Present
MM6016 Branding and Marketing Communication
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Haidir Afesina Wirania Wirani a Swasty Chairunnisa Mirhelina F X Kresna Paska Aqsa Adhiperwira Fajar Faja r Liem
IN INDIA
Prepared & Presented by:
Case Highlights LV’s Products
LV’s Store
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LV is all about travelling
Found In 1854 in France Merge with 1987, with Moet Hennessy to from LVMH Group Business segment: Fashion & Leather, Wines & Spirit, Perfumes & Cosmetics, Watches & Jewelry, Jewel ry, Retail Almost ¾ staff worked overseas (out of 72,000) Net Income in 2007 -> USD 2.3 Billion Billio n
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Prepared & Presented by:
Prepared & Presented by:
Luxury Consumers
Functional & Quality (Logical)
Status symbols (reward)
Self-indulgence / Feel Good Factor (Emotional)
Prepared & Presented by:
Luxury Consumers in India •
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Status symbols
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personal statement “I have made it” Pride and Power Social acceptance “Crème de la crème” (People of the highest social level).
Prepared & Presented by:
High-end Product vs. Low-Income Low-In come Economy Economy
Can this contradiction Be reso solv lved ed? ?
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MARKET SIZE ECONOMY India 2nd biggest population in the world (1.03 billion) rd biggest Economy in 3 Asia (China, Japan) th Biggest Economy in 12 the World HNW in India is world‟s second fastest growth 19.3%
TARGET MARKET Target High Net worth Consumers CEO, Non-Resident Indians, and Bollywood actors Cocooners”” rise from 97 “Cocooners million to 583 million in 2025 Tourist
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Customer Segmentation INDIA's HNW TARGET AND NUMBER OF HOUSEHOLDS Near Rich
Rich
23,0 23 ,000 00 - 46 46,0 ,000 00 US USD D
46,0 46 ,000 00 - 22 228, 8,89 8900 USD USD
Super Rich Over 228,890 USD
1995-1996
1 8 8 ,0 0 0
74,000
5 ,0 0 0
2001-2002
5 4 6 ,0 0 0
2 4 2 ,0 0 0
1 9 ,0 0 0
2005-2006
1,576,000
557,000
5 2 ,0 0 0
2009/2010
2,374,000
1,320,000
142,000
128,000 INR = $ US 2,370
128,000 INR = $ US 2,370
25,000 INR = $ US 462
189,000 INR = $ US 3,500
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External factors hindering The pur purchas chasee of luxu luxury ry goods goods
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Negative External Factors
Political :
Environment:
Great „Knock „Knock--off Item‟ (High quality fake product) product ) Credit Card Issues
Social:
Lack of Advertising to Communicate Distribution Channel (Infrastructure)
Technological:
Lack of Government Support (banned) Increased in Custom Duties (high tariffs)
Rich people leave India Culture
Economical:
Recession
Prepared & Presented by:
Luxury Luxu ry go good ods s mark marketer eters s for form m retail clusters 1. One stop shopping
• enhances access to customers by gathering products
2. Saving costs & maintaining customers
• High Quality Products & Value Chain. • give scale to individual individual store by the sheer number of shoppers
3. Achiev Achieving ing higher value together
• each brand has to maintain and improve the quality & value.
luxury goods marketers are right in forming a luxury retail clusters in the purpose of sale and cost effectively
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Luxury Lux ury bran brands ds look look for luxury luxury hote hotels ls The “ The
current luxury customer is
highly sophisticated and brand literate”
1. attract the customers customers’’ awareness -gathering point for society and a hub for travellers -wealthy people would like to come & enjoy their wealthy life - feel feel special special as well well as their lifestyle lifestyle is proved
2. support for the brand status - luxury usually goes with luxury -selling approach methods to these customers.
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Luxury Malls
“ a collection of stores bonded by shared facilities
and a common infrastructure”
best alternative for store location after luxury retail cluster
Prepared & Presented by:
A lu lux xur ury y mal malll wor works ks for lu lux xur ury y ma mark rket eter erss
1. Has strength strength of gathering gathering sever several al different different luxury luxury brands brands in in one place place 2. Onc Once e the luxury luxury mall mall is doing doing well, well, the luxu luxury ry goods are known known well too. too. marketers do not need to do many things on create awareness, develop strategy and promotion sales.
3. Gi Give ve 4P adv advan anta tage gess : eDon’t need c ato find the l P
store location with highly selling potential again.
edon’t have to c i r Pdo market
research to identify a suitable price at a special point.
s tno more c uneed to d o rcreate Pcustomer
mind set about their luxury brand.
nhas various o i t promotions o that suitable m o r for each P
season