People don’t consume anymore for the mere functionality of the product, but to seek meaning. Brands are frequently used as symbolic resources for the construction and maintenance of identity. This is why strategy plays a fundamental place in planning a maintaining a brand success. Graphic designers and marketing specialists can can bring a brand’s value to life By understanding the crucial elements of branding.
This article will review basic concepts of a branding strategy and how to apply them in Luxury Branding.
Brand managers need to establish what it’s important to consumers to lead to purchase and loyalty. According to Hajo Reinsenbeck and Jesko Perrey in their book “Power brands: Measuring, making and managing brand success“, brand drivers are necessary in order to identify all elements that a brand needs to pursue their goals. Additionally, Helen Vaid in her book “Branding: Brand strategy, design, and implementation of corporate and product identity” defined six elements necessary to provide a brand with value. These elements are
- Experiential. How the consumer should feel when acquiring the brand’s product or service.
- Functional. The benefits the brand provide to consumers.
- Emotional. How the consumers should feel about owning the brand.
- Rational. Appeal to the consumer’s logical side.
- Cultural. Create a culture about buying the brand.
- Visual. How the brand should look like.
Brands should use these elements wisely according to their objectives and the characteristics of their products and services.
Although some general concepts of branding apply to luxury branding, brand managers need to take in account specific elements to convey meaning through brands of luxury goods and services. Fashion has always played a significant role on society. Moreover, luxury fashion has been playing a noticeable role in the social and economic orders of societies and economies. Deloitte revealed that the top 75 luxury brands sold $171.8 billion net in goods in 2012.
Whereas luxury brands do not have complete control on the information that their consumers manage, they can influence on where and how they can find the complementary opinions. For instance, by implementing indirect advertising campaigns, such as publicity, sponsorship of strategic events, and public relations, luxury brand managers can place their information next to the consumer’s complementary sources of information.
It is relevant for luxury brand managers of global markets to understand the cultural meaning that “luxury” has around the world because although the values that their brands sell should be strongly consistent, the approach to consumers depending on the region needs to change in order to maintain the harmony of brand meaning.
Something I will remember from Jean-Noel Kapferer from his book The new strategic brand management: advanced insights and strategic thinking, “Being extremely wealthy is not enough to be a qualifier of luxury. Luxury is about knowing how to spend, rather than having spending power.” Therefore, it becomes necessary for luxury brands to make their consumers realize that their surroundings are supporting the idea that they must buy their products in order be seen as a smart and sophisticated buyer.