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Luxury Brand Management: A World of Privilege, 2nd Edition

Luxury Brand Management: A World of Privilege, 2nd Edition

Michel Chevalier, Gerald Mazzalovo

ISBN: 978-1-118-17179-0

May 2012

320 pages

Description

The definitive guide to managing a luxury brand, newly revised and updated

What defines a luxury brand? Traditional wisdom suggests that it's one that's selective and exclusive—to such a degree that only one brand can exist within each retail category (automobiles, fragrances, cosmetics, etc.). But this definition is inherently restrictive, failing to take into account the way in which luxury brands today are increasingly identified as such by their placement in stores and how consumers perceive them. This revised and updated edition of Luxury Brand Management, the first comprehensive book on luxury brand management, looks at the world of branding today.

Written by two renowned insiders, the book builds on this new, broader definition of luxury and examines more than 450 internationally known brands from a wide range of industries. Packed with new information covering the financial crisis's impact on luxury brands, and looking towards a new period of growth, the book reconciles management, marketing, and creation with real-life examples and management tools that the authors have successfully used in their professional careers.

  • Includes dedicated chapters focusing on each of the main functions of a luxury brand, including brand creation, the complexity of managing brand identity, the convergence of arts and brands, and much more
  • Addresses the practical functions that can make or break bottom lines and affect brand perception, such as distribution, retailing, logistics, and licensing
  • Focuses on brand life-cycle, brand identity, and licensing issues

A compelling and comprehensive examination of the different dimensions of luxury management in various sectors, this new edition of the classic text on brand management is essential reading for anyone working with or interested in making the most of a luxury brand in the post-recession world.

INTRODUCTION 

CHAPTER 1 - SPECIFICITIES OF THE LUXURY INDUSTRY 

WHAT IS SO DIFFERENT ABOUT THE LUXURY INDUSTRY? 
The meaning of size 
Sales figures are difficult to compare 
How many employees? 
The specific financial characteristics 
A very high break even 
A limited cash need 
A different time frame 
a) The specific case of the fashion cycle 
b) The time necessary for a turn around or a major change 
KEY TO SUCCESS IN LUXURY GOODS 
1. The need for a strong name 
Why are you better off with the name of a person? 
Brand extension and legitimacy 
To make products that can be identified 
a) The primacy of design 
b) The "reason for being" behind each product 
Products must be part of the social and cultural environment 
a) How to keep in line with social trends? 
b) Should one react when out of phase with the trends? 
THE MAJOR OPERATORS 
1. What is the size of the luxury market? 
How the French and the Italian perform? 
It this an oligopoly or an open market? 
The three large corporations 
a) LVMH 
b) Richemont 
c)PPR Gucci 
Can the mono brand company survive? 

CHAPTER 2 - MAJOR LUXURY SECTORS 

A THE READY TO WEAR ACTIVITIES 
1. The specific fashion business and the way to operate 
The different nationalities 
How to develop a brand? 
How to make money? 
2. Key management issues 
a) The creative process 
b) The worldwide presence 
c) Why is it difficult to make money? 
3. The most frequent organization structure 
B. THE PERFUMES AND COSMETICS BUSINESS 
1. The perfumes and cosmetic market 
a) Consumer expectations 
b) Product types 
c) The financial aspect 
2. The major operators 
a) The major brands 
b) The major corporations 
c) Is there room for outsiders? 
3. Key management issues 
a) Sophisticated marketing 
b) Worldwide advertising and promotion 
c) Managing distribution networks 
Organization structures 
C. WINES AND SPIRITS
1. The wines and spirits market 
a) The "brown" products 
b) The "white" products 
c) Champagnes 
d) Other categories
2. The major operators 
a) The major brands 
b) The major corporations 
3. Key management issues 
a) Dealing with mass merchandisers 
b) The need for a worldwide structure 
c) Financing inventories 
d) The need for "pull" marketing 
4. Organization structures 
D. THE WATCH AND JEWELRY MARKET 
1. The market 
a) The jewelry market 
b) The watch market 
2. The major operators 
a) The jewelry brands 
b) The watch brands 
3. KEY MANAGEMENT ISSUES 
a) Retail versus wholesale 
b) Pricing and product lines for jewelry and watches 
c) The risk of the major customer 
4. Organization structures 

CHAPTER 3 - THE POWER OF THE LUXURY BRAND 

A. THE VALUE OF A BRAND 
1. The methodology of Interbrands 
2. The luxury brand in the total universe of brands 
3. The luxury brands in the top 100 
B. THE CHARACTERISTICS OF A BRAND 
1. The brand as contract 
2. Brands and time 
3. Brands and society 
C. THE BRAND AND ITS SIGNS 
1. Brand names 
2. Logos 
a) The functions of the logo 
b) A few forms of logo 
c) Managing logos 
d) Logomania 
3. Other signs of recognition 
D.THE LEGAL ASPECTS AND THE DEFENCE OF A BRAND 
1. Brand protection 
a) brand registration
b) Registration renewal
c) the original regustration
2.Fighting counterfeit activities 
a) The case of knock offs and tables of correspondence 
b) The case of Chinese or Korean counterfeits 
c) The "lenient" countries 

CHAPTER 4 - PRODUCT LYFE CYCLE
 
1. Measuring a brand's strength 
2. The birth of a brand 
Growth of a brand 
a) Sectorial growth 
b) Geographical expansion 
c) New categories of products 
d) Optimization of internal processes 
e) Brand repositioning 
f) Conclusion 
A brand's maturity 
Decline, relaunching and death of a brand 
a) Continuing decline 
b) The death of a brand 
c) Relaunching 
Global brands, local brands 
a) Conditions and advantages of a global strategy 
b) Possibilities for local strategy 
c) The vulnerability of global brands 

CHAPTER 5 - THE LUXURY CLIENT 

A. WHO ARE THE LUXURY CLIENTS? 
1. The rich, the very rich or everybody? 
2. The excursionists 
B. THE NEW CONSUMER 
1. New customer expectations 
2. New customer behaviors 
C. ARE THE CLIENTS FROM DIFFERENT NATIONALITIES SIMILAR? 
1. Differences in consumption patterns between nationalities 
a) The ready to wear and accessories 
b) Perfumes and cosmetics 
c) Wines and spirits 
2. Differences in attitude between nationalities 
3. The RISC study 

CHAPTER 6 - BRAND IDENTITY 

A. A STILL TOO UNFAMILIAR CONCEPT 
B. TOOLS FOR ANALYZING BRAND IDENTITY 
1. The identity prism 
2. Brand ethic and aesthetic 
The semiotic square 
Semiotic mapping 
The narrative scheme 
3. Others analytical models 
C. FROM THE SEMIOLOGIST TO THE MANAGER 
1. Brand identity and consumer identity 
2. Single identity/multiple perceptions 
3. The need to evolve 
D. THE LIMITS OF BRAND IDENTITY
1. Operational implications 
2. The place of the brand identity in company strategies 
3. Limitations of the concept of identity 
4. The responsibilities of the company 

CHAPTER 7 - MANAGING CREATION 
A. NATURE OF THE CREATIVE ACTIVITIES 
B. ORGANIZATION OF THE CREATIVE FUNCTION 
1. Example of some leather goods brands design organizations 
2. Mass market versus luxury brands 
C. MANAGING THE PRODUCT 
1. The Collection Plan 
2. The Collection Calendar 
3. The Product Empowerment Teams 
D. BRAND AESTHETICS 
Relevance of the notion of Brand aesthetics 
Issues better treated with the notion of brand aesthetics 
E.COMMUNICATION ISSUES 
Possible brand aesthetics management tools 
Conclusion on brand aesthetics 
F.BRANDS AND ARTS 
1. From brands to arts 
2. From arts  to brands 
Campbell art versus Warhol brand 
Museum business 

CHAPTER 8  - COMMUNICATION 

A. OBSOLESCENCE OF THE 4 PS 
Table 5  Brand meaning and consumer's behaviour 
B. ADVERTISING 
1) The media 
2) The advertising process 
3) The advertising agencies 
C. PR, EVENTS, WEBSITES AND PROMOTION 
2) Promotion. 
D. THE PLACE OF THE PRODUCT 
1) The product  tangible attributes 
2) The key to the brand's relationship with the consumer 
3) The principal dimension of creation and innovation 
4) Always in context 
E. COMPANY BEHAVIOUR 
1. Uncontrolled behaviours 
2. Controlled decisions 
F. ACTUAL CONSUMERS 
G. WHAT IS GOOD COMMUNICATION? 

CHAPTER 9 - INTERNATIONAL DISTRIBUTION

A. INTERNATIONAL "DISTRIBUTION SYSTEMS" 
B. THE DIFFERENT "DISTRIBUTION SYSTEMS" 
1) Exclusive sales from Paris or Milan 
2 )Subsidiaries 
3)  Local distributors 
4) The joint venture system 
C. PRICE STRUCTURES 
D. THE ADVERTISING BUDGET AND ADVERTISING POLICIES 
E. THE SPECIAL CASE OF THE DUTY FREE OPERATIONS 
1) The duty free system 
2)  The major duty free operators 
3) The negotiation 
F. THE PARALLEL MARKET : REASONS AND CONSEQUENCES 
1) The reason why of the parallel market 
2) How to collect products for the parallel markets? 
3) How to fight the parallel distribution? 

CHAPTER 10 - RETAILING

A. BACKGROUND ANALYSIS 
1) Store location and site selections 
2) In-store behaviour 
3) Retailing indices 
4) Internal Display rules of thumb in supermarkets 
B. RETAILING IN THE LUXURY FIELD 
1) Store location and leasing systems 
a) store location 
b) The different leasing systems and their costs 
2) Budget, planning and control 
a) The sales target 
b) Inventory forecast 
c) Purchasing plan 
d) Margin control 
3) The store information system 
4) Staffing, training and evaluation 
a) Staffing 
b) Training 
5) Retail consumer response management 
C. THE STORE AS A COMMUNICATION TOOL 
1) Landmark projects 
2) The store communicating power 
THE SAME EXERCISE COULD BE CONDUCTED FOR EACH TYPE OF MANIFESTATIONS TO DEFINE WHAT PART OF THE COMMUNICATION PROGRAM IT COULD BEST CONVEY. 
3) Store personnel communication 
4) Internal and external display 
5) Selling on line 
D. THE RETAIL VERSUS THE WHOLESALE MODEL 
1. The so-called "ideal" model 
2. The exceptions to the "ideal" model 
3. The management of retail and wholesale 

CHAPTER 11 - LOGISTICS AND LICENSING 

A. LOGISTICS 292
1. Moving the product 
2)  Outsourcing 
KEEPING DIRECT CONTROL OF THE PRODUCTION 
3) Deciding not to produce directly 
4) Made in China 
B. LICENSING 297
1) The licensing process 
a) The selection of a licensee 
b) The development of this new activity 
c) The control of licensees 
2) Different phases of licensing activities 
a) The phase 1 
b)  The phase 2 
c) The phase 3 
d) The phase 4 

CHAPTER 12 - THE BRAND AUDIT     

1. THE BRAND'S IDENTITY 
First category: the general esthetic. 
Second category: products. 
Third category: merchandising. 
Fourth category: the consumer. 
3. The consistency and coherence transition 
4. Perceptions of identity 
5. The effectiveness transition 
6. The act of purchase 
7. The relevance transition 
a) Observation of points of sale 
b) Financial and management data 
c) Organizational charts 
d) Strategies and brand identity 
e) Manifestations of the brand's identity 
f) Verification of consistency and coherence 
g) Analysis of consumers 
h) Analysis of competitors and interviews with opinion leaders 
i) Verification of effectiveness 
j) Verification of relevance 
k) Recommendations 
B. CRITERIA OF GOOD BRAND MANAGEMENT 
1. The product 
a)Expertise 
b)The product is the principal dimension of creation and innovation 
c)The product is its own best advertising 
d)The product is the key to the brand's relationship with the consumer 
e)The product is the basis of economic results 
2. Identity 
a) A differentiated identity 
b) A perceived identity 
c) A relevant identity 
d) A well-managed identity 
3. Organization and operational processes 
a) Logistics 
b) Organization 
4. Innovation, attentiveness and reactivity to the market 
5. A simple recapitulative diagram