Junction Eleven Breakfast Seminar: The Science of Luxury
20 Jun 2014
As part of our event schedule for 2014, we recently ran a seminar for our clients and contacts in the lux sector entitled ‘The Science of Luxury’.
Junction Eleven and Luxury
With a client base that includes Graff diamonds, Asprey, Rolls Royce and Bentley, we have been producing stunning imagery for the luxury sector since we opened our shutter doors in 2005. For this event, we wanted to examine more about how luxury marketing strategies should continue beyond the image.
Our speaker was Ad Agency Planner, Lee Jackson .
Lee introduced the presentation by saying that whilst there is a wealth of opinion on what luxury is, who buys it and what it looks like from a creative or stylistic point of view there is much less on the marketing and communication strategies needed to develop or maintain it.
How do brands create price inelasticity?
Given that for most luxury items there is a cheaper option available from a more everyday brand, it is critical that these brands maintain a high degree of price inelasticity – with consumers willing to pay high prices for a product that is available for less elsewhere.
Much of the presentation looked at proven strategies for how pricing can be made to be less sensitive, where more people are willing to pay more for the product.
1. Reach is more effective than loyalty.
A focus on existing customers at the expense of attracting and acquiring new ones can be detrimental to both driving volume and maintaining a high price point.
2. Get Emotional
To create the broad familiarity needed to strengthen price it is essential to communicate in an appropriate way – using emotional rather than rational content.
3. Have patience.
Broad reaching and emotional marketing activity takes time to work which doesn’t always sit comfortably with business managers who are looking for quick returns on their investment.
4. Seek Fame.
Fame campaigns on make people feel differently about the brand in an active way - compelling someone to share their enthusiasm with others on and offline.
These campaigns need to be surprising in some way which is why people share them. Because of this element of surprise, there is a strong link between fame and creativity, and therefore between creativity and reduced price sensitivity.
5. Be distinct
In terms of distinctiveness, the one core rule is don’t slavishly follow the crowd. If we’re to stand out and surprise we need to transform conventions – taking these generic product attributes and making them truly memorable and linked to our brand.