The meaning of

Luxury Brands
in a democratized
world
CONSUMER MEANING MAKING
GROUP 8
PRATIK GODHANE (35A)
AKSHAY MODI (3C)
MAYANK BHAWSINGHKA (21C)
NEHA MISHRA (25C)
PADMAKUMAR R (27C)
PRANAV ARORA (30C)
To segment the population as a whole based on the meaning they ascribe to luxury brands
The paper aims to highlight some of the facets of luxury brands and then investigate customers
perception based on the extent of their association with these facets
The study also aims to form a detailed socio-economic and psychographic profile of the population in
terms of perception of luxury brands
It tries to extend the knowledge of luxury brands, on the backdrop of the phenomenon of
democratisation of luxury brands, given that the definition of luxury itself (something which is out of
ordinary) is losing meaning
The study and its findings are in sync with the notion that ascribing a particular product as a luxury
item is a state of mind
Luxury Brand
Meaning
Physical
Attributes
Premium Quality
Psychosocial
Attributes
Aesthetics
Psychosocial
Attributes
Exclusivity
Perception
Premium price and rarity
Exclusivity
Unique, special and stand out
Perception-
Building
Limited Production
Selective Distribution
High Prices
Perception
Fine pieces of craftsmanship
High performance and durability
Refined, elegant and sophisticated
Perception-
Building
High quality raw materials
Detailed workmanship
High precision
Excellent and
uniqueness
Creativity and
sensuality
Beauty and
classic value
Exclusivity
Relative
Importance
Attached
Affluent
people
Excluded
people
Excursionists
Access to
Luxury
Functional
Reward
Indulgence
Meaning of
Luxury
Elitists
Democrats
Distant
Attitude
Towards
Consumption
Materialists
Rational
Functionalists
Extravagant
Prestige
Seekers
Introvert
Hedonists
Luxury Value
Dimension
Expressive Impressive Mixed
Materialism

Success
Centrality
Happiness
Prestige Sensitivity
Individual Well-being
Self-esteem

Life Satisfaction

Positive effect
Negative effect

Luxury Consumption
Purchase Frequency

Experiential Luxury

Material Luxury

Masstige, or prestige for the
masses is an increasing reality
They are perceived to be premium
or luxury products, but at available
at price points that fill the gap
between mid-market and super
premium
One of the key reasons for the
democratisation of luxury has
been the fact that companies are
coming out with variants of their
products at attractive price points
to increase availability
Another driver of this
phenomenon is the increasing
sense of self-indulgence by the
youth
Luxury consumption is moving
beyond the metro cities to Tier-I
and Tier-II cities. Aurangabad
made news in 2010 for a mad rush
in purchase of luxury cars. E-
commerce is turning out to be an
important enabler in this regard
As foreign luxury labels look to tap
into the Indian market post the
increasing of FDI limit in single
brand retail to 100%, this flattening
of the luxury market shall
continue its uptrend
Mercedes, once considered the car of the elite, has lend itself to
democratization over the years
This phenomenon is manifested in various elements of the brand,
one of them being its own endeavor to cater to a bigger market
existing just above the price-range of the Fords, the Hyundais and
the Nissans
With cars such as Mercedes-Benz CLA, it has forayed into the
entry-premium car segment, thus diluting its luxury-quotient
Moreover, with a middle class whose disposable income has
grown over the years, luxury has become commonplace
Mercedes single largest order of 150 cars worth Rs. 65 crore
came from the small industrial town of Aurangabad in India
Credited with developing a market for premium
chocolates in India when none existed
It has piggybacked on Indians' fetish for
chocolates, especially for gifting purposes
Now trying to drive personal consumption
through smaller SKUs
Making itself available in kirana stores in addition
to modern trade has been a major flattener for
the brand
Promotion
Mainstream advertising channels such as TV and Radio not used; Print Ads
and Video Campaigns focus on exclusivity
The Rolex Sports Car Series and the Rolex 24 Hours at Daytona both attract
not only race fans but sports car owners who spend large amounts of money
to run vehicles in the series; also advertises during golf tournaments and
yachting events that attract patrons that can afford to purchase a Rolex
Rolex and Icons Video Campaign promotes famous wearers
High-achievers (Roger Federer, Tiger Woods, Jack Nicklaus) have been the
brand ambassadors, signifying that only the famous and influential wear this
brand
The image that is portrayed is that customers purchase Rolex as a statement
and as a reward for success; some often describe it as social currency
Distribution Unlike most manufacturers that try and obtain as many retail
outlets for products as possible, Rolex has decided to severely
limit the number of outlets that can be authorized to sell the
brand (It has just 6 retailers in New Delhi and 5 in Mumbai)
Authorized retailers are all required to be successful and high-end
jewelry stores
Locations of stores: upscale areas (Connaught Place, Saket, GK,
South Ex, Vasant Kunj and Janpath in Delhi; Colaba, Bandra, MG
Road in Mumbai)
No company outlet on the internet
Promotion The brand banks on opulent photographs in glossy
magazines; ads have a clear focus on travel; Releases
travel guides on a regular basis
Invitation-only spaces in stores; customer made-to-order
bags in exotic skins
Newest creation is Amble, a mobile app that lets users
follow celebrities' favorite city experiences or create their
own online journals with photos, videos, and notes
Promotes its collections through its Facebook page
through pictures and videos of various campaigns
Came out with first ever LV TV commercial in 2012, which
was a part of a campaign that also featured on social
media
Distribution
LV Bags offered through limited distribution
channels; first store opened in Oberoi Hotel in
2003, currently has 5 flagship stores all over India
Exclusive online retail store at
www.louisvuitton.com
The company has never given licenses to outside
firms to avoid brand digression
Tries to maintain the authentic, simple and
luxurious personality through its distribution
channels
Promotion
Very limited promotional activities
Choice of channel Print media
Focuses exclusively on aesthetics and
craftsmanship of products
Distribution
Lladro figurines are available only in company owned-
and-run outlets
Products are not sold online to maintain exclusivity
Each Lladro figurine is handcrafted to perfection and is
produced in limited numbers only to maintain
exclusivity
Les Clefs dOr
(The Golden Keys)
It is an international society of concierges that aims to improve and
maintain the quality of service provided by concierge staff in their hotels
and to ensure that this little-known profession is given the recognition it
deserves
The organization prides in its exceptional expertise in inside information,
intelligence and communication
The individuals of this organization operate only in world class hotels
across almost all major cities in the world
The concierges are well known for fulfilling every kind of requests made
by their guests
The organization is quite famous among its target group; hence, does not
need any form of advertisement
Despite being present on Facebook, they do not use it to promote
themselves
French Luxury brand, known by the name of its founder Roger
Vivier, who is credited with the design of the first stiletto heel in
1954
Exclusivity is the hallmark of the line, with many shoes made to
order, some with hand-embroidered gold thread
Known as the choice of celebrity clients all over the world
(Beatles, Ava Gardner etc.)
In India, it caters to a number of celebrity clients such as
SonamKapoor (wore it to Cannes 2012) and Nita Ambani
British manufacturer of luxury sports cars and grand tourers
It is known for fine, civilized high performance sports cars,
designed and produced by skilled craftsmen
It remains at the forefront of contemporary manufacturing, a
cultural force that embodies design and engineering excellence,
and a brand with a truly special heritage
Aston Martin commenced its presence in India with a dedicated
facility in Mumbai in partnership with Performance Cars (a division
of Infinity Cars Pvt. Ltd.), who had a strong reputation in the Indian
luxury car market for several years
Democratization: A luxury brand
loses its essence if it opts for
mass market rather than sticking
with its narrow band of
consumers
Consumer Profiling: The three segments of
consumers exhibit different behavioral characteristics
which luxury brands exploit for better appeal and
deep emotional connect
Consumer Segmentation: It is really important for a
brand to figure out its core consumers. The three
categories provided in the reading roughly covers all
possible types of consumers of luxury brands