Temas del 5 al … Luxury management
Lesson 5 – DNA & Codes
A) Creating a luxury brand: Nine systematic and necessary elements of signature of a luxury brand: 1)the figure of the brand’s creator 2) the logotypes 3) a visual symbol 4) a repeated visual motif 5)a brand color 6) a favourite material 7) the cult of detail 8) constant hymns to the manual work 9) a typical way of doing things. B) Two distinctive and unique elements to create and establish a luxury brand: DNA and Codes. C) Country of origin effect (COO): it is a key element of distinction, not necessarily all the elements and components of a product need to be sourced in th country of origin. D) Brand DNA and codes: a) DNA characteristics: 1) unique and unmistikable 2) connected to the origin of the brand 3) not influenced by client perception 4) the dream of the product 5) carries the original meaning 6) cannot be quickly altered “repositioning” 7) Influencing everything b) Codes characteristics: 1) as important as DNA 2) codes are the exteran symbols of a brand (logo, graphics motif, color, pattern, other). 3) must belong to the brand not category 4) unmistikably recognized by clients E) Luxury and marketing research: traditional marketing reserch techniques do not work in luxury: purchasing and consumption of luxury goods is heavily influenced by phychological factors, recruiting real luxurt consumers for interviews is challenging, product performance is not a KPI for luxury.
Lesson 6 – Brand Management
A) Todays luxury brands: todays best brands are in touch with their own humanity and the humanity of others, they listen to consumers, employees and investors and respond to the message they recieve. The challenge for brands ir to respond quickly and with sincerity. They are reliable, familiar, exciting, surprising, they have the power to touch and change us because they are human creations. B) The succesful brand management: 1) maintaining a premium image 2) creation of many intangible brand associations 3) pleasurable purchase and consumption experiences 4) brand elements are important 5) secondary associations 6) control distribution 7) premium pricing strategy 8) brand architecture managed carefully 9) competition must be defined broadly 10) legally protect all trademarks C) The 8P’s of a luxury brand (ingredients for a desirable luxury brand): 1) Performance 2) Pedigree 3) Paucity 4) Persona 5) Public figures 6) Placement 7) Public Relations 8) Price D) How do luxury brands nourish their cult and their personality?: Trough storytelling: it is done when an emotional experience is shared about a product, brand must think of the customer as an audience bcz people receiving and hearing a stroy must perceive it as authentic, it is a crucial part, it is all about emotional transportation by using the vehicle of storytelling, brand stories can be used to create and reinforce positive brand associations. E) How to grow in the luxury and fashion business? : trough brand extension by vertical declination or horizontal diversification (or a combination of both). F) Licensing in luxury: third party companies which are granted by a brand the right to design manufacture and distribute at wholesale level certain products of the brand in a given territory. Examples: joint colaboration, licensee in charge or manufacturing and logistic, licensee in charge of distribution / in charge of product devlp…
Lesson 7 – Pricing
A) Is it price the major factor in Lux strategy?: In contrast to mass-market prod, price reduction in the long-run usually leads to decreasing demand and viceversa. The objective of a luxury brand is constantly increasing the avg price. B) Price and demand models: 1) Bandwagon effect: consumers buy more products because others do it (fashion). Individuals are trying to fit in. 2) Snob effect: consumers buy less products because other do it. Opposite to banwagon. 3) Veblen effect: the higher the price the higher the demand, consumers perceive higher utility at a higher price. 4) Diderot effect: consumers buy products or stlyes that they already own. PEOPLE ARE STARTING TO RENT LUXURY GOODS . C) Why luxury products have different retail prices?: different areas cost of life, global and local brand positioning, exhange rates, local duties, competitors strategy, VAT exepmtion D) Pricing strategies: a) benchmarking (competition by product and region) b) transfer pricing (accounting practice) c) discounts (due to prod obsolescence) c) movement of certain tax entities in the logisitcs and sales prod chain to low-tax countries.Lecture 7B – Pricing and planning