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Welcome!

Luxury Anti-Laws of Marketing

Dr. Satyendra Singh

Professor, Marketing and International Business

University of Winnipeg, CANADA

s.singh@uwinnipeg.ca

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Luxury anti-laws of marketing

1 No positioning – not comparative, superlative, Being unique counts

2 With flaw – handcrafted, not machined, art, symbolic, expressive, shoes, bags, watches, natural, emotional

3 No market research – BMW driven by long-term vision

4 Non-enthusiast out – high price, freedom, territorial advantage

5 No need to meet demand – no vol, limited edition, ↑ dream value, internationalize, luxury strategy

6 Make it difficult to buy – create obstacle, ↑ price, ↑ waiting, dream equation

7 Separate clients / non-clients – separate floor, airline, trunk shows, invitation only

8 Role of ad is to not see, but create dream – BMW/18, MB/60

9 Communicate to non-target – awareness/visibility only, max price level. If unrecognizable, brand lost value

10 Presumed price > actual price – Aura of luxury. If ad, max price shown. Dream

11 Luxury sets price, not vice-versa – people buy, we do not sell. Offer marketing (not demand)

12 Increase price periodically – it creates demand. ↑ price then ↑ ↑ higher. Luxury strategy. Not ordinary pricing

13 Keep stars/endorser out of ad – Kennedy/pen changed world, exceptional moment (strategic negotiation)

14 Sell marginally on the internet – should have a reason eg premium/fashion strategy

15 No cost reduction – no factory relocation, perception of quality, country of origin

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Source: Kapferer and Bastien 2012. Luxury Strategy