Luxury Brand Marketing Strategy: How to Create the Highest Brand Value

A luxury brand marketing strategy focuses on creating the highest brand value and pricing power by leveraging multiple brand elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients. Luxury brand marketing aims to promote a sense of exclusivity and reward loyal consumers with higher prices, while at the same time increasing the resale value of products over time. How does this work? Let’s take a look at some of the key components to consider when creating your own luxury brand marketing strategy.

Top brands have big plans.

This marketing strategy aims to produce the highest brand value possible by leveraging different elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients. Advertising that emphasises the emotional satisfaction of owning a work of art is key. One way for marketers to achieve this is through creating or inventing myths around the product, like Hermes claiming their Birkin bags are made from crocodile skin when they're made from materials like ostrich and snake. Emphasising exclusivity also helps increase prices and create interest in these luxury items. Luxury brands invest heavily in advertising to maintain high levels of awareness among consumers. Marketers can use social media, blogs, public relations campaigns, and other tactics to get their message out there. Creating a successful campaign depends on how well it aligns with what's called the three Es—the feelings people have about something (such as anger), their expectations about how things should be (such as honesty), and finally whether those feelings meet expectations (such as feeling angry after being lied to). For example, advertisements must show an association between products and the emotions that define them, but not in an exaggerated way. A fragrance advertisement must illustrate a sense of serenity while highlighting specific features that evoke luxury and quality. Once you've defined your goals, you'll know what kind of messaging will most effectively promote your desired outcome. In a recent New York Times interview, consultant Jean Claude Rouzaud said the secret behind all these brands is that none of them tells anyone how to wear anything. And therein lies the challenge. As marketers try to reach new customers in places like China, they need new messages, new techniques, and new ways of looking at luxury fashion marketing strategies. Many changes are happening in the market. Customers no longer want to be told how to dress themselves; instead, they want suggestions and inspiration. They want a luxury brand that speaks to their individuality rather than trying to fit into someone else's mould. Brands might do better if they treated every customer like a king or queen rather than just another number so that each customer feels special when interacting with them.

The best luxury brands have multi-channel strategies.

A luxury brand marketing strategy aims to create the highest brand value and pricing power by leveraging multiple brand elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients. The best luxury brands have multi-channel strategies that weave together all these components in different ways that resonate with various consumer segments. For example, a product may leverage craftsmanship in advertising but focus on heritage for selling directly online. Or it might target deep-pocketed clients by emphasising its exclusivity. It is also important to be mindful of how each message could potentially dilute another. It is critical to stay true to the core messages about heritage, exclusivity, and craftsmanship without overly focusing on prestige or price point. If you don't do this, then your branding could become confused and diluted. Take Tiffany & Co., for instance. To maintain a clear position across channels, Tiffany is careful not to promote its sterling silver products as prestigious. They want people to associate their silver jewellery with Tiffany rather than think it is pricey. And they are confident enough in their iconic status that they can get away with charging higher prices for gold and diamonds because they know it's worth every penny. Brands should follow Tiffany's lead by staying true to the core values of their brand when crafting marketing campaigns across channels. Creating a cohesive experience is crucial to building trust among consumers. That way, if they see an ad while shopping on TV, they'll know who made the item being sold-even if it's being hawked at a discount price.

LVMH – 4 pillars of luxury

One company that has mastered this strategy is LVMH. A luxury brand's marketing strategy begins with its heritage and country of origin, which are embodied in brands like Dom Perignon, Louis Vuitton, and Givenchy. The next step is emphasising craftsmanship and scarcity, as well as prestigious clients who wear these products. The final pillar of luxury branding strategy involves advertising that emphasises the emotional satisfaction people get from owning a work of art. As an example, Chanel’s Coco Mademoiselle ad campaign shows women of different ages enjoying their fragrance and feeling good about themselves. The message is that by wearing this product, you can also feel empowered. 

If there's one thing we know for sure, it's that emotions play a major role in all aspects of our lives - including when it comes to purchasing decisions. So don't overlook them when you're designing your marketing plan. In fact, take them into account right from the start by coming up with a strategy that integrates all four pillars of luxury. LVMH takes advantage of all four pillars—starting with the country of origin and heritage, moving on to emphasising craftsmanship and scarcity while highlighting prestigious clients, and finishing off with advertising that engages the viewer emotionally. The result? brands that have the highest level of brand value and pricing power. If you're ready to get started on planning your own luxury brand marketing strategy, make sure to include all four pillars of luxury! Start with the country of origin and heritage; emphasise craftsmanship and scarcity; focus on being selective when choosing who wears your products (those people will be integral to increasing prestige); and advertise using emotion-focused imagery. It might seem daunting at first, but when it's done right, luxury brands will be able to leverage multiple brand elements to create the highest level of brand value and pricing power. At the end of the day, it's important to remember that even though we live in a world where emotions play a key role in how we make decisions, they should still be taken into consideration at every stage of your marketing plan. You want to design a strategy that incorporates all four pillars of luxury—starting with the country of origin and heritage, then focusing on emphasising craftsmanship and scarcity, before ending off with advertising that engages the viewer emotionally. Remember, the ultimate goal is to create brands that have the highest level of brand value and pricing power.

LVMH advertising campaigns from 1998–2018

Louis Vuitton and Moët Hennessy (LVMH) is a French luxury goods conglomerate that has been operating since 1853. A prestige brand in marketing, LVMH uses multiple branding elements to elevate its work of art status. With its ever-evolving advertising campaigns, it’s clear that LVMH understands the idea of exclusivity, fostering status symbols by associating their product with high-class celebrities in films and music videos like Kanye West and Beyoncé. Their strategy is not just about creating the most luxurious products possible; rather, they use elaborate ad campaigns to promote themselves as an aspirational lifestyle. Advertising from 1998-2018 shows how the brand's identity evolved from classically elegant to rock n' roll chic. The company's slogan we live for luxe reflects this change, making it apparent that LVMH only wants those who are willing to pay top dollar for exceptional quality in its world. Indeed, LVMH operates on such a higher level than other brands due to having a first mover advantage in the industry for over 150 years. In other words, when you buy a designer bag or bottle of champagne from them, you're paying for more than just an object--you're paying for the privilege of being part of something exclusive. While their competitors may have cheaper alternatives, the emotional satisfaction of owning a work of art cannot be matched. For example, Prada and Burberry both focus on products instead of images which leads to lower pricing power. When your audience pays $100 for a Chanel purse, they know that what they are buying is not available at every corner store. They are purchasing a rare item that provides social value while also promising pleasure. And so, regardless of whether the person walks around with this purchase dangling off her arm all day or keeps it hidden away in her closet until she wears it out one night, she will feel good knowing she possesses something others can't get their hands on.

LVMH's recent campaigns

A luxury brand marketing strategy aims to create the highest brand value and pricing power by leveraging multiple brand elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients. One company that does this is LVMH Group which recently celebrated its 100th anniversary with several initiatives across its brands that included jewellery designed by Kristen Stewart for Balenciaga. It also celebrates new seasons with fashion shows, including those organised during fashion week in Paris. Its advertising emphasises the emotional satisfaction of owning a work of art in addition to promoting branding campaigns aimed at individual consumers, especially women like mothers, who are seen as key influencers on family spending decisions. For example, advertising from Fendi features models with their children, emphasising an aspirational lifestyle where parents can be both fashionable and engaged parents. These campaigns have been very successful, helping the company maintain its status as one of the most valuable luxury brands in the world. With revenues of EUR 29 billion in 2016, it has an annual growth rate of 9%. In 2017, it reported sales increases for all divisions except the Asia-Pacific region and recorded growth rates above 10% in several product segments.

LVMH’s push for accessible fashion 

The strategy LVMH, with companies like Louis Vuitton and Christian Dior, has decided on is to incorporate contemporary trends and style icons into their high fashion brands. The advertisements for Sofia Vergara sporting a $3000 handbag are juxtaposed with Karlie Kloss in her expensive gown. LVMH hopes that an ad featuring Karlie Kloss wearing a bag for thousands less will make people feel closer and more connected to her-after all, she’s just like us! To maintain this connection and desire for self-expression, LVMH is also selling accessories at a more affordable price point. 

The image created by these ads is not so much about showing off one's wealth as it is about feeling glamorous every day because one can afford to buy from the luxury brand marketing strategy. In the words of Sarah Quinones (a Creative Director), we want to be seen as ambassadors for a world where fashion has no borders. For those who cannot afford a Birkin bag or even afford clothes from H&M, there are still ways to connect through social media. Instagram allows users to post pictures and share thoughts on clothing they admire or covet, which may lead them eventually towards ownership of the said item. Designer collaborations with celebrities often result in Instagram photos as well. These images further propagate the idea that you don't need to be wealthy to wear nice things. Furthermore, celebrities sharing selfies of themselves wearing designer outfits inspire a sense of wanting-I want what she has.

Why Do Italian Designers Like Armani Work So Well in China?

Most Chinese consumers want to buy high-quality, prestige brands that can convey a sense of status. Armani conveys a very specific feeling (elegant and aristocratic) that is perfect for Chinese consumers. When these customers purchase an Armani product, they are not just buying an Italian-made item; they are investing in an entire European lifestyle. This culture is also evident in their advertisements, which show a glamorous lifestyle and give hints about the brand's design philosophy. For example, most of the images have prominent hand gestures and expensive accessories that communicate exclusivity and wealth. The company does this to lure in more affluent buyers with deep pockets who can afford luxury goods. It's no surprise that China has emerged as one of the largest markets for Armani in recent years. The country has many residents who aspire to lead a luxurious life like those depicted in the ads, so it's easy to see why this strategy is so successful. One way that Armani communicates its message effectively through social media is by emphasising how many celebrities wear its clothing or use its cosmetics. Consumers believe that if famous people endorse the brand, then it must be worth purchasing. On Facebook, we find pictures of stars wearing various products from Armani’s signature line: Emporio Armani Underwear. The caption says: Emporio Armani designers offer you underwear in pure cashmere. Celebrities also include photos of themselves using products, such as a new mascara launched by Giorgio Armani Beauty on Instagram and Twitter. Another popular marketing technique is showing celebrity moments captured at exclusive events around the world, such as red carpet appearances at prestigious award shows. These posts help create a sense of longing among fans who don't have access to these types of events. In short, this marketing strategy works because it appeals to both the aspirational desires and materialistic needs of consumers looking for ways to improve their quality of life and increase their social standing within society.

What is the most important factor in advertising?

Creating high brand value is accomplished by a multitude of brand elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients. A luxury brand should emphasise the emotional satisfaction that comes with owning an item. Advertising campaigns should be simple, focusing on one or two key benefits to avoid overwhelming consumers. High-quality products come at a higher price point, but brands must find a balance between affordability and perceived worth. If a product's price is too low, it will be seen as cheap or low quality; if it's too high, it will seem out of reach for most people. Brands have to consider different channels when advertising their products. Some are more direct than others—TV, magazines, billboards—and some are more indirect—word of mouth or celebrity endorsements. Brands also need to consider how they want their customers to feel after they buy the product. They may decide they want customers to feel happy and satisfied with their purchase; sad because they can't afford it; enlightened about new features through research; or pensive about what else is available. Emotions are important to know when considering advertising strategies. For example, being heartbroken might lead a person to binge eat ice cream while watching reality TV rather than take an expensive trip abroad, which could lead them to regret spending money instead of enjoying themselves. Consider this when choosing your audience and developing your marketing strategy so you don't alienate potential buyers!

Key Takeaways

There are five key factors to a luxury brand marketing strategy that will create the highest brand value and pricing power. They are heritage, country of origin, craftsmanship, scarcity, and prestigious clients. To successfully develop a successful marketing strategy for your brand, you must be able to show why you have all of these attributes. Finally, remember that many high-end brands fail because they fail at showcasing all of their features on their websites or social media accounts. Make sure that all pertinent information is easily available to consumers. If a customer cannot find the product or service they want, then chances are good that you will lose them as a customer. It’s important to take note of this because it’s not just about increasing sales but also retaining customers.