Harley Davidson Markweting
Waterford Wedgwood and the Market for Luxury Goods
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This case study is intended to support classroom discussion of the strategic management of a luxury goods business.
Copyright Professor Gary Davies 2006
The forward to Waterford Wedgwood’s 2005 Annual Report concluded "This confluence of great global brands, management talent and focused energy is well placed to take Waterford Wedgwood forward.” The challenge facing its management was how best to reshape a loss-making group that owned a range of branded glassware and chinaware into a profitable concern. Other luxury goods conglomerates such as Richemont, PPR/Gucci and LVMH were doing well but could a quite different brand portfolio be made similarly profitable?
The Company
The company of Waterford was first established in 1783 in the Irish harbour town of Waterford. Its founders were two brothers, William and George Penrose, who were prominent businessmen in the city. Their vision was to "create the finest quality crystal for drinking vessels and objects of beauty for the home." Merchant ships sailed regularly from the port of Waterford with cargoes of crystal bound for Spain, the West Indies, New York, New England and Newfoundland. But less than 100 years later the initial company failed due to lack of capital and excessive taxation.
In 1947, while Europe was still recovering after the second World War, a new glass factory was set up in Waterford just two kilometres from the original site. The company grew to become one of the leading Irish brands, marketing its crystal glassware in many countries. In November 2000, Waterford Crystal was named as the top world-class brand in a survey of American consumers. The researchers said that Americans judged Waterford Crystal as the brand with the highest quality out of 19 world-class brands in the US market. Other brands in the league table below Waterford included Rolls-Royce Bentley and Bose stereo.
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This case study is intended to support classroom discussion of the strategic management of a luxury goods business.
Copyright Professor Gary Davies 2006
The forward to Waterford Wedgwood’s 2005 Annual Report concluded "This confluence of great global brands, management talent and focused energy is well placed to take Waterford Wedgwood forward.” The challenge facing its management was how best to reshape a loss-making group that owned a range of branded glassware and chinaware into a profitable concern. Other luxury goods conglomerates such as Richemont, PPR/Gucci and LVMH were doing well but could a quite different brand portfolio be made similarly profitable?
The Company
The company of Waterford was first established in 1783 in the Irish harbour town of Waterford. Its founders were two brothers, William and George Penrose, who were prominent businessmen in the city. Their vision was to "create the finest quality crystal for drinking vessels and objects of beauty for the home." Merchant ships sailed regularly from the port of Waterford with cargoes of crystal bound for Spain, the West Indies, New York, New England and Newfoundland. But less than 100 years later the initial company failed due to lack of capital and excessive taxation.
In 1947, while Europe was still recovering after the second World War, a new glass factory was set up in Waterford just two kilometres from the original site. The company grew to become one of the leading Irish brands, marketing its crystal glassware in many countries. In November 2000, Waterford Crystal was named as the top world-class brand in a survey of American consumers. The researchers said that Americans judged Waterford Crystal as the brand with the highest quality out of 19 world-class brands in the US market. Other brands in the league table below Waterford included Rolls-Royce Bentley and Bose stereo.