Luxury Branding- Understanding Luxury Branding

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MICA (P) No: 189/0212011 tssN 0129-6612 Editor-in-Chief Sundeep R. Muppidi Deputy Editor Pradeep Krishnatray Associate Editor Sidney Yap Yee Lan Editorial Advisory Committee Alan Knight Ang Peng Hwa Daya Thussu )aved Jabbar John Lent Srinivas Melkote Vinod Pavarala MEDIA ASIA is published quarterly by the Asian Media lnformation and Communication Centre (AMIC), and the Wee Kim Wee School of Communication and Information, Nanyang Technological University (!(/KWSCI-NTU). The opinions expressed by the authors do not necessarily reflect the views of AMIC, VKWSCI-NTU or of the organisations with which they are associated. For correspondence: AMIC, ]urong Point PO Box 360 Singapore 916412 Tel: (65) 67927570 Fax: (65) 67927129 Subscriptions: [email protected],sg Submissions: [email protected] Website: www.amic.org.sg Subscription . Singapore & Malaysia: SGD 65.00 . Asia Pacific: SGD 75.00 . USA, North & South America, Europe, Japan, Australia & NZ, Middle East and Others = USD 75.00 VOLUME 38 NUMBER 3 2OII Media Asia an Asian Mass Communication Quarterly FEATURES ARTICLES Understanding Luxury Branding: A Conceptual Framework Aarzoo Daswani and Varsha Jain ............. .... Itf The Great Indian Television Soap Opera: Issues of Identity and Socio- cultural Dynamics Ruchi |aggi. ............r4O An Analysis of Violent Content on Chutti TV in Tamil Nadu, India S. Hemamalini, I. Arul Aram and Premalatha Rajan ..........................16 Indian Media Framing of the Image of Muslims: An Analysis of News Coverage of Muslims in English Newspapers of India Usharani Narayana and Priti Kapur.......... ........................ 153 Population Control and HIV/AIDS: Politics of Sexual Health in India Ravindra Kumar Vemula ..........163 Early Experience of Mobile Telephony: A Comparison of Two Villages in Papua New Guinea Amanda H. A. Watson.................. .................17O Cultural and Media Practices on Health and Family Planning of Selected Urban Poor Communities Lourdes M. Portus... .................. l8f

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Luxury Branding

Transcript of Luxury Branding- Understanding Luxury Branding

MICA (P) No: 189/0212011tssN 0129-6612

Editor-in-ChiefSundeep R. Muppidi

Deputy EditorPradeep Krishnatray

Associate EditorSidney Yap Yee Lan

Editorial Advisory CommitteeAlan KnightAng Peng HwaDaya Thussu

)aved Jabbar

John LentSrinivas MelkoteVinod Pavarala

MEDIA ASIA is published quarterlyby the Asian Media lnformation andCommunication Centre (AMIC), and theWee Kim Wee School of Communicationand Information, Nanyang TechnologicalUniversity (!(/KWSCI-NTU). Theopinions expressed by the authors do notnecessarily reflect the views of AMIC,VKWSCI-NTU or of the organisationswith which they are associated.

For correspondence:AMIC, ]urong Point PO Box 360Singapore 916412Tel: (65) 67927570Fax: (65) 67927129Subscriptions: [email protected],sgSubmissions: [email protected]: www.amic.org.sg

Subscription. Singapore & Malaysia: SGD 65.00. Asia Pacific: SGD 75.00. USA, North & South America, Europe,

Japan, Australia & NZ, Middle East andOthers = USD 75.00

VOLUME 38 NUMBER 3 2OII

Media Asiaan Asian Mass Communication Quarterly

FEATURES

ARTICLES

Understanding Luxury Branding: A Conceptual FrameworkAarzoo Daswani and Varsha Jain ............. .... ItfThe Great Indian Television Soap Opera: Issues of Identity and Socio-cultural DynamicsRuchi |aggi. ............r4O

An Analysis of Violent Content on Chutti TV in Tamil Nadu, IndiaS. Hemamalini, I. Arul Aram and Premalatha Rajan ..........................16

Indian Media Framing of the Image of Muslims: An Analysis of NewsCoverage of Muslims in English Newspapers of IndiaUsharani Narayana and Priti Kapur.......... ........................ 153

Population Control and HIV/AIDS: Politics of Sexual Health in IndiaRavindra Kumar Vemula ..........163

Early Experience of Mobile Telephony: A Comparison of Two Villages inPapua New GuineaAmanda H. A. Watson.................. .................17O

Cultural and Media Practices on Health and Family Planning of SelectedUrban Poor CommunitiesLourdes M. Portus... .................. l8f

Understanding Luxury BrandingA Conceptual Framework

The origin of luxury goes back to the ancient times. People indulge in luxurious products to satisfy theirintrinsic and extrinsic needs. The sales of luxury goods in 2010 are expected to grow by four percentto 'l 58 billion Euros.The better spending by the aspirational and young buyers, and the increase inmiddle class disposable income have given rise to luxury goods trade. However, the consumption ofluxurious goods varies with consumers'taste and choices. They define and express luxury brands indifferent notations depending on their profile and fundamental values. Moreover, consumers changingpreferences are reshaping the luxury meaning. This paper figures out the multi-dimensional attributesof luxury and identifies the changing perception of consumers in today's times. The paper builds a

conceptual framework that can help the marketers in forming the luxury brands communicationstrategies with which they can construct groundbreaking rules for their brand.

Luxury is for everyone and different for everyone.

- Pam Danziger

uman beings have desired luxury goods of anykind since their creation (Tungate, 2010). Luxuryin the 17th century was found in commodities

such as rare pearls, crystal, perfumes, and spices from theCaribbean, butwith the passage of time and with the riseofworld trade, the 19th and early20th century associatedluxurywith products of great craftsmen, superior qualityand customer service (Berthon et al,, 2009).

Today, the luxury market covers a wider customerbase of both affluent and non-affluent customers, allcraving for upscale products and services (Hader, 2008).They wish for products that would enhance their qualityof life and show their outward appearance (Chadha& Husband, 2007). This practice is found to remainprevalent in all cultures and countries, irrespectiveof economic situation (Okonkwo, 2009). People areconstantly indulging themselves in buying somethingexclusive and more expensive (I(apferer & Bastien, 2OO9).

The motivation behind uplifting the luxury sector is toestablish relationships with the exclusive brands andbuild high-trust experiences (Hadea 2008).

CoNsurvrcn SHrpr rN THE Luxuny MnnxsrSociety is facing a shift with changing consumerbuying habits and tastes (Gupta, 2009). Consumers are

Aarzoo Daswani is Research Associate at the Mudra Instituteof Communications Research in Ahmedabad, India. Varsha

fain is Research Fellow and Head, Division of IntegratedMarketing Communication at the Mudra Institute ofCommunications Research in Ahmedabad, lndia.

Aenzoo DasweNrVnnsHe ferru

more sophisticated, broadly educated, well-travelled,adventurous, more enlightened and desire products forpersonalisation (Truong et al., 2008; Silverstein & Fiske,2003). Theywant to indulge and pamper themselves withluxury products (Chen & Sethi, 2007). They are moreinto material possessions and their consumerism definesa way of life that places higher importance on status andsocial image (Sengputa, 2007).

Besides, the economic recovery in most westerncountries and the unshackled economic growth inSoutheast Asian nations are the main factors that haveprovided wheels to luxury products sales (Truong etal., 2008). Evidently, there exist a positive relationshipbetween economic growth and increased expendituresfor luxuries (Eng & Bogaert,2010). The luxury marketis at a new level with the increase in the number ofglobal millionaires, greater confidence in the economyand mass consumers buying luxury (De Barnier etal., 2000). In addition, the rise in standards of living,increasing consumer product knowledge and desire tospend has given rise to luxury products trade (Vickers& Renand, 2003). Consumers today are more ready tospend a larger proportion of their disposal income onluxury goods (Nueno & Quelch, 1998). They use productprices as a means of displaying their wealth and status.More consumers are willing to pay a premium price forproducts of higher quality and bring higher status (Husic& Cicic,2009).

ConsurvrprloN oF Luxunrrs: THs lNnrexMeRxerChadha and Husband (2007) in their book The Cult of theLuxury Brand developed the spread ofluxury model thatfollows a five-stage process: (a) subjugation; (b) start ofmoney; (c) showing off; (d) fitting in; and (e) way of life.

MEDIA A5IA, VOt 38 NO 3, 20]

According to the author, Asian countries still have more

scope of growth and the future glows for luxury houses.

Indian consumers are getting ready-to acquire the taste

of luxury as they move into the'start of money' stage ofluxury consumption. This is because of India's economic

growth, the masses buying Westernised goods and the

indulgence of elites in consuming luxury. With luxurybrands getting a warm welcome in India, it is considered

the next major luxury market after China' Furthermore,with the rise in brand-sawy consumers, India is already inthe process of moving into the 'show off ' stage (wherein

consumption symbolises wealth and displays economic

status). The exposure to global lifestyles and surplusincome has given Indian consumers a higher and global

aspiration to acquire luxury products (Sengupta, 2007).

According to McKinsey Global Institute's forecast,India's total consumption will rise from Rs. 17 trilliontoday to Rs. 70 trillionby 2025 (Sengupta, 2007)' TheIndian luxury market holds a big growth potential.The number of Indian middle class population by 2025

is expected to grow from 5 Percent to 41 percent to

become the world's fifth largest consumer market. The

emerging middle class is upgrading its quality of life. lndiarecorded an annual growth of 25 percent in the luxurygoods market in 2006 and the number of high net worthindividuals increased by 20.5 Percent (Eng & Bogaert,

20i0). The growth implies that a larger number of Indianmiddle class are able to afford more luxury goods than

ever before (Chadha & Husband, 2007).

The Indian luxury markets are riding far with the

growingvolumes and there is assurance of more' A survey

conducted by AT Kearney revealed that the Indian luxurymarket is likely to grow at an annual rate of 28 Percentin the next three years and its current worth is US$377

million. Thus, Indian markets are not only today's market

but also the future market (Atwal & Khan, 2008). lt has

been considered as a "promising territory for the futureand a long-term player" (Eng & Bogaert, 2010).

The formation of different levels of luxury, ranging

from ultra luxury to affordable, has given rise to the baby

boom generation-a "new luxury" generation (Atwal

& Khan, 2008). The Asian population among the age

group from 20 to 40 make the greatest contribution tothe economic growth (Wong & Zaichkowsky' 1999).

This baby boom generation has a passion for self-

indulgence and maintain their individualistic type ofluxury consumption (Atwal & Williams, 2009). They

earn well and readily spend on products that provide

them with comfort and pleasure (Atwal & Khan, 2008).

The consumer seems to be looking for combination ofstyles and objects that best signals their personality and

image (Truong et al., 2008). The new luxury market isviewed at top sphere (Nazerali, 2007)' In other words,

consumption speed implies that luxury is for one and all(Atwal& Khan,2008)'

CoNcspruALtsING LuxunY

The concept of seeking happiness via consumption firstoriginated in the westand laterspread to the restoftheworld(Wong & Ahuvia, 1998). Consuming high-end products

is universal practice. However, the social, economic and

symbolic values differentiate consumers to adopt different

habits, beliefs, lifestyle and tastes, and connotes differentconception of self (Silverstein & Fiske, 2003). Broadly' bothEastern and Western cultures examine self in two ways:

private/inner self (including emotions, desires, personal

values, memories, preferences etc.) and an outer/ public

self(including social role, outer appearance, etc'). They are

also known as independent and interdependent concepts

of self, The independent concept of self is rooted in the

Western culture while the interdependent concept of self

is more applicable tothe SoutheastAsian countries (Wong

& Ahuvia, 1998) (Figure 1).

Conspicuous consumption

Veblen's Theory of the Leisure Class first described

the concept of conspicuous consumption. The authordetermined that the purely conspicuous consumer derives

satisfaction from the audience's reaction to the wealth

displayed and not from the value of the product itself'The cost of purchase becomes more significant than the

functional use of product. The only goal behind theirexpensiv€ purchase is to seek personal status and prestige'

FIGURE iConcept of self in'Western and Eastern Countries

Fs--.,d-r"bl Fffi"* IfE'""r-,f io.'-q F.'*"d I m"".q FEru'*A;lI vatues

I

Belief of Eastern consumerpertaining to luxury brands

Belief of Western consumerpertaining to luxury brands

These products provide social visibility and acceptancein their reference group. Expensive possessions are solelyfor external reasons. Luxury brands ownership conveystheir social image and personal taste (Mason, 1993).

In addition, Veblen identified that conspicuousconsumption seek the luxurious objects for two reasons:to show that they are (a) members of the upper class;and (b) distinguish themselves from the lower class. Theauthor termed the first motive'pecuniary emulation'andthe second'invidious comparison' (Twitchell, 2002).

The many meanings of luxuryThat the same luxury good can mean differentthings at different times to the same or differentpeople. - Berthon et al., 2009

Several researchers have demonstrated the meaning ofluxury in different context. The reason is that differentsets ofconsumers perceive luxury differently. W'hat seemsluxury to one may look ordinary to another. Wiedmannet al., (2007) precisely termed luxury to products andservices and stated that luxury concept takes differentforms for different people depending on the mood andtheir experiences. As a whole, luxury is a subjective,relative and multi-dimensional concept.

Luxury represents exclusivity. It is also termed asIavishness, magnificence, comfort, sumptuousness,opulence and extravagance (Khan, 2006). Luxuryresembles quality, beauty, sensuality, exclusivity,history, high price and uniqueness (Berthon et al.,2009). Exclusivity enhances consumers' preferencesfor a brand and its limited production invokes respectand prestige. In addition, people perceive higher pricesas evidence of greater quality. According to Phau andPrendergast (2000), luxury brands are those that evokeexclusiviry have a well-known brand identity, increasesbrand awareness, perceived excellent quality and retainsales level and customer loyalty. Kapferer (1998) foundthat consumers observe the beauty of the product, itsexcellence, magic and uniqueness as important criteriato like luxury brands.

A luxury brand confirms its worth with the inheritedcharacteristics. such as outstanding qualiry, excellentperformance, intrinsic features, classy looks, ensuresadmiration and gets noticed. Luxury means comfortand privilege to consumers (Danziger, 2OO4). Nuenoand Quelch (1998) suggested "luxury brands are thosewhose ratio of functionality to price is low, while theratio of intangible and situational utility to price ishigh'l The authors identified certain characteristics thatluxury brands share, that includes consistent deliveryof premium quality across product lines, a heritage ofcraftsmanship, a recognisable style or design, a limitedproduction to ensure exclusiviry a marketing programmethat combines emotional appeal and product excellence,a global reputation, association with a countiy of originthat has a strong reputation in a specific industry, anelement of uniqueness to each product, an ability to timedesign shifts when the category is fashion-intensive andthe personality and values ofits creator.

UNDERSTANDING LUXURY BRANDING: A CONCEPTUAL FRAMEWORK

In line with prior research, Dubois et al., (2001) intheir qualitative study conducted to know the consumers,broad perception of luxury identified six dimensionsof luxury, namely: (a) excellent quatity; (b) very highprice; (c) scarcity and uniqueness; (d) aesthetics andpolysensuality; (e) ancestral heritage and personal history;and (f) superfluousness. The author's explanation on thedimensions is detailed below.

Excellent qualityThe association between luxury and quality is so well-built that for some consumers, the two words are almostidentical. For them, excellent quality assures reliabilityand durability. The product or service can be trusted andthere is hardly any chance ofdefects. A luxury productcan be used forever and one gets a feeling ofeternity.

Very high priceThe cost becomes acceptable, especially when thelongevity of usage is ensured with the superior qualiryof the product. It can provide a feeling of comfort, well-being and security.

Scarcity and un iquenessScarcity is connected with the perceived excellentquality and high prices of the luxury goods. Scarcity alsoextends to its availability and usage. Most consumerscommented that truly luxury products are not availablein supermarkets. Luxury shops extend consumers withan experience that is an important source of value tomany consumers. Products uniqueness and the feelof exclusiveness is an expression that consumers feltnecessary for luxury brands.

Aest h etic s and po ly sen s ua lityLuxury products become pieces ofart and their experiencegive hedonic pleasure and touches all the senses. Luxuryproducts apart from beaufy are pleasant to hear, smell,taste or touch. Luxury is a spring ofsensual pleasure andalso adds to one's self-concept.

Ancestral heritage and personal historyLuxurious products and services must be long lastingand should incorporate traditional values.

SuperfluousnessLuxury products need not be essential for survival assome consumers feel that luxury is not necessity. It ismore intended towards a materialistic world wherepeople consume luxuryto fulfilextrinsic motives (Duboiset al., 2001).

Luxury brands as a prestige symbolHusic and Cicic (2009) noticed that the usage of luxurygoods offers prestige apart from the functional utility.Prestigious brands have a strong social function attribute.Prestige-sensitive consumers feel protected and safeowning a popular and recognised brand. Vigneron andJohnson (1999) aftempted to categorise prestige-seekingconsumer behaviour into five groups, namely: Veblen,

MEDIA ASIA,VOL 38 NO 3,2011

Snob, Bandwagon, Hedonic and Perfectionists; whereas

Dubois and others (2001) sought to identify consumer's

perception based on the attributes of luxury products'

. The Veblen effect (perceived conspicuous value):

Veblenian consumers perceive high price as an

indicator of prestige. They use prestigious brands

to impress others and gain status.

. The Snob effect (perceived unique value): Snob

consumers perceive price as an indicator ofexclusivity and always thrive to take the firstadvantage of limited productions.

. The Bandwagon effect (perceived social value):

Bandwagon consumers hardly perceive price as an

important indicator of prestige' A prestige brand

"nh"^."t their self-concept and distinguishes them

from the non-prestigious reference grouPs'

. The Hedonic effect (perceived emotional value):

Hedonist consumers place less emphasis on price

as an indicator of prestige and buys goods for oneipleasure. They are more interested in sensory

pl"utu.", aesthetic beauty and the intangiblebenefits delivered by luxury brands.

. The Perfectionism effect (perceived quality value):

Perfectionist consumers depend on their own

perception of the product's quality. They might use

price of a product as further evidence of qualiry'

In conclusion, the Veblen, Snob and Bandwagon

consumers perceive price asthe most important factor, with

a higher price denoting greater prestige' Their purchase of

rare products helps in seeking status among the reference

group. Hedonists and Perfectionists are more interested

in pleasure derived by consuming luxury products rather

than price, product characteristics and performance' They

consume what they want to based on their own iudgment,while to them price exists only to scan the quality of the

product (Vigneron & )ohnson, 1999).

Luxury as a social-status sYmbol

What has not disaPPeared on the other hand is

Man's need for some form of social stratification,which is vital to him; he needs to know his place

in society. - Kapferer & Bastien, 2009

Luxury imitates an owner's extended image mainly

through showing off success and obtaining high social

status (Eng & Bogaert' 2010)' Moreover, it is a common

practice in communities around the world that the level

of status is measured through the product's socialbenefit

offerings (Eastman et al., 1999). Consumers indulge in

luxurytrands consttmption to attain social status and

hardly focus on the products'economic or physiological

utiliry. They perceive luxury consumption denotes who

they areandwhatsocial standingtheyhold (Husic & Cicic'

2009). Individuals are constantly in a social comparison

process wherein a desire to distinguish oneself from

others arise (Phau & Prendergast, 2000). They opt for

societal approval and admiration through their luxury

consumption (Truong et aI.,2008). Additionally, it is also

a means of conveying one's identity and self-worthiness

134

(Eng & Bogaert, 2010). Furthermore, Truong et al', (2008)

i,rgi"tt"alnat status-laden brand purchases offer both

inil-rnal (i.e. self-reward) and external reasons (signal

wealth) and also to some extent provides public visibility'

A common notion among luxury users is that luxury

brand enhances their self-respect, self-esteem and adds

status within their reference group. Certainly, consumers

perceive social status attached with a luxury brand as an

important factor (Vigneron & )ohnson, 2004)'

Luxury brands as an aesthetic symbol

Luxury products undergo a sensorial process wherein

the understanding of signs and direction, pleasure and

satisfaction is vital. These products' inherent core values

related to symbolic, hedonistic and aesthetic dimensions'

Usually, consumers measure goods consumeddaily based

on the objects' utilitarian characteristics, while aesthetic

objects have a sensorial attraction. These objects create

an environment, provide pleasure, generate sensations

as well as sentiments. They appeal emotionally and are

analysed or interpreted on consumers'personal criteria'

Consu*ers seleci luxury products comparing the object

with norms, history (that is designer label, signature

features) and the social meaning attached, the originality

of products' specific attributes (that is shape, design'

colour, composition), and the presentation and its distinct

variants. Consequently, even though objects utilitarian

and functional dimensions are part of the perception

process, the symbolic, subjective dimension hold an

importairt position (Lagier & Godey, 2007)'

Luxury brands' value PercePtion

The benefits that consumer derive from luxury brands

attributes include Functional, Hedonic, Symbolic and

Experiential elements. The Functional element connotes

products' physical and service attributes' It is about

what the object does rather than what it represents' It

revolves solely around products' performance, quality

and craftsmanship. The Hedonic element refers to the

buyer's intention of consuming goods mainly for their

own pleasure. It is related to internal and private needs'

The Symbolic element satisfies individuals' needs of

gaining social recognition. lt is related to status, position,

ielf-enhancement and self-concept. Experientialism is

associated with the consumer's desire to seek sensory

pleasure (Berthonetal.,2009;Christodoulidesetal',2009)'

Experiencing luxurY

Luxury has taken new forms with consumers thriving to

experience luxury goods over just acquiring them' Their

experience and perception of luxury have been refined

and are still reshaping' Their definition of luxury focuses

on the experiences and feelings that can be purchased

(Danzigei 2007). While 'old' luxury was about stuff,

'new' lux,rry is about experiencing (Morrison, 2005)'

However, there exists a dual nature of luxury, namely

new and old luxury. The new luxury is riding on the

'experience economy' while the old luxury still focuses

on the attributes, qualities and features of the product

and the associated status and Prestige with it (Danziger,

2007). Moreover, new luxury consumers focus on buyingproducts that express meaning and provide unique

experiences. Consumers gain greatest luxury thrillsthrough experiencing it ('What every marketer needs to

knowabouttheluxuryconsumerl 2004). Thus, newluxuryis purely intrinsic and consumer-centrically (Danziger,

2004) (Figure 2).

Consequently, many luxury brands organisations

are taking initiatives to introduce experiential luxurymarketing strategy. They are creating fantasies, feelings

and fun around their brands. Moreover, the purchasing

experience also incorporates a set of intangible values, a

series of memorable events and consumer engagement

at a personal level (Atwal & Williams, 2009).

CourrruNrcATloN SrnnrEclns FoR LuxuRvBReNns

Luxury is something that everyone wants 3ndnobody needs. - Managing Luxury BrandGrowth,2006

Vigneron and fohnson (2OO4, p' 486) coded Kapferer(1997) definition of luxury that stated "luxury defines

beauty, it is art applied to functional items. [...] That

is why luxury management should not depend on

customer expectations: luxury brands are animated by

their internalprogramme, theirglobalvision,thespecifictaste which they promote as well as the pursuit of theirown standards ..."

Truly, luxury brands marketing strategies are not in

synergy with that of conventional markets. A luxury

brand has to discover its own marketing rules. Luxuryis a qualitative and not quantitative concept. Luxurybrands are not launched, rather they are progressively

built by managing the resources in a very specific

way. They should speak a story (l(apferer & Bastien,

2009). The luxurious brand advertisement creates a

dreamworld around the brand whereas a conventional

advertisement focuses on selling the product. Luxurybrands advertisement communlcates the magical story

and attempt to deliver enchanting hopes, wishes and

dreams to the consumers (Figure 3).

I(apferer and Bastien (2009) also suggested some

marketingideas for luxurybrands. The authoropined that

UNDERSTANDING LUXURY BRANDING: A CONCEPTUAL FRAMEWORK

FIGURE 3

Conventional versus luxury communicationstrategies

Sale of productlmagination.

dreams,experience,

luxury brands needed to focus on creating a brand identitvrather than looking at positioning itself among other

brands. Luxurybrand characteristic is such that it should

state, "This is what I aml and need not compare itself

with the competitor's brand. The author also suggests that

luxury brands preserve their standing and should always

dominate its client's mindshare. Luxury houses should

resist consumers from getting too involved in shaping

the brand, as the place where the craft of magic creation

occurs should remain a mystery. Moreover, luxurybrandsare like a reward and its inaccessible attributes cultivatean even greater desire to own them. This is the reason

for which luxury brands should set a necessary obstacle

and go beyond the masses reach. The obstacle created

can be of financial, logistical (find the shop) or time (u'ait

period). Furthermore, luxurybrands, instead of following

traditional market strategy (decrease in price results in

increase of demand), pursue the strategy of increasing

price continuously to increase the demand. This strategy

works well for luxury brands as the fact is that the price

factor is crucial in attracting people's attention and also

increases the desire to possess high-end products. Thus,

it becomes all the more important for luxury brands to

live up to its rePutation so that consumers perceive itworthwhile to spend that amountof money. In conclusion,

product excellence and price, the pre-requisite ofluxurl'brand must be carefully handled, as these factors can

play a major role in changing consumer mindset. Luxurvbrands success also lies in spreading its value facets and

awareness to a wider range ofconsumer segment than iustthe target group as the brand familiarity would generate

a desire in them to buy the brand in future.

FIGURE 2

Changes in the meaning of luxury brands

Con su m e r- cen t ri(

MEDIA ASIA, VOL 38 NO 3, 201 ]

Adding to the concePt, Keller (2009) outlined i0characteristics of luxury brands that lay the foundation

on how to market them. This includes maintaining a

premium image, which is intangible and aspirational' Allihe marketing programmes of luxury brands must align

to ensure product qualiry and service, pleasure purchase

and consr.rmption experiences are delivered' Luxury brand

elements can be used as driver for creating brand equity

apart from being identified with famous personalities and

participating in prestigious events. A luxury brand must

carefully control distribution channel, employ a premium

pricing strategy, manage brand architecture carefully and

must not comPete with ordinary brands' Lastly, luxury

brands must have legal protection for all their trademarks'

Similarly, Nueno and Quelch (1998) figured out design

and communications, product line, customer service and

channel management as the four keys of managing luxury

brands sttccessfully' The author suggested that the luxury

brand firms must communicate worldwide its innovative

design and thus should extract value in the marketplace'

Organising an event or indulging in other public relation

".iiuity cai generate favourable editorial comments and

contribute in obtaining a desired image'

Kellar (2009) underlines the importance that luxury

brands must invoke the brand feelings that are related

to customers'emotional response and reactions towards

the brand in their marketing programme' These feelings

are very much essential for luxury brands as they act as a

central theme in attachingthetarget audience' The brand

feelings are classified into sixtypes' These are: (a)'warmth'

feeling, which satisfies consumers'sentiments and gives

them a sense of calm and expresses warm-heartedness; (b)

'fun' feeling, which delivers joyous, playful and cheerful

experiences to the consumer; (c) 'excitement' feeling'

which generates energy, a sense of elation and a feel of

being alive among the consumers; (d) 'security' feeling'

which assures consumers of a sense of safery, comfort

and a sense of relief when using the brand; (e) 'social

approval' feeling, which provides consumers with a sense

ofbeing acknowledged and ensures favourable acceptance

in theii social circle; and (f) 'self-respect' feeling, which

invokes a sense of pride, accomplishment and enhances

one's self-concept.The first threl types ofbrand feelings are experiential

and immediate while the next three are private and

enduring.Vigneron and )ohnson (2004) in their study developed

a Brand Luxury Index (BLI) scale to measure the amount

of luxury contained in a luxury brand' The authors

suggested that when the five dimensions of the scale are

attained, it creates lasting effect for luxury brands' These

five dimensions consist of perceived conspicuousness'

perceived uniqueness, perceived quality, perceived'hedonism

and perceived extended self' Perceived

conspicuousness refers to the consumer's need of

gaining social representation and position through the

consumption of product. They perceive high price as an

indicator of luxury. Perceived uniqueness emphasises

on the exclusivity and rarity attributes ofthe brand that

generates consumers' preferences' Consumers value

ih" good, more as the possession of unique- and limited

proiucts enhances their self-image, social image and

.onu"y, personal tastes' Perceived quality emphasises

on impoitance of leadership in quality and demands

maintenance of high standard every time' Perceived

hedonism provides emotional benefits and intrinsic

pleasing properties apart from functional benefits

to the consumer. The brands must generate sensory

pleasure, aesthetic beauty, sensory gratification and

excitement. Perceived extended self-dimension helps

consumers to distinguish themselves from the non-

affluent groups and enhances their self-concept, identity

and adds to one! self-appeal. Moreover, the first three

dimensions-perceived conspicuousness, uniqueness

and quality-imitate non-personal-oriented perceptions

and ihe other two-perceived hedonism and extended

self-imitate personal-oriented perceptions (Figure

4). As a whole, the BLI scale helps in understanding

consumers'views on luxury brands. The marketers can

use this scale to compare several luxury brands and also

recognise competitive advantages. Likewise the scale

creaLs and builds brand luxury alongwith evaluatingthe

FIGURE 4

Proposed framework of brand luxury index

L Warmth

2. Fun

3. Excitement

4. Securiry

TABLE iSix Types of Brand Feelings

Sr. Brand feeling DescriPtionno. names

Calmness, warm hearted,

sentimental

Light hearted, joyous,

playful, cheerful, amused

Energised, being alive

Safety, comfort, self-

assurance

5. Social approval Appreciating, favourablebehaviour

Accomplishment, Pride,confidence

Non-personalperceptions

Source: Proposed framework ofBrand Luxury Index in

Vigneron and fohnson (200a, P.488)

6. Self-respect

ll N DF RSIAN Dl NG L! X U irY SirANDi NC, A aONa i PItlAt c RAf''1F "VO{l(

' ,:.,.. .':advantage.The turnover began when Ford became its creative director lh 1994 tnd Domeico

brous iatwalk desigqgwl ric! llth9pqsi pt.i,qg

Grjbci sold their

performance of the brand (Vigneron & )ohnson, 2004).

Furthermore, in a similar context, Deeter-Schmelz et al.,

(2000) used a PRECON scale that measures individual

differences in consumers' prestige shopping preferences

and found that image, quality, lashion, store atrnosphere

and patron status are the attributes ofthe luxury brand

that motivates consumeristn.

Tss Wonx oF LuxuRY ADvERTISEI\IENT

Branding is essential, as the heart of luxury lies increating a separate distinctior-r from the similar range ofproducts. This is exactly what the luxury advertisements

are trying to do with the means of 'telling ;r storvl The

luxury ads transform an identical object into a distinct

and extraordinary object. lt incorportrtes nleirning to

the object, adds valr-re, creates il sense of belongingness,

performs a role of br-rilding historical association and

frames magical worlds. In such cases, the differentiationdwellsvia language and imagery, notthrough the product.

To illustrate, Evian bottled water (a fungible product)advertises itself as magical lifestyle accessory and all

Evian ads showcases one pampering oneseli giving

special treatment to loved ones and projects larger than

life images. The ad signals that holding an Evian bottle

is like waving a wand (Twitchell, 2002).

The advertisement should ernphasise on the creativity,

the brand name, the institution that owns it and on the

product itself (Nueno & Quelch, 1998). Thus, by large,

it seems that the art of luxury brand marketers lies in

building a dream world and conveying the ultimate

experiential experiences in consumer's minds. Ernst

Lieb, CF.O of Mercedes USA puts it as: "if I can get a

customer interested today in our ne\\' product, that is a

good thing, because in three Years, rt'hen he is readv to

buy again, he'll buy our product" (Kapferer & Bastien,

2009).

CoNcrusloxT'he concept of luxurv has been u'ith us from ancient

times. Luxur,v is all about authenticitl', unusualness,

depth, meaningl, longevity, timelessncss, heritage, fine

details, delight and superior qualitl'. People's desire to

distinguish one from others exists, irrespective ol'tl'leirplace of origin. They indulge in luxurious brands to satisfv

their functional, social and s,vmbolic needs. Cotrsunlers

ma1' defirre luxurl' brands in diffcrcnt expressions but

ultimatell', their common interest lies in possessine these

brands lor satisfying their intrinsic and extrinsic needs.

They readily overcome the accessible obstacles created

by the luxury brand to dentonstrate their personal taste

and style.'fhe pleasure that thel'derive from the purchase

of the product is important rather than the price of the

product. The usage of prestigious brand is also a means ofdisplaying their u'ealth. Luxury brands are like treasures

to the consumer and when they Possess them' the,v feel

special and are truly delighted. After all, luxurv is all

about reaching to the peripher.v, to the peak and cven

going against the basics.However, with changing times, the meaning of luxurv

has also changed as people are getting into experiencine

luxurious brands. Thel' look for intrinsic pleasure,

ernotional benefits and are driven torvards new needs and

MFDIA ASIA,VOL 38 NO 3,20]

desires. Knowing the consumers' intention' luxury houses

iuu" "lr."dy

rtaled using experiential Iuxury marketing

rit"i"fi"t for their bran-ds' They provide experiential

.rrd .Jns.,mer-centrically experiences to their clientele'

Overall, one thing is certain, luxury brands strategies

differ from conventional marketing as luxurious brands

cr""t" a dream world around the brand and hardly focus

on tnu sale of product or commodity' Besides' a deeper

r.rnd"rrt"r,din j into th" cottcept also highlights that luxury

is no more re-stricted to a rich person's enjoyment but

also belongs to an ordinary Person's destiny' I{oreovet

it seems tilat the future oi h'rxury brands is bright and

expected to grow at.a much faster pace'

Thus, thelicture is clear that luxury houses may have

to continuously upgrade their product and marketing

,ir"t"gi". to k""p .,p *itt ttte global demand and changing

.onrrr"rnu, preferences. The rules of luxury marketing are

*o." fo."ign and fundamentallydifferent' The marketers

n"ui ,o piovide both intrinsic and extrinsic values to

the consumer wherein intrinsic value includes unique

experience, feelings and emotions' purchase pleasure'

memories and desire; and extrinsic value includes product

i;;;t"t, price, qualiry status and prestige' The brand

i;;;; "t"l"d should be both premium and inspirational'

The-communication strategies should be such that it

invokes brand feelings' The brand can focus on creating

FIGURE 5

Conceptual framework of luxury branding with its

communication strategies

its own unique identity and should not compare itself

*l,f,,f,u.o-petitor's brand' A luxurybrand should create

"i."tt"ty.Ustacles, for example' in financial' logistic and

time terirls. This strategy is important as the-exclusivity

and rarity element generates positive preterences rn

.onru-"r, towards the brand' Luxury obtains a status

ur,i pt"ttig" tymbol due to the associated premium price

with it. So it becomes necessary for luxury brands to

consistently maintain a premium pricing strategy' The

iu*"ty houses should also try to reach the.prospective

.or,ro-"r, "part

from the existingones' This is important'

as the famiiiarity with the brand would inspire the

prospective consumer to purchase the brand' The luxury

t.ani should communicate the same message in different

modes of communication to gain long-lasting effect on

the consumers as a consistenimessagebuilds credibility

amongthe consumers' In addition' Iuxurybrands should

introduce innovative designs and products to reach

Jlif".ur,, types of cons""'"i by using innovative modes

oi.o*-.,nications. The luxury advertisement should

communicate the magical story and deliver enchanting

i#t, *itn"s and drJams to the consumers (Figure 5)'

RnrnnnNcns

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Extrinsic- Features

- Price

- QualitY- Status and Prestige

Intrinsic- Unique exPerience

- Feeling and emotion- Purchase Pleasure- Memories* Desire

+ Focus on creating brand identitY

. Evoke brand feelinq

t Premium Pricinq1- ProsPective

+ Consumer

' Consistency in all marketing programmes

f-- Premiumt Brand image --------i- lnspirational

r- Producl+ lntroduce innovation -n- Modes of communicalion

+ Advertisement can create a dream world

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