Luxury in India

Topics: Luxury good, Goods, Branding Pages: 13 (3761 words) Published: December 1, 2012
Università LIUC Carlo Cattaneo

Luxury in India

Giulia Lupidi, 16430
Vanessa Tagliaferri, 16245

India in the world economy

Table of contents
1. Getting to know luxury
2.1. Categories of luxury brands
2.2. Differences between regular and luxury products
2. Characteristics of luxury industry
3. India market overview
4. Luxury in India
5.3. The growth of the market
5.4. Consumer profile
5.5. The booming: how and why
5.6. The luxury Scenario
5. Strategies for Luxury Marketing in India
6.7. SWOT analysis
6. Conclusion
7. References

1. Getting to Know Luxury
"Luxury is a necessity that begins where necessity ends” Gabrielle Coco Chanel It may well be that luxury is a basic human need- a way of winning something back against the cruelty of life. Luxury brands have often been associated with the core competencies of creativity, craftsmanship, precision, high quality, innovation, & premium pricing. These product attributes give the consumers the satisfaction of not only owning expensive items but the extra-added psychological benefits like the esteem, prestige and a sense of a high status that reminds them and others that they belong to an exclusive group of only a select few, who can afford the pricey items. The luxury sector targets its products and services at consumers on the top-end of the wealth spectrum. These self-selected elite are more or less price insensitive and choose to spend their time & money on objects that are plainly opulence rather than necessities. For these reasons, luxury and prestige brands have for centuries commanded an unwavering and often illogical customer loyalty. Luxury has never been something easy to define, yet this mystery concept is something highly desired by one & all alike. We look at delving deeper into this mystery and aura of luxury goods by way of comparing them against ‘regular goods’ as well as highlighting the characteristics of the luxury industry. 2.1. Categories of Luxury Brands

Luxury and prestige brands such as Rolex, Louis Vuitton & Cartier represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by brands. These brands create and and set the seasonal trends and are also capable to pulling all of their consumers with them wherever they go. Premium brands are those brands like Polo Ralph Lauren, Calvin Klein and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing mix strategies are more attuned to a mass market, albeit a luxury mass market. They are also termed as mass-premium brands or mass-luxury brands. Fashion brands on the other hand are those that address the masses.

2.2. Differences between Regular and Luxury Good
A luxury good is a product at highest end of the market in terms of quality and price. The differences between regular and luxury goods can be analyzed under the “Four P” of the marketing mix: * Product– the product or service offered to the customer: * Luxury goods: highly customization or limited editions of products; very high personal service levels. * Regular goods: standardization and service level range from low to high * Price– pricing strategies with the goal of meeting a desired profit margin or costing structure: * Luxury goods: premium pricing

* Regular goods: value for money
* Place (Distribution)– distribution of the product/service to your target market * Luxury goods: selected and exclusive stores at very high-end locations * Regular goods:convenient stores according to the product category * Promotion– communication and endorsement of your product/service to a customer * Luxury goods: premium above-the-line media; product aspirational and exclusivity appeal; mostly celebrity appeals; * Regular goods: all kinds of media used; product functional and aspirational value appeals; all kind...

References: * Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes, Pam Danziger, 2004
* THE CULT OF THE LUXURY BRAND – Inside Asia’s Love affair with Luxury, Radha Chadha and Paul Husband, 2006
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