Category Archives: lifestyle marketing

Lifestyle Branding: Engagement and the Total Experience

By James D. Roumeliotis

How Is Technology Helping Fashion Lifestyle Brands Connect To Their Human  Side

When you visit your local Porsche dealership be prepared to engage.
Staff will talk to you about the total experience. This will invariably
include discussing the firm’s racing pedigree and performance. In your
mind, you will be able to feel the steering wheel, smell the leather seats,
and hear the roar of the engine. This car represents to you an exclusive
club and you desire to be part of the privileged few. The brand also added its own private race tracks in several parts of the world for its customers to have exhilarating moments testing various models. Clearly, one does
not buy a Porsche simply to go from point A to point B. In practice, you
might use this care to commute to work, but this is not the incentive
to purchase a piece of automobile and racing history.

Porsche is clearly a brand with authenticity and heritage. The principles shaping the consumer’s buying behavior go beyond intention.
There is a sense of engagement in fulfilling a dream. It can be to make
a social status statement or a personal style choice. Whatever it is, it
is not an unconscious choice. The codifiers are clear: This is who I am,
and what I believe in. Ultimately, it can also articulate your sense of
self-worth and your emotional aspirations.

The most important emotional benefit in my view is that a product
of this caliber and class expresses itself when the consumer can declare,
“It suits my lifestyle.”

Lifestyle Brands Matter
Not every brand is a lifestyle brand regardless of whether it strives to
portray itself as such. A company can define itself as a lifestyle brand
when its products promote more than a product with key benefits and
attributes. Note however that lifestyle branding is more than just promoting “a way of life”. It is a product or service that provides consumers with an emotional attachment to the lifestyle of the brand. Think
of Ralph Lauren and you can readily see it is not about the clothes. It
becomes an attachment like Porsche to an exclusive club in which you
can be a member through emotional identification through use of the
products in question.

Savvy companies understand these principles and look to keep
the customer engaged. By doing so, they clearly forge the sort of long
term relationships, which become the envy of their designated sector.
Financial benefits clearly follow, but the raison d’être of the firm must
back up its promotion for this to work effectively. One reason so many
firms want to enter the lifestyle arena is profitability and high profit
margins. Established brands can tap economies of scale when they
launch new products at a cheaper cost to the firm. Surplus revenue can
then be channeled into extensive advertising and promotion costs.

Building a Lifestyle Brand
Generally speaking, a brand that is designed for the lifestyle segment
should have more emotional value to consumers. Features, cost, and
benefits do play a role but by themselves they would be insignificant.
There are companies that become a lifestyle brand by tying their
product ranges to a distinctive culture or group. Marketing guru, Seth
Godin labels this with the key word as a “tribe”. A classic case is Harley
Davidson, who sells branded merchandise to customers whether or
not they own one of the firm’s motorcycles. Other
key lifestyle brands include Nike, Wholefoods, Red Bull, Hackett, Hermes, and Louis Vuitton among others.

In the electronics and computer industries, it is uncommon to have
lifestyle products. However, Apple has broken this “glass ceiling” by its
unconventionality with products which come with its seamless eco-system. Even its ubiquitous white headphones have become a fashion accessory and, some would even argue, a status symbol. The people who follow Apple
and its “lifestyle” are clearly all obsessed in a way that the firm intended
when it embarked on this well-thought-through strategy.

Lifestyle brands have clearly impacted on luxury brand management.
The usual suspects such as BMW, Armani, W Hotels, and Rolex — just
to name a few, have fostered commitment and loyalty with their promotional campaigns. These have given consumers an “associate” status
with all that is glamorous. Just think of Daniel Craig and James Bond.
Sales at Omega thrive on this “Bond engagement”.

The methods to reach a target audience require an integrated marketing/communication strategy. They clearly require taking into consideration and harmonizing the following aspects:
• Experiential Marketing;
• Grassroots marketing;
• Promotional tours;
• Sponsorship of lifestyle events;
• Lifestyle marketing on the Web: think Facebook;
• Viral video marketing;
• Social media/networking (blogs, chat rooms & message boards);
• “Interactive” is key;
• Mobile phone media, text messaging & applications.

Not Every Brand Can be a “Lifestyle”
New research from Kellogg at Northwestern finds that the strategy of
traditional brands to reposition themselves as a “lifestyle” brand may
fail. The reason is not rocket science: they simply fail to “bond” with
their customer base. “The open vistas of lifestyle branding are an illusion,” said Alexander Chernev, lead author of the study and Associate Professor of Marketing at Kellogg. “By switching to lifestyle positioning, brands might be
trading the traditional in-category competition for even fiercer cross-category competition. Now they have to compete not only with their
direct rivals but also with brands from unrelated categories.”

The study reveals how brands serve as a means of self-expression
along with the limitations of expressing a consumer’s identity through
brands. Moreover, the study uncovers customers’ desire for self-expression through brands is finite.

Why Do Some Lifestyle Brands Become A Way Of Life?Fabrik Brands
Credit: Fabrik Brands

In Perspective
Forward-thinking brands are those which will continue to develop creative ideas and solutions that will allow people to interact with each
other and explore, as well as share creative opportunities. Moreover,
those same brands will make it a strategic priority to add pleasure into
the lives of their consumers.

To be sure, there are many excellent examples of lifestyle branding. Just examine the “hotel as lifestyle” creator, Ian Schrager. Since the
1970’s, as an entrepreneur, Chairman and Chief Executive Officer of
Ian Schrager Company, he has achieved international recognition for
concepts that have revolutionized both the entertainment and hospitality industries.

His passionate commitment to the modern lifestyle has been
expressed through a series of pioneering concepts:
The hotel is no longer just a place to sleep. It is portrayed as your
home away from home. This allows hotels to act like theater. Think of
the boutique hotel or “cheap chic”, “lobby socializing”, the resort, or
the spa.

His keen instincts for the mood and feel of popular culture were
honed during the 1970s and 1980s, when he and his late business
partner, Steve Rubell, created Studio 54 and Palladium. In 1984, they
turned their attention to Morgan’s Hotel and introduced the concept
of “boutique hotel” to the world, which is today one the hottest segments in hospitality.

The goal of a lifestyle brand is to get people to relate to one another
through a “concept brand.” These brands successfully sell identity, image
and status rather than a “product-service” in the traditional meaning of
the term.

If they are successful in capturing their audience, then they become
legends in their own right. If you examine the published photographic testament to “Il Pelicano” in Tuscany you will understand perfectly the meaning of the lifestyle branding spirit.

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The Sensuous Brand: How to create allure with products and user experience

by James D. Roumeliotis  

Sky Vodka - Sexy Brand

Why are visually appealing products rare which make purchasing it a delight and worth talking about? Common sense dictates that product design should be attractive – perhaps possess sex appeal if the brand behind its product(s) seeks to make a sales impact. Although beauty is subjective, there are common standards of attractive packaging, which are smart and demonstrate the intrinsic value of the product’s attributes.

However, many will agree that smart design looks timeless, expresses character and is visually seductive.

Barring lingerie labels such Victoria’s Secret (now defunct) or Agent Provocateur – which in and of themselves will ooze with sexiness, most other brands and their products from non-seductive sectors can still create and possess a sense of styling along with desire.

A brand that caters to all the senses, begins with an appealing brand identity, followed by creative industrial design of its products – which are complemented with a positive customer experience in every touch point.

Artfully articulating what your brand and offering represent

Adding personality to objects and human interaction are quintessential to customer envy and desire.

There are brands that design and churn sensuous looking products. However, there is one that most will agree is top of mind for the refined consumer electronics market –- Apple. It’s all about the appealing logo, the attractively designed and “feel good” products, the alluring packaging, the intriguing ads, and the overall positive customer experience at their retail level, Needless to say, it’s a contemporary brand that undoubtedly gets it. It’s no wonder it created a strong following, or as marketing maven Seth Godin would describe as a “tribe.”

When consumers are delighted by a particular brand experience, they begin to bond emotionally with the brand. They become brand loyalists and advocates – buying into the brand repeatedly and recommending it to others. This behavior serves to build the brand’s image and reputation.

Product design is key to a great brand. Design is the elemental differentiator with competitors. Allure builds the emotional bond and turns owners into enthusiasts.

“It’s all about integrating design and brand,” says Joe Doucet, founder of Joe Doucet Studio.

We need to cease thinking of them as different disciplines. The essence of the Apple brand comes through its design. Take the logo off a BMW and you still know it’s a BMW.”

Design also needs to be part of the strategic plan from the start, embraced by the CEO and across the Board.

A brand is not your logo or ID system,” says Robert Brunner, founder of the design shop Ammunition and author of ‘Do You Matter: How Great Design Will Make People Love Your Company.’

It’s a gut feeling people have about you. When two or more people have the same feeling, you have a brand. You get that feeling via smart design, which creates the experiences people have with the brand. Everything you do creates the brand experience; ergo design is your brand.

The holistic approach to customer attraction and retention

Consumers today are more brand conscience, yet there are companies which continue to spend money advertising and selling product rather than brand. They place emphasis on price and quality as differentiators despite these two being overused by many copycats. Successful brands take a holistic approach to selling by exploiting the 5 senses which now constitute the brand. This is accomplished by what I regard as “ambiance marketing” and “sensory/sensorial branding”, through a captivating designed setting, yet alluring. This adds character and invites clients to truly feel the brand experience.

To put the aforementioned into perspective, consider the following:

  • Visual – lighting, décor, colors, layout…you can get a real sense of movement using these elements.
  • Auditory – music, effects, volume, vibrations…you set the tone and the energy of the room with your sonic selections.
  • Tactile – textures, comfort, climate…this is all about how your guests interact with the environment.  This is a big thing to consider when you are designing the layout.
  • Olfactory  fragrance, emotion, ambiance…this sense is under-rated and powerful. Of all our senses, the sense of smell is most closely linked to emotion and memory. You can use something as simple as burning incense or candles to something far more complex like computer controlled scent machines to enhance your environment. This could just be the extra touch needed to set the mood.
  • Gustative – with food establishments, the challenge is in finding the perfect balance between sour, salty, sweet, and bitter during menu designs and beverage selections.  The presentation also makes an impact on the overall image.

Creativity, quality, storytelling and above all, customer experience

Standard products and mundane user experiences don’t offer compelling reasons for consumers to do business with certain brands. If a business can’t articulate its USP (unique selling proposition) ‒ as to why anyone should do business with your brand, your product and/or service merely becomes a “commodity” whose price will be the sole determinant in any transaction.  Being formidable and considered top of mind in your B2C sector requires a philosophy – a certain culture which will develop a following by consumers who share your values.

Quality materials, assembly and final product look increase a company’s competitiveness. The quality of a product may be defined as “its ability to fulfil the customer’s needs and expectations”. If the characteristics and specifications of a brand’s product line are equal or superior to its competitors, along with a fair price-value equation, the brand will turn out to be a preferred choice.

Storytelling, on the other hand, builds relationships by the stories that are well told. Stories add personality and authenticity to products which customers can better relate to and feel affinity with. Luxury brands tend to boast their pedigree since their discerning clientele desire a deeper level of involvement and understanding of the history and heritage of the brand when it comes to their luxury purchase. This is referred to as “experiential luxury.”

It is essential that the sales professional be product proficient and adept at assisting and guiding the client to the purchase making use of flattery, romance and showmanship. To illustrate, when selling a niche automobile such as a Porsche, the sales consultant can talk about racetracks, describe road-holding capabilities, build-up a fascinating story – after which time he/she can bring-up reliability and the technical details which confirm to the discerning client what he/she is already aware of.

When consumers are delighted by a particular brand experience, they begin to bond emotionally with it. They become brand loyalists and advocates – purchasing the brand more often and recommending it to others. This behavior serves to build the brand’s reputation.

Be first, different & daring – above all, visually stimulating

Plan and execute flawlessly the following to differentiate and develop into, as well as remain an enviable brand through artistic design and function:

–       The brand logo and company presentations should possess flair, consistency and be memorable;

–       Focus on a specific target audience/niche market rather than divert to several markets or the general population;

–       Innovative and “feel good” product design (both visually and tactile): Get inspired by designs from Philippe StarckPininfarinaPorsche Design and Bang & Olufsen. Architecture by Frank Gehry and the late Zaha Hadid and automobile design trends by Audi, Tesla, and in the last few years, Hyundai with its entire model makeup. Kohler Group doesn’t simply design functional bathroom and kitchen sinks and faucets, but rather bold designs and technology to an otherwise lackluster plumbing product sector.

Perhaps product customization and personalization should be available as an additional offering.

–       As for service related domains, place emphasis on employee attitude/personality, empowerment, constant training, effortless accessibility for your clients, flexibility when solving issues and presentations with style, as well as finesse. Each and every customer should be treated with personal care – a sign of individuality;

–       The Total Customer Experience: Be easy to do business with – accessible – at every stage of a transaction from initial contact/pre-sale, during the sale and post-sale (follow-through and customer service). Zappos, Nordstrom, Ritz-Carlton Hotels and American Express (to name some of the finest examples) are renowned for their obsession with customer service and total customer experience;

–       Soothing sounds and striking visuals: Consider sound branding complimented with refined standout visuals (audio, images and video). Surround your brand and its products/services with fashion, beauty, design and attractive models – without any marks of tackiness;

–       Packaging design should be visually appealing, distinctive, tastefully decorated, and equally inviting to open.

–       Sponsor, collaborate and/or associate with a fashion related brand and/or the arts. Both brands can benefit from combined exposure (PR and advertising). Luxury goods brands such as Versace, Bulgari and Fendi have teamed up with property developers to offer upscale designer hotels. Their trademark at hotel properties, in a select number of affluent cities worldwide, offers their loyal clients something new to get excited about.  It’s a collaboration which celebrates a shared fondness in design and luxury experiences.

–       Create and own a captivating name and category for your product or product line. Luxottica, is the world’s largest eyewear company, controlling over 80% of the world’s major eyewear brands (eye glasses and prescription frames) including Ray-Ban and Oakley sunglasses, along with Chanel, Prada and many other designer labels. It re-invented eyewear which were once considered a “medical device” and developed them into a fashion statement. They no longer label their products as “glasses” but as “eyewear” and “face jewellery” (for a lack of a better term/descriptive);

–       Marketing collateral and ads should be: (i) slick, (ii) minimalistic, (iii) emotional, (iv) portray a lifestyle, and (v) apply the “less is more” mantra. Arouse curiosity. Effective marketing campaigns should also include elements of: Imagination, Mystery and Memory;

–       Be a visionary and innovate – anticipate what your sector will look like in 3-5 years and begin to plant the seeds/strategize in a timely manner. Avoid complacency. Blackberry is an excellent case study exemplifying what they should have done a few years ago to remain relevant amongst iPhone and the Android platform smartphones.

Lessons from luxury brands: creating a lifestyle brand through emotional attachment

Brand loyalty is about building an emotional, and in some cases, irrational, attachment in a product. The most ideal example is when thousands of people line-up, regardless of weather conditions, to get their hands on the latest iPhone or iPad. This happens because Apple has built an emotional attachment to their products by creating a lifestyle choice rather than a product purchase.

It’s about how it makes you feel. Same goes for baby boomers, whether accountants or attorneys or business executives who purchase a Harley Davidson motorcycle and ride them for about four or five hours every Sunday afternoon. The bike makes them feel like a rebel – sort of an escape.

A brand that is designed for a lifestyle should have a much higher emotional value to consumers than one based on features like cost or benefits alone. The goal of a lifestyle brand is to become a way that people can utilize it to relate to one another. Those brands are an attempt to sell an identity, or an image, rather than a product and what it actually does.

Lifestyle brands have gained an increased share of the luxury market including prominent brands such as BMW (ultimate driving experience), W Hotels (avant garde designer hotels for a younger audience, along with whatever you want, whenever you want it, as long as it’s not illegal), Louis Vuitton (prestige and opulence), Rolex (representing the pinnacle of achievement; fulfilling and perfection in one’s life) and Aston Martin (power, beauty, soul and heritage). Those brands have given way to consumers to buy their products that they associate with a “luxurious life.” They are essentially a status symbol.

Hermes Equestrian Fashion Photo

The final take: Elegant & intelligent design

Beauty and design in all things is artistic, engaging, stimulating and creates a sense of comfort. It’s also a very personal thing. Creativity is beauty in art form. It starts from nothing, utilizes mind exploitation, imagination then something awe inspiring is produced which stimulates the mind and senses. The approach to creativity is the way an artist might stand before a new canvas, on which a beautiful painting can be crafted. Staff who work in a creative environment should be given plenty of leeway to utilize their full potential – the freedom to flourish. Not doing so limits their artistic talent and deprives the company from taking a leap at the competition. Apple has successfully unleashed the talent from their product engineers by creating a non-stifling work environment. As for architects and industrial designers, they should definitely possess the talent and imagination to create and turn extraordinary drawings into reality.

Brand loyalty is about building an emotional, and in some cases, irrational, attachment in a product. When Apple releases a new consumer electronic device, people line-up, regardless of weather conditions, to get their hands on the latest iPhone or iPad. This is a result of Apple constantly building an emotional attachment to its products by managing the total user experience.

“Total customer experience” is not an option but rather compulsory as part of an alluring brand. It takes savvy planning, execution and perpetual refinements to stand above the crowd. It’s how you get noticed and remain relevant. Luxury brand desirability is driven by standout design, craftsmanship, as well as what is felt.

It takes vision, creativity and intuition, along with unflagging discipline and a sense of style, to keep a consumer focused company relevant and its products on everyone’s must-have lists. No brand should be complacent.

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Why do Rolex Watches Retain Their Value? Quality, Savvy Marketing and Cache are the Core Motives

By James D. Roumeliotis

Rolex Instagram image

The renowned Rolex brand is a precision Swiss manufacturer of prestigious wristwatches or “timepieces” (for a lack of a better word in the category) which possesses pedigree along with a stellar reputation. It was registered as a trademark in 1908 and as a company in 1915.  It is a privately held and independently run entity, as well as considered the single largest luxury watch brand in the world.

The brand is responsible for many innovations in the watch industry including the first self-winding watch, the first waterproof case, the first watch with a date on the dial, the first watch to show two time zones at the same time and the first brand to earn the chronometer certification for a wristwatch.

Rolex watches rarely lose their price value because it is one of the very few watch brands which has mastered five vital fundamentals as follows:

1) Superior Craftsmanship and Materials: Rolex makes virtually everything in-house as a totally vertically integrated manufacturer. The watchmaker is first rate in metallurgy and manages to produce incredibly accurate and reliable time pieces. For a Rolex watch to work seamlessly and maintain its beauty, even in the harshest environments, it uses Oystersteel, a steel alloy specific to the brand and belongs to the 904L steel family. It is particularly resistant to corrosion and acquires an exceptional sheen when polished. Rolex watches are also hand-made which is expected from a fine Swiss made watch. The movements and bracelets are assembled by hand, whereas a precision and high-tech proprietary machine or robot helps with doing things such as applying the right pressure when attaching pins, pressing down hands and aligning the parts. Moreover, all Rolex Oyster case watches are thoroughly tested for water resistance. This is performed with an air-pressure tank.

2) Artificial Scarcity: They are intentionally producing below the critical mass of watches that they can put into circulation. Going over would flood the market, but Rolex somehow manages to stay under that point by limiting its annual production output. This retains a lower supply and creates over-demand thus keeping prices above a certain level.

3) Perceived Value: Perceived value is the price that consumers are willing to pay for a product. In this area, Rolex manages to get their perceived value right in contrast to the actual value. Quite often the pre-owned or second hand price will indicate what consumers are willing to pay for the product, as opposed to the price that the manufacturer had initially decided to set.

4) Savvy Marketing: Rolex promotes itself predominantly high-end luxury brand that is the ultimate aspiration of the consumer…a fashionable alternative to using a cell phone to tell time and a status symbol. The brand has consistently sold to an upper class target market that consists of mainly men over the age of 35. The Rolex marketing approach has a subtle touch. Its clever marketing and PR tactics, along with its choice of sponsorships, portray a brand which represents sports, success and elitism. The brand’s iconic gold crown is prominent on scoreboards, banners, and timing clocks at high-profile sporting events around the world including golf, motor racing, tennis, yachting regattas and equestrian sports.

5) Structured After Sales Service: Rolex provides repairs on most of the products that they have released throughout the company’s history. This task is bestowed to a Rolex boutique or authorized service center throughout the globe. It has generated some controversy in the watch and jewelry domain because like the other prominent prestigious watchmakers, the brand has gradually limited access of spare parts to independent repairers.

How And Why Rolex Prices Have Increased - Business Insider

Therefore, in summary, with superior quality workmanship, the scarcity factor, ideal perceived value and savvy marketing, Rolex is one of the few watchmaking brands to have created a great value proposition and sought-after status. Not surprisingly, it is also well regarded and the most widely accepted premium watch brand, in terms of resale value and demand, at pawn shops and any other preowned watch retailer.

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Sex and Sensuality in Advertising: Why it is effective and how to refine it

by James D. Roumeliotis

Gucci Guilty Sexy Ad

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Does sex really sell? It seems to sell but commercially, not morally. Sex in the media has been around as long as media itself ‒ though these days at more extreme levels (from subtle to overt).

They’re not quite selling a product but rather an expression of desire – a lifestyle that can be envisioned with the product or service. It attracts the male audience much more than the female as women are objects of sensual desire for men. It’s no wonder that most sultry ads portray bodacious females.

Marketing and branding via sultry imagery and insinuation

Sex is a primitive instinct which qualifies it as an attention-grabbing technique in the media domain. It’s no wonder a weapon of choice for marketers. Sex also transcends product categories ‒ whether it’s a consumer product such as Axe antiperspirant, a recreational pharmaceutical drug like Viagra or an exotic sports car.

Sexually explicit ads can be controversial and some offensive. They are also subject to socio-cultural climate. As long as they don’t get carried away to borderline pornography, but rather refined, preferably subliminal and certainly not violent or masochistic, the sultry ads can be considered playful and memorable. Their original intent is to create an emotional effect on the viewer. This way, the viewer develops a closer bond with the brand and consequently, stronger recognition. Some ads intentionally incorporate a humorous element which generates further interest for its intended audience.

Fragrance ads by some fashion designers are intentionally created to sell a sultry elixir in a bottle. To succeed and spark emotional purchase desire, its creators have raised the stakes by provoking the visual (as well as the olfactory) senses and causing the consumer to believe that he or she will feel erogenous and desirable with those he or she cares to attract. However, there are few controversial ads which have been banned as they seemingly pushed pop-culture buttons a notch too far.

The benefits of sex in advertising

Businesses have found that sexy ads are a great method for “word-of-mouth” and viral publicity. Their attention grabbing messages have the ability to cut through the clutter of ads and command considerably more views. The intended viewers, however, are mesmerized even as they are absorbing the ad’s underlying subliminal messages.

A case in point: In 2000, Heineken launched the “It’s All About the Beer” campaign. One spot, called “The Premature Pour,” shows an attractive and alluring woman pouring Heineken into a glass. As a result, a guy across the bar reacts by pouring his own beer but nervously pours it too quickly and spills foam all over the table, as well as on himself. The sexual content is tacit, yet blunt. The insinuation in this, and other spots in the campaign, yielded a successful outcome causing sales to rise 13% in the first two quarters following their airing.

Popular men’s magazines like Maxim have experimented often with their covers. By placing a spicy, semi-naked woman on the cover, male readership spikes and outstrips an image of any popular male star whom men can readily relate to.

At Montreal’s renowned steakhouse, Queue de Cheval (French for “horse’s tail”), its eccentric owner, Peter Morentzos ‒ who is known for pushing conventional advertising boundaries, came-up with the idea to host a “Food Porn” event for a charity event. The sold-out $250 per person event featured young hard-body waitresses in skimpy outfits along with shrimps hanging on them which resembled human trays. To promote it, he used the photo of a naked woman’s torso deemed too racy for print in the culinary magazine Gourmet.

What sexually overt ads should avoid

For sexually explicit ads to be effective, they should be created in good taste with respect to the following:

  • Provide a meaningful message through the images;
  • Avoid over-reliance on sex due to saturation as it may lose its intended impact;
  • Should not depict violence, aggression and/or masochism;
  • Shouldn’t be doing it with just any product merely to grab attention but with some relevance utilizing sexual ideas only.

If a brand is willing to risk taking a controversial position to gain attention amongst the crowded product landscape, it should not be excessively overt. It ought to target the brand’s specific market along with not offending its fans and best customers.

Marketers at times tend to step out of line ‒ though, today many consumers happen to be savvy and realize when they’re being manipulated by various media messages. The products touted in the ads may contain sensuous interplay but if they don’t stand-up to their promises and hype, those brands will disappoint and won’t be able to hold onto the customers for long. At the end of the day, the truth in advertising signifies the “trust” factor which is inherently crucial in attracting and retaining clients.

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Exploiting The Benefits Of Niche Marketing: Strategic Marketing

By James D. Roumeliotis

Niche Marketing Image

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In strategic marketing “speak”, who earns more money: a general practitioner or a specialist physician such as an ophthalmologist? The latter has spent additional years studying with emphasis in one particular area of practice which makes him or her both scarce and sought after in his or her profession. The same goes for an organization that has spent years studying the market with emphasis on doing one thing, but one thing extremely well. This automatically justifies higher fees translating to improved earnings. How does a saddle maker to the horse and carriage trade reposition itself to maximize its know-how in leather goods to now command $4,500 for a simple briefcase? Or even hawk silk scarves at $400? Think Hermes.

The answer lies in specialization, craftsmanship, and branding. As with all other specialized professions, a business that, chooses to concentrate on a particular market segment should simply be generating higher revenues. Alternatively, if you join the herd of the mainstream, there is always a vast consumer audience to tap. Profit is driven by volumes. It is harder to compete on price to the point of being perceived as offering
a commodity with little or no differentiation — otherwise known as a “unique selling proposition” (USP). The only exception to that rule is when an enterprise keeps churning out innovative, “must have” items ahead of its competition. Yet that requires constant creativity, refinements, and a considerable amount of R&D. Apple is an example of a
firm that has managed to hit both objectives. Not bad for an enterprise, that started life in a garage.

Defining the term “Niche”
Strategically, niche marketing is the way to go forward. However, you ought to be on top of game. Recently, the firm Kusmi Tea has managed to put all the right elements together in an unbeatable combination. It personifies mass marketing and branding. If you have a specific group of people interested in “organic tea”, you have your proverbial niche.
Whether promoting niche products, in focused markets, such as those for vegans, cruises exclusively for “cougars and cubs” or geared for the ultra high net worth individuals, the activities applied to attract those refined target undoubtedly call for creative strategic thinking.

Targeted Audiences
The best way to start is to define your target audience. An 18-yearold girl who wants to lose weight to fit into her dress is interested in weight loss diets. Hit her at her waist line, and the target is captured with simplicity.

The family who just purchased a puppy wants it trained and therefore requires the appropriate service. Show you can make a dog shake, rattle, and roll and still act well-behaved in the company of others and you will no longer need to flog dog whistles.
Every notice how a 50-year-old lady wants to hide her wrinkles and is always searching for a miracle formula to make her wrinkles disappear in minutes? Open Vogue and see how this “class act” can be achieved. These cited groups above represent finely honed targeted audiences. Marketing to such audiences and building an emotional bridge from the intention to purchase decision always attracts higher conversions. You don’t need to recreate the wheel. All you need to do is to find a suitable product that your target audience is looking for and present it on a silver platter. All target audiences liked to be addressed with intimacy and personal contact.

Driving the Niche
Common sense tells you that driving a selected audience is efficient and lucrative.
The following key index shows how niche marketing should be your chosen business strategy:
1. When entering new niche market, generally you will not have much competition to deal with. This is justification alone for choosing a specific market in the first place. It also makes your SEO (Search Engine Optimization) Internet marketing strategy
focused and cost effective.

2. Niche markets appeal to target customers, and they are generally much more willing to spend money when their specific needs are met. This means that by catering to a specific target market, you can generally earn a better profit margin.

3. Some niche markets contain sub-groups of the main niche. For example, acai berry weight loss pills or natural weight loss diets are sub niches from the weight loss niche. Despite their relatively small size, they are actually quite sought after. Identifying
this need spares you from having to compete for similar business. People who fit this profile will seriously consider your product — especially if it offers them a genuine solution.

4. Niche marketing makes it possible to focus on becoming a true expert within a particular realm while building a reputable brand name. Strategically, it is also more focused and easier to segment and attack.

The “Ideal” Niche Player
A niche market player is very effective at working closely with customers to build and maintain long term relationships by innovating and challenging the existing norms in the industry, thus adding value to the project, program, and organizational level. If one is considered an expert in what one does by focusing in one area, then great success will
follow. The value proposition must be relevant to the target market.

This means a target market must be clearly defined. Focusing on a specific market requires knowing it inside and out. This includes conducting a market analysis, stating a precise target market description and goal, as well as being clear about the type of relationship one would like to achieve with his/her market.

By definition, then, a business which focuses on a niche market is supplying a need for a product or service that is not being met by mainstream providers. As such, one can think of a niche market as a narrowly defined group of potential clients offering them the best of what you have. In return, their vendors will profit from higher margins and customer loyalty. As for targeting smaller “sub” niches, you will find them much easier to dominate.

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The Luxury Brand Ranking and Consumer Accessibility Pyramid: What It Takes to Move Up

Commentary by James D. Roumeliotis with pyramid created by Erwan Rambourg

Luxury Image - Woman With Diamond

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Few brands can really claim the trademark of luxury. It is those which combine allure with pedigree and quality attributes. Discounting is not part of their strategy and their entire raison d’être is geared to the Ultra High Net Worth (UHNW). Many of their products actually increase in value over time since they are either discontinued, necessitate a long waiting list/time and are most desirable (supply/demand). Many also offer bespoke products and services since their type of discreet clientele prefer personalization and/or one of a kind. Brands that become too accessible are less appealing to such well-heeled buyers.

Erwan Rambourg, an HSBC managing director and author of the book, “The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun” created a luxury brand pyramid which depicts how major brands range in accessibility from the lower end with “accessible luxury”, such as spirits, a fine steak and perfume, to ultra-high-end luxury like rare diamonds. This is the luxury influence level ranking pyramid:

Luxury Pyramid by Erwan Rambourg

Getting On Top of the Pyramid

Luxury purveyors who aspire to cater to the top tier of spenders should have a mission, vision and a sound implementation strategy to reach this elite demographic target ‒ short of simultaneously pursuing the aspirational consumers who are prone to cutting back when the economy takes a dive. This latter group of consumers dilutes the cachet of the brand and can turn out less profitable in the long run. Moreover, the High Net Worth Individuals or HNWI and Ultra High Net Worth Individuals or UHNWI frown upon offerings which are accessible to the mainstream as they desire status and exclusivity.

Products and services should be unique, well designed and packaged, finely crafted ‒ and executed with refinement for the elite. Those are ways to entice the interest of, and ultimately retain, the ultra-wealthy. Products and services should never appear as ordinary yet absolutely personal.

In the luxury sector, traditionally there hasn’t been any shortage of customization for the very well heeled. Exclusive and bespoke travel companies provide tailor made adventures and excursions, whereas, the ultra-luxury and exotic automobile sectors such as Rolls Royce and Ferrari respectively offer a wide array of customization options. Each vehicle coming out of the studio will be completely unique and guided by a personal designer at the manufacturers. This is how ‘the total customer experience’ materializes.

What do the HNWIs and UHNWIs seek in their lifestyle?

According to the white paper, Strategies for Effectively Marketing to High Net Worth Consumers”, written by Richard Becker (August 2008), High Net Worth Individuals enjoy Golf, tennis and physical fitness ‒ endeavors typically associated with exclusive ‘members only’ clubs.

HNWIs/UHNWIs cherish their time and know what they want. Even time is a luxury and limited resource for them, thus saving time greatly trumps saving money. This is part of the reason service is crucial for them. They can be generally described as:

– Seek a higher and exacting standard with a minimum set of expectations;
– Fussy in nature;
– Often require customized solutions to mirror their lifestyle – whether a product or service;
– Take pleasure on getting extra attention from the brands they pursue;

– Prefer the uncommon to the mundane;
– Expect to be offered unique choices and experiences;
– Synonymous with a taste for luxury with pedigree and craftsmanship which they’re able and willing to pay;
– Aspire an aura of exclusivity;
– Crave an experience heightened by exceptional service along with a personal relationship;
– Seek products which are different and more sophisticated – whether it’s apparel, electronics, food or insurance;
– Want to feel in command of their purchase decision without any pressure;

– Expect discretion and confidentiality – most notably from service providers such as private wealth institutions and concierge services amongst others.

Likewise, what they purchase is a visual extension of their individuality and lifestyle. A well-crafted product, for example, reflects an individual call to beauty.

Putting it all into perspective

In the United States the top 1% possess 40% of the wealth owns half of all the stocks, bonds and mutual funds.

Fickle and discriminating, these customers’ purchasing attitudes are based on personal beliefs and taste for finer things in life along with discretion. They are quite selective, know what they want and aspire to be catered to effortlessly. They seek the total customer experience along with pampering, personalized service which can include fashion consultations and exotic journeys. Best of all, they are willing to pay top money for the products and services they want.

An offline strategy requires an equal online presence. This is accomplished by placing stunning imagery, video, engaging content and constant refinements along with savvy Internet marketing to connect the brand with luxury social channels. It’s connecting with its like-minded audience.

Think brand positioning and focus on, as well as cater solely to, your core market rather than be all things to all people. Stay out of the bottom end and aspirational markets and instead, aim at the top end markets.

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The Cult Brand: Providing an exceptional experience to the point of total customer devotion

by James D. Roumeliotis

harley-brand-tattoo

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There are brands that tout their virtues of their products and/or services with a religious fervor. A “cult” brand is a product or service with a strong loyal customer following, whereby their clients are fanatical about their products or services to the point where their lifestyle revolves around those popular brands. This level of fanaticism also makes those devout followers unsolicited brand ambassadors.

Cult brand examples with customer aficionados include Apple, BMW, Porsche, Fox News, Lulumemon, Zappos, Oprah, Harley Davidson and Starbucks to name a few. As with Starbucks, it offers a superior product and experience that some people would go out of their way, by driving by less expensive alternative coffee shops, to pay for Starbucks’s pricier cup of coffee.

More than just a product or service, it is a lifestyle

Generally speaking, brands that are designed for a lifestyle should have a much higher emotional value to consumers than ones based on features like cost or benefits alone.

Call it “hype” or give it any other label, cult brands are a unique breed which create and are given plenty of attention. Their brand value is also much higher than their closest competitors. They have achieved a special connection with consumers through their distinctive appeal.

Unlike religious or similar type cult following, the cult brand is considered “benign” or a “benign cult” since it satisfies a need and desire in a positive and harmless manner. Some brand loyalists have gone as far as having their beloved brand tattooed on their body.

A brand is considered as a “cult” brand if the following aspects are present:

  1. Customers receive more than a product and/or service ─ they experience a lifestyle;
  2. Brand devotees firmly believe there are no substitutes for their beloved brand;
  3. Customers feel a sense of ownership with the brand;
  4. Loyalty is prolonged over time compared to brands which are considered fads and unsustainable in the long-term;
  5. An extraordinary degree of customer loyalty exists.

Ingredients of a cult brand: using psychology, identity and a sense of belonging

It is not enough for brands to spend plenty of money on glorified advertising. Any company with an adequate budget can do that. The essential challenge is to utilize an approach that makes people to want to embrace a product and/or service that people would enjoy making it part of their life, as well as identity and belonging.

Brand cult status is an emotional component of the brand but it is not as simple to achieve. As per The Cult Branding Company, a brand consultancy firm, there are seven rules of cult brands this author stands behind ─ and are as follows:

Rule #1 – Differentiate: To achieve a special connection with consumers, the brand should have a distinctive allure and be unconventional in a good sense.

Rule #2 – Be Courageous: Cult Brands are successful because they are unlike their competitors. They possess their own personality, DNA and rules. They are also passionate about their offerings and their customers for whom they exist in the first place.

Rule #3 – Promote a Lifestyle: The goal of a lifestyle brand is to get people to relate to one another through a “concept brand.” These brands successfully sell identity, image and status rather than merely a “product-service” in the traditional sense of the term.

Rule #4 – Listen to Your Customers: Focus on serving your customers’ desires by being customer-centric. Encourage feedback and utilize it as an opportunity to form ideas, and provide solutions that establish and retain loyalty.

Rule #5 – Support Customer Communities: Cult Brands build effective and sustainable relationships with their customers by developing and supporting a customer community which allows users, partners, and company employees to share information, answer questions, post problems, and discuss ideas about product enhancements and best practices in real time. Cult brands also gather their loyalists by organizing occasional social events to ignite additional enthusiasm for the brand.

Rule #6 – Be Open, Inviting and Inclusive: Cult Brands do not discriminate in terms of age, race or sexual preference. As such, everyone who believes in the brand’s mission is welcome.

Rule #7 – Promote Personal Freedom: For most, the Abraham Maslow hierarchy of needs pyramid includes elements of self-esteem and self-actualization. As such, a well-regarded brand will express this as much by promoting freedom which is essential in expressing one’s own unique identity and worldview without fear of consequences.

brand-loyalty-2

In the end: Achieving the highest level of emotional connection via brand advocacy

Cult brands have a fanatical customer base. A culture is created around the brand based on consumers of a niche group. From there, the brand evangelists spread the message and enlist more followers.

When consumers are treated with honesty and delighted by a brand experience, they begin to bond emotionally with the brand. They become brand loyalists and advocates – buying the brand more often and recommending it to others. This behavior serves to build the brand’s reputation. This approach is priceless – even though it may take longer to take positive effect.

That said, innovative products, exceptional services, the total customer experience and the lifestyle which comes with being associated with the brand are what truly makes a cult brand exceptional from competing brands. The key objective is to create a relationship of trust. The world’s powerful brands establish trust and friendship with their customers. They develop emotional capital, and gain passion. This is what makes them great, thus “cult” brands.

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Authentic Luxury Brands and E-Commerce: Incompatible to their Core Values

By James D. Roumeliotis

online-luxury-sales-image

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Definitions of “luxury” vary significantly and depend on with whom you discuss the topic and in what context. The term “luxury” is not the easiest to define. It is relative, mysterious and elusive. In essence, it revolves around subjective criteria, depending who you ask. Irrespective what anyone considers the term, it denotes a privileged lifestyle and a “nice to have” product or experience.

Gary Harwood at HKLM, one of the founders and directors of a leading strategic branding and communication design consultancy, stated: “A luxury brand is very expensive, exclusive and very rare – not meant for everyone. When it ceases to be these things, then it’s lost its exclusive cachet. Commoditizing luxury brands and making them more accessible to the middle market puts them at risk of becoming ordinary, common and less desirable. And the more available a brand is, the less luxurious it becomes.”

Authentic luxury brands compete on the basis of their ability to invoke exclusivity, prestige and hedonism to their appropriate market segments not the masses. There is a classic litmus test:

  • Is the product manufactured in artificially limited quantities? (i.e. the rarity factor)
  • Does the firm have a story to tell? (i.e. history & pedigree)
  • Is the firm portraying a unique lifestyle?
  • Is craftsmanship the hallmark, which delivers products that only High Net Worth individuals can purchase without question?
  • Does the brand offer authenticity?
  • Does it implement an absolutely no discounting policy?
  • Is the product (and at least most of its materials/parts) manufactured only in its country of origin?

Rationale of an absence of “authentic” luxury sales online

Many genuine luxury brands such as Hermes, Chanel and Louis Vuitton are reluctant to utilize the internet to sell their pricey merchandise ─ other than a limited number of more affordable items such as their cosmetic lines, fragrances and small leather goods, as well as their silk scarfs.

There are three major reasons why luxuries brands of this caliber should not sell their products online.

  • Unique business model: The top tier luxury brands such as Hermes, Chanel, Dior and Patek Philippe, amongst other prestige marques, require a controlled distribution environment whereby they determine merchandising and pricing. They are ultra-sensitive in the manner in which their label gets handled. This is why they target and legally pursue third party e-commerce sites vigorously. Moreover, unlike traditional marketing, the mention of price is considered a taboo in the unconventional luxury marketing strategy. In the ideal luxury world, price is not something which should be divulged ─ let alone online. As a golden rule of thumb, the presumptive price should be higher than it really is.
  • Total customer engagement: High-end luxury brand executives firmly and unanimously believe that high-priced and exclusive goods should be viewed and felt in person in a plush and attentive retail environment which attracts their best shoppers. Additionally, the well trained sales staff offer fashion advice and alterations on the spot. Their swanky online presence serves to bring the consumers to their bricks and mortar shops. This approach confirms the answer to this question: Do the well-heeled, who seek exclusivity and personalized experiences with their luxury purchases, want to make their extravagant purchases online such as a $15,000 watch or handbag? Probably not.
  • They are privately owned and operated: Unlike the mainstream market and publicly traded luxury brands such as Ralph Lauren, Coach, Tiffany & Co and others, top tier luxury brands are not eager for volume sales. To retain their scarcity, cache, and avoid diluting their intrinsic value, they refuse to respond to rising demand. They also include a conservative policy of making it more inaccessible to consumers whom they are not targeting. Consequently, with privately held luxury brands, profits are done with the long term in mind, not necessarily the next quarter. In comparison, the publicly traded ones, which are accountable to their shareholders, are constantly under pressure to trim production costs and increase revenues and profits which lead them to cater to a larger audience ‒ the mass affluent. So much for all the elements of ‘genuine’ luxury purveyors who are doing away with scarcity and exclusivity.

Vice president and principal analyst at Forrester, Sucharita Mulpuru-Kodali, stated, “Yes, maybe they could increase sales (through e-commerce).” However, she elaborated, “a brand’s goals aren’t always to increase sales. It may be to preserve the quality of the brand so that it stays in business for another 100 years.

According to David Sadigh, founder and CEO of the Swiss digital banking magazine, “Swissquote”, the share of e-commerce sales in the luxury domain amounts to about 5%.

Authentic luxury brands who are not catering to the mass affluent are in a league of their own when it comes to e-commerce. Having said that, their present conservative strategy achieves its intended purpose. Essentially, when someone acquires an object of desire, he or she purchases craftsmanship, cache, pedigree, created in limited quantities, enhance one’s lifestyle and offer exclusivity ─ the top tier in its domain.  This is a contrast to the “masstige” brands such as Ralph Lauren and Michael Kors, which according to a trend report from PMX – a marketing and research agency, revealed that both of those fashion labels dominated the online market share in their luxury category.

When it comes to authentic luxury sales, every touch point in the purchase process affects brand perception, which in turn makes customer service and presentation vital.

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Enticing the Luxury Home Buyer Through a Holistic Marketing and Sales Approach

by James D. Roumeliotis

Med Style residence

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It is not surprising that luxury home buyers have much higher expectations compared to mainstream home buyers. It is about the amenities and the enhanced lifestyle which comes with the property in an upscale neighborhood. Those buyers also prefer a new home which is in a move-in condition and has an open floor plan alongside a fully automated home environment. Wealthy home buyers also remain attracted to high-end real estate because of a strong perception of value and location.

Another important factor to consider is that luxury home buyers are becoming ever more interested in holistic experiences.

Mainstream vs premium vs a luxury home

Most homes for sale are considered “mainstream”, or “conventional.” Their standards differ from country to country subject to local traditions, construction criteria and bylaws, cost of living, and other economic indicators. These type of homes includes basic amenities for the average population and considered affordable for the working class and middle class.

Premium homes are a better alternative to mainstream homes. They are larger, more attractively designed, built with finer materials, include many upgrades, as well as additional comforts. Moreover, part or the entire home can be custom built as per buyer’s personalized wishes.

As for “luxury” homes, they have it all – location (neighborhood, schools, affluent community), imposing and attractive architecture, high beamed ceilings, plenty of lighting, quality millwork, top end materials throughout, perhaps even a gym, movie theatre, temperature controlled wine room, indoor garage space for at least three to four vehicles, as well as an elaborate layout with a great deal of living space. In some cases, unobstructed views and high-tech home gadgets. Above all, they possess elegance, quality, integrity and are distinct with no expense spared. The threshold for a property to be considered luxury is at least $1 million depending on location. Large urban condominiums are also included into this mix ─ most notably penthouses. Generally speaking, luxury is considered “exclusivity” and what separates an ordinary house and an extraordinary house ─ with classifications such as a “villa”, “mansion”, a “manor”, “estate”, or even a “ranch.”

The art of living – going beyond beautiful homes

Luxury real estate projects should be marketed in similar fashion to what Cartier, BMW or Rolex are achieving. This marketing approach is based on demographic and psycho-graphic analysis which equates to extreme attention to customer experience and demands; integrated marketing across every touch point. The formula is straightforward: the right designer and appliance brand, the right location, the right product, and the right ambiance for the luxury customer. A custom luxury home is incomparable which is designed specifically for a client and explicitly for the location chosen or owned by the client. It resonates with the client’s personality.

Understand what your home offers which is unique to its competition. There is an emotive component of any luxury purchase. Create a display area on the property that allows your potential buyers to have the emotional experience of what living in the residence would be like. It is all about evoking and engaging the potential new owner. Creating a sense of a desirable lifestyle. Seduce and dazzle your clients with the emotional “wow” factor. Create an experience. Very good examples of this are the marketing techniques applied by luxury real estate brokers Sotheby’s International Realty, Christie’s International Real Estate, Savills (U.K.), as well as New York City luxury condominium project maven, Michael Shvo. The theme is the same: dazzle them and emphasize “lifestyle.”. This helps in spreading the word. Associate the property with renowned names/brands/designers as part of the cachet. That’s what helps trigger a sale and at prices beyond what one would expect to pay for the property.

New York by Gehry Lifestyle Photo

“Irreplaceable Property Marketing” ─ Unique & Hard to Emulate

Make the look and experience authentic with the impression that it’s irreplaceable. People want to feel they own something that has a personality and a story. This entails more than just the usual appliance upgrades or other high-end amenities. It is also the staging of the appropriate furniture making the prospective home buyer feel at home and envisioning himself or herself what it feels like living there. Doing so requires applying the art of elegance, art, culture and design along with a touch of pizazz. The key to a successful sale with a high-end property is to offer something the buyer is not able to find elsewhere.

New developments and modernized properties should be design conscious and unique – able to cater to the discerning as with single detached residential homes. They ought to be promoted and presented with panache, flair, and hype but tasteful. A professional marketer, with refined brand image skills and savoir-faire in the luxury real estate domain, can develop and execute a strategy that will make the project and its identity speak on its own. Branding is not a logo, it is a perception in the mind of the consumer about the personality of a company and what it stands for. With a favorable brand name, which in essence is “reputation”, attracting and making the sale requires less effort.

Seductive marketing: Demonstrating the properties by unconventional methods

New York City entrepreneur, luxury real estate broker and diplomat Paolo Zampolli applies novel methods of promoting and selling his listings while offering his high net worth clients the first-rate treatment. He hires former fashion models as his assistant agents touting exclusive properties ─ or taking them onboard his yacht, by way of the Hudson river, for clients to view their potential properties. His creative mind takes it one step above, literally, as he hires a helicopter to give the prospective buyer’s spread a bird’s eye view.

Raymond Bolduc, the top real estate agent with Sotheby’s International Realty in Florida, believes that closing a deal requires throwing a party. As a means of advertising and promotional exposure, he creates attention by hosting lavish social events at his multi-million-dollar home listings to lure in prospective buyers. He does so with panache complete with luxury cars ─ and yachts if it is a waterfront property.

The following marketing channels should be considered to increase the exposure of the properties for sale.

  • Global websites
  • Glossy print campaigns
  • Newspaper inserts
  • National media coverage
  • Advanced social media platforms
  • Mobile technology

In the end

Since luxury home buyers are inherently wealthy, they should be approached and sold to differently. That said, property consultants/real estate agents should be well trained and very knowledgeable in sales, marketing, as well as thoroughly familiar with the unique properties they sell. They also retain client confidentiality and avoid conducting typical open houses to ward off the curious public since multi-million dollar homes demand pre-qualified buyers only.

Luxury home builders and real estate agents should focus their marketing activities to well-heeled and tech savvy Millennial buyers who seek turn-key homes that are eco-friendly, smart wired and cater to their busy and connected lifestyles.

As Lew Geffen, the Sotheby’s International Realty partner in South Africa, states in its marketing collateral,Property marketing is essentially ‘Show Business’ but Sotheby’s International Realty has aimed at ‘theatre’ ─ with all the levels of drama and passion the brand is fully capable of carrying.”

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Catering to a “Luxury Lifestyle”: Definition and Execution

by James D. Roumeliotis

Yacht Lifestyle Shot from the Air

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A “luxury lifestyle” denotes a way of life which is pleasantly enhanced through well crafted products and exceptional services. These include dining at the best restaurants, lounging in the finest hotels, dressing in premium and bespoke clothing, wearing jewellery/watches produced in limited quantities, possessing and driving the most extravagant cars, traveling to exotic destinations, and playing with the most sophisticated tech products – amongst others. Needless to say, those consumers are connoisseurs of the finest products and services money can afford them.

According to a white paper and survey, conducted by the prestigious consulting firm McKinsey & Co., it indicates that there is no widely accepted definition of “luxury lifestyle.” It goes on to say that Attendees of the 2012 Financial Times Business of Luxury Summit suggested the following definitions: “a way of living,” a set of “attitudes and values,” or specific “consumption habits.”  Consumers interviewed in London, Milan, Munich, and Paris gave equally diverse definitions. Some offered a broad perspective (“a way of being, dressing, behaving” that “sets you apart from the rest”); others referred to particular products, brands, and experiences (“staying at nice hotels”); still others took a cynical view (“it’s just brand names, that’s all” or “it’s marketing”). Its interviews with senior executives from luxury- goods companies such as Harry Winston, Hermès, and Roberto Cavalli yielded yet another varied set of definitions, including “embodying the lifestyle of an iconic designer” and “offering a holistic brand experience.” Although they all defined the phrase differently, 70 percent of the executives they interviewed said they regard their brands as luxury-lifestyle brands.

A company can define itself as a lifestyle brand when its products promote more than a product with key benefits and attributes. However, lifestyle branding is more than just promoting “a way of life.” It is a product or service that provides consumers with an emotional attachment to the lifestyle of the brand. Take Versace, for example, which besides its fashion apparel and accessories also has hotels, home furnishing/décor, linens, beauty and more. Giorgio Armani also has his eponymous name on hotels, furniture, fashion, jeans and beauty. From these two fashion icons, we can certainly surmise that they have a legitimate claim as “luxury lifestyle” purveyors.

Developing the luxury standard of living through desirable customer experiences

Lifestyle branding is more than just promoting “a way of life”. it is a product or service that provides consumers with an emotional attachment to the lifestyle of the brand. think of Ralph Lauren and you can readily see it is not about the clothes. it becomes an attachment such as the sports car brand Porsche to an exclusive club in which you can be a member through emotional identification through use of the products in question. Smart companies understand these principles and look to keep the customer engaged. By doing so, they clearly forge the sort of long term relationships, which become the envy of their designated sector.

The “Total Customer Experience” is the sum total of the interactions that a customer has with a company’s products, people, and processes. It goes from the moment when customers see an ad to the moment when they accept delivery of a product and beyond.

The experiences customers go through with a purveyor of luxury determine the ultimate perception of its brand and image. Customer experiences also spread the word (offline/online) to others (friends, relatives etc.) about your brand. That said, each customer contact (“touch points”) should be handled with the utmost care to ensure that the total brand experience a person has is constant.

Lifestyle brands develop emotional attachment

Brand loyalty is about building an emotional, and in some cases, irrational, attachment in a product. The most ideal examples are the diehard brand enthusiasts and early adopters who must get their hands on the latest iPhone or iPad. This happens because Apple has built an emotional attachment to their products by creating a lifestyle choice rather than a product purchase.

It’s about how it makes you feel. Same goes for baby boomers, whether accountants or attorneys or business executives who purchase a Harley Davidson motorcycle and ride them for about four or five hours every Sunday afternoon. The bike makes them feel like a rebel – sort of an escape.

A brand that is designed for a lifestyle should have a much higher emotional value to consumers than one based on features like cost or benefits alone. The goal of a lifestyle brand is to become a way that people can utilize it to relate to one another. Those brands are an attempt to sell an identity, or an image, rather than a product and what it actually does.

Lifestyle brands have gained an increased share of the luxury market such as BMW, Armani, W Hotels, Louis Vuitton and Rolex ‒ just to name a few. These have given way to consumers to buy products that they associate with a “luxurious life.” They are essentially a status symbol.

The luxury lifestyle in the services domain

In the category of “services”, the luxury lifestyle is all about execution in delivering an exceptional experience with pizzazz to the discerning ─ whether it is a bespoke travel excursion in an exotic place, producing an exceptional dining experience or organizing an over-the-top event, each one ought to create a pleasant memory which would want to be repeated.

A successful service related luxury lifestyle exists when the following take place.

– Delivered with passion
– Exclusivity
– Discretion
– Exceeding expectations
– Seamless
– Refined
– Posh
– With attention to detail

Consider American Express − most notably for its “by invitation only” Black/Centurion card. For hotels, worthwhile mentions are the Hotel Plaza Athenée, the Four Seasons (including its private jet tours), the Ritz Carlton, and boutique hotels Hotel du Cap and Hotel de Crillon to name a few prominent ones. They splurge and provide the perfect luxury experience with outstanding service, exclusivity, and pedigree.

Exclusive and bespoke travel companies provide tailor made adventures and excursions. The four key players in this category include: Abercrombie & Kent, Kuoni Travel, Orient-Express and Cunard Line. Broadening our view of luxury services, certain firms offer services and privileges to a rare percentile. Such services include fractional jet ownership such as NetJets and FlexJet, as well as global concierge services such as Quintessentially.

In the final analysis

Whether offering a product or service, it is how a luxury brand delivers an experience that distinguishes it and makes it stand-out from the mainstream. In essence, it’s a holistic approach.

Luxury lifestyle brand offerings should be constantly refreshed, giving discerning customers a reason to repeatedly do business with the brand. Tiffany & Co., decided to undergo “investing in the theater of shopping in its stores”, as its CEO Frederic Cumenal implied as regards to the renovations of its largest store ever which it opened in China.

Selling a distinct lifestyle is what discerning clients crave and gladly relate to. Organizing exclusive by-invitation-only events should be considered. Exclusive events make one feel notable. For example, Italian sports automaker Maserati invited a select number of brand loyalists to a new experience in Europe that gave them the opportunity to sail on-board the 70 ft./21,3 m Maserati sailboat. In addition, they drove models in its current range including the new Maserati Gran Turismo Sport model.

In the end, living the luxury life is irresistible to many from every range of background and nationality. The temptation includes the aspirational affluent.

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Filed under 1, Business, description of luxury, discerning clients, discriminating clients, lifestyle marketing, Luxury, luxury lifestyle