I really liked ABC Production’s presentation on luxury goods. Beforehand, I didn’t know anything about marketing real luxury goods, or expect there to be much difference between marketing strategies of normal and luxury goods. However, I was mistaken and quickly began to understand all of the strategies mentioned in the presentation. In general, it seems like the traditional rules are reversed for the marketing of luxury goods. The ABC Production representatives mentioned that the first difference in marketing real luxury goods is that the brand doesn’t have to worry about positioning their company; which is one of the initial factors one would have to consider with normal goods. The most surprising difference to me was when selling a real luxury good, these companies don’t care about the customers’ wishes or demands. At first this seems like a destructive strategy, but according to the customer behavior psychology, it actually adds more glamour and exclusivity to real luxury goods.
Another characteristic I learned about marketing real luxury goods is that the role of advertising is not to sell the products, but rather to create “the dream” and build excitement. Knowing the purpose and aim of the advertisement is very important because it shapes the way the content is presented, and can send confusing messages if not defined clearly. Normal brands usually use celebrities to elevate the prestige of their products by attaching them to the celebrity’s fame. However, the speakers at ABC highlighted the fact that real luxury goods avoid attaching celebrities to the image of their brand. The reason behind this is the image of the brand is perceived higher than that of celebrities. Real luxury brands tend to attach their brand to nature instead; because nature is looked upon as being perfect and powerful. Also, an important aspect of marketing real luxury brands is directing the audience of the advertising to everyone, not just the targeted customers. The value of the brand is known to all and not only to those who can afford it. Holding closed events, where only very limited number of people have access, also adds to the mystery and success of such brands.
Another shocking marketing tactic luxury goods use is to purposefully making it difficult for customers to buy the brand. The speakers of ABC Production even shared that real luxury brands typically have waiting lists orders. These companies also challenge their customers for the product by limiting the number of shops. These tactics are all done purposefully to add to the brand glamour and scarcity. Real luxury brands also try to protect the customer who can afford the product from fans who can’t afford it. They accomplish that by separating the shops that sell the products from other souvenir shops. For example, Ferrari and Mercedes have separate shops; those who sell the cars and others who sell souvenirs and accessories related to their brand. The souvenirs shops also contribute to the marketing of the brand by adding to the glamour and feeding the dream of owning an esteemed luxury product like Ferrari.
By: Maha Shawki, 2014 Forum-Nexus Alumnae