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Sell Without Selling

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Shivek Khurana
Shivek Khurana

This document discusses luxury good marketing. It defines luxury goods as products that are not necessary but make life more pleasant and are often bought by individuals with high disposable income. Luxury brands' core competencies include creativity, exclusivity, and craftsmanship which provide psychological benefits like esteem and prestige to owners. The document then compares the luxury sector to other industries and outlines frameworks and the 8Ps of luxury branding, including factors like performance, pedigree, placement, pricing, and maintaining exclusivity.

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SELL without SELLING Luxury Good Marketing Khunteta & Khurana
Luxury Goods Products which are not necessary
Luxury Goods Products which are not necessary Tend to make life more pleasant
Luxury Goods Products which are not necessary Tend to make life more pleasant Often bought by individuals with high disposable income
Luxury Brands Core competences of creativity, exclusivity, craftsmanship
Luxury Brands Core competences of creativity, exclusivity, craftsmanship Satisfaction of owning expensive items
Luxury Brands Core competences of creativity, exclusivity, craftsmanship Satisfaction of owning expensive items Added psychological benefits like esteem, prestige
Sell Without Selling
How is the luxury sector different ? Small to medium (in respect to revenue) Large
Company Size 5000 employees 116000 employees
How is the luxury sector different ? Large Eliminated, merged in case of losses Small to medium Generally negative operational profits, stretched for long periods
Loss Handling (To be) Eliminated, merged in case of losses (24/7 Wall Street) Incurring losses for the past 22 years. Still operational.
How is the luxury sector different ? Small to medium Generally negative operational profits, stretched for long periods Break even Delayed/ No short term impact of strategic decisions Large Eliminated, merged in case of losses Break even less delayed/ Short term impact of strategic decisions
Impact of Short Term Strategic Decisions Creative director changed -> Sales dropped after 1.5 yrs 30% global - 70% local -> immediate rise in sales
7 Major luxury Sectors
Framework Based On Case Study
Sell Without Selling
Framework Who are you ? Price Brand Awareness Flagship Stores Superior Products Rational
Flagship Store Christian Dior flagship store (Paris)
Framework You and I !? Status relationship Status stories Satisfy role-playing aspects Relationship with symbolic meaning Relational
Stories Story to connect with travellers. Angelina Jolie for Louis Vuitton (2011)
Framework What about you ? Memorable brand experience High social approval High on hedonism (status, esteem) Satisfy emotional desire Emotional
The most iconic ad. Marilyn Monroe for Chanel No. 5 (1952)
Framework What are you? Attributes may be compensated for design Extravagant designs Known for unique craftsmanship Not known for extensive product use Functional
Sell Without Selling
Sell Without Selling
8ps of Luxury Branding
Performance high quality unique design extraordinary product capabilities technology & innovation ex : Patek Philippe’s 70th anniversary
Performance Patek Philippe 70th Anniversary Limited Edition watch, 2009
Pedigree extraordinary history that turn into an inseparable part of the brand’s mystique ex : Gucci Museo in Florence Italy
Sell Without Selling
Paucity Creating a sense of scarcity Natural : Jewelry (rubies, emeralds) Technological : Continuous Innovation makes newest product scarce Tactical : Limited Editions
Mercedes-Benz SL600, Luxury Crystal Benz, studded with 300,000 Swarovski crystal glass, are displayed at the pavilion of custom car accessory company Garson/D.A.D at Tokyo Auto Salon 2009
Persona Sensorial and emotional brand identity : logos, visual ads, movies, sounds
Rolls Royce Logo and Phantom Persona
Public Figures Celebrities and public figures are employed grab attention, credibility and impact Example: Brad Pitt for NO5.
Brad Pitt for Chanel No. 5 (2012)
Placement store location, consumer interaction, salesperson’s presentation. Create a unique indulging experience. ex : Dior Store, NYC
Christian Dior emphasises a lot on placement (NYC)
Public Relations Assure premium support and care for customers and channels like : fashion weeks, sports* events and themed previews *equestrian, golf and tennis
Rolex sponsors major international equestrian events in distinct disciplines. Most recently, the brand partnered the Rolex Grand slam of show Jumping, a global initiative created in 2013
Pricing consumers relate luxury to price of goods brands price their goods higher than expected richness -> luxury
Luxury brands never display their prices and create a sense of luxury. (Harry Winston, 2014)
Conclusion Product Excellence + Brand’s Performance
Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve
Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve Must maintain exclusivity
Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve Must maintain exclusivity 8Ps may not be the universal method, but provides an strong analytical toolbox
Thank You Luxury Good Marketing Khunteta & Khurana

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Sell Without Selling

  • 1. SELL without SELLING Luxury Good Marketing Khunteta & Khurana
  • 2. Luxury Goods Products which are not necessary
  • 3. Luxury Goods Products which are not necessary Tend to make life more pleasant
  • 4. Luxury Goods Products which are not necessary Tend to make life more pleasant Often bought by individuals with high disposable income
  • 5. Luxury Brands Core competences of creativity, exclusivity, craftsmanship
  • 6. Luxury Brands Core competences of creativity, exclusivity, craftsmanship Satisfaction of owning expensive items
  • 7. Luxury Brands Core competences of creativity, exclusivity, craftsmanship Satisfaction of owning expensive items Added psychological benefits like esteem, prestige
  • 9. How is the luxury sector different ? Small to medium (in respect to revenue) Large
  • 10. Company Size 5000 employees 116000 employees
  • 11. How is the luxury sector different ? Large Eliminated, merged in case of losses Small to medium Generally negative operational profits, stretched for long periods
  • 12. Loss Handling (To be) Eliminated, merged in case of losses (24/7 Wall Street) Incurring losses for the past 22 years. Still operational.
  • 13. How is the luxury sector different ? Small to medium Generally negative operational profits, stretched for long periods Break even Delayed/ No short term impact of strategic decisions Large Eliminated, merged in case of losses Break even less delayed/ Short term impact of strategic decisions
  • 14. Impact of Short Term Strategic Decisions Creative director changed -> Sales dropped after 1.5 yrs 30% global - 70% local -> immediate rise in sales
  • 15. 7 Major luxury Sectors
  • 16. Framework Based On Case Study
  • 18. Framework Who are you ? Price Brand Awareness Flagship Stores Superior Products Rational
  • 19. Flagship Store Christian Dior flagship store (Paris)
  • 20. Framework You and I !? Status relationship Status stories Satisfy role-playing aspects Relationship with symbolic meaning Relational
  • 21. Stories Story to connect with travellers. Angelina Jolie for Louis Vuitton (2011)
  • 22. Framework What about you ? Memorable brand experience High social approval High on hedonism (status, esteem) Satisfy emotional desire Emotional
  • 23. The most iconic ad. Marilyn Monroe for Chanel No. 5 (1952)
  • 24. Framework What are you? Attributes may be compensated for design Extravagant designs Known for unique craftsmanship Not known for extensive product use Functional
  • 27. 8ps of Luxury Branding
  • 28. Performance high quality unique design extraordinary product capabilities technology & innovation ex : Patek Philippe’s 70th anniversary
  • 29. Performance Patek Philippe 70th Anniversary Limited Edition watch, 2009
  • 30. Pedigree extraordinary history that turn into an inseparable part of the brand’s mystique ex : Gucci Museo in Florence Italy
  • 32. Paucity Creating a sense of scarcity Natural : Jewelry (rubies, emeralds) Technological : Continuous Innovation makes newest product scarce Tactical : Limited Editions
  • 33. Mercedes-Benz SL600, Luxury Crystal Benz, studded with 300,000 Swarovski crystal glass, are displayed at the pavilion of custom car accessory company Garson/D.A.D at Tokyo Auto Salon 2009
  • 34. Persona Sensorial and emotional brand identity : logos, visual ads, movies, sounds
  • 35. Rolls Royce Logo and Phantom Persona
  • 36. Public Figures Celebrities and public figures are employed grab attention, credibility and impact Example: Brad Pitt for NO5.
  • 37. Brad Pitt for Chanel No. 5 (2012)
  • 38. Placement store location, consumer interaction, salesperson’s presentation. Create a unique indulging experience. ex : Dior Store, NYC
  • 39. Christian Dior emphasises a lot on placement (NYC)
  • 40. Public Relations Assure premium support and care for customers and channels like : fashion weeks, sports* events and themed previews *equestrian, golf and tennis
  • 41. Rolex sponsors major international equestrian events in distinct disciplines. Most recently, the brand partnered the Rolex Grand slam of show Jumping, a global initiative created in 2013
  • 42. Pricing consumers relate luxury to price of goods brands price their goods higher than expected richness -> luxury
  • 43. Luxury brands never display their prices and create a sense of luxury. (Harry Winston, 2014)
  • 44. Conclusion Product Excellence + Brand’s Performance
  • 45. Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve
  • 46. Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve Must maintain exclusivity
  • 47. Conclusion Product Excellence + Brand’s Performance Luxury Consumers Evolve Must maintain exclusivity 8Ps may not be the universal method, but provides an strong analytical toolbox
  • 48. Thank You Luxury Good Marketing Khunteta & Khurana