An Introduction to Luxury Brands

Luxury brand management is about managing, and understanding the niche market and its functions. The word luxury defines a person’s buying capacity goes beyond basic needs and wants.

How to differentiate between Luxury and Regular brands?

When we look at Luxury brands they have higher price points and the supply and demand will be lesser than regular brands because the market and its target audience are limited. Similarly, the regular brands have lower price points and will mostly be made in bulk as the supply and demand are more as compared to luxury brands because the target audience is more.

Meaning of Target Audience

The target audience in simple words is the group of people who are targeted to buy goods and services on the basis of needs wants and buying capacity.

For reference here is an example:

Regular brands usually target students and middle-class families as per their needs as well as their spending or buying capabilities. Luxury brands would target premium customers like businessmen and film stars.

Human needs are classified into the following points mentioned below:

• Necessity: It means that a person has the exact amount of spending capacity which helps them to fulfill their day-to-day requirements like food, clothing, and medicines.
• Comfort: It means that a person has an earning above fulfilling their basic living and well-being which helps them to choose a comfortable lifestyle like Buying a car.
• Luxury: It means that a person has an earning that is not just fulfilling their necessities and comfort which is required for basic living and well-being like having a second home as a beach villa.

It is usually assumed that the goods and services with higher price points are always good in terms of quality.

The Theory of Luxury Brand Pyramid

The brand pyramid is basically a visual interpretation of various brands as per their product positioning in the market. It basically helps marketers to understand their target audience as well as identify the placement of the products in the market.

• Ultra Highend: The brands that come under ultra high end are Liviev and Graff.
• Super Premium: The brands that come under super-premium are Bottega, Panerai, and Patek Philippe.
• PremiumCore: The brands that come under premium core are Omega and Rolex.
• Accessible core: The brands that come under accessible core are Gucci, Prada, and Tissot.
• Affordable Luxury: The brands that come under affordable luxury are Coach and Tiffany Silver jewelry.
• Everyday Luxury: The brand that comes under everyday luxury is Swatch.

Today, there are college degrees that specialize in luxury brand management. An MBA in luxury brand management opens up a lot of job opportunities at major companies like Gucci, and Ralph Lauren.

The role of luxury brand managers is to see that sales policy is made properly and is in line with the company’s brand image and to onboard new clients.

Conclusion

To sum up, all the brands get their ranking or positioning done by marketers to understand and create a target audience on the basis of age, gender, and purchasing power. Accordingly, they can create a supply of goods and services for that set of buying audiences.