Marketing: Brand Differentiation

By Christopher Zoukis

The makers of luxury brands in the areas of liquor, watches, high-fashion, perfume, and cosmetics traditionally use luxury pricing to present the concept of exclusivity. This was accomplished by inflating prices and limiting the availability of certain luxury products. Due to the advent of new companies offering new luxury products, relying on traditional marketing strategies is risky. Any brand that does so risks becoming irrelevant or what is even worse, becoming ordinary.  Image courtesy

New marketing strategies are being introduced. These strategies include exclusive sponsorship of events and activities associated with the rich and famous, and luxury product differentiation. The agenda is to make affluent customers aware of just how exclusive one luxury product is when compared to another product.

Sponsorship of exclusive events is considered one of the best ways to convey the desired image. The new rich in emerging markets love to attend exclusive events attended by others of their economic level. A restricted list of guests serves to augment the glamour. Glamour heightens the sense of privilege. The presence of famous celebrities enhances the feeling of exclusivity.

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Tall, Dark, Handsome, and Affluent

By Christopher Zoukis

Traditionally, the marketing of luxury products and services has targeted older men, because they had the money. Things are changing. Not only are women being targeted more and more, but young rich single men are a growing market that is often neglected.  Image courtesy

In their book, The Affluent Consumer, Michman and Mazze state that the singles market accounts for $600 billion in spending power. Of course, the number contains both male and female singles. Nevertheless, the number is impressive. According to Michman and Mazze, wealthy single men spend their money on dining out, alcohol, transportation, entertainment, tobacco, and retirement investments. They spend more on housing than any other segment of the wealthy, are educated, fashion conscious, and pursue their hobbies intently. They are more likely to indulge themselves than any other segment of the rich or ultra-rich.

Teasley, a Manhattan-based firm that specializes in data analysis to improve marketing, did a survey to find out where single, rich men live. The results were published by Cathryn Conroy under the title of Top 10 Cities to Find Rich, Single Men.

Here they are:

San Francisco Bay area, including Oakland and San Jose.

Anchorage, Alaska.

Washington D.C. and Baltimore, Maryland area.

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