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8 P's -  Pillars of Luxury Brand Marketing

8 P’s – Pillars of Luxury Brand Marketing

Marketing has always played a pivotal role in the success and the failure of big/small brands. In this blog post I will focus on how traditional marketing is different from marketing and branding a premium luxury product like St. ERHARD.

In the last post I talked about a very crucial factor which can make or break a brand. It’s important for marketers and for organizations to send a right brand message across the consumers and to let them know why their company is doing what it’s doing. Especially when it comes to luxury brands, for which consumers are asked to pay a premium. This is always not only because the product is of high quality but also because of the offering having to incur high marketing and other logistical expenses. Brands like Apple, LVMH and as a matter of fact St. ERHARD charge a premium on the product offerings.

According to a report from brand channel, there are 8 P’s – pillars of Luxury Brand Marketing. First is indeed Performance. Brands offering luxury goods and services should focus on the delivery of a premium experience not just on a product level but also on the experience level. An individual who plans to buy a luxury product doesn’t just get himself a physical product but also the whole story and the experience behind the brand. Second is Pedigree, which like I mentioned above is the history which a brand carries with itself. This becomes the soul of the premium offering and also an integral part of the brand story. This tells the consumers why the brand exists in the market apart from earning profits and selling more. Third is Paucity. This means the scarcity of the product or a service offering in the market. Luxury brands try to maintain paucity in the market so that their brand doesn’t get diluted which in the end helps them to create a strong brand. Persona is the fourth and one of the most important P’s in the luxury brand marketing. It becomes a necessity for the brands to portray their image in the best possible manner. Here the brand’s personality, its mystique aura and its brand values create a huge impact on the brand creation. Advertising campaigns and other modes of communication help them build their brand persona. Fifth “P” is Public Figures. Celebrities or Public Figures play a very important role in building a brand. We see big brands fighting to get the most famous celebrity to endorse their brand in order to catch more attention of their target group. Sixth is Placement. Brands moving to the retail businesses make it very important for them to focus on their product placement in their physical stores. Product merchandising has become an important job role on the job websites when it comes to big brands which are into retail sales, mainly clothing and other similar brands. It starts from the store location to the touch-points where consumer can interact with the salesperson and so on. The whole idea is to provide them with a unique indulging experience. Public Relations is the seventh “P” of brand marketing. As luxury brands have to promote themselves extensively among the public to become the talk of the town, their stakeholder’s opinions which includes general public, other organizations and so on becomes very crucial for the brand image of the company. A successful and a sophisticated brand has to maintain the relations with public in the best possible manner and has to make the whole experience unique and simple. Last and a very crucial element is the pricing. Pricing plays a big role in how people perceive the luxury brand.  Therefore it’s important for the luxury brands to price their product offering right. Pricing the product low can lower the consumer’s willingness to buy as some consumers relate luxury brand with relatively high prices and pricing them high could not justify the value derived from the product.

We at St. ERHARD are focusing on bringing in all these aspects of building a sustainable premium beer brand. We aim to create value in every purchase made both at the company’s and the consumer’s end. We are sure sooner you all will be able to see us as one of the biggest German beer brands abroad.

Why we do what we do

Why we do what we do

People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe” said Simon Sinek, who is a renowned author and a motivational speaker. Big brands like Apple which charge a premium on their product and service offerings always believe in conveying the message of why they are doing what they are doing and what exactly they envision to do with their brand.

There is a difference between traditional marketing and marketing done for premium luxury goods. Luxury marketing takes a leap forward and works towards factors which a small, local and domestic brand ignores. It’s very crucial to keep it simple. Brands often run towards making things complex. This portrays directly in their marketing campaigns and in the ways they design their products and services. Companies tend to forget the power of simplicity which indirectly attracts consumers. The idea should not only be to present the product/service offering in the best possible manner but also to portray how they will making your life simpler and easier. Brand building is a long term process. In order to grow their sales digits companies often forget to focus on the idea behind the sales of their goods and services. This negatively affects their brand reputation. Brands like Apple, Chanel, LVMH and other luxury brands focus on creating value for the consumers by charging a premium amount. This is where marketing plays a pivotal role. After the emergence of social media, communication has become way easier than it was before. The only need is to spread the right message to the right target audience.

St. ERHARD being a flagship beer brand is also focusing on the story of why we sell what we sell. The idea is not to increase in the sales numbers in the first place but is to educate and spread the rich German beer culture abroad. Beer has always been a crucial part of the German culture. Our innovative design and premium quality brew makes us a strong brand in itself.  We want to make a difference with our existence by acting as a catalyst in spreading awareness about beer across the globe. We want all our stakeholders to act like our brand ambassador’s and to represent German beer culture in the best possible manner. It’s clear what we do and how we do it but this post was to present to why we do what we do.

St. ERHARD and Social Media

St. ERHARD and Social Media

Social media has now become one of the most crucial tools in building a brand. Many famous brands are often known to us because of their innovative ad campaigns. When a campaign goes viral it gets shared on social media platforms and reaches out to an even bigger audience. There are numerous platforms like Facebook, YouTube, Twitter, Pinterest, WordPress and so on for companies to attract and leave an impact on their target segment. The focus is not only on the website market but also on the app market as number of people who access internet via mobile phones increased by 60.3% to 818.4 million in last two years. Users are now connected on different devices (Phone, Notebooks, iPad, TV) simultaneously which makes it harder for a brand to track their users but in turn fosters brand visibility.

Different media like digital/print media are playing a pivotal role in making a brand successful. Social media is now embraced by more than one billion people all across the world with users coming from all different demographic environments. In a recent research it was found out that people falling between the age categories of 18 to 29 use/connect more to the social media networking websites which decreases with increasing age group people.

Search Engine Optimization (SEO), Pay Per Click, Google AdWords and many others, have changed the traditional pattern of doing businesses and have revolutionized the way sales are done. If we talk about numbers, as of the first quarter of 2013, Facebook passed 1.1 billion monthly users and now  has approximately 665 million daily user base. Twitter’s 288 million monthly active user accounts have seen 44% growth from June 2012 to March 2013. LinkedIn reached 200 million users which made it one of the biggest platforms for professional networking and YouTube had 1 billion unique monthly visitors. These numbers are constantly increasing every second with the emergence of different brands in the market and their constant urge to become big.

When we talk about St. ERHARD which is a high-end premium beverage brand, social media has always been our primary focus. We use it not only to increase the visibility and to build a strong brand but also as a tool to replicate the unique German beer culture through our online campaigns all across the world. With our main market being Asia, it’s crucial for us to portray the famous German beer culture along with the brand. The world of social media is endless. Having said that I will suggest: “Go drink some beer and socialize”.

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