Anti laws of marketing & facets of luxury today

Submitted by:
Arpita Tripathy
Anti Laws Of Marketing
And
Facets of Luxury Today

Presentation Content
 Anti- Laws Of
Marketing
 Facets of Luxury
Today
 Analysis

1. Forget about positioning; luxury is
not comparative
 In Luxury, being unique is what counts, not any
comparison with a competitor.
 Luxury is the expression of a taste, of a creative identity;
 Luxury makes the bold statement “this is what I am,” not
“that depends”– which is what positioning implies.
 For example-Chanel has an identity, but not a positioning.
 Identity is not divisible, it is not negotiable– it simply is.
 Luxury is superlative, and not comparative.
Source:Jean-Noel_Kapferer,_Vincent_Bastien_The_Luxury_S(BookFi.org).pdf

2. Does your product have enough flaws to give it soul?
 This is a provocative statement. For most people, luxury is the last word in hand-
crafted or craftsman-built products.
 ‘Product excellence’ is the primary prerequisite of luxury.
 The aim of an upper-premium brand is to deliver a perfect product, to relentlessly
pursue perfection.
 For luxury brands are not interested in being the leader in utilitarian or functional
comparisons – primarily they are hedonistic and symbolic.

3. Don’t pander to your customers’ wishes
 The luxury brand, on the other hand, comes from the
mind of its creator, driven by a long-term vision.
 This relationship with the client is typical of postmodern
luxury and dates back to the 19th century.
 Historically, luxury was the creation of a talented
craftsman, using the very rarest materials, who accepted
commissions from a client or patron.
 Ex-BMW is that consumers regularly curse each time a
new 5 Series car is released, because it is certainly a fact
that this model does not give rear passengers enough
legroom.

4. Keep non-enthusiasts out
 In traditional marketing there is this
obsession with poaching clients from
other brands
 In Luxury, trying to make a brand more
relevant is to dilute its value, because
 Not only does the brand lose some of its
unique features.
 Wider availability erodes the dream
potential among the elite, among leaders
of opinion.
 Ex- BMW

The prime objective of traditional marketing is volume growth. It sets its sights at achieving leadership in
market share to gain muscle with mass distributors, department stores and superstores, and presents
itself as a force to be reckoned with in some of its lines.
5. Don’t respond to rising demand
 The prime objective of traditional marketing is
volume growth.
 It sets its sights at achieving leadership in market
share to gain muscle
 mass distributors
 department stores
 superstores
 presents itself as a force to be reckoned with in
some of its lines.
 Ex- At Ferrari, production is deliberately kept to
fewer than 6,000 vehicles a year – rarity value
sells.

6. Dominate the client
 Luxury is a consequence of
meritocracy.
 Once the exclusive privilege
of the aristocracy.
 Luxury today is what
restratifies our so-called
classless societies.
 But on the basis of merit, no
longer simply on birth.
 Luxury is the domain of
culture and taste.

7. Make it difficult for clients to buy
 The luxury brand is something that has to be
earned.
 The greater the inaccessibility – whether actual
or virtual – the greater the desire.
 As everyone knows, with luxury there is a
built-in time factor: it’s the time spent
searching, waiting, longing…so far removed
from traditional marketing.
 People do eventually get to enjoy the luxury
after passing through a series of obstacles –
 financial obstacles
 cultural (they have to know how to appreciate
the product, wear it, consume it)
 logistical (find the shops)
 time obstacles (wait two years for a Ferrari or a
Mikimoto pearl necklace).

8. Protect clients from non-clients, the big from the small
 Modern luxury works on the open–close principle.
 Too much ‘open’ is harmful to the brand’s social function –
Ralph Lauren’s success undermined one of the foundations of
his success with professionals in Europe
 In stores
 for example, it is necessary subtly to introduce a measure of
social segregation: ground floor for some, first floor for others.
 Armani set up specialist stores for each of his product lines.
Advertising and promotion is for all, but public relations are
ultra-carefully targeted

9. The role of advertising is not to sell
 Luxury marketing is completely
opposite to the mass market products
one.
 And there is no surprise that advertising
in luxury does not have the goal to sell.
 Look at a Patek Phillipe ad, for
instance, the one from the famous
“Generations” campaign.
 The campaign is emphasized by the
statement: “You never actually own a
Patek Philippe, you merely look after
it for the next generation.”
 The thing is that luxury is about dreams
and lifestyle and this ad is not an
exception.

10.Communicate to those whom you are not targeting
 Luxury has two value facets– luxury for oneself and luxury for others.
 In advertising for example, the media plan must concentrate on the target consumers and
nothing but the target consumers.
 Every person reached beyond the target is a waste of investment money.
 It is essential to spread brand awareness beyond the target group, but in a very positive
way– brand awareness is not enough in luxury; it has to be prestigious.

11.The presumed price should always seem higher than the actual
price
 As a general rule, the imagined price
should be higher than it really is. It’s the
opposite in traditional marketing.
 In luxury, when an imagined price is
higher than the actual price, that creates
value and this result:
 When someone is wearing a Cartier
Pasha watch, everyone around them
more or less knows its price.
 But tends to overestimate it (on account
of its aura of luxury). This increases the
wearer’s standing.

12. Luxury sets the price; price does not set luxury
 Money does not do a worthy job of
categorizing objects or stratifying them
unless they have been culturally coded.
 This ‘anti-law’ means that luxury is what
could be called ‘supply-based marketing’.
 In luxury, you first come up with a product,
then you see at what price you can sell it
 The more it is perceived by the client to be a
luxury, the higher the price should be.
Source:Jean-
Noel_Kapferer,_Vincent_Bastien_The_Luxury_S(BookFi.org).pdf

13.Raise your prices as time goes on, in order to increase
demand.
 In the standard market model, when
the price falls, demand rises.
 With luxury, the relationship is
reversed.
 Ex-In the 1950s, Krug was one of the
smallest champagne houses.
 Its champagne had an excellent
reputation, was adored by the great
artists and performers of the day, and
particularly appreciated in Great
Britain.
Source:Jean-

 One of the key principles of the luxury
strategy is to keep raising the average price of
the brand.
 More luxury customers are educated
customers.
 They are ready to pay more but for getting
much more.
 So, just increasing price without adding
significant value leads to disaster .
 As ‘luxury brands’ relying purely on Veblen
effect have quickly discovered at their
expense.
14.Keep raising the Average price of the Product range
Source:Jean-

15. Do not sell.
 The luxury strategy is the very opposite of the
volume strategy.
 If you pursue the strategy of systematically
raising all your prices.
 As illustrated by Krug, you have to be prepared
to lose sales and to lose customers.
 Most brands don’t dare risk it, or else go
running after customers.
 When you get to that point you’re no longer
talking luxury but mass consumption – which of
course can be extremely profitable as everyone
knows.

16. Keep stars out of your advertising.
 Using celebrities to promote luxury products is
extremely dangerous.
 A luxury brand is courted by the stars, in the same
way as those stars are courted by journalists and
paparazzi.
 Luxury brand’s have typical relationship with its
customers, it must respect them, but it also has to
dominate them.
 Calling on the services of a star is tantamount to
saying that the brand needs some of this star’s
status just to survive, and admitting that it has
none of its own.

 In traditional marketing, the brand seeks to
appeal and to create an affective relationship.
 For that it often uses music, music that is as
popular as possible, or at least appreciated by its
target audience.
 The luxury brand is a promoter of taste, like art.
Luxury is not a follower: it is creative, it is bold.
 Ex- Louis Vuitton has long been sponsoring
concerts of contemporary music.
 For example bringing the pianist Maurizio
Pollini to the Abbaye de Royaumont to perform
music by the little-known composer Luigi Nono,
rather than by a great such as Mozart or Chopin.
17. Cultivate closeness to the arts for initiate.

 Reducing cost prices is vital in the mass
consumer markets, and this often means
relocating factories.
 Luxury management does not apply this
strategy.
 When someone buys a luxury item, they are
buying a product steeped in a culture or in a
country.
 Ex-BMW, which is successfully pursuing a
luxury strategy, builds all of its automobiles in
Germany .
 Apart from the entry line: the 3 Series – and is
keeping production of the Mini in the United
Kingdom.
18. Do not relocate your factories

19. Do not hire consultants
 Ex . Any non-luxury
automobile
manufacturer should
be obsessed by
reducing costs.
 When one buys an
Audi every single
dollar paid is to bring
a return on
investment: you pay
for what you get.
 Management
Consultants sell ‘do
like others’.
 This is called
benchmarking or also
‘best practices’.
 Using management
consultants, in this
way would erode the
specific characteristics
of a luxury brand.

20. Do not test
 Luxury companies do not test among consumers. If you test, you
are a mass prestige company.
 Luxury brands aim at pricing power based on the status of the
brand itself as an emitter, shaping the taste of elites.
 Ex.80 percent of its new products are tested. Louis Vuitton,
Chanel, or Hermès never test.

21. Do not look for consensus.
 Any option could be chosen as long as it is elected by the
majority of common consumers.
 In fact, intimacy with luxury decision makers teaches us
that big success as a rule creates a lot of discussion within
the company itself.
 This can be held as a working principle of luxury brand
management.
 Ex. Angel (perfumes )failed by tests by succeeded by their
own original scent

22. Do not look after group synergies
 Implementing group synergies is one of the
most obvious ways to improve the net
financial result of a brand.
 Ex .As ford discovered with jaguar and
General Motors with SAAB, in luxury, it is
the best way to destroy the dream of the
brand.
 For some pennies saved, you lose your
pricing power – one of the strongest points
of a luxury strategy.

An independent study by ASSOCHAM also corroborates with the
above data. The study found that highest growth has been in in
jewelry, high end electronics, SUV Automobiles and fine dining.
Other products like accessories, apparel, wines & spirits continued
growing strongly. These product areas represent huge opportunities
for companies to invest.
23. Do not look for cost reduction
 Creating value is the motto in luxury marketing. But
this value creation must not come from cost
reduction.
 It must come from added value.
 Being creative is not enough to sustain a systematic
price increase – which is the key issue in luxury.
 For example, brands need lots of creativity in a low-
cost industry to reduce costs and invent new business
models, sell at a significant lower price than
competition, and be profitable – but this is the job of
the CEO

24. Do not sell openly on the Internet.
 Luxury purchase needs time and effort to be deserved, true price and no
discounts on excessive prices, one-to-one relationships with the
salespeople.
 Internet sales are extremely well adapted to fashion and premium, but not
to luxury.
 Ex. LV, The Internet can be used as a complementary service for
existing customers, or as initiation to the brand story or to the
product for potential and selected new customers.
 It cannot be used as a selling tool, except for products that are not part of
the luxury strategy of the brand, such as fashion lines or entry products.

On the Importance of the ‘label’
 One striking, and perhaps garish, aspect of luxury is the visibility of logos and brands. The
logo and name are large and obtrusive and meant to me noticed.
 This is the effect of luxury-for-others, serving the motivation not to have an item of quality,
but to show others that you have an item of quality.
 Luxury is the symbolic and hedonistic recompense of success, and therefore of the
acquisition of power.
 Ex-the Chanel symbol writ large on bags, totes and T-shirts.
 Burberry’s tartan makes it possible to distinguish a wearer from some distance on a Tokyo
street

Luxury: The product and the
brand
 When we think of luxury, the central unit
of analysis is the brand.
 A brand is ‘luxury’ when it is perceived as
such: a pantheon of so-called luxury
brands
 In turn a product is ‘luxury’ as long as it
bears the seal of a brand that is itself
called ‘luxury’.
 Ex-Lexus In luxury, it is the emotion that
must be sought after at the highest level
Source:Jean-
Noel_Kapferer,_Vincent_Bastien_The_Luxury_S(BookFi.org).pd
f

The ingredients of the luxury
product: complexity and work
Source:Jean-
 The value of an object derives from
three sources: its usage value, its
exchange value and its work value.
 In terms of luxury, only the third is
operational, whereas it is practically
non-operational for the majority of
current products,
 Hermes bag could be compared to a Coach
bag, and we could establish a hierarchy based
on which is the most functional.
 This comparative approach suits the upper
range, but not luxury.

Luxury is made by hand
 The advertising for the Aston Martin DBS states that
it is ‘handmade in England’.
 the acme of luxury is not to be entirely handmade.
 Who today would wish for a car built by hand?
 It is the sign of artisanship. Luxury is not artisan-
ship; it is on the side of art.
 The Indian government wonders why India, despite
its artisans, has not emerged in the global luxury
market.
 This being said, every luxury object should have
some part, even small but spectacular, that is
handmade.

Tradition Is not passéisme
 Chivas Brothers created the luxury whisky brand
Royal Salute: its first product, the RS 21, was the
tribute to the new Queen Elizabeth II, in honor of
her coronation in June 1953.
 The slogan of Patek Philippe90 Back to luxury
fundamentals advertising is, ‘Begin your own
tradition’: this shows a father and son, both very
modern. Patek Philippe 2013 Short Film - Begin Your
Own Tradition(0).mp4

Superlative, never comparative
 An essential consequence of the manner
of qualifying an object as a luxury object
is the self-centred nature of this
qualification.
 Luxury never compares itself with others
 In order to appreciate the object at its true
value, it is necessary to know it.
 Otherwise it is just a piece of
merchandise.
 Can you compare a Porsche and a Ferrari?

Real or virtual rarity?
 Rarity is central in identity of luxury.
 All luxury speaks of rarity:
 rarity of ingredients
 Artisans
 know how
 the ultimate rarity
the brand and the values it respects.
 Luxury market is born from abandonment of
rarity.
 Ex-LVMH, Richemont etc.
 Reasons being-
 There are more and more rich people and very
rich people
 The demand of Ferrari has never been higher
 In Asian countries ,the importance of social
integration is such that everyone is ready to
buy ’instant class’.Source:Jean-

Luxury and exclusivity
 Exclusivity is an expression of uniqueness.
 At the pinnacle of exclusivity is the unique individual
whose possessions are uniquely their own - they are not
and cannot be owned by others.
 The luxury product is exclusive in two ways: ‘I am the
only person to own one’, and ‘This excludes the other’.
It makes the owner someone special.
 Ex-Louis Vuitton bags, Chanel perfume

Luxury And Fashion : An Essential Difference
ATTRIBUTE FASHION BRANDS LUXURY BRANDS
Product Design Changes frequently
Iconic design that changes
very rarely as an evolution
Price
Broad price range, depending
on the brand positioning
within its category.
Inaccessible to most,
price acts as a selection tool
that limits the access to the
brand.
Price Discounts
A very common strategy, in
particular at the end of the
season, when the product is
no longer in fashion.
Not advisable, the high price
increases product desirability.
Celebrity Endorsement
Seeking endorsement from
current trend setters in
entertainment and sports is a
very common strategy.
Not advisable, as luxury
brands transcend the current
trends and celebrities.

Product Line
Can be broad-one product for
each segment targeted.
Very narrow-a flagship
product and only few
variations.
Country of Manufacture
Usually manufactured in low-
cost countries, to allow
for price flexibility at the end
of the season. COM is not
important in purchase
decision.
Country of manufacture is part
of the brand myth.COM is
very important in the purchase
decision.
Delivery
Immediate. The goods have to
be delivered in time to capture
the latest trend.
Not urgent. The wait for the
product to be
built/created/fully matured
contributes to the overall
luxury experience.

Luxury and art
• Luxury is an industry that creates objects that we use and wear with profitability
goals in mind
• Art pieces are unique and have a meaning that is different to every one of us
depending on our personal history.
• What luxury and art do have in common is excellence and aesthetic, as well as
bringing out a sense of comfort
• Collaborations between luxury and art can take many forms: sponsorships,
commissions, creation of museums and performances to name a few.

Luxury and charity
• Helps to purchase in a guilt free way, which helps to increase their revenue.
Ex: Godiva chocolates were made and sold in association with the World Wildlife Fund,
the choice of Godiva jumped to 78 percent.
 The consumer sees that some of this money is going to a good cause, and that diminishes
the guilt.
 Few examples:
1.Bulgari
 The Italian house has raised more than $25m since 2009 for Save the Children
2.Hublot
 The watch company has collaborated with Depeche Mode, the pop group, on a limited
edition watch.

Luxury and cultural mediation
•A strong brand is one that has been able to create aficionados,
eager and proselytizing
clients.
•Money does not buy access to everything.
•Culture is the biggest explanatory factor in the consumption
of luxury goods.
• It increases the understanding of uniqueness and rarity.
•New luxury’, where the value is often essentially
conveyed by the media.
•The object in itself holds few mysteries or character
without a signature or a griffe.

• Cultural mediation is less operational as it is not
needed.
•Clothing, accessories and make-up have become
supports for the stretching of luxury brands.
•Some cultural baggage is therefore necessary to
appreciate luxury.
•The two individual factors that explain the consumption
rate of luxury products are –
1. cultural capital
2. income.

Luxury and history
•There can be no luxury brand without roots,
without a history to provide the brand with a non-
commercial aspect.
•It constitutes a fabulous treasure through the
mythologization that it enables.
•By creating a sanctum of uniqueness, of non-
comparability, while being the origin of an authentic
lineage to which each new product can lay claim.
•History inverts the relationship with the object and
with the client.
•It is not a case of immediacy, but of lineage, of
inheritance.

Luxury and time
•In a very recent advertisement, Hennessy, the
world’s luxury cognac, highlighted a quotation
from Richard Hennessy himself.
•Luxury embodies time: this is an essential source
of its value.
•Luxury takes its time; it has time.
•This is what distinguishes luxury from the
productivist logic of industry, where efficiency is
the criterion of good management.
• ‘Time is money’ means: work quickly and fast
but for luxury, it means the opposite:

 Professor Jean-Noel Kapferer and Vincent Bastien, proposed anti laws of marketing .
 The marketing strategy defined by those laws can be implemented beyond the luxury
market.
 Apart from the 12th anti-law (“Luxury sets the price, price does not set luxury.”), the
word “luxury” does not appear in their expression.
 Ex-Apple, which is not a luxury brand, has been immensely successful in applying the
luxury strategy

Cartier – Fine Watchmaking - YouTube
(360p)(0).mp4
Apple watch series 1 Trailer - YouTube
(360p)(0).mp4

Celebrity Endorsement
• Tiffany’s choices of Lady Gaga
• Kaia Gerber’s collaborations with brands
including Saint Laurent, Marc Jacobs, Versace
and Chanel
• Kendall Jenner plentiful endorsement deals
with labels such as Long champ, Missoni and
Fendi.
• Despite being the face of a brand, celebrity
ambassadors also have personal lives, careers
and opinions that may occasionally outshine or
undermine the message the brand is hoping to
portray via its selected spokes models.
Source:
https://www.luxurysociety.com/en/articles/2018/08/lu
xury-brands-pick-risky-celebrity-ambassadors/

Digital platform
• Luxury brands have been slow to embrace ecommerce and digital innovation.
• The situation is, however, starting to change.
• From Cartier to Louis Vuitton all brands are trying to be online
• High-end businesses can be categorized in one of these three archetypes:
 The Hesitant holdout:
 The Selective e-tailer
 The Plugged in Pro
Source: Mckinsey

Don’t Relocate the factories
• Yves Saint Laurent, which decided to move its head office from France to America and
rename the brand to “Saint Laurent Paris.
• This decision has created an huge public outcry in the world of fashion .
• By taking this decision, they seemed to have forgotten about their heritage and identity.
• To make it worst after realizing the consequences of this decision they rowed back and
announced that the name “Saint Laurent Paris” will only be used in the logo.
• This happened when Hedi Slimane was the creative director for YSL

Source:/www.researchgate.net/publication/281251957_The_Luxury_Strategy_Break_the_Rules_of_Marketing_to_Build
_Luxury_Brands
France USA China Brazil Germany Japan
High
quality
High
quality
Expensive High
quality
High
Quality
High
Quality
Prestige Expensive High
quality
Pleasure Expensive Prestige
Expensive Prestige Fashion Dream Fashion Expensive
Pleasure Pleasure Minority Expensive Dream In
temporal
What luxury means for affluent clients in six major luxury
markets?

The country-specific difference can also be noted as far as luxury is concerned:
France & Italy
 Luxury is a part of their cultural
tradition, it’s their way of life.
 French and Italians feel proud of their
luxury history and exceptional
craftsmanship.
Germany
 Germans consider the functional aspect
of the brands and things and associate it
with luxury.
 Importance to product’s performance
and its quality.
 Excellence in the automobile industry
has earned him the world’s repute.
 Express the luxury by having their
preferred luxury car.
Source: http://www.wavecitycenter.in/blogs/living/the-luxury-of-todays-era-concept-meaning/

Russia and Poland
 Driven by the people who are status-
oriented and want to display their status
which is different from others.
 Luxury gives them the high position in
the society and they derive social
advantages by being luxury buyers.
Asian countries (India)
 In India and other Asian countries,
luxury is thought as a sign of prosperity,
social dominance, and reputation in the
reference group.
 Most Indians would prefer buying a
premium home or a serviced residence in
a project like Wave City Center as a
symbol of their luxury.
 In Asian countries, luxury is not limited
to particular group or clientele, nor does
it work this way, luxury markets now
take many aspects of buying motives into
account.
Source: http://www.wavecitycenter.in/blogs/living/the-luxury-of-todays-era-concept-meaning/

References
 file:///G:/Luxury%20Reading/Rosa.pdf
 http://www.wavecitycenter.in/blogs/living/the-luxury-of-todays-era-concept-meaning/
 https://www.aliciarichardson.co/blog/2018/6/8/02-luxury-brand-value-conspicuous-
consumption
 Jean-Noel_Kapferer,_Vincent_Bastien_The_Luxury_S(BookFi.org).pdf
 Luxury Fashion Branding Christina Ø. Hammer Aarhus School of Business and
Social Sciences BA MMC Thesis
 http:/www.researchgate.net/publication/281251957_The_Luxury_Strategy_Break_the
_Rules_of_Marketing_to_Build_Luxury_Brands
 www.researchgate.net/publication/281251957_The_Luxury_Strategy_Break_the_Rul
es_of_Marketing_to_Build_Luxury_Brands

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