So here I am in wonderful Boston for the Retail and Luxury Conference at HBS. It’s been a year since I’ve been back. I’ve had a wonderful time so far, traveling via the subway/rail system. I think I like it better than NYC’s subway system. Watch out for more posts (with pictures).
Key Takeaway from The Luxury Doctrine (a new resource in development):
If you want to be successful, especially in luxury, you have to think of, and act like the customer, at all steps in the value chain… you have to manage the customer’s experience
– Edmund Amoye, Lessons in Luxury
For those who have been following my posts on the different luxury segments, you’ll notice that the key catalyst for success in today’s environment is innovation in managing the customer experience. If you are new to this customer-centric theme, I have a list of related posts at the bottom, to get you up to speed.
In every business there are seasons and cycles – ups and downs. At their rollout to end-users, luxury goods and services are sometimes heralded as innovative novelties and “must haves”. However, as brands permeate, manufacturers innovate, and marketing teams penetrate (I had to use that rhyme… too easy to pass up), commoditization sets in. Luckily, the Ford Motor Co. is doing something about that with its Lincoln automotive brand.
– Top View of the 2013 Lincoln MKZ Continue reading
Credit for this post goes to Chase Harps, one of my MBA classmates.
I often find myself having to evangelize for the luxury industry, especially to people that may be skeptical of its necessity or long-term viability. For those people, I am posting a link to a new 2012 brand ranking report from Brand Finance. Based on its findings, the company issued a viewpoint on luxury brands. Entitled “Recession Fails to Dent Consumer Lust for Luxury Brands“, the article lists the following main points. Continue reading
I found this great article at www.fastcompany.com. The major take aways for businesses that do not want to compete on price are:
- Develop Powerful Branding – Effective and unique branding puts your product in a competitive space that has little to do with price, and more to do with being cool, trendy (or timeless), and of great quality.
- Strategic Marketing – This encompasses the four Ps of marketing and much more. In luxury marketing you need to be thinking about the four Es (exclusivity, emotion, engagement, and experience). While Apple won’t admit that they intentionally create product shortages in order to create a buzz, it is certainly part of the reason why customers are willing to pay huge premiums to have their products as soon as they are released.
- Excellent customer service – Customer service is something you can not afford to lack. From getting customer’s to try your products and services to keeping them loyal, customer service is the lynch pin that sets you appart from competitors.
- A product that doesn’t disappoint – All of the above won’t mean anything if you don’t have a stellar product. Take a page from companies like Apple and Patagonia who are committed first to making the best product possible.
If a product can’t live up to the expectations set by its marketing, it won’t be successful for the long term
Building on the confusion of yesterday’s post, today’s entry focuses on the academic justification for a firm’s participation in the luxury segment. Though what appears below is very intellectual, it is very similar to the thoughts I had on the matter long before I ever knew I wanted to work in the luxury segment.
In his work covering business strategy, Michael Porter explains that there are two main categories, in which a firm’s competitive strengths fall: cost leadership and differentiation. Depending on the firm’s market focus (broad or niche), and the uniqueness of its products (custom or commodity) and services, Porter posits four generic strategies a firm can use to develop a competitive advantage. Continue reading
THANK YOU FOR READING MY BLOG.
My comrades at W&M and WordPress.com have been phenomenal in spreading my posts all over the internet. I wake up a lot of mornings surprised to see the array of readers I have from all over the world, looking in on my scribbled thoughts. I’ve gone from having only one reader – my wife – to getting as many as 100 unique views on days when I do my job right. For me, the metrics don’t really matter as a marketing strength, but as a reflection of interest. So thanks for your interest. I really appreciate it. Let’s grow together in 2012.
Ok, on to today’s rant…
30-day Challenge – Day 16
The fact that I’m currently traveling in NY is no excuse to miss out on making my 15th post in the 30-day challenge. However, as I type this post on my mobile phone, from a cab going down E 57th, I must say that I will be rather brief today.
From time to time I get emails from friends, faculty, and strangers about interesting articles on luxury products and services. A good friend of mine, Eric sent me an article by Duke Greenhill, founder and CEO of Greenhill+Partners, an agency for bespoke luxury brand marketing.
We have all learned about the 4Ps of marketing. In fact, I think some marketing nerds might have it tattooed on their foreheads. In his post on Mashable.com, Duke discusses the 4Es. I read it and believe it is worth the time it takes you to click the links above . At the least, you can add another marketing acronym to your bag of buzz terms.
You can now congratulate me on my first mobile post from a yellow cab (now on W 57th). See you tomorrow.