Luxury brands strategy
In today’s borderless, digital world, a marketer’s expertise is paramount to a company’s success. This article explores and reviews creativity in the market segmentation process, global positioning as a principal brand asset, the marketing criteria for product design decisions and a review of some of the most successful luxury brands in the world.
Luxury brands
Luxury brands marketers have developed some creative ways of segmenting their markets as this space is rapidly changing with globalization, technology and an increase in younger consumers. How does the luxury brand marketer creatively develop clusters and groups of potential customers that share the homogenous quality of having enough money to buy their products?
Be successful
In order to be successful, global marketers needs to develop a positioning strategy. Burberry made its gabardine rain coat for British officer serving in the trenches of France in World War One.Eventually, most of these brands went from locallyowned firms offering functional products to average customers to global luxury enterprises with brands cherished by celebrities and the affluent.
Marketing Strategies
Marketers use strategies and constructs such as identifying a market niche, high levels of differentiation, symbolic value and exclusivity in order to build their brands globally. Many luxury fashion brands identify a market niche and design their products for these consumers.In order for a global marketer or brand manager to deliver brilliance, they must be able to identify the symbolic value of the product, which requires creativity on their part.
Whether it’s using celebrities in advertising campaigns or placing the product in a motion picture, the perception of the luxury brand must resonate with the affluent consumer by sending a quality signal (Holt, Quelch & Taylor, 2004).
Burberry has a brand value of $24 billion and has transformed from a conservative maker of raincoats into an innovative global brand that attracts younger consumers by integrating multimedia into websites and blogs and providing iPads in-store.
Luxury fashion brands and Globalization
Globalization has created a multitude of wealthy consumers in Asia and the affluent are younger and more mobile than ever, presenting opportunities for emarketers and brand managers via social media and the internet.
Advertising campaigns have to be localized with images, colors and messages in the local language of a country, despite the standardized marketing strategies of global brands and the corporations and holding companies that control them. In addition to these challenges, luxury brand marketers must deliver brilliance in terms of creativity, craftsmanship, position and pricing of their products, their overall task is to create affluence for the various market segments that consume their goods.