Monday, February 28, 2011

I'm 'Mr.Going Green', will you marry me?

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)

Sunday, February 27, 2011

BRAND DNA

If the old marketing mantra was," Nothing happens until somebody sells something," the new philosophy could be" Nothing happens until somebody brands something" (va-interactive, 2011).


Just rewind a little bit before we go further regarding branding. On the very first class of Managing Luxury course, I have learnt about Brand DNA. More interestingly, which helps me to understand more of how to create brand. The professor took us through in-class assignment which we are allowed to hand-on a new brand. The more I explore, the more I understand. But before I introduce you with my in-class material, I will explain more about how the luxury brand is being identified.


What is brand? general speaking, the brand intangibly associates with product or service, "a collection of feelings and perceptions about quality, image, lifestyle and status" (va-interactive, 2011). The brand elements consists of its vision (iconography), essence (Brand's DNA), mission (brand's accomplishment of providing a particular product) and values (an enduring beliefs and shared among the same group of members in the culture: In this extend, we are talking about the corporate values which is provided to customers). 


Luxury branding creates rarity and exclusivity. If the brand targets a wide range of target group, it will lost its exclusivity; therefore, it is hardly say that this brand is still luxury. Luxury is always identity. They may not have much different production process but what matters is how they communicate themselves to the society. For example, champagne and a champagne. Luxury champagne might use a better quality product but it is not much differ from the simple one- it depends on how the luxury one positions itself to its client. If the product is even more difficult to buy or lack of stock, clients tend to associate that brand to be more exclusive since not everyone could get the product easily. 


As mentioned earlier, identity or personality of the brand is what makes the brand distinctive. The brand should pay attention to following factors; emotive, visual code (logo), celebrity endorsement, photography, name (if it is recognizable), senses (shape, colour, smell, sound, icon, touch and service) and experience. 


Finally, following is my group in-class material that we came up with. We selected to create a brand new private jet service. The brand focuses on serving celebrities and sport persons who needs privacy traveling as well as discreet, premium service and food & beverage. 




Referring to above picture, we came up with the brandname 'JET-SETTER'. Our visual codes are jet, wing and shooting star. We believe that when combining together, these visual codes represent the emotions we emphasized on our project. Jet is the variable for us to deliver the service through while wing represents our smooth flight as well as genius service and finally shooting star refers to fast traveling. The emotive qualities of our brand are prestigious, classy, comfort, deluxe, stylish, exquisite, confidence, quintessentially, private and exclusive. Our typography is 'No matter where you are or where you want to go, private jet allows you to fly directly to your destination in your sense of comfort style and personality.'


We believed that these visual codes, emotive elements as well as typography would definitely bring success to JET-SETTER.


Bibliographies:


Virtual Advisor Inc. (2009). Building Your Brand. Available at: www.va-interactive.com (Accessed 27 February 2011).


Chapman, C. and Tulien, S. (2010). Brand DNA: Uncover Your Organization’s Genetic Code for Competitive Advantage, Bloomington: iUniverse.


Upshaw, B.L. (1995). Building Brand Identity: A Strategy for Success in a Hostile Marketplace Canada: John Wiley & Sons, Inc.

Wednesday, February 23, 2011

Luxury Service Design

If talking about luxury service, no one could ever deny that service design is the most vital part, playing an important role to satisfy customers in every way a particular service industry could think of.






A company who provides service alone finds difficulties to remain in its customers' minds since satisfaction happened in a specific time and moment. It is unlike an actual product which clients are pleased by the particular product or brand everytime when using it.


Service design for luxury industries consists of four main characteristics which are; lack of ownership, intangibility, inseparability and perishability. I would describe more about each characteristics below:-


a) Lack of Ownership: Clients deserve a service for a particular time but not forever.
b) Intangibility: The service cannot be physically touched, but the client'd rather be fulfilled with intangible satisfaction. 
c) Inseparability: The service cannot be separated from the service provider because service depends on the quality of one's serving to another. 
d) Perishability: A service only lasts for a specific time and is difficult to restore at a later time. "It refers to the fact that services cannot be produced and stockpiled before consumption: they exist only at the time of their production." (www.businessdictionary.com)




For example, when you go to luxury fish spa, you will be served with convenience and relaxation (intangibility) for a specific time that you pay for, let say 30-60 minutes each time (lack of ownership). You will be satisfied and enjoy your time there but in a specific time only (perishability). And you cannot have this moment again if you do not return to this place (inseparability). 


Therefore, to produce an extravaganza and extraordinary service in luxury industries needs to consider marketing mix or 8 P's consisting of product elements, place and time, price and other outlays, promotion and education, physical environment, processes, people, productivity and quality. We were assigned to do in-class assignment; hence, the explanation through the example of our work will be provided as following:-


Our team selected to create 8 P's in luxury club in London. 'Movida' is the brand we picked. According to our class's lecture and tip on interview website, it states that product is a specification of the actual good or service and it relates directly to the customers. Therefore, we described that special cocktail, luxury alcohol and famous DJs with good music should be taken into account. With regards to place & time, there is a specific time for clubbing from 10.30 pm until 3 am. More importantly, Movida is located in the most famous street for wealthies in London, Oxford circus. In addition to price, since it is positioned itself as high-end club, there will be entrance fee for at least 20 GBP for non-members and most of alcohol menu price is rated as a premium price in order to represent the quality of the interior design of the place and products (alcohol & DJs) provided. It would be weird if a luxury club sells a cheap cocktail, isn't it? Everything should be able to compliment each other. Moving on to promotion & education, Movida is familiar to clubbers through peers but not a hard sales advertising in TV or radio except the special occasions. For the process, we have argued a lot about this but what we were agree on is that they divided workforce and separate work function very well. For instance, there are guards serving security in front of and inside the club, the receptionist who process guests list and check whether they are there or not. Bartender who serve drinks. 


Bibliographies:


Business Dictionary. Available at: http://www.businessdictionary.com(accessed/ 23 February 2011)


8 P's of Marketing. Available at: www.tiponinterview.com(Accessed 23 February 2011)

Friday, February 18, 2011

Coffee OR Tea?

Americano? Espresso? Strawberry Frappe? Or Earl's Grey?
These are the products Starbucks provides us every single day, isn't it?


On January 6 this year, I believe the evolution of logo refinement of Starbucks shocked some people again but whether it is positive or negive, you tell me! Personally, I understand the rationale underneath the elimination of  the white round circle and more importantly the word 'Starbucks Coffee' in the previous logo. Unfortunately, I just do not like it, to be frank. I wonder what American-based coffeehouse was thinking.


Starbucks has passed three times of successful logo refinement which spent a huge amount of money to develop the logo and building such an iconic brand globally excluding the last one with only the siren (a mermaid) remains.


Intention behind this change of logo led from the more wide range of products offered at Starbucks coffeehouse beyond coffee and beans. Therefore, on its 40th Anniversary, it removed its name from the logo everywhere.. on the coffee cup or strawberry smoothies cup..whatever. 


Below is the logo revolution from time to time:-


Source: www.dinesh.com


Yes! It does not matter to put brandname on the logo but what I mean is that it looks better with its brandname. The new logo is not attractive and refers to nothing but a siren. It looks to me just like the draft logo which has not been done yet. Although Starbucks is the world renowed coffeehouse who enjoy triple profits in year 2010 comparing with year 2009, it does not mean that it could suddenly change the logo right away without doing research from its existing clients. Because it will never be an improvement if its client resist the change.


I wish it can leave only the word 'Coffee' out instead. Unless the logo refinement is better, if so, better not use it at all.


Bibliographies:


BBC (2011). Starbucks drops its name and the word coffee from logo. Available at: www.bbc.co.uk (Accessed 18 February 2011)


Reed, R. (2011). Starbucks changing logo. Available at: www.marketingpilgrim.com (accessed 18 February 2011)

Thursday, February 17, 2011

WHAT SHOULD I CALL IT?


Well, I am thinking of my final project for Managing Luxury Brand Course now. Our class was asked to create the new product line of any brands. So I am thinking of something very innovative, stylish and super luxurious. For myself, I am not so into engine things that much whatever they are Sunseeker yacht or Ferrari super car. Yeah! And that is why I feel very challenging to pursue this path.


Therefore, I come up with the idea of Bentley. The reason why I select this brand is because I am interested in how old money persons spend their money and exactly! Bentley is always one of many choices for them. Not to show off but the quality does matter. I know it is my own perception and I might stereotype but I am going to stick to this idea.


As you know (or you might not know but I am going to tell you!) that Bentley can be able to customize both interior and exterior colour of the car so client are allowed to pick colour of the car as well as the seating. Well, sometimes I think it is a bad idea since I have just seen pink cotton Bentley driving passed myself like 15 minutes ago and I was thinking that it is such a waste of money. But! What I am planning to do now would be a great idea and I believe it has potential. Following, I am going to combine my expertise part into the idea. 


And what is my expertise? I can imagine myself walking on the runway but not in the car showroom. You got me now, right? I am so into fashion, trends and wardrobe styles. While comparing Hermes into brand DNA chart, I found out that it signifies similarities between itself and Bentley. Hence, cooperating or joint venture between two companies would be able to bring greater benefit and better brand value to themselves. I am talking about the co-op between Bentley and Hermes. Yes! You don't read it wrong. I am going to make Bentley's partner 'Hermes'. 


From my point of view, JV (Joint Venture) requires a bunch of in-depth analysis with regards to company profile, figures, remedies and etc. And when it comes to JV, both companies should produce a healthy brand values and grasp positive attitudes from public domain then both sides can enjoy good possibility which enhance themselves into their industries. For instance, Bentley is famous at its quality engine and luxurious design as well as Hermes is well known for its leather craftsmanship. In the other hand, if one or both companies produced negative reputation before, it will affect the brand perception of its partner in the future as well.


After talking too much about my assumption, I would like to introduce you all to the world new car design; traditional yet exquisite, Bentley car design with Hermes interior. How does it sound? Hmmmm….Don’t judge yet because the journey has just begun! Before I end today’s journal, I’d like to show you all some pictures which I will use to describe both brands current perception following with the new concept after emergence.


Current Bentley Brand Concept:




Current Hermes Brand Concept:






Brands Emergence:






Source of photographs: www.jedroot.com

Wednesday, February 9, 2011

WRAP IT UP

In the world of consumer products whether it is luxury or street brands, packaging becomes one of the element which is essential to potential customers' purchasing decision.


The product alone could generate the sales but its packaging design helps reinforce its brand image & brand personality which is being communicated through its packaging.  


So many times that I have to admit that I bought things because of its packaging too. Well, don't get me wrong yet. I am not saying that I pay for the packaging alone! Actually, I do like the product itself but when combining with its packaging, it enhances the feeling of ' oh, I want it!' I guess you might experience this once for yourself.

Warnings is that packaging should somewhat connect directly to the selling product as well as brand concept. Packaging could be creative but in the same time also speak the same language of the brand itself. 


Successful packaging should be able to make association and retention of the brand by its clients. Not only the design matters, but also the use of colours, logo, slogan and typo which sticks onto the packaging are also taken into account. 


If we are talking about brown Egyptian packaging of one cosmetic brand, I am sure Estee Lauder could be one of your thoughts!





Packagings have been invented to produce excitement, impression and imagination of the brand that is why the packaging needs to be distinctively outstanding. The texture and material used in packaging process should be in a good conditions and quality. Poor quality material should be abandoned. Though it is not we buy for but it will affects brand image as a whole if the packaging torn out so easily.
Packaging should bring both creativity and consistency of the brand. You can play with the packaging design while keeping the solid concept of the brand so customers won't confuse with the brand concept. I might also say that luxury brands could be playful as well as in the same time not losing its identity. And finally the ones who retain in customers' mind are the ones whose appearance, personality and other elements of brand concepts are remembered by their client.



Bibliographies:
Packaging of the World (2011). Available at: http://www.packagingoftheworld.com/ (Accessed 9 February 2011)
Packaging World (2011). Beer packaging. Available at: www.packworld.com/beer/ (Accessed 9 February 2011)
Calver, G. (2007). What is Packaging Design? Singapore: ProVision Pte.Ltd.

Tuesday, February 8, 2011

C H A N E L

'In order to be irreplaceable one must always be different' Coco Chanel.

CHANEL has been shining in luxurious fashion industry since 1919 starting from her inspiration to create hat for her friends as it became very famous until bunch of hat collections leak out then CHANEL NO.5 was later introduced in 1921 in her fragrance line.

The dresses in 'Tonight or never', the most popular movie in 1931, was also styled by Coco Chanel as her talent was shining brilliantly that no one could ever pull down.

Coco is the revolutioner. She hated clothes with coquettish style and corset which makes a girl looks just like a walking-curtain so she reduced every possibility to maximize details and stick to simple and loose style. 






She introduced androgynous looks to the fashion world believing that a girl could dress up in a boy-ish style as well as in the same time, keeping femininity sense inside. In this sense, it doesn't mean that her clothes were created as if they were for men. For instance, her tweet suit as the material looks so soft and darling but the suit style itself represents successful, comfortable and luxury. This trend has been fulfilled the world fashion with simplicity but elegance looks, the perfect combination of masculin and feminine is that I'd say!



Bibliographies:

Karbo, K. (2009). The Gospel according to Coco Chanel Guilford: The Globe Pequot Press.


Landrum, N.G. (2004). Entrepreneurial Genius; The Power of Passion Ontario: Brendan Kelly Publishing Inc. 


Davis, E. M. (2006). Classic Chic; Music, Fashion, and Modernism California: University of California Press.