LUXURY BRAND

MANAGEMENT
 Luxury
Goods
Products which are
not necessary
 Luxury
Goods
Products which are not
necessary
Tend to make life more
pleasant
 Luxury
Goods
Products which are
not necessary
Tend to make life
more pleasant
Often bought by
individuals with high
disposable income
 Luxury
Brands
Core competences of creativity,
exclusivity, craftsmanship
 Luxury
Brands
Core competences of creativity,
exclusivity, craftsmanship
Satisfaction of owning expensive items
 Luxury
Brands
Core competences of creativity,
exclusivity, craftsmanship
Satisfaction of owning expensive items
Added psychological benefits like
esteem, prestige
How is the Luxury sector different ?

Small to medium Large

(in respect to revenue)
 Company
Size

5000 employees 116000 employees

How is the Luxury sector
different ?
Small to medium Large

Generally negative Eliminated, merged

operational in case of losses
profits, stretched
for long periods
How is the Luxury sector
different ?
Small to medium Large

Generally negative Eliminated,

operational profits, merged in case of
stretched for long losses
periods
Break even less
Break even Delayed/ delayed/ Short
No short term impact term impact of
of strategic decisions strategic decisions
Impact o f Short Term Strategic Decisions

Creative director 30% global - 70%

changed local
-> Sales dropped after -> immediate rise
1.5 yrs in sales
7 Major Luxury
Sectors
 Framework
for Luxury Brand
Management
 Framework

Who are you (Brand)?

Price
Brand Awareness
Flagship Stores
Superior Products

Rationa
l
 FLagship
Store

Christian Dior flagship store (Paris)

 Framework

You (Brand)and I (Customer) !?

Status relationship
Status stories
Satisfy role-playing aspects
Relationship with symbolic
meaning

Relationa
l
 Stories

Story to connect with travellers. Angelina Jolie for Louis Vuitton

 Framework

What about you ?

Memorable brand experience

High social approval
High on hedonism (status, esteem)
Satisfy emotional desire

Emotiona
l
The most iconic ad. Marilyn Monroe for
Chanel No. 5 (1952)
 Framework
What are you?

• Attributes may be
compensated for design
• Extravagant designs
• Known for unique
craftsmanship
• Not known for extensive
product use
Functional
8ps o f Luxury Branding
 Performance

high quality unique

design
extraordinary product capabilities
technology & innovation

ex : Patek Philippe’s 80th

anniversary
 Performance

Patek Philippe 80th Anniversary Limited Edition watch,

2019
 Pedigree

extraordinary history
that turn into an inseparable part of
the brand’s mystique

ex : Gucci Museo in Florence Italy

 Paucity

Creating a sense of scarcity

Natural : Jewelry (rubies, emeralds)

Technological : Continuous Innovation makes
newest product scarce
Tactical : Limited Editions
Mercedes-Benz SL600, Luxury Crystal Benz, studded with 300,000 Swarovski crystal
glass, are displayed at the pavilion of custom car accessory company Garson/D.A.D at
Tokyo Auto Salon 2009
 Persona

Sensorial and emotional brand identity :

logos, visual ads, movies, sounds
Rolls Royce Logo and Phantom
Persona
 Public Figures

Celebrities and public figures are employed

to grab attention, credibility and impact

Example:
Brad Pitt for No5.
Brad Pitt for Chanel No. 5 (2012)
 Placement

store location,
consumer interaction,
salesperson’s
presentation.

Create a unique
indulging experience.
ex : Dior Store, NYC
Christian Dior emphasises a lot on placement (NYC)
 Public Relations

Assure premium support and care for customers

and channels like : fashion weeks, sports
events (equestrian, golf and tennis )and themed
previews
Rolex sponsors major international equestrian events in distinct disciplines. Most
recently, the brand partnered the Rolex Grand slam of show
Jumping, a global initiative created in 2013
 Pricing

consumers relate luxury to price of goods

brands price their goods higher than expected

richness -> luxury

Luxury brands never display their prices and create a sense of
luxury. (Harry Winston, 2014)
 Conclusion

Product Excellence + Brand’s Performance

 Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

 Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

Must maintain exclusivity

 Conclusion

Product Excellence + Brand’s Performance

Luxury Consumers Evolve

Must maintain exclusivity

8Ps may not be the universal method,

but provides an strong analytical toolbox