Marketing StrategiesMeredith Bateh

Luxury Marketing

SCAD 2009

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Overall Trends

• Appealing to a new generation: “Millenials”

• Inventory reduction

• Wider range of products and prices

• Better quality/ price ratio

Raffaele Ilardo in the Dior atelier

• Exclusivity

• Heritage:

Chanel, A/W 2009

• Customer service

Prada Store

• Collaborations

Louis Vuitton

• Appealing to New Markets

Korea

Russia

Brazil

• Online experience

• Good Deeds

Company Trends: Saks

• Reducing inventory• Cut costs• Emphasis on value and exclusivity• Introducing a private label men’s clothing

collection• Expanding Off Fifth outlet business• Software that provides info about customer

purchases and preferences

Bloomingdale’s

• Private sales announced to best clients via e-mail

• Private sale price negotiation

Etienne Aigner

• New online store: “direct communication with the brand”.

• Introducing a limited edition handbag line.

• Contests.

Gucci

• Promoting the brand’s authenticity, origins and value.

• Employees: better education and more benefits.

• They will not do any discounts.

Starwood Hotels

• Service.

• Quality.

• Sense of heritage.

• Eye on the future.

Proposition: new marketing strategies

• Quick therapy to relieve shopping stress– Will be offered in all of the boutiques.– Complimentary service for those who purchase

goods.– Services will include: leg and feet massages, mini

facials and neck, makeup touch-ups and shoulder massages.

• Devices that detect customer preferences and purchases

– Will be given to “best customers”.– Will work in all of the brand’s stores.– Will provide a more personalized shopping

experience.– Collectors items

“If you have a good product, people are buying […] But in today’s market, it’s not

ok to be good. You have to be great”, Khajak Keledjian.

“Customer service is the single most important driver of business”, Daniella

Vitale.

Sources

• Women’s Wear Daily, www.wwd.com• Stephanie Rosenbloom articles, NY Times• “Luxury Fashion Branding”, Uche Okonkwo.• Business Week, www.businessweek.com• Dior, www.dior.com• Chanel, www.chanel.com• Castelbajac, www.jc-de-castelbajac.com• Gucci, www.gucci.com

• John D. Morris, a retailing analyst with BMO Capital Markets The retailer is learning the native tongue of the new consumer, Mr. Morris said not only that you need to dangle value in the face of the consumer. It also tells you that the consumer is bored with the same old promotions. The smarter companies are going in and changing the marketing message.

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For high priced products, the successful strategy for affordable luxury is a slightly lower-quality product at a better price. Ming-Hui Huang and Roland T. Rust.