In addition to my published blog on 28 Feb, I would also like to answer to the last question at the end of the story 'And what else heal the world?' The answer would be that sustainability, ethical conduct as well as CSR should also be taken into account within the design and service of luxury brands strategy in order to maintain the world's longevity.
More luxury brands have started to put themselves in philanthropic commitment. First to be considered is the company objectives responding to the current powerful trend of 'ECO-EVERYTHING'. Therefore, the objectives generates marketing strategies which can be measured vice versa.
When the brand apply Green Marketing as its strategy, the brand takes an opportunity to educate and engage its customers regarding the issue they concerned about (Ottman, 2011).
Gucci Group together with PPR contributed €10 million per year for sustainability initiative titled PPR Home. PPR is the collaboration of high growth global brands (For more information, please go to www.ppr.com). Following is what PPR Home is responsible for (PPR, 2011);
• Creative Sustainability Lab launched through partnership with Cradle-to-Cradle® to re-think and re-consider product and business development • Offset of 2010 global CO2 emissions from PPR’s Luxury group, PUMA and PPR’s headquarters • Initial steps by PUMA towards first-ever Environmental Profit and Loss (EP&L) account statement • Annual €10 million budget indexed to dividend evolution
In other words, PPR website indicates that PPR Home focuses on setting a standard that reflects the new business practice which respond to innovative and sustainable economic model in Luxury, Sports&Lifetyles and Retail sectors.
Objectives alone impossibly complete the philanthropic commitment but marketing strategies are the directions.
"Chanel announced the launch of their Winted software, developed alongside Evea, for the use of packaging companies operating in the cosmetic market, to help implement eco-design practices and facilitate the development of more environmentally friendly solutions." (Doran, 2011)
Michel Dupuis, director of purchasing and packaging development strategy, said to Premium Beauty News that this innovation in packaging enhancement helps preserving the environment and creating a greater-good nature to the society.
The collaborative program between Giorgio Armani partnership with Geneva based Green Cross International is another strategy through the use of sponsorship. The collaboration intends to promote a clean drinking water. As I have mentioned before about the exclusivity and the use of rare ingredient from the sea of some luxury facial cream, it works just the same way as well for a clothing business that designers use sea leather or fine organic wovens.
"For every bottle of Acqua Di Giò and Acqua Di Gioia sold, Armani will provide 100 litres of clean drinking water per year to children and their communities, raising consumer awareness through the Acqua For Life campaign." (Doran, 2011)
With sustainable objectives and innovative marketing strategies which truly contribute to a better environment, I believe that Luxury brands will no longer be called selfish.
Bibliographies:
Doran, S. (2011). Luxury, Sustainability, PPR & Chanel. Available at: http://luxurysociety.com/articles/2011/03/luxury-sustainability-ppr-chanel (accessed 7 April 2011)
PPR An Adventure of Enterprise (2011). PPR Group's Sustainability Initiative PPR HOME to Set New Standard in Luxury, Sport & Lifestyle and Retail Sectors. Available at: http://www.ppr.com/en/press/press-releases/ppr-groups-sustainability-initiative-ppr-home-set-new-standard-luxury-sport-lif (Accessed 7 April 2011)
The Sustainable Luxury Forum (2011). PPR Group's Sustainability Initiative PPR HOME to Set New Standard in Luxury, Sport & Lifestyle and Retail Sectors. Available at: http://www.sustainableluxury.ch/?p=1888 (Accessed 7 April 2011)
Ottman, A. Jacquelyn (2011). The New Rules of Green Marketing.Sheffield: Greenleaf Publishing Limited.
In light of collaborative branding product, there are generic strategies available; for instance, co-branding, line extension and brand extension. However, these strategies are not specific enough to apply effectively to the collaboration among luxury brands.
Later, a more specific strategy which enhance collaboration branding has been created and vary into three categories; Marriage of equals, The Child, and Toe in the Water.
According to my final project; Hermès & Bentley 'La Debutante Series', I have applied a more specific strategy which I considered as more suitable for the collaboration between Hermès and Bentley which is called 'The Marriage of equals'. Saying so, it is the collaboration between two brands that are in the same level in their respect industry, suitable match of the brand perception and image. In addition to this case, Hermès has known for its exclusivity finest silk and leather bags while Bentley has known for its stylish and longevity of motor. Both brands are ranked in luxury class products which a large group of their target market guarantee their quality and famous.
As I have some fans on this page so I'd like to share with you my ideas regarding my business plan. Following is just some part of my report which I think it is useful to share.
Benefits & Drawbacks
With respect to the collaboration between Hermes and Bentely, there is firstly little in the way of risk given that the functionality of the product is dependent on Bentley and the product will simply build upon an already existent car model with the only aspect of change being the interior and exterior colour. The risk is further lowered as interior leather will be ‘safe’ and classic colours rather than niche colours such as Bentley’s previous ‘pink model’. In addition, the market itself is accustomed to Hermes collaborating with automakers, evident in their collaboration with Bugatti. Bentley on the other hand are also known to release limited editions models therefore the product is not an alien concept to either company.
The risk is further lowered due to the manner in which the product will be marketed in a ‘secretive’ and exclusive manner which will preserve the notion of luxury and exclusivity, as a result, in the event of the product not being a success, both organisations will be able ‘gloss over’ the product swiftly before any damage is sustained.
Justification of Hermes and Bentley collaboration
In light of these issues and the similarity and parallels in brand DNA, Hermes and Bentley have the potential to offer a highly luxurious yet different product. In this respect, the product in question is a Bentley car with a Hermes designed leather interior. As such, the product represents the pinnacle in motoring coupled with the ultimate refinement within the interior of the car. In addition, the success of Hemes previous venture into the automobile industry saw them team up with Italian ‘super car’ manufacturer Bugatti to great success and mutual benefit for both companies and therefore provides evidence as to the effectiveness of this new collaboration (Bugatti 2008).
4 Ps: Hermes and Bentley
A number of authors emphasise the importance of setting objectives and whilst it has been established that both brands have a strong and clear brand DNA, it is in fact the product which requires development, planning and marketing. As a result, the ‘4 Ps’ framework has been used to determine an appropriate direction for the product whilst also making sure that the product retains the image and perception of its two parent brands. In order to so do, the 4P framework examines the product itself, its intended audience, the cost and the way in which it is to be marketed, which are all factors which will assist in retaining the exclusivity of both Bentley and Hermes.
Product: the product itself will be a highly luxurious one, with the interior crafted from the finest Hermes leather. Unlike Bentley’s previous Mansory Vitesse, the new model will be in Rose model together with snake skin interior, this car will not have any particular niche colour scheme, opting instead for a timeless cream leather finish. The interior will be available in cream variant, which any Hermes enthusiast will recognise as the colour which is one of the most popular shades of best selling Hermes ‘Birkin’ leather bag. In addition, the product will be totally differentiated from previous and existing Bentley ranges, as it will exude a higher degree of style and femininity. The product is not going to be a ‘shock’ product or one that is obviously glamorous; rather it will exude a sense of style in its muted colour tones and fresh colour. The exterior will only be available in one colour with the main theme of the car being ‘Upper East Side’ (New York glamour, high fashion, exclusive, old money). Given the fact that the product is aimed at ‘old money’, there will be little in the way of ‘bling’ and any other ostentatious, loud materials instead opting for a fresh, feminine and opulent image.
People: the vehicle will be targeted exclusively at females aged between the ages 18-25 and those who fall specifically within the ‘La Debutante’ category. Whilst the target audience do have access to a disposable income, it is assumed that the product will be given to them by their parents as a birthday, graduation or even a debutante gift. The young ladies will be stylish, fashion conscious and most of all have a flair and passion for luxury and classic luxury brands such as Hermes. Fictional characters such as ‘Blair Waldorf’ from ‘Gossip Girl’ are the inspiration behind such as product and therefore the direct target, as they represent or embody the product’s refined yet youthful energy.
Blair Waldorf
Price: The product will be priced like all Bentleys, in fact, no discounts will be offered in order to avoid diminishing brand value, the brands do not want to appear to have collaborated on a ‘gimmick’or‘cut-price product’. That said however,incorporating luxury pricing principles asserted by Chevalier and Mazzalovo (2008), in order to communicate luxury, the product will be priced cheaper than it looks but still within the luxury price bracket.
Promotion: in order to perpetuated exclusivity and luxury, the product will not be advertised in popular media, rather the technique of product placement will be used in popular TV programs such as ‘Gossip Girl’ which will target the product’s key demographic- young fashion conscious ladies who aspire towards luxury and opulence. Furthermore, the product will be featured in high fashion publications such as Vogue, ideally in a fashion related context e.g. being used in a photo shoot. The product will primarily rely upon word of mouth promotion however in keeping with the brands and brand values, the car will be unveiled in a limited number of exclusive invite only events.
Miss Olivia Palermo
As such, invites will be sent to Bentley enthusiasts who have a history of purchasing with the company whilst Hermes will also target a select clientele. A key component of the events will be a familiar ‘celebrity’ face, who in this case happens to be socialite and fashion devotee Olivia Palermo. Miss Palermo embodies the product perfectly whilst also possessing the key features of the target group; old money, fashionable, feminine, flirty, refined, subtle glamour, classy, stylish and most of all is Miss Palermo’s appeal to the target demographic. The launch events will be shrouded in secrecy in order to further perpetuate a notion of exclusivity which is in keeping with the two luxury brands. The events will be held at key destinations which are in keeping with the product, old money and style, locations such as Paris, London, Monaco, New York, Abu Dhabi and Dubai will therefore be ideal locations to promote the product and stage luxury events.
Conclusion
In light of the compatibility and similarity between Bentley and Hermes, collaboration between the two would appear to be successful. This goes beyond the fact that they are both luxury brands and instead rests on the similarities of their ‘brand DNA’. In this respect, a collaboration between the two would indeed reflect a ‘marriage of equals’ in that they are both leaders in their respective fields especially when one considers the high level of opulence and luxury offered by the respective brands. A Bentley shell and engine with the refinements of Hermes on the interior offer the refined ‘debutant’ a product which encapsulates the best of both worlds and a level of luxury which is unparalleled.
Bibliographies:
Aaker, D.A. and Keller, K.L. (1990), “Consumer evaluations of brand extensions”, Journal of Marketing, Vol. 54, January, pp. 27-41
Gentry, J. W., Putrevu, S., Shultz, C., & Commuri, S. (2001). How now Ralph Lauren? The separation of brand and product in a counterfeit culture. Advances in Consumer Research, 28, 258–265
Hauck, W.E., and Stanforth, N. (2006) Cohort perception of luxury goods and services, Journal of Fashion Marketing and Management, Vol.11 [2], pp175-188
Husic, M. and Cicic, M. (2008) Luxury Consumption Factors; Journal of Fashion Marketing and Management, Vol.13 [2], pp 231-245
Kapferer, J.N. and Bastien.V. (2009) The luxury strategy: break the rules of marketing to build luxury brands, Kogan Page
Kotler, P. and Armstrong, G. (2010) Principles of Marketing, Pearson
James, D. (2005) Guilty through association: brand association transfer to brand alliances; Journal of Consumer Marketing, Vol.22 [1], pp14-24
Nia, A., & Zaichkowsky, J. L. (2000). Do counterfeits devalue the ownership of luxury brands? Journal of Product & Brand Management, 9, 485–49
Nueno, J.L. and Quelch, J.A. (1998), “The mass marketing of luxury”, Business Horizons, Vol. 41 [ 6] pp. 61-8.
Okonkwo, U. (2007) Luxury Fashion Branding: Trends, Tactics and Techniques, Palgrave Macmillan
Phau, I. and Prendergast, G. (2001), “Consuming luxury brands: the relevance of the ‘rarity principle’”, Journal of Brand Management, Vol. [2], pp. 122-38.
Roux, E. (1995). Consumer evaluation of luxury brand extensions. EMAC Conference, May,ESSEC, Paris, France
Weidmann, K.P., Hennigs, H., Siebel, A. (2010) Value Based Segmentation of Luxury Consumption Behaviour, Psychology and Marketing, Vol.26 [7], pp 625-651
The design-thinking emerges from innovation process which emphasizes on human observation, collaboration, fast learning, visualization of ideas, rapid concept proto typing, and concurrent business analysis. It encourages closely collaborative and integrative thinking across every function within an organization; designers, merchandisers including businesspeople and consumers. The design thinking reflects the launching of future product, service, and business model (Lockwood, 2009).
The design-thinking process allows designers and marketers to explore what their clients want with regards to their product and service. In addition to this, company can play safe and exploit design-thinking strategy once launching a new product and service and be able to improve towards radical innovation and maximize their company values. Since the actual users really involves in an early stage to evaluate a particular concept offered, it is likely that the final product/ service will be accepted by their target group. Conversely, if the users do not satisfy with the concept then it is a high possibility that the idea will be abandoned. According to what was mentioned previously, having actual users involves in the research stage helps company safe cost of oversupplying unwanted demand, a waste of marketing costs as well as carefully improve and work closely more on product/service that creates the new solutions to serve clients’ needs.
In lights of service design, it is physically untouchable, complex, different touch point (new technologies, new relationships with customers, and new revenue models); hence, it is advisable to marketers to make intangible become tangible especially in a visualized way (Lockwood, 2009)
“Design management is primarily the ongoing management and leadership of design organizations, processes, and designed outputs- products, services, communications, environments, and interactions. Design leadership and design strategy may be viewed as outputs of effective design thinking and design management” (p.xii Lockwood, 2009).
The design-thinking is very important to luxury brands because it can develop customers’ emotional connection during the design process which finally added values to the brand itself.
2008 Survey of Wicked Problems sponsored by Neutron and Stanford University indicated as following; 1. Balancing long-term goals with short-term demands 2. Predicting returns on innovation concepts 3. Innovating at the increasing speed of change 4. Winning the war for world-class talent 5. Combining profitability with social responsibility 6. Protecting margins in a commoditizing industry 7. Multiplying success by collaborating across silos 8. Finding unclaimed yet profitable market space 9. Address the challenge if eco-sustainability 10. Aligning strategy with customer experience
Design-thinking is created to respond with today’s tremendous wicked problems because it cannot be solved by a traditional linear fashion. “Wicked problems always occurs in a social context – the wickedness of the problem reflects the diversity among the stakeholders in the problem” (CogNexus Institute, 2000).
Bibliographies:
Lockwood, T. (ed.) (2009). Design Thinking: integrating innovation, customer experience, and brand value, New York: Allworth Press.
Blum, A. (2006). ‘Thinking Design’ Dwell, Feb 2006, p.96-98.
CogNexus Institute (2000). Wicked Problems. Available at: cognexus.org/id42.htm (Accessed 22 March 2011).
Rowe, G.P. (). Design Thinking Cambridge: MIT Press.
Bloomberge Businessweek (2008). Neutron and Stanford's Survey of Wicked Problems. Available at: http://www.businessweek.com/innovate/next/archives/2008/04/neutron_and_stanfords_survey_of_wicked_problems.html (Accessed 22 March 2011)
“Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer. It involves the integration of marketing, sales, customer service, and the supply-chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value” (pp. 5 Parvatiyar & Sheth, 2001).
The customer relationships process
It is an interchangeable that the terms customer relationship management and relationship marketing are used (Parvatiyar & Sheth, 2001). The customer relationship management or what it is called ‘CRM’ is valuable to company growth. It is an approach using the information technology to storage company’s customers individually so that the marketers can benefits from The customers’ purchase history as well as psychographic and physiographic segmentation since they are the vital tools for marketers to forecast and devise either short term or long term business plan to complement with customers’ retention as well as its company’s growth strategy (Peppers & Rogers, 1993).
CRM was defined as “an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for the mutual benefit of both sides, through interactive, individualized and value added contacts over a long period of time” (p.44 Jackson, 1985).
As mentioned in class that a good relationship always starts with a good fit between company and its client; hence, it is essential for company to know whom should they serve for especially luxury brands because they are preserved in a niche market where NOT everyone is able to reach. As a result, the process of customer selectivity helps company targeting and narrowing on individual they should spend time and money on. Therefore, the company should organize a proper marketing program and be able to tailor each marketing practice to appropriate customers in order to serve the best to create mutual value (Parvatiyar & Sheth, 2001).
The customer relationship levels are categorized to four stages. Most valuable to poor-relationship customers respectively: platinum, gold, iron and lead. Customer tiers is believed to be beneficial to the market research in order to make project planning easier (Zeithaml, Rust & Lemon, 2001). The platinum accounts is the most essential in the customer tiers because platinum customers are willing to try new service more than any other customer tiers. They are heavy users, less price-sensitive. Gold accounts is similar to platinum accounts except from the fact that they are more price-sensitive. Iron accounts seek for lowest price while lead account generates the lowest revenue to the company but their required of service level is the same as iron (Lovelock & Wirtz, 2007).
The cost of marketing program is usually more expensive when it comes to attracting new customers. Therefore, the company should focus to maintain its exiting clienteles satisfaction and retention. Loyalty drivers are what make customers return to the preferred brand or in the other hand, just stop buying the product. In class, we have discussed about what makes customers loyal to a brand in the luxury category, what are drivers and how can a luxury brands increase their loyalty. Then we came up with the whole idea that the company should be able to provide a positive experience to client’s taste. The satisfactory service is the key to steal customers’ heart because sales persons from many luxury brands are arrogant and look down on customers nowadays.
Below is the wheel of loyalty.
In the last stage, the company should monitor customers’ complaint and consider what would be the factors and why others do not. When the company resonate the complaints, an effective service recovery is the solution to maintain its existing clients because it would be too outrageous to any companies taking a risk when customers’ expectation fails. Therefore, service recovery strategies should be provided at all time in order to deal with different clients in varying situations. The company should plan an implementation recovery practices into two stages; the program before the actual problem emerges and the tactic to resolve after the problem emerges. The employee must be able to make a fast decision-making and response to the complaint. By this, the company has to provide the front-line employees who empower a decision-making equipped with well-trained capability. The employees must show empathy, apology, own the problem, fix the problem, provide assurance that the problem will be sorted out and fixed as well as provide compensation should this be an appropriate discipline.
When service encounter is unsatisfied, customers either take some actions or no actions or both by complaining to service firm, third party, taking legal action, switching to other brands or spreading a negative WOM. Hence, it is a disgraceful threat for company to produce a bad reputation. And what could possibly make customers annoyed enough to complain? There are for example wait times, misunderstanding and most importantly, personnel.
However, the culture also affects attitudes towards complaining i.e. individualism, masculinity and long-term orientation. For instance, a long-term orientation people might be in higher expectation about tangibility then any other type of customers. Therefore, the sales person should be able to present the service which satisfy them.
Bibliographies:
Parvatiyar, A. and Sheth N. J. (2001). ‘Customer Relationship Management: Emerging Practice, Process, and Discipline’ Economic and Social Research, 3 (2) pp. 1-34.
Zeithaml, A.V., Rust, T.R. and Lemon, N.K. (2001). ‘The Customer Pyramid: Creating and Serving Profitable Customers’ California Management Review, 43 (4) pp.127-128.
Lovelock, C. and Wirtz J. (2007). Services Marketing People, Technology, Strategy (6th edn), Singapore: Prentice Hall.
Peppers, D. and Rogers, M. (1993). The One to One Future: Building Relationships One Customers at a Time, New York: Doubleday.
Jackson, B.B. (1985). Winning and Keeping Industrial Customers: The Dynamics of Customer Relationships, Lexington, MA: D.C. Heath.
What would be the first thing which grasps your attention and lure you into its store? If you walk pass Selfridges, Harrods, Liberty or Harvey Nichols- my favourite one, you would see how important the first impression of service design is. Speaking clearly with regards to this matter, service design or servicescape is known for the physical evidence and experiential surrounding provided by the brand. The practical service design should be able to create an atmosphere through the use of emotional state that enhances as well as trigger customers' buying decision in store.
Baker’s framework suggests the combination of physical evidence consists of three main dimensions which are social, design and ambient dimensions. The social dimension covers all people in the same environment including sales person as well as other shoppers. The design dimension refers to physical appearance and nature environment. The ambient dimension covers temperature, air quality, noise, music, space, layout, equipment, furnishings, signs, symbols & artifacts, signage, personal artifacts and style of decor.
Sullivan and Adcock (2007) state that the experience of shopping at the store influence the buying decision more than quality and price level of product ranges; therefore, it is advisable for retailers to carefully pay attention to any experiential elements which affect its clienteles’ perceived store shopping experience (PSSE).
Mehrabian Russell (MR) stimulus response model indicates customers’ behavior influential factors by store stimulus. Each shopper generates a certain mood state which reflects individual buying decision; buy or not buy. “The basic premise of the model is that a shopper’s perceptions of, and behavior within, a retail environment are the result of emotional states created by that environment” (p.135 Sullivan and Adcock,2007).
Sullivan and Adcock (2007) specify that MR model is divided into three fundamentals which are environmental stimuli, emotional states and behavior. In the beginning stage, the customers process store stimuli which are prevalence into three dimensions as discussed earlier; social, design and ambient dimension. Each shopper processes, analyzes and perceives store stimuli in a unique individual way. In this stage, mood state is development through store experiencing which vary into two variables: pleasure and arousal. Pleasure refers to when a customer feels good about the environment while arousal refers to when a customer is being motivated to buy a product. Finally, the third stage is the behavior; either approach or avoidance, bases on an individual mood state according to the earlier stage.
Service Culture
“The Contributions we willingly make to out organizations create a collective strength that individuals working toward selfish ends cannot achieve alone. It is the collection of individual efforts that, when added together, create a true customer serice culture and make life and work more fun”(p.3 Martinez and Hobbi,1967).
What makes the brand so powerful lays on the service culture a particular brand offers to its clienteles. A culture is a basic set of shared values, attitudes, beliefs and norms among a group of people. A Corporate culture is a subset of culture which shared values and beliefs are believed to be solid when it is being applied by people within the same organization. Therefore, human resource strategy should be planned clearly within the organization. As a result, an appropriate training system should be able to acknowledge its employee regarding their companies’ cultures in order to convince and conform all employees in the same direction. The training programs must improve human resource by means of enhancing employee competency, soft skills and know-how in order to perform in effective and efficient manners that reflect the holistic image of the brand.
The service culture should indicate an excellent customer service; for instance, positive attitude, well-manners, attentive, consistency, flexibility, sincerity, good communication and quick response to customers (Martinez and Hobbi, 1967).
In the rapidly changing and competitive world, the brand should distinguish themselves from their competitors. Since the unique selling point in Luxury market reaches some difficulties in addition to the product differentiation where many brands copy each other, I believe customer service with well-trained staffs could survive the company for longer. Customer service cannot be imitate because it is at the heart of employee who are trained, not that anyone could imitate by observation.
“Customer-loving person who relates comfortable to a wide variety of people and empathizes easily is the natural seed of service culture” (Bassett, 1992). However, employees have to be motivated to perform under proper circumstances as well i.e. rewards including empowerment, commission, praise, and etc.
Servicescape Observation
I have also done servicescape through the observation at Mulberry, Bond Street branch.
I will define the store elements into 7 categories as following;
Street: It is located in Luxury brand shopping arcade- Bond Street. There are four lanes in front of the store where one lane could be park for a short drop-off for taxi. Hence, its clients will be convenient traveling to this store. Moreover, there is NO bus stop that might forbid its clients to see.
Entrance: The door was open and it was too welcoming because actually luxury brands should filter its customers through their effort and confidence of opening the door. There is no focus point because of the clutter of product rages and the circular shoes area which is located in the middle of the store. According to the threshold, I could see the staff at the door but they were talking to each other over my head. Besides, the distance of the first product I could reach is only 1 metre from the entrance.
Environment: The use of decoration made from wood that is considered to get along well with its brand DNA.The use of warm colour which match with season.
Browsing: There is NO natural flow but depending on customers preferences because Bags are located on the right hand side while clothes are located on the left hand side. However, the first counter which is filled with bags are the bit on left hand side in front of the entrance so the customers do not need to turn left or right but just head straight when entering the store. Hidden area of classic goods which should change from solid wall to transparent one so that customers know what is inside. Hidden idea of shoes section which should be located either on left or right, not in the middle as present.
Display: Lighting is not too bright and makes customers feel warm. Wide ranges of product sizes, colours and styles. The shelves are too high for customer to grasp the product as wel as some shelves are too low and very near the floor so that the customers will not pay much attention to those products. Too many changing rooms makes the store looks not exclusive and no curtain or proper partition so customers might lose privacy. The price tags are inside the bags and very difficult to find as well as a very small transparent sticker of price on the shoes.
Staff Contact: NO eye contact except the manage, NO greeting upon arrival, and NO help offered
Selling Situation: The staff did not really find out what I wanted and the worst is that I was actually trying to buy the product.
Recommendations
The door should be closed at all time and a doorman should help customer opening the door once see that they try to get in.
Well trained staffs: pay attention on customers and greeting
Move the shoes area in either way
Should be a focus point and possible for customers to see through the shop until at the back of the store
Proper partition for changing rooms and decrease it to three rooms must be enough
Instant cleaning after serving coffee or tea
Provide more seating spaces for awaiting couple.A
Bibliographies:
Sullivan, M. and Adcock, D. (2007). Retail Marketing (3rd edn), London: Thomson Learning.
Swartz, A. T. and Iacobucci, D. (ed.)(2000). Handbook of Services Markering & Management, London: Sage Publications.
Jang, S.C. and Namkung Y. (2008). ‘Perceived quality, emotions, and behavior intention: Application of an extended Mehrabian- Russell model to restaurants’ Journal of Business Research, 62 (4) pp.451-460.
Martinez, M. and Hobbi, B. (1967). Building A Customer Service Culture; the seven service elements of customer success, North Carolina: Information Age Publishing Inc.
Bassett, G. (1992). Operations Management For Service Industries: competing in the service era Westport: Greenwood Publishing Group, Inc.
It is a challenge for luxury brands to say yes or no to pursue the current trend- Green Marketing.
Luxury brands know they cannot ignore the fact of people considering their CSR (Corporate Social Responsibility) before making a purchase anymore. Don't argue yet because the number of people who is social-oriented is increasing more and more every second.
'Today, the consumer looking to go green is increasingly likely to be an affluent professional woman wearing an eco-friendly and animal-free Stella McCartney suit and satin shoes. And if you want her dollars and her loyalty, you need to pay attention to the priorities she finds important when making her selection of luxury goods and services' (Danziger, 2008).
I remembered when I have Principle of Luxury Brands module last semester, we discussed a lot about ecology and luxury paradigm. To understand clearer, please see below:
From the picture shown, it describes that there are many cultures in ecology where luxury paradigm desire overlapping needs which later creating social status and lifestyle. In the previous time, luxury serves for aristocrat and old money focusing on its culture values later than ecology values. Therefore, huge part of environment was destroyed i.e. chemical release into the river as well as Carbon Dioxide emission into the air.
Luxury known for its craftsmanship and exclusive raw input; for instance, luxury yacht which consume gas and released pollute into the water causing millions of dead fish and decomposed corals. Or even any other laboratory-based facial care brands whose product ingredients rely on rare sea living thing i.e. seaweed. So the question is 'How to combine their luxury and the social responsibility together, and more importantly, causing damage to the earth at the minimum cost or not even at all?'
Yes! Luxury brands cannot deny the fact that they have caused trouble to the world. Unfortunately, only a few know how to fix it ,for instances; Stella McCartney, She came up with no-animal policy. Today she is the role model as environmentally-friendly fashion designer.
We are in the stage of finding what else heal the world? Below is one of the interesting video I have found on Luxury Society website. Hops it helps to share with you.
Bibliographies:
Danziger, P. (2008).The Luxury Market Is Going Green - Brands Can't Afford to Ignore It. Available at : http://www.4hoteliers.com/4hots_fshw.php?mwi=3090 (accessed 28 February 2011)
Kelly, E. (2010). Going Green: The Future of Luxury. Available at: http://luxurysociety.com/articles/2010/04/going-green-the-future-of-luxury (accessed 28 February 2011)
