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.
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