honey gifting doug james packaging innovation seminar 2011
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How to grow luxurybrands fast.Doug JamesMD Honey.co.ukStuart GatesAssociate DirectorLevercliffYou would think that, with all the talk of hard times from hereuntil the seas freeze over, the one sector that would really suffer would be gifting, the passing of apparently frivolous and unnecessary products from one person to another.But some trends are up. At one end, top end London storesare showing serious profit returns. At a more modest end,people are spending 15% more on a bunch of flowers thanthey did three years ago and sales of chocolate selectionsare expected to rise by 17%.This is not a coincidence. In hard times, people seekcompensatory gifts or self-gifts to make up for other, moreexpensive treats being unattainable. There are, of course,still a few whose natural habitat is Kensington andNotting Hill and have no money concerns. They neednot concern us today. There will always be people that travel first class!We are defining luxury as the frivolous, unnecessarypurchase. Unnecessary from a practical point of view,that is, but highly necessary from an emotional point of view.But, like any market, there are no easy pickings.Say luxury and you think of art for art’s sake.Not a bit of it. You still need rigorous segmentationand targeting. Get it right and opportunities liein several areas.Self GiftingA small compensatory gift will ease the pain when you can’tgo out to dinner, can’t buy that dress, have to shop carefully.Home GiftingYou only have to look at the increasingly desperate 2 for 1 offersfrom the restaurant chains to know that there’s a shift to eating in.Many have discovered that you can have a great and indulgentevening in for a fraction of the cost of eating out.Ego GiftingWe all have egos and there are great opportunities to profitfrom markets that set out to flatter. It only succeeds, however,if the aura round the offer is powerful. Think Fortnum’s,then think Aldi.Tourist GiftingTourists are people and many of those people have taste.And money. With the weaker pound and the increase in BRICtourists, there are great opportunities to create somethingdefinitively British but classy. We just wish someone wouldtell the 2012 Olympic shop.The key to success is to remember that it’s personal, betweenyou and the customer, between the customer and the recipient.If everything about your product and your service reflects this,you can make a lot of money.Honey - Commercial Brand Partners:Commercial Planning, NPD Innovation, Branding, Design, Digital and Marketing.6 DBA Design Effectiveness Awards in 3 years, makes Honey the UKs most successful new agency [email protected]+44 (0)20 7354 4150 honey.co.ukTRANSCRIPT
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Before we get to the interesting stuff,a bit of legal info about ownership:
Copyright Honey 2011.
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• Differentiate• Care• Can do• Human contact and dialogue• Knowledge and specialisation• Clear & simple proposition• Create a strong relationship• Accountability
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Sales up 34%
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Sales up 162%
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Sales up 200%
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Sales up 240%
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Sales up 43%22 Trademark, copyright, and image rights of Honey 2011 & or each individual brand owner, refer to page 2 of this document
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Doug James MD Honey [email protected]
Stuart GatesAssociate directorLevercliff [email protected]
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