Marketing Plan For Strategic Partnership Group Program

The Marketing Department is responsible for communications to their customers, consumers and referral sources. It is responsible for ensuring continuity and consistency in the presentation of the business brand. It is responsible for the development and placement of advertisements (print and broadcast), all collateral materials (including brochures, posters, fliers, stationery, business cards, signage, consumer and physician newsletters and publications and the development and maintenance of the consumer website, or organization.) It coordinates the organization’s participation in various community events including job fairs and involvement with charitable organizations. The Marketing Department works with the Centers of Excellence and select programs within the company’s system to develop marketing plans and coordinate the activities outlined in the plans.

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

The author who inspired the topic of this thesis is Dana Thomas. As a fashion writer, Dana Thomas, has analyzed the changes in luxury fashion business. Thomas has been writing about fashion for the past twenty-five years in various journals such as Newsweek, The New York Times Magazine, New Yorker, Harper’s Bazaar, Vogue, Financial Times, and more. Dana Thomas’ two books, Deluxe and Gods and Kings, are the inspiration for this thesis. Deluxe: How Luxury Lost Its Lustre goes into great detail the secrets of the leading luxury industry brands, namely Prada, Gucci and Burberry, to showcase the “New Luxury” of today and how “luxury lost its luster” by featuring the manufacturing and logistical processes. Thomas exposes that many luxury brands use the same Asian factories that mass-market retailers employ, which raises questions concerning quality and craftsmanship for luxury brands.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered 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. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

There is a strong level of rival among few large firms in the luxury industry. The firms have differentiated strategy and some although it is not an industry practice offered reduced prices during the Great Recession to improve their sales, some firms were not able to survive and declared bankruptcy. There is a high exit barrier as it is difficult for firms to recover their investment.

In nowadays, buying luxury brands is not only showing a sign of wealth, but also a kind of rewards for people’s hard working. Luxury products sell high market prices because of their designs, brand names, and the qualities. People want to buy luxury products because their quality is better than target brands. For example, the brand like Bottega Veneta is known for its traditional design of leather goods; their handbags are handmade in Italy. Comparing to Bottega Veneta to target brands, Bottega Veneta’s design will not easily out of style, but target brands will easily out of styles because their designs are relatively ordinary. However, in the recent year, some luxury brands’ reputation has gone done because those brands were shifting their factories to other countries and then shipping back to Italy just for the label. Technically, the phrase “Made in Italy” is not really manufacture in Italy anymore, sometimes this product 's qualities are not as good as before. There is a rising concern of whether these luxury goods really match with the expensive price tags.

Luxury brands are actively responding to the latest economic downturn, said to be the worst since the Great Depression, racking their brains to escape the grips of the falling luxury goods market. Indeed, the hit to sales has been particularly bad as industrialized nations, traditionally the main luxury good markets, have suffered greatly. With luxury goods consumers having become more diversified by region, class and age, and an increasing number of luxury brand companies adopting professional management structures, luxury brands are approaching their

One of the competitive forces that have a great effect on industry attractiveness is the threat of new entrants and how hard it is to build up a brand name that can compete with the likes of Coach, Louis Vuitton, Dolce & Gabbana, and Versace. It takes deep financial pockets and great commitment to create luxury image with well-known brand and superior quality. Thus making it costly for new entrants to gain exposure and market share. Luxury items are known for their superior quality and to some people, the status that they carry. New entrants must build this status from the ground up, which can prove difficult without

Many aspects within the luxury goods industry point to the competitive forces from new entrants being moderately high. Healthy earnings from competitors indicate an ease of entrance for newcomers in the industry. The industry’s annual revenue figures as well as an emphasis on brand name and P/Q rating, place the industry at low risk of failure. Two other factors that contribute to the ease of entry for newcomers in the industry are a large pool of entry candidates and relatively small capital requirements.

As per the Euromonitor Report, India is an emerging market that has pulled in large number of foreign investments from multinationals enterprises in the last few years. The luxury market in India is gaining high-end visibility with each passing year. The global luxury brand acknowledges the potential of the Indian luxury market that indicates this sector as disproportionately higher in compared to size of the current markets today.

The luxury market has challenged its growth by increasing its growth rate over the last decade (except 2001). This strategy was especially supported by the emerging markets of China, India, and Russia… as growth relayed in the mature and almost saturated historical area (E.U., U.S, and Japan). The increasing trends of international tourism, ’new rich people‘ and the favourable world economic growth, enabled the support of the luxury industry and the emergence of new customers and the subsequent trading areas. However, the financial

Luxury goods serve a purpose that extends way beyond functionality and need. A bag that costs $15,000 or a pair of shoes priced at $500 does not necessarily signal that they perform better than goods priced significantly lower. The disproportionate prices of luxury goods reflect so much more than the eye can see, the history behind the brand, the story that it tells, and the scarcity and exclusivity it aims to achieve in the mind of the consumer. A premium brand, by contrast, can generally be described as a good that a customer pays more for because they are getting higher quality product. Luxury brands are not inherently inferior because they do not offer higher functionality. Sometime signaling the belonging to an exclusive group is important to a person, and thus worth the monetary cost. A premium product, though, is a good that people are willing to pay more because they believe they get more, whether that is higher quality or better performance. A customer does not purchase a luxury product because they know it will perform better, they purchase it because of the status and appearance that it signals to those around them.

LV should focus more on the Europe and US markets, and the absolute and aspirational customer segments. According to date of world luxury goods market study, both Europe and Americas markets together shared over 65% of the total market in 2011, while they were also predicted to have over 5% growth in next year. What is more, data of competitor sales analysis also show that most of them had high revenue in those two markets. As it is well known, Europe and Americas are the traditional market for the luxury industry and almost have huge customer base who are main the absolute and aspirational customer segments. As to focus on them, LV needs to spent more money on built high as well as upper class fashion and offer more made-to-measure and high quality product and/or services. In the same, the degree of rivalry was high in this two market where all the luxury companies targeted and

Apart from the social parameter to determine consumer behavior toward luxury, other metrics influence the value of the brands and consumer perception. It entails an exploration of the luxury value conceptual model, which incorporates financial, societal, personal, and interpersonal factors influencing the luxury brand and value on customers. Consumers must believe the credibility of the brand reflects luxury, because it is made up of characterization of prestigious brand-name products, especially the psychological benefit of high prices during the recession. In this highly competitive market environment, is important for a company to manage the client or brand, assisting clients in their ability to distinguish between different brands, makes their brand valuation of competitors (Kim, Johnson, 2015). Academic views on luxury brand frequently identify what consumers typically can offer luxury list they course considered to be luxury brands such as Louis Vuitton, Ferrari, Chanel, etc. However, some consumers may be difficult to determine

One other possibility for luxury brands is to focus their marketing on what makes them special. If you can position yourself as the alternative, the standout from everything else on the market, that will capture people’s attention. In that case, you won’t need