Social media for luxury brands 2012

Social Media for Luxury BrandsyJanghyuk Lee

Associate Professor of MarketingKorea University Business School

http://biz.korea.ac.kr/professor/jangleehttp://www.facebook.com/jangleeMKT

(Internet marketing open course)

Gucci on the Internet

Gucci added commerce function to its web site from which Gucci’s customer could purchase directlycustomer could purchase directly.It reduces experiential benefit of shopping off-line and does not discount price. Who will purchase Gucci web site?

Main target: customers (probably who are used to buy luxury brand products and do not have time to enjoy shopping experience).

© 2012, All rights reserved. Janghyuk Lee 22

Why Social Media?Enhancing Value for Customerg

Value for customer (customer perceived value)B fit C tBenefit – Cost

Functional, symbolic, experiential benefits (CW Park 1987)Price, opportunity costpp y


Why Social Media?Social Media & Brand Value

Based on Twitter transaction data (Dec 2011 for two weeks), Twitter activities such as the number of users tweeted or exposed to ‘brandactivities such as the number of users tweeted or exposed to brand keyword’ tweets and the average volume of tweets are highly correlated with the brand value. (the case of consumer electronics)

Correlation

(source: Interbrand, NiBD Lab)


Correlation Coefficient

Why Social Media?Enhancing Symbolic Benefitg y

2 hours of F1 racing is too short for Ferrari fans!


Why Social Media?Enhancing Symbolic Benefitg y

As more people interact with a brand, symbolic benefit for the brand increasesincreases.In case Ferrari, the large number of its fans (non buyer) is one of key assets compared to similar luxury brand Maserati less performing on SNS.

Facebook Performance


Why Social Media?Enhancing Experiential Benefitg p

Nike tries to keep in touch with its customers and prospective ones through various channels notably smart phone and game machine inthrough various channels notably smart phone and game machine in order to enhance their experiential benefit through customer – company interaction.


Why Social Media?Impact of Mobile Internetp

Mobile internet outperforms fixed internet:I t t ( l b t t k )Instant usage (e.g., always on, between tasks)Context based customized service (e.g., location info)Ubiquitous coverage

Fast penetration


What to Do?Use Multiple Media Interactively!p y

Old spice ran ‘Your man could smell like’ campaign by integrating ‘Twitter’ and ‘Youtube’ as well as TV ad.and Youtube as well as TV ad.

Number of videos made: 180+Number of video views: 5.9 millionNumber of comments: 22 500Number of comments: 22,500

© 2012, All rights reserved. Janghyuk Lee 99http://www.youtube.com/watch?v=_-fLV28SkZ8

What to Do?On & off-line integrationg

As a part of ‘Happiness’ project, Coca-cola Korea installed a dancing vending machine at a trendy place in Seoul which attracted not onlyvending machine at a trendy place in Seoul which attracted not only shopping mall visitors but also more than 1 million page views on YouTube.


http://www.youtube.com/watch?v=DgtijpUNKGo

What to Do?Create a Theme to Share and Dominate it!

Nike ‘True City’City guide of 6 major citiesIn 1 month of campaign, Google

search 1.3M, App D/L 140K ( # )(iTunes store #1 in Europe)

Smirnoff ‘Night Life Exchange’

http://www.youtube.com/watch?v=Qet4NGswKfA

g g

Where were you?Unique experiences from 14 countries


Offering invitation to other countries’ events

http://www.youtube.com/watch?v=wWlXbZZ3ALA&feature=relmfu

What to Do?Find Topic Specific Influencers and Communicate with them!p p

Hyundai & GenesisTweet: 3 775Tweet: 3,775User: 923,458

Lotay Yang @lotayLotay Yang @lotay• Philanthropist, founder of black card circle• lotay.com• 71,485 followers


• Based in California

(source: NiBD Lab)

What to Do?Find Topic Specific Influencers and Communicate with them!p p

LexusTweet: 162,379,User: 7,511,689

Hiroko Tabuchi @hirokotabuchi• New York Times reporter in Japan• Pulitzer award finalist 2011

1 2 f ll

© 2012, All rights reserved. Janghyuk Lee 13(source: NiBD Lab)

• 55,152 followers• Based in Tokyo

Check-Up List

Mobilizing new media?M bil b t hMobile web, smart phone appOff-line activity integration (e.g., geo tagging, NFC)SNS

How are they interlinked?Center & peripheral

Customer experience measurement?Customer experience measurement?EasyEnjoyableUseful

Aligned with internal CRM database?
