Xiang Ji 03/04/2015 MK221 Marketing Principles Professor Miscowski

Cartier
Cartier is the one of the famous luxury jeweler and watch manufacturer in the world. In the world of jewelry, the Cartier name has long-standing cachet. It is the world’s top five jewelry manufacturers. The other four include Bulgari, Harry Winstonm, Van Cleef&Arpels, and Tiffany&Co. The company started business in Paris in 1847, founded by Louis-Francois Cartier when he took over his master Adolphe Picard’s workshop. The first Cartier workshop is on the 29 Montorgueil Street in Paris. It was a sign of the growth jeweler kingdom by opening this shop. Louis is a brilliant designer and a sagacious businessman with highly art taste. Cartier has always focus on its production orientation most. They want every jeweler that they design can count on a masterpiece. Cause the company wants to satisfy every customer who brought their product. Designers of Cartier are trying to innovation again and again to the best. They always ask these questions to themselves: What can we do best? Same as their sell assistants, Cartier has long prided itself on discretion and personal tailor-made jeweler for their customers. Cartier has a long history of serving royalty, as well as stars and celebrities including Queen Victoria’s consort, the Duchess of Windsor, and Sir Digvijaysinhji, Maharaja

Jam Saheb of Nawanagar. Cartier has even once been designated as the “Joaillier des Rois, Roi des Joailliers” (Jeweler of the Kings, King of Jewelers) by prince Edward VII of Wales. Apparently, Cartier is well known for its jewelers and wristwatches and has long history of sales to royalty and celebrities. The target market use for royalty, and people spend heavily on authentic and famous luxury brands to further enhance their image and position in the society. Cartier has different lines of products in order to satisfy every age group as much as they hope. And the biggest age group of customers for Cartier now is Generation X, people born between 1965 and 1978, want to pursuit the high quality of life, and they are entering their peak earning and spending years and having high purchasing power. They can afford buy luxury products like Cartier. Besides, Cartier was design a new product line in 2006 called LOVE, the prices of this line of products at average are cheaper than the other Cartier lines of products, which focus on a younger group of customers—collar workers, age between 25 to 35 years old. They are the new military of buying luxury products. In additional, Cartier nowadays opens shop all over the world; it also has some specially collection for specific countries areas. For example, Cartier had hold exhibition in China sometimes, I remember one of the exhibition they hold, a part of the products they showed that time were designing base on Chinese traditional lunar

characters. Guessing Cartier could not give up the biggest potential customers as well. In fact, as the pioneer in the international jewelry market in China, Cartier first entered China in 1992. In 1998, it opened its first exclusive shop in Mainland China on Wang Fu Jing Street in Beijing. By 2010, Cartier had 11 watch dealers and 58 exclusive shops in China. Its early entry into the Chinese market and its fast growth gave it a competitive advantage in competing with other international jewelry brands in China. 20 years ago when it first entered China, it only focused on the biggest cities. Now the brand is looking to expand into second-tier cities, especially in South China, as it plans to open stores in cities like Ning Bo and Wen Zhou. As luxury shopping becomes increasingly popular in China, the competition in the Chinese market will certainly intensify. Brazil and India will be the next biggest consumer market in the world after China, but China will continue to be the biggest for the next ten years. According to a report published by PwC, the sales of luxury goods in China this year will be up to 15.5 billion USD. It estimates that luxury goods sales in China will exceed Japan for the first time, and becoming the largest consumer of luxury goods in the world. (http://daxueconsulting.com/market-strategy-cartier-in-china/) And Cartier’s headquartered is in Paris and operates more than 200 stores in 125 different countries nowadays. In addition, the company has four emblematic boutiques located in Paris, London, New York, and Tokyo.

From my research, there has another 4P’s for Cartier target market or other luxury brands marketing mix: 1. Performance Delivery of superior experience of a luxury brand The Ballon Bleu de Cartier flying tourbillion second time zone offers an original combination of two complications: the flying tourbillion and the double time zone with jumping hours. 2. Paucity Luxury brands try to maintain the perception that the goods are scarce, and it is meant for the elite class. 3. Personal Creating a world and an aura that is truly exceptional to their brand signature. 4. Public Figures They continue to garner attention, credibility and impact. Public figures can span from film stars to music personalities, from sports personalities to royal families and even the designer themselves. (http://www.slideshare.net/SoumyaMukherjee12/cartier-soumya) And talking about this company’s competition, as I mentioned in the front pages, are the other four include Bulgari, Harry Winstonm, Van Cleef&Arpels, and Tiffany&Co.

Today I would like to compare Cartier with Tiffany&Co. Tiffany&Co. is also a big luxury jewelry company in the world founded in 1839, headquartered in New York City. The mission of Tiffany&Co. is to enrich the lives of customers by creating enduring objects of extraordinary beauty that will be cherished for generations. And their products are sold world wide, same as Cartier. Tiffany&Co. is in the maturity stage of the product lifecycle. In additional, the company has three main distribution channels: distributes in physical stores, from business-to-business as well as online store. However, the biggest difference between Cartier with Tiffany&Co. is the target customers. The price of Tiffany&Co. products ranges from $125-