The meaning of Luxury Brandsin a democratized worldCONSUMER MEANING MAKING

GROUP 8PRATIK GODHANE (35A)AKSHAY MODI (3C)MAYANK BHAWSINGHKA (21C)NEHA MISHRA (25C)PADMAKUMAR R (27C)PRANAV ARORA (30C)

To segment the population as a whole based on the meaning they ascribe to luxury brands

The paper aims to highlight some of the facets of luxury brands and then investigate customer’s perception based on the extent of their association with these facets

The study also aims to form a detailed socio-economic and psychographic profile of the population in terms of perception of luxury brands

It tries to extend the knowledge of luxury brands, on the backdrop of the phenomenon of democratisation of luxury brands, given that the definition of luxury itself (something which is out of ordinary) is losing meaning

The study and its findings are in sync with the notion that ascribing a particular product as a luxury item is a state of mind

Luxury Brand Meaning

Physical Attributes

Premium Quality

Psychosocial Attributes

Aesthetics

Psychosocial Attributes

Exclusivity

Perception

•Premium price and rarity

•Exclusivity

•Unique, special and stand out

Perception-Building

•Limited Production

•Selective Distribution

•High Prices

Perception

•Fine pieces of craftsmanship

•High performance and durability

•Refined, elegant and sophisticated

Perception-Building

•High quality raw materials

•Detailed workmanship

•High precision

Excellent and uniqueness

Creativity and sensuality

Beauty and classic value

Exclusivity

Relative Importance

Attached

Affluent people

Excluded people

Excursionists

Access to Luxury

Functional

Reward

Indulgence

Meaning of Luxury

Elitists

Democrats

Distant

Attitude Towards

Consumption

Materialists

Rational Functionalists

Extravagant Prestige Seekers

Introvert Hedonists

Luxury Value Dimension

Expressive Impressive Mixed

Materialism

Success

Centrality

Happiness

Prestige Sensitivity

Individual Well-being Self-esteem

Life Satisfaction

Positive effect

Negative effect

Luxury Consumption Purchase Frequency

Experiential Luxury

Material Luxury

“Masstige”, or “prestige for the masses” is an increasing reality

They are perceived to be premium or luxury products, but at available

at price points that fill the gapbetween mid-market and super

premium

One of the key reasons for the democratisation of luxury has

been the fact that companies are coming out with variants of their

products at attractive price points to increase availability

Another driver of this phenomenon is the increasing sense of self-indulgence by the

youth

Luxury consumption is moving beyond the metro cities to Tier-I

and Tier-II cities. Aurangabad made news in 2010 for a mad rush

in purchase of luxury cars. E-commerce is turning out to be an important enabler in this regard

As foreign luxury labels look to tap into the Indian market post the increasing of FDI limit in single

brand retail to 100%, this flattening of the luxury market shall

continue its uptrend

Mercedes, once considered the car of the elite, has lend itself to democratization over the years

This phenomenon is manifested in various elements of the brand, one of them being its own endeavor to cater to a bigger market existing just above the price-range of the Fords, the Hyundais and the Nissans

With cars such as Mercedes-Benz CLA, it has forayed into the entry-premium car segment, thus diluting its luxury-quotient

Moreover, with a middle class whose disposable income has grown over the years, luxury has become commonplace

Mercedes’ single largest order – of 150 cars worth Rs. 65 crore –came from the small industrial town of Aurangabad in India

Credited with developing a market for premium chocolates in India when none existed

It has piggybacked on Indians' fetish for chocolates, especially for gifting purposes

Now trying to drive personal consumption through smaller SKUs

Making itself available in kirana stores in addition to modern trade has been a major flattener for the brand

Promotion Mainstream advertising channels such as TV and Radio not used; Print Ads and Video Campaigns focus on exclusivity

The Rolex Sports Car Series and the Rolex 24 Hours at Daytona both attract not only race fans but sports car owners who spend large amounts of money to run vehicles in the series; also advertises during golf tournaments and yachting events that attract patrons that can afford to purchase a Rolex

‘Rolex and Icons’ Video Campaign promotes famous wearers

High-achievers (Roger Federer, Tiger Woods, Jack Nicklaus) have been the brand ambassadors, signifying that only the famous and influential wear this brand

The image that is portrayed is that customers purchase Rolex as a statement and as a reward for success; some often describe it as ‘social currency’

Distribution Unlike most manufacturers that try and obtain as many retail outlets for products as possible, Rolex has decided to severely limit the number of outlets that can be authorized to sell the brand (It has just 6 retailers in New Delhi and 5 in Mumbai)

Authorized retailers are all required to be successful and high-end jewelry stores

Locations of stores: upscale areas (Connaught Place, Saket, GK, South Ex, Vasant Kunj and Janpath in Delhi; Colaba, Bandra, MG Road in Mumbai)

No company outlet on the internet

Promotion The brand banks on opulent photographs in glossy magazines; ads have a clear focus on travel; Releases travel guides on a regular basis

Invitation-only spaces in stores; customer made-to-order bags in exotic skins

Newest creation is Amble, a mobile app that lets users follow celebrities' favorite city experiences or create their own online journals with photos, videos, and notes

Promotes its collections through its Facebook page through pictures and videos of various campaigns

Came out with first ever LV TV commercial in 2012, which was a part of a campaign that also featured on social media

Distribution LV Bags offered through limited distribution channels; first store opened in Oberoi Hotel in 2003, currently has 5 flagship stores all over India

Exclusive online retail store at www.louisvuitton.com

The company has never given licenses to outside firms to avoid brand digression

Tries to maintain the authentic, simple and luxurious personality through its distribution channels

Promotion Very limited promotional activities

Choice of channel – Print media

Focuses exclusively on aesthetics and craftsmanship of products

Distribution Lladro figurines are available only in company owned-and-run outlets

Products are not sold online to maintain exclusivity

Each Lladro figurine is handcrafted to perfection and is produced in limited numbers only to maintain exclusivity

Les Clefs d’Or(The Golden Keys)

It is an international society of concierges that aims to improve and maintain the quality of service provided by concierge staff in their hotels and to ensure that this little-known profession is given the recognition it deserves

The organization prides in its exceptional expertise in inside information, intelligence and communication

The individuals of this organization operate only in world class hotels across almost all major cities in the world

The concierges are well known for fulfilling every kind of requests made by their guests

The organization is quite famous among its target group; hence, does not need any form of advertisementDespite being present on Facebook, they do not use it to promote themselves

French Luxury brand, known by the name of its founder Roger Vivier, who is credited with the design of the first stiletto heel in 1954

Exclusivity is the hallmark of the line, with many shoes made to order, some with hand-embroidered gold thread

Known as the choice of celebrity clients all over the world (Beatles, Ava Gardner etc.)

In India, it caters to a number of celebrity clients such as Sonam Kapoor (wore it to Cannes 2012) and Nita Ambani

British manufacturer of luxury sports cars and grand tourers

It is known for fine, civilized high performance sports cars, designed and produced by skilled craftsmen

It remains at the forefront of contemporary manufacturing, a cultural force that embodies design and engineering excellence, and a brand with a truly special heritage

Aston Martin commenced its presence in India with a dedicated facility in Mumbai in partnership with Performance Cars (a division of Infinity Cars Pvt. Ltd.), who had a strong reputation in the Indian luxury car market for several years

Democratization: A luxury brand loses its essence if it opts for

mass market rather than sticking with its narrow band of

consumers

Consumer Profiling: The three segments of consumers exhibit different behavioral characteristics

which luxury brands exploit for better appeal and deep emotional connect

Consumer Segmentation: It is really important for a brand to figure out its core consumers. The three

categories provided in the reading roughly covers all possible types of consumers of luxury brands