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Presented by Pam Danziger, Unity Marketing at
LuxePack New York
2
©Unity Marketing, 2016
Former Harvard University Professor, and now Professor Boston
University, Juliet Shor introduced the ‘lipstick effect’ theory in her book
entitled The Over Spent American (1999). Her thesis:
Consumers will buy higher-priced, more prestigious lipsticks,
specifically Chanel, that are used in public, vs. lower-priced, less
prestigious brands that are used in privacy of the bathroom. Further in
times of economic troubles, consumers will indulge in ‘little’ luxuries, like
Chanel lipstick, instead of expensive luxuries, like Chanel suits or
handbags.
Adding supporting evidence of the ‘lipstick effect,’ Leonard Lauder
confirmed that sales of his company’s lipstick rose after 9/11 terrorist
attacks in a New York Times article published May 1, 2008.
Premise #1
 Is luxury purchased primarily for
status & prestige?
ONLY SOME PEOPLE
Premise #2
 In times of economic turmoil &
uncertainty, do consumers opt
for ‘little luxuries’ rather than
‘big luxuries’?
YES!
3
©Unity Marketing, 2016
4
©Unity Marketing, 2016
5
©Unity Marketing, 2016
 Same food served in different ways creates
vastly different customer experiences and
vastly different results.
 Creating heighten expectations of a fine-
dining experience creates the impression
that people got fine-dining quality food.
They rated the food very high.
 The exact same food served without those
fine-dining expectations resulted in the
very same food getting a much lower
rating.
Dr. Brian Wansink is the
John Dyson Professor of
Consumer Behavior at
Cornell University, where
he directs the Cornell Food
and Brand Lab.
He studies how people’s
perceptions about food
impact their behavior
around food.
6
©Unity Marketing, 2016
©Unity Marketing, 2016
7
8©Unity Marketing, 2016
Old Style New Style
Luxury Has a Brand New Style
High negatives
• Conspicuous consumption
• Indulgence
• Exclusivity
• Elitism
• Extravagance
• Wealthy 1%
Luxury for the Rest of Us
• Practical
• Functional
• Inclusive
• More affordable
• Democratic
©Unity Marketing, 2016
9
10
“Luxury is just a marketers’ term that means something is
overpriced and too expensive.”
Calling a brand ‘luxury’ doesn’t necessarily make it so
Use the ‘L-Word’ with extreme caution!
©Unity Marketing, 2016
Luxury
for Me
Luxury isn’t about you, and what you think, but about me and
who I am
©Unity Marketing, 2016
11
 Sport watches (FitBit, Ironman, Shinola
Runwell) are the new ‘anti-status’
symbol, that say not about how much
watch I can afford (e.g. Rolex) but who I
am and what I need my watch for.
 Heard in recent focus group with
millennials, “The initials after my name
are my status symbol.” Consumers are
looking for new
meaning beyond
traditional status
symbols.
Status symbols
reflect elitism,
snobbishness, one-
upmanship.
Anti-status status
symbols tell you
about me.
©Unity Marketing, 2016 12
For Dr. Perricone
beauty the luxury is on
the inside not on the
outside. And the
positioning of the ‘no
foundation foundation’
is about the luxury of
beautiful skin for the
wearer, not the
beholder.
©Unity Marketing, 2016 13
Luxury
of
Discovery
Thrill of discovery invites customers to spread the word –
Discovery anchors your most powerful marketing tool:
word-of-mouth
©Unity Marketing, 2016
14
Exclusive etailer
Project Gravitas got
started doing the one
essential LBD in 8
different ways for
every body type.
Thrill of discovery
gave women
something to shout
about and share with
friends.
©Unity Marketing, 2016 15
Who knew ground up
rocks could provide
such good coverage
and be so good for
your skin?
It was a
revolutionary idea
that had to be
shared.
©Unity Marketing, 2016 16
Luxury
of
Simplicity
Today, more than ever, the KISS principle -- Keep It Simple
Stupid! – is valued. Embrace the concept of simple elegance.
©Unity Marketing, 2016
17
Everlane presents a
new style of luxury at
very un-luxury prices
Online-only Everlane
sophisticated, basic
styles with high-end
fabrication priced way
below retail
Brand story telling
explains how Everlane
can price so low
©Unity Marketing, 2016 18
Glossier doesn’t call
its three-phased
approach to beauty
‘luxury,’ but it asks
its customers to tell
what luxury is for
them.
©Unity Marketing, 2016 19
Kiehl’s sells simplicity
itself – simple product,
simple ingredients,
simple packaging – and
extraordinary results.
The label spells out
Crème de Corps point of
difference with quality
ingredients. The simple
bottle announces the
luxury is inside the
bottle, not what’s on the
outside. It’s prominent
“since 1851” heritage
says a brand that has
been around that long
must be doing it right.
Copyright Unity Marketing, 2016 20
The label makes this simple elegant promise:
“Continued use for 10 days will provide a
skin texture heretofore unattainable”
21
©Unity Marketing, 2016
Beauty brands need to deliver meaningful luxury to the customer,
which is all about the enhanced, special experiences they offer.
22
©Unity Marketing, 2016
23
©Unity Marketing, 2016
24
©Unity Marketing, 2016
Today’s consumer marketers face an increasingly competitive
environment with many business and marketing challenges.
Unity Marketing leads with research to help businesses gain
insights into their core customers and their best target customers
– the affluent who have discretionary income to spend.
 Affluent Consumer Tracking Study
 Two waves
 Spring Shopper Track
 Fall Product & Services Track
 Consumer Gifting Study
 In-depth investigation into gift choices and shopping
behavior among middle-income to upper-income
consumers.
 Special investigation into how consumers use the internet
for their gift research, planning and buying needs.
 Survey completed April 2015 (n=1,649 consumers HHI
$97,900)
 Art, Framing & Wall Décor Study
 The ‘selfie’ culture has created a new market for frames
and wall décor. In addition, affluent consumers are
collecting more original, one-of-a-kind artwork to display
on their walls.
 An in-depth study is planned in 2016 to investigate the
new art, framing and wall décor market, with a special
section devoted to how consumers use the internet in
their pursuit of new art and frames to display.
 Millennials on the Road to Affluence
 This new study has important implications for every
brand that wants to connect with the next generation of
luxury consumers: the Millennials
To deliver more actionable
insights to marketers about
the best potential
customers in the U.S.
consumer market today –
the affluent top 20%.
 Qualitative expertise
 Focus groups, IDIs
 Expert, influential & channel partner studies
 Quantitative expertise
 Survey design
 Data analysis including statistical data analysis
 Analyzing survey results for key take aways
 Marketing & branding consulting
 How to use research to create more powerful brands
and more compelling marketing
 Speaking experience
 Presentations that deliver the most important
information and insights that the audience can take
away and put into action
We are a boutique
marketing research and
consulting firm.
We lead with research to
advise businesses that need
insights into mind of
affluent consumer with
incomes $100k and above.
 Greater access to new AFFLUENT
consumer SAMPLES
 In-depth data about HIGH-END & LUXURY
customers
 Understanding of BRAND USAGE &
AWARENESS
 Key COMPETITOR BRAND usage &
awareness
 Purchase & usage TRACKING STUDIES
 CUSTOMER SURVEYS and studies to
identify new opportunities
Unity Marketing can
provide more data about
the affluent consumers,
combining both qualitative
and quantitative research
strategies.
 UNDERSTAND your best prospective CUSTOMERS’ needs
and desires
 Get the COMPETITIVE EDGE
 Develop more effective MARKETING STRATEGIES
 RESEARCH your market
 SHARE customer KNOWLEGDE & INSIGHTS
 Evaluate NEW PRODUCTS
 Find best CHANNELS OF DISTRIBUTION
 Track TRENDS in the market
Unity Marketing can help you
use the research data you
have on hand to greater effect
to drive growth for your
business.
We consult with companies of
all sizes,from small to mid-
sized to large multi-nationals.
We support retailers,
manufacturers and marketers
in both B2C and B2B
marketing strategies.
 Presentations CUSTOMIZED to specific needs of your
group
 PREPARE your marketing and sales teams for the
competitive landscape of tomorrow
 Gain “All Access” into the mind of today’s most
influential shoppers – the AMERICAN AFFLUENT
 Turn research-based INSIGHTS into ACTIONABLE
STRATEGIES for reaching your most profitable
customers
For over a decade Pam
Danziger has studied the
changing preferences,
shopping habits, attitudes, and
lifestyles of affluent consumers.
Her presentations, speeches,
seminars, webinars &
workshops are customized to
the needs of each audience.
Each presentation is designed
to give the audience news they
can use to understand the mind
of today’s most influential
shoppers – the American
Affluent.
The goal is to deliver research-
based insights that can be
turned into actionable
marketing strategies for each
member of the audience to
reach their most profitable
customers.
Unity's research-based
approach can help
marketers and retailers find
new opportunities for
growth in their businesses.
Email Pam188@ptd.net or
call 717.336.1600 to discuss
your marketing challenges.
Pam Danziger and the Unity Marketing team offer a range of
tools and resources to help marketers and retailers identify
their best customers and channel partners and how to reach
them most effectively with targeted marketing strategies
and tactics.
 Speaker, author, and market researcher Pamela N.
Danziger is internationally recognized for her
expertise on the world's most influential
consumers: the American Affluent. Her new mini-
book, What Do HENRY's Want?, explores the
changing face of America's
consumer marketplace.
 As founder of Unity Marketing in 1992, Pam leads
with research to provide brands with actionable
insights into the minds of their most profitable
customers.
 Leadership in luxury marketing recognized
through Global Luxury Award presented by
Harper’s Bazaar, London May 2007.
 She was named to Luxury Daily's Luxury Women to
Watch in 2013. She is a member of Jim
Blasingame: The Small Business Advocate’s Brain
Trust and a contributing columnist to The Robin
Report.
 Currently Pam is working on a new book : Meet
the HENRYs: Millennials on the Road to Affluence
 Her most recent books are What Do HENRYs Want?
and Shops that POP! 7 Steps to Extraordinary Retail
Success.
 Previous books, Putting the Luxe Back in Luxury:
How New Consumer Values Are Redefining the Way
We Market Luxury; Shopping: Why We Love It, Let
Them Eat Cake: Marketing Luxury to the Masses as
well as the Classes & Why People Buy Things They
Don’t Need
Beauty in new luxury style final

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Beauty in new luxury style final

  • 1. Presented by Pam Danziger, Unity Marketing at LuxePack New York
  • 2. 2 ©Unity Marketing, 2016 Former Harvard University Professor, and now Professor Boston University, Juliet Shor introduced the ‘lipstick effect’ theory in her book entitled The Over Spent American (1999). Her thesis: Consumers will buy higher-priced, more prestigious lipsticks, specifically Chanel, that are used in public, vs. lower-priced, less prestigious brands that are used in privacy of the bathroom. Further in times of economic troubles, consumers will indulge in ‘little’ luxuries, like Chanel lipstick, instead of expensive luxuries, like Chanel suits or handbags. Adding supporting evidence of the ‘lipstick effect,’ Leonard Lauder confirmed that sales of his company’s lipstick rose after 9/11 terrorist attacks in a New York Times article published May 1, 2008.
  • 3. Premise #1  Is luxury purchased primarily for status & prestige? ONLY SOME PEOPLE Premise #2  In times of economic turmoil & uncertainty, do consumers opt for ‘little luxuries’ rather than ‘big luxuries’? YES! 3 ©Unity Marketing, 2016
  • 6.  Same food served in different ways creates vastly different customer experiences and vastly different results.  Creating heighten expectations of a fine- dining experience creates the impression that people got fine-dining quality food. They rated the food very high.  The exact same food served without those fine-dining expectations resulted in the very same food getting a much lower rating. Dr. Brian Wansink is the John Dyson Professor of Consumer Behavior at Cornell University, where he directs the Cornell Food and Brand Lab. He studies how people’s perceptions about food impact their behavior around food. 6 ©Unity Marketing, 2016
  • 9. Old Style New Style Luxury Has a Brand New Style High negatives • Conspicuous consumption • Indulgence • Exclusivity • Elitism • Extravagance • Wealthy 1% Luxury for the Rest of Us • Practical • Functional • Inclusive • More affordable • Democratic ©Unity Marketing, 2016 9
  • 10. 10 “Luxury is just a marketers’ term that means something is overpriced and too expensive.” Calling a brand ‘luxury’ doesn’t necessarily make it so Use the ‘L-Word’ with extreme caution! ©Unity Marketing, 2016
  • 11. Luxury for Me Luxury isn’t about you, and what you think, but about me and who I am ©Unity Marketing, 2016 11
  • 12.  Sport watches (FitBit, Ironman, Shinola Runwell) are the new ‘anti-status’ symbol, that say not about how much watch I can afford (e.g. Rolex) but who I am and what I need my watch for.  Heard in recent focus group with millennials, “The initials after my name are my status symbol.” Consumers are looking for new meaning beyond traditional status symbols. Status symbols reflect elitism, snobbishness, one- upmanship. Anti-status status symbols tell you about me. ©Unity Marketing, 2016 12
  • 13. For Dr. Perricone beauty the luxury is on the inside not on the outside. And the positioning of the ‘no foundation foundation’ is about the luxury of beautiful skin for the wearer, not the beholder. ©Unity Marketing, 2016 13
  • 14. Luxury of Discovery Thrill of discovery invites customers to spread the word – Discovery anchors your most powerful marketing tool: word-of-mouth ©Unity Marketing, 2016 14
  • 15. Exclusive etailer Project Gravitas got started doing the one essential LBD in 8 different ways for every body type. Thrill of discovery gave women something to shout about and share with friends. ©Unity Marketing, 2016 15
  • 16. Who knew ground up rocks could provide such good coverage and be so good for your skin? It was a revolutionary idea that had to be shared. ©Unity Marketing, 2016 16
  • 17. Luxury of Simplicity Today, more than ever, the KISS principle -- Keep It Simple Stupid! – is valued. Embrace the concept of simple elegance. ©Unity Marketing, 2016 17
  • 18. Everlane presents a new style of luxury at very un-luxury prices Online-only Everlane sophisticated, basic styles with high-end fabrication priced way below retail Brand story telling explains how Everlane can price so low ©Unity Marketing, 2016 18
  • 19. Glossier doesn’t call its three-phased approach to beauty ‘luxury,’ but it asks its customers to tell what luxury is for them. ©Unity Marketing, 2016 19
  • 20. Kiehl’s sells simplicity itself – simple product, simple ingredients, simple packaging – and extraordinary results. The label spells out Crème de Corps point of difference with quality ingredients. The simple bottle announces the luxury is inside the bottle, not what’s on the outside. It’s prominent “since 1851” heritage says a brand that has been around that long must be doing it right. Copyright Unity Marketing, 2016 20 The label makes this simple elegant promise: “Continued use for 10 days will provide a skin texture heretofore unattainable”
  • 21. 21 ©Unity Marketing, 2016 Beauty brands need to deliver meaningful luxury to the customer, which is all about the enhanced, special experiences they offer.
  • 25. Today’s consumer marketers face an increasingly competitive environment with many business and marketing challenges. Unity Marketing leads with research to help businesses gain insights into their core customers and their best target customers – the affluent who have discretionary income to spend.
  • 26.  Affluent Consumer Tracking Study  Two waves  Spring Shopper Track  Fall Product & Services Track  Consumer Gifting Study  In-depth investigation into gift choices and shopping behavior among middle-income to upper-income consumers.  Special investigation into how consumers use the internet for their gift research, planning and buying needs.  Survey completed April 2015 (n=1,649 consumers HHI $97,900)  Art, Framing & Wall Décor Study  The ‘selfie’ culture has created a new market for frames and wall décor. In addition, affluent consumers are collecting more original, one-of-a-kind artwork to display on their walls.  An in-depth study is planned in 2016 to investigate the new art, framing and wall décor market, with a special section devoted to how consumers use the internet in their pursuit of new art and frames to display.  Millennials on the Road to Affluence  This new study has important implications for every brand that wants to connect with the next generation of luxury consumers: the Millennials To deliver more actionable insights to marketers about the best potential customers in the U.S. consumer market today – the affluent top 20%.
  • 27.  Qualitative expertise  Focus groups, IDIs  Expert, influential & channel partner studies  Quantitative expertise  Survey design  Data analysis including statistical data analysis  Analyzing survey results for key take aways  Marketing & branding consulting  How to use research to create more powerful brands and more compelling marketing  Speaking experience  Presentations that deliver the most important information and insights that the audience can take away and put into action We are a boutique marketing research and consulting firm. We lead with research to advise businesses that need insights into mind of affluent consumer with incomes $100k and above.
  • 28.  Greater access to new AFFLUENT consumer SAMPLES  In-depth data about HIGH-END & LUXURY customers  Understanding of BRAND USAGE & AWARENESS  Key COMPETITOR BRAND usage & awareness  Purchase & usage TRACKING STUDIES  CUSTOMER SURVEYS and studies to identify new opportunities Unity Marketing can provide more data about the affluent consumers, combining both qualitative and quantitative research strategies.
  • 29.  UNDERSTAND your best prospective CUSTOMERS’ needs and desires  Get the COMPETITIVE EDGE  Develop more effective MARKETING STRATEGIES  RESEARCH your market  SHARE customer KNOWLEGDE & INSIGHTS  Evaluate NEW PRODUCTS  Find best CHANNELS OF DISTRIBUTION  Track TRENDS in the market Unity Marketing can help you use the research data you have on hand to greater effect to drive growth for your business. We consult with companies of all sizes,from small to mid- sized to large multi-nationals. We support retailers, manufacturers and marketers in both B2C and B2B marketing strategies.
  • 30.  Presentations CUSTOMIZED to specific needs of your group  PREPARE your marketing and sales teams for the competitive landscape of tomorrow  Gain “All Access” into the mind of today’s most influential shoppers – the AMERICAN AFFLUENT  Turn research-based INSIGHTS into ACTIONABLE STRATEGIES for reaching your most profitable customers For over a decade Pam Danziger has studied the changing preferences, shopping habits, attitudes, and lifestyles of affluent consumers. Her presentations, speeches, seminars, webinars & workshops are customized to the needs of each audience. Each presentation is designed to give the audience news they can use to understand the mind of today’s most influential shoppers – the American Affluent. The goal is to deliver research- based insights that can be turned into actionable marketing strategies for each member of the audience to reach their most profitable customers.
  • 31. Unity's research-based approach can help marketers and retailers find new opportunities for growth in their businesses. Email Pam188@ptd.net or call 717.336.1600 to discuss your marketing challenges. Pam Danziger and the Unity Marketing team offer a range of tools and resources to help marketers and retailers identify their best customers and channel partners and how to reach them most effectively with targeted marketing strategies and tactics.
  • 32.  Speaker, author, and market researcher Pamela N. Danziger is internationally recognized for her expertise on the world's most influential consumers: the American Affluent. Her new mini- book, What Do HENRY's Want?, explores the changing face of America's consumer marketplace.  As founder of Unity Marketing in 1992, Pam leads with research to provide brands with actionable insights into the minds of their most profitable customers.  Leadership in luxury marketing recognized through Global Luxury Award presented by Harper’s Bazaar, London May 2007.  She was named to Luxury Daily's Luxury Women to Watch in 2013. She is a member of Jim Blasingame: The Small Business Advocate’s Brain Trust and a contributing columnist to The Robin Report.  Currently Pam is working on a new book : Meet the HENRYs: Millennials on the Road to Affluence  Her most recent books are What Do HENRYs Want? and Shops that POP! 7 Steps to Extraordinary Retail Success.  Previous books, Putting the Luxe Back in Luxury: How New Consumer Values Are Redefining the Way We Market Luxury; Shopping: Why We Love It, Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes & Why People Buy Things They Don’t Need