Strategy Alignment in Support of Brand Quality Perceptions

Recently, I have been helping owners of a luxury watch brand rethink their pricing strategy as it relates to their brand strategy. One of the exercises I engaged them in was to explore a wide variety of their strategies to determine to what degree they supported their intended brand image. In particular, I wanted them to think about all of the things that could enhance or detract from brand quality perceptions.

This is something every brand manager needs to think about whether working on a luxury brand or some other type of brand. Each of these is a signal to a brand's quality.

• Craftsmanship
• Design/Styling
• Look/feel
• Durability
• Reliability
• Awareness
• Brand cache
• Pricing 
• Country of Origin
• Scarcity
• Outlets at which they are sold
• Where they are advertised
• Service and support
• Reviews
• Word of mouth
• Brand story

It is surprising how many times we discover disconnects between the brand's intended image and the image that some of its strategies convey.

Assume you are a luxury brand. You should not sell in Wal-Mart. Depending how "high end" you are, you might not even want to sell in Target or Macy's. Luxury brands need controlled prices. The brand owner does not want to see them deeply discounted throughout the marketplace. You wouldn't expect to find a great watch brand produced in Mexico using Chinese movements. Nor would you expect to find a great wine brand produced in Siberia or Yemen. Luxury brands shouldn't seem to be ubiquitous in massive quantities. Even worse, the excess inventories should not show up on every discount website. A luxury brand should not show up on Amazon.com for $2.99 no matter how old, ragged or used. Some brands are only sold in their own stores on Rodeo Drive, Fifth Avenue and similar shopping districts in a handful of upscale communities worldwide. Rolex advertises at elite sporting events (maxi yacht races, polo matches, equestrian events and other similar events), not football games or bowling tournaments. 

It is amazing how many times one finds one or more of these out of alignment with what the brand is trying to communicate. I encourage you to to assess your brand's alignment against each of these. 

Luxury Brands and Exclusivity

Exclusivity is an important aspect of true luxury brands. People who purchase these brands want something that few others can have. A few different things contribute to their exclusivity: limited distribution, prohibitive price points and highly targeted marketing. Often, luxury brands are "insider brands," that is, they are so "high end" that most people have never even heard of them. Only others who are in the same socio-economic circles will recognize and truly appreciate them.

Limited distribution may mean that they are only in high end specialty boutiques in high end shopping districts in only the most elite enclaves around the world. This not only rules out Walmart but also Macy's and maybe even Nordstrom and Neiman Marcus. 

The price points may also be prohibitive for most people, for instance a $5,000 Rubin Singer party dress, a $4,000 pair of Christian Louboutin evening shoes or $600 Vilebrequin men's swim trunks. Or consider the $2.4 million Bugatti Veyron Super Sports car, the $66 million Bombardier Global 8000 private jet, or a variety of super yachts that range from $200 million to $1.2 billion each. And consider purchasing an Ocean Pearl 2-person mini-submarine for your yacht. It is one of several brands that are priced between $80,000 and $4 million+.

Regarding marketing, consider Rolex. Rolex is the primary sponsor of many elite yachting and equestrian events. I doubt you would ever see Rolex sponsoring a hockey, baseball, basketball or football event.

Here is the interesting thing about luxury brands - some of them are also intended to be aspirational brands for people from the next socio-economic rung down who aspire to enter the higher socio-economic circle. Sometimes those brands create lower price point products as entry products to the brand. While this may expand sales significantly, it can also turn off the original customers if they perceive that the brand is becoming less exclusive. The brand loses its mystique or cachet.

What is it about exclusivity that is so appealing? Is it its ability to turn heads and cause hushed conversations? Is it its ability to provoke envy? Is it just knowing that you have something that few others in the world can have? Is it firmly reinforcing your social status? Is it just finding and possessing something that you have never seen before? Or is it the item's rarity itself?

If you are responsible for a true luxury brand, you must consider the notion of exclusivity as part of your brand's essence.

Brands and Baseball Caps

Brands are often used as self-expression vehicles. And baseball caps are a simple way to do this.

People use baseball caps to communicate their interests and affiliations. They use them to demonstrate their support or pride. Baseball caps can project a certain image or social status. People use them to connect with other like minded individuals. Baseball caps can also communicate personal accomplishments and personal passions.

I thought it would be fun to present you with a variety of baseball caps. Think through the type of individual who would wear each cap. What are his passions? What is he trying to communicate? Why did he buy a cap with this brand on it? What is his likely social and economic status? Will it identify him as a certain type of person? Will the baseball cap attract certain people and turn others off? What are each brand's associations? Are you familiar with some of these brands and not others? Does that say something about you? Are some of these brands insider brands? Think about how much a brand can say about a person who uses that brand as a badge.