“People do not buy Goods and Services, they buy Relations, Stories & Magic.” ~ Seth Godin
How do you position your brand in your industry? How does it fit in with your customers self-image and give them a sense of prestige? What do consumers associate with your brand in their mind? Here are three factors that can help you establish your brand in the premium luxury tier.
1.) Luxury Positioning
A luxury brand’s positioning is a crucial part of its overall strategy. It’s all about clarity. Customers need to know where your brand fits in with all the other luxury brands that they already know and love.
Customers place different luxury brands in different categories (e.g sustainable luxury, women’s luxury, affordable luxury, luxury subscriptions, etc). Customers also rank brands in their minds from the 1st in each category to the 5th and everyone else gets forgotten. Most people only remember the top 3 or only the 1st) If your brand doesn’t come to mind as at least the top 3 in a specific category then it will be nearly impossible to compete.
So for example, #1 for sustainable luxury vehicles will always be Tesla because it was the 1st to market in that category. You can’t defeat brands that are already first to market but you can definitely find a new niche or category that your brand can dominate as #1 or at least the top 3. Once you find that market opportunity then you can effectively position your brand for success. Click here to learn more about positioning.
Image Source: https://louisvuittonbrand.files.wordpress.com/2013/01/positioning-map.jpg.
2.) Visual Branding
A brand is perceived as luxury because of how it uses visual design to convey the premium quality, lifestyle and experience with a distinct look and feel. Visual branding is not only about the logo. It could also include the design of the product, the way a product is packaged, the interior design of a shop or the online experience of a brand. How you position your brand is the framework that will also be used to inspire creative work. Everything from the brand identity to advertising and online presence should communicate that it is a luxury brand of substance.
Visual branding is about connecting with customers at a visceral level or making a memorable first impression. Avoid glittering logos full of bling-bling, 3D, drop-shadows and too much gradients that actually make your brand look very cheap and tacky. Real luxury brands do not use any of these superfluous effects. Instead, you can aim for something cleaner and sophisticated that gives people a sense of prestige by being associated with the brand. Consider the various ways that people can identify your brand from your distinct photographic approach, to your use of patterns, textures, color and typography. Below is a visual identity design for a luxury real estate brand by Mubien Studio.
3.) A Luxurious Brand Experience
The future of brand is in the experience. Another way a brand is made luxury is through emotional and intangible experiences. It’s not only about how they use the product or service but how your brand experience unfolds as a story in their mind of the customer. Your customers are willing to pay a lot more if they feel like they are being taken care of and if they believe they are choosing the best quality.
Your Brand experience should not be confused with customer service although the service can still impact the experience. Any small business can have customer service but brand experience is broader and more holistic. It is about building an entire ecosystem with your customer at the center. One way to create a memorable luxury experience is through brand launches and other forms of grandiose events which can be very expensive but are a great way to create buzz and PR around your product or brand. It can also be multi-channel, across different platforms or in physical environments.
Follow this link to my other article where I talk about how Virtual Reality and AR will also be the future of brand experience. Think about what steps you can take in your business to revolutionize the shopping experience for your customers both online and offline. Below is physical retail environment for Louis Vuitton. How can you create a world class brand experience for your customers?
A Luxury brand is always priced at a higher margin which is justified by the way it positions itself, presents itself and creates a memorable experience that builds positive associations and brand equity over time.
You can consider a tier based pricing model in which the pricing varies from the more affordable to the highest level good or service. You can also consider luxury subscription plans for recurring revenue. There are many creative ways to approach premium pricing for a luxury brand. Follow this link to take a look at some great examples of luxury subscription brands to inspire you.
In conclusion, it’s the consumers that make the brand luxury because a brand is not what you say it is, it is what they say it is. So let the market decide. But you could influence their perceptions through your positioning, visual branding, and luxurious experiences. Consider these 3 factors as interdependent because your positioning will determine your approach to visual branding which also influences the brand experience. If you enjoyed this article then feel free to subscribe below.
2 Responses
Great article! It’s incredible how marketing has changed so much from mass communication to a two-way communication channel giving people a way to speak to brands and now into integrative marketing. And now they’re adding AR and VR to the mix; it’s crazy wonderful! I love how you break the articles down into bite size to avoid overwhelm and to gain insight,
Sure, the world of branding and marketing is constantly evolving. Every article is carefully written so that even someone who is new to this can still gain a clearer perspective on what branding and marketing is all about