...Swatch Group 1 Professor: Rolf Butz 10/28/2008 International Business BADM 455 Section 2 Swatch Group 2 Table of Contents Executive Summary .............................................................................................................. 1 Introduction ......................................................................................................................... 5 History ................................................................................................................................. 5 Industry Analysis .................................................................................................................. 7 Company & SWOT Analysis ................................................................................................ 11 Current Situation &Global Market ..................................................................................... 17 Competitor Analysis ........................................................................................................... 23 Recommendation............................................................................................................... 26 Conclusion ......................................................................................................................... 29 Methodology ...
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...concern over plans to introduce native advertising, which the official Instagram blog has attempted to assuage by saying that the intention is to “focus on delivering a small number of beautiful, high-quality photos and videos from a handful of brands that are already great members of the Instagram community.” And according to Steve Olenski at Forbes, “there will be no shortage of brands chomping at the proverbial bit to be part of the ‘small number’… Instagram’s growth has been so substantial that it now rivals Google and Pinterest in terms of brand adoption.” Olenski based his assertion on a recent study by Simply Measured, which indicates that brand adoption on Instagram is up 40% on last year. Another salient point highlighted by the study is that automotive, media and luxury brands dominate in terms of engagement on Instagram – and these engagement levels are continuing their growth. Brand engagement has increased by 350% in the last year, due to more and more brands embracing the platform as a means of reaching their followers. So why are brands flocking to Instagram, over other apps and networks? The first and most obvious answer is that lifestyle and luxury brands want to tell inherently visual stories (which is also why many brands are establishing a presence on Tumblr). An extract from the study suggests that “aside from the 150 million users, Instagram offers an...
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...The Concept of Luxury Brands by Klaus Heine Technische Universität Berlin, Department of Marketing Prof. Dr. Volker Trommsdor Wilmersdorfer Str. 148, 10585 Berlin, Germany Phone: +49.30.314-29.922 • Fax: +49.30.314-22.664 Email: Klaus.Heine@marketing-trommsdor.de • Internet: www.marketing.tu-berlin.de Heine, Klaus (2011) The Concept of Luxury Brands, Technische Universität Berlin, www.concepto uxurybrands.com. Edition: 1.0 This paper is published as the rst part of the serial publication Luxury Brand Management ISSN: 2193-1208 Editing & Review: Bartek Goldmann and Kate Vredenburgh Cover page: Kevin Duggan Acknowledgements: Dr. Steen Herm. I would like to thank the following people for their support and constructive criticism: Prof. Dr. Volker Trommsdor, Prof. Dr. Reinhold Roski, Dr. Vera Waldschmidt, Demet Tuncer, by Klaus Heine (2011); Copyright by Klaus Heine. All rights reserved. Apart from any fair dealing for the purpose of re- search or private study, or criticism or review, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, scanning, or by any information storage or retrieval system, without permission in writing from the author. Technische Universität Berlin, Department of Marketing, Wilmersdorfer Str. 148, 10585 Berlin, Germany, Tel: +49.30.314-29.922, Fax: +49.30.314-22.664 Contents List of Figures . . . . . . ...
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...global market for luxury brands has experienced a dramatic growth over the last three decades, and the current demand for luxury brand products has grown enormously. Wiedmann, Hennigs and Siebels(2009, p. 627) stated that a luxury good: “brings esteem for its owner and enables consumers to satisfy psychological and functional needs”. This essay will argue that marketing theories: brand theories and the ‘four-P framework’ ( product, pricing, place and promotion) are applied to bring superior value to luxury brands. It will also identify the tangible and intangible resources that are utilized to add superior value to luxury brands, in comparison to low-priced products. An illustration will also be given regarding luxury and basic cosmetic branding. Finally, it will be argued that it is not ethical to charge high prices for products. Nowadays the consumption of luxury products has become so vital to the global economy and the high profile of luxury goods has built widespread awareness of brands in customers’ perception. It is claimed that a luxury brand is one that is selective and exclusive, and which has an additional creative and emotional value for the customer (Chevalier and Mazzalovo, 2008). Even if some consumers cannot afford to buy luxury brands, they are familiar with the name or symbol of some famous brands that are classified as luxuries. A brand name helps differentiate its products from others and makes it distinct from those of other sellers. Brand equity concerns...
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...Lack of quality luxury space, environment and dearth of high street or super premium malls is a prime reason for restricted presence of luxury brands in India, thus there is a dire need for modernized and dedicated luxury retail areas in protected vicinities such as airports, according to a recent ASSOCHAM-KPMG joint study. "Setting up stores in high streets affects luxury retailers' profitability due to sky-rocketing rental costs, moreover, high streets are very cluttered, crowded and are unsuitable due to the absence of exclusive ambience that luxury retail demands," according to a study on 'Challenges highlighted by luxury retailers in India,' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and KPMG. The Indian luxury market grew at a healthy rate of 30% to reach $8.5 billion in 2013 and is likely to continue growing at a healthy pace of about 20%, and reach $14 billion by 2016 owing to rising number of wealthy people, growing middle class, affluent young consumers and other related factors. Though, India currently enjoys just one-two per cent share in the global luxury market but it is the fifth most attractive market for international retailers. Fragmented and diversified consumer base in India is another significant challenge being faced by luxury retailers in India as high net worth individual ( HNI) consumers are not easy to reach, noted the ASSOCHAM-KPMG study. Luxury brands need to strategically design their growth plans...
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...WASEDA BUSINESS & ECONOMIC STUDIES 2009 NO.45 Luxury Brand Strategy of Louis Vuitton - Details of Marketing Principles by Shin'ya Nagasawa* Abstract: By systematicallybreaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word "brand" to refer to the likes of Coca-Cola and McDonald's, there is a vast gulf between these brands and the luxury brands we explored in the previous book. In researchers' brand management theories, one rarely finds mention of representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although * Shin'ya Nagasawa is a professor of MOT (Management of Technology) at...
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...between brand equity and firms’ performance in luxury hotels and chain restaurants$ Hong-bumm Kima,1, Woo Gon Kimb,* b a College of Hospitality & Tourism, Sejong University, Kwang-jin Gu, Gun-ja Dong 98, Seoul 143-747, Republic of Korea School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, OK 74078-6173, USA Received 27 February 2004; accepted 4 March 2004 Abstract There is a growing emphasis on building and managing brand equity as the primary drivers of a hospitality firm’s success. Success in brand management results from understanding brand equity correctly and managing them to produce solid financial performance. This study examines the underlying dimensions of brand equity and how they affect firms’ performance in the hospitality industry—in particular, luxury hotels and chain restaurants. The results of this empirical study indicate that brand loyalty, perceived quality, and brand image are important components of customer-based brand equity. A positive relationship was found to exist between the components of customer-based brand equity and the firms’ performance in luxury hotels and chain restaurants. A somewhat different scenario was delineated from the relationship between the components of customer-based brand equity and firms’ performance in luxury hotels and chain restaurants. r 2004 Elsevier Ltd. All rights reserved. Keywords: Customer-based brand equity; Firms’ performance; Chain restaurants; Luxury hotels; Brand awareness ...
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...It is difficult to find a precise definition of “luxury”, but it’s generally identified with high quality and price products in the fields of fashion, luggage, jewelry, cosmetics, fragrances, watches, and drinks. In the luxury goods business there are 35 companies that share 60% of the market, but only 6 of them have revenues in excess of $1 billion. Considering the definition explained before, the most important companies which belong to the market are: Louis Vuitton, Cartier, Gucci, Prada, Hermes, Bulgari, Tod’s, Celine, Jil Sander, Kenzo, Valentino, Lacroix, Donna Karan, TAG Heuer, Armani, Tiffany, Chanel, Ralph Lauren and Tommy Hilfiger. It is an interesting market because it is completely focused on the quality of the product from every point of view: the beauty and the design of the product, the refinement and affectation of raw materials, the meaning of the product (the style and the social status of the person to whom it belongs) and the values and emotions that it transfers. As a result, the company focus is mainly on differentiation rather than on cost, therefore these companies follow a differentiation strategy in order to obtain a differentiation advantage. This feature of the market is reflected on the companies’ results, for example looking at the return on sales ratios of Gucci (27% in 1999) in relation to ther company markets like Coca-Cola Company (10,6% in 2000), Amazon (6,8% in 2000) and Dell (8% in 1998). Considering the market in general, LVMH holds the first...
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...study examines why the luxury online shopping industry has not been more successful in today’s highly digital age. A literature review as well as, a self-conducted study will be used to address this question. First, literature is presented on what luxury goods are and what factors motivate people to consume luxury brands. Next, research is used to describe the consumers of luxury shopping online. Following this, the literature review covers three dilemmas when using the Internet to sell luxury brands. The first describes whether or not brand integrity is diluted on the Internet because of the ability for everyone to have access to these luxury products. The second dilemma concerns whether or not the sensory nature of the luxury shopping experience can be translated onto the Internet. And the third deals with the Internet’s inherent ubiquity and whether that compromises the exclusivity of what luxury brands stand for. Finally, existing literature is used to demonstrate how to measure service quality on the Internet as well as propose web site design issues faced by online retailers. The following section, Section V, describes the research method used in this study to explore how well the design of luxury e-stores meets customer expectations, while conveying the luxury consumption factors without the sensory aspects of a traditional store. The results of this study show that luxury e-stores have a long way to go in terms of replicating the sensory luxury shopping experience onto...
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...led him to become expelled from school three times. At the age of 12, he ran away from home and moved in with his peers’ family. At this same age, Louboutin frequently visited the flea markets and snuck into shows to watch famous showgirls perform. During his visit to the African and Oceanic Art Museum, he became inspired to create shoes. Louboutin received little formal training during his lifetime; the small amount he received was at the Academie Roederer where he studied drawing and decorative arts. During his teens, he traveled for a year in Egypt and India. Inspired by these foreign cultures, the young Christian decided to return to Paris with a portfolio full of heels in 1981. While in Paris, he worked as a freelance designer for brands like Chanel, Yves Saint Laurent, and Maud Frizon. He also tutored under designer, Charles Jourdan. In 1988, Roger Vivier, a famous designer who worked for Dior, took Christian under his wing. Vivier helped Louboutin sharpen his shoe designing and manufacturing skills. In 1991, Christian finally established his own company. He opened up his first boutique, Christian Louboutin, in Paris, France. With the help of Princess Caroline of Monaco and a fashion journalist, he instantly became famous. He gained famous clients, like Madonna, Sarah Jessica Parker, Lady Gaga, Beyonce, and more. Louboutin’s most famous global trademark is the red bottom heels. Christian...
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...evening-wear dresses, shoes, bags, and accessories from the latest ready-to-wear collections. In July 2008, ES opened its first U.K. boutique at Harrods. The company planned to increase its worldwide retail presence through opening new stores in major cities around the world, including in the United States and Asia. While the company was witnessing impressive growth, management was dealing with the challenge of selecting the right partners, identifying new markets with the greatest growth potential and, most importantly, protecting the brand from dilution. From the start, its goal was to “attract, select and maintain customers who place significance on high-end, one-of-a-kind designs made from the finest fabrics and materials.” The case covers the challenges and opportunities of the company as it expands internationally. Learning Objective: * To underscore the importance of traditional branding principles for building a sustainable global brand. * To explore the changes of strategy as a company moves through the stages of the product lifecycle. * To examine the threats to and sustainability of...
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...This new flagship store reinforced the brand's presence in the United Arab Emirates, making its products more accessible to the region's local and international shoppers. The store showcased day and evening wear dresses, shoes, bags and accessories from the latest ready-to-wear (RTW) collections. In July 2008, ES opened its first U.K. boutique at Harrods. The company planned to increase its worldwide retail presence through opening additional stores in major cities around the world, including the United States and Asia. While the company was witnessing impressive growth, management was dealing with the challenge of selecting the right partners, identifying new markets with the greatest growth potential and, most importantly, protecting the brand from dilution. From the start, its goal was to "attract, select and maintain customers who place significance on high-end, one-of-a-kind designs made from the finest fabrics and materials." The case covers the challenges and opportunities of the company as it expands...
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...When repositioning the brand, Bravo and her team noticed available niches between Polo Ralph Lauren/Giorgio Armani in apparel and Coach/Gucci in accessories (Moon, 2004). Relative to its competitors, Burberry is presented as ‘accessible luxury’ (Moon, 2004). Burberry’s new competitive positioning is seen as sustainable over long term. What separates Burberry from other luxury brands is the functional aspect—a trench coat that has a purpose (Moon, 2004). Burberry’s point of difference was to be aspirational, but also functional (Moon, 2004). Bravo described the brand’s current position as wedged between Ralph Lauren’s lifestyle and Gucci’s fashion (Moon, 2004). Not only are lifestyle and fashion brands competitors of Burberry, but companies like Target are competitors as well (Moon, 2004). This is due to people shopping everywhere; high-income people shopping at discount warehouses and middle-income people shopping at luxury retailers (Moon, 2004). Since Burberry is continuing to bring out innovative designs and products partnered with proper advertisements, its competitive positioning is sustainable over the long term. 2. The case notes that Bravo’s team has managed to elevate the overall status of Burberry’s brand. How has it managed to accomplish this? b. First and foremost, Bravo and her team knew that the next five years were going to be crucial (Moon, 2004). Bravo’s team set the goal to maintain Burberry’s currency and cachet of the brand across its customer base...
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...Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not affected by trends. These brands set seasonal trends and are capable of generating consumers, wherever they are established.In luxury marketing, there is a delicate relationship between 4 factors that most strongly influence the purchase of the luxury consumer. They are the exclusiveness of the brand, the reputation of the brand, forms of distribution and price/value affiliation. Exclusivity cannot always be ensured due to immense competition. But by consequence, it is not the key requirement of a luxury consumer. The consumer bases their purchasing decisions mainly on the aura of the brand and completion of their ‘actualization needs’. Therefore, aura of the brand is more important than exclusivity. A luxury consumer is always looking for newer ways to satisfy their inconsistent wants and needs. Therefore, it is important for Gucci, LV and Vertu irrespective of their exclusivity and geographical presence to research and give their consumers major importance, to be successful in the fashion or high-end market. This report will aim to discuss the key success factors of Gucci, LV and Vertu that have impacted on their brand image and exclusivity. Furthermore, it gives a detailed explanation supported with examples on how they achieve their elitism. It then discusses the problems and obstacles if...
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...(“LVMH”) was formed in 1987 when Louis Vuitton, a leading luxury fashion brand, formed in 1854, merged with Moet Hennessy. Moet Hennessy had been formed in 1971 when Hennessy, a cognac manufacturer, merged with Moet et Chandon, a high end champagne producer. This formation of LVMH would signal the creation of one of the world’s most profitable and encompassing luxury goods conglomerates. In 1989, Bernard Arnault would enter the picture, become the major shareholder of LVMH and take up position as chairman. An entrepreneur and art admirer, Arnault had amassed a personal fortune in real estate and in other luxury goods markets before purchasing the majority share of LVMH. Under him, LVMH would grow exponentially, acquire even more brands, expand into new markets, and see unprecedented growth. By the late 1990’s to early 2000’s, the company would be posting net revenues in the billions of Euros, comprise some fifty sub companies, all of brand names synonymous with high end fashion and luxury, and have over 1,500 retail stores operating in every major market on a global level. LVMH became the parent company to some fifty sub companies across a variety of different product industries and types. All were owned by the same company, but most operated independently and, in some instances, were direct competitors of each other. Regardless, each company no matter how different had one thing in common; they all produced high end luxury products. LVMH operated five sub categories: wines and...
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