Delivering a Luxury Brand Experience

7/30/2019 Delivering a Luxury Brand Experience

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Delivering a luxury brandexperience

by Lulu RaghavanDecember 2012


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a a is the worlds

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o WPP, one o the largest global

communications services companies.

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1Landor ssociates

l Raaa is country director o the

umbai oce o Landor ssociates, which

she helped establish in 7.

his article was rst published in slightlydierent orm in The Luxury Market in India:

Maharajas to Masses, edited by lyn twal

and Soumya Jain (algrave acmillan,

1); reprinted with permission.

the product itsel can be purchased more cheaply

in Hong Kong, Singapore, or ubai. o increase

their chances o success in ndia, luxury brands

need to think o the brand experience as the

customer journeythe interaction betweencustomer and brand throughout the relationship,

rom awareness and consideration to purchase and

loyalty. aking such a holistic view allows a deeper,

more nuanced understanding o luxury customers

needs and enables brands to create a dierentiated

and relevant brand experience.

ak all

ndia is truly an idiosyncratic market or a vast array

o social, economical, cultural, and political reasons.

ven such global giants as oca-ola and GM did

not meet with success when they entered this

market, due largely to a lack o understanding about

ndian emotions, habits, and liestyles. Kelloggsinitially had great diculty selling its products in

ndia because the cereal company ailed to grasp

one key consumer insight: ndians like to start the

day with a hot meal.

Ia l m m al, m , a mma a . G a a mlaal ma l

aa a ml lm l Ia mak. l al lal a ma ll Ia m.

n the ndian context, the delivery and experience

o a luxury brand are much more critical than the

product alone and the badge value o owning it.

ndian consumers might notice the Louis Vuitton

logo and be enticed by an impressive liestyle ad

in a glossy magazine, but its the Louis Vuitton

experience across all interactions that will shape

their perceptions o the brand. ositive perception

is key to driving purchase and loyalty, and thereore

long-term business success.

iven the high import duties on luxury goods in ndia,

its all the more essential or companies to deliver

an outstanding brand experience: n most cases,

Delivering a luxurybrand experience


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Lulu aghavan

n addition, sta must not be arrogant about which

customers they choose to serve when someone

walks through the door. omen dressed in sareeswho dont speak nglish well may have pots o

money to spend, but i treated improperly by sales

sta may turn away rom the brand orever. ndians

love to share their experiences, and a dissatised

consumer can quickly erode the reputation o

a brand via his or her circle o inuence.

hird, luxury brands in ndia typically maniest a lack

o attention to detail. he gi wrapping or quality

o nishes at a retail store may not meet the highest

standards o these brands. ustomers who are used

to top-notch brand experiences in cities such as

New York and aris are rustrated when they dont

receive the same treatment rom global brands in

ndia. hey may end up eeling they are paying orquality they dont receive.

Ca l

hese challenges, though considerable, can be

overcome through innovative thinking. hile it

may not be possible to perectly manage all

interactions with the brand, ocusing on one or

two key touchpoints o the luxury brand experience

can powerully ignite customer excitement and

create a positive impact. his not only elevates the

brand, but also allows it to take a ew liberties in

other areas with less danger o losing customers.

ritish irways (BA) illustrated this concept when itcreated a unique check-in service at the hhatrapati

Shivaji nternational irport in umbai. usiness

class travellers entering the terminal were immedi-

ately whisked into a specially designated area. er

a streamlined check-in process, they were escorted

hile the lack o high-end retail space is cited

as the biggest challenge or luxury brands, there

are several other considerations that marketersshould take into account.

irst, luxury consumers in ndia are not a homog-

enous, easily characterized group. eyond the

traditional rich, there is a new generation o

afuent consumers with dierent attitudes and

mindsets towards wealth, liestyle, and luxury

brands. hey may be newly minted CEOs and

other senior corporate proessionals; entrepreneurs

in businesses such as IT and telecommunications;

returning prodigal children (afuent ndians who

have lived abroad and continue to avor estern

brands); ranchisees and retailers; or politicians,

bureaucrats, and media personalities. ach group

may view luxury goods dierently, rom valuingthem or their unctionality to treating them as

a reward or an indulgence. rientation towards

badge value varies as well. Luxury brands need

to study the unmet needs and wants o these

customer types to determine how best to dierenti-

ate the brand experience.

Second, sales sta in retail stores have the power

to make or break the shopping experience. any

consumers, especially the new generation, will be

unamiliar with the luxury brand; they depend on

salespeople to provide inormation and acilitate

the buying process. Lack o knowledge about the

brand or product creates a negative impression.

raditional wealthy and globally traveled consumers,

on the other hand, expect the highest level o

service rom sophisticated and well-groomed sta.

ompanies need to invest heavily in training sales

sta to handle luxury buyers o all stripes.

The ability to create and deliverinnovative brand experienceshas become an important core

capability or luxury goods.


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3Landor ssociates

igure 1 shows all stages o the luxury customers

interaction with the brand, rom awareness (learning

that the brand exists) to explore & consider (thinkingo buying) to purchase (going online or to a store) to

postpurchase (staying loyal). or each stage, generic

touchpoints are listed or luxury brands to consider.

he next level is to plot the needs o dierent

customer types at each stage. n the awareness

stage, or example, the traditional rich customer

wants reassurance o the global brand values within

the ndian context, while a rst-time luxury customer

may be looking to understand and appreciate the

brands credentials.

nce the stated and unstated needs are plotted,

brands can then determine their response. Some

marketers also like to plot how their competitorsbrands are dealing with these needs. his enables

them to identiy opportunities that competitors are

not ocused on and can thereore be dierentiated

to deliver an outstanding experience (igure ).

through security and immigration straight to the

main lounge. his hassle-ree experience was so

appealing that business customers were willing toorgive other blips such as delayed bags (or which

BA was amous in ndia). inding a memorable and

relevant way to manage check-in succeeded in

dierentiating BA, because no other airline oered

this to its valued clientele.

Cm j

he customer journey ramework has immense

practical value or managing and inuencing

customer perception, allowing a helicopter view

o all touchpoints in the brand experience. he

marketer can then drill deeper into any particular

stage o the journey to better understand customer

needs at that stage and assess how the brandor its competitionis responding to those needs.

ost importantly, it allows the marketer to make

key strategic decisions on choosing where to ampliy

delivery o the experience and make a real dier-

ence to the brand.

Figure 1: Customer journey ramework


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4 Lulu aghavan

Figure 2: Customer journey touchpoints

1. AwAreness 2. expLore & consider 3. MoMent of sALe 4. LoyALty

custoMerneeds

touchpoints Wedia inuence

V

ollywood

Social media

Virals

Youube

Street impression

conic products

ord o mouth

rips outside ndiauerilla marketing

eer inuence

Bm riends

reer product to other

products

Raeviews

logs

edia inuence

V

ollywood

Social media

Virals

Youube

orums

ompany websiterochure/brand book

a Showroom/store

Location

resentation

Sound branding

Service

Salesperson/employees

a amShowroom

Showroom/store

Salesperson/employeesroduct

PaShowroom/store

Salesperson/employees

roduct

rice

inancial service

Keys

anual

Uroduct

er-sales

hone service

arranty

Rfl a laroduct experience

lient contact

eplacement oer

SaSocial media

Social network

ord o mouth

log

orums

otential new customer

coMpetitiveresponse

our response


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ecause it is not realistic to excel at all stages and

all touchpoints, brands must rst understand theentire journey and then choose where to ampliy

the brand experience.

ell look at our high-end brands to see how

they emphasize particular stages o the customer

journey to support their brand strategies. hese

mini cases demonstrate innovative tactics to

generate awareness, maximize chances o purchase

consideration, elevate the purchase experience,

and build loyalty or the brand (igure 3).

Ga aa: D

he iconic rench brand ior has adopted

an unusual approach to generating consumerawareness or itsel in ndia. ts representative

is not an internationally recognized celebrity

or even a ollywood star, but an ndian socialite

with an impressive list o potential ior customers.

Kalyani hawla is both vice president o marketing

and communications at ior ndia and its walking,talking brand ambassador, recruiting customers

with the same ease and lan that she sips her

champagne. She understands the world o

ber-luxury globally and rench brands in particular,

having gathered deep insights on luxury retail in

her homeland rom her association with the ndian

brand avissant.

hawlatypically dressed only in ioris a total

personication o the brand. She has smartly

positioned hersel in the highest circles o society

as the go-to person or the latest tips on ashion,

style, and even entertaining. apping into her

extended social network, hawla has generated

tremendous awareness and aspiration or the brandwith its target clientele and succeeded in building

a community o ior loyalists. She has also become

an accessible part o the ior story in ndia,

increasing the brands relevance and appeal. Her

personal relationships allow her to get rsthand,

Figure 3: Luxury brand customer journey

. . . .

WitnessingMedia influence

TVBollywoodSocial mediaViralsYouTube

Street impressionIconic productsWord of mouthTrips outside IndiaGuerilla marketingPeer influence

Becoming inspiredFriendsPrefer product to otherproducts

ResearchingReviews

BlogsMedia influence

TVBollywoodSocial mediaViralsYouTube

ForumsCompany websiteBrochure/brand book

Arriving and browsingShowroom/storeLocationPresentationSound brandingServiceSalesperson/employees

Learning and experimentingShowroomShowroom/storeSalesperson/employeesProduct

PurchasingShowroom/store

Salesperson/employeesProductPriceFinancial serviceKeysManual

UsingProduct

Aer-salesPhone serviceWarranty

Reflecting and replacingProduct experienceClient contactReplacement offer

SharingSocial mediaSocial networkWord of mouthBlogForumsPotential new customer


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Lulu aghavan

rank comments on ior customer satisaction.

Such constant eedback permits better selection

o products, ne-tuning o the experience, and

improved response to customer needs.

ior also invests heavily in the awareness stage o

the customer journey by doing two things very well:

product placement and PR. he brand scored a real

coup in product placement with the ollywood lm

Aisha. Sonam Kapoor, its lead actress, sported

as many as 60 ior dresses and accessories and

carried her Lady ior purse throughout the movie.

he male lead, bhay eol, wore ior creations

as well. nd ior has been aggressive with its PR

moves, securing 20 magazine covers in 200 alone.

ith such attention to awareness building, you

might expect ior to have a dozen or so stores in

ndia. ctually there are only two, one in umbaiand the other in New elhi. ut the brand is well

prepared to increase its presence in ndia, and its

investment in awareness development will give

it a huge advantage when expanding.

am a a:

udi, the erman car brand, also invests heavily

in creating awareness and pull or its autos throughadvertising, sponsorships, and publicity. ut where

udi has really excelled is in developing an engaging

experience or ndian customersboth ofine,

through the design o its dealerships, and online,

by means o a -D campaign or the launch o its

new 8L model.

he umbai est showroom is a personication

o brand udi. otential buyers eel the brands

sportiness, progressiveness, and style throughout

the experience, not just in the cars themselves.

he spacious showroom is minimalist in design but

luxurious in eel. very detailrom the owers

used in vases to the kind o coee servedhas

been careully managed to cra an udi brandexperience or customers. udi calls this a

terminal concept that combines the eciency,

perormance, luxury, and environmental themes

o its brand.

Above Shoppers can always buy a small

piece o the Herms brand beore they

leave the luxurious store.


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he showroom aade is a unique aluminum

honeycomb with the ull lineup o cars clearlyvisible rom the main road. he back wall o the

dealershipa curve simulating the turns o

racetrackspays homage to udis roots in motor

sports. isplay areas have been designed to

maximize customer interaction with the vehicles

without the need or a salesperson. Shoppers can

drop o their children in the play area or stop

at the caeteria or a snack. hey can also buy

a variety o udi-branded merchandise, a small

consolation or those who cannot aord the cars!

he launch o udis 8L model was particularly

innovative. he company created one o the worlds

rst integrated -D campaign to allow potential

buyers to live the brand even i they could notphysically test-drive the vehicles. -D lm shows

the car in all its beauty, and a microsite permits

users to learn about the model. rac to the

microsite was driven by a direct marketing

campaign in which custom-made, high-quality

udi anaglyphic -D glasses and -D car brochures

were sent to prospective buyers, inviting them to

explore the new model online. oth the lm and the

web experience will be urther developed on touch

screens and -D screens in showrooms.

Such an approach to the customer experience

enormously enhances the brands attractiveness

in the eyes o potential buyers. udi has strongly

dierentiated its dealerships in line with its brandvalues, driving greater anity and thereore greater

sales success in ndia.

Ela a : Hm

Luxury brand stores in ndia are typically ound

either in high-end shopping malls like DF mporio

in New elhi or in ve-star hotels such as the aj.

ut Herms understands the paramount impor-

tance o creating a retail experience or its ndian

customers on a par with those in London, aris, and

New York. er establishing its rst two locations

at the beroi Hotel in New elhi and the sta Hotel

in une, Herms chose to side-step existing

inrastructure or retail and invest in a stand-alone

agship store in umbai.

Located in the historic allard state area o South

umbai, the ,00-square-oot space embodies the

spirit o the brand, extending to every parameter:spaciousness, product selection, and quality o

service. he store, spread over two oors, provides

ample room or exploration o and intimacy with the

ull range o Herms products, rom its customized

ndian sarees to the ragingly popular irkin bag.

he sta are nonintrusive, yet manage to be on

hand the moment a customer has a question. hey

are impressively knowledgeable about the brand

and surprisingly sophisticated compared to most

luxury brand salespeople in ndia.

Herms has also replicated its global model by

including an art gallery in the agship store. his

brand-savvy move enables a stronger connection

with the target customer who is time-starved,cash-rich and seeking cultural inspiration. Soaking

in some art and sipping coee in the upstairs ca

o the store warms up the customer, creating

an emotional bond in which the brand comes

Above very detail in an udi showroom

rom the owers placed in vases to the kindo coee servedhas been careully

chosen to cra an udi brand experience.

beLow hen it launched the L, udi

mailed anaglyphic 3- glasses to potential

buyers and invited them to test-drive the

new car on a microsite.


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Lulu aghavan

to symbolize a whole way o lie. Shoppers can

always buy a small piece o Herms beore theyleavetheres the selection o perumes and

scarves or that.

y building its own store rom the ground up rather

than moving into existing retail space, Herms has

ull control over the design and implementation o

its desired brand experience. Herms is able to live

its philosophy and truly delight the ndian luxury

customer, who has oen been disappointed by the

experiences other brands deliver.

Bl lal: Hal-Da

ost luxury brands in ndia orget about their

customers the moment a transaction has beencompleted. Harley-avidson, however, organises

rides and events that give ndian bike lovers a ull

brand-ownership experience. Harley dealers act

as sponsors o local Harley wners roup (OG)

chapters, creating a orum or bike owners to

meet, interact, and share their passion or biking

within a community. ndia currently has our OG

chapters, located in elhi, umbai, angalore,

and Hyderabad.

hrough OG, Harley-avidson is able to orge

a deep loyalty in its customer base, making it

easy or Harley owners to recruit riends into the

old as well. hey have a ready-made platorm

in their otorcycle oot amp, an immersiveexperience designed to create high levels o

aspiration or the brand.

n a similar vein, Harley ock iders brings together

even more potential or existing riders. he live

concert event, conceptualised by Harley-avidson

ndia and olling Stone ndia, combines live rockmusic with a celebration o Harley values. his

ongoing holistic experience nurtures ndian

customers relationship with the brand.

n a country where many luxury brands are distrib-

uted by local dealers, which may compromise the

experience, Harley-avidsons ocial presence is

a huge plus when it comes to providing aer-sales

support and servicing. he Harley example shows

that investing in loyalty and encouraging shared

passions among customers can multiply brand

awareness and anity.

Smma

xperiential marketing views consumers as

emotional beings who are ocused on the pleasur-

able and meaningul aspects o brand interaction.

orking with the customer journey model can help

marketers develop a competitive, dierentiated

luxury brand awareness. s ior, Herms, udi,

and Harley-avidson all demonstrate, the ocus

on customer experience enhances perception,

encourages purchase, and builds brand loyalty.

he ability to create and deliver innovative brand

experiences has become an important core

capability or luxury goods. rands who go beyond

oering more than product excellence and position

themselves in the market experientially will achievea sustainable competitive advantage in ndia.

The author would like to thank Fritz Kranenborg for his

valuable research and input.

The customer journey rameworkallows marketers to make criticalstrategic decisions about the delivery

o luxury experiences that can makea real diference to a brand.


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9Landor ssociates

Above ritish irlines created a unique

check-in service that was so streamlined

and hassle-ree, business customers

overlooked other blips in service.

Left ior invests heavily in the awarenessstage o the customer journey. or example,

celebrity actress Sonam Kapoor wore

ior dresses in the ollywood lm isha.

right hrough local Harley wners roup

chapters, Harley-avidson is able to orge a

deep loyalty with its customer base.


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Delivering a Luxury Brand Experience