Preview

The Concept of Luxury Brands

Good Essays
Open Document
Open Document
17878 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Concept of Luxury Brands
THE CONCEPT OF LUXURY BRANDS

Contents

I – LUXONOMY

1. The Basic Definition of Luxury 2.1. The Necessity-Luxury Continuum 2.2. The Relativity of Luxury 2.3. General Perspective for the Definition of Luxury 2. The Major Understandings of Luxury by Area of Research 3.4. The Philosophical-sociological Understanding of Luxury 3.5. The Micro-economic Understanding of Luxury: Luxury Goods 3.6. The Managerial Understanding of Luxury: Luxury Products 3.7.1. Areas of Research 3.7.2. Scope of Luxury 3.7.3. Limiting the Scope of Luxury 3. Luxury Products

4. Luxury Brands

5. Distinction

II – HANDBOOK

1. Characteristics of Luxury 2. Luxury Marketing Mix

Heine, K. (2011) The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.

Paper about the Definition and Categorization of Luxury Products and Brands consisting of a Taxonomy of Luxury and a Handbook for the Creation of Luxury Products and Brands
This paper defines both luxury products and brands and also distinguishes similar concepts such as premium and masstige and differentiates between major types of luxury products and brands such as accessible vs. exceptional luxury products and connoisseur vs. star brands. In that way, it should create a better understanding of what actually constitutes luxury products and brands, and thus should be useful for both researchers and managers within the field of luxury brand management.

As luxury is constantly on the move, this paper will be constantly up-dated. Therefore, please feel free to send me your feedback and ideas. The latest publication can be foundhere and previous publications below.

According to its objectives, the paper is split into the following two major components:

Taxonomy of Luxury: The tasks of distinguishing between luxury and
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Coach Inc. Case Analysis
    • 1060 Words
    • 5 Pages

    Coach Inc. Case Analysis

    The profit potential that exist in the luxury goods industry could be better understood through an analysis of Porter’s five forces model. Starting with the threat of entry, the industry is unlikely to have new entrants because of the sustained competitive advantages of the existing successfully luxury brands. Leading companies such as Coach, Michael Kors, Salvatore Ferragamo, Prada, and etc. all have brand name recognition due to their success and popularity. According to the article, “To be unique and exclusive you cannot be ubiquitous.” (Gamble, 2015, C-81) For instance, Coach, Inc. strengthened their brand by becoming a leader in their accessible luxury segment by focusing on being unique in this market. Coach, Inc. and the other popular brands, have strong personal identifications because of the strategies they put in place. For this reason, new entrants to the market will have trouble attracting consumers who stand strong with the popular brand because of their loyalty. The power of suppliers within the industry for the luxury good market is low as the industry is not very concentrated. Materials to produce luxury goods, such as leather, are supplied in various countries throughout the world. For Coach, Inc. the case states, “All of the company’s leather products were manufactured by third-party suppliers in Asia.” (Gamble, 2015, C-71) Since Coach and the other…

    • 1060 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    A Mild Defense Of Luxury James Twitchell Summary
    • 1078 Words
    • 5 Pages

    A Mild Defense Of Luxury James Twitchell Summary

    In the article "A Mild Defense of Luxury", James Twitchell paints a vivid picture of how luxury is perceived. He gives us a close snapshot about how we fell about luxury in our society. Our society has defined so many materials like clothing, liquor, appliances, furniture, etc., that we have created our own standard when compared to what luxury should be and how can we attain it.…

    • 1078 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Deluxe: How Luxury Lost Its Luster
    • 2162 Words
    • 9 Pages

    Deluxe: How Luxury Lost Its Luster

    Deluxe: How luxury lost its luster, by Dana Thomas, brings a hard hitting, raw look at the world of luxury and the mass demand of luxury that has occurred. The book was published by the Penguin Group in 2007. Luxury is defined by Thomas as truly special, and was only available to the aristocratic world of wealth and old money in western culture. Luxury signified an experience and lifestyle that denotes royalty, fame, and fortune. However, with large companies owning the former family-owned luxury producing businesses, profits are the main goal not the production of luxury. Thomas reveals the unfortunate demise and rise of traditional luxury companies. Wherever she looked, it seemed as though everyone owned some kind of luxury product. She asked herself, when did brands such as Chanel, Gucci, and Prada become so widely used and available to anyone anywhere? Thus, the beginning of her research into the world of luxury and her book, Deluxe: How luxury lost its luster.…

    • 2162 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Best Essays

    Case Study: Aquascutum
    • 3088 Words
    • 13 Pages

    Case Study: Aquascutum

    Kapferer, J-N. and Bastien, V. (2009) The Luxury Strategy: break the rules of marketing to build luxury brands. London: Kogan Page.…

    • 3088 Words
    • 13 Pages
    Best Essays
    Read More
  • Good Essays

    Coach Case Study
    • 2065 Words
    • 9 Pages

    Coach Case Study

    Today there are key defining characteristics of luxury goods industry such as pricing, quality, style, and brand reputation. The pricing of goods is based on economics, demand increases as income increases. Pricing is also determined by exclusivity, quantity availability, quality and location of the product. The quality of a product can help determine the price, but not always. Luxury goods have higher quality, which results in higher price from the workmanship, material, and labor to product good. Many luxury goods have a particular style that is unique to each brand. Sometimes other brands or companies will try to reproduce a similar item, but cannot compete with the original style and exact fit or design. This is why the reproduced products might not sell as well as the original one. Each brand has a reputation to an individual. It can come from experience, advertising, word of mouth or location. These factors will form your personal preference to whether you will purchase goods from that particular brand. It also creates a sense of status and how others will perceive you if you have certain luxury goods. For example, you seem to be wealthy if you own Louis Vuitton or Chanel handbag over an Anne Klein handbag.…

    • 2065 Words
    • 9 Pages
    Good Essays
    Read More
  • Powerful Essays

    Coach Case Study
    • 3924 Words
    • 16 Pages

    Coach Case Study

    The luxury industry can also be looked at as a status symbol. Conspicuous consumption leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year (Business Wire, 2007). Advertising has a lot to do with it, especially Americans who are being constantly bombarded with advertisements on a daily basis. While finding exactly how many advertisements American see a day is nearly impossible, some studies have shown the number to be between 150 and 3,000 (Mortar, 2006). This leads to more consumers being exposed to or being told which items or brands are luxury goods, but unlike the definition for luxury goods, these conspicuous consumers buy their products for satisfy their self-esteem issues rather than for ease or comfort. Although an argument can be made is…

    • 3924 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Better Essays

    Coach Inc
    • 1759 Words
    • 8 Pages

    Coach Inc

    A luxury brand may have profound influence on an overall product strategy since its position may determine how the company is going to make its next step. A luxury brand like Coach epitomizes elegance and combines classic beauty with modern design. According to John E. Gamble, not only has Coach become one of the most respected and known brand names in the ladies’ handbags and leather accessories luxury brand industry, it is also one of the most best-selling luxury brand companies in the world, with net sales reaching 2.1 billion in 2006 (Gamble). When a company like Coach decides to set up a product strategy for the next season, the manager will need to take the brand’s established style into account, since their incoming products must fit with the existing brand. When a manager, such as Lew Frankfort, chairman and CEO of Coach, Inc., aims to build a luxury brand like Coach, he invests millions of dollars in setting up a series of business strategies, including advertising on television, organizing fashion shows, and gaining the approval of fashion designers. These actions are decided based on how a luxury brand is built; essentially, the brand will guide the future steps of the company to a certain degree. Coach, Inc. is different from other more expensive luxury brands, such as Hermes, Prada, Fendi, and Louis Vuitton in the sense that Coach focuses more on middle-income consumers who want to purchase their hand bags from a price range of $200 to $500. Coach is the alternative to these competing companies, matching their key luxury products on quality and styling, while beating them on price by 50% or more (Gamble).…

    • 1759 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Coach Inc. case analysis
    • 7823 Words
    • 24 Pages

    Coach Inc. case analysis

    Luxury goods industry is highly competitive due to a low market-entry barrier. It has experienced ups and downs during the 2000s. And in recent years, the industry has recovered and developed rapidly. More and more luxury goods corporations have expanded their operations in emerging markets through Internet and e-commerce. The future outlook of this industry is optimistic.…

    • 7823 Words
    • 24 Pages
    Good Essays
    Read More
  • Powerful Essays

    Coach Case
    • 2136 Words
    • 6 Pages

    Coach Case

    1. What are the defining characteristics of the luxury goods industry? What is the industry like? Economics define a luxury good as one for which demand increase as income increase. Luxury goods are said to have high income elasticity of demand as people become wealthier, they will buy more and more of the luxury good. This also means, however, that should there be a decline in income its demand will drop. Unlike mediocre goods, they are related to price and high-income individuals. A luxury corporation may establish its image via pricing, exclusivity, limited availability, quality and location. High pricing gives the product its prestigious nature, and implies high quality. Luxury brands in general, relied on creative designs, high quality, and brand reputation to attract customers and build brand loyalty. The market for luxury goods was divided into three main categories: haute-couture, traditional luxury, and the growing submarket “accessible luxury”. At the apex of the market was haute couture with it very high-end “custom” product offering that caters to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. The luxury goods industry is under drastic change and at different levels. This has an impact on Coach's business because they have two different types of stores. On one hand they have factory stores who sell at a discounted price and on the other hand they have full-priced stores or flagship stores which cater to higher end consumers. While the factory stores are being hit by the American financial crisis due to the lack of disposable income for the middle class, full-price stores or flagship stores have brighter future with an increasing number of millionaires.…

    • 2136 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Best Essays

    Success in Luxury Watch Positioning of Breitling Watches
    • 2499 Words
    • 10 Pages

    Success in Luxury Watch Positioning of Breitling Watches

    Kapferer JN, Bastien V. The Luxury Strategy: Breaking the Rules of Marketing to Build Luxury Brands. London: Kogan Page; 2009.…

    • 2499 Words
    • 10 Pages
    Best Essays
    Read More
  • Powerful Essays

    Brand and Burberry
    • 3335 Words
    • 14 Pages

    Brand and Burberry

    To reach a recommendation, we come up with five criteria: Brand image; Financial implications; Competitive advantage; Market growth and Ease of business. As maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market we based our recommendation on this criterion.…

    • 3335 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Best Essays

    Consumer Behaviour
    • 3969 Words
    • 16 Pages

    Consumer Behaviour

    Dubois, B. and Paternault, C. (1995), “Observations: Understanding the World of International Luxury Brands: the Dream Formula”, Journal of Advertising Research, 35 ( 4), 69-75.…

    • 3969 Words
    • 16 Pages
    Best Essays
    Read More
  • Powerful Essays

    Burberry Case
    • 2746 Words
    • 11 Pages

    Burberry Case

    According to industry observers, luxury brands tend fare better than mass market brands during times of economic hardship. It is agreed, that in general luxury products are based on basic…

    • 2746 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Luxury
    • 2233 Words
    • 27 Pages

    Luxury

    Luxury as a Product 6. Luxury as Know How, Industry and Business 7. Luxury as a Culture 8. Luxury as a Customer 9.…

    • 2233 Words
    • 27 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Luxury Goods in India
    • 391 Words
    • 2 Pages

    Luxury Goods in India

    Luxury goods in India is still at a nascent stage of development. High net worth individuals such as businessmen, senior government officials, celebrities and top management in corporations are key potential customers for luxury goods. As consumers’ awareness about global luxury brands increases, they use such products to differentiate themselves from others. The high net worth individuals frequently buy luxury goods for personal as well as gifting requirements and global luxury brand operators...…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics