Marketing Communications Assignment:Formal Business Report Including Marketing Communications Plan

Ralitsa DimitrovaDIM08228128MA Strategic Fashion Marketing

Table of Contents:

1. Executive Summary

2. Strategic Audit:

• Current Brand Values

• Brand Positioning and Experience

• Customer Analysis

• Competitors Analysis

3. Brand Reincarnation:

• Ideal Positioning for the Asprey brand

• New Customer Base

4. SOSTAC:

• Situation

• Objectives

• Strategy

• Tactics

• Actions

• Control

5. Conclusion

Appendix 1

Appendix 2

Executive Summary

The purpose of this report is to present an elaborative marketing communications strategy based on evaluation of a current company situation and strategic position. For that purpose a strategic audit was first undertaken in order to understand the current brand values, positioning and the brand experience. An important part of the strategic audit are the customer analysis and the competitors analysis based on primary and secondary data research. Understanding a companyʼs situation in terms of intangible and tangible assets, competitors environment and current customer base is vital before undertaking any change in brand direction and marketing communications. In this way mistakes in marketing strategy are avoided and the efficiency of the marketing communication campaign is increased. What follows is a section called “Brand Reincarnation” that describes the change in marketing direction that the brand analyzed should make. The rational behind the suggested brand reincarnation is also explained. In this case the brand reincarnation process consists of a slight adjustment in the brand positioning and the targeting of an additional prospective customer base. After that a detailed marketing communication plan is presented using the SOSTAC planning system. Through the implementation of the proposed marketing communications campaign the brand should be able to achieve the desired positioning and reach the perspective customer without disregarding its current customer. The campaign should also increase awareness for the brand which is the main communications objective. The brand in question is the British high-end luxury brand Asprey. It was chosen for the analysis because it represents an interesting case of a brand that possess the internal capabilities and assets in terms of heritage, craftsmanship, exquisite service etc., required for being a successful luxury brand, but at the same time is unable to communicate itself in an desirable and aspirational way to the public. It is a brand that is stuck into its own ways while everything else-competition, customers, ways of communication, is changing. The presented here communication campaign strives to return Asprey to its former glory in an innovative and definite way.

Strategic Audit

Understanding the current strategy and situation of a company is a starting point for the development of a successful communications strategy. It is important for the management team to have a clear idea of the current brand values and positioning before taking decisions on the future marketing direction of the company (Corbellini & Saviolo, 2009).

• Current Brand Values:Currently the brand Asprey is associated with “Britishness”, classic aristocracy, finest craftsmanship, exclusivity and an elegant, understated stylistic identity. Its unique British heritage provides the brand with knowledge and expertise to offer customers a luxurious, customized product and service. Through a partnership with the British Academy of Film and Television Arts Asprey emphasizes its origins and celebrates “excellence and expertise” (www.asprey.com, 2009) which were and continue to be the core brand values forming the companyʼs unique selling proposition.

• Brand Positioning and Experience:Brand positioning involves the placement of a brand and all its associations in a distinctive place in the mind of the consumer. “Brand positioning is what drives consumer choices through comparisons. If consumers have a clear understanding and perception of a brand, then they are likely to place the brand in the right position in their minds and this will form a part of their selection process” (Okonkwo, 2007: 117). “Successful brands represent a point of view, and their positioning reinforces that” (Chernatony, 2006). There exist two levels of positioning: a Broad Level which is about anchoring a brand to a category so a consumer has a reference point, and a Narrow Level which involves specific brand positioning that is attributed to each brand (Okonkwo, 2007; Chernatony, 2006). Aspreyʼs Broad Level of PositioningAsprey shares the broad attributes of luxury and as such is positioned as a high-end luxury brand. According to Saviolo and Corbellini (2009) luxury brand can be described as “coherent systems of excellence”. “Regardless of the product categories luxury brands have a certain distinguishing traits, all of which they share” (Corbellini&Saviolo, 2009) illustrated in the figure below:

Asprey possesses all the traditional characteristics of a luxury brand according to this model- high price, superior quality, superior service, selective distribution, tradition and heritage. However the brand lacks association with a “powerful imaginary” that can make it desirable and exiting- the so-called “dream factor” (Saviolo&Corbellini, 2009). It also lacks originality associated with creativity and innovation: as Saviolo and Corbellini (2009) point out “a luxury brand sets its own bar and does not follow fashion or consumer demand”, instead “the brand challenges its customers, their knowledge, taste, and discernment” and creates “virtually authoritarian culture”. In its communication strategy Asprey should focus on innovation and creation of a “dream factor” that can be based on a celebrated creator, mysterious production process, secret formulas or other elements that all represent legends creating an aura of mystery and respect for the luxury brand (Saviolo&Corbellini, 2009).Aspreyʼs Narrow Level of PositioningAspreyʼs unique positioning among the luxury goods segment is based on its royal heritage, finest quality, craftsmanship and expertise. Although customers recognize its quality of products and admire its fine jewelry, many find it hard to distinguish Asprey among competitors and to describe what Asprey stand for. This is a result of an unclear brand positioning, various categories and the lack of aspirational draw. Hence, the customers lack to recognize the contribution that the Asprey brand would make in their lives. As Saviolo and Corbellini (2009) argue, branded goods are distinguished from unbranded goods by their intrinsic and symbolic value and therefore command a premium

The Luxury Brand Experience

Luxury Brand Experience

Innovation and creativity

High price

Imaginary and storytelling

Tradition and heritage

Exclusive communication

Superior qualitySuperior service

Selective distribution

price. The intrinsic value is tangible and is associated with product attributes(performance, durability, workmanship etc.) and the symbolic one is intangible and associated with the social distinction or the emotional value the brand is able to communicate (Saviolo & Corbellini, 2009). In the luxury goods sector where products by deffiniton should have the highest possible quality and craftsmanship, the symbolic value is the one that predominately drives customers buying decision nowadays. For example “Armaniʼs clothes are made from the best materials and have a very refined look but they would just be nice clothes if the brand Armani didnʼt create a story along with layers of memories and emotions behind these products” (Corbellini & Saviolo, 2009, pp. 155). It is identity that gives a brand that particular powerful feeling of uniqueness, timelessness and the necessary authenticity that helps give an impression of appearance (Kapferer and Bastien, 2009: 62). Strong brand identity and image help the business add value to the customer and for shareholders and over time create “brand equity”. Keller (1993) and Krishnan (1996) talk about a model of brand image that is based on first establishing strong brand knowledge base. Keller uses a multi- step approach to develop the brand knowledge model (see the picture below) with two main elements- brand awareness and image.

It is visible from the model that in order to create brand equity in the future Asprey should first establish brand awareness by focusing in its communications strategy on creating recognition and recall for its brand name. It should develop a strong brand image that evokes favorable associations in consumers minds and this brand image should be based on symbolic, intangible factors rather than product intrinsic, tangible factors. Moreover, emotional brands are most successful in extending their product offering to respond to their customerʼs aspirations: when you identify emotionally with a brand, you will be more likely to buy varied products from it, even if your emotional connection was first forged around a specific product line (Gobe, 2001:143).

Developing Brand Equity

Brand Equity

Brand Knowledge

Awareness

Image

Recognition(strong exposure)

Associations(favorable, unique)

Recall(strong associations)

The importance of the emotional bound between the brand and a customer is driven also by the progressive shift of consumer interest and spending toward luxurious experiences rather than luxurious products (Corbellini &Saviolo, 2009). As services, like goods before them, increasingly become commoditized- experiences have emerged as the next step in what is called the progression of economic value (Pine and Gilmore, 1998;97). With the rise of the “experience economy” rises the role of the store as a communication tool as the store represents the place where different brand manifestations converge to give the most complete brand experience a customer can get. It offers also a multi- sensory experience where the products, music, odors, decoration, light, logo and advertising materials are physically accessible (Chevalier and Mazzalovo, 2008:345). After observation in the flagship Asprey store at Bond Street, London the following conclusions on the current Asprey brand experience can be made (based on Gobe, 2001):

Asprey Brand Experience

Visuals Distinctive color: royal purple; no impact from window displays: banal, predictable, product display lack an emotional connection; architecture: distinctive, combining modern and classic; store setting: warm, inviting, cozy, royal certifications are hidden

Scent No distinctive scent except in the fragrance room

Sound At times inconsistent with brand image: jazz vs. disco

Touch Customers are encouraged to experience and touch products; suitable for brand image:velvet in royal purple

Service “At Asprey every person who walks through the door is a customer”; sales personnel are friendly, respectful,welcoming and acknowledge each customer without being invasive, possess good knowledge of the product and know regular customersʼ names

Online Experience (website)

The website (www.asprey.com) lacks to communicate the store experience provided by the Asprey store: it doesnʼt emphasize customization or personalized customer service; no emotional connection, not coherent and not communicating brand image and heritage; not telling any story.

The observation results show that Asprey is missing two very important aspects of the total brand experience communicated through scent and website. It also doesnʼt take full advantage of its large store windows which can be used in a creative and innovative way to communicate brand imaginary. As Schmitt and Simonson (1997) write “smell is the most powerful of the senses” : the differentiability of smell, the strong memory for smell and the ability to create strong associations all make smell an ideal tool for enhancing corporate or

brand identity. Beautiful window displays are a hallmark of the luxury industry (Chevalier and Mazzalovo, 2008). Windows are part of street advertising and if used well have the same function for a brandʼs exposure as a billboard or a poster (Chevaler and Mazzalovo, 2008). The online brand experience on the other hand is of a huge importance for each fashion or luxury brand nowadays and should not be underestimated. The impact of the web in peopleʼs lives is enormous and while the power of traditional media is waning, Internet advertising is expected to become more and more important in the future (Corbellini and Saviolo, 2009). Furthermore, as Corbellini and Saviolo (2009) point out, in order to reinforce the overall brand identity, traditional and digital media have to be combined.

• Customer Analysis:What follows is a customer analysis based on observation at the Asprey flagship store located on Bond Street, London and short interviews with Asprey customers (see appendix 1 for observation sheet and observation data). The observation and short interviews were done from Monday to Saturday and were carried out in two-hour sessions by two examiners. The total observation time is 16 hours as a total of 57 people were observed. The short interviews lasted on average 5 minutes each as a total of 21 short interviews were conducted. The data collected was then processed and analyzed in order to identify demographic, psychographic and behavioral characteristics of the current Asprey customer. Demographic data can provide interesting insight into lifestyle differences between segments (Engel et al, 1994). In the psychographic approach to reaching segments, consumers are differentiated on the basis of differences in patterns by which people live and spend time and money (Engel et al, 1994). In the behavioral method buyers are differentiated on the basis of their knowledge and attitude towards a product or its attributes, and of their response to and use of the product (Engel et al, 1994). The results from the Asprey customer segmentation analysis are summarized in the table below. The major segmentation variables and their typical breakdown (Kotler, 1991) are combined with Acorn classification (www.caci.co.uk/acorn) in order to form the demographic profile. The psychographic profile is based on VALS categorization (Mitchel, 1978) and Warnerʼs Index of Status Characteristics (Burnett, 1993) as well as on a recent study of the luxury customer conducted for Alta Gamma Association.

Demographic Villages with Wealthy Commuters (based on Acorn Classification)• Age: 40 to 60 years old• Sex: women and men• Household Structure: 2 non-pensioner adults• Family Life cycle: married couple, with children over 18 living on their own

but still economically dependent• Income: combined 50000+ per month• Credit Card Limit: 5000+• Occupation: higher managerial/professional occupation, housewives• Working status: full time or self employed• Education: college graduate• Religion: protestant• Race: caucasian• Nationality: British• Car Ownership: 3 cars

Psychographic Social Class: Upper uppers (Burnett, 1993)Lifestyle:Inconspicuous (according to research for Alta Gamma Association)• they value uniqueness, materialism, status and pleasure• expect high levels of craftsmanship• interested in product categories such as jewelry, watches, bags and

furnitureThinkers (according to VALS (Mitchel, 1978))• they are motivated by ideals• mature, satisfied, comfortable and reflective people who value order,

knowledge and resposibility• tend to be well educated and actively seek out information in the decision

making process• well informed about world and national issues• moderate respect towards status quo institutions and authority but open to

new ideas• high incomes but conservative and practicalPersonality: conservative, casual, simple look, elegant, good mannersInterests: music (classical, opera), fine arts and antiques, National Trust, Snow skiingShopping: wine buyersHolidays: winter snow and winter sunUse of internet: to buy/research cars and make holiday bookings

Behavioural • Occasions: special occasions• Benefits: quality, customer service• User status: regular user• Loyalty status: medium• Readiness stage: interested• Attitude toward product: positive• Buyer: women and men• User: mostly women• Shopping habit: most of the people that enter the store are couples

In conclusion, Asprey current customer can be categorized as “Old Money” (Ziccardi, 2001). This is the traditional category of those who have inherited their wealth and who manage a business that they have inherited or who have a standard of living that is not related to their salary. They belong to the Upper-upper class which means that they are

part of prominent families with at least second or triad generation wealth. according to Kapferer and Bastien (1991) categorization of luxury customers, Asprey fits the category of Internalized luxury: comprising the search for an authentic experience, almost an art of living, exclusive and therefore distinguishing you from others through a discreet elitism.

• Competitors analysis: A successful positioning differentiates the firm from its competitors providing it with unique competitive advantage and its uniqueness is tied to the firmʼs ability to offer a specific segment of customers a particular set of benefits (Saviolo& Testa, 2002). Since competitive advantage is a relative concept, a company that has a poor understanding of its competitors can have no understanding of itself (Hooley et al, 2003). That is why competitors analysis is vital for the success of each company strategy. In what follows analysis of the competitive environment in which Asprey operates will be undertaken. The logic of the analysis is presented in the scheme below.

The concept of strategic groups is used in order to identify the organizations within the luxury goods sector that have similar strategic characteristics, follow similar strategies or compete on similar bases (McGee et al, 1986). The following graphical illustration gives an idea of the way the luxury goods sector is segmented in terms of price and distribution level.

Strategic Groups in the Global Luxury Goods Retailing

Jewelry/Watches Specialists Segment: Positioning Maps

Analysis of the 3 main competitors (according to

Lehman&Winer(1991)

Price

Extended DistributionSelective distribution

Hermes Chanel

GucciLVMHValentino

Giorgio ArmaniPrada

Dior

Shiseido

Clarins

Estee Lauder

Dior Perfumes

Jewelry/Watches Specialists

Fashion/Leather Specialists

Perfumes/Cosmetics Specialists

Asprey

Cartier

Boucheron

Bulgari

Tiffani & Co

De Beers

Chopard

Three strategic groups can be distinguished:1) Perfumes/Cosmetics Specialists: this is the so-called “accessible luxuryʼ” that almost

everyone can afford. Distribution is extensive and price is low to medium. The incumbents from this strategic group specialize in high quality beauty products and use mass marketing to advertise their product offer. Nowadays barriers to entry of this strategic group are lower to the benefit of the players from the other two strategic groups which use the strength of their brand names and introduce perfumes and cosmetics to enter the accessible luxury segment and compete with the specialistsʼ brands.

2) Fashion/Leather Specialists: this group includes the lifestyle luxury players. Here the incumbents success depends on distinctive style, restricted distribution, selective communication and strong brand name based on a unique designer personality or rich heritage. Prices are relatively high and usually product range is extended to many different categories- clothing, bags, shoes, home wear etc. An important communication tool for these players is the participation in an annual fashion show.

3) Jewelry/Watches Specialists: in this strategic group are positioned competitors that offer the so-called “extra luxury”-unique pieces and luxury experience, exclusive rare materials, made-to measure services and the highest level of craftsmanship. Prices are very high and the distribution is even more restricted. Marketing communications are also very selective, mainly CRM is used. Some of the brands positioned here have extended their product range to high quality leather accessories and perfumes but their core competence remains within the jewelry/watches production. Asprey is part of this strategic group because although it has a quite extended product range, its internal characteristics such as company history,culture of craftsmanship and made-to-measure services and the way they are marketed and distributed correspond to those of the jewelry/watches specialists.

In order to narrow the analysis it is convenient that one focuses on the particular strategic group of the jewelry/watches specialists. The first positioning map shows the way the main competitors are situated in terms of their internal capability for product customization and the size of their product range. One must agree that Asprey occupies a very good competitive position since not many jewelry/watches specialists can offer such a wide product range most of which is fully customizable (refer to the graph below). Aspreyʼs internal capabilities form a great part of its competitive advantage.

The second positioning map gives an idea of how the competitors are positioned in consumers minds- as associated predominately with tangible benefits(product quality, materials, product durability etc.) or intangible values (love, friendship, sensuality, femininity etc.) versus brand awareness. This positioning map relates largely to how the brand is communicated to the public. It is evident that despite Aspreyʼs competitive internal capabilities(as illustrated on the previous map), the brand name suffers from low awareness relatively to the rest of the incumbents. Moreover, while most of the competitors in the segment communicate their brands through emotional and intangible values and try to make them aspirational, Aspreyʼs brand name is associated only with tangible benefits which implies that solely customers with rational purchase motivations are attracted. However, nowadays selling the best product is not enough, especially in the luxury goods market where the exceptional quality of materials and craftsmanship is a characteristic of all existing players. Thatʼs why in order to differentiate from competitors a brand needs to offer something more- it should establish an emotional connection with the client based on intangible assets that are not imitable. As pointed out by Webb (2007) “communications are increasingly focused on developing brand values rather than selling products”. It is also worth mentioning that the competitors with larger product range are

Standardization

Customization

Narrow Product Range

Wide Product Range

usually those whose brands are communicated through intangible values. The logic being that since their core competence is in jewelry and watches, the only way to sustain other product categories and make people buy them is to make the brand aspirational.

The next step in the competitors analysis is identification and assessment of the three main Aspreyʼs competitors according to Lehmann and Winer (1991) model. The model aims at assessing competitors current objectives, current strategies, resource profile and log term strategy. For the purpose of the analysis data from both secondary (websites, articles, corporate reports etc.) and primary research (observation) was collected and conclusions were drawn for each assessment category on the basis of the following indicators (Lehman & Winer, 1991):1) Key indicators of current objectives: stated goals, ownership, investment priorities,

market assumptions2) Key indicators of current strategies: advertising and media messages, new product

introductions, distribution channels used

Intangible/Emotional Association

Tangible Associations

Low Awareness

High Awareness

3) Key indicators of resource profile: promotional expenditure, financial resources, marketing assets, production capabilities

4) Key indicators of long-term strategy: past strategies, past and current reactions, past successes and failures

The results are summarized in the table below.Overview of the Three main Competitors

Bulgari Cartier Boucheron

Current Objectives

• increase efficiency and decrease expenses(in view of the current economic climate)

• increase traffic and stimulate interest

• preserve the image of the brand by avoiding price reductions and not engaging in trade overload

• target the “new rich” in developing markets but at the same time maintain its image and exclusivity for its existing customers

• increase presence in China• focus on watches- claimed to

be the new “it” category

• reinforce the brand image capitalizing on “creative spirit”

• become the ultimate French luxury jewelry house in China

• grow watches and sunglasses categories

• create a luxury online experience that truly translates the brand

Current Strategies

• use charity as a new motivation for buying jewelry

• mix precious and non precious materials to create statement watches with an impact

• target a younger more impulsive purchased through fragrances

• develop leather accessories for longer daily utilization

• focus on CRM and POP marketing

• foster brand image through fine vintage jewelry exhibitions

• move from a product specific campaign to a brand campaign to benefit all categories

• engage in charity initiatives (ex: Women Initiative award)

• promote brand image through association with Contemporary Art (Cartier Foundation for Contemporary Art)

• celebrities endorsement and involvement in charity initiatives (Rosario Dawson, Rachel Weisz, Kirsten Dunst)

• CRM (ex: Cartier Club)• translate the Cartier luxury

experience in a web context (My Space Love Cartier Page, Cartier online magazine)

• reduce the number of retail outlets in US and Europe

• leverage on the signature design: nature and animal symbols (ex: iGoogle Boucheron page design, collaboration with Vertu for the creation of Boucheron phones)

• emphasize heritage, sensuality and femininity in design and marketing

• develop both fine jewelry (price around 50 000$) and costume jewelry (price around 5000$)

• employ a “Radical approach about fun” (according to CEO Jean-Christoph Bedos)

• organize events with bloggers

Resource Profile

Four main assets:• strong brand• articulated product

portfolio:diversified product offer and price range but only including categories in which the quality of materials is a key

• international retail network• motivated management team

(family members)

• strong brand name and well communicated heritage

• part of Richemont Group: access to financial support and managerial expertise in luxury jewelry and watches

• well diversified product portfolio targeted at both younger and older customer base

• distinctive design• well communicated

country-of-origin• part of Gucci Group:

financial and managerial support

Bulgari Cartier Boucheron

Long Term Objectives

• gain market share• improve competitive

position• take advantage of

opportunities now in order to profit when the market stabilizes

• attract younger customer• sales• penetrate new markets• realize the brand potential to

its fullest

• become leader in developing markets (ex;China, Dubai)

• attract younger customers

As a result of the analysis several common trends can be identified:

• focus on attracting younger customer base

• focus on developing markets, in particular Asia, China

• understanding of the advantages of the internet as a marketing tool

• understanding of the importance of intangible value for brand building

• engagement in charity initiatives- a new purchasing motivation for luxury customers

• emphasis on watches- seen as the new “it” category.

Brand Reincarnation

Luxury brand management is a balancing act: keeping with traditions, breaking from them, balancing old and new, nurturing the roots of tradition and know how but at the same time staying fresh, relevant and contemporary (Corbellini&Saviolo, 2009). According to Corbellini and Saviolo (2009) “keeping the dream alive” is the key success factor in this industry. “The difference between brands that are successful for generations and all the others lies in their approach to the future. Brands that wonʼt last are happy with the existing product, while great brands are never happy with here and now and constantly seek new improvements in order to satisfy a changing and increasingly sophisticated consumer base” (Corbellini&Saviolo, 2009,pp.161). These brands create the future with a solid grounding in their past.

• Ideal Positioning for the Asprey brand:In positioning Asprey, the brand must become synonymous with British luxury. By focusing on its legacy and traditions to strengthen it core jewelry product Asprey becomes Britainʼs jewelry brand. Furthermore, in positing Asprey among the leading luxury players, like Cartier, Bulgari and Bocheron, Aspreyʼs competitive advantage lies in its prestigious British royal heritage. Enabling Asprey to advertise itself not as luxury brand but a prestigious supplier of the ultimate of luxuries- fit for royalty. To do this, Asprey needs to establish an emotional connection with the consumer through a brand that is associated with passion, mystery, power and sensuality through an inimitable style.

In short, Asprey will become the ultimate British jeweler by focusing on an updated image of the brand that encompasses passion, mystery, power and sensuality through an inimitable style that revitalizes the brand for consumers today.In order to achieve that, an effective story about the Asprey brand should be developed and communicated to the public. As Corbellini and Saviolo (2009) write storytelling is an integral part of modern branding- a strategic tool for communicating brand values. If a brand is willing to be more than just a list of adjectives and wants to achieve depth and realism, the brand needs to have come from somewhere and be going somewhere (Corbellini&Saviolo, 2009). Furthermore, companies build their brands through stories that explain to the customer the buying and using experience- storytelling is also about educating about the product and its quality. In successful storytelling history plays a vital role. Many companies, as Asprey, have a long history. However, history becomes “heritage” only when the company is able to create a charming story around it (Corbellini&Saviolo, 2009). According to Saviolo and Corbellini (2009) heritage is made of four components: place (ex: London, England for Asprey); people (founder, the family, designer etc.); the brand legend (the story told as legend: the artof travel for Vuitton, Feraragamo as shoemaker of the stars,ex: Asprey and its long history of serving the British Royal family); the products in terms of iconic products (the trench for Burberry, the Kelly for Hermes,ex: the “Asprey diamond cut” for Asprey). Competitors can imitate a brand or its products but cannot imitate its heritage. Thatʼs why Asprey should better exploit its heritage in its communication in order to make it better known and create a reference in consumers minds that immediately connects the name “Asprey” to British royalty and the luxurious lifestyle of traditional aristocrats. Emotional associations such as passion, mystery, power and sensuality logically follow. As Corbellini and Saviolo (2009) point out passion in luxury is a requirement because we are working with beauty, excellence in craftsmanship, history and culture. Passion must be authentic and transmitted to the customer, along with pride in the brand represented. In historic luxury brands the search for excellence, ethics and passion are ever-present- they constitute the value dimension that shapes also the service policy (Corbellini & Saviolo, 2009).The positioning map below shows the current and the new intended Asprey brand positioning in consumers minds according to whether it is associated with celebrity lifestyle or aristocratic lifestyle and whether is transmits emotional or rational values. It is evident from the positioning map that the Asprey brand currently has an unclear positioning according to the celebrity vs. royalty dimension and lacks emotional added value to its offering. These two aspects should be the focus of the future communications campaign.

Brands are dynamic offerings. They have to evolve to reflect the changing demands of customers as they gain more experience, as well as continually maintaining a position of strength against ever-changing competition (Chernatony, 2006).

• New Customer Base:In order to become one of the powerful luxury brands and remain relevant in the future, Asprey should attract a new customer base composed of younger consumers. As previously shown in the Strategic audit section the current Asprey customers are affluent men and women in the age range of 40 to 60 years. This customer segment is usually loyal towards favorite brands but is aging and its numbers are constantly decreasing. In order to ensure profitability for the future Asprey should target younger wealthy customers as well. Without disregarding its current customers, the brand should focus its marketing communications campaign on attracting a group of people with a different customer profile. The characteristics of this new customer profile are summarized in the table below as demographic and psychographic analysis is made similarly to the analysis of the current customers presented before.

Celebrity Royalty

Emotional

Rational

Empty Spot !

Demographic • Age: 30 to 40 years old• Sex: women and men• Household structure: 1 or2 non-pensioner adults• Family Life cycle: single or newly weds• Income: 20000+ per month (fixed plus other income)• Credit card limit: 5000+ • Occupation: middle managerial/professional occupation• Working status: full time working• Education: college graduate• Religion: protestant• Race: caucasian• Nationality: British• Car ownership: 2 cars

Psychographic Social class: Uppers (Burnett, 1993)Lifestyle:Meaning Seekers (according to research for Alata Gamma Association)• They value time, freedom, space, meaningful experiences, hedonic, self-

identity.• They seek detailed information about products such as their origins,

ingredients and their manufacturing, updated on scientific research concerning health and the environment, make choices that reflect their convictions, live the dream.

Innovators (according to VALS (Mitchel, 1978))• Innovators are successful, sophisticated, take-charge people with high

self-esteem. They have such abundant resources.• They are change leaders and are the most receptive to new ideas and

technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services.

• Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges.

• Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.

Personality: personal sense of style, elegant, good manners, confident, sociable, culturedInterests: jazz music, fine arts, theatre, snow skiing, dinning out, charity, private parties, networkingShopping: wine buyerHolidays: mostly winter snow, but also winter sunUse of Internet: to research interests and buy online.

SOSTAC

There are many different approaches to building a marketing communications plan but one of the most frequently used is the so-called SOSTAC which stand for Situation analysis, Objectives, Strategy, Tactics, Action and Control (Smith & Taylor, 2004). What follows is a detailed outline of a marketing communications plan for the Asprey brand formed using the SOSTAC structure.

• Situation:As a form of situation analysis was already presented in the Strategic audit section, here the focus will be on Aspreyʼs current financial performance and the performance of its newly introduced website.The Asprey brand is distributed through mono-brand outlets in the UK (London, Berkshire), USA (New York, Miami, Honululu, Berevly Hills), Switzerland (St. Moritz), Japan (Tokyo, Osaka, Nagoya), UAE (Dubai) and Malaysia (Kuala Lampur). The most important of which is the London Bond Street store because it generates 70-80% of the sale volume. However the latest Asprey turnover (31/03/2008) is 17,175 th GBP and is decreasing since 2004 (Fame report). The profit margin (31/03/2008) is -39,41% and it is worst than in 2007. As for the new informative website launched in November 2008 the results show a disappointing performance as well. The following graphs from www.alexa.com (accessed 16/03/2009) show the performance of www.asprey.com relatively to the three main competitorsʼ websites in terms of daily page views, daily reach and daily traffic.

As it is visible from the graphs Aspreyʼs website performance is much worse than that of its main competitors with the exception of www.boucheron.com. This is mainly due to the fact that the website fails to communicate the brand “story” and lacks images that evoke emotional values- it simply presents the product in a catalogue style format. People that visit the Asprey website (see picture below for breakdown by country) are not engaged in the brand experience and not motivated to frequent the website.

If Asprey continues to do not take advantage of the possibilities that the Internet offers for brand image enhancement, its brand awareness will continue to be lower than the one of competitors and this will continue affecting profits. As Corbellini and Saviolo (2009) write fashion websites and communities, fashion and luxury portals and social networks are profoundly changing the language of communication which has to be more and more interactive, made-to-measure, informative and inclusive. Overall the strategic audit and situation analysis point out to the following issues that must be addressed by Asprey:

• Lack of clear positioning;

• Lack of brand awareness;

• Brand values are not successfully communicated;

• Incoherent brand communications lacking innovation in terms of message and channels used;

• Target is very narrow and aging.

• Objectives:1. Marketing Objectives

• Increase sales of Bond street Asprey store by 10 per cent over the next 12 months

• Increase the existing customer base by 25 per cent over the next 12 months bytargeting a younger Asprey target market.

2. Communications Objectives

• Increase Asprey brand awareness by 50 per cent over the next 12 months among 40 to60 year old, upper upper class women and men (current customer profile).

• Generate Asprey brand awareness of 25 per cent over the next 12 months among 30to 40 year old, up and coming professional women and men (prospect customerprofile).

• To revitalize Asprey image from an old, monotonous brand that only focus on quality toan up-to date aspirational luxury brand enhancing its British aristocratic heritage bydeveloping an emotional connection with the current and prospect customers.

• Strategy: The aim of the whole campaign will be to integrate all communication tools through one powerful concept creating a memorable brand experience and at the same time generating word of mouth as well as brand awareness. The strategy consists of two stages. Stage one aims to raise brand awareness and create brand experience. Stage two, aims to increase top of mind.Phase oneFirstly the story around the brand should be created. To do that we are first launching a viral short movie of 5 minutes that will enhance the brand values and the emotional associations mentioned earlier. The viral will have two purposes, first, to make the brand known, second to start a “competition”. The idea is that the story takes place in London, and it would be a sort of Sherlock Holmes mystery that needs to be solved. It would be about a stolen one-of-a kind diamond ring worth a million dollars. The price of solving the mystery is that the winner gets the diamond ring and the same amount of money that the ring is worth, will be donated to a charity organization chosen by the winner. The strategy around the idea is to get a lot of press releases and free press that will generate a lot of word of mouth and brand awareness, and also make the brand aspirational. Will begin with a wide range of media coverage to reach the masses and put Asprey on the map and then gradually the media used will become very targeted only to reach Asprey target market.The viral will be done with a famous and iconic British director to emphasize the Britishness of Asprey. The main characters will be very attractive and good looking models that fit Asprey identity but they wont be famous in order to do not overshadow the brand. The purpose of this video is both to advertise Asprey modern image and launch the beginning of the “Asprey mystery game”.The viral will be emailed to all clientele, press, and uploaded to selective websites (www.asmallworld.com , fashion luxury blogs, www.linkedin.com ). To support Asprey viral

campaign a mini website will be created, it will be divided into 2 parts (Public and Private). The public one will be for the masses and the private one will serve as a network site where the competition will be held. Moreover, Asprey London flagship store will also be used as a communication tool where the window display will project clips of product placement found within the film.Afterwards, approximately 40.000 people will receive an invitation by post for the competition with a personal unique password and the first clue. The participants will consist of all (USA, UK, UAE, Japan) Asprey database clients, as well as a selected few from a purchased database. The purchased database will be composed of Asprey new target market described above. The invitation password will allow access to Asprey´s private competition site. The rest of the competition will take place via the Internet and on Asprey´s networking site. Thus, the dynamic of the game has the following logic: after receiving the direct mail invitation, and figuring out the first clue, the participant logs into the Microsite with his personal password; he has two weeks to submit his answer and has only one chance to submit the right one- if he fails, he is out of the competition, if he succeeds, he gets the second clue through the Microsite and so on and so forth, until the final sixth clue. The person that submits the last answer correctly first, is the winner. Lastly, this competition will be supported by various events that resemble or continue playing on the theme of the short film. The purpose of these events is to draw the consumer further into the films mysterious plot. Some events will take place in spaces where the film was recorded to have them experience first hand the mystery thatʼs unfolding. The finale of the competition will conclude with a ball at the mansion where the film is mainly shoot. A prize will be awarded and the charity organization of choice will be revealed.Phase twoAfter the competition is over the second stage will consist of both mass media coverage and targeted customer events. To remain relevant and associated with the luxury jewelry sector Asprey will begin to advertise in the most prestigious and influential fashion magazine Vogue with an important presence (two sheets at the beginning of the magazine) for the following. This ensures the brands buzz and aims to retain the aspirational draw generated by the first stage of the communication strategy. Our target customer will be addressed with private events beginning with Asprey´s annual Christmas Party. Which will be a Christmas party for VIP clients in London where they will get to wear Asprey Jewels during the evening. Another winter event will be held at Saint Moritz.

• Tactics:The tables below presents a detailed description of the initiatives undertaken during the marketing communications campaign of Phase 1 and Phase 2 respectively.

Phase 1

Asprey Website

• Make it warmer, more emotional (not so rational) by incorporating images showing the story and lifestyle of the brand

• Have an appealing intro• Update by making it more animated• The aesthetic should emphasize the British heritage • Contextualize product presentation (photography)• Include campaign photographs from December onwards• Emphasize the customization service

Production Time: April and MayRunning Time: From June onBudget: US$ 80,000

Campaign Microsite

• Mysterious• Animated• Experiential• Music• Interactive• Divided into two sections: Private and Public• Contents (Public): Short Film, Press Releases, News, Terms & Conditions,

Charity• Contents (Private): Clues for the mystery solving, Gallery pictures of the

events.

Production Time: April and MayRunning Time: From June to DecemberBudget: US$ 100,000

Short Film • Duration: 5 minutes• Plot: A modern day romance story about a British aristocratic couple,

involving the theft of a one of a kind diamond ring.• Characteristics: Mysterious, thrilling, romantic, sophisticated, passionate.• Setting: London and UK countryside. • Aesthetics: Timeless and precious photography• Director: Well known, respected British film Director like Joe Wright

(Atonement, Pride and Prejudice)• Casting: Unknown British, good looking actors, around 30 years old

Production Time: April, May and first two weeks of JuneRunning Time: From mid June to DecemberBudget: US$ 2,500,000

Phase 1

Viral Marketing

• Distribution: Upload the short film to the campaign Microsite, Luxury fashion blogs, social networks and websites (i.e. Small World, Linked In, etc.), Email to client database, Press.

• Forward option to send to a friend• Approximately reach 50,000 people (existing customer database: UK, US,

UAE, Japan, Malaysia and purchased database of new target market) • Expected Spread of the short movie: 500,000+ people

Launching Time: Second half of June Budget: US$ 75,000

Window Displays

• Project clips of product placement found within the short film• Interactive: the image is reveled when movement is detected on the street • One display taking three windows of the storefront. The rest of the window

displays need to be updated to ingrate the theme and be more fresh and innovative, like Selfridges.

• Purpose: Create buzz and attract as many people as possible to the store

Production Time of Interactive Window Display: May to mid-JuneRunning Time of Interactive Window Display: From mid June to end of JulyBudget for Interactive Window Display: US$ 50,000

Production Time of Traditional Window Displays: One MonthDisplay Time of Traditional Window Displays: Schedule to vary every two months but can change depending on significant events. Launching in JuneBudget for Traditional Window Displays: US$ 100,000

Direct Mailing

• Content: Personal Invitation to participate in the competition, Individual Password to access the private section of the Microsite, first clue of the mystery and terms and conditions of the competition

• Target: Asprey current database (US, UK, Japan, UAE, Malaysia) and new purchased customer database (approximately 40.000 people)

• Aesthetics: High quality paper, modern and tasteful graphic design

Production Time: May and JuneDelivery: Fist week of JulyBudget for Traditional Window Displays: US$ 150.000

Event 1: Day in the Countryside

• To reflect the British lifestyle of the brand, the main characters of the short film (couple) will be used as an excuse to host a one-day event in the countryside.

• Activities: Polo match, picnic, live music, tea party• Location: Royal County of Berkshire Polo Club• Guest List: Customer database• Total Guest List: 400 • Invitations: are going to be personalized and sent by mail by mid July

Organization Time: June and JulyEvent Date: Last week of JulyBudget: US$ 300,000

Phase 1

Event 2: Award

Winning Gala

• Gala cocktail celebration to award the prize to the winner of the competition and to reveled the charity organization that will get the donation

• Prize: US$1,000,000 worth ring• Charity Donation: US$ 1,000,000 to an organization of choice of the winner

(from a pre selected group of Charity Organizations that are in line with Asprey brand values)

• Guest List: Press, Charity Representatives, Director and actors from the short film, influential business people and those 100 people that reached the last stage of the competition

• Total Guest List: 300 • Invitations: are going to be personalized and sent by mail at the beginning of

October• Location: Mansion where most of the short film scenes took place

Organization Time: September and OctoberEvent Date: Last week of OctoberBudget: US$ 250,000 (party) + US$ 1,000,000 (Award) + US$ 1,000,000 (Donation)= Total US$ 2,250,000

Public Relations

• Press releases• Editorials• Host press releases cocktails in order to build strong relations with journalists

and media• It is expected to receive a lot of media coverage because of the innovative

approach to luxury communications and the lavish prize and donation

Running Time: June to the beginning of NovemberBudget: US$ 150,000

Phase 2

Spring AD Campaign

• Use same model from the video• High fashion focused, artistic, and edgy with a mysterious feel for the

campaign.• Famous and known photographer• We want advertising to focus on the Jewel (Asprey) but communicate the

whole feel of what Asprey brings to your life.• The aim is to place the brand Asprey among competitor for consumers and

associate brand values with their aspirations.• Publish only in Vogue UK, double page spread in first half of the issue,

establish year contract with publication

Production: Photo shoot in summer begin publication in Vogue UK for December with press release party in NovemberBudget: 2million US$ Vogue Expense (DEC/JAN/FEB/MARCH Issues): approximately 480,000 US$, Press Release Launch Event: 20,000US$ Total: 2,500,000 US$Duration: Year round

Phase 2

Event 1: Asprey

Christmas Party

• Exclusive VIP 300 customer annual party + 100 selected press• Coincide with launch of advertising campaign• Customers will get to wear for the evening jewellery used in campaign• Champagne and finger food• Live jazz quartet band to create ambience• Asprey will conduct a silent auction consisting of various items from previous

season and prizes all proceeds will go to Asprey sponsored charities.• Purpose: Provide customer with brand experience to acknowledge customer

care and present campaign

Organization Time: Mid- October till third week of DecemberEvent Date: Third week of DecemberBudget: US$500,000

Event 2: St.

Moritz Winter Dinner

• In collaboration with The Murezzan, Asprey throws a one-night surprise dinner party aimed at a younger potential target market in their prestigious lounge and bar.

• Expecting 200 guests, selected from Asprey and The Murezzan database.• Purpose: Attract new target and collaborate with The Murezzan to develop

consumer knowledge of St. Moritz location.• Hiring a chef that belongs to Ferran Adria Deconstructivist School. • Instead, he has referred to his cooking as deconstructivist. Adrià's stated goal

is to "provide unexpected contrasts of flavors, temperature and texture. Nothing is what it seems. The idea is to provoke, surprise and delight the diner." (www.elbulli.com)

Organization Time: From September until DecemberEvent Date: First week of JanuaryBudget: US$ 145,000

Public Relations

It is estimated $100,000 will be used to cover all PR expenses for the launch of

the AD Campaign, Christmas Party and St. Moritz Dinner Party.

• Actions: The action stage reveals the details of the tactics (Smith &Taylor, 2004). A full action plan table can be found in Appendix 2.

• Control:Given that measuring marketing performance is generally fraught with difficulties and that there are few general standards to which to adhere, it may be useful to try to integrate financial and non-financial measures. This will eventually lead to a greater understanding of why an organization may be able to achieve a good return of investment (Lenskold, 2002). The use of marketing measures is becoming an essential component in understanding the effectiveness of marketing strategies (Ranchhod, 2004). The table below provides an understanding of how the campaign effectiveness will be measured.

Quantified Objectives Means of Measurement

Frequency of Measurement

Accountability Cost Action

Increase sales of Bond street Asprey store by 10 per cent over the next 12 months

Sales Analysis / ROI

Quarterly Asprey Finance Department

No cost CEO

Increase the existing customer base by 25 per cent over the next 12 months by targeting a younger Asprey target market.

Database Analysis

Monthly Asprey´s Marketing

Department

No cost Marketing Director

Increase Asprey brand awareness by 50 per cent over the next 12 months among 40 to 60 year old, upper upper class women and men (current customer profile).

Number of Responses to

the Competition,

Event Turnover and Website

Traffic

Monthly Asprey´s Marketing

Department and www.alexa.com

No cost Marketing Director

Generate Asprey brand awareness of 25 per cent over the next 12 months among 30 to 40 year old, up and coming professional women and men (prospect customer profile).

Number of Responses to

the Competition,

Event Turnover and Website

Traffic

MonthlyAsprey´s Marketing

Department and www.alexa.com

No cost Marketing Director

To revitalize Asprey image from an old, monotonous brand that only focus on quality to an up-to date aspirational luxury brand enhancing its British aristocratic heritage by developing an emotional connection with the current and prospect customers.

Surveys to Measure

Customer Value and Brand

Equity

Bi-annually Market Research Company

US$100,000 CEO and Marketing Director

ConclusionMarketing communication in luxury in the future will become more innovative and traditional tools will be mixed with new techniques, using digital media and user generated content. Luxury brands understand that old ways of communication are becoming less effective and the new generation of consumers is comfortable with seeing and buying luxury on the Internet. The brands that first take advantage of the possibilities that new media offers for communication will continue to be successful in the future. Brands as Asprey should not be afraid to challenge the notion of luxury established in the minds of their old customers- providing continuously the same exquisite level of quality and service will ensure the loyalty of their old customers, at the same time innovating in marketing communications and using new media will help Asprey attract the younger customers whose loyalty will ensure the companyʼs profitability in the future. The brand managers need to have this long term perspective in mind when deciding on the strategic marketing direction of the company.

Appendix 1: Observation Sheet

OBSERVATION

Date: Time of observation: Sheet No:

!" Male Female Couples

#" Pre-teens Teens Young Adults Working Adults Elderly Retired <12 13-19 20-29 30-39 40-59 60-80

3) Caucasian Black Middle Eastern Oriental Indian Hispanic Other

4) Personal Appearance/ Dress:

5) Attitude towards store environment and staff:

6) Luxury customer segmentation:

1New Rich

2Hedonistic

3Fashionista

4Ethical

5Inconspicuous

6 Aristocratic

7) Time spent in store:

5-10 min. 11-20 min. 21-40 min. more than 41 min

8) Buying behavior:

Didn’t engage in purchase Engaged but didn’t buy Engaged and bought

QUESTIONAIRE

!" Did you know the brand Asprey before entering the store today?

#" Why do you like Asprey? Why?

$" What do you enjoy doing in your leisure time?

4) What is your post code or neighbourhood of residence?

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