Masstige Brand Positioning

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.

There is relatively no threat of substitution in the luxury goods industry. This is mainly because of the quality and price of substitutes, and the cost of switching to the consumer. The price of counterfeit goods that copy the luxury goods causes there to be a positive monetary cost in switching but there is a loss of prestige as luxury goods are characterized as having a persona, paucity, that are accompany by a performance of a quality product with unique design, extraordinary capability and innovation. There is no comparison between luxury goods and the

The government, as a socialist entity, has policies that publically fund health care, progressive taxes, outlaws capital punishment, tries to eliminate poverty, emphases on cultural diversity, and have legalized same-sex marriage.

The market for Aqua Derm product covers a large area of teen and young women populated groups. It will be distributed in many locations where they are usually go for shopping or even just for hangout such as mall, beauty store and supermarket where mother do groceries. It is also a known area for the demographic we are targeting.

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.

The global luxury goods’ marketplace in the past decade has experienced nothing short of a complete evolution and transformation. This industry has endured global economic downturns in advanced economies such as the United States requiring them to branch out of their comfort zones and expand into emerging markets specifically the BRIC countries. These Asian nations possess high GDP rates that are anticipated to increase significantly in the upcoming years. Luxury goods were once a possession of strictly the wealthy, brand conscious consumer with a high disposable income. Within these developing economies reside a “new breed of young entrepreneurs and noveau riche consumers”, offering large potential within the

Coach Inc. operates in the luxury goods industry where it sells high quality leather handbags, accessories, and other leather products. The scopes of the products within this market are rated high in their “quality, style, and value” (Gamble, 2015, C-71). These qualities of the luxury goods are rare, desirable, hard to replicate, and have strong brand reputation. Firms within this market choose to compete geographically in countries North America, Europe, and more recently Asia. Within the luxury goods market there are three sub-categories: haute couture, traditional luxury, and accessible luxury. When Krakoff joined Coach in 1996 he implemented a successful strategy to focus in the “accessible luxury” segment. By 2000, Coach was dominating the sub-category market over its competitors DKNY, Dolce & Gabanna, Giorgio Armani, and etc. The luxury goods industry had a direct bearing on Coach’s profit potential. This effect can be explained by looking at the environmental layers in detail, moving from Coach’s general environment to its task environment.

Based on the article “Types of Luxury Consumers” written by Robert Frank, the issue that arise is the consumers often spend lavishly to communicate wealth and status to those around them. Peoples nowadays believe that having an expensive well-known items will gives them a high social status. This kind of mind set has made a lot of consumers to have a collection of branded things. The author’s point of view is about the theory of luxury lifestyles among luxury consumers. The author also states an argument on a revealed twist in the conventional wisdom surrounding product iconography and branding. The tone used in the article is neutral which is objective as he simply stating the fact and do not influence by emotion or personal opinion. His targeted

In 2007, Euromonitor International reported luxury goods market sales to exceed US$130 billion, and in 2016, the report luxury goods market more than double to an exceeding sale of US$388 billion (Fionda & Moore, 2008). The significant growth rate in estimated market value demonstrate an opportunity in the luxury goods market. While flagship stores are not exclusive to the luxury sector, they manifest an important role in luxury brand recognition among consumers. It is essential to further investigate the role of flagship stores as they are an integral element of luxury brand identity (Moore, Doherty, & Doyle, 2008). Previous research explore the nature and role of flagship store functionality and brand consolidation regarding

Expanding the men’s skincare line is a strategic objective for Yue Sai because the saturation on this market is very low, that is why there is a tremendous potential in this segment. Yue Sai should also do advertising for men’s skincare line. Besides, in order to refresh the brand, we suggest Yue Sai to launch a new basic line with products linked to a new proposal packaging. By this way, the objective will be to attract new customers by proposing compelling offers.

Opportunities: the changing preferences by middle class consumers towards luxury products create new opportunities for growth in both US and international markets.

A good labeled with luxury brand, of which is also known as superior brand, opposites to those goods labeled for everyday purpose. And in the meanwhile, it is always associated with fashion factor, as a common sense, when people talk about luxury goods. Apparently, luxury brand is treated as a social indicator in some extends since it becomes one of the most important symbols for social status and life style in worldwide nowadays. In the meanwhile, online shopping continues to a robust growth, with a result of online retail sales contributing to 4.9% of total sales in the first quarter of year 2012, under the phenomena of economic crisis(Bureau, 2012). However, if luxury brand performs a good show for online shopping adoption, especially in China. It is known to us that after year 1978 for the Chinese economic reform, China has occurred an explosive economic increase, having a total number population of 13 million people. With a better life standard, Chinese people are hard to get contented by daily necessities. Instead, they want to show off their social status to some extent with spare money. Therefore, luxury branding goods are one of their choice. Also, it is meaningful to get insights from Chinese local people to better understand their online behaviors towards luxury branding goods, as China is a growing market for international business(Brennan and Wilson, 2012).

I believe that nowadays, luxury brands who tend to be reserved to elites are democratizing themselves. Aiming to reach more customers, luxury brands use new strategies: Implementation of entry-level products, collaboration with Fast fashion brands (H&M x Karl Lagerfeld).

Ans. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. A good brand positioning helps guide marketing strategy by clarifying the brand’s essence, what goals it helps the consumer achieve, and how it does so in a unique way. The result of positioning is the

RESEARCH FOCUS: The focus of this research is to identify the influences while making purchase decisions of a luxury item and to what extent people use brand awareness in choosing brands. The aim is to understand the interpretations of brand and cultural associations. This chapter provides an