1. Luxury Brand Development, Management and Internationalisation Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg, Canada s.singh@uwinnipeg.ca www.uwinnipeg.ca/~ssingh5

2. The Concept of Brand Development: Add value first Then, we’ll do positioning, pricing, branding and communication around the value proposition. Commodity Goods Service Experience 1₡-2₡ 5 ₡-25₡ 75 ₡-$1.5 $2-$2.50

3. Sources (messages) of value to the brands Mercedes  Engineering, sophistication and safety MBW  engineering and driving Nike  Performance Starbuck  Best coffee experience FedEx  Overnight Harvard  Leadership skills MIT  engineering and management 3M  Innovation Luxury  Dream!! Which dream? You can brand anything  e.g. water, yourself…

4. Lamborghini bicycle: $25,000 -- Lightest

5. Franck Muller: Master of Complications

6. 24 Complications

7. Celestial map, do we need it?

8. 900 parts in luxury versus 90 in ordinary, or 0 in electronic watch

9. Black Credit Card

10. The Luxury: The Dream Club

11. The Luxury: The Desire You pay $5000 Limousine ride, hovering photographers red carpet, 4 hysterical fans… Can you imagine?

12. Characteristics of Luxury Brand Dream a dream with value Create exclusive club Functional  Given Exchange  Last long, can outlive you Emotional  You adore it, source of joy Mythical  There is something about it Ethical  Links to social responsibility Identity  Convey something about you

13. Brand Content To sustain brand image To be the leader, set trends ↑ functional and emotional value How do we do it Educate customers  History and heritage Interviews, fashion shows, manufacturing process Link brand to community Show social responsibility Gucci (mrf process), Chloé (fashion show)  www

15. Brand Identity Levis  Jeans with distinctive labels Missoni  Knitted fabric in a special way Toblerone  Chocolate, red/yellow packaging Tod’s  Moccasins (shoes made from deerskin very soft, single piece of leather Ferrari  Red automobile LOGOS play important role in forming brand identity

16. Luxury Brand and Social Responsibility Nike  Just do it  Surpass your determination Mont Blanc  UNICEF $10,000 for a dinner ticket Rich compete to donate! Singer Bono’s brand in Africa

18. Louis Vuitton Foundation: Contemporary art museum

20. Luxury Customization – Rich like it Product LV : choose colour and material Point of delivery Bring receipt to customer, engrave their name Shopping experience Assistance to old people, spl invitation, discount Customization online  Online interaction Shop with a friend  live video chat assistance Sales $20m  $60m

21. Online Product Display 50% of luxury brands are online now Virtual mannequins  360 degree pictures iSmell software  You can smell the product on your computer

22. 10Cs of Luxury Fashion Online Marketing Customer value  Satisfaction Convenience Cost Communications  Faster and targeted Computing  Able to track online Customer franchise  Trust, live assistance Customer care Community  Social network Content Customization

23. Luxury Logos  Simple Japanese like logos  more space for logos Europeans do not like logos on tie; US ok Icon  apple Indices  relationship (smoke means fire) Symbols  Ambiguous (Lion on Venice flag) Numbers, animals, initials, monograms,…

24. Luxury Brand Hinge North European  Classical type Clear lines, contours, saturated colours, closed… shape, entirely visible Jil Slander, Ikea, Helmut Lang, BMW USA  Calvin Klein, Donna Karan Mediterranean Brands  baroque type Criss-cross, open, exaggeration, line shadows… Loewe, Ferragamo, Doice and Gabbana, Rubell, Majorica, Lamborghini, Versace, Ronerto Cavelli

25. Internationalisation: Luxury Brand ① Create brands visibility  awareness, Expand product line, men  women ② License abroad 1 st perfume then fashion ↑ advt for perfume ↑ brand awareness ③ Open flagship stores in big cities abroad. Balance Merchandise bw COS & franchisee ④ Buy back franchisee. Get new balance.

26. Internationalisation by Brands LV  USA, Germany, Italy, Spain Burberry, Prada  China Audi  China: Chinese officials, made-in-China Hermés  Shang Xia …

27. International Luxury Brand Management Brand development Initially one product line extensive variety and colour Brand registration Register brand in few countries first $2,000 - $3,000 per brand (lawyer fee, tax…) If target 100 countries  $200,000 - $300,000) Registration renewal Show proof of usages, or counterfeit operator Usually 20%-30% brands need renewals

28. Brands Become International When $50m sales are reached 50% of public knows the logo New category is developed successfully No longer advertisement is needed to sell Brand outlives investor  eg, 3 rd generation Brand is present in USA, Europe and Asia