Luxury Brand Development, Management, and Internationalisation by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s. singh@uwinnipeg. ca http: //abem. uwinnipeg. ca www. abem. ca/conference
The Concept of Brand Development: Add value first Commodity 1₡-2₡ Goods 5₡-25₡ Service 75₡-$1. 5 Experience $2 -$2. 50 Then, we’ll do positioning, pricing, branding and communication around the value proposition.
Signs, interpretations and Logos
Saussure (1983)
Sources (messages) of value to the brands • • Mercedes Engineering, sophistication and safety MBW engineering and driving Nike Performance Starbuck Best coffee experience Fed. Ex Overnight Harvard Leadership skills MIT engineering and management 3 M Innovation • Luxury Dream!! Which dream? You can brand anything e. g. water, yourself…
Lamborghini bicycle: $25, 000 -- Lightest
Franck Muller: Master of Complications
24 Complications
Celestial map, do we need it?
900 parts in luxury versus 90 in ordinary, or 0 in electronic watch
Omega co-axial escapement watches
Brand Identity (Only 3 made)
Black Credit Card
The Luxury: The Dream Club
The Luxury: The Desire You pay $5000 Limousine ride, hovering photographers red carpet, 4 hysterical fans… Can you imagine?
Characteristics of Luxury Brand Dream a dream with value Create exclusive club Functional Given Exchange Last long, can outlive you Emotional You adore it, source of joy Mythical There is something about it Ethical Links to social responsibility Identity Convey something about you
Brand Content To sustain brand image To be the leader, set trends ↑ functional and emotional value How do we do it Educate customers History and heritage Interviews, fashion shows, manufacturing process Link brand to community Show social responsibility Gucci (mrf process), Chloé (fashion show) www
Brand Identity… Levis Jeans with distinctive labels Missoni Knitted fabric in a special way Toblerone Chocolate, red/yellow packaging Tod’s Moccasins (shoes made from deerskin very soft, single piece of leather Ferrari Red automobile LOGOS play important role in forming brand identity
Brand Identity (Ethiopian Yarn)
Luxury Brands and Social Responsibility Louis Vuitton Contemporary art education Montblanc UNICEF $10, 000 for a dinner ticket To help children Rich people compete to donate! Singer Bono’s brand in Africa Employment
Louis Vuitton Foundation: Contemporary art museum
Montblanc and UNICEF
Employment generation
Employment generation
Employment generation
Luxury Customization – Rich people like it Product LV: Choose color and material Point of delivery Bring receipt to customer, engrave their name Shopping experience Assistance to old people, special invitation, discount Customization online Online interaction Shop with a friend live video chat assistance Sales $20 m $60 m
Online Product Display 50% of luxury brands are online now Virtual mannequins 360 degree pictures i. Smell software You can smell the product on your computer!
10 Cs of Luxury Fashion Online Marketing Customer value Satisfaction Convenience Cost Communications Faster and targeted Computing Able to track online Customer franchise Trust, live assistance Customer care Community Social network Content Customization
Luxury Logos Simple Japanese like logos more space for logos Europeans do not like logos on tie; US ok Icon apple Indices relationship (smoke means fire) Symbols Ambiguous (Lion on Venice flag) Numbers, animals, initials, monograms, …
Luxury Brand Hinge North European Classical type Clear lines, contours, saturated colours, closed… shape, entirely visible Jil Sander, Ikea, Helmut Lang, BMW USA Calvin Klein, Donna Karan Mediterranean Brands Baroque type Criss-cross, open, exaggeration, line shadows… Loewe, Ferragamo, Dolce and Gabbana, Majorica, Lamborghini, Versace, Ronerto Cavelli
Internationalisation: Luxury Brand ① Create brands visibility awareness, Expand product line, men women ② License abroad 1 st perfume then fashion ↑ advt for perfume ↑ brand awareness ③ Open flagship stores in big cities abroad. Balance Merchandise bw COS & franchisee ④ Buy back franchisee. Get new balance.
Internationalisation by Brands LV USA, Germany, Italy, Spain Burberry, Prada China Audi China: Chinese officials, made-in-China Hermés Shang Xia …
International Luxury Brand Management Brand development Initially one product line extensive variety and colour Brand registration (5 -7 years validity) Register brand in few countries first $2, 000 - $3, 000 per brand (lawyer fee, tax…) If target 100 countries $200, 000 - $300, 000) Registration renewal Show proof of usages, or counterfeit operator Usually 20%-30% brands need renewals
Luxury Brands Become International When $50 m sales are reached 50% of public knows the logo Brand outlives investor eg, 3 rd generation Brand is present in USA, Europe and Asia New category is developed successfully No longer advertisement is needed to sell
Скачать презентацию Luxury Brand Development Management and Internationalisation by Dr
20713d94b8ab985bc1f52e525f252119.ppt