Posted in Marketing & Strategy Articles, Total Reads: 3678
, Published on 22 January 2012
“Luxury is a necessity which begins where necessity ends”
Luxury is concept related to status, ego and psychological need. It is not necessary for survival. Luxury goods have always been associated with high quality, craftsmanship, uniqueness, creativity, exclusivity and innovation. Apart from these product attributes, the consumers also get the additional psychological benefits like esteem, prestige and a sense of a high status that reminds them and others that they belong to an exclusive group who can afford these expensive goods.
Marketing in the luxury business is tricky. Creating desires for things that no one really needs and charging a lot of money for them is a difficult task to achieve. Marketing products in such a way that they deliver emotional benefits which are much more than the comparable products is the trick to the heart of the target group who you anticipate has the spending power.
Factors that clearly affect Luxury goods marketing are as follows:-
1. Product brand
2. Dealer’s or store’s brand or service providers’ reputation
3. Price/Value relationship
4. Customer loyalty etc.
To ensure success of a marketing strategy in India there are a few key foundations which need to be present in the brand:-
1. Brand should be full of innovation opportunities for the marketer.
2. Brand should tell a story which amplifies the identity of the brand.
3. The brand must perform well.
4. The brand must satisfy the need of the customer, whether they were bought for recognition or functional use.
5. The customer should be able to adopt the brand easily.
Some strategies that are adopted by luxury brand marketers are:-
1. Promoting luxuries as beneficial investments.
2. Having a separate line of goods available at a lower cost.
3. Making sure your target customer get the goods much before others.
4. Give out free merchandise to loyal customers.
5. Getting successful celebrities to endorse your brand.
In Marcel Duchamp’s words “Living is more of a question of what one spends rather than what one makes”. The Indian Luxury Market will almost quadruple over the next decade, and brands will have a major opportunity to target the fast-growing numbers of brand-savvy, aspiring consumers. For instance, by 2015, the projections predict that India will comprise 8-10% of the world's luxury goods market and 9 million households would be in the opportunity set for marketers (a press note added that the Indian luxury market will be worth 30 billion USD by 2015).
The Indian audience is more driven by the heart and emotions than by their intellect hence adopting strategies which are directed in these directions will help the Indian luxury goods market to expand.
The article has been written by Ritu Samdani of Welingkar Institute, Mumbai
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