Marketing Communications Assignment: Formal Business Report Including Marketing Communications Plan

Ralitsa Dimitrova DIM08228128 MA Strategic Fashion Marketing

Table of Contents:

1. Executive Summary

2. Strategic Audit: Current Brand Values Brand Positioning and Experience Customer Analysis Competitors Analysis

3. Brand Reincarnation: Ideal Positioning for the Asprey brand New Customer Base

4. SOSTAC: Situation Objectives Strategy Tactics Actions Control

5. Conclusion Appendix 1 Appendix 2

Executive Summary

The purpose of this report is to present an elaborative marketing communications strategy based on evaluation of a current company situation and strategic position. For that purpose a strategic audit was rst undertaken in order to understand the current brand values, positioning and the brand experience. An important part of the strategic audit are the customer analysis and the competitors analysis based on primary and secondary data research. Understanding a companys situation in terms of intangible and tangible assets, competitors environment and current customer base is vital before undertaking any change in brand direction and marketing communications. In this way mistakes in marketing strategy are avoided and the efciency of the marketing communication campaign is increased. What follows is a section called Brand Reincarnation that describes the change in marketing direction that the brand analyzed should make. The rational behind the suggested brand reincarnation is also explained. In this case the brand reincarnation process consists of a slight adjustment in the brand positioning and the targeting of an additional prospective customer base. After that a detailed marketing communication plan is presented using the SOSTAC planning system. Through the implementation of the proposed marketing communications campaign the brand should be able to achieve the desired positioning and reach the perspective customer without disregarding its current customer. The campaign should also increase awareness for the brand which is the main communications objective. The brand in question is the British high-end luxury brand Asprey. It was chosen for the analysis because it represents an interesting case of a brand that possess the internal capabilities and assets in terms of heritage, craftsmanship, exquisite service etc., required for being a successful luxury brand, but at the same time is unable to communicate itself in an desirable and aspirational way to the public. It is a brand that is stuck into its own ways while everything else-competition, customers, ways of communication, is changing. The presented here communication campaign strives to return Asprey to its former glory in an innovative and denite way.

Strategic Audit
Understanding the current strategy and situation of a company is a starting point for the development of a successful communications strategy. It is important for the management team to have a clear idea of the current brand values and positioning before taking decisions on the future marketing direction of the company (Corbellini & Saviolo, 2009). Current Brand Values: Currently the brand Asprey is associated with Britishness, classic aristocracy, nest craftsmanship, exclusivity and an elegant, understated stylistic identity. Its unique British heritage provides the brand with knowledge and expertise to offer customers a luxurious, customized product and service. Through a partnership with the British Academy of Film and Television Arts Asprey emphasizes its origins and celebrates excellence and expertise (www.asprey.com, 2009) which were and continue to be the core brand values forming the companys unique selling proposition. Brand Positioning and Experience: Brand positioning involves the placement of a brand and all its associations in a distinctive place in the mind of the consumer. Brand positioning is what drives consumer choices through comparisons. If consumers have a clear understanding and perception of a brand, then they are likely to place the brand in the right position in their minds and this will form a part of their selection process (Okonkwo, 2007: 117). Successful brands represent a point of view, and their positioning reinforces that (Chernatony, 2006). There exist two levels of positioning: a Broad Level which is about anchoring a brand to a category so a consumer has a reference point, and a Narrow Level which involves specic brand positioning that is attributed to each brand (Okonkwo, 2007; Chernatony, 2006). Aspreys Broad Level of Positioning Asprey shares the broad attributes of luxury and as such is positioned as a high-end luxury brand. According to Saviolo and Corbellini (2009) luxury brand can be described as coherent systems of excellence. Regardless of the product categories luxury brands have a certain distinguishing traits, all of which they share (Corbellini&Saviolo, 2009) illustrated in the gure below:

The Luxury Brand Experience

High price Innovation and creativity Imaginary and storytelling

Selective distribution

Luxury Brand Experience

Tradition and heritage

Superior service Exclusive communication

Superior quality

Asprey possesses all the traditional characteristics of a luxury brand according to this model- high price, superior quality, superior service, selective distribution, tradition and heritage. However the brand lacks association with a powerful imaginary that can make it desirable and exiting- the so-called dream factor (Saviolo&Corbellini, 2009). It also lacks originality associated with creativity and innovation: as Saviolo and Corbellini (2009) point out a luxury brand sets its own bar and does not follow fashion or consumer demand, instead the brand challenges its customers, their knowledge, taste, and discernment and creates virtually authoritarian culture. In its communication strategy Asprey should focus on innovation and creation of a dream factor that can be based on a celebrated creator, mysterious production process, secret formulas or other elements that all represent legends creating an aura of mystery and respect for the luxury brand (Saviolo&Corbellini, 2009). Aspreys Narrow Level of Positioning Aspreys unique positioning among the luxury goods segment is based on its royal heritage, nest quality, craftsmanship and expertise. Although customers recognize its quality of products and admire its ne jewelry, many nd it hard to distinguish Asprey among competitors and to describe what Asprey stand for. This is a result of an unclear brand positioning, various categories and the lack of aspirational draw. Hence, the customers lack to recognize the contribution that the Asprey brand would make in their lives. As Saviolo and Corbellini (2009) argue, branded goods are distinguished from unbranded goods by their intrinsic and symbolic value and therefore command a premium

price. The intrinsic value is tangible and is associated with product attributes(performance, durability, workmanship etc.) and the symbolic one is intangible and associated with the social distinction or the emotional value the brand is able to communicate (Saviolo & Corbellini, 2009). In the luxury goods sector where products by defniton should have the highest possible quality and craftsmanship, the symbolic value is the one that predominately drives customers buying decision nowadays. For example Armanis clothes are made from the best materials and have a very rened look but they would just be nice clothes if the brand Armani didnt create a story along with layers of memories and emotions behind these products (Corbellini & Saviolo, 2009, pp. 155). It is identity that gives a brand that particular powerful feeling of uniqueness, timelessness and the necessary authenticity that helps give an impression of appearance (Kapferer and Bastien, 2009: 62). Strong brand identity and image help the business add value to the customer and for shareholders and over time create brand equity. Keller (1993) and Krishnan (1996) talk about a model of brand image that is based on rst establishing strong brand knowledge base. Keller uses a multi- step approach to develop the brand knowledge model (see the picture below) with two main elements- brand awareness and image. Developing Brand Equity Recognition (strong exposure) Awareness Brand Equity Brand Knowledge Image Recall (strong associations) Associations (favorable, unique)

It is visible from the model that in order to create brand equity in the future Asprey should rst establish brand awareness by focusing in its communications strategy on creating recognition and recall for its brand name. It should develop a strong brand image that evokes favorable associations in consumers minds and this brand image should be based on symbolic, intangible factors rather than product intrinsic, tangible factors. Moreover, emotional brands are most successful in extending their product offering to respond to their customers aspirations: when you identify emotionally with a brand, you will be more likely to buy varied products from it, even if your emotional connection was rst forged around a specic product line (Gobe, 2001:143).

The importance of the emotional bound between the brand and a customer is driven also by the progressive shift of consumer interest and spending toward luxurious experiences rather than luxurious products (Corbellini &Saviolo, 2009). As services, like goods before them, increasingly become commoditized- experiences have emerged as the next step in what is called the progression of economic value (Pine and Gilmore, 1998;97). With the rise of the experience economy rises the role of the store as a communication tool as the store represents the place where different brand manifestations converge to give the most complete brand experience a customer can get. It offers also a multi- sensory experience where the products, music, odors, decoration, light, logo and advertising materials are physically accessible (Chevalier and Mazzalovo, 2008:345). After observation in the agship Asprey store at Bond Street, London the following conclusions on the current Asprey brand experience can be made (based on Gobe, 2001): Asprey Brand Experience Visuals Distinctive color: royal purple; no impact from window displays: banal, predictable, product display lack an emotional connection; architecture: distinctive, combining modern and classic; store setting: warm, inviting, cozy, royal certications are hidden No distinctive scent except in the fragrance room At times inconsistent with brand image: jazz vs. disco Customers are encouraged to experience and touch products; suitable for brand image:velvet in royal purple At Asprey every person who walks through the door is a customer; sales personnel are friendly, respectful,welcoming and acknowledge each customer without being invasive, possess good knowledge of the product and know regular customers names The website (www.asprey.com) lacks to communicate the store experience provided by the Asprey store: it doesnt emphasize customization or personalized customer service; no emotional connection, not coherent and not communicating brand image and heritage; not telling any story.

Scent Sound Touch Service

Online Experience (website)

The observation results show that Asprey is missing two very important aspects of the total brand experience communicated through scent and website. It also doesnt take full advantage of its large store windows which can be used in a creative and innovative way to communicate brand imaginary. As Schmitt and Simonson (1997) write smell is the most powerful of the senses : the differentiability of smell, the strong memory for smell and the ability to create strong associations all make smell an ideal tool for enhancing corporate or

brand identity. Beautiful window displays are a hallmark of the luxury industry (Chevalier and Mazzalovo, 2008). Windows are part of street advertising and if used well have the same function for a brands exposure as a billboard or a poster (Chevaler and Mazzalovo, 2008). The online brand experience on the other hand is of a huge importance for each fashion or luxury brand nowadays and should not be underestimated. The impact of the web in peoples lives is enormous and while the power of traditional media is waning, Internet advertising is expected to become more and more important in the future (Corbellini and Saviolo, 2009). Furthermore, as Corbellini and Saviolo (2009) point out, in order to reinforce the overall brand identity, traditional and digital media have to be combined. Customer Analysis: What follows is a customer analysis based on observation at the Asprey agship store located on Bond Street, London and short interviews with Asprey customers (see appendix 1 for observation sheet and observation data). The observation and short interviews were done from Monday to Saturday and were carried out in two-hour sessions by two examiners. The total observation time is 16 hours as a total of 57 people were observed. The short interviews lasted on average 5 minutes each as a total of 21 short interviews were conducted. The data collected was then processed and analyzed in order to identify demographic, psychographic and behavioral characteristics of the current Asprey customer. Demographic data can provide interesting insight into lifestyle differences between segments (Engel et al, 1994). In the psychographic approach to reaching segments, consumers are differentiated on the basis of differences in patterns by which people live and spend time and money (Engel et al, 1994). In the behavioral method buyers are differentiated on the basis of their knowledge and attitude towards a product or its attributes, and of their response to and use of the product (Engel et al, 1994). The results from the Asprey customer segmentation analysis are summarized in the table below. The major segmentation variables and their typical breakdown (Kotler, 1991) are combined with Acorn classication (www.caci.co.uk/acorn) in order to form the demographic prole. The psychographic prole is based on VALS categorization (Mitchel, 1978) and Warners Index of Status Characteristics (Burnett, 1993) as well as on a recent study of the luxury customer conducted for Alta Gamma Association.

Demographic

Villages with Wealthy Commuters (based on Acorn Classication) Age: 40 to 60 years old Sex: women and men Household Structure: 2 non-pensioner adults Family Life cycle: married couple, with children over 18 living on their own but still economically dependent Income: combined 50000+ per month Credit Card Limit: 5000+ Occupation: higher managerial/professional occupation, housewives Working status: full time or self employed Education: college graduate Religion: protestant Race: caucasian Nationality: British Car Ownership: 3 cars Social Class: Upper uppers (Burnett, 1993) Lifestyle: Inconspicuous (according to research for Alta Gamma Association) they value uniqueness, materialism, status and pleasure expect high levels of craftsmanship interested in product categories such as jewelry, watches, bags and furniture Thinkers (according to VALS (Mitchel, 1978)) they are motivated by ideals mature, satised, comfortable and reective people who value order, knowledge and resposibility tend to be well educated and actively seek out information in the decision making process well informed about world and national issues moderate respect towards status quo institutions and authority but open to new ideas high incomes but conservative and practical Personality: conservative, casual, simple look, elegant, good manners Interests: music (classical, opera), ne arts and antiques, National Trust, Snow skiing Shopping: wine buyers Holidays: winter snow and winter sun Use of internet: to buy/research cars and make holiday bookings Occasions: special occasions Benets: quality, customer service User status: regular user Loyalty status: medium Readiness stage: interested Attitude toward product: positive Buyer: women and men User: mostly women Shopping habit: most of the people that enter the store are couples

Psychographic

Behavioural

In conclusion, Asprey current customer can be categorized as Old Money (Ziccardi, 2001). This is the traditional category of those who have inherited their wealth and who manage a business that they have inherited or who have a standard of living that is not related to their salary. They belong to the Upper-upper class which means that they are

part of prominent families with at least second or triad generation wealth. according to Kapferer and Bastien (1991) categorization of luxury customers, Asprey ts the category of Internalized luxury: comprising the search for an authentic experience, almost an art of living, exclusive and therefore distinguishing you from others through a discreet elitism. Competitors analysis: A successful positioning differentiates the rm from its competitors providing it with unique competitive advantage and its uniqueness is tied to the rms ability to offer a specic segment of customers a particular set of benets (Saviolo& Testa, 2002). Since competitive advantage is a relative concept, a company that has a poor understanding of its competitors can have no understanding of itself (Hooley et al, 2003). That is why competitors analysis is vital for the success of each company strategy. In what follows analysis of the competitive environment in which Asprey operates will be undertaken. The logic of the analysis is presented in the scheme below. Strategic Groups in the Global Luxury Goods Retailing Jewelry/Watches Specialists Segment: Positioning Maps Analysis of the 3 main competitors (according to Lehman&Winer(1991)

The concept of strategic groups is used in order to identify the organizations within the luxury goods sector that have similar strategic characteristics, follow similar strategies or compete on similar bases (McGee et al, 1986). The following graphical illustration gives an idea of the way the luxury goods sector is segmented in terms of price and distribution level. Price Asprey Cartier Chopard Boucheron Bulgari Tiffani & Co De Beers Hermes Dior Fashion/Leather Specialists Chanel LVMH Gucci Perfumes/Cosmetics Specialists Dior Perfumes Shiseido Clarins Estee Lauder Jewelry/Watches Specialists

Valentino Prada

Giorgio Armani

Selective distribution

Extended Distribution

Three strategic groups can be distinguished: 1) Perfumes/Cosmetics Specialists: this is the so-called accessible luxury that almost everyone can afford. Distribution is extensive and price is low to medium. The incumbents from this strategic group specialize in high quality beauty products and use mass marketing to advertise their product offer. Nowadays barriers to entry of this strategic group are lower to the benet of the players from the other two strategic groups which use the strength of their brand names and introduce perfumes and cosmetics to enter the accessible luxury segment and compete with the specialists brands. 2) Fashion/Leather Specialists: this group includes the lifestyle luxury players. Here the incumbents success depends on distinctive style, restricted distribution, selective communication and strong brand name based on a unique designer personality or rich heritage. Prices are relatively high and usually product range is extended to many different categories- clothing, bags, shoes, home wear etc. An important communication tool for these players is the participation in an annual fashion show. 3) Jewelry/Watches Specialists: in this strategic group are positioned competitors that offer the so-called extra luxury-unique pieces and luxury experience, exclusive rare materials, made-to measure services and the highest level of craftsmanship. Prices are very high and the distribution is even more restricted. Marketing communications are also very selective, mainly CRM is used. Some of the brands positioned here have extended their product range to high quality leather accessories and perfumes but their core competence remains within the jewelry/watches production. Asprey is part of this strategic group because although it has a quite extended product range, its internal characteristics such as company history,culture of craftsmanship and made-to-measure services and the way they are marketed and distributed correspond to those of the jewelry/watches specialists. In order to narrow the analysis it is convenient that one focuses on the particular strategic group of the jewelry/watches specialists. The rst positioning map shows the way the main competitors are situated in terms of their internal capability for product customization and the size of their product range. One must agree that Asprey occupies a very good competitive position since not many jewelry/watches specialists can offer such a wide product range most of which is fully customizable (refer to the graph below). Aspreys internal capabilities form a great part of its competitive advantage.

Customization

Narrow Product Range

Wide Product Range

Standardization

The second positioning map gives an idea of how the competitors are positioned in consumers minds- as associated predominately with tangible benets(product quality, materials, product durability etc.) or intangible values (love, friendship, sensuality, femininity etc.) versus brand awareness. This positioning map relates largely to how the brand is communicated to the public. It is evident that despite Aspreys competitive internal capabilities(as illustrated on the previous map), the brand name suffers from low awareness relatively to the rest of the incumbents. Moreover, while most of the competitors in the segment communicate their brands through emotional and intangible values and try to make them aspirational, Aspreys brand name is associated only with tangible benets which implies that solely customers with rational purchase motivations are attracted. However, nowadays selling the best product is not enough, especially in the luxury goods market where the exceptional quality of materials and craftsmanship is a characteristic of all existing players. Thats why in order to differentiate from competitors a brand needs to offer something more- it should establish an emotional connection with the client based on intangible assets that are not imitable. As pointed out by Webb (2007) communications are increasingly focused on developing brand values rather than selling products. It is also worth mentioning that the competitors with larger product range are

usually those whose brands are communicated through intangible values. The logic being that since their core competence is in jewelry and watches, the only way to sustain other product categories and make people buy them is to make the brand aspirational.

Intangible/Emotional Association

Low Awareness

High Awareness

Tangible Associations

The next step in the competitors analysis is identication and assessment of the three main Aspreys competitors according to Lehmann and Winer (1991) model. The model aims at assessing competitors current objectives, current strategies, resource prole and log term strategy. For the purpose of the analysis data from both secondary (websites, articles, corporate reports etc.) and primary research (observation) was collected and conclusions were drawn for each assessment category on the basis of the following indicators (Lehman & Winer, 1991): 1) Key indicators of current objectives: stated goals, ownership, investment priorities, market assumptions 2) Key indicators of current strategies: advertising and media messages, new product introductions, distribution channels used

3) Key indicators of resource prole: promotional expenditure, nancial resources, marketing assets, production capabilities 4) Key indicators of long-term strategy: past strategies, past and current reactions, past successes and failures The results are summarized in the table below. Overview of the Three main Competitors
Bulgari Current Objectives increase efficiency and decrease expenses(in view of the current economic climate) increase traffic and stimulate interest preserve the image of the brand by avoiding price reductions and not engaging in trade overload use charity as a new motivation for buying jewelry mix precious and non precious materials to create statement watches with an impact target a younger more impulsive purchased through fragrances develop leather accessories for longer daily utilization focus on CRM and POP marketing foster brand image through fine vintage jewelry exhibitions move from a product specific campaign to a brand campaign to benefit all categories Four main assets: strong brand articulated product portfolio:diversified product offer and price range but only including categories in which the quality of materials is a key international retail network motivated management team (family members) Cartier target the new rich in developing markets but at the same time maintain its image and exclusivity for its existing customers increase presence in China focus on watches- claimed to be the new it category Boucheron reinforce the brand image capitalizing on creative spirit become the ultimate French luxury jewelry house in China grow watches and sunglasses categories create a luxury online experience that truly translates the brand leverage on the signature design: nature and animal symbols (ex: iGoogle Boucheron page design, collaboration with Vertu for the creation of Boucheron phones) emphasize heritage, sensuality and femininity in design and marketing develop both fine jewelry (price around 50 000$) and costume jewelry (price around 5000$) employ a Radical approach about fun (according to CEO Jean-Christoph Bedos) organize events with bloggers distinctive design well communicated country-of-origin part of Gucci Group: financial and managerial support

Current Strategies

engage in charity initiatives (ex: Women Initiative award) promote brand image through association with Contemporary Art (Cartier Foundation for Contemporary Art) celebrities endorsement and involvement in charity initiatives (Rosario Dawson, Rachel Weisz, Kirsten Dunst) CRM (ex: Cartier Club) translate the Cartier luxury experience in a web context (My Space Love Cartier Page, Cartier online magazine) reduce the number of retail outlets in US and Europe strong brand name and well communicated heritage part of Richemont Group: access to financial support and managerial expertise in luxury jewelry and watches well diversified product portfolio targeted at both younger and older customer base

Resource Profile

Bulgari Long Term Objectives gain market share improve competitive position take advantage of opportunities now in order to profit when the market stabilizes

Cartier attract younger customer sales penetrate new markets realize the brand potential to its fullest

Boucheron become leader in developing markets (ex;China, Dubai) attract younger customers

As a result of the analysis several common trends can be identied: focus on attracting younger customer base focus on developing markets, in particular Asia, China understanding of the advantages of the internet as a marketing tool understanding of the importance of intangible value for brand building engagement in charity initiatives- a new purchasing motivation for luxury customers emphasis on watches- seen as the new it category.

Brand Reincarnation
Luxury brand management is a balancing act: keeping with traditions, breaking from them, balancing old and new, nurturing the roots of tradition and know how but at the same time staying fresh, relevant and contemporary (Corbellini&Saviolo, 2009). According to Corbellini and Saviolo (2009) keeping the dream alive is the key success factor in this industry. The difference between brands that are successful for generations and all the others lies in their approach to the future. Brands that wont last are happy with the existing product, while great brands are never happy with here and now and constantly seek new improvements in order to satisfy a changing and increasingly sophisticated consumer base (Corbellini&Saviolo, 2009,pp.161). These brands create the future with a solid grounding in their past. Ideal Positioning for the Asprey brand: In positioning Asprey, the brand must become synonymous with British luxury. By focusing on its legacy and traditions to strengthen it core jewelry product Asprey becomes Britains jewelry brand. Furthermore, in positing Asprey among the leading luxury players, like Cartier, Bulgari and Bocheron, Aspreys competitive advantage lies in its prestigious British royal heritage. Enabling Asprey to advertise itself not as luxury brand but a prestigious supplier of the ultimate of luxuries- t for royalty. To do this, Asprey needs to establish an emotional connection with the consumer through a brand that is associated with passion, mystery, power and sensuality through an inimitable style.

In short, Asprey will become the ultimate British jeweler by focusing on an updated image of the brand that encompasses passion, mystery, power and sensuality through an inimitable style that revitalizes the brand for consumers today. In order to achieve that, an effective story about the Asprey brand should be developed and communicated to the public. As Corbellini and Saviolo (2009) write storytelling is an integral part of modern branding- a strategic tool for communicating brand values. If a brand is willing to be more than just a list of adjectives and wants to achieve depth and realism, the brand needs to have come from somewhere and be going somewhere (Corbellini&Saviolo, 2009). Furthermore, companies build their brands through stories that explain to the customer the buying and using experience- storytelling is also about educating about the product and its quality. In successful storytelling history plays a vital role. Many companies, as Asprey, have a long history. However, history becomes heritage only when the company is able to create a charming story around it (Corbellini&Saviolo, 2009). According to Saviolo and Corbellini (2009) heritage is made of four components: place (ex: London, England for Asprey); people (founder, the family, designer etc.); the brand legend (the story told as legend: the artof travel for Vuitton, Feraragamo as shoemaker of the stars,ex: Asprey and its long history of serving the British Royal family); the products in terms of iconic products (the trench for Burberry, the Kelly for Hermes,ex: the Asprey diamond cut for Asprey). Competitors can imitate a brand or its products but cannot imitate its heritage. Thats why Asprey should better exploit its heritage in its communication in order to make it better known and create a reference in consumers minds that immediately connects the name Asprey to British royalty and the luxurious lifestyle of traditional aristocrats. Emotional associations such as passion, mystery, power and sensuality logically follow. As Corbellini and Saviolo (2009) point out passion in luxury is a requirement because we are working with beauty, excellence in craftsmanship, history and culture. Passion must be authentic and transmitted to the customer, along with pride in the brand represented. In historic luxury brands the search for excellence, ethics and passion are ever-present- they constitute the value dimension that shapes also the service policy (Corbellini & Saviolo, 2009). The positioning map below shows the current and the new intended Asprey brand positioning in consumers minds according to whether it is associated with celebrity lifestyle or aristocratic lifestyle and whether is transmits emotional or rational values. It is evident from the positioning map that the Asprey brand currently has an unclear positioning according to the celebrity vs. royalty dimension and lacks emotional added value to its offering. These two aspects should be the focus of the future communications campaign.

Emotional

Empty Spot !

Celebrity

Royalty

Rational

Brands are dynamic offerings. They have to evolve to reect the changing demands of customers as they gain more experience, as well as continually maintaining a position of strength against ever-changing competition (Chernatony, 2006). New Customer Base: In order to become one of the powerful luxury brands and remain relevant in the future, Asprey should attract a new customer base composed of younger consumers. As previously shown in the Strategic audit section the current Asprey customers are afuent men and women in the age range of 40 to 60 years. This customer segment is usually loyal towards favorite brands but is aging and its numbers are constantly decreasing. In order to ensure protability for the future Asprey should target younger wealthy customers as well. Without disregarding its current customers, the brand should focus its marketing communications campaign on attracting a group of people with a different customer prole. The characteristics of this new customer prole are summarized in the table below as demographic and psychographic analysis is made similarly to the analysis of the current customers presented before.

Demographic

Age: 30 to 40 years old Sex: women and men Household structure: 1 or2 non-pensioner adults Family Life cycle: single or newly weds Income: 20000+ per month (xed plus other income) Credit card limit: 5000+ Occupation: middle managerial/professional occupation Working status: full time working Education: college graduate Religion: protestant Race: caucasian Nationality: British Car ownership: 2 cars

Psychographic Social class: Uppers (Burnett, 1993)

Lifestyle: Meaning Seekers (according to research for Alata Gamma Association) They value time, freedom, space, meaningful experiences, hedonic, selfidentity. They seek detailed information about products such as their origins, ingredients and their manufacturing, updated on scientic research concerning health and the environment, make choices that reect their convictions, live the dream. Innovators (according to VALS (Mitchel, 1978)) Innovators are successful, sophisticated, take-charge people with high self-esteem. They have such abundant resources. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reect cultivated tastes for upscale, niche products and services. Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reect a cultivated taste for the ner things in life. Personality: personal sense of style, elegant, good manners, condent, sociable, cultured Interests: jazz music, ne arts, theatre, snow skiing, dinning out, charity, private parties, networking Shopping: wine buyer Holidays: mostly winter snow, but also winter sun Use of Internet: to research interests and buy online.

SOSTAC There are many different approaches to building a marketing communications plan but one of the most frequently used is the so-called SOSTAC which stand for Situation analysis, Objectives, Strategy, Tactics, Action and Control (Smith & Taylor, 2004). What follows is a detailed outline of a marketing communications plan for the Asprey brand formed using the SOSTAC structure. Situation: As a form of situation analysis was already presented in the Strategic audit section, here the focus will be on Aspreys current nancial performance and the performance of its newly introduced website. The Asprey brand is distributed through mono-brand outlets in the UK (London, Berkshire), USA (New York, Miami, Honululu, Berevly Hills), Switzerland (St. Moritz), Japan (Tokyo, Osaka, Nagoya), UAE (Dubai) and Malaysia (Kuala Lampur). The most important of which is the London Bond Street store because it generates 70-80% of the sale volume. However the latest Asprey turnover (31/03/2008) is 17,175 th GBP and is decreasing since 2004 (Fame report). The prot margin (31/03/2008) is -39,41% and it is worst than in 2007. As for the new informative website launched in November 2008 the results show a disappointing performance as well. The following graphs from www.alexa.com (accessed 16/03/2009) show the performance of www.asprey.com relatively to the three main competitors websites in terms of daily page views, daily reach and daily trafc.

As it is visible from the graphs Aspreys website performance is much worse than that of its main competitors with the exception of www.boucheron.com. This is mainly due to the fact that the website fails to communicate the brand story and lacks images that evoke emotional values- it simply presents the product in a catalogue style format. People that visit the Asprey website (see picture below for breakdown by country) are not engaged in the brand experience and not motivated to frequent the website.

If Asprey continues to do not take advantage of the possibilities that the Internet offers for brand image enhancement, its brand awareness will continue to be lower than the one of competitors and this will continue affecting prots. As Corbellini and Saviolo (2009) write fashion websites and communities, fashion and luxury portals and social networks are profoundly changing the language of communication which has to be more and more interactive, made-to-measure, informative and inclusive. Overall the strategic audit and situation analysis point out to the following issues that must be addressed by Asprey: Lack of clear positioning; Lack of brand awareness; Brand values are not successfully communicated; Incoherent brand communications lacking innovation in terms of message and channels used; Target is very narrow and aging. Objectives: 1. Marketing Objectives Increase sales of Bond street Asprey store by 10 per cent over the next 12 months Increase the existing customer base by 25 per cent over the next 12 months by targeting a younger Asprey target market.

2. Communications Objectives Increase Asprey brand awareness by 50 per cent over the next 12 months among 40 to 60 year old, upper upper class women and men (current customer prole). Generate Asprey brand awareness of 25 per cent over the next 12 months among 30 to 40 year old, up and coming professional women and men (prospect customer prole). To revitalize Asprey image from an old, monotonous brand that only focus on quality to an up-to date aspirational luxury brand enhancing its British aristocratic heritage by developing an emotional connection with the current and prospect customers. Strategy: The aim of the whole campaign will be to integrate all communication tools through one powerful concept creating a memorable brand experience and at the same time generating word of mouth as well as brand awareness. The strategy consists of two stages. Stage one aims to raise brand awareness and create brand experience. Stage two, aims to increase top of mind. Phase one Firstly the story around the brand should be created. To do that we are rst launching a viral short movie of 5 minutes that will enhance the brand values and the emotional associations mentioned earlier. The viral will have two purposes, rst, to make the brand known, second to start a competition. The idea is that the story takes place in London, and it would be a sort of Sherlock Holmes mystery that needs to be solved. It would be about a stolen one-of-a kind diamond ring worth a million dollars. The price of solving the mystery is that the winner gets the diamond ring and the same amount of money that the ring is worth, will be donated to a charity organization chosen by the winner. The strategy around the idea is to get a lot of press releases and free press that will generate a lot of word of mouth and brand awareness, and also make the brand aspirational. Will begin with a wide range of media coverage to reach the masses and put Asprey on the map and then gradually the media used will become very targeted only to reach Asprey target market. The viral will be done with a famous and iconic British director to emphasize the Britishness of Asprey. The main characters will be very attractive and good looking models that t Asprey identity but they wont be famous in order to do not overshadow the brand. The purpose of this video is both to advertise Asprey modern image and launch the beginning of the Asprey mystery game. The viral will be emailed to all clientele, press, and uploaded to selective websites (www.asmallworld.com , fashion luxury blogs, www.linkedin.com ). To support Asprey viral

campaign a mini website will be created, it will be divided into 2 parts (Public and Private). The public one will be for the masses and the private one will serve as a network site where the competition will be held. Moreover, Asprey London agship store will also be used as a communication tool where the window display will project clips of product placement found within the lm. Afterwards, approximately 40.000 people will receive an invitation by post for the competition with a personal unique password and the rst clue. The participants will consist of all (USA, UK, UAE, Japan) Asprey database clients, as well as a selected few from a purchased database. The purchased database will be composed of Asprey new target market described above. The invitation password will allow access to Aspreys private competition site. The rest of the competition will take place via the Internet and on Aspreys networking site. Thus, the dynamic of the game has the following logic: after receiving the direct mail invitation, and guring out the rst clue, the participant logs into the Microsite with his personal password; he has two weeks to submit his answer and has only one chance to submit the right one- if he fails, he is out of the competition, if he succeeds, he gets the second clue through the Microsite and so on and so forth, until the nal sixth clue. The person that submits the last answer correctly rst, is the winner. Lastly, this competition will be supported by various events that resemble or continue playing on the theme of the short lm. The purpose of these events is to draw the consumer further into the lms mysterious plot. Some events will take place in spaces where the lm was recorded to have them experience rst hand the mystery thats unfolding. The nale of the competition will conclude with a ball at the mansion where the lm is mainly shoot. A prize will be awarded and the charity organization of choice will be revealed. Phase two After the competition is over the second stage will consist of both mass media coverage and targeted customer events. To remain relevant and associated with the luxury jewelry sector Asprey will begin to advertise in the most prestigious and inuential fashion magazine Vogue with an important presence (two sheets at the beginning of the magazine) for the following. This ensures the brands buzz and aims to retain the aspirational draw generated by the rst stage of the communication strategy. Our target customer will be addressed with private events beginning with Aspreys annual Christmas Party. Which will be a Christmas party for VIP clients in London where they will get to wear Asprey Jewels during the evening. Another winter event will be held at Saint Moritz.

 Tactics: The tables below presents a detailed description of the initiatives undertaken during the marketing communications campaign of Phase 1 and Phase 2 respectively. Phase 1 Asprey Website
Make it warmer, more emotional (not so rational) by incorporating images showing the story and lifestyle of the brand Have an appealing intro Update by making it more animated The aesthetic should emphasize the British heritage Contextualize product presentation (photography) Include campaign photographs from December onwards Emphasize the customization service Production Time: April and May Running Time: From June on Budget: US$ 80,000

Campaign Microsite

Mysterious Animated Experiential Music Interactive Divided into two sections: Private and Public Contents (Public): Short Film, Press Releases, News, Terms & Conditions, Charity Contents (Private): Clues for the mystery solving, Gallery pictures of the events. Production Time: April and May Running Time: From June to December Budget: US$ 100,000

Short Film

Duration: 5 minutes Plot: A modern day romance story about a British aristocratic couple, involving the theft of a one of a kind diamond ring. Characteristics: Mysterious, thrilling, romantic, sophisticated, passionate. Setting: London and UK countryside. Aesthetics: Timeless and precious photography Director: Well known, respected British lm Director like Joe Wright (Atonement, Pride and Prejudice) Casting: Unknown British, good looking actors, around 30 years old Production Time: April, May and rst two weeks of June Running Time: From mid June to December Budget: US$ 2,500,000

Phase 1 Viral Marketing

Distribution: Upload the short lm to the campaign Microsite, Luxury fashion blogs, social networks and websites (i.e. Small World, Linked In, etc.), Email to client database, Press. Forward option to send to a friend Approximately reach 50,000 people (existing customer database: UK, US, UAE, Japan, Malaysia and purchased database of new target market) Expected Spread of the short movie: 500,000+ people Launching Time: Second half of June Budget: US$ 75,000

Window Displays

Project clips of product placement found within the short lm Interactive: the image is reveled when movement is detected on the street One display taking three windows of the storefront. The rest of the window displays need to be updated to ingrate the theme and be more fresh and innovative, like Selfridges. Purpose: Create buzz and attract as many people as possible to the store Production Time of Interactive Window Display: May to mid-June Running Time of Interactive Window Display: From mid June to end of July Budget for Interactive Window Display: US$ 50,000 Production Time of Traditional Window Displays: One Month Display Time of Traditional Window Displays: Schedule to vary every two months but can change depending on signicant events. Launching in June Budget for Traditional Window Displays: US$ 100,000

Direct Mailing

Content: Personal Invitation to participate in the competition, Individual Password to access the private section of the Microsite, rst clue of the mystery and terms and conditions of the competition Target: Asprey current database (US, UK, Japan, UAE, Malaysia) and new purchased customer database (approximately 40.000 people) Aesthetics: High quality paper, modern and tasteful graphic design Production Time: May and June Delivery: Fist week of July Budget for Traditional Window Displays: US$ 150.000

Event 1: Day in the Countryside

To reect the British lifestyle of the brand, the main characters of the short lm (couple) will be used as an excuse to host a one-day event in the countryside. Activities: Polo match, picnic, live music, tea party Location: Royal County of Berkshire Polo Club Guest List: Customer database Total Guest List: 400 Invitations: are going to be personalized and sent by mail by mid July Organization Time: June and July Event Date: Last week of July Budget: US$ 300,000

Phase 1 Event 2: Award Winning Gala

Gala cocktail celebration to award the prize to the winner of the competition and to reveled the charity organization that will get the donation Prize: US$1,000,000 worth ring Charity Donation: US$ 1,000,000 to an organization of choice of the winner (from a pre selected group of Charity Organizations that are in line with Asprey brand values) Guest List: Press, Charity Representatives, Director and actors from the short lm, inuential business people and those 100 people that reached the last stage of the competition Total Guest List: 300 Invitations: are going to be personalized and sent by mail at the beginning of October Location: Mansion where most of the short lm scenes took place Organization Time: September and October Event Date: Last week of October Budget: US$ 250,000 (party) + US$ 1,000,000 (Award) + US$ 1,000,000 (Donation)= Total US$ 2,250,000

Public Relations

Press releases Editorials Host press releases cocktails in order to build strong relations with journalists and media It is expected to receive a lot of media coverage because of the innovative approach to luxury communications and the lavish prize and donation Running Time: June to the beginning of November Budget: US$ 150,000

Phase 2 Spring AD Campaign

Use same model from the video High fashion focused, artistic, and edgy with a mysterious feel for the campaign. Famous and known photographer We want advertising to focus on the Jewel (Asprey) but communicate the whole feel of what Asprey brings to your life. The aim is to place the brand Asprey among competitor for consumers and associate brand values with their aspirations. Publish only in Vogue UK, double page spread in rst half of the issue, establish year contract with publication Production: Photo shoot in summer begin publication in Vogue UK for December with press release party in November Budget: 2million US$ Vogue Expense (DEC/JAN/FEB/MARCH Issues): approximately 480,000 US$, Press Release Launch Event: 20,000US$ Total: 2,500,000 US$ Duration: Year round

Phase 2 Event 1: Asprey Christmas Party

Exclusive VIP 300 customer annual party + 100 selected press Coincide with launch of advertising campaign Customers will get to wear for the evening jewellery used in campaign Champagne and nger food Live jazz quartet band to create ambience Asprey will conduct a silent auction consisting of various items from previous season and prizes all proceeds will go to Asprey sponsored charities. Purpose: Provide customer with brand experience to acknowledge customer care and present campaign Organization Time: Mid- October till third week of December Event Date: Third week of December Budget: US$500,000 Event 2: St. Moritz Winter Dinner In collaboration with The Murezzan, Asprey throws a one-night surprise dinner party aimed at a younger potential target market in their prestigious lounge and bar. Expecting 200 guests, selected from Asprey and The Murezzan database. Purpose: Attract new target and collaborate with The Murezzan to develop consumer knowledge of St. Moritz location. Hiring a chef that belongs to Ferran Adria Deconstructivist School. Instead, he has referred to his cooking as deconstructivist. Adri's stated goal is to "provide unexpected contrasts of avors, temperature and texture. Nothing is what it seems. The idea is to provoke, surprise and delight the diner." (www.elbulli.com) Organization Time: From September until December Event Date: First week of January Budget: US$ 145,000

Public Relations

It is estimated $100,000 will be used to cover all PR expenses for the launch of the AD Campaign, Christmas Party and St. Moritz Dinner Party.

Actions: The action stage reveals the details of the tactics (Smith &Taylor, 2004). A full action plan table can be found in Appendix 2. Control: Given that measuring marketing performance is generally fraught with difculties and that there are few general standards to which to adhere, it may be useful to try to integrate nancial and non-nancial measures. This will eventually lead to a greater understanding of why an organization may be able to achieve a good return of investment (Lenskold, 2002). The use of marketing measures is becoming an essential component in understanding the effectiveness of marketing strategies (Ranchhod, 2004). The table below provides an understanding of how the campaign effectiveness will be measured.

Quantied Objectives

Means of Measurement
Sales Analysis / ROI

Frequency of Measurement
Quarterly

Accountability

Cost

Action

Increase sales of Bond street Asprey store by 10 per cent over the next 12 months

Asprey Finance Department

No cost

CEO

Increase the existing customer base by 25 per cent over the next 12 months by targeting a younger Asprey target market.

Database Analysis

Monthly

Aspreys Marketing Department

No cost

Marketing Director

Increase Asprey brand awareness by 50 per cent over the next 12 months among 40 to 60 year old, upper upper class women and men (current customer prole).

Number of Responses to the Competition, Event Turnover and Website Trafc

Monthly

Aspreys Marketing Department and www.alexa.com

No cost

Marketing Director

Generate Asprey brand awareness of 25 per cent over the next 12 months among 30 to 40 year old, up and coming professional women and men (prospect customer prole).

Number of Responses to the Competition, Event Turnover and Website Trafc

Monthly Aspreys Marketing Department and www.alexa.com

No cost

Marketing Director

To revitalize Asprey image from an old, monotonous brand that only focus on quality to an up-to date aspirational luxury brand enhancing its British aristocratic heritage by developing an emotional connection with the current and prospect customers.

Surveys to Measure Customer Value and Brand Equity

Bi-annually

Market Research Company

US$100,000 CEO and Marketing Director

Conclusion Marketing communication in luxury in the future will become more innovative and traditional tools will be mixed with new techniques, using digital media and user generated content. Luxury brands understand that old ways of communication are becoming less effective and the new generation of consumers is comfortable with seeing and buying luxury on the Internet. The brands that rst take advantage of the possibilities that new media offers for communication will continue to be successful in the future. Brands as Asprey should not be afraid to challenge the notion of luxury established in the minds of their old customers- providing continuously the same exquisite level of quality and service will ensure the loyalty of their old customers, at the same time innovating in marketing communications and using new media will help Asprey attract the younger customers whose loyalty will ensure the companys protability in the future. The brand managers need to have this long term perspective in mind when deciding on the strategic marketing direction of the company.

Appendix 1: Observation Sheet

OBSERVATION Date: Time of observation: Female Sheet No: Couples

!" #"
3) 4)

Male

Pre-teens <12 Caucasian

Teens 13-19 Black

Young Adults 20-29 Oriental

Working Adults 30-39 Indian Hispanic

Elderly 40-59 Other

Retired 60-80

Middle Eastern

Personal Appearance/ Dress:

5)

Attitude towards store environment and staff:

6)

Luxury customer segmentation: 1 New Rich 2 Hedonistic 3 Fashionista 4 Ethical 5 Inconspicuous 6 Aristocratic

7)

Time spent in store: 5-10 min. 11-20 min. 21-40 min. more than 41 min

8)

Buying behavior: Didnt engage in purchase Engaged but didnt buy Engaged and bought

QUESTIONAIRE

!"

Did you know the brand Asprey before entering the store today?

#"

Why do you like Asprey? Why?

$"

What do you enjoy doing in your leisure time?

4)

What is your post code or neighbourhood of residence?

References: www.alexa.com (accessed 16.03.09) www.asprey.com (accessed 01.03.09) www.boucheron.com (accessed 10.03.09) www.bulgari.com (accessed 10.03.09) Burnett, J. (1993), Promotion Management, Boston: Houghton Mifin Company www.caci.co.uk/acorn (accessed 10.03.09) www.cartier.com (accessed 10.03.09) Chernatony, L. (2006), From Brand Vision to Brand Evaluation, Elsevier Ltd Chevalier, M., Mazzalovo, G. (2008) Luxury Brand management: A World of Privilege, Asia:John Wiley & Sons Pte. Ltd Corbellini, E., Saviolo, S., (2009) Managing fashion and Luxury Companies, 1st edition, Etas Engel, J.F., Warshaw, M.R., Kinnear, T.C., (1994), Promotional Strategy, 8th edition, Richard D Irwin Gobe, M. (2001) Emotional Branding:the new paradigm for connecting brands to people, New York: Allworth Hooley, G., Saunders, J., Piercy, N. (2003), Marketing Strategy and Competitive Positioning, 3rd edition, Prentice Hall Kapferer, J.N., Bastien, V. (2009) The Luxury Strategy: Break The Rules of marketing to Build Luxury Brands, London: Kogan Page Ltd. Keller, K. L. (1993) Conceptualising, Measuring and Managing Customer-Beased Brand Equity, Journal of marketing, 57 (1) Kotler, P. (1991), Marketing Management: Analysis, Planning, Implementation & Control, 7th ed. New Jersey: Prentice Hall Krishnan, H.S. (1996) Characteristics of Memory associations: A Consumer-based Brand Equity Perspective, International Journal of Research in marketing, 13 Lehmann, D., Winer, R., (1991) Analysis for Marketing Planning, 2nd edition, Irwin (Homewood, IL) Lenskold, J. D. (2002) Marketing ROI: Playing to Win, Journal of marketing Management, May/June, vol.11 (3) McGee, H. T., Pruett, M. (1986) Strategic groups and the analysis of market structure and industry dynamics, British Journal of Management, vol.6 Mitchel, A. (1978), VALS System (Online) Available at: www.cric-bi.com/VALS/ (Accessed: 17.03.2009) Okonkwo, U. (2007), Fuxury Fashion Branding: Trends, tactics and Techniques, New York: Palgrave Macmillan Pine II, B.J., Gilmore, J.H. (1998) Welcome to the Experience Economy, Harvard Business Review, Vol.76, Issue 4:97-105 Ranchhod, A. (2004), Marketing Strategies: a Twenty-rst Century Approach, London: prentice Hall Saviolo, S., Testa, S. (2002), Strategic Management in the Fashion Companies, 1st edition, Etas Schmitt, B., Simonson, A. (1997)Marketing Aesthetics: The Strategic management of Brands, Identity and Image, New York: Free Press Smith, P.R., Taylor, J. (2004) Marketing Communications: An Integrated Approach, 4th edition, Kogan Page Webb, Bill (2007) Retail brand marketing in the fashion industry, in Hines, Tony, bruce, Margaret (2007)Fashion Marketing: contemporary issues, 2nd edition, Elsevier Ltd Ziccardi, D. (2001), Inuencing the afuent: Marketing to the Individual Luxury Customer in a Volatile Economy, MFL Books, Cited in: Chevalier, M. and Mazzalovo, G. (2008), Luxury Brand Management, Asia: Wiley & Sons