Category Archives: niche marketing

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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The Ultra Luxury Purveyors: Lessons from brands catering to the wealthiest one percent

by James D. Roumeliotis

Luxury Couple - Private Jet

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Several years ago, I had the privilege of working on-board the 147m/482 ft Saudi Royal family yacht the “Prince Abdul Aziz.” It was a first-hand experience with the wealthy 1% and was quite an eye-opener.  A typical day with its owners consisted of shopping at Gucci, LV, Hermes and Bulgari when we made port regardless of location in the Western Mediterranean region. The 25K euro daily average shopping splurge prompted the support staff to purchase large suitcases or trunks to be used as temporary storage. Not surprisingly, given the situation among visiting VIPs and royalty, this was the norm.

Given my professional métier in luxury brand management, I realized that this target audience belonged to a category distinct from any other which are labelled as the One Percenters.

The frequent conspicuous consumption was considered a normal occurrence for the Royalty and its VIP guests as were the elaborate prepared meals devoured that would make the mainstream cringe.

Who on earth are the one percenters?

Along with Sheikhs and Princes, HNWI (High Net Worth Individuals) are considered, by luxury marketers, as the elite segment of the market. According to the Capgemini Wealth Management World’s Wealth Report 2018, it defines HNWIs as those who possess at least US$1 million in financial assets. On the other hand, there are the ultra-HNWIs or UHNWI as those who hold at least US$30 million in financial assets, with both excluding collectibles, consumables, consumer durables and primary residences. The report states that following a robust growth of 8.3% in 2010, the global population of HNWIs grew marginally by 0.8% to 11.0 million in 2011. Most of the growth can be attributed to HNWIs in the US$1 million to US $5 million wealth band that represent 90% of the global HNWI population. The top three countries, U.S, Japan and Germany, retained 53.3% of the total share of HNWIs

Clearly, One Percenters have different expectations and experiences than the rest of us. Here are just a few of this target audience’s distinguishing traits:

–       They are better educated;

–       Have traveled more (and continue to do so);

–       Own one or more successful business and/or inherited their wealth;

–       Possess investments mainly in real estate, stocks and bonds;

–       Are avid connoisseurs of the fine arts/cultural events and vintage/wines;

–       Own top quality merchandise: elaborate homes, exotic cars, bespoke attire, as well as seek services which cater to their discernment;

–       Have explored plenty more in their lives due to their significant disposable income/wealth.

In a recent American Affluence Research Center report, its founder and researcher, Ron Kurtz recommends that: “Luxury brands and luxury marketers should be focused on the wealthiest one percent because they are the least likely to be cutting back (during tough economic times) and are the most knowledgeable about the price points and brands that are true high-end luxury.”

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.

The preeminent luxury brands remain top of mind with the HNWI/UHNWI

When the premium plumbing brand, The Kohler Company, introduced the ultimate toilet fit for the well-heeled, it developed a contemporary industrial design that would make Apple glow with envy. Numi, as the model was baptized, includes technology and engineering that is unconventional with most toilets as we know them. Its features include, amongst others, ambient lighting, a bidet, foot warmers, a seat warmer, music, lighting, and hands-free flushing – which are all controlled through a remote which, with a press of a button, also lifts and lowers the lid. All this can be had for a mere $6500.

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 HNWI/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.

Some of the most prominent companies that cater to the 1% include:

LVMH Moët Hennessy ‒ Louis Vuitton S.A (French conglomerate that owns a legion of luxury brands including Louis Vuitton, Marc Jacobs, Fendi, TAG Heuer, and Dior cosmetics among many others and in various categories), Chanel, Hermes, PPR/Kering (owns controlling shares of Gucci and Yves Saint Laurent, among others), Richemont (owns the prestigious Alfred Dunhill, Cartier and Montblanc brands along with many others), Rolls Royce Motors, Bentley Motors, Bugatti Motors, Rolex, Patek Philippe, Goldman Sachs, Gulfstream, Sotheby’s, Bulgari, Tiffany & Co., and Harry Winston to name a few.

Luxury service brands follow a similar pattern. 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.

How the luxury purveyors reach, cater and retain the 1%

Studies over the years have shown that the HNWIs/UHNWIs travel frequently and usually do so on a private jet. It’s also a fact that emerging markets from commodity rich countries such as Brazil, Russia, India and China, have a tremendous amount of new ultra wealthy citizens that can’t be ignored.

Reaching them is not easy. However, following are several approaches the prestigious luxury brands are utilizing.

–       Target them in their gathering places in major cities where most UHNWIs reside – London is such a prominent location;

–       Sponsor and/or advertise where the HNWI/UHNWI meet and play such as prestigious golf clubs, polo events etc. Rolex supports prestigious sporting and cultural events all over the world including tennis, the arts, golf tournaments and yachting.

–       Advertise in private jet terminals worldwide called Fixed Base Operators (FBOs) ‒ facilities that handle non-scheduled flights. One such opportunity is in Davos (Switzerland), towards the end of January, where the World Economic Forum is held. There are also magazines, such as “Privat Air” which are published specifically for private jet travelers. In 2012, there were over six million private jet flights. It is, undoubtedly, a targeted audience where one reaches the ultra-wealthy family together – which may be discussing a product or service you may be offering. Swiss watchmaker Audemars Piguet had several helipads with their logo located on Manhattan’s 34th Street.  The helipads included paintings of their watches which functioned as landing markers.

–       Meet and woo its discerning target customers at high profile industry shows and events. Burgess Yachts, for example, participates at the annual Super Yacht Show in Monaco which draws the well-heeled shopping for a multi-million dollar yacht.

–       Hone in cities where the ultra-wealthy normally visit for the finest luxury shopping experiences – mainly Milan, Paris and London with their shops on prestigious avenues;

–       Are promoters of good taste and the arts which is what the super-rich equally enjoy;

–       Make an effort to approach/communicate with influential members of entourages such as drivers, personal assistants, pilots and bodyguards;

–       Advertise and contribute content in prestigious lifestyle magazines which cater to the ultra-affluent including Amex’s ‘Departures’ magazine, ‘Worth’, ‘Elite Traveler’, ‘Monocle’ and ‘Burgess’ amongst others.

–       It goes without saying that successful brands have an online presence/visibility including a clean looking and engaging website, along with a carefully targeted social media existence to build long term online awareness, loyalty and value for the brand.

Along with what the prestigious brands are doing to attract the top spenders, consider creating an exclusive/”members only” online club/site. Moreover, if you’re offering products, boasting about artistic development by engaging with them and encouraging a visit to your atelier to witness your product being crafted. Videos should also be considered for viewing online.

Research where the wealthy neighborhoods are worldwide by using demographic data.  This information reveals everything from median income and age, educational levels and consumption statistics.  Demographic data also helps improve target marketing and advertising.

Sell a distinct lifestyle which is what discerning clients look for. Be in the forefront of creativity and have all your staff, regardless of department/responsibility, as your brand ambassadors.

Occasionally, organize exclusive “by invitation” events as a patron appreciation gesture. Being invited to an exclusive event makes 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.

Create/publish an upscale lifestyle magazine, every other month or quarter, which should include noteworthy information on the brand and the arts, as well as the causes it supports – in an environmentally friendly print format, along with a digital version. The Bentley motors magazine is a good case in point. The layout, choice of articles/stories and advertisers reflect the tastes of its existing and potential customers.

Helipad Ads - Luxury watches

Removing some of the guilt of ostentatiousness

Corporate Social Responsibility or CSR, along with sustainability issues, is a trend increasingly practiced in the luxury domain to send a message to their audience that they it cares. This is communicated through sponsorships, advertising, public relations, their websites and other media sources. The message conveyed is to enjoy guilt-free ostentatious purchases where part of the purchase price is donated to a worthwhile cause. Louis Vuitton uses celebrities in its advertising campaigns whose fee goes to charity.

Any business which is willing to get involved in social causes to impress its target market should make a genuine effort genuine, as sophisticated consumers can tell when it doesn’t come across as a genuine effort

Putting it all into perspective

In the United States, the top 1% possess 40% of the wealth; it 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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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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