Tran Huy Binh – 21431007

Table of Contents
Entry 1: Characteristics of luxury brands..................................................................................3
Part 1:...........................................................................................................................................3
Part 2:...........................................................................................................................................5
Entry 2: Luxury brand storytelling.............................................................................................5
Part 1:...........................................................................................................................................5
Part 2:...........................................................................................................................................8
Entry 3: Luxury brand challenge and opportunity..................................................................11
Part 1:.........................................................................................................................................11
Part 2:.........................................................................................................................................12
References.....................................................................................................................................14
Entry 1: Characteristics of luxury brands
Part 1:
In this report, let's skip these "stretch" or near-luxury luxury brands and awareness on pure
luxury brands and what units them apart from all others. Before we leap into the fascinating
global of luxury brands and their marketing, we should begin with the definition of luxurious.
Many top class manufacturers (and their customers and advocates) try to assert luxurious
emblem fame in an try to burnish their respective images.

Our current word "luxury" is derived from the Latin word luxury and means luxury, indulgence,
indulgence, sophistication and excess. As such, it has both positive and negative connotations.
Luxury is a concept whose interpretation is highly dependent on different feelings, senses, and
contexts: It can be enjoyable, rewarding, rewarding, soothing, and desirable by some, while Time
evokes confusion, inappropriate if not unfair thinking, and feelings of jealousy, anger, and
disgust in others. Accordingly, to be a luxury brand isn't a straightforward, all-proper element as
many may anticipate at the start glance. Real luxury brands are some thing that nobody sincerely
needs. They are nearly the world of goals and desires. True luxury brands may be identified for
his or her enormously excessive ranges of customization, personalization, and craftsmanship of
their services or products portfolio. But again, cash isn't always a sizable variable on this surely
luxurious purchase.

Real luxury brands care much less approximately critiques and comments from clients than
different manufacturers. Any brand of non-luxury products (together with high-end) is
continuously seeking out and performing on enter from their clients. Customer comments is in
reality critical facts and is taken into consideration through brand control to be crucial to brand
success for non-luxury brands. On the alternative hand, luxury brands are approximately
enacting and disseminating their vision; they care much less approximately what purchasers
think. That way, high-end manufacturers are honestly greater like high-end artists or artisans.
The “goal clients” of luxury brands are purchasers who appreciate, share, and purchase into the
brand’s vision (and, of course, can have enough money it comfortably purchase).

Luxury products and types may be prominent from the top rate phase through their constitutive
traits. The main traits may be taken into consideration as dimensions starting from a minimal
stage this is additionally important for non-luxurious manufacturers to a most stage that
corresponds to the very best shape of luxurious. As demonstrated in figure 1, premium
manufacturers fee better on those dimensions than medium-stage manufacturers, however
nonetheless nicely under luxurious manufacturers. While top rate manufacturers nonetheless
continue to be down-to-earth and can't lose sight of the value-for-cash ratio, luxurious
manufacturers are accomplishing incredibly affordable tiers withinside the main luxurious
dimensions, and a number of them even paintings on topping the contemporary pinnacle-of-
pinnacle luxurious stage. The differentiation among luxurious and top rate manufacturers is
especially a be counted of degree, which makes it hard to attract a clean line, specifically among
pinnacle top rate manufacturers and entry-stage luxurious manufacturers.

The large holding corporations had been bringing current advertising techniques to the luxury
market, increasing distribution and tasty in global brand photograph marketing and marketing to
develop income and share. Now, luxurious clients all around the international can go to
boutiques at or near domestic or even have interaction with their favored luxury brands online, as
opposed to journeying to the maisons like their grandparents did.

Luxury brands promulgate and proselytize a imaginative and prescient and raison d’être which
draws their goal or center clients. It is that this logo DNA that luxury brand managers
domesticate and nurture to maintain their manufacturers unique. The trick is to popularize the
brand imaginative and prescient and photograph with out saturating the marketplace with get
right of entry to to the product, as shortage is one of the advertising levers for forte and rate
stability.

However, there's additionally an critical distinction among those styles of manufacturers: whilst
top rate manufacturers consciousness specifically on purposeful traits, luxurious manufacturers
positioned a whole lot greater attempt into growing symbolic meaning.

Part 2:
For popular car brands like toyota or mazda, the cars sold are the same, have the same quality
and design, just different colors and of course the same price. If customers have a need for other
options, they almost have to look to outside car stores to have those options. But with Rolls
Royce, customers have many other options to integrate into their car, just need to spend more
money to be able to own a car of their own without having to have another similar car in the
world. As the CEO of Rolls Royce has stated, more than 90% of Rolls Royce vehicles are so
especially custom designed that it is taken into consideration a one-off. (In fact, the brand new
Cullinan SUV line changed into constructed absolutely from a single vehicle.) As the consumer
commenced a month-lengthy dedication to the diverse craftsmen at Rolls Royce to make certain
the proper leather-based trim changed into proper. Together along with your favorite coat or pets,
embroidery styles replicate numerous aspects. Heritage or of a dream and the star-studded LED
ceiling depicts the star constellations on the very day of the owner’s birth, these customers are, in
effect, expressing themselves. It is pure self-actualization.

Entry 2: Luxury brand storytelling

Part 1:
Storytelling for luxury brands is not anything new, however digital media has certainly made it a
critical a part of the advertising and marketing blend through which to interact current and ability
consumers. Storytelling is now a key a part of content material advertising and marketing for
luxury brands. The nature of conventional media has intended that luxury brands have now no
longer usually been loose to inform their tales on their very own terms, in spite of having loads
to provide withinside the space. But luxury content material advertising and marketing method
storytelling can shine throughout various structures and in various guises.
Luxury brands have to have a clean concept of what lies on the middle in their enterprise which
will win loyalty and hook up with their clients on a profound level. A luxurious brand's emblem
tale is greater than simply their records or a passage approximately the founders and is going
plenty similarly than internet site replica or an advertisement. Instead, it's miles the cohesive tale
that lies on the coronary heart of the emblem: the mixture of what it does, will do, the way it
does it, and why the posh emblem does it. As such, a emblem tale need to have an effect on each
issue of a enterprise, from the phrases used to inform its tale to its logo, internet site design,
hiring and speak to answering. It drives businesses, sends a clean, regular message, empowers
humans in one of a kind ways – and impacts what humans consider your emblem and why they
should buy.

By making it clear what a emblem stands for and wherein it's far going, its emblem can come to
be extra than only a collection of merchandise or services; it may inform a real and unique tale
that touches the coronary heart of a emblem's clients - and offers the emblem area to develop
even as final real to its vision. Like Louis Vuitton, who added an effortlessly stackable flat trunk
rapidly after the emblem turned into based withinside the 1850s, heralding a protracted affiliation
with leather-based crafting and comfort travel. nonetheless defines the emblem to this day.

Building a emblem tale is step one in growing a completely unique visible and verbal
identification for a emblem. From there, they have been capable of construct a completely unique
and recognizable emblem that stood out from the opposition and linked with clients through
reinforcing the tale over time.

The Opportunity

• 80% of all luxury income are encouraged in a few manner via way of means of what purchasers
noticed on line.

• Affluent purchasers are equipped to spend extra on luxurious manufacturers who inform a
compelling tale that clients can relate to.

• The patron buy adventure has developed from a linear funnel to a complicated adventure
throughout on line and offline touchpoints, giving manufacturers a couple of probabilities to
connect to their clients.
• Mobile is now the primary display for purchasers, prosperous Millennials and Generation Z in
particular, who've two times extra logo interactions with manufacturers on cell than through
every other channel.

The Problem

• Communicating compelling testimonies on line has grown exceptionally complex. Digital calls
for new storytelling formats and distribution channels.

• Crafting an attractive tale that resonates with cutting-edge prosperous clients even as closing
genuine to a luxurious brand’s traditions isn't anyt any clean task.

• Younger clients scroll via their social media feeds greater quick whilst on cell devices, making
it tough for luxurious manufacturers to seize and hold their attention.

• Affluent clients have better expectancies for the studies they have got with luxury brands on
their smartphones. Luxury brands regularly lack the technological savoir-faire to craft the proper
experience.

The Solution

• Luxury brands must craft a ideal content material method to offer a unbroken logo revel in
throughout all touchpoints. Luxury manufacturers have to tailor their content material to their
target target market and adapt their narrative to be able to offer a regular logo revel in.

• Luxury brands have to shift from crafting messages to developing stories that paintings
throughout each device, specifically mobile.

Other ways in which luxury brands are telling their stories include:

1. Collaborations

Collaborations, which had been previously omitted with the aid of using luxurious agencies
because of the threat of sharing the highlight and possibly diluting the brand's message and
status, are actually big commercial enterprise for luxurious brands (Bennett, 2022).
2. Influencer

Luxury brands are attractive to celebrities, with their clothes, bags, vehicles, and jewellery
proven on red carpets and at superstar hangouts. The new form of superstar influencer will an
increasing number of propose approximately luxurious businesses on webweb sites like
Instagram and TikTok. Brands are taking gain of this via way of means of operating with famend
and 'internet-famous' people as ambassadors - usually selecting some of distinct influencers to
goal distinct demographics (Bennett, 2022).

3. Gaming

The Covid-19 epidemic elevated client gaming time, which has best fueled the improvement and
fee of distinguished gamers, who've a following on social media and webweb sites like YouTube
and Twitch. According to YouGov's International Gaming Report 2021, extra than 40% of the
global adult population follows a social media influencer throughout quite a few hobbies, with
approximately 10% following a gaming influencer (rising to 17 percent among customers aged
18-34 and 23 percent among men aged 18-34) (Bennett, 2022).

4. Pop-ups/branded experiences

The sales agent remains in contact with them and maintains to ask them to those emblem events,
growing extra opportunities to sell after-income items. This isn't always a lot storytelling as it's
miles setting the client withinside the story for top class businesses (Bennett, 2022).

5. Podcasts

Podcasts are best for luxury brand storytelling due to the fact they're listened to while clients
need to be amused – while commuting, cleaning, or exercising – and in case your emblem can
fill that time, you turn out to be part of their life. Listeners will go back week after week for
brand spanking new episodes, absolutely immersed for your brand's narrative (Bennett, 2022).

Part 2:

Burberry is a great groundbreaking luxury brand that has leveraged its history to innovate. They
tell a new brand story — as a fashion, high-end and glamor brand that has become the epitome of
contemporary Britain (Echostories, 2017). Therefore, Burberry is a great example of the smart
and proper use of storytelling. Burberry focuses on their core unique strengths in product and
digital innovation and continues to expand the story of Burberry's British brand heritage
(Gordonching, 2016).

Storytelling with a clear objective and purpose naturally aids in the development of an emotional
attachment to a brand. A brand narrative that gives value to a potential customer is more likely to
be purchased (Granth,2020). Brand storytelling is a puzzle for all luxury brands. Making the
brand's story touch the hearts of target customers is very difficult. However, Burberry is one of
the few brands that can do that well, even their brand story becomes one of the factors that help
Burberry's sales grow again. Additionally, says Florine Eppe Beauloye, co-founder and editor-in-
chief of Luxe Digital: “Luxury brands often lack the technical engineering to create the right
experience. Burberry is an exception. The quintessentially British brand is a leader in the digital
world, constantly pushing the boundaries of business transformation" (Jingdaily,2020). Burberry,
which is always eager to lead rather than follow, is an early user of new technologies and
platforms — in addition to having a large social media following, the company was the first in
the world to embrace Snapchat's Snapcode function. Customers can have access to information
by scanning barcodes on their items. It was also the first company to have its own dedicated
Apple Music channel, with the goal of interacting with customers via the promotion of British
musical talent (Forbes,2017). The backing of digital technology helped tell the story. Burberry's
wide coverage, reaching a wide range of customers.

The luxury industry is all about the experience and emotions that helps the customer to connect
with the brand. Burberry has been working on creating media material for years and even has its
own YouTube account to prove it. Burberry develops their brand name through the use of
longer-layout video content material that allows customers to comprehend the history of the
brand and notice it as not just an outlet, but a tale in itself, with a personality and holding of a
value to enjoy on its own, from conducting tutorials to narrating their stories
(Luxuryabode,2020). Especially the real story about founder Thomas Burberry in the form of a
short film called: "The Tale of Thomas Burberry". This video gained great attention and raised
Burberry's brand awareness worldwide.

The new "Tale of Thomas Burberry" gives spectators an up-close look at the 160-year history of
Burberry, which was inspired by the founder's pioneering discoveries. This is a winning
combination for connecting consumers with the original brand narrative in a really inspirational
way by combining emotional and engaging movie-like cinematography, along with an all-star
cast and award-winning director. Burberry adopted a different approach, returning to a basic part
of "heritage" and demonstrating exactly what that meant to viewers. Many high-end luxury firms
place a premium on brand legacy, yet many fail to articulate their unique character in a
compelling narrative. It's critical to keep in mind that brands must "show, not tell." Burberry has
continued to collaborate with up-and-coming British artisans and artists in previous campaigns,
bringing this full circle. Consider the Maker's House experience or the Burberry Scarf Bar's
video introduction in 2015. Any brand can create story and film, but in order to have the same
effect, they must tell the story in their own distinct and creative voice, which represents the
ultimate expression of the brand's culture. The importance of these elements rests in their ability
to meticulously expose and illuminate nuances of the brand's story with strong emotional effect,
comparable to that of an Oscar-winning film. It helps to create the desired image and boost the
brand's prominence in our lives and society. Burberry's focus is on humanizing the founder's
origins, the historical significance of Gabardine, its place in British society, and the high-quality
craftsmanship that goes into its products (Gordonching, 2016).

The largest weakness Burberry has, is that the competition in the sector is very strong. The top
three companies control over 50% of the revenue and the top ten controlling just around 80%
(Deloitte,2017). These businesses have the ability to set the pace for the industry, which
Burberry will have to follow with its accessories and non-apparel products (Grin,2017).
Burberry's product line consists of apparel, beauty items, and accessories, which is limited in the
luxury and fashion category, although many other companies have expanded their product lines
to include home decor & furniture, personal grooming and segments (marketing91,2019).

Finally, with greatness comes same responsibility. Many brands who produce extraordinary
advertising and marketing campaigns should additionally stay as much as the excessive
expectancies of its campaigns and supply excellent client and product studies. Burberry isn't anyt
any exception. Without the latter, the “halo effect” that those campaigns produce will now no
longer gain the overall capability of its benefits.

Without a amazing product and supportive client enjoy, investments in logo evaporates quickly.
Many brands hype up their campaigns to handiest under-supply at the client and product enjoy
itself, and that is why we should consider that the client should usually be in our minds whilst
those studies are crafted (Gordonching, 2016). Burberry wishes to hold strengths including being
at the leading edge of virtual adoption of their strategies. They want to create greater particular
and private memories of the logo. Always preserving appropriate product quality, studies to
amplify Burberry's product traces to growth competitiveness and client satisfaction.

Entry 3: Luxury brand challenge and opportunity

Part 1:

In 2020, 63 percent of luxury industry professionals stated that company social responsibility
(CSR) became one of the maximum giant problems that the enterprise faced. Many respondents
(41 percent) diagnosed attracting younger customers as one of the maximum hard issues.
Customer courting management (CRM) became located last, with around 20% of luxury
professionals viewing it as a serious difficulty (Statista, 2020). Luxury brands will should
address worries related to company social responsibility, whether or not environmental or social
- it is withinside the zeitgeist. The essence of luxury is "being your pleasant self." Values and
cause are accordingly now no longer virtually nice-to-haves, however luxury necessities
(Connell, 2021).

Scarcity or limited accessibility, legacy, splendor and sophistication, excessive desirability, top
notch quality, excessive price, extraordinariness, and a excessive diploma of non-useful
connections are the maximum regularly cited key values of luxurious (Heine, 2012; Dubois &
Paternault, 1995). Hennings et al. (2015) empirically proven the primary drivers of purchaser
price notion that impact purchaser conduct withinside the luxurious industry – in phrases of
assisting to distinguish manufacturers and forming choice for luxurious manufacturers. These
are: financial, useful, social, and person purchaser perceptions. Among these, the perceived
social values of luxury brands had the maximum effective consequences in phrases in their
advantageous dating to the general assemble of individual luxury value perception (Hennings et
al., 2015). Luxury businesses promote unusual gadgets which can be for that reason resource-
dependent, growing their requirement for sustainability (Kale & ztürk, 2016). Because just a few
luxurious companies take a proactive role in sustainable development, Kapferer and Michaut-
Denizeaut (2014) stated sustainability withinside the luxurious enterprise as "sustainability
silence." This quarter is evidently privy to the problems however maintains silent, which a few
critics see as indifferent (Kapferer & Michaut-Denizeaut, 2014). Despite the "quiet," a radical
evaluation of luxurious corporations' sustainable behavior located that they're making a few
progress. But, for the maximum part, they nevertheless method CSR thru a combination of
unorganized charity, glitzy sponsorship schemes, and reputational danger management (Bendell
& Kleanthous, 2007). The luxury segment's understanding of CSR is some distance underneath
that of extra advanced industries (consider the food or automotive industries as examples), and
it's miles clean that except they end up extra engaged on this agenda, they may omit out on
possibilities to create extra fee thru CSR, permitting them to hook up with their clients on a
deeper level. There are times in which a company engages in movements to cope with the
aforementioned public worries with the aid of using controlling reputational dangers with out
conducting deeper strategic sustainability and CSR involvement. Gucci, for example, lately said
that it's going to in no way longer promote or produce whatever made with animal fur. They
agreed to public sale off fur items from their stock and provide the cash to animal rights
corporations inclusive of the Humane Society (in the United States) and LAV (in Italy). In
addition, the company has joined the International Fur Free Alliance (Trendwatching, 2018).
Gucci, the Italian style label, has publicly joined Calvin Klein, Giorgio Armani, and Ralph
Lauren in except fur from their designs. Yoox Net-a-Porter Group (Net-a-Porter, Mr Porter, The
Outnet, and Yoox) lately introduced that it's going to now not promote fur on its e-commerce
sites (Positive Luxury, 2017). However, some argue that the environmental impact of actual fur
vs synthetic fur is lesser for the reason that artificial plastic fur may be very damaging to the
environment, is not biodegradable, and has a extreme affect on animals because of the petroleum
and plastics used to create it (Positive Luxury, 2017).

Part 2:

First, do no harm, avoid greenwashing, avoid virtue s the brand, and apprehend what it way in
the context of sustainability and social responsibility. Starting with the brand purpose guarantees
that it is and feels actual to the brand. Identify social archetype — where position the brand
affects what you do, the way you have interaction and have interaction together along with your
customers, and the way you will stand out from the competition: every provides extensive
possibilities and capacity pitfalls. Know what resonates with your customers — however don’t
pander. There’s not anything worse than brands that chase each social cause: they dilute their
reason and voice and hazard turning off customers. Pick the causes — specially on the subject of
social justice and duty — in which you may make an impact, and discover considerate
approaches to create change — not just talk about it. Understand the version of affect — and act
accordingly. The Collective Work x Metric Centric social listening challenge suggests that
sustainability and social responsibility each has a distinct version of influence — what moves the
needle in phrases of opinion, in which that affect takes place, or even the type of content material
vital for it. Create roadmaps and plans primarily based totally on the ones models, and hold
listening as the arena of company social duty evolves.

Employees are sincerely on the center of agency success, each in phrases of agency enterprise in
popular and company social duty activities. That is why the organization need to adopt the poll,
giving people the danger to explicit their mind and perspectives approximately the epidemic,
how it's miles being dealt with as a enterprise, and the extensive problems confronting the posh
industry. Overall, 89 percent of them took element in the poll, and all of them praised what the
organization had executed together in handling the crisis, and they all indicated they're satisfied
to paintings for the company. This demonstrates the company's energy and capability to stand
extensive issues collectively once more.
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