, P. M.,
2018). Additionally, Rolex has earned a distinguished reputation as a top-tier
watch brand for three primary reasons rooted in historical and chronological

7
 significance (Wilsdorf, n.d.). Firstly, Hans Wilsdorf, the founder, is largely
credited with inventing the self-winding waterproof wristwatch (Altieri, n.d.).
Secondly, amidst the electronic era of quartz watches in the 1970s, André
Heiniger, the Director General, upheld the belief that mechanical watches
epitomized the craftsmanship and skill of watchmakers, providing Rolex with a
competitive edge over rivals for an extended period (Ehrlich, n.d.). Lastly, Patrick
Heiniger recognized the necessity for Rolex to transition into a fully vertically
integrated company in terms of production facilities (Ehrlich, 2013). This gives
Rolex unparalleled levels of autonomy, independence, and flexibility crucial for
its continued growth and success (Ehrlich, 2013).

3. Luxury brand storytelling

3.1. Processes and elements of brand storytelling

There isn't a single luxury brand that doesn't convey a story. (Kapferer and Bastien,
2012). With an emphasis on cultural, experiential, and emotional elements, storytelling is
a potent tool for connecting with clients (Altieri, 2021). The history, objective, purpose,
and basic values of the brand are just a few examples of the content that can be included
in brand stories. The features of a luxury brand conveying a story based on scholarly
sources will thus be examined in-depth in entry 2 with an illustrated case study of the
high-end car brand - Lamborghini. Point out the brand's narrative process's advantages
and disadvantages next and make recommendations for enhancements.

3.1.1. Processes of Brand Storytelling

There's no fixed formula for building a storytelling, and there's also no formula to
help luxury brands tell stories better (Catarina Mellqvist, 2019). Below is a basic
process that can be used for building storytelling for a luxury brand, following the
process of message, conflict, characteristics, and plot.

8
 Figure 2: Storytelling Process

● Storytelling as a branding tool is not about telling stories just for the sake
of it (Fog, 2005). Rather, for most marketers, storytelling is about using
stories to communicate messages that reflect positively on the brand
(Lundqvist, 2013). Without it, there is no reason to tell stories, at least not
with a strategic purpose (Aaker, 2018).

● Conflict is the driving force of a good story (Kadera, 2001). As humans

look for balance and harmony in lives (Lomas, 2021). So, as soon as
harmony is disrupted, humans do whatever they can to restore it (Fog,
2010). When faced with a problem – a conflict – humans instinctively

9
 seek to find a solution. Conflict forces humans to act. As storytellers, they
get the message across through conflict and its resolution.

● After seeing how conflict marks the turning point in the story, brands need
to let the conflict play out; they need a cast of interacting and compelling
characters (Fog, 2005). To get personally involved with a story, brands
need to identify with the characters (Escalas, 2004). Here, it is important
to keep the target audience in mind. The audience must be able to identify
with both the hero and the problem (Truby, 2008).

● Once the message, conflict, and cast of characters are all in place, it is
time to think about how the story should progress (Fog, 2005). The flow
of the story and its events are vital to the audience’s experience (Alwitt,
2002). The brands can only tell one thing at a time and that a story exists
only as a progression of events within a given period, the sequence of
events needs careful consideration (Fog, 2005). It must have a precise
structure to propel it forward and maintain audience interest.

The following will deeply analyze four elements of storytelling, including

message, conflict, characters, and plot.

3.1.2. Elements of Brand Storytelling

To convey history and experiences across cultures, storytelling has long been a
common human application. The four components of the ideal storytelling
process for a luxury brand are message, conflict, characteristics, and plot.

3.1.2.1. The message

Storytelling involves the utilization of narratives to convey messages that

portray the company's brand positively (Lundqvist, 2013). The most
explicit messages are those that facilitate the easiest comprehension by the
audience (Miller, 2017). Furthermore, brand communication must align
with the brand and resonate with the overarching core brand narrative
(Dahlén, 2009). It is essential for these messages to be timely, pertinent,
and captivating (Page, 2013). Message themes can encompass both
rational and emotional aspects (Fox, 2001). Messages that emphasize
product sustainability have shown greater efficacy compared to traditional
ones that focus on the performance of luxury goods (Amatulli, 2019).

Nevertheless, luxury brands have encountered the challenge of

maintaining creative ingenuity to effectively convey their messages
(Pentina, 2018). In addition, consumers now wield more influence over

10
 the brand message crafted by marketers, who shape stories and messages
that can enhance a brand's reputation or alienate its target audience - the
affluent class (Krevolin, 2015).

3.1.2.2. The Conflict

Conflict serves as the driving factor behind a compelling narrative;

without conflict, there is no story (Kadera, 2001). Storytelling for luxury
brands should incorporate conflict while narrating a story (Júnior, 2023).
Conflict represents a gripping clash between opposing forces, present in
all narratives without exception. The central conflict motivates readers to
intervene and restore equilibrium. Conflict can be construed as either
positive or negative, yet it invariably highlights an underlying issue that
demands resolution (Bar-on, 2011). It forms the foundational premise
through which the storyteller conveys their understanding of morality. The
intensity of the conflict directly correlates with the level of drama within
the narrative (Bernard, 2012).

3.1.2.3. Characters

Another fundamental component of storytelling pertains to characters. It is

imperative to feature a group of engaging and interactive characters for the
narrative conflict to unfold effectively (Fog, 2005). Ensuring that these
characters align with the fundamental values of the brand is of utmost
importance (Fog, 2005). Moreover, when brands adopt the fairy tale
structure for storytelling, it accentuates the uniqueness of each character,
their roles, and their interconnections (Fog, 2005).

3.1.2.4. Plot

The plot signifies the correlation among the conflict, the character
ensemble, and the sequence of events in narrative discourse (Booker,
2004). It acts as a driving force, captivates the audience, and sustains
customer engagement while reinforcing the central theme or moral of the
story (Haven, 2014). Traditional narratives typically consist of three
segments: an introduction, a development, and a resolution (Truby, 2008).
The narrative context is established initially, followed by the emergence of
conflict resulting from the transitional phase, which sets the stage for the
remainder of the story, culminating in the resolution of the issue towards
the end (Ramsbotham, 2011). In narratives, the plot delineates the
protagonist's journey in overcoming specific obstacles to achieve a defined
objective, while also illustrating the connection between the brand's
product and this process (Houghton, 2023)

11
3.2. Storytelling of Lamborghini - a true Story for Lamborghini’s Real Lovers

"Lamborghini is for real lovers" is a 2-minute and 8-second campaign advertisement

video broadcasted on YouTube on December 23rd, 2019 (Lamborghini, 2019). This
advertising initiative aims to endorse the Lamborghini product, garnering approximately
11,000,000 views on YouTube (Lamborghini, 2024). The 2019 video on Lamborghini's
social media platforms showcases children as the epitome of "True Lamborghini Lovers."
The initial scene portrays a wintry backdrop featuring two characters, a parent, and a
child.

3.2.1. Message

The intended message conveyed by Lamborghini through this campaign's video is

discernible throughout the tale. However, it is particularly explicit during the
appearance of the phrase "Lamborghini for true lovers" towards the conclusion of
the clip. The holiday season often involves gift-giving and quality time spent with
loved ones, evoking a sense of joy. Therefore, Lamborghini immersed itself in
this festive ambiance with its clientele, surprising its enthusiastic younger fans
with the gift of a Lamborghini Aventador car.

By upholding the luxury and exclusivity of the brand - akin to a fairy tale for
devoted enthusiasts - the element of surprise enhances the brand's accessibility to
its admirers. Furthermore, this serves as an opportunity to convey the message
that a Lamborghini product is an ideal Christmas present. The underlying message
encourages steadfastness and loyalty to one's passions.

3.2.2. Conflict

The marketing communications director at Automobili Lamborghini asserted that

the company has consistently rebuffed efforts at replication, and the promotional
video illustrates the intricate process of crafting a 3D duplicate of a Lamborghini.
The video showcased the reproduction project featured in the brand's Christmas
video, which serves as the narrative conflict of the brand's storytelling.

The act of producing a copy of a product is deemed unlawful. Nevertheless, in the

promotional campaign, Lamborghini argues that the intentional creation of a 3D
replica of Lamborghini's product arises from a profound affection for the brand
rather than mere criticism for counterfeiting. Consequently, they appreciate this
sentiment and opt to present a special Christmas gift to the father and son duo,
namely the authentic Lamborghini Aventador car.

Despite the juxtaposition between reality and the brand's narrative, Lamborghini
has effectively enabled customers to grasp the essence of the campaign's message

12
 and, notably, strengthened the bond between genuine Lamborghini enthusiasts
and the brand.

3.2.3. Characteristics

Lamborghini selected two primary figures: Sterling Backus (the father) and
Xander (the son), both sharing a passion for mechanical intricacies and a penchant
for construction. Xander showcases his fervent adoration for Lamborghini by
consistently opting for the Lamborghini Aventador car while engaging in
activities, evoking memories of Sterling Backus's own youth owing to Xander's
mechanical acumen and passion for building. This initiative sparked the concept
of constructing their version of the Lamborghini Aventador car.

The father and son collaborated to devise and implement a strategy to assemble a
duplicate Lamborghini Aventador car, with the intention of completing it as a
significant Christmas present. This notion initially led observers to believe it was
unattainable, but the process and the result altered their perspectives,
demonstrating that persistence can culminate in desired outcomes and that
endeavors can yield unforeseen results.

The family of the primary figures played a pivotal role as they bore witness to the
progression from the inception of the concept to its fruition.

3.2.4. Plot

The initiation of the brand's narrative commences with the introduction of the
central characters, namely the father and son, amidst the winter setting. Instead of
relying on a narrator's voice, they opt to recount their own tale using their
individual voices.

The young child, Xander, consistently opts for the Lamborghini Aventador during
playtime and proposes to his father the idea of building an actual Lamborghini
vehicle. The narrative unfolds as they unveil their family's garage, exposing the
equipment for production. Throughout eighteen months of materializing their
aspiration, they encounter skepticism from relatives, acquaintances, and
neighbors. Ultimately, on Christmas Day, their toil culminates in Lamborghini
gifting them with an authentic Lamborghini Aventador parked in their garage.
Moreover, Xander's reaction upon beholding the genuine car before him ignites a
fondness for automobiles within the audience.

The expedition is accompanied by instrumental music to sustain viewer

engagement. Despite encountering obstacles in the completion of the car, the
main characters opt to keep this hidden, concentrating instead on their ambition to

13
 realize their objective. Through this, Lamborghini conveys the message
"Lamborghini is for Real Lovers" via the promotional video campaign.

3.2.5. Recommendation

The narrative of the brand will be scrutinized by delving into the four
aforementioned components, comprising message, conflict, characters, and plot.
Subsequently, a few recommendations will be offered.

The message remains consistent and unequivocal across all segments of the video
content, prominently crystallizing in the denouement that Lamborghini caters to
genuine enthusiasts and values their patronage. An additional benefit of the
campaign is its grounding in authentic events, enabling the protagonist to recount
his personal saga. This approach fosters a robust bond between the brand and its
audience. Moreover, the brand adeptly embeds subtle nuances that elicit
emotional responses from viewers during the viewing experience. For instance,
the poignancy felt by the boy upon encountering the genuine Lamborghini as the
door opens or the symbolic act of pressing the car's ignition - symbolizing the
realization of a dream, or the visual of the car cruising along an endless road -
signifying the ongoing journey ahead.

Conversely, the elements of conflict and plot may pose drawbacks to the
storytelling. For instance, certain viewers might misconstrue and emulate the
protagonist by endeavoring to secure a gift from Lamborghini through crafting a
3D model of a Lamborghini, despite emulation being a discouraging behavior.
The video could lead spectators to believe that the Christmas present constitutes
the actual Lamborghini car when, in truth, it is merely on loan for a fortnight.
Another issue arises regarding the fate of the 3D Lamborghini project once the
real gift from Lamborghini is received.

Furthermore, the brand impels the audience to grasp the revelation more
profoundly to heighten the determination of the central characters to accomplish
their missions while still cherishing their affection for Lamborghini and persisting
in their quest to eventually possess one.

4. Luxury brand challenge and opportunity

4.1. Social Media Opportunity

Luxury enterprises have progressively reaped the rewards of the swift advancement and
interaction facilitated by social media platforms (Mekonnen, 2021). It is evident that
social media simplifies the process of engaging with a vast number of individuals
residing across diverse geographical locations and speaking various languages (Hou,

14
2020). Furthermore, the brand possesses the liberty to effectively communicate with
numerous potential consumers, thereby enhancing its visibility on social media platforms
(Hendrayati, 2020). Consumers exhibit their support for a luxury brand on social media
platforms such as Facebook, Instagram, or X primarily due to their admiration for the
brand itself, rather than financial incentives (Song, 2022).

Figure 3: Raking of Luxury Brands by Instagram Followers (source: Research Gate)

Every brand aspires to establish a presence where prospective customers are active and
spending their time; hence, social media platforms serve as crucial touchpoints for any
comprehensive marketing strategy (Kushwaha, 2020).

As outlined in the RACE model, a digital marketing framework enabling marketers to

strategize their communications, social media plays a pivotal role throughout the
marketing funnel, spanning from 'reach' (or acquisition) to 'engage' (or loyalty),
underscoring its significance for luxury brands (Chaffey, 2022).

Nevertheless, a more profound emotional appeal is imperative to captivate consumers,

positioning social media as a natural platform for fostering such brand-building
endeavors (Cheng, 2020). Nonetheless, given the dynamic nature of social media and the
easily distracted tendencies of consumers, establishing a brand presence can be
formidable in this realm, impacting not only luxury brands but businesses across all
sectors (Repenning, 2024). The ensuing task will propose remedies to address these
challenges.

4.2. Solution for challenges of social media

In addressing the issue of distraction, the entirety of social media communications is

centered around three principal objectives: namely, narrative, aesthetic appeal, and

15
acknowledgment (Van De Ven, 2021). Although a significant 68% of clientele express
the heightened challenge of upholding their loyalty compared to the past, they are also
showing an increased willingness to invest in desired benefits - as evidenced by 76%
indicating readiness to enroll in a premium loyalty scheme (Smith, 2023). Findings from
the Brand Communities report, derived from discussions with around 1,000 consumers,
shed light on the propensity of individuals to engage with a brand community. It is
evident that the allure of brand communities is particularly strong among the
demographic aged 16-24, with half of them already being active members of at least one
such community (Wilmot, 2020). This is the opportune realm for a ripple effect to
transpire, with discussions revolving around the content, initiatives, and campaigns of
luxury brands. A notable 22% of Generation Z individuals express a desire for early
access to sales and promotions, while 17% seek exclusive experiences, and 16% value
prior exposure to new products or services (Blog, 2021). It is within this context that the
role of social media emerges, serving as a pivotal arena for engaging consumers through
bridging the realms of physical and digital worlds, online and offline encounters,
exclusive offerings, and promotional activities.

The strategic imperative for Cartier lies in the development of a robust online presence
spanning various platforms to heighten digital visibility and forge credible communities
associated with Cartier's offerings. These communities can serve as conduits for
promoting the brand's fresh campaigns and facilitating dialogues concerning its products
and services. Such initiatives are instrumental in safeguarding the brand against potential
infringements and misrepresentations. During the phase of bolstering awareness and
enhancing engagement, the establishment of compelling springboards for marketing
endeavors, the amplification of peer influence, and the cultivation of brand advocates are
essential. These measures are vital for instigating discussions on social media and
amplifying the brand's resonance.

A notable challenge posed by social media is the reluctance of consumers to make high-
value purchases online. Individuals typically leverage online resources to conduct
product research and gather pertinent information, often culminating in an in-store visit
for firsthand inspection and experience. Evidently, luxury brands face the dual challenge
of preserving their prestige while seamlessly integrating multi-channel strategies and in-
store interactions. By synergizing social media outreach with email marketing, brands
can foster loyalty, stimulate word-of-mouth referrals, and fortify customer relationships.
Users engage with the brand both pre- and post-purchase, underscoring the potential of
any social media platform to drive sales and enhance brand recall.

In tandem with integrating social media initiatives to drive foot traffic to offline outlets,
Cartier must also cultivate specialized communities for product enthusiasts and
prospective buyers, complemented by post-purchase customer support emails, to ensure a
positive end-to-end customer journey.

16
17
5. Conclusion

In essence, this assignment has undertaken a thorough examination of the complexities

associated with marketing luxury brands, including their distinctive characteristics, narrative
strategies, barriers, and opportunities. By scrutinizing three portfolio entries, it has explored
how luxury brands deploy these tactics in practical settings and the corresponding advantages
and challenges, particularly within the domain of social media. Despite the benefits of social
media in promoting luxury brands and enabling wider reach, there exist difficulties stemming
from customers' preference for in-store purchases of upscale products rather than online
transactions. As a result, social media platforms ought to establish communities where
potential consumers can access comprehensive product details from luxury brands and
proceed with purchases at physical retail outlets.

18
 6. References

Aaker, D. (2018). Creating signature stories: Strategic messaging that persuades, energizes and
inspires. Morgan James Publishing.

Altieri, P. (n.d.). Bob's Watches. History and Timeline of Rolex Founder - Hans Wilsdorf.
Retrieved April 6, 2024, from https://www.bobswatches.com/rolex-blog/history-of-time/hans-
wildorf-rolex-founder.html

Alwitt, L. (2002). Maintaining attention to a narrative event. Advances in Psychology Research,

18, 99-114.

Amatulli, C., De Angelis, M., Peluso, A. M., Soscia, I., & Guido, G. (2019). The effect of
negative message framing on green consumption: An investigation of the role of shame. Journal
of Business Ethics, 157, 1111-1132.

Antonaglia, F., & Passebois Ducros, J. (2020). Christian Dior: The Art of Haute Couture. The
Artification of Luxury Fashion Brands: Synergies, Contaminations, and Hybridizations, 113-139.

Arora, R. (2011). P’s of luxury brand marketing. Warc Exclusive.

Bar-On, D. (2011). 14 Storytelling and Multiple Narratives in Conflict Situations. Handbook on

peace education, 199.

Bernard, S. (2012). Documentary storytelling: making stronger and more dramatic nonfiction
films. Routledge.

Bilge, H. A. (2015). Luxury consumption: literature review.

Blog, D. (2021, December 30). The role of social media for luxury brands. Dialogue agency.
Retrieved April 15, 2024, from https://www.dialogue.agency/blog/the-role-of-social-media-for-
luxury-brands

Booker, C. (2004). The seven basic plots: Why we tell stories. A&C Black.

Catarina Mellqvist. (2019, 05 29). Luxury Brands' Storytelling on Social Media. DiVA portal.
Retrieved April 6, 2024, from
https://www.diva-portal.org/smash/get/diva2:1330243/FULLTEXT01.pdf

Chaffey, D., & Smith, P. R. (2022). Digital marketing excellence: planning, optimizing and
integrating online marketing. Routledge.

Cheng, Y., Wei, W. and Zhang, L., 2020. Seeing destinations through vlogs: implications for
leveraging customer engagement behavior to increase travel intention. International Journal of
Contemporary Hospitality Management, 32(10), pp.3227-3248.

19
Chevalier, M., & Mazzalovo, G. (2021). Luxury brand management in digital and sustainable
times. John Wiley & Sons.

Dahlén, M., Lange, F., & Smith, T. (2009). Marketing communications: A brand narrative
approach. John Wiley & Sons.

Dewhirst, T., & Lee, W. B. (2023). The Shifting Landscape of Sponsorship Within Formula 1. In
The History and Politics of Motor Racing: Lives in the Fast Lane (pp. 413-441). Cham: Springer
International Publishing.

Ehrlich, J. (2013, March 4). Welcome to RolexMagazine.com: 03/04/13. Rolex Magazine.

Retrieved April 6, 2024, from
https://www.rolexmagazine.com/2013_03_04_archive.html#gsc.tab=0

Ehrlich, J. (n.d.). Rolex Magazine. Welcome to RolexMagazine.com: The Hans Wilsdorf Story
(Founder Of Rolex). Retrieved April 6, 2024, from
https://www.rolexmagazine.com/2010/07/we-want-to-be-first-in-field-and-rolex.html#/page/5

Escalas, J. E. (2004). Narrative processing: Building consumer connections to brands. Journal of

consumer psychology, 14(1-2), 168-180.

Fog, K., Budtz, C., & Yakaboylu, B. (2005). Storytelling. Berlin: Springer.

Fog, K., Budtz, C., Munch, P., Blanchette, S., Fog, K., Budtz, C., ... & Blanchette, S. (2010). The
four elements of storytelling. Storytelling: Branding in practice, 31-46.

Fox, S., & Amichai-Hamburger, Y. (2001). The power of emotional appeals in promoting
organizational change programs. Academy of Management Perspectives, 15(4), 84-94.

Greenberg, D., Ehrensperger, E., Schulte-Mecklenbeck, M., Hoyer, W. D., Zhang, Z. J., &
Krohmer, H. (2020). The role of brand prominence and extravagance of product design in luxury
brand building: What drives consumers’ preferences for loud versus quiet luxury?. Journal of
brand management, 27, 195-210.

Gutsatz, M., & Heine, K. (2018). Is luxury expensive?. Journal of Brand Management, 25, 411-
423.

Haven, K. (2014). Story smart: Using the science of story to persuade, influence, inspire, and
teach. Bloomsbury Publishing USA.

Heine, K., & Phan, M. (2011). Trading-up mass-market goods to luxury products. Australasian
Marketing Journal, 19(2), 108-114.

20
Hendrayati, H., & Pamungkas, P. (2020, February). Viral marketing and e-word of mouth
communication in social media marketing. In 3rd Global Conference On Business, Management,
and Entrepreneurship (GCBME 2018) (pp. 41-48). Atlantis Press.

Hermes Leather and Skins Guide. (n.d.). Baghunter. Retrieved April 1, 2024, from
https://baghunter.com/pages/hermes-leather-guide

Hou, Q., Han, M., & Cai, Z. (2020). Survey on data analysis in social media: A practical
application aspect. Big Data Mining and Analytics, 3(4), 259-279.

Houghton, D. M. (2023). Story elements, narrative transportation, and schema incongruity: a

framework for enhancing brand storytelling effectiveness. Journal of Strategic Marketing, 31(7),
1263-1278.

Iftekhar, S., Heidari, G., Amanat, N., Zare, E. N., Asif, M. B., Hassanpour, M., ... & Sillanpaa,
M. (2022). Porous materials for the recovery of rare earth elements, platinum group metals, and
other valuable metals: A review. Environmental Chemistry Letters, 20(6), 3697-3746.

Júnior, J. R. D. O., Limongi, R., Lim, W. M., Eastman, J. K., & Kumar, S. (2023). A story to
sell: The influence of storytelling on consumers' purchasing behavior. Psychology & marketing,
40(2), 239-261.

Kadera, K. (2001). The power-conflict story: A dynamic model of interstate rivalry. University
of Michigan Press.

Kapferer, J. N., & Valette-Florence, P. (2021). Which consumers believe luxury must be
expensive and why? A cross-cultural comparison of motivations. Journal of Business Research,
132, 301-313.

Karaosman, H., Perry, P., Brun, A., & Morales-Alonso, G. (2020). Behind the runway:
Extending sustainability in luxury fashion supply chains. Journal of Business Research, 117,
652-663.

Krevolin, R. (2015). The Hook: How to Share Your Brand's Unique Story to Engage Customers,
Boost Sales, and Achieve Heartfelt Success. Red Wheel/Weiser.

Kushwaha, B. P., Singh, R. K., Varghese, N., & Singh, V. N. (2020). Integrating social media
and digital media as new elements of integrated marketing communication for creating brand
equity. Journal of Content, Community & Communication, 11(6), 52-64.

Lomas, T. (2021). Life balance and harmony. International Journal of Wellbeing, 11(1).

Lundqvist, A., Liljander, V., Gummerus, J., & Van Riel, A. (2013). The impact of storytelling on
the consumer brand experience: The case of a firm-originated story. Journal of brand
management, 20, 283-297.

21
Mekonnen, A., & Larner, L. (2021). Digital marketing in luxury fashion: from crisis to strength.
The Art of Digital Marketing for Fashion and Luxury Brands: Marketspaces and Marketplaces,
199-219.

Miller, D. (2017). Building a storybrand: clarify your message so customers will listen.
HarperCollins Leadership.

Mortelmans, D. (1998). Socio-semiotic analysis of print advertisements for luxury products.

Page, S., Freberg, K., & Saling, K. (2013). Emerging media crisis value model: A comparison of
relevant, timely message strategies for emergency events. Journal of Strategic security, 6(2), 20-
31.

Pentina, I., Guilloux, V., & Micu, A. C. (2018). Exploring social media engagement behaviors in
the context of luxury brands. Journal of Advertising, 47(1), 55-69.

Ramsbotham, O., Miall, H., & Woodhouse, T. (2011). Contemporary conflict resolution. Polity.

Repenning, A., 2024. Speeding up, slowing down, losing grip: On digital media metronomes and
timespace friction in the platformised temporalities of fashion design. Environment and Planning
A: Economy and Space, p.0308518X241231691.

Rolex Newsroom. (n.d.). Rolex Watchmaking | Excellence in the making | Newsroom. Retrieved
April 1, 2024, from https://newsroom.rolex.com/watchmaking/excellence-in-the-making

Rolex. (n.d.). Rolex Explorer 36 watch: Oystersteel and yellow gold - m124273-0001. Retrieved
April 6, 2024, from https://www.rolex.com/watches/explorer/m124273-0001

Romaniuk, J., & Huang, A. (2020). Understanding consumer perceptions of luxury brands.
International Journal of Market Research, 62(5), 546-560.

Sádaba, T., & Bernal, P. M. (2018). History as luxury brand enhancement. Luxury, 5(3), 231-
243.

Smith, M. (2023, June 22). 107 Customer Service Statistics and Facts You Shouldn't Ignore.
Help Scout. Retrieved April 15, 2024, from https://www.helpscout.com/75-customer-service-
facts-quotes-statistics/

Song, S., & Kim, H. Y. (2022). Is social media marketing worth it for luxury brands? The dual
impact of brand page satisfaction and brand love on word-of-mouth and attitudinal loyalty
intentions. Journal of Product & Brand Management, 31(7), 1033-1046.

Truby, J. (2008). The anatomy of story: 22 steps to becoming a master storyteller. Farrar, Straus
and Giroux.

22
Truby, J. (2008). The anatomy of story: 22 steps to becoming a master storyteller. Farrar, Straus
and Giroux.

Van De Ven, I., 2021. Intimate distractions: Fleabag’s manipulations of audience attention.
Continuum, 35(3), pp.455-467.

Wilmot, H. (2020, January). BRAND COMMUNITIES. Hubspot. Retrieved April 15, 2024,
from https://f.hubspotusercontent10.net/hubfs/4087719/Dialogue%20-%20The%20Power%20of
%20Brand%20Communities.pdf

Wilsdorf, H. (n.d.). Rolex Facts, History, and Company Info by Bob's Watches. Bob's Watches.
Retrieved April 6, 2024, from https://www.bobswatches.com/about-rolex.html

23
 7. Appendices
Figure 1: The concept of Luxury Brand (source: Heine)................................................................2
Figure 2: Storytelling Process..........................................................................................................7
Figure 3: Raking of Luxury Brands by Instagram Followers (source: Research Gate)................13

24