Luxury Brand Development, Management and

Internationalisation

Dr. Satyendra SinghProfessor, Marketing and International Business

University of Winnipeg, Canadas.singh@uwinnipeg.ca

www.uwinnipeg.ca/~ssingh5

The Concept of Brand Development:Add value first

Then, we’ll do positioning, pricing, branding and communication around the value proposition.

Commodity Goods Service Experience 1₡-2₡ 5₡-25₡ 75₡-$1.5 $2-$2.50

Sources (messages) of value to the brands

• Mercedes Engineering, sophistication and safety• MBW engineering and driving• Nike Performance• Starbuck Best coffee experience• FedEx Overnight• Harvard Leadership skills• MIT engineering and management• 3M Innovation• Luxury Dream!! Which dream? You can brand anything e.g. water, yourself…

Lamborghini bicycle:$25,000 -- Lightest

Franck Muller:Master of Complications

24 Complications

Celestial map, do we need it?

900 parts in luxury versus 90 in ordinary, or 0 in electronic watch

Black Credit Card

The Luxury: The Dream Club

The Luxury: The Desire

You pay $5000

Limousine ride, hovering photographers

red carpet, 4 hysterical fans… Can you imagine?

Characteristics of Luxury BrandDream a dream with value

Create exclusive club

Functional GivenExchange Last long, can outlive youEmotional You adore it, source of joyMythical There is something about itEthical Links to social responsibilityIdentity Convey something about you

Brand Content

To sustain brand imageTo be the leader, set trends↑ functional and emotional value

How do we do itEducate customers History and heritageInterviews, fashion shows, manufacturing process Link brand to communityShow social responsibilityGucci (mrf process), Chloé (fashion show) www

Brand Identity

Levis Jeans with distinctive labels

Missoni Knitted fabric in a special way

Toblerone Chocolate, red/yellow packaging

Tod’s Moccasins (shoes made from deerskinvery soft, single piece of leather

Ferrari Red automobile

LOGOS play important role in forming brand identity

Luxury Brand and Social Responsibility

Nike Just do it Surpass your determination

Mont Blanc UNICEF

$10,000 for a dinner ticket

Rich compete to donate!

Singer Bono’s brand in Africa

Louis Vuitton Foundation: Contemporary art museum

Luxury Customization – Rich like itProduct

LV : choose colour and materialPoint of delivery

Bring receipt to customer, engrave their nameShopping experience

Assistance to old people, spl invitation, discountCustomization online Online interaction

Shop with a friend live video chat assistance Sales $20m $60m

Online Product Display50% of luxury brands are online now

Virtual mannequins 360 degree pictures

iSmell software You can smell the product on your computer

10Cs of Luxury Fashion Online Marketing

Customer value Satisfaction

Convenience

Cost

Communications Faster and targeted

Computing Able to track online

Customer franchise Trust, live assistance

Customer care

Community Social network

Content

Customization

Luxury Logos Simple

Japanese like logos more space for logos

Europeans do not like logos on tie; US ok

Icon apple

Indices relationship (smoke means fire)

Symbols Ambiguous (Lion on Venice flag)

Numbers, animals, initials, monograms,…

Luxury Brand HingeNorth European Classical type

Clear lines, contours, saturated colours, closed… shape, entirely visible

Jil Slander, Ikea, Helmut Lang, BMW

USA Calvin Klein, Donna Karan

Mediterranean Brands baroque typeCriss-cross, open, exaggeration, line shadows…

Loewe, Ferragamo, Doice and Gabbana, Rubell, Majorica, Lamborghini, Versace, Ronerto Cavelli

Internationalisation: Luxury Brand① Create brands visibility awareness,

Expand product line, men women

② License abroad 1st perfume then fashion

↑ advt for perfume ↑ brand awareness

③ Open flagship stores in big cities abroad.

Balance Merchandise bw COS & franchisee

④ Buy back franchisee. Get new balance.

Internationalisation by Brands

LV USA, Germany, Italy, Spain

Burberry, Prada China

Audi China: Chinese officials, made-in-China

Hermés Shang Xia

…

International Luxury Brand Management

Brand development

Initially one product line extensive variety and colour

Brand registration

Register brand in few countries first

$2,000 - $3,000 per brand (lawyer fee, tax…)

If target 100 countries $200,000 - $300,000)

Registration renewal

Show proof of usages, or counterfeit operator

Usually 20%-30% brands need renewals

Brands Become International When

$50m sales are reached

50% of public knows the logo

New category is developed successfully

No longer advertisement is needed to sell

Brand outlives investor eg, 3rd generation

Brand is present in USA, Europe and Asia