Customer Experience in the Luxury Goods Industry

This report discusses the role of customer experience in the luxury goods industry, with a focus on Cartier Inc. It covers the type of brand and its market, key customers and target market, customer analysis, and organization culture. The report also includes a SWOT analysis and Porter's Five Forces analysis of Cartier Inc.

CUSTOMER EXPERIENCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
Type of brand and it’s market......................................................................................................3
Key customer and it’s target market............................................................................................7
Customer Analysis & Organization culture.................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Customer experience can be defined as the combination of all experience which customer
gets from the business that is based on all communication and thoughts about the organization. it
is crucial for the organization because it builds brand image and affinity in the business market.
while customer’s reviews support business to retain revenue and attracts new customers.
Customer’s loyalty and satisfaction rate influences by giving best experience which they expect
with the brand. To understand role of the customer experience has an example of Cartier
company. It is French luxury conglomerate which is headquartered in Paris, France. It is a
business to business (B2B) type business which offers it’s products and services worldwide. This
report includes role of customer experience and it’s impacts on the business performance.
Task
Type of brand and it’s market
B2B business model
It is E-commerce type business that can occur between two companies. It includes
various activities such as purchasing and procurement, supplier management, inventory
management, channel management, sales activities and payment management. These type
business sell’s it’s product to the second party (intermediate buyer) who retails the products to
the final customer. There is an example to understand business 2 business model such as when
wholesaler receives it’s ordered products from a organization’s website then it retails these final
products to the end customer who comes to buy these product at the wholesale’s outlet
(Camilleri, 2018).
Whereas Cartier International SNC. Is one of the world’s leading luxury goods
organizations. it performs numerous operations i.e. designs, manufactures and supplies jewellery,
watches, fragrance, pens, lighters, silver and crystal. It serves it jewellery into 19 royal houses so
it is highly famous worldwide. Company extend it’s functions all the way to company’s
enterprises Resource Planning System for the B2B commerce. It is famous for its prestige,
quality, uses of rare material, unique designs and timeless creations demonstrate its status. It was
initially B2B type business then later on it offers its product and services to the customer

worldwide through it’s franchises. Organization is designs product own by own as per customer
requirement that demonstrate it follows business 2 consumer model B2C model encompasses
customization of product. it is complex type business because it designs, manufactures and
distributes it’s product to the customer.
Swot analysis Model
It is a strategic planning model that is used to evaluate people or organization’s strengths,
weaknesses, threats and opportunities. The model is applied for the Cartier Inc. to determine it’s
resources, strengths and challenges (Ge and Li, 2019).
Strengths
 It is excellent brand position worldwide that is major strength of the business.
 It has high brand loyalty that causes premium customers prefer to buy this brand
products.
 It has wide product line with high quality and unique design that makes it highly
expensive and more demanding brand in royal houses.
Weaknesses
 It is known predominately as jeweller that is major weakness of the company.
 It offers expensive product that cause unbale to target large customers.
Opportunities
 It has high growth in the luxury watch segment so it can offer this product in other
emerging market.
 Emerging technology is also effective opportunity for the organization because it helps
to improve quality of products effectively.
Threats
 It has high threat from its competitors who focuses on specific products. these
organizations are highly successful in the jewellery industry so it impacts organization’s
growth negatively (Hitesh Bhasin , SWOT analysis of Cartier, 2019).

To analyse Cartier Inc market has an example of Porter’s Five force model that is designed to
analyse market of the company in which it operates.
Figure 1: Swot analysis
Porter’s Five Force Model
It is analysing framework that is used to analyse competition of the market. It is used for
Cartier Inc to evaluate it’s market (Gill, McCarthy and Grimmett, 2019).
Threats of new entrants (Low)
The threat of new entrant force is too low in the jewellery industry because there have
potential existing market players which has captured large market share and have well
differentiate products. in any case, if new firm enters in the market then it must have substantial
capital and resource investment which is not possible for the new player. Therefore, Cartier has
less threat of new entrant in the business market (Ewan Murphy, Cartier Porter Five Forces
Analysis, 2018).
Threats of substitute (High)
Organization has wide range product line but there are quite costly. In that situation,
availability of substitute product and it’s service can make the environment competitive and
highly challenging for the Cartier Inc and other existing rivals. High substitution of the products
can lead change in customer trends and they can use alternative products or services from other
corporations to fulfil their needs. Threat of substitute force is too high because company offers

expensive products to the customer then it can possible other rival companies can offer substitute
products on the lower cost as compared Cartier (Huang, 2019).
Rivalry among existing firms (High)
Cartier faces tough competition within jewellery industry due to potential competitors
Breguet, Rolex, Omega and Longines who offers same products like Cartier. These firms have
captured large market share on it’s product in the business market. So, it can face strong pressure
in term of growth potential. In other word, these firms can limit Cartier’s growth potential
through it’s pricing an targeting strategy.
Bargaining power of supplier (Low)
There has high availability of supplier in which Cartier operates as compared buyers. It
represents that suppliers have very less control on over price which makes supplier’s bargaining
power weaker (Kaul, 2019). It is golden opportunity for the organization because when supplier
does not give raw material into law price along with high quality then become quite easy to
replace non-skilful supplier with skilled one. Thus, organization gets positive impact on it’s
economical scale.
Bargaining power of buyers (Low)
There is number of suppliers are lots of as compared firms which manufactures jewellery
products but Cartier Inc is one of the organizations which designs and manufactures jewellery
products. it causes buyers has limited firms to choose, so hey don not have more control on over
prices. It makes buyer power of bargaining is weaker in the jewellery industry. In addition,
Cartier has wide product portfolio and high product differentiation that means buyer unable to
find other alternative option which again makes buyer’s bargaining force weaker. Thus,
organization gets chance to buy it’s products on it’s cost as result generates high revenue (Ramli
and Kurnia, 2019).

Figure 2: Porter's Five Force Model
Above all forces has evaluated market of Cartier Inc. in the global market.
Key customer and it’s target market
STP Model
STP stands for segmentation, targeting and positioning that is used to target it’s market
and customers. Organization uses STP model to differentiate it’s brand, product and customers
as well.
Market Segmentation
Market segmentation is the process of dividing a large market into small segments and
targets them for the specified product and service. it has four bases such as demographic
segmentation, psychographic segmentation, behavioural segmentation and geographical
segmentation etc. are subdivided audience and customers (Cartier SWOT Analysis, Competitors,
Segmentation, Target Market, Positioning & USP, 2020).
Demographic segmentation
It is one the most popular and commonly used market segmentation. This segment is
further subcategorized audience and customer on the basis of age, gender, income, location,
annual income, education and ethnicity etc. it is quite effective market segmentation strategy that
is used by various company to target it’s market.
Psychographic segmentation

It is another market segmentation strategy that subcategories audience and customer on
the basis of their attitude and personality, lifestyle, interest, priorities, values and psychological
influences. It is difficult segmentation strategy as compared demographics. In other word, this
segmentation strategy focuses on those customers who value quality and their status (Sipilä,
2018).
Behavioural segmentation
This segment focuses on customer’s behaviour for the product or it’s service. it further
classifies customer and audience on the basis of their purchasing behaviour, user status, brand
interaction and spending habits.
Geographic segmentation
It is a simplest type market segmentation strategy whereas customers are categorized on
the basis of geographical boarder such as country, climate, urban and certain location. It is also
quite effective and simple market segmentation strategy.
Cartier Inc uses market segmentation strategy to target it’s specified markets such as geographic,
psychographic and behavioural and demographical market. these markets helps company to
target those customers which has high potential to spending high cost to get high quality
products. Geographic market segmentation supports organization to categories it’s potential
customer based on the region and it has opened different shops in Europe, Middle East, USA,
Japan and rest of the Asia country (Suyanto, 2019). Psychographic segmentation also uses by
organization to focus on those customers who prefer luxury products so that it maintains their
status in high class society. Behavioural segmentation strategy helps company to target those
customers who looks for high quality product and ready to spend more cost to get value of the
product. Thus, company targets loyal customer through the behavioural segmentation strategy.
Demographical segmentation strategy uses by Cartier Inc. to classify those customers who has
high disposable income and belongs to royal family i.e. king and queen. It has proved effective
market segmentation strategy for the Cartier Inc because Currently it become market leading
company and offers it’s jewellery products to the 19 royal houses that makes it highly famous
brand in the world. The target market of the Cartier is high income people who looks for
premium watches and jewellery.

Targeting
Cartier Inc is considered a luxury brand across the world and highly famous for it’s
exclusivity, excellent quality, high level precision and outstanding craftmanship. It makes it’s
target users only Niche and small type market. The reason behind is that organization targets
only those users who have ability to spend more cost to get unique and luxury products and in
return generates high profit margin on products as well as loyalty of them on the brand. Cartier’s
target users spend heavily on the authentic and worldwide famous luxury brand to enhance their
reputation and position in the society. By the user’s characteristic targets niche market and small
market type by the Cartier Inc. The target market of company is men and women who has high
income group.
Positioning
It is another strategy of brand positioning that helps company to influence brand image
across the world. Cartier Inc. provides luxury watches and specialized jewellery products which
makes company one of most demanding luxury brand in the jewellery industry. Due to high
quality product, elegance, legacy, captainship, consumer loyalty and well-differentiation of
products has helped company to gain good global positioning. Organization has established it’s
brand positioning in the Indian market by blending of fine art jewellery with Indian influences
and high brand recalls with kings. Now Cartier planning to get positioning as ‘Hipsters’.
Customer Analysis & Organization culture
Based on the above STP model can analyse that company targets only those customer
who wants luxury, quality and great values of their money which enhance their standard in
society after wearing on their body. Therefore, company targets premium customer and high
disposable income users who have ability to spend high cost on the brand. The vision statement
of Cartier Inc. is to create object of the highest quality and to exceed limits of excellence
effectively. The main goal of the organization is to give value to the user money by offering
value-based products. This statement states that Cartier Inc. wants to become world’s famous
and highly demanding brand as compared other potential brands like Rolex and others which has
captured large market share. It has great culture in the business that helps company to meet
customer objectives. It promotes brain storming in the workplace so that it get creative ideas and

designs that lead uniqueness in it’s products and attracts customer towards products (Wasono
and et.al., 2018). it provides two-way communication in the workplace that helps company to
eliminate conflict issue in staff and promotes creative working environment in the workplace. it
offers performance appraisal to those staff who put high efforts to complete project on time
along with good quality.
In addition, it supports to managers and supervisors keep track effectively on objective
achievement and employee performance as well. it also supports to determine skill development
aspect that staff need and assists managers to develop favourable and needful strategic training
and development program. This program uses to improve skills of individuals in the workplace.
This type supports of Cartier Inc leads satisfaction in staff for the job perspective and motivates
them to give productivity in their working. Thus, company easy to meet each users objectives on
time through staff supports. It focuses on all governmental policies because it operates in
multiple countries whereas each government has own rules and regulation in the context of
trading product and these rules and policies are different to each other as well. To comply with
all government polices keeps flexibility in the polices so that it can comply with all political
policies. Manager of the Cartier Inc mainly focuses on the customer needs and preferences for
the jewellery and watch ornament products. So, marketer always keep deep market research and
takes customer reviews about products and it’s service continuously. They also analyse
competitors’ activities and brand opportunities. By gathering overall information analyses
market opportunity for the company and updates manager about customer’s needs and
expectation, and competitor’s activity. Thus, organization applies various strategies to make
customer happy and builds loyal customer by meeting them from their expected product which
enhance their value and status in society. So, organization culture of Cartier demonstrates that it
stands on it’s statement which it says for the customer’s products and it’s services.
Recommendation
 To improve customer experience of shopping must offer gift with the premium products
i.e. watches, necklace etc. that makes users feel special. It is good strategy for the Cartier
Inc because it attracts first visit customer with the brand and it’s standards. So, company
should use this strategy to improve customer experience of the brand and it’s product.

 It should use 360 feedback strategy that helps to understand customer behaviour as well
as employees. It improves engagement of the customer employees and makes them loyal
for the brand. For example, company can gather feedback from the customer about staff
performance in the workplace and products and can negotiate them to give advice for the
product and it’s service as result it makes them feel valuable for the company (Wu,
2020). As same. It can gather feedback form the staff as well about strategies and
involves them in decision-making process which makes them feel valuable part of
company and retain hem or long time. Thus, company should follow this strategy to
improve effectiveness in the business.
CONCLUSION
The brief study has been summarized types of business and it’s market through the
business to business model and porter’s five force model. Swot analysis model used to evaluate
internal and external environment of the Cartier Inc. STP model also used to analyse targeted
market and key customers of the company so that easy to understood their behaviour for the
brand and it’s product in the report. It can be concluded that organization used various type of
strategies to led sustainability in the business performance and meet each customer objective
which it has targeted. Due to high quality products and uniqueness in designs made organization
world’s demanded leading company in the global market which can be concluded in report.

REFERENCES
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Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,
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https://www.marketing91.com/swot-analysis-of-cartier/>
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Cartier SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP. 2020.
[Online]. Available Through: - <https://www.mbaskool.com/brandguide/lifestyle-and-
retail/2662-cartier.html>