Marketing Applied to Luxury

Luxury
The definition of luxury is changing. It’s not just about
expensive items anymore. Now, it includes being
environmentally friendly, socially responsible, and
culturally sustainable. This shift aims to challenge old
ideas and promote a more inclusive and conscientious
approach to luxury.
“Luxury branding has changed significantly over recent years
and
many say that it will never be what it once was: a discreet and
tiny.
economic sector aimed at the rich.” (KAPFERER, 2014)
Luxury brand
A luxury brand is a brand known for:
• High-quality products,
• Exclusivity, often limited availability,
• High price tags, reflecting the premium nature of the
brand’s offerings.
Difference between industrialized and haute luxury brands
1. Industrialized Luxury Brands: These brands use
modern manufacturing techniques to mass-produce their
products efficiently, prioritizing cost-effectiveness over artisanal
craftsmanship.
2. Haute Luxury Brands: “Haute” luxury brands focus on
artisanal craftsmanship and handcrafted quality, creating
exclusive, high-quality products that reflect the expertise and
creativity of the craftsmen or designers behind them.
Luxury brand management focuses on:
- Creating unique and unforgettable experiences,
- Delivering exceptional personal service.

The core values of luxury branding

1. Superior Performance: Being the best in their category,
delivering exceptional quality, and exceeding customer
expectations.
2. Craftsmanship: Demonstrating meticulous attention to
detail, utilizing the finest materials, and showcasing expert
craftsmanship in production.
3. Exclusivity: Creating a sense of uniqueness and rarity,
offering limited editions, and providing personalized
experiences for customers.
4. Innovation: Introducing novel ideas, designs, and
technologies while maintaining the brand’s essence and
heritage.
5. Sense of Place and Time: Reflecting the brand’s
connection to its origins, history, and contemporary cultural
context.
6. Sophistication and Design Aesthetic: Embodying
elegance, refinement, and a distinctive visual style that
appeals to discerning tastes.
7. Creative Expression: Expressing artistic vision and
creativity through product design, marketing campaigns,
and brand storytelling.
8. Relevance: Remaining attuned to the evolving needs and
desires of consumers, staying current with trends, and
offering products and experiences that resonate with
modern lifestyles.
9. Heritage: Celebrating the brand’s legacy, tradition, and
heritage, honoring its rich history and craftsmanship.
10. Responsibility: Upholding ethical and sustainable
practices, contributing positively to society and the
environment, and embodying values of social responsibility
and philanthropy.
Marketing mix 7ps
It consists of seven elements that collectively shape a company’s
approach to marketing:
1. Product: The goods or services offered by a company to
meet the needs and wants of customers. This includes
aspects such as product features, design, quality, and
branding.
2. Price: The amount customers pay for a product or service.
Pricing strategies involve determining the right price level
to achieve sales objectives while considering factors such as
production costs, competition, and customer perceptions of
value.
3. Place: The distribution channels and methods used to make
products available to customers. This involves decisions
about where and how products are sold, including physical
stores, online platforms, wholesalers, and direct sales
channels.
4. Promotion: The communication strategies used to inform,
persuade, and influence customers to purchase a company’s
products or services. Promotion tactics may include
advertising, public relations, sales promotions, direct
marketing, and digital marketing efforts.
5. People: The employees who interact with customers and
deliver the product or service experience. People are
essential in creating positive customer experiences and
building strong relationships with customers.
6. Process: The procedures, systems, and workflows involved
in delivering products or services to customers. Process
optimization ensures efficiency and consistency in
delivering value to customers.
7. Physical Evidence: The tangible elements that customers
perceive when interacting with a company’s products or
services. This includes factors such as the physical
 environment, packaging, branding, and other sensory cues
that influence customer perceptions and experiences.
Trends in luxury brand management
1. Digital Marketing Dominance: Successful luxury brands
excel in digital marketing to connect with high-end
consumers.
2. Digital Investment: Luxury brands allocate 33% of
advertising budgets to digital strategies, per Gartner.
3. Strategic Focus: Key priorities include website
improvements, content, and influencer marketing, based
on a Luxury Daily Survey.
4. Online Enhancement: Luxury brands prioritize upgrading
online platforms for better e-commerce experiences.
5. Visual Impact: Quality product visuals are pivotal in
luxury e-commerce for influencing consumer decisions.
Content Marketing
Content Marketing is the concept of creating, publishing
and sharing content aiming to build your brand reputation
and visibility.
Benefits of content marketing
Modern consumers prioritize experiences over possessions,
driving brands to focus on immersive interactions. Content
marketing is key, catering to digital-savvy audiences with
rich media formats like videos, AR, and VR. These
immersive experiences bridge online and offline worlds,
captivating audiences with engaging content.

Multiculturalism in luxury brands

The choice of muses
Selecting muses for luxury brand marketing is critical as they
embody the brand’s aspirational image, resonate with the target
audience, and drive consumer desire, ultimately influencing

brand perception and sales.

Marketing projects and Methodology Research in luxury

Marketing involves strategic planning to promote the company
and its products/services, while communication is crucial for
executing the strategy. It includes market research, advertising,
public relations, and promotions.
Marketing encompasses every part of a plan to turn a
prospective consumer into a happy and satisfied customer.
The goal of marketing is to
▪ Convince a person that a product is worth to investing in,
▪ Establish a brand loyalty,
▪ Increase overall sales…
Marketing project management
Marketing project management is a systematic process that
covers all aspects of content administration and development,
from concept to creation to completion.
Inbound vs Outbound Marketing
Inbound marketing attracts customers through valuable content,
while outbound marketing pushes messages to a wider audience.
Benefits of structured marketing projects
Project management benefits marketing teams by setting specific
goals, optimizing team communication, ensuring organization,
enhancing productivity, and demonstrating ROI.

Sales and marketing diagnosis

Sales and marketing diagnosis entails:
 • Analyzing the company’s market position and
marketing strategy effectiveness.
• Internal analysis: Identifying strengths and
weaknesses.
• External analysis: Identifying opportunities and
threats.
• Utilizing business and competitive intelligence to
assess market trends and commercial environment.
• Recommendations for commercial strategy and action
plans, focusing on customers, products, and organizational
development.

Take care of your visual identity:

1. Defining values, positioning, and style: Establish the
foundation for your visual identity by aligning with industry
values and projecting the desired image.
2. Create compelling communication materials: Utilize
business cards, letterheads, flyers, brochures, and other
mediums to convey targeted and impactful advertising
messages. This includes slogan research, content creation,
graphic design, and printing.
3. Enhance signage: Optimize your company’s brand image by
energizing your signage to reflect your visual identity
effectively.
Common market analysis tools
The Product Life Cycle Matrix
A product follows a life cycle like any man, a launch phase is the
arrival on the market, the growth phase, the maturity phase
(sales stagnate) and the decline phase (drop in sales),
The Pestel analysis
Used to assess ad understand macro-environmental factors.
Porter’s five forces model
Used to analyze the competitive intensity and attractiveness of
an industry.
Swot analysis
helps organizations identify key factors affecting their current
situation and future prospects
Market analysis
A market analysis assesses factors like market size, trends,
competition, and customer demographics to inform strategic
decision-making.
Types of environmental scanning:
1. Ad-hoc: Crisis-triggered, short-term.
2. Regular: Scheduled, periodic (e.g., annually).
3. Continuous: Ongoing, structured data collection without
interruption.

Business branding main steps

1. Developing tailored branding strategy
  Define brand purpose and goals.
 Understand target audience.
 Identify competitive advantages.
 Determine brand positioning.
 Establish brand guidelines and messaging.
 Implement branding solutions.
2. Building brand identity
 Consistent visuals, logos, and slogans.
 Professional design across all channels.
 Engaging content and media.
3. Fulfilling brand promises:
 Excellent user experience.
 Quality products and services.
 Informative content and professionalism.
4. Highlighting competitive advantages:
 Utilizing multiple channels for communication.
 Advertising campaigns across platforms.
 Engaging customers through various marketing efforts.
BRAND STRATEGY
Brand strategies shape long-term plans, focusing on value,
protection, loyalty, positioning, and recognition. They align with
institution-wide strategies and leverage marketing tactics like
website enhancements and influencer marketing for success.

GEN Z
Gen Z is an opportunity for brands because they’re tech-savvy,
socially conscious, and value authenticity, making them
influential consumers.
4 FACTS BRANDS NEED TO KNOW ABOUT GEN Z
1. GEN Z is dissatisfied with the present
 Missed out on beeing teen due to the pandemic
  64% of GEN Z adults agree their life is not at where they
thought it would be stp
 Acknowledging their dissatisfaction is a great opportunity
for the brands….
2. GEN Z is seeking a responsible financial future
3. Mental health is Gen Z’s top health priority
4. GEN Z wants to stand out with limitations
They want to express themselves
MERCHANDISING IN LUXURY
Merchandising in luxury involves selecting premium products,
creating visually appealing displays, providing a personalized in-
store experience, and maintaining exclusivity to appeal to
affluent consumers. This approach aims to create a unique and
immersive shopping experience that resonates with luxury
shoppers.
If you control your distribution, you control your image.
- Bernard Arnault, Chairman and Chief Executive Officer
LVMH