Luxury Product Launch with Luxury Brand Dream Value Strategy

LUXURY PRODUCT LAUNCH WITH LUXURY BRAND DREAM VALUE STRATEGY

Presented by Jing HuangApril. 2012

Introduction The Theory Two Case Studies The Comparison Dream Conclusion

Introduction

Brand Capital Measurement

Brand

Capital

Awareness

Consideration Behaviour

Ability to create

fanatics

Luxury Brands are different

There is no talking of consideration but Dreams, and high consumption destroys the dream

Luxury is access to a DREAM !

The Dimensions of this Dream

The Social Dimension The Sensorial Dimension

A brand dream is the function of the difference between brand awareness and the rate of ownership of the brand.

The Luxury dream is boosted by the distance between those who know and those who can

-------The Luxury Strategy by J.N.Kapferer and V.Bastien

The Theory

How to build a dream for a Luxury brand

First, without awareness there is no dream

Second, If awareness is high, then it is the distance between the number of people who recognize it and the number of wearers of the brand that creates the dream.

Luxury Dream Value Measurement

Dream Value well managed Dream Value poor managed

Purchasers Brand Awareness Purchasers Brand Awareness

The diagram made according to The Four Typical Situations , The Luxury Strategy by J.N.Kapferer and V.Bastien

Question Mark

What methods can be considered as strategies to boost the brand awareness but control the consumption at the same time?

Two Case Studies

Case Study 1 Miss Dior UK LaunchChristian Dior

Miss Dior

Introduction of the product launch through

Marketing 4Ps

The Product The Price The Place The Promotion

The ProductA young and Versatile attitude

Structure bag, Constructed on mould Shoulder carry or across the body thanks to its chain A touch of chic, for day or evening, classic and

contemporary, elegant and feminine yet causal and fun attitude

In Lambskin 135 pieces from the first delivery in U.K.

The Product Name has deliberately taken use of from

Miss Dior Haute Couture dress, 1947

Miss DiorThe first Perfume, 1947

Miss Dior curved-heel pump 2007

The Product shape is similarity with

Chanel classical Flap Bag

Easy Recognised Sharing with existing high profit market e.g. Chanel classical Flap Bag But with Christian Dior own culture story and design details

It has been launched with retail price from £1800 to £2000 July,2011. The price has been increased twice after launching. Now is from £2300 to £ 2600.

The Price

Mid 2011

Late 2011

Early 2012

Mid 2012

Late 2012

0

500

1000

1500

2000

2500

3000Miss Dior Price Trend

Price Min Price Max

The PlaceUK wide distribution

Selfridges, Manchester

Selfridges, Birmingham

Sloane street Bond Street Harrods Selfridges White City Heathrow T5, London

Boutique fit and window display

Compelling window display

Mixing with Iconic bag Lady Dior

The Promotion Aima long-term and ongoing plan

• Raise awareness and desirability

2011

• Further increase desirability

2012 • Promote as an Legitimate Dior bag

2013-2014

Promotion timeline

04/2011: Staff product training

05/2011: Press Release

07/2011:Advertising Campaign

08/2011 :leaflet, Advertising Campaign

09/2011: Vogue fashion night out Miss Dior Events, ELLE, Vogue

10/2011: Vogue, ELLE

11/2011: Miss Dior perfume Couture limited edition

11/2011-12/2011 : ELLE

01/2012 : Mila Kunis as the face of the Miss Dior handbag, DiorMag, ELLE 02/2012: New Leaflet 03/2012: New Miss Dior Perfume launch03/2012-04/2012: ELLE

To Be Continue

2013 to

2014

2011

2012

To reinforce the title of luxury, the

distance of the gap between purchasers and awareness has to be firmed. The concept of dream value could be strategically maintained through Marketing 4Ps.

Marketing 4ps Dream Management Master Table

4PsActivities to

Increase Awareness

Activities to Control

Purchase

Price P

Product P P

Place P P

Promotion P

Miss Dior Current Luxury Dream Model

To raise awarenessPlace: wide distributionPromotion:EventsMagazineinternetSocial networkBrand ambassadorProduct:Name StyleProduct stretching

To control purchasersPrice:Regularly Price IncreaseHigher price of limited editionProduct:Limited editionExotic skin Seasonal editionPlace:Limited distributionfor limited edition

AwarenessPurchasers

In terms of managing dream value, Dior has carried out dual activities to boost awareness and control consumption to maintain the dream gap.

Miss Dior = Well Managed

Following plans to increase awareness further in the future, additional controls need to be added

It can be seen from Miss Dior case study, the awareness and purchase rate are flexibility, the companies need regularly follow up and monitor them so that the strategy could be efficiently adjusted to continuingly maintain the dream value of Luxury.

Question Mark

Luxury Brand always links to uniqueness & exclusivity.

In the luxury product range some products require greater uniqueness:

much more limited availability Less awareness

How can the dream value be managed for these products?

Case Study 2Diorissimo UK LaunchChristian Dior

Diorissimo

The ProductA Dior icon combining obvious elegance

and leather goods ‘know-how’

Timeless day bag Hand or Shoulder carry Elegant day bag In calfskin Only 68 pieces worldwide

from first delivery

The PriceLaunch with retail price from to £2250 to £2750

The price has been increased after March, from £2450 to £3000

Late 2011 Early 20120

500

1000

1500

2000

2500

3000

3500

Price MinPrice Max

Diorissimo Price Trend

The Place No Display in Boutique shop floor 3 boutiques distribution only in UK No Transfer Serving in VIP Salon

The Promotion Staff product and presentation training Personal Phone Calling Personal E-mailing Viewing allowed only from private appointment Presentation only by Leather goods specialist Limited advertising –directed

Diorissimo Luxury Dream Model

Purchasers Awareness

To control purchasersPrice:Regularly Price IncreaseHigher price for limited editionProduct:Limited quantity unique material Exotic skin Place:Restricted display

To raise awarenessPlace: limited distribution worldwidePromotion:Direct promotionVIP eventsProduct:Name Style

Diorissimo also fits well to the dream value management model.

The gap has been maintained with higher exclusivity balanced with lower awareness.

It could be considered as a tactical method when the company re-positions an existing product to rare level.

The Comparison Between Two Cases

Marketing 4ps Dream Value management Comparison Table

Marketing Aspect Miss Dior Diorissmio

Product

High QualityMultiple options/editionsLimited Quantity

High QualityLimited RangeVery Limited Quantity

Price

£1800 to £2000Regular Price IncreasesHigher price for limited edition

£2250 to £2750Regular Price IncreasesHigher price for limited edition

Place

Prominent In-store DisplayAvailable in all storesLimited online availabilityAble to walk-in and purchase

Restricted in-store displayAvailable in flagship storesNo online availabilityAppointment required to purchase

Promotion

Heavily promoted in mainstream fashion mediaShared name with additional products

Limited Promotion targeted to specific customerUnique identity

Both products are well-managed in terms of dream value but differ:

Miss Dior = Higher

profile Diorissimo = Higher Exclusivity

Miss Dior Diorissimo

Level of Awareness

HIGH LOW

Control on Availability HIGH HIGH

Dream conclusion

To maintain the dream value, No matter how much quantity planned for the market, a certain gap need to be maintained between purchase and awareness!

Maintaining different levels of well-managed dream levels allows:

Greater product differentiation (not just style & design but also level of dream)

Possibility to better manage products over its lifecycle

Lady DiorThe most famous iconic Bag travels around the world

Due to Lady Dior successful promotion and incredible sales achievement in recent years, Christian Dior is able to manage without any pressure to reduce the production and restrict the consumption to keep its symbolization for the consistency of the brand.

It is going to be an easy case to maintain the luxury dream value well as long as following the model and Marketing 4Ps Management master table.

Thank you!