Not sure how you will improve on this next year. They have all been very thought-provoking and insightful. Every BA must experience this.
By Klaus Heine and Francine Espinoza Petersen Luxury brands have spent decades, and sometimes centuries, cultivating the perfect mix of authenticity and prestige to remain successful among their peers.
Below Klaus Heine and Francine Espinoza Petersen analyse how this balance of authenticity and prestige can teach other brands invaluable lessons for their marketing strategy.
The luxury wine segment is one of the oldest luxury product categories. Some centuries-old wineries are amongst the oldest brands in the world. At the same time, fine wines are an innovative and a double-digit growth market, especially because of the increasing thirst for wine in developing countries.
We believe that luxury wineries are particularly good at two major symbolic characteristics that high-end brands must fulfill at least to some extent: We also believe that the area of luxury marketing can benefit from studying the strategies of luxury wine brands.
Growing instability, increasingly open societies, a perceived rise in corporate manipulation and guile, and the professionalisation of the luxury industry are contributing to reducing authenticity.
Assuring authenticity is therefore one of the central challenges for luxury brands. Approximate authenticity occurs when a product or production process has evolved, but the item sold today still resembles the original.
Consumers seeking moral authenticity are less interested in traditions; instead, they respond to their perceptions of motives, means, and ends.
Morally authentic companies create something because they deeply believe in it, not just because there is external demand or the promise of financial reward. Facing emerging competitors, established wineries tend to place greater emphasis on their centuries-old traditions, age, and longstanding reputation as a means of differentiating themselves from competitors.
As stated on its webpage: It is a perception. As a result, carefully crafted marketing measures can be used to enhance perceptions of authenticity. Winemaking in the tradition of an old, established terroir is a way to achieve approximate authenticity.
The terroir system is also a way to control supply, as it creates codified limitations i. Yquem wine can only come from the hectares of the estate. To remain successful against growing competition they have to professionalise their production, distribution, and marketing.
But, consequently, consumers may perceive them as more professional and commercial, and therefore less genuine and original.
One way to resolve this dilemma is to publicly downplay their professionalism and their commercial interests. Indeed, luxury wineries regularly downplay their scientific and business expertise to appear above commercial interests. Some wineries also accentuate their family-owned status to differentiate themselves from margin-driven corporate groups.
Such wineries accept some professional techniques but concentrate above all on their products, family traditions, and customer relations. Instead, they follow an identity-driven approach that emphasises producing a wine true to the winery and the terroir.
Carefully orchestrating an experience with a product is another way to promote moral authenticity, to create lasting, positive memories, and to connect emotionally to consumers. They are shown around and meet men like Christophe Cabanieu, whose family has worked at Yquem for six generations. They visit the barrel room with hundred oak casks and the wine cellars covered with the dust of history.
Visitors can feel the love and passion of the people for what they do. Henrich and Gil-White found that natural selection encouraged humans to seek prestige because transferring skills and knowledge within social groups improved survival.
Feelings of admiration and respect for a prestigious individual increase the desire to please that person. In turn, prestigious individuals receive a variety of social benefits.
The notion of prestige can be naturally applied to products. Keasbey argued that the utility of products can be split into use, prestige, and exchange value.
For example, Keasbey observed, a Native American warrior was proud of the scalps swinging from his belt because they added to his prestige, even though they carried no functional value.
Possessing a high level of prestige is imperative for luxury brands, as the essence of luxury is high quality and superior social standing. Because of their heritage on how to generate prestige, Champagne masstige brands are good prestige benchmarks.
According to its annual report, LVMH parent of these two brands was selling almost 60 million bottles of champagne in Masstige brands cut back on some luxury characteristics, such as price, rarity, and extraordinariness, to make luxury-like products accessible for middle-class consumers.
A brand can cultivate a perception of prestige by communicating superior quality and achievements, signalling that it belongs to a superior class.
Consistently across their brand communications they reflect the lifestyle and aesthetics of the upper class. Packaging is a major communication tool and in this case it creates substantial additional value. Over time, the company has iconised its colour and associated it with high-class elements.
The brand produces glasses, champagne buckets designed by renowned artists, and multiple other merchandising tools that consistently feature the distinctive yellow colour.The Module Directory provides information on all taught modules offered by Queen Mary during the academic year The modules are listed alphabetically, and you can search and sort the list by title, key words, academic school, module code and/or semester.
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