Hermès Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Hermès analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Hermès marketing mix, help the brand succeed in the market. Let us start the Hermès Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Hermès Product Strategy:
The product strategy and mix in Hermès marketing strategy can be explained as follows:
Hermès uses the customization and innovation to prosper in the competitive market. Hermes focuses on a diverse product marketing mix strategy and its product portfolio comprises:
Apparels & Accessories
For Men-Ready to Wear, Ties, Pocket Squares, Men Scarves, Mufflers, Belts, Shoes, Accessories and For Women- Ready to Wear, Swimwear, Belts, Shoes, Accessories, Scarves.
Jewelry
Gold and Diamonds, Silver Jewelry, Horn Jewelry, Leather Jewelry, Enamel Jewelry, Lacquered Jewelry.
Watches, Fragrances, Leather Goods
Premium range of watches & perfumes, Bags and Luggage, Small Leather Goods, Writing, Notebooks, Accessories.
Home Decor
Baby Gifts, Bed Linens, Blankets & Pillows, Bath Linens, Curios, Beach, Decorative Boxes, Games, Decorative Objects, Sports, Desk Accessories, Travel Cases, Library, Tableware, Exceptional Piece.
Equestrian
Products for the horses, for the riders as well as for the stable.
Image: Wikimedia
Hermès Price/Pricing Strategy:
Below is the pricing strategy in Hermès marketing strategy:
Hermès has adopted the policy of premium pricing strategy in its marketing mix to imbibe the sense of exclusivity which is exactly what the luxury consumers look for and does not make any discount on its products for any events, occasions or person. Exclusivity is also ensured by launching limited edition series. One of the key reasons why Hermès products are expensive because they are handmade.
Hermès bags are in the range of $100k to $200k, and can even go up to $2 million for exclusive designs. Thus, Hermès charges a very high price for its products which meet the needs (rather exclusive needs) of the target market to make profits. The price of its products depend upon the type of product and the premium prices set by competitors in that segment. Annually, Hermès International has a revenue of more than $7 billion worldwide.
Read more about Hermès
Hermès Place & Distribution Strategy:
Following is the distribution strategy in the Hermès marketing mix:
Hermes operates in worldwide hot fashion districts like Japan, Europe, USA and Asia Pacific to increase sales and expand its customer base. Especially, in China which currently is the world’s largest luxury market. Hermès distributes its products through 300 exclusive shops around the world to reinforce its brand image and also serves online. Majority of the turnover is generated through Hermès fully owned shops. With the growth of ecommerce due to high internet penetration, Hermès has also increased its business online.
Its products are available exclusively via its own website as well as on some of the leading ecommerce platforms worldwide.
Hermès Promotion & Advertising Strategy:
The promotional and advertising strategy in the Hermès marketing strategy is as follows:
Hermes, being a premium consumer durable brand, focuses on holistic advertising. The promotional strategy in the marketing mix of Hermes can be explained as below:
• Waiting list strategy- Strategists at Hermes makes good use of the economic fundamental that ‘scarcity increases the value’ to create exclusive demand of its products amidst the high-end shoppers by keeping at least a year long wait list.
Unlike other brands, Hermès constantly maintains the core value of the brand by not practicing mass advertising to reach higher sales volume which helps the brand to communicate easily with its specific target groups.
• Communication media- Hermès mostly advertise in print media that can smartly provide attractive colors, theme and fabulous images. Like- luxury and high fashion magazines such as Vogue.
• Celebrity endorsement- Hermès uses this tool to create global brand awareness and add value & enhance position of its brand in the market.
Hermès to increase the value of its products uses celebrity names for its products example, "Kelly and Berkin bags" is named after Grace Kelly and Jane Berkin.
• Outdoor advertising Fashion show- to promote new products and get feedbacks from customers.
• Movies- Hermès to boost the reputation of its products asks famous actors in the movies to use the product. Example, Hermès Birkin bag was used by Sandra Bullock in the movie" the proposal"
• Website- supports various languages for different countries to promote its latest products and services and to respond to customer questions.
Hence, this covers the Hermes marketing mix & marketing strategy.
About Hermès:
Hermès by Thierry Hermès is a French high fashion luxury goods manufacturer and started with producing saddle in 1837. Presently it has several product divisions specializing in leather, ready-to-wear (men & women), lifestyle accessories, footwear, gloves, scarves, ties, perfumes, jewelry, watches, stationary and home furnishings. Hermès has an annual sale of $7 billion composed of about 30% leather goods, 15% clothes, 10% scarves, and 40% other wares and employees 10,000+ people worldwide.
Hermès famous classical style and unique handcrafting technique of leather goods sets it apart from its competitors. Hermès has very strict policies to prevent copy of their manufacture and design and thus does not license its products.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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