8 P's of Luxury Brand Marketing: A Holistic Framework

Luxury brands employ various strategies to maintain their exclusivity and appeal to high-end consumers. These include offering annual sales through online retailers or luxury department stores like Harvey Nichols and Saks Fifth Avenue, which provide slightly lower prices. Another approach is creating a secondary line with relatively lower price points, such as Giorgio Armani's Armani Exchange or Prada's Miu Miu. The key to successful luxury brand marketing lies in balancing product excellence with experiential marketing, generating ongoing relevance through persona and PR efforts, and maintaining exclusivity through paucity and placement factors.

How does Alessi implement Integrated Marketing Communications (IMC) to help
promote the brand and attain market share?
About the company
Alessi is an Italian company that manufactures the designer tableware and kitchenware
globally. Giovanni Alessi started this company in 1921 as a workshop that made the hand
crafted items only (Hill, 2012, pg.195). Then in 1950, the management of the company was
taken up by Carlo Alessi and he started doing this work with the help of freelancers who
designed the work and the items for this company. The aspect of taking the services of
freelancer designers to make the products of this company became one of the pivotal aspects
of the operations of this company and this thing also differentiated this company from the
other companies in market (Pasca, 2014). Thus, the philosophy of Alessi’s organization is
based on the traditional craftsmanship and their designs. In the present world too, the
company has collaboration with almost 200 external designers and architects who
continuously supply their ideas and this is known as an “open innovation” strategy (Hill,
2012, pg.195). The core business of the company lies on the manufacturing of stainless steel.
Mission
‘Alessi’s mission is now one of translating its quest for the most advanced cultural, aesthetic,
design and functional quality into mass production. Designer products are the result of the
constant reconciliation of art and industry, of the “Immensity of Creative Potential” and the
needs of the market. The company is committed to a design approach in which the most
advanced expression of international creativity is always balanced against the desires of the
general public. Alessi has been described as a “Dream Factory”, which uses its products to
make people’s dreams come true, providing them with the Art and Poetry that they seek
(Source: http://www.alessi.com/en/company/about-us).

Design at Alessi
The design of the products of the company is at the heart of its business. With the network of
talented designers and architects, the company develops sophisticated process for finding,
commissioning and developing the new designs for manufacturing the designer kitchen and
tableware. The business model of the company focuses on the innovation (Lees-Maffei &
Fallan, 2013). The entire design mechanism and the production of the products of this
company is driven by innovation only. The designers of the company inspire it to innovate
and thus it has pioneered the use of new materials in the kitchen and tableware. Particularly,
the company makes extensive use of the plastics that are in high-quality contexts.
Market of Alessi
The market in which Alessi operates requires novelty for selling its products. This is because,
the market of consumers for this company is very demanding. The volumes of production is
low but the demand is more in terms of manufacturing of the good quality products
(Colombi, 2015). Thus, the company has the pressure of find the suppliers who can make the
goods and the components of the products as per the specifications and needs of the
consumers in the market. Currently, there are almost 2000 items in the catalogue of the
company that it sells and many of them are manufactures ate the Italian factory of the
company (Colombi, 2015). There are different ranges for the product of this company:
 One is the Officina Alessi collection that comprises of the products that are
sophisticated, experimental and innovative. Also, these products are small-scale and
their production is also limited.
 The second is the ALESSI collection in which the mass produced goods are included
and the premium materials are used with high quality manufacturing and the use of
sophisticated design.

 The third is the A di Alessi collection in which the products are manufactured in huge
volume and the prices for them are comparatively less.
Integrated Marketing Communications
The organizations have to promote the brands and the products so that the end-users buy the
products and they also outshine the competitors in the market. This helps the company in
surviving in the long run. With the promotion of products and brands, the awareness among
the people regarding the products increases ad thus, eventually the sales of the products gets
increased too. This makes the company earn higher revenue for itself (Morrison, 2016).
Brand communication is the first and foremost thing for the integrated marketing
communications, hence it is important to understand it. The process of brand communication
involves all the initiatives that the companies take for making their products and services
popular among the end-users. In this, the companies identify that who are the people to
whom the product suits the best and who can purchase it. Thus, these people are targeted by
the company by means of advertising, public relation, sales promotion, personal selling,
direct marketing, social media etc. (Belch, 2016).
Now, integrated marketing communication refers to integration of all the methods of brand
promotion that helps in promoting a particular product or service among the target customers
(Percy, 2014). There are many aspects of the marketing communication which together work
to increase the sales of the company and to maximize its cost effectiveness.
The components of the integrated marketing communication are as follows (Shimp &
Andrews, 2012):

1. Foundation: In this the companies analyze the products that it intends to sell and they
also analyze the target market for its products. The needs, expectations and the
attitudes of the people in the market are known by the marketers in IMC so that they
can sell the products accordingly.
2. The corporate culture: While designing the products and selling them, the marketers
need to keep in mind the vision of the company. The method of promotion must take
care of that vision. For example, of the vision of the company is to promote a world
which is clean and green, then they need to promote those products that are eco-
friendly and biodegradable.
3. Brand focus: The corporate identity of the brand is represented in brand focus.
4. Consumer Experience: It is important to know for the marketers that what the
consumers feel about the product. Mostly, the product which has a good packaging
and is attractive is picked more frequently than the others. Also, the product must
exceed the expectations of the consumers and they should meet their needs.
5. Communication tools: This is a main part of the IMC. Here the brand is promoted
with the help of various tools like the personal relations, advertising etc. But,
marketers need to choose that which tool is able to communicate the most part of the
products and which tool will deliver the maximum content about the product.
6. Promotional tools: Whichever way of promotion is used by the marketers, they just
have to take care of the fact that companies must strengthen their relation with the
customers and the external clients.
7. Integration tools: The track of the feedbacks of customers is kept by the organizations.
The companies use special software that helps in measuring the effectiveness of the
various integrated marketing communications.

PR in Alessi
Theories of PR
The four models in Grunig’s and Hunt’s theories have developed into models by which the
practices of today are analyzed and judged by. Here is a review of the four models.
Public Relations Theories / Press Agentry Model.
During the 19th century press agents labored to create news to influence public opinion. A
press agent does not conduct surveys or research they just want to manipulate behavior.
Accuracy and credibility are not priorities with this kind of model.
This is a one way communication from the press agents to their publics that uses persuasion
and manipulation to influence behavior of an audience. This method is usually employed by
practitioners for one way communications to sell products or services without any
quantitative analysis of the results.
Public Relations Theories / Public Information Model.
This model is still a one way communications method but accuracy of the message become
more vital. This model does not consider information about the audience to be essential in
constructing messages and releases. In the early 20th century there was move among some
enlightened public relations practitioners towards more truthful and accurate messages.

The move away from half truths and outright falsehoods was the precursor to increasing
ethical practices. Although this model still does not have any methods for quantitative
analysis of the results practitioners are slightly more inclined to gather feedback from their
audiences. This model is used mostly by government agencies, military units, and law
enforcement agencies.
Public Relations Theories / Two Way Asymmetric Model.
Feedback is more important to practitioner but the aim is not to improve organizational
practices but rather to influence attitudes of their audiences. After World War I there was an
increase in consumer products which also dictated the need for marketing that was targeted
specifically for a definite demographic or audience.
Although this models advocates two way communication practitioners are hardly thinking
about balanced communication. The goal of this model is to get into the psychology of their
audience so that messages can be tailored to get the most effective reaction. This is the
method most used by advertisers all round the world.
Two Way Symmetric Model. This is probably the most ethical method of all the models. The
aim of this model is dialogue not monologue. The feedback that the organization gathers is
used to change organizational practices.
Benefits of PR to the company

1. Credibility
Let’s face it– consumers today are more cautious when spending. That’s why having
credibility is so essential to a successful business. Because PR and advertising are very
different things, consumers are likely to give credibility to your business when they see it
mentioned in the media (uncompensated!) compared to when they see your ads or billboards.
Studies show that PR has 7 times more credibility among consumers than advertising!
2. Target Market
With PR, it’s much easier to aim and fire on that target market you are hoping to reach.
Media sources can place the information that is right up the consumers alley and give them
the required information they need. If you are an accountant hoping to generate some new
clientele, placing an ad in a teen magazine likely won’t help you. But a well written article
smack dab in the middle of the finance section will probably lead you right where you want
to be. These target markets are especially vital in businesses that only appeal to a small target
market.
3. Cost
While it’s true that PR can be costly if you hire the wrong firm, considering the cost of other
promotional advertising, it is on the cheap end of the scale. When you step back and look at

the cost of PR considering the possible leads when reaching the right market, you’ll find that
the cost is very beneficial.
4. Lead Generation
The media placement that you receive from PR is long lasting. You’ll likely have an initial
flood of leads, and then as time wheres on, you’ll notice that there is still the possibility of
lead generation from just one good media mention. As people and businesses stumble on the
PR, it will still be effective at generating leads (thus leading back to our #3 point: cost).
5. Image
PR isn’t just promoting an item or a special. PR takes your entire business and puts it in the
lights. This helps create an image of your company and creates the possibility of a more well
rounded patronage. Effective PR leaves your company with a positive image, which is always
helpful in the future.
Luxury branding
Packaged as the 8 P’s of luxury brand marketing, this article attempts to bring together the
elements and interplay between the principles that are employed in the luxury brand
marketing mix.

However, one needs to acknowledge that the degree of significance of these elements may
vary from brand-to-brand and market-to-market.
1. Performance
Performance refers to the delivery of superior experience of a luxury brand at two levels –
first, at a product level and, second, at an experiential level.
At a product level, fundamentally it must satisfy the functional and utilitarian characteristic as
well as deliver on its practical physical attributes – a recipe of quality or design excellence
ingredients such as craftsmanship, precision, materials, high quality, unique design,
extraordinary product capabilities, technology and innovation.
A luxury brand must perform at an experiential level as well, i.e. the emotional value of the
brand the consumers buy into – beyond what the product is to what it represents.
For example, Rolex stands of symbol of heroic achievement and Tiffany & Co. is a symbol of
love and beauty.
2. Pedigree
Many luxury brands have a rich pedigree and extraordinary history that turn into an
inseparable part of the brand’s mystique.

This mystique is generally built around the exceptional legendary founder character of the
past, making up an integral part of the brand story and brand personality.
So, when consumers buy, say, a Cartier or a Chanel product, it is not only because of the
product performance factor, but subconsciously they are also influenced by the brand’s rich
lineage, heritage and the years of mastery.
3. Paucity
Over-revelation and distribution of luxury brands can cause dilution of luxury character.
Hence, many brands try to maintain the perception that the goods are scarce.
A case in point is Burberry, which diluted its brand image in Britain in the early 2000s by
over-licensing its brand, thus reducing its image as a brand whose products were consumed
only by the elite.
Gucci is now largely sold in directly-owned stores following a nearly crippling attempt to
widely license its brand in the 1970s and ’80s.
Broadly, there is natural paucity – the actual scarcity – as well as the technology-led paucity
and the tactical-driven paucity.

Natural paucity is triggered by scarce ingredients such as platinum, diamonds or those goods
that require exceptional human expertise such as handcrafted quality that constraints the mass
production.
Tactical-driven paucity is more promotional in nature such as the limited editions or the
special series to generate artificial desire and demand.
Another deviation within this is the customization of luxury goods. For example, Garson
USA custom made a diamond-encrusted Mercedes SL600 for Prince Al-Waleed bin Talal of
Saudi Arabia in 2007.
4. Persona
The persona of a luxury brand is largely a result of, first, its distinctive projection plus
coherence of its applications across consumer touch points and, second, the brand
communication through its advertising.
The visual brand identity captures the brand’s personality, mystique and emotional values in
a nutshell.

The distinct and consistent orchestration of the identity is central to establishing the visibility,
familiarity and common identifiable brand imagery.
The visual brand orchestration can manifest by way of its coherent application of its identity,
brand colors, other design elements such as icons, uniquely identifiable design, branded
environment and even the tone of voice.
While the luxury brand’s visual identity is a fairly stable factor, luxury brand advertising is a
more dynamic and versatile marketing vehicle.
While the pedigree of the brand has its role, keeping up the contemporary appeal and the
newness factor is crucial for enduring brand relevance.
Therefore, luxury advertising not only needs to generate the desire for the seasonal collection,
but at the same time it must also enhance the brand’s cool-quotient, thereby making it
continuously desirable and aspirational.
At an overall level, luxury advertising messages can be observed:
• As more emotional and sensual to distance it from mass-premium brands

• Create a world and an aura that is truly exceptional to their brand signature
• Generate major differentiation in its production and execution
One of the relatively new trends within luxury brand communication is the use of the long-
form-commercials or the short-film-videos to generate interest with the online audience.
It is clearly a pursuit where luxury brands are looking to bridge the gap between the familiar
world of print and the fast-evolving world of online.
It has also proved impactful as in a matter of few minutes, the viewer can have a clear
understanding of the brand image or the story that the brand is trying to convey or simply
promotion of the new collection.
Apart from these, with the intent of enhancing the “emotional connections” with discerning
mindsets, luxury brands have been exploring the digital space by engaging them in their
activation programs.
The objective is to generate a genuine affinity with the brand that transcends beyond the
product to an extent where the consumers feel that they have found a soul mate.

For example, with the objective of strengthening the brand’s association to love and romance,
Tiffany launched whatmakeslovetrue.com and an iPhone app as a guide to those who want to
take their romantic relationship forward.
The Web site also showcases select true love stories of real people to give that personal
touch.
Some luxury brands have also used social media.
The objective may not necessarily be engaging the audience in their storytelling, but it has
been done largely to generate the desire or the lust for the brand or the product.
It is also an effective tool to keep up the contemporary appeal and the newness factor by
having a continuous dialogue.
5. Public figures
Public figures or celebrities have traditionally been employed as one of the marketing mix in
luxury brand advertising and they still continue to garner attention, credibility and impact.
Public figures can span from film stars to music personalities, from sports personalities to
royal families and even the designer themselves.

But because celebrity endorsements are no longer exclusive to the luxury space and
extensively used and abused across mass categories, they take a different meaning when it
comes to luxury brand endorsement.
Not only does the public figure’s associated values and personality have to resonate with that
of the luxury brand’s aura, but there is a distinct difference in the way celebrity role is
crafted, executed and strategically used.
Beyond traditional advertising – largely print in selected media – less in-your-face
advertising tools are employed such as accessorizing or dressing celebrities for their walk
down the red carpet, product placements within movies and television programs and invites
to special events.
This strategy attempts to remove the appearance of “selling” while still promoting the
product by making it seem as a part of the celebrity’s lives, thereby positively affecting the
consumer’s attitudes, brand value and purchase intention.
For example, Chopard has been official partner of the Cannes Film Festival for the last 14
years, showcasing and premiering its collection by accessorizing celebrities on the red carpet.

Long-form-commercials or short-films have also used the celebrity-factor.
Chanel, for instance, recently created a three-minute film with actress Keira Knightley who
replaced Kate Moss in its ads for its Coco Mademoiselle fragrance.
Other previous faces of Chanel have included French star Catherine Deneuve and Nicole
Kidman, who represented Chanel No. 5.
Similarly, as a part of its “core values” campaign, Louis Vuitton used its Web site as the
online medium to showcase its celebrity endorser’s journey and his or her story to bring to
life how the brand has been promoting the art of travel and inspiring legendary journeys.
6. Placement
The retail branded environment in luxury branding is all about heightening the consumer’s
brand experience and amplifying the brand aura.
Hence, the branded environment and the movement of truth is where it must “live” the brand
by orchestrating immaculate detailing that engages all senses of the discerning audience.

Starting from the choice of store location, the chain of touch points that consumers interact
with, the salesperson’s presentation and the impact of each touch point is critical in creating a
unique indulging experience.
That said, today’s evolving luxury consumers are increasingly looking beyond the typical
sophisticated, over-the top, cosmetically elegant presentation or even the exclusive invites,
privileged previews.
With the increasing democratization of luxury brands and the rapid emergence of masstige
brands, luxury consumers have become more discriminating and demanding.
These consumers seek a more knowledgeable and professional assistance and a trusted and
reliable collaboration helping them to manage their stature and lifestyle.
Not only has this led to the new business offerings, but luxury brands are also increasingly
investing in training and empowering their sales staff.
Another important point to note within the placement factor is that it is not limited to the
physical environment where the brand retails, but it extends to all of the environments or
consumer touch points with which that brand associates itself.

This spans from the extremely selective niche media where it advertises to the sports, events,
art and conversations with which it identifies.
For example, Rolex associates itself with more than 150 events in golf, sailing, tennis, motor-
sport, arts and equestrian tournaments rather than with sports such as football or cricket that
have more of a mass following.
7. Public relations
Public relations in luxury branding plays an enormous role in image proliferation of the
brand, thereby subtly influencing public opinion.
PR is also employed to convey other supporting messages and attributes of the brand that
cannot be explicitly captured in advertising, but are by no means are less important to create
brand’s personality, mystique and emotional values – whether it is via the pedigree factor or
via public-figure any of the previous seven P’s mentioned.
It is also a sophisticated branding machine for maintaining ongoing relevance and dialogue
with the luxury consumer, especially in fashion, technology and seasonal trends-driven
categories.

At a tactical level, PR is used to generate buzz and convey brand news, point of views of
inspirers and influencers including celebrity talk or the designer speak and a crucial support
for brand activation such as the fashion weeks, sport events and themed previews.
8. Pricing
Pricing plays a quite a big role in the way that consumers perceive luxury brands.
Consciously or subconsciously, consumers tend to generate a mental luxury stature or image
with the price range that the brand operates.
Therefore, it is important for luxury brands to price themselves right as setting the price lower
than consumer expectation and willingness to pay can potentially harm the brand value,
whereas the reverse can potentially not, given enough justification for consumers to go ahead
and buy.
The pricing strategy in luxury brands gained spotlight recently not only because of the
challenging economic environment, but because of more informed-and-exposed consumers
who are more discriminating and demanding and for whom premium pricing without
substance does not imply luxury.

A recent research by Unity Marketing suggests that affluent shoppers will not spend ten times
more for something only three times better.
Luxury brands must, therefore, justify their price through the interplay of the seven P’s
mentioned above, thereby keep up and maintain a higher perceived value.
Sales promotions also tend to be handled differently by luxury marketers.
While few have resorted to sales and discounts, most others play it by adding more value to
the purchase such as gift with purchase, gift certificates or rebates for the next purchase,
multiple item discounts, online or email exclusives, more loyalty points and no shipping and
handling charges by online retailers.
Luxury brands also use as a channel luxury retailers such as Harvey Nichols and Saks Fifth
Avenue that offer annual sales via slightly lower prices.
Another strategy employed by luxury brands is creating an extension into a secondary line
with relatively lower price points such as Giorgio Armani’s Armani Exchange, Roberto
Cavalli’s Just Cavalli, Prada’s Miu Miu and Alexander McQueen’s McQ lines.
Key takeaways

In conclusion, the key to luxury brand marketing boils down to the following three points:
• Product excellence by itself in not enough. The luxury brand must perform at an
experiential level as well.
As luxury consumers evolve, not only does product quality act as a point of differentiation,
but also as substance to justify a premium value and pricing.
• While pedigree factor is important to celebrate the years of mastery or lineage, it is crucial
to generate ongoing relevance and dynamism through the persona, PR and public-figure
factor.
• Luxury brands must continue to maintain a certain degree of exclusivity and stature with the
paucity factor and the placement factor – from the retail experience to the touch points with
which it associates itself.
THE 8 P’s of luxury brand marketing can provide a holistic framework to luxury marketers.
The 8 P’s may not be a universal methodology, but they present a strong analytical toolbox to
audit and leverage the brand potential.

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