Post by Julien Marteau ✦ Marketing / Business Leader

𝗛𝗢𝗪 𝗧𝗢 𝗚𝗥𝗢𝗪 𝗬𝗢𝗨𝗥 𝗕𝗥𝗔𝗡𝗗… 💹 𝗟𝗲𝘀 𝗕𝗶𝗻𝗲𝘁, 𝗠𝗮𝗿𝗸 𝗥𝗶𝘁𝘀𝗼𝗻 and other Marketing Gurus have just released a brilliant piece of work on how to 𝗴𝗿𝗼𝘄 𝘀𝗺𝗮𝗹𝗹 𝘀𝗶𝘇𝗲𝗱 𝗯𝗿𝗮𝗻𝗱𝘀, by embracing the latest thinking in 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀, 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗼𝗳 𝘆𝗼𝘂𝗿 𝘀𝗺𝗮𝗹𝗹 𝘀𝗶𝘇𝗲 and harnessing the 𝗽𝗼𝘄𝗲𝗿 𝗼𝗳 𝗔𝗜 and 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻. I vividly encourage you to read the full report by clicking on link below but here are some key nuggets relevant to the Luxury industry. 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗼𝗳 𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗟𝘂𝘅𝘂𝗿𝘆 𝗕𝗿𝗮𝗻𝗱𝘀 (𝗯𝘆 𝗟𝗲𝘀 𝗕𝗶𝗻𝗲𝘁): Luxury brands face limitations because only a small fraction of consumers are willing to pay premium prices (e.g., $1,000 for a bottle of whiskey or $10,000 for a handbag). Global Reach and Tiered Pricing: ✔️ 𝗧𝗼 𝗴𝗿𝗼𝘄, 𝗹𝘂𝘅𝘂𝗿𝘆 𝗯𝗿𝗮𝗻𝗱𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗲𝘅𝗽𝗮𝗻𝗱 𝗴𝗹𝗼𝗯𝗮𝗹𝗹𝘆, 𝗮𝘀 𝗽𝗿𝗲𝗺𝗶𝘂𝗺 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗿𝗲𝘀𝘁𝗿𝗶𝗰𝘁𝘀 𝘁𝗵𝗲𝗶𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗵𝗮𝗿𝗲 𝗶𝗻 𝗮𝗻𝘆 𝗼𝗻𝗲 𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻. ✔️ 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝘁𝗶𝗲𝗿𝗲𝗱 𝗽𝗿𝗶𝗰𝗶𝗻𝗴: 1️⃣ 𝗛𝗶𝗴𝗵-𝗲𝗻𝗱 𝗰𝗼𝘂𝘁𝘂𝗿𝗲 𝗼𝗿 𝗯𝗲𝘀𝗽𝗼𝗸𝗲 𝗶𝘁𝗲𝗺𝘀 at the top (limited to a few elite buyers). 2️⃣ 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝗿𝗲𝗮𝗱𝘆-𝘁𝗼-𝘄𝗲𝗮𝗿 or accessible products in the middle. 3️⃣ 𝗘𝗻𝘁𝗿𝘆-𝗹𝗲𝘃𝗲𝗹 𝗶𝘁𝗲𝗺𝘀 like wallets or accessories to attract a broader customer base. ✔️𝗔𝘃𝗼𝗶𝗱𝗶𝗻𝗴 𝗣𝗿𝗶𝗰𝗲 𝗖𝘂𝘁𝘀: Price cuts are 𝗱𝗶𝘀𝗰𝗼𝘂𝗿𝗮𝗴𝗲𝗱 𝗮𝘀 𝘁𝗵𝗲𝘆 𝗿𝗲𝗱𝘂𝗰𝗲 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 and harm brand equity. ✔️ 𝗨𝘀𝗲 𝗰𝗿𝗲𝗮𝘁𝗶𝘃𝗲 𝗮𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗶𝗻𝗴 𝗮𝗻𝗱 𝗲𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗶𝘁𝘆 𝘁𝗼 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗵𝗶𝗴𝗵 𝗽𝗿𝗶𝗰𝗲𝘀 𝗮𝗻𝗱 𝗲𝗻𝘀𝘂𝗿𝗲 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗽𝗲𝗿𝗰𝗲𝗶𝘃𝗲 𝘃𝗮𝗹𝘂𝗲. 𝗔𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗶𝗻𝗴 𝗳𝗼𝗿 𝗦𝘁𝗮𝘁𝘂𝘀 𝗦𝗶𝗴𝗻𝗮𝗹𝘀: Even exclusive brands like Gucci and Prada invest heavily in mass media advertising to communicate status. 𝗔𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗶𝗻𝗴 𝘀𝗲𝗿𝘃𝗲𝘀 𝟮 𝗽𝘂𝗿𝗽𝗼𝘀𝗲𝘀: 1️⃣ 𝗔𝗽𝗽𝗲𝗮𝗹𝘀 𝘁𝗼 𝗼𝗰𝗰𝗮𝘀𝗶𝗼𝗻𝗮𝗹 𝗹𝘂𝘅𝘂𝗿𝘆 𝗯𝘂𝘆𝗲𝗿𝘀 𝘄𝗵𝗼 𝘄𝗮𝗻𝘁 𝗮 𝘁𝗿𝗲𝗮𝘁. Reinforces the social signaling value of the brand, ensuring that even non-buyers recognize its prestige (e.g., Bentley's ad: "Just turn the page, young man"). 2️⃣ 𝗗𝗲𝗳𝗲𝗻𝗱𝗶𝗻𝗴 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻: Luxury brands need 𝗰𝗼𝗻𝘀𝘁𝗮𝗻𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝗻 𝗮𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗶𝗻𝗴 and 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 to defend against competitors entering their niche. 👉 𝗜𝗻 𝗦𝘂𝗺𝗺𝗮𝗿𝘆, 𝗹𝘂𝘅𝘂𝗿𝘆 𝗯𝗿𝗮𝗻𝗱𝘀 𝗴𝗿𝗼𝘄 𝗯𝘆 𝗯𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗲𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗶𝘁𝘆 𝘄𝗶𝘁𝗵 𝗮𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆, 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗽𝗿𝗶𝗰𝗶𝗻𝗴, 𝗮𝗻𝗱 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝗯𝗿𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗼 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗱𝗲𝘀𝗶𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝘀. #Marketing #LuxuryBrands #Luxury #desirability #scalingbrands