2. • Swarovski is the premium brand for the finest crystal adornments since 1895.
• It is associated with top-class designers and brands.
• Its creative manufacturing process remains a secret that is part of Swarovski’s
legacy.
• Jewelry’s prices range from $35 up to $1,500.
• It has physical and online presence, i.e., Swarovski retail stores and
swarovski.com
• Although Swarovski creates crystal jewelry and not diamonds, it managed to
compete with Tiffany & Co.
Background
4. • Focused on
relationships
• Have a desire to make
someone feel good and
special
• Buy unique gifts for
their special ones
People
who buy
Swarovski
as a Gift
Demo-
graphics
Psycho-
graphics
• Women and men
• Single or married
• Age group of 18-45
• Medium to High Income
Target Group
5. • Usage Level: Bought at least
once in last 2 years
• Price Sensitivity: Low
• Level of loyalty: Medium to High
• Product Involvement level: High
People
who buy
Swarovski
as a Gift
Behavior
Geo-
graphy
• Living or spending
most of the time in
metropolitan areas
• Living in San Francisco
Bay Area
Target Group
7. • Qualitative research :
– Personal interviews with Target group (in-person) and competition
– Sample size of 9 for Target group and 4 for competition
• Quantitative research
– Survey with Target group, non buyers and self buyers
– Sample size of 45
Research methodology
9. • People gift Swarovski to the
special people in their lives to
show how special they mean to
them. Swarovski correctly
communicates people’s feelings
to others.
• People gift diamonds and gold to
people who are not very close to
them. They want to impress those
people by the value of the gift and
not what symbolizes.
Insight 1 : attitude (belief)
• Ads within malls that
emphasize relationships:
How a
mother/wife/daughter felt
when she receives a
Swarovski.
• A wall inside the store to
show relationships’ special
moments. People can
share their own moments
of Swarovski.
10. • Respondents give high
importance to variety as well
price and value for money when
they decide on a gift. However,
they are not looking for
discounts.
Insight 2 : attribute
• Stores should always keep
the right quantity of
bracelets and earrings that
are within the $75-$150
price range. Earrings and
bracelets are the most
common items that
people buy for their
special ones.
11. • Swarovski adds special moments
to your life.
• People can create memorable
moments by buying something for
their loved ones without an
occasion.
Insight 3 : motivations
• Share videos of real-life
moments on YouTube,
such as meeting someone
special after a long time or
saying thank you.
12. • Stages of decision making for
men take place nearby/in the
store.
• Men seek assistance from
women in making the final
choice.
• Men ask their friends to
accompany them.
Insight 4 : decision making process
• Provide personal shoppers
in stores.
• Leave the choice on
customer .
13. • Women like to talk about
jewelry with family members
and ask their opinion .
• Men don’t discuss jewelry
related topics with anyone and
make the decision without any
consultation with family
members.
Insight 5 : Gender and family influence
• For women, add frequent
posts on social media and
involve into discussions
(#TellUsWhatYouBought).
• For men, keep
individualistic approach
towards every post.
14. • Customers want to enjoy the
exclusivity associated with
Swarovski.
• Negative attitude towards
personal emails, TV
advertisements or
Billboards.
Insight 6: Communications
• Advertisements only near
the stores.
• Social media to also keep
the brand equity intact by
posting absolutely
relevant material.
15. • Customers trust that
Swarovski knows what a
woman wants and that if
they go to Swarovski, they
will end up liking something
and buying it.
Insight 7: attitude
• The adverts to include a
statement, “ We know
what a woman wants”.
• On social media – “Unable
to decide what to buy for
the lady you love.
Swarovski knows exactly
what a woman wants.”
Come to Swarovski and
ask for our personal
shoppers.
16. • Customers take pride in
associating with Swarovski’s
prestigious history,
authenticity and skilled
craftsmanship in creating
every piece .
Insight 8: attitude
• Archived pictures of old
times where people are
producing Swarovski
jewels on social media.
• Show some old trends and
how Swarovski was a part
of it.
• Share facts about the
source of crystals.
17. • Use words in various
communication methods
Brand association – word cloud
18. • Swarovski store environment is welcoming to everyone unlike
competitors’ stores.
• The pricing strategy is perfect as people associate price with quality .
• The advertisement creativity outside the stores is eye-catching and
people visualize their special ones wearing Swarovski ; looking
glamorous and beautiful .
Few insights on what Swarovski is doing right
19. 1) How Swarovski Innovated And Stayed Relevant To Its Market. (November 17, 2014). Fashionbi: Data and
Insights about Brands in the Fashion & Luxury Industries. Retrieved from http://fashionbi.com/insights/marketing-
analysis/how-swarovski-innovated-and-stayed-relevant-to-its-market
2) Swarovski Targets Teens with Cut-Price New Label. (2012). Marketing Week, 35(7), 4. Source: Business Source
Complete
3) Carter, B. (February, 2015). IBISWorld Industry Report 44831: Jewelry Stores in the US. IBISWorld. Retrieved
from http://0-clients1.ibisworld.com.library.ggu.edu/reports/us/industry/default.aspx?entid=1075
4) Zelesny, E. (January 21, 2011). Swarovski has right formula for building long-term loyal customer. Luxury Dailly.
Retrieved from http://www.luxurydaily.com/swarovski-has-right-formula-for-building-long-term-loyal-customer/
5) Schiffman, L., & Wisenblit, J. (2014). Consumerbehavior (11th ed., Vol. 2014). Prentice hall.
6) Online Survey Software Tools and Solutions | Qualtrics. (n.d.). Retrieved April 13, 2015, from
http://www.qualtrics.com/research-suite/
7) Tagxedo - Word Cloud with Styles. (n.d.). Retrieved April 13, 2015, from http://www.tagxedo.com/
8) About Swarovski crystals. (n.d.). Retrieved April 12, 2015, from http://crystals.swarovski.com/brand/about-
swarovski/swarovski-crystals.en.html
9) Brand Survey Findings. (2012, October 4). Retrieved April 13, 2015, from
https://brandtiffanyandco.wordpress.com/brand-survey-findings/
References
I will introduce you to our target group. It would include people who buy Swarovski product for someone else as a gift. Here are the demographic characteristics of the group. We target both women and men, single or married, of the age from 18 to 45 because according to most of Swarovski’s campaigns this is an age group the company targets. Income is from medium to high because as Zina mentioned prices range from 35 to thousands of dollars.
For psychographic characteristics interests and attitudes of the group were identified: Focused on relationships, have desire to make someone feel good and special, tend to buy unique gifts for their special ones.
The next are common behaviors held by target group. We concentrate on people who bought Swarovski at least once in last 2 year, because the proportion of heavy users is small for jewelry industry. Price sensitivity is low. Swarovski is successful in its unique marketing approach of building customer loyalty, and that is why the loyalty level is from Medium to high. And since Swarovski is a jewelry brand, product involvement level is high. In terms of geography, out target group are people living or spending most of their time in metropolitan areas, and in the scope of this research we focus on San Francisco Bay Area.
Several insight about decision making were discovered:
First, all the stages of decision making for men takes place nearby or in the store, because male respondents said that they didn’t make any research beforehand, but just noticed the store while passing nearby it, unlike the female respondents who actually said they had looked for products online and already had knew what to expect from the store.
We also found out that men actually seek assistance from women in making their final choice or ask their female friend to accompany them. Combining these insights the following actions are proposed.
To Provide personal shoppers in stores: This would work in following way: when a man enters a store, he is informed about availability of personal shoppers and that they can assist him if only he asks for it. So thereby, we leave the choice on the customer in the case if he doesn’t want any help.
This insight shows how people are influenced by family members depending on the gender.
Women like to discuss and talk about jewelry with their family members and ask their opinion when buying gifts for someone else.
Whereas men like to keep the process to themselves, they don’t discuss jewelry related topics and make the choice and decision without any consultation with family members.
Posts on social media should target more women then men and encourage them to participate in discussions by launching events and for example using hashtags like #telluswhatubought
The posts directed to men should appear more rarely and individualistic approach should be kept towards every post with the focus on relationships
1) What was found out thought qualitative research is that customers want to feel that Swarovski is not a brand that is available everywhere to everyone and hence they want to enjoy the exclusivity associated with the brand.
2) Moreover, respondents expressed negative attitudes towards some promotional techniques like personal emails, ads on TV and billboards.
Based on this, here are the actions for company:
Advertisement should appear only near the stores. That means within the malls / or on the street where the store is located
To keep brand equity intact company can post only relevant materials to their social media, this would also prevent from being intrusive
Any reduction in price will disconnect people on the association as they buy for special people to create special memories.