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A study on the future online marketing strategies of luxury brands in past and present pandemic situation Objective The many objective is to find marketing strategies for luxury brand using online To bring change in consumer behaver to wards online marketing for luxury in pandemic situation What strategies can bring more traffic towards luxury marketing using online Problem statement Traditionally, luxury has been defined by its physical characteristics. The difference between a luxury object and a mass-market version was highly tactile: the supple texture of fine leather bag, the right drape of a bespoke dress, the precise motion of an indicator of Geneva watch. within the presence of those objects, one cannot help but feel the mixture of elegance, exclusivity, design and craftsmanship that defines the experience of “luxury”. Therefore , the increase of the web has posed a series of unique challenges for luxury brands. they're experts at communicating their message in their stores, where the richness of the space and therefore the products can ‘speak’ in their own eloquent language, but when the merchandise itself is merely a picture on a screen, it's much more difficult to convey an expensive experience. As legions of knock-off producers know, there's nothing easier than to form a product look nice in a web photo, and since of the purchasers are rightly unimpressed by simple images. Creating a luxury experience within the digital space is a particularly difficult challenge. Effectively facing it requires creativity, ingenuity, and boldness- which may be particularly difficult for organizations steeped in tradition and heritage. The challenges facing luxury brands within the digital space are often listed down into three basic varieties. the primary of those has got to do with brand positioning: how can a brand maintain globally consistent positioning while still remaining relevant to local consumers? A
store is, by definition, in one place: one particular street in one particular city in one particular country. within the past, customers entering that store would most speak one language and convey one set of cultural expectations. Across a network of such stores, it had been easy to deliver a “global” (global + local) experience. Online, however, everything is accessible to everyone. A brand’s website may be a store serving the entire world people of all ages and genders, every nationality, every set of cultural values. the web site must now combat the responsibility of making that globally consistent position, while simultaneously leaving space for location-specific resonances. There are some ways to try to to this, except for one case study, consider Burberry- one among the leading luxury brands in digital engagement. A quintessentially British company, Burberry transformed its local origin into its global brand identity. instead of making Britishness a parochial niche alienating international customers, Burberry made its brand a call for participation to the entire world to participate in British style. The Burberry landing pages portray many variations on its heritage, showing both the classic camel trench and bright, modern reinterpretations of it, as worn by a various cast of models. during this way, Burberry avoids diffusing its brand identity by trying to be ‘all things to all or any people’, while at an equivalent time remaining highly hospitable the numerous local perspectives visitors bring back its brand. The second digital challenge for luxury brands is: how can a brand develop a compelling digital experience that enhances and enhances the in-store experience? As we'll discuss within the next post during this series, the monoband boutique remains the most touchpoint between luxury brands and their customers. Given the powerful physical appeal of the stores and products, it's extremely unlikely that e-commerce will ever usurp that status within the luxury sector. However, our research shows that the majority luxury consumers do considerable online research before choosing which brand to get , which is probably going to extend. Therefore, luxury brands must view their digital presence as a probable first point of contact between themselves and an interested buyer. That contact must be unique and memorable, but it should also resonate
Luxury industry The idea of a luxury brand isn't necessarily a product or a price point, but a mindset where core values that are expressed by a brand are directly connected to the producer's dedication and alignment to perceptions of quality with its customers' values and aspirations. Thus, it's these target customers, not the merchandise , that make a luxury brand. Brands that are considered luxury connect with their customers by communicating that they're the highest of their class or considered the simplest in their field. Furthermore, these brands must deliver - in some meaningful way - measurably better performance. What consumers perceive as luxurious brands and products change over the years, but there appear to be three main drivers a high price, especially when compared to other brands within its segment; limited supply, in that a brand may not need to be expensive, but it arguably should not be easily obtainable and contributing to the customers' feeling that they have something special; and endorsement by celebrities, which can make a brand or particular products more appealing for consumers and thus more "luxurious" in their minds. Two additional elements of luxury brands include special packaging and personalization. These differentiating elements distance the brands from the mass market and thus provide them with a singular feeling and user experience also as a special and memorable "luxury feel" for customers. However, the concept of a luxury brand is now so popular that it's utilized in almost every retail, manufacturing, and repair sector. Moreover, new marketing concepts like "mass-luxury" or "hyper luxury" further blur the definition of what's a luxury product, a luxury brand, or a luxury company. Examples include LVMH (Louis Vuitton Moet Hennessy), the most important luxury good producer within the world with over fifty brands, including Louis Vuitton, the brand with the world's first dressmaker label. The LVMH group made a net income of €8.1 billion on sales of €42.6 billion in 2017. Other market leaders[citation needed] include Richemont and Kering (previously named PPR). A rather small group as compared , the rich tend to be extremely influential.[citation needed] Once a brand gets an "endorsement" from members of this group, then the brand are often defined as a true "luxury" brand. An example of various product lines within the same brand is found within the automotive industry, with "entry-level" cars marketed to younger, less wealthy consumers, and higher-cost models for older and more wealthy consumers.[citation needed] The advertising expenditure for the typical luxury brand is 5-15% of sales revenue, or about 25% with the inclusion of other communications like PR , events and sponsorships. The idea of a
luxury brand isn't necessarily a product or a price point, but a mindset where core values that are expressed by a brand are directly connected to the producer's dedication and alignment to perceptions of quality with its customers' values and aspirations. Thus, it's these target customers, not the merchandise , that make a luxury brand. Brands that are considered luxury connect with their customers by communicating that they're the highest of their class or considered the simplest in their field. Furthermore, these brands must deliver - in some meaningful way - measurably better performance. What consumers perceive as luxurious brands and products change over the years, but there appear to be three main drivers: a high price, especially when compared to other brands within its segment limited supply, in that a brand may not need to be expensive, but it arguably should not be easily obtainable and contributing to the customers' feeling that they have something special; and endorsement by celebrities, which can make a brand or particular products more appealing for consumers and thus more "luxurious" in their minds. Two additional elements of luxury brands include special packaging and personalization. These differentiating elements distance the brands from the mass market and thus provide them with a singular feeling and user experience also as a special and memorable "luxury feel" for customers. However, the concept of a luxury brand is now so popular that it's utilized in almost every retail, manufacturing, and repair sector. Moreover, new marketing concepts like "mass-luxury" or "hyper luxury" further blur the definition of what's a luxury product, a luxury brand, or a luxury company. Examples include LVMH (Louis Vuitton Moet Hennessy), the most important luxury good producer within the world with over fifty brands, including Louis Vuitton, the brand with the world's first dressmaker label. The LVMH group made a net income of €8.1 billion on sales of €42.6 billion in 2017. Other market leaders[citation needed] include Richemont and Kering (previously named PPR). A rather small group as compared , the rich tend to be extremely influential.[citation needed] Once a brand gets an "endorsement" from members of this group, then the brand are often defined as a true "luxury" brand. An example of various product lines within the same brand is found within the automotive industry, with "entry-level" cars marketed to younger, less wealthy consumers, and higher-cost models for older and more wealthy consumers.[citation needed] The advertising expenditure for the typical luxury brand is 5-15% of sales revenue, or about 25% with the inclusion of other communications like PR , events and sponsorships.
Theoretical statement
Industry structure changes over time, and is not static. Over time, buyers or suppliers can become more or less powerful. Technological or managerial innovations can make new entry or substitution more or less likely. Changes in regulation can change the intensity of rivalry, or affect barriers to entry. Choices by competition, such as new pricing or distribution approaches, can also affect the path of industry competition.
consumer perception of luxury goods
Luxury goods can over various benefits to their consumers due to their high material quality and excellent craftsmanship they can bring a number of functional benefits they can last longer or perform better than mass products of a similar type they can arouse a number of different feelings, emotions, e.g-bring joy from the purchase and use of such a product, raise moral opposition (by judging luxury products as excessively superfluous), evoke aesthetic swoon, emotional exultation, etc. they can raise social recognition e.g.: they can serve as a tool to improve social status, they incline affiliation to affluent consumers, or thanks to their rarity, indicate belonging to a group of a“happy few” they can raise the consumer’s self confidence through the positive emotions associated with the purchase or through social recognition the substantial cost for this palette of functional, social and individual benefits associated with luxury goods or services is the high price. The complex, abstract, symbolic and subjective nature of the luxury con-struct makes capturing the luxury value perception difficult as the value components are intertwined. they influence each other, change over time and situation and are difficult to operationalize. Not only can various value types co-exist within a single consumption experience, but they are also interrelated. Luxury goods have the possibility of raising the social status of the customer (the social value component). At the same time they put a person in a good mood and raise his/her self-esteem and confidence level (so they fall into the individual, hedonic, emotional category of value). Some value categories, like spirituality, aesthetics or ethics [Holbrook and Morris 1999, 2006], although important when measuring luxury goods’ perception, are hard to divide and operationalize. Literature review Review of literature shows that there's growing interest within the process by which marketing strategy is developed. This study investigates the performance implications of
using multiple organizational approaches to the event of selling strategy while that specialize in the 4Ps elements of selling mix. Specifically, we developed and test a model in which implementation of marketing mix elements mediates the relationship between number of marketing strategy approaches in reference to adaptation and standardization pursued and firm performance. Prior studies of the implications of selling strategy development have focused almost exclusively on direct financial performance, with inconsistent results. Ramanujam and Venkatraman discuss the limitation of focusing on performance as an outcome variable, posting that any causal relationship between planning characteristics and organizational performance may be tenuous at best. Menon et al. adds that researchers have attended investigate formulation and implementation issues separately instead of as integrated components. Therefore, during this study we posit that the success of selling strategy implementation is due to best formulation strategy. This is an important overview because the primary objective of the strategy formulation process is to improve the marketing strategy implementation and it results in superior firm performance As stated by Noble and Mokwa , “Marketing strategies only end in superior returns for a corporation once they are implemented successfully.” Therefore, we argue that the persistence of revisiting through evaluation process the formulation and implementation of selling strategy regarding the connection between strategy-making and performance. Marketing strategy implementation defines the process that turns plans into actions. While Farjoun refers to implementation as simply “the execution of strategy”. Constructing on these various implementation perspectives, we define implementation during this study because the company’s competence in performing, directing, and evaluating its marketing strategy. The link between marketing strategy implementation and firm performance is that the focus during this study. The not matching scenario of supply and demand are constantly changing and therefore the strategic windows within the market arise as a results of changes within the behaviors of both targeted segments and the market as a whole. Firms can strategically maximize these market opportunities by delivering either superior customer value due to their ability to segment the market and supply differentiated offerings to those targeted market segments, by producing goods or services at lower relative costs due to their ability to regulate and evaluate their marketing program. This means that, firms that successfully implement their marketing strategy should enjoy greater performance because they're more likely to profit from market opportunity.
