New marketing communication approaches towards luxury brand building via social media.
The Web, for luxury brands, is not future, but the present.
Dolce & Gabbana, 2010.
This Final Year Project is submitted as part of the requirements for the award of the BSc Business Studies. Presented by: Vasilisa Solovyeva ID number: 080022356 Supervised by: Caroline Wiertz Marketing & Consumer Behaviour Cass Business School, City University London 24 March 2011.
I certify that I have complied with the guidelines on plagiarism outlined in the course handbook in the production of this dissertation and that it is my own, unaided work. Signature:
Acknowledgements
I would like to thank Caroline Wiertz for her guidance and great advice, Vangelis Kassotakis, the marketing director of Cartier, for inspiration, my friends and family, especially my father, for help, support and proof-reading.
Abstract The aim of this study is to identify the main marketing approaches in communicating a luxury brand through social media. Employing a framework by Philip Kotler (2008), a quantitative content analysis of the social media platform Facebook of six major luxury companies presented findings that were evaluated by case study analysis. Specifically, the brand resonance pyramid, developed by Kevin Lane Keller (1993), is reviewed as a means to track how the marketing communications environment can affect luxury brand equity. The findings indicate that all types of marketing communications are performed on the social media platform, highlighting the differences that exist when product types are compared. Further cases studies present the extent to which marketing communications affect luxury branding strategy. This study contributes to marketing academic research on the use of social media as part of brand building. However, there appears to be room for further research.
Table of content
1. Introduction ..............6
1.1. Background...6 1.2 Problem formulation6 1.3 Purpose...7
2. Literature review .8
2.1 Luxury industry8 2.2 Social media..9 2.3 Marketing communications9 2.3.1 Advertising10 2.3.2 Sales Promotion 11 2.3.3 Events & Experience .12 2.3.4 Public Relations and Publicity..12 2.3.5 Direct Marketing...13 2.3.6 Personal Selling.13 2.3.7 Word-of-mouth..14 2.3.8 Interactive marketing15 2.4 IMC across markets15 2.5 Luxury branding. 16 2.6 Choice of literature.17
3. Methodology...18
3.1 Sample..18 3.2 Coding..20 3.3 Limitations..20 3.4 Reliability20
4. Results .21
4.1 Overview..21 4.1.1 Implications...22 4.2 Product type analysis24 4.2.1 Fashion luxury companies24 4.2.2 Jewellery luxury companies ..25 4.2.3 Car luxury companies ..26 4.2.4 Cross-sectional analysis and implications 27
4.3 Case study analysis28 4.3.1 Case 1: Louis Vuitton28 4.3.2 Case 2: Dior30 4.3.3 Case 3: Cartier32 4.3.4 Case 4: Tiffany & Co..34 4.3.5 Case 5: BMW.35 4.3.6 Case 6: Porsche ..37 4.3.7 Implications....38
7. References60
1. Introduction
1.1 Background
Today we see an explosion of new information and a fast development of communication technologies that have become an integral part of our society. Social networks have become an integral part of peoples lives, and something that presents a fundamental shift in the way we communicate. 96% of the worlds population have joined social networks (Qualman, 2010). Facebook alone added over 200 millions users in less then a year (Facebook, 2011). Social media is a new communication platform that appeared with the spread of new social-networking websites. The phenomenon of social media has changed the way we do business forever (FT, 2009). Interestingly, social media has also become a powerful tool for marketers. The issue today is not whether to deploy Internet technology companies have no choice if they want to stay competitive but how to deploy it. (Porter, 2008).
1.3 Purpose
Unfortunately, academic literature offers marketing managers very little theoretical instruction on adopting social media in marketing communication strategies. The purpose of this research is to analyze and explore how luxury companies embrace social media in their marketing communication strategies. The choice of the industry for the examination was driven by personal interest as well as by the industrys specific issues with respect to social media, like exclusivity and expensiveness of products, to challenge the work. As mentioned earlier, social media is a new concept for the academic world, thus there are very few works published on this topic. Therefore, the research question is based on traditional theory of marketing and is applied to the subject of interest:
Which methods of marketing communication are used by luxury companies on the social media platform Facebook?
Based on the problems discussed, this study answers the following sub questions: Do fashion luxury brands in brand profile pages of Facebook use communicational mix more than car luxury brands in brand profile pages of Facebook? Do car luxury brands in brand profile pages of Facebook use communicational mix more than jewellery luxury brands in brand profile pages of Facebook? Do fashion luxury brands in brand profile pages of Facebook use communicational mix more than jewellery luxury brands in brand profile pages of Facebook? Does marketing communication on the social media platform Facebook allow luxury companies to build strong brands? This study is divided into four main parts: literature review, methodology, results and conclusion. The first part reviews the theoretical foundation of luxury industry, social media, marketing communication and branding. Then the perspective of this study is presented. The second chapter presents research methodology and outlines variability and reliability of this study. The result chapter has three sections: overview, product type analysis and six case studies analysis. Each sections is concluded, giving the future recommendations for academics and practitioners. The last part presents the conclusion of this study. The explanation of the research questions and fulfilled objectives is given. Finally, suggestions for future researches and implications for managers are underlined. The aim of this study is hopefully to contribute to theory by providing a benchmark on how luxury brands should use social media. This study could be seen as practical advice for marketing practitioners and a framework for future research for academics.
publicity, direct marketing, personal selling, world-of-mouth, interactive marketing (Kotler and Keller, 2009). However, the media environment has changed dramatically in recent years. The internet environment has opened an enormous number of opportunities for new ways of marketing communication, while some forms of media are passing away. Many authors argue that the most effective marketing communication strategies combine different communication channels. This concept was introduced by Schultz, Tannenbaum and Lauterborn (1993) and was named integrated marketing communication (IMC). IMC approaches to promotion are rapidly substituting traditional advertising in the marketing world (Schultz and Kitchen, 1997). Traditional advertising focuses on a broad target audience through a hierarchy of communication effects (e.g. awareness, knowledge, preference, conviction) toward consumer behaviour distributed between purchased media and time (Schultz and Wang, 1994). On the other hand, IMC attempts to coordinate and control various elements of the promotional mix - advertising, personal selling, public relations, publicity, direct marketing and sales promotion - to produce a unified customer-focused message and, therefore, achieve various organisational objectives (Boone and Kurtz, 2007). Companies that use the IMC approach, rather than start with preordinated communication solutions, have the potential for better performance results (Schultz, Tannenbaum and Lauterborn, 1994). Until recently, marketing communication was as rather simple managerial task that was controlled by marketers, as mentioned earlier in the definition. The internet environment driven by advances in technology along with digitalisation changed the way marketers manage IMC it became no longer fully controlled, because consumers became active communication generators themselves (Kerr, Waller and Patti, 2009). This phenomenon was described by Berthon, Pitt and Campbell (2008) as user-generated content (UGC). The development of digital media allowed the audience to manage and select their own exposure to marketing messages. It is important to mention, however, that various researches (Internet Usage Report, 2008) recommend monitoring consumers activity online, since consumer-toconsumer communications affect the majority of all purchase decisions. The following sections describe each mode of marketing communications.
2.3.1 Advertising
Advertising is the most widespread aspect of the promotional mix. The main goal of advertising is to spread information about companies products or services and brand names (Kotler and Keller, 2009). Advertising differs from other promotional mix aspects, since the communication occurs in an impersonal way and covers a larger population than
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others. Advertising is usually costly and traditionally performs on TV, radio and newspapers. Common techniques for traditional advertising include: print ads, broadcast ads, packaging, packaging inserts, motion picture, brochures and booklets, posters and leaflets, directories, reprint of ads, billboards, display signs, point-of-purchase displays, audiovisual material, symbols and logos, and videotapes (ibid). Despite reaching a wider audience, advertising has been largely criticised due to lack of effectiveness. Doyle and Stern (2006) argued that advertising does not push customers to make a final purchasing decision.
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sponsorship, news, speeches, public service activities, corporate values communication, and identity media. This type of communication contributes to product awareness, which is
especially effective for new product launches. In addition, PR enhances corporate image, developing trustworthiness when designed accordingly (Kotler and Keller, 2009).
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could be communicated more effectively through social media. However, the caution is that technological innovations can affect confidentiality and validity of the companys statement, thus, PR messages that focus on the companys values should be meaningful and memorable, proactive and value-driven, customer-based and properly timed (Johnston, 2008).
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online and engage different segments of consumers by reflecting their special interests and behaviour. In addition, the advantage of contextual placement available on the Web, for example advertising based on keywords from search engines, is shown when a consumer is searching for a particular product (Keller, 2009). With respect to the interaction aspect of this mode, online communities and co-creation experience have a positive impact on communications with customers (Prahald and Ramaswamy, 2004). There are some implications of interactive marketing. Due to the customers ability to screen out most messages, marketers lose some control over what consumers will do with their online messages and an activity (Keller, 2009).
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Daugherty, 2002 cited in Grove, Carlson & Dorsch, 2007). However, there are few academic studies on the actual application of IMC in different product markets (Nowak, Cameron and Delorme, 1996 cited in Grove, Carlson and Dorsch, 2007). A recent study published by Grove, Carlson and Dorsch (2007) found that IMC incidence has not changed significantly over the past 20 years, while an actual application of IMC differs between product types. Despite authors providing insights regarding IMC in theory and in practice, future research on the utilisation of IMC at finer levels of analysis, such as by type of good or type of product, has been suggested.
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Marketing communications contribute to the dimensions of resonance (Kotler and Keller, 2009). As an application example, Keller (2009) described the power of interactive marketing communications as a brand building tool, and concluded by mentoring its positive impact on brand equity.
2. 6 Choice of literature
Since the aim of this study is to observe how companies promote themselves using social media, an integrated approach to marketing communications theory was chosen for developing model for research (Q1). This choice was made due to the fact that the promotional mix, is one of the oldest traditional marketing theories and it would be interesting to see how the theory could be applied in modern marketing communication channels, like social media in this case. The research into academic literature suggested that there appears to be room for further research on IMC. Thus, the sample of the brands investigated in this study considered different types of product (Q2). The results were analyzed based on four classification criteria that corresponded to fundamental brand equity pyramid, in order assess the contribution of each type of mode to luxury brands equity (Q3).
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3. Methodology
This study examines the actual brand communication initiatives via social media that have been applied by leading multinational luxury companies. Methodologically, there are two processes in this study conceptual content analysis of a social media platform (Facebook) and theoretical case study analysis (brand equity pyramid). The conceptual content analysis provides evidence of a possible application of traditional marketing communication tools to social media platform (Facebook) by luxury companies. The case study analysis goes deep inside the purposes of the communicational messages used by six luxury companies with respect to brand equity pyramid. A sample of companies whose social media platform (Facebook) would be used for content analysis was randomly chosen. However, strong brand presence in the Web 2.0 environment was observed in each case before the actual analysis. In order to satisfy the variability requirement, all the companies chosen produce different types of luxury products. Content analysis is defined as the systematic, objective, quantitative analysis of communications content (Kassarjian, 1977). It is also a systematic research method for analysing textual information in a standardised way to allow evaluators to make inferences about that information (Weber, 1990). Such a methodology for research allows new insights to be provided, increases understanding of the phenomenon studied, and provides meaningful information for practical actions (Krippendorff, 2004). This method has been successfully used by various researchers (Humphreys, 2010, Thompson, 2004). Content analysis has also been employed in the investigation of the incidence and nature of integrated marketing communications (IMC) evident in the advertising of products, which is a topic related to this particular study (Grove, Carlson and Dorsch, 2007). Although analysing content of these previous studies have usually been advertisement or magazines, the research method proved to be useful in analysing social media platforms (unknown author, 2010, Zhang, et al., 2010). These works suggest that the content analysis methodology could be effectively applied for this study.
3.1 Sample
Branded profile page on Facebook was chosen as the medium to study. The content analysis was performed during the period from January to March 2011. The sample was randomly chosen; however, a strong performance was noticed prior to the research period. In the data
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collection phase, for each company, the entire text developed on social media platform (Facebook) was considered for the quantitative content analysis (Kassarjian, 1977; Krippendorff, 2004). Table 1 presents brands, whose profile page on Facebook was analysed. Brand Name Brand overview
LV (fashion)
http://www.facebook.com/LouisVuitton
Louis Vuitton is a leading fashion and leather goods brand. According to Bernard Arnault, CEO of LVMH group, successful branding is the result of a combination of ads with famous spokespeople, artist collaborations, corporate sponsorship, high-class events and an effective PR. (Brand Channel, 2006).
Dior (fashion)
http://www.facebook.com/Dior
Dior is a French company, which produces top-quality, highly creative products that appeal to a youthful, refined clientele. Dior is undoubtedly one of the most successful brands in todays fashion world (Global Data, 2011).
Cartier (jewellery)
http://www.facebook.com/Cartier
Cartier is a French luxury jewellery and watches manufacturer. It uses marketing to promote its image of exclusivity and tradition since 1847. CEO Bernard Fornas says that Cartier is the most beautiful brand in the world[marketing actions] creates a very important resonance for the brand (Matlack, 2006).
Tiffany & Co is an American jewellery manufacturer and retailer, with unrivalled reputation for sophisticated luxury. Unlike other luxury brands, which focus on wealthy customers only, Tiffany & Co remains resolutely upscale (Chabbot, 2011).
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BMW (cars)
http://www.facebook.com/BMW
BMW is a German luxury vehicles manufacturer, known for its performance. The company is a global leader in premium car market (Danzig, 2004).
Porsche (cars)
http://www.facebook.com/porsche
Porsche is a German luxury sport car manufacture. The brand is associated with supreme automotive design (AdBrands, 2011). Table 1.
3.2 Coding
The coding categories are promotional mix modes, based on literature review (advertising, sales promotions, events and experiences, public relations, direct marketing, world of mouth, personal selling). Marketing communication techniques, for example sport event, product catalogue, audio-video material, etc., were coded as variables. Forty-one variables were analysed (Appendix 1: code book). The content of each luxury company profile page on Facebook was processed manually using a code sheet, recording the presence or absence of coded variables (Appendix 2: code sheet). The transcripts of results as well as spreadsheet of quantitative data are available in appendices section (Appendix 3). Further quantitative data was used to identify the frequency of marketing communications employed by luxury companies on Facebook. Based on these finding a comparison between three different product types companies was performed. Finally, an evaluation was carried out of the contribution of each communicational mode to brand equity, with respect to brand awareness, brand image, brand responses and brand relationships in each case. The evaluation was conducted on a case-by-case basis and consisted of the theory of customerbased brand equity pyramid.
3.3 Limitations
It is important to mention that due to the limited amount of academic literature available, this study is based on traditional theory of marketing communications. Therefore, online experience allows only some types of communicational modes to be performed on the social media platform Facebook. The literature review chapter outlined examples of the traditional techniques of each communication mode. This study investigates only those types that can be applied in the Internet environment.
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3.4 Reliability
Reliability is one of the distinguishing characteristics of content analysis (Kassarjian, 1977). The reliability of a study refers to the assurance that the data obtained are independent of the measuring event, instrument, or person (Kaplan and Goldsen, 1949). Kassarjian (1977) states two types of reliability in the content analysis: category reliability and interjudge reliability. Usually, content is processed by several coders in order to minimise the researchers subjectivity and improve the reliability and the validity of the results. However, this study is not a subject of interjudge reliability, since the content was processed individually and no judges were involved. Despite that, this study can be considered reliable, since categories were formulised and defined based on the academic literature review. Nevertheless, the data were observed and processed manually and were the subject of the observer biases. Thus, it is important to mention that the observer effect has an impact on the studys reliability and validity (Saunders, 2009). However, an attempt to analyse each case deeply reduces issues of reliability.
4. Results
The results of this study were obtained from the content analysis as described in the methodology section. The spreadsheet of the results is available in the appendix and presents a clear picture of how companies use brand profile pages on Facebook for marketing communication purposes. An overview section describes the quantitative findings, thus answering Q1 regarding methods of marketing communications used by luxury companies. It is finished with an implication section with the brief analysis. The product type analysis presents the description of findings according to the companies product type. This shows what techniques luxury brands are using and how often. The section is concluded with cross-sectional analysis, answering Q2 (a, b, c) This is particular relevant to Grove, Carlson & Dorschs (2007) call for more examination of IMC with respect to finer levels of analysis. In order to assess the purposes of the brand communication techniques and answer Q3, a resonance pyramid will be discussed with social medias application with to the case examples of luxury brands used in this study.
4.1 Overview
As a first step in analysing the social media marketing communications undertaken by the six leading luxury companies surveyed, frequency counts were compiled of the 41 coding
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variables. Graph 1 presents an overview of the usage of all modes of promotion mix on brand profile pages on Facebook by six luxury companies.
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Graph 1. Overview of themarketing communications on a social media platform (Facebook) by luxury companies.
Advertising Sales Promotion Events & Experience PR Direct Marketing Personal Selling WOM Interactive Marketing
WOM is the most prevalent method of communications luxury companies fully employ both viral marketing and buzz marketing on Facebook. Advertising and interactive marketing are the next popular modes used on Facebook by luxury companies, with results of 87% and 83% respectively. PR is the next common element of the promotional mix on Facebook, with 75% of the total usage. Slightly lower results were found with respect to events & experience, with a score of only 63%. As for the promotion of direct marketing and personal selling, it was found that these types of communication are presented on the brand profiles pages on Facebook (61% and 58%). The cases of the usage of sales promotion techniques (25%) that were found on the brand profile page were very much lower.
4.1.1 Implications
Leadership of interactive marketing techniques among all other modes of communications applied by luxury companies on social media can be explained by the fact that the interactive scope of the Internet provides an opportunity for greater marketing interaction and individualisation. The strong position of advertising is a result of it still dominating marketing activity in the offline world, as suggested in the literature review section (Kotler and Keller, 2009). The strong performance of WOM techniques is a result of the fact that this method appeared in the online marketing application recently, due to the recent development of social media itself. The popularity of PR is explained by the fact that this mode has proven its ability to communicate to the public through traditional media, build
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relationships, manage those relationships in different communities, and guide all the strategic communications for a company, and the results suggest that PR takes more of a lead in social media planning (Social Media Comes of Age, 2010). The slightly lower results obtained for events & experience are explained by the lack of personal interaction; however, due to the recent emergence of high-tech technologies, like virtual reality, the percentage has the potential to increase (Prahald and Ramaswamy 2004). The slightly lower percentage obtained with respect to direct marketing techniques is explained by the fact that social media allows a closer relationship between a company and a customer (Brown, Broderick and Lee, 2007), thus luxury companies successfully leverage this opportunity. Less intensive usage of personal selling techniques is explained by the lack of personal interactions as in the case of events & experience. The lowest percentage of usage, sales promotion, is explained by the fact that social platforms focus more on communication and relationship building, while sales promotion focuses on short-term initiatives, designed to stimulate quicker or greater purchases (Keller and Kotler, 2009). Also, luxury companies sell expensive and exclusive products which require, to some extent, decision making before the purchase. A content analysis identified that thirty-nine out of forty one techniques have a presence on Facebook. Lotteries and Factory tours variables were not recorded. The reason behind could be an exclusiveness and expensiveness of the products in the luxury industry. Overall, these findings could be seen as a benchmark for adapting various techniques, considering the industry trend, on social media.
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Advertising Sales promotion Events & Experience PR Direct Marketing WOM Interactive Marketing
Advertising and WOM are the most prevalent methods of marketing communications that fashion luxury companies employ on Facebook which correlates with the industrys trend (100%). Examples include pictures of LVs new collection in an advertising campaign and Diors official advertising video with Natalie Portman, while LV attempts to encourage WOM via buzz marketing, for example, through City Guides promotion campaign, which includes posts every week with geographical coordinates of various places of interests encouraging fans to track updates. As for Dior, a viral marketing technique was observed during the data collection. Dior launched a quiz, encouraging participants to share their scores in order to encourage consumer-to-consumer communications. A slightly less percentage (89%) of PR techniques was found on the companies profile pages. LV is very keen on PR, exploiting various techniques such as publications in CNN news, designers speeches, companys core values communication, etc. Dior is less concerned with PR on Facebook, but still some techniques have been found, like interviews with spokespersons (Marion Cotillard) and values communication, especially soon after Houses art director John Galliano was fired due to anti-semantic remarks (The Times, 2011). Events & experience
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was represented by 88% on luxury fashion branded profile pages. Both companies promote fashion shows (festivals in this study). The LV Trophy WSTA is an example of a sport event promoted on Facebook. 75% of the interactive marketing techniques were found on Facebook, but it is important to mention that the observed trend suggests a rapid increase in the future. Dior promotes the release of an application for conventional devices, such as the iPad, and LV adapting virtual reality techniques, such as 360 degree photo shoots and software downloads. Finally, sales promotions are not very popular on social media platforms among fashion luxury companies, showing 36% only. LV Your Definition of a Journey contest is an example of a sales promotion technique. Overall, fashion luxury companies apply various types of techniques using the IMC approach of marketing communications on Facebook. Results suggest that the majority of marketing communications are employed by more than 50% of them.
communication on Facebook by both companies, suggesting that all eight modes are
Graph 3. Usage of marketing communications on Facebook by jewellery luxury companies Again, as was the case with the fashion companies, advertising and WOM techniques are fully employed on Facebook (both 100%). Tiffany & Co publishes lots of pictures with celebrities wearing its products as part of its advertising strategy, as well as creating buzz around product placement, for its WOM strategy, while Cartier relies on official video ads. The next popular mode is interactive marketing (73%). Tiffany & Co employs virtual reality techniques very effectively when promoting its new collection, while Cartier communicates
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with its customers via an application for conventional devices like the iPad. Slightly lower (but still good) results were obtained for the level of PR usage on Facebook profile pages (67%). Tiffany & Co communicates with customers using PR techniques, such as arranging ice rinks before Christmas in London and Milan, and promoting them on Facebook. Another example of PR that was observed on Cartiers profile page was sponsorship of the highly regarded cause, the Cartier Womens Initiatives Awards. Luxury jewellery companies rely on direct marketing techniques by only 50%. Cartier, for example, intensively promotes online subscription on the landing page on Facebook, while Tiffany & Co relies on the online shopping experience. Only 38% of events & experience types of technique were presented on the luxury jewellery brands profile pages. The most noticeable tool is art events Fondation Cartier pour l'Art Contemporain is a foundation that organises different art exhibitions and entertainment events, such as ice rinks, organised by Tiffani & Co. The smallest percentage of techniques was obtained for sales promotion (29%). Only Cartier participates in fairs/trade shows that may encourage purchases, such as Bienalle for antiques. Overall, the usage of all types of marketing communications was recorded on luxury jewellery branded profile pages on Facebook. However, a noticeable amount of techniques were not fully employed.
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Compared to the previously described product type markets, results for car manufacturers are different. WOM and interactive marketing modes are fully employed, presenting 100% usage of marketing communication tools. As for noticeable examples, Porsche has a very effective promotion of virtual reality communications, such as virtual tours around auto shows and Porsche museums. BMW offers software downloads, such as free applications for Apple products, as well as BMW TV on demand. Advertising is still a popular strategy, resulting in 80% of advertising techniques employed on branded profile pages on Facebook. BMW posts pictures of products, while Porsche has a dedicated YouTube channel with highquality video advertisements promoted on Facebook. Slightly fewer (50%) techniques with respect to personal selling were discovered on the profile pages. Porsche has a dedicated section with an interactive map of dealer locations, which is considered as sales meetings. BMW presents reports on fairs and trade shows. Luxury car manufacturing companies on the social media platform use 63% of events & experience tools for marketing communication. The famous Porsche museum and BMW golf events are promoted on Facebook. Direct marketing is employed on 50% only. Porsche presents product catalogues, while BMW intensively promotes subscriptions. As for PR, it was found that both companies employ only 44% of all techniques. Porsche sponsors various events, as well as presenting speeches of famous Porsche car drivers, designers and the companys management. BMW exploits identity media tools, such as the companys logo. The marketing communication method with the lowest usage was sales promotion (14%), represented by the promotion of fairs and trade shows in the case of both companies. To conclude, luxury companies from this product type market rely more on new types of communication, rather than on traditional modes. Thus, the results present the smallest amount of marketing communication techniques employed on a social media platform.
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order to maintain the relationship. On the other hand, jewellery and car product type companies employ much fewer traditional marketing communication techniques than fashion companies, while recently emerged marketing tools, like WOM and interactive marketing, are very common as well. Jewellery companies are oriented to luxury, as a sign of wealth, more than fashion companies are. They try to deliver more uniqueness, creating an image of a more serious, high-quality brand. Thus personal types of communications, like personal selling and direct marketing, and mass communications that encourage greater purchases, like sales promotion, are not very common for marketing this type of product. The same goes for luxury car companies, since the car is a high-involvement product and is more durable than fashion goods, which explains these results. The difference between jewellery and car companies adopting marketing communications lies in the lack of events and experience provided by jewellery companies. This can also be explained by the differences between product types. Luxury cars tend to create more feelings of excitement, thus communications via various events and experiences are more effective at reaching such requirements. On the other hand, jewellery companies rely on PR more than car companies do, which is a more traditional method of communication. In contrast, car companies are more suited to the modern, high-tech tools from WOM and interactive marketing ways of communication on social media platforms. In general, product type does have an influence on marketing communication strategy. In addition, the sophisticated image of the luxury industry requires a more elaborate and exclusive manner of communication in order to emphasise exclusivity and high quality of products. Nevertheless, the trend suggests that new modern and high-tech techniques will grow in number, whatever type of product is promoted.
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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Adverising Sales Promotion Events & Experience PR Direct Marketing Personal Selling WOM Interactive Marketing
Graph 5. Louis Vuitton As illustrated on Graph 5, LV actively uses all modes of marketing communications on Facebook. Brand profile page is updated on daily basis with growing number of fans (1,953,589 on 11.03.2011).
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through, for example, interviews with members of the Vuitton family promoting the companys values. Brand responses are the next stage of the pyramid. The results suggest that LV marketing communications on Facebook attempt to create positive attitude formation and decisionmaking. Various campaigns that stress how LV products are of the highest quality, such as interviews with designers and craft makers, reinforce judgements regarding the quality, credibility, consideration and superiority of the companys brand. The virtual reality technique, a type of interactive marketing represented by live streaming fashion shows, contributes to the creation of impactful experiential and enduring feelings, such as excitement of the exclusive experience. In addition, the social scope of Facebook may potentially contribute to self-approval during conversations, contests, etc. The final stage of the pyramid is brand resonance, which focuses on the relationship and level of personal identification that the customer has with the brand. The analysis suggests that LV uses techniques that are directed on building strong relationships with customers. Each person that has LV in its friends is attitudinally attached to other fellow brand users, and this connection contributes to the sense of community category of the resonance stage. Facebook allows encouraging of active engagement, one of the strongest affirmations of customer loyalty. Street activities, such as the Foursquare campaign on Bond Street in London, suggest active involvement with the brand, in the same way that conversations on the profile page do. Overall, LV marketing communications are directed on building a strong brand, contributing to each stage of the brand resonance pyramid. The achievement of the highest level of pyramid is indicated by the fact that consumers become actively interactive with the brand and share their experiences with others.
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100%
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Graph 6. Dior
Adverising Sales Promotion Events & Experience PR Direct Marketing Personal Selling WOM Interactive Marketing
Dior employs all types of marketing communications on Facebook; however, none of them is fully employed. The brand profile page is not updated on a daily basis. 595,724 people have Dior as friends on the social network (on 19.03.2011).
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the Dior quiz contribute to the formation of more enduring feelings, like social approval. A lack of direct communication with customers and rare updates indicate that Dior does not attempt to manage closer relations with customers; however, since people participate in discussions and comment on posts, this means that they are actively engaged and attitudinally attached to the Dior brand. Overall, Diors marketing communications establish good brand awareness with traditional types of marketing communication. A lack of recently established modes, like WOM and interactive marketing, suggest that Dior is lagging behind the industry trend in communicating with customers. Nevertheless, the findings suggest that the rest of the techniques that were found on Diors Facebook page attempt to encourage unique associations that are favourable to brand equity, positive reactions and loyalty in general.
Graph 7. Cartier Graph 7 illustrates the findings obtained from the content analysis on Cartiers profile page. The content is updated rarely compared to LV, for example, and there are 87,332 subscribers (on 19.03.11). Cartier uses all types of communications with customers on Facebook , except for personal selling.
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Graph 8. Tiffany & Co. As illustrated in Graph 8, Tiffany & Co employs seven out of the eight marketing communication modes. The brand profile page is frequently updated with a growing number of subscribers (833, 616 on 20.03.11) Tiffany & Cos brand resonance pyramid The salience stage of the brand equity pyramid is characterised by the extent of brand awareness that seems to be embraced by Tiffany & Cos communications on Facebook. Ice skating events traditionally organised by the company in different cities around the world surely contribute to the depth dimension of this stage. PR, such as the products that celebrities wear during famous events like the Oscars, also encourages greater brand awareness. The popular way among the sample companies of improving the breadth dimension of this stage was the promotion of company products, before special occasions were found on Facebook. The following stage, which consists of performance and imagery, is reached by several marketing communication techniques employed on Facebook. Tiffany & Co annually present the worlds most magnificent diamonds and jewels at an extraordinary gala, communicating the exceptional style & design, reliability and durability of the companys products. Such incentives surely straighten favourable and unique associations with brand identity. Regarding the imagery part of this stage, Tiffany & Co attempts to meet customers more abstract psychological and social needs by creating a user profile, to promote product
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placements in popular TV series and celebrity endorsements during the Oscars, for example. In addition, the company attempts to create a sincere and exciting, rather than a sophisticated brand personality by adopting a more open way of communication and creating more interactive campaigns. Brand responses is the next stage in the branding pyramid. The results suggest that Tiffany & Cos marketing communications on Facebook attempt to encourage positive judgements towards the quality, likability and credibility of the companys products. An example of the techniques that are capable of contributing to these judgements is the companys participation in numerous discussions, promoting the best features of the product. The findings suggest that Tiffany & Co designed its communications to cause emotions of fun and excitement, which are encouraged by the ice skating events and the branded conventional devices applications. The final stage, brand resonance, is fully embraced by careful management of active customer engagement, since personal communication with customers during conversations happening on the Facebook page help to maintain brand relationships. Overall, Tiffany & Co effectively employs marketing communications on Facebook towards luxury brand building, successfully contributing to the brand equity. The only notion is that WOM and events & experience techniques could be increased since it seems that actively engaged subscribers would welcome it.
Graph 9. BMW
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Graph 9 illustrates the findings from the BMW profile page on Facebook. There are many official BMW pages available on Facebook dedicated to specific countries and there is also one global BMW page. The preview of BMW UK and BMW Global pages indicated that there is little difference in the communication approaches on the two pages, thus the latter one was analysed. BMW Global has 4,638,000 subscribers (on 14.03.2011), which is the biggest number among the researched companies. However, the results suggest the weakest performance in terms of marketing communications in the sample.
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customers more involved in building a stronger brand. However, it could be argued that such active consumer participation should be better controlled since they may go off topic. In addition, BMWs profile page does not look very organised and attractive unlike the previous cases, thus it could be improved.
Graph 10. Porsche As Graph 10 illustrates Porsche employs all types of marketing communications on social media platform Facebook. The content communication content is updated mostly on daily basis and has 1,300,000 subscribers on 14.03.2011.
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advanced technological resources via managers speeches and various audio-visual materials. For example, a profile pages section dedicated to 911 Carrera GTI explains and promotes advanced features that the product possesses. Such actions, without any doubt, improve the performance dimension of brand meaning. Regarding imagery dimension, Porsche attempts to meet customers more abstract psychological needs by communication of the brands personality, stressing on excitement, competence and sophistication dimensions. For example, audio-visual material about Porsches victory at Daytona sends the message of the products success and, thus, competence. The company attempts to establish excitement features of its brand personality by creating a daring and imaginative design of its products. Porsche also relies on the history and heritage of the brand, by posting pictures and inside information of restored classic models, subsequently, creating a sophistication dimension the brand personality. Brand responses are the next stage of the pyramid. The results suggest that Porsche marketing communication on Facebook attempt to create positive attitude formation and favourable decisionmaking. Various campaign that stress how Porsche products are of the highest quality, such as interviews with designers and engineers, reinforce judgements regarding the quality, credibility, consideration and superiority of the companys brand. The virtual reality technique, a type of interactive marketing represented by the ability to create your own virtual Porsche car on Facebook, contributes to the creation of impactful experimental and enduring feelings, such as excitement and fun. In addition, the social scope of Facebook may potentially contribute to self-approval during conversation, contests, etc. The final stage of the pyramid is brand resonance, which focuses on the relationship and the level of personal identification that the consumer has with the brand. The analysis has found that Porsche is very effective and successful in creating loyalty, attitudinal attachment, sense of community and active engagement of its customers. Porsche family tree is an outstanding example of techniques for reaching brand response. Porsche created a special section on Facebook, where customers, employees, racers and collectors have an ability to post a picture of their car and write their own story of engagement with the brands products. Another example is the contest for the best design created by consumers. This is pure example of customers attitudinal attachment, active engagement and sense of community with the brand. Overall, Porsche marketing communications are directed on building a strong brand, contributing to each stage of the brand resonance pyramid. The achievement of the highest level of the pyramid is indicated by the fact that consumers become actively interactive with the brand and share their experiences with others.
4.3.7 Implications
A deep analysis of six luxury companies suggests that IMC approach in marketing communications have a potential to improve each stage towards building strong brands.
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Communications on social media platform improves brand awareness in all cases. Findings about the difference exists in the choice of marketing communications when product types compared proved to be a case in branding strategy. Namely companies contribute to different stages of branding with different choice of marketing communication mix depending on the nature of product. Luxury fashion companies stresses more on emotional aspects of brand communication, such as imagery and feelings, while car companies emphasize performance of its product in marketing communications adopted on Facebook. Jewellery companies design their marketing communications towards improving imagery and encouraging positive feelings, however sub-dimensions of performance part, like quality characteristics, reliability, durability, etc. of the products, are also intensively communicated. However, the extent of which the choice of marketing communications affect brand resonance does not depend on product type. Interestingly, the case of BMW showed that the strongest relationships between a brand and customers could also be achieved by the completely differentiated approach towards brand communication. It is important to mention, that the reader should not forget that this implications applied to social media only in this case.
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6. Appendices
Appendix 1: Code Book
Advertising 1. Picture ads pictures that intended to persuade an audience to purchase or take some actions upon products, ideas, or services. 2. Video ads the official commercials posted on branded profile pages on Facebook. 3. Booklets and brochures 4. Audio- visual material (4) any other videos related to brand 5. Logos and symbols (5) a graphic mark or emblem to promote instant public recognition. Sales Promotions 6. Contest any calls for consumers to submit an entry to be examined by the company, subsequently to select the best one 7. Lotteries an organized game in which the distribution of prizes depends on random choice 8. Fairs/Trade shows any form of shows or conventions organized by industry associations. 9. Entertainment any form of entertaining actions that have a potential to promote greater purchase 10. Gifts and premium merchandize offered for free or at very low cost. 11. Coupon certificate that allows to save on the purchase of a product. 12. Continuity programAn ongoing promotion to attract and retain customers, i.e. become a member and receive latest news and offerings Events & Experience 13. Art events any form of event organized by the company that presents form of human expression, like painting, music, photography, etc. 14. Festivals an organized event by the company, which centres on unique aspect. 15. Entertainment Events any other organized events that will reach target public. 16. Sport events companys organization or participation in sport events. 17. Social causes events an event organised to express commitment on social causes. 18. Company museums an institution created by the company. 19. Factory Tours an organised tour to the companys production facilities. 20. Street Activities an outdoor event organised by the company.
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Public relations 21. Sponsorship sponsoring sports and cultural events and highly regarded causes. 22. Events special events, like news conferences, seminars, exhibits, etc. that will reach target audience. 23. Identity media the companys visual identity, like logos, stationary, brochures, etc., presented to the public. 24. Publications published materials by the company, like magazines, newsletter etc. 25. News favourable news about the company published on mass media. 26. Corporate Values communication information on the companys core values 27. Speeches talks given by the companys representatives 28. Public Service Activities an attempt to build goodwill by contributing money and time to good causes Direct Marketing 29. Catalogues the companys full-line merchandise catalogue. 30. Subscribe promotion via email or sms direct invitation for receiving information about the company. 31. Online shopping experience direct link to purchase products on the companys website. Personal Selling 32. Sales meeting conversations between the company and customers about the business and its products and services, ex. Discussions/ answering questions 33. Sales presentation promotion of the sales presentations (online and offline) 34. Fair and Trade shows any form of shows or conventions organized by industry associations. Word Of Mouth (Ryu G. and L. Feick, 2007) 36. Does company encourage fans to share company-developed products and services or audio, video, or written with others online? (viral marketing) 37. Does company publish brand-related information through unexpected or even outrageous means? (buzz marketing)
Interactive marketing (Voorveld, Neijens and Smith, 2010) 38. Conventional devices promotion of Branded applications with mobile devices. iphone, ipad, etc.
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39. Podcasts a program (as of music or talk) made available in digital format for automatic download over Internet. 40. Virtual reality a function that permits consumers to virtually "feel or experience" of the product. 41. Software download link to free download of software, e.g. music, wallpapers etc.
Appendix 2: Code sheet Code Sheet Brand's Full Display name on Facebook: Facebook Profile Page URL: Advertising 1. Picture ads 2. Video ads 3. Booklets and brochures 4. Audio- visual material 5. Logos and symbols Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes:
Sales promotions 6. Contest 7. Lotteries 8. Fairs/Trade shows 9. Entertainment 10. Gifts and premiums 11. Coupon 12. Continuity program Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes:
Events & Experience 13. Art events 14. Festivals Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes:
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15. Entertainment 16. Sport Events 17. Social Causes events 18. Company museums 19. Factory tours 20. Street activities
Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes:
Public Relations 21. Sponsorship 22. Events 23. Identity media 24. Publications 25. Company magazine/news 26. Value communication 27. Speeches 28. Public service activities Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes:
Y. Yes N. No Y. Yes N. No
Personal Selling 32. Sales meetings 33. Sales presentations 34. Incentive Programs Y. Yes N. No Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes: Comments, if yes:
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Y. Yes N. No
Comments, if yes:
World of mouth 36. Viral Marketing 37. Buzz marketing Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes:
Interactive Marketing 38. Conventional devices 39. Podcasts 40. Virtual reality 41. Software download Y. Yes N. No Y. Yes N. No Y. Yes N. No Y. Yes N. No Comments, if yes: Comments, if yes: Comments, if yes: Comments, if yes:
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Appendix 3: Results
LV Dior Cartier Tiffany & Co Porsche BMW
1 Fashion luxury ptoducts 100,0% Jewellery luxury ptoducts 00,0% 1 Car luxury ptoducts 80,0% Six all together 86,7% 1 1 0 1 1 4 80% 1 1 0 1 1 4 80% 1 1 0 1 1 4 80%
Advertising
1 2 3 4 5 5
Picture ads Video ads Booklets and brochures Audio-visual materisal Logos and symbols Total
1 1 1 1 1 5 100% 5
1 1 1 1 1 5 100% 5
1 1 0 1 1 4 80% 4
2 Sales Promotion
6 7 8 9 10 11 12 7
Contest Lotteries Fairs/Trade show Entertainment Gifts/Premiums Coupon Continuity Programm Total
Fashion luxury ptoducts 28,6% Jewellery luxury ptoducts28,6% Car luxury ptoducts 14,3% Six all together 23,8%
0 0 0 1 0 0 1 2 28,6%
0 0 0 0 0 0 0 0 0,0%
0 0 1 0 0 0 0 1 14,3%
1 0 0 1 0 0 0 2 16,7% 2
1 0 0 1 0 0 0 2 28,6% 2
0 0 1 0 0 0 0 1 14,3% 1
Fashion luxury ptoducts 87,5% Jewellery luxury ptoducts37,5% Car luxury ptoducts 62,5% Six all together 62,5%
Art Events Festivals Entertainment Sport Events Social Causes events Company museums Factory tours Street activities
1 1 0 0 1 0 0 0
1 1 1 0 0 1 0 0
0 0 1 1 0 1 0 0
8 Total
2 25%
3 38%
3 38%
7 88% 7
2 25% 3
4 50% 5
PR
21 22 23 24 25 26 27 28 9
Sponsorship Events Identity Media Publications Company magazine/Newsletters Corporate value Communication Speeches Publica Service Activities Total
0 1 1 0 0 1 1 1 5 55,6%
1 1 1 1 1 0 0 0 5 55,6%
0 0 1 0 0 0 1 0 2 22,2%
Fashion luxury ptoducts 88,9% Jewellery luxury ptoducts66,7% Car luxury ptoducts 44,4% Six all together 66,7%
1 1 1 1 1 1 1 1 8 88,9% 8
1 1 1 1 1 1 0 0 6 66,7% 6
0 1 1 1 0 0 1 0 4 44,4% 4
1 0 1 2 66,7% 3
0 Fashion luxury ptoducts 83,3% 1 Jewellery luxury ptoducts50,0% 0 Car luxury ptoducts 50,0% 1 33,3% Six all together 61,1% Fashion luxury ptoducts 50,0% Jewellery luxury ptoducts50,0% Car luxury ptoducts 50,0% Six all together 50,0% 1 1 0 0 2 50,0% 0 0 0 1 1 25,0%
Sales Meetings Sales Presentations Incentive programs Fair and trade shows Total
0 1 1 0 1 25,0% 2
WOM
1 0 1 50,0%
0 1 1 50,0%
1 1 2 100,0% 2
1 0 1 50,0% 2
1 1 2 100,0% 2
1 Fashion luxury ptoducts 100,0% 0 Jewellery luxury ptoducts 00,0% 1 1 Car luxury ptoducts 100,0% 50,0% Six all together 100,0%
8 Interactive Marketing Conventional devices 38 39 Podcasts 40 Virtual reality 41 Software download 4 Total 1 0 1 0 2 50,0% 1 0 1 1 3 75,0% 1 0 0 1 2 50,0% 1 0 1 1 3 75,0% 3 1 0 1 0 2 50,0% 3 1 1 1 1 4 100,0% 4
Fashion luxury ptoducts 75,0% Jewellery luxury ptoducts75,0% Car luxury ptoducts 100,0% Six all together 83,3%
100% 100% 90% 80% LV 70% 60% 50% 40% 30% 20% 10% 00% Sales Promo2on 100.0% 90.0% 80.0% LV 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% PR Dior Car2er Tiany&Co Porsche BMW LV Dior Car2er Tiany&Co Porsche BMW Dior Car2er Tiany&Co Porsche BMW LV Dior Car2er Tiany&Co Porsche BMW
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Adver2sing
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Events&Experience
100.0% 100.0% 90.0% LV 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Personal Selling Dior Car2er Tiany&Co Porsche BMW LV Dior Car2er Tiany & Co Porsche BMW 80.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Direct Marke2ng
100% 90% 80% LV 70% 60% 50% 40% 30% 20% 10% 00% Dior Car2er TIany&Co Porsche BMW
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
00%
WOM
Interac2ve Marke2ng
Adver2sing Adver2sing Sales Promo2on Sales promo2on Events & Experience PR PR Direct Marke2ng WOM Interac2ve Marke2ng }Total usage of marke2ng communica2ons on brand prole pages on Facebook by jewellery luxury companes (Car2er and Tiany)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 00%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 00%
]Total usage of marke2ng communica2ons on Facebook by fashion luxury companies (LV and Dior)
100% Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng
90%
80%
Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM ^Total usage of marke2ng communica2ons on brand prole pages on Facebook by luxury companies Interac2ve Marke2ng
70%
60%
50%
40%
30%
20%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 00%
10%
00%
100% 100% 90% Adver2sing 80% Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng Dior Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng 70% 60% 50% 40% 30% 20% 10% 0% Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Louis Vui`on
100%
90%
80%
70%
Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng Porsche
60%
50%
40%
30%
20%
10%
0%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
BMW
100% Adver2sing Sales Promo2on 90% Adver2sing Sales Promo2on Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng 0% Tiany & Co 10% 20% 30% 40% 50% 60% 70% Events & Experience PR Direct Marke2ng Personal Selling WOM Interac2ve Marke2ng 80%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Car2er
Appendix 4: LV data
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Louis
Vuitton
Advertising
Sales
Promotion
Events
&
Experience
PR
Direct
Marketing
Personal
Selling
WOM
Interactive
Marketing
Advertising, direct marketing and WOM techniques are all fully employed (100%). The pictures of each collection of campaigns are posted on the wall along with advertising videos in HD format. In addition to that, LV posts various audio-visual materials relating to the brand, like behind the scene videos. With respect to logos & symbols, each post includes the companys name and logo, the same as the profile picture and welcome page. Posts dedicated to specific products with a description, which are considered as booklet and brochures in this study, were recorded on the branded page as well. Regarding direct marketing, the companys product catalogues are presented on Facebook in the form of digital pictures. LV also allows users to experience online shopping straight from the profile page. Subscription to the news updates via email and SMS are available on the companys page. Viral and buzz marketing, as WOM techniques, are represented with various polls, friend invitation options and City Guide weekly updates about various places in the world. LV promotes various events & experiences very intensively (88%). Sport events, sponsored by LV, are promoted on the profile page with news updates, invitations, pictures, interviews, etc. The Louis Vuitton Trophy WSTA is an annual event sponsored by the company, creating an effective brand promotion across the world. LV also supported the FIFA World Cup 2010, dedicating an exclusive products collection for the event. The art of travel is an incentive to create pieces of art by fans on Facebook, which is an example of art events on a social media platform. Fashion shows are an integral part of any fashion brand promotion, and todays new technologies allow companies to create live streaming videos posted directly on the profile page, so that people around the world can have a front row
52
experience. LV fashion shows are a common technique used by the company to communicate with customers. This study coded fashion shows as festivals. Other entertainment events are promoted on the branded profile pages, i.e. Africa Rising workshop in Paris and Vogue fashion night out entertainment event. Escape culturel Louis Vuitton is the companys museum, actively promoted on Facebook with news about upcoming exhibitions and supported pictures. LV is committed to social causes, organising dedicated events, such as the Red Cross auction, with donations from online sales. Finally, the development of the location-based social network Foursquare allows LV to promote various street activities on social media, such as the London Foursquare campaign on Bond Street. Interactivity is an integral part of social media. LV embraces interactive marketing on branded profile pages in the form of promotion of applications for conventional devices, like the iPad and iPhone, and the ability to download software (wallpapers, music, etc.) straight from Facebook. In addition, a major part of interactive marketing communication techniques is dedicated to virtual reality. For example, there is an application that allows users to personalise a product (a bag) and order it online. Another application allows users to participate in live discussion with other viewers of a live streaming fashion show. Also, 360 degree photos of new collections are available as soon as they are released. A lower frequency of PR techniques recorded on the branded profile page is used by LV. (66.7%). The company heavily promotes publications in the news, like the CNN article about LV. Corporate company news and newsletters are posted on Facebook, along with speeches by company spokespersons; for instance, Yves Carcelle, chairman and CEO of LV, talked about Thorphy event in Dubai and Patrick Louis Vuitton promoted LVs objects from the heritage collection. LV is highly concerned with the companys core values communication, which was identified in the form of Journey campaigns dedicated to the exceptional travel experience and environmental concerns (http://www.louisvuittonjourneys.com/). The company uses only 25% of sales promotion and 25% personal selling techniques on its Facebook profile page. LV encourages fans to participate in contests, which could be online or offline. For example, the Your definition of a journey contest required users to create a video and the winners video was awarded in a dedicated event and published online.
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Advertising techniques are the most common methods of communication that the company uses (80%). There are thematic photo albums with picture ads, like beautiful La Rose Dior with pictures of products with roses. In addition, two thirds of the profile page itself are the most recent advertising picture, while the other third is the logo. Dior uses various direct marketing techniques as part of the IMC approach of marketing communications (67%). The very interactive welcome page has a dedicated section to the product catalogue, and the online shopping experience is also promoted on a number of posts on the wall. There are no kinds of subscription to the company notifications found on the page. A lower frequency of PR techniques was recorded on Diors Facebook page (56%). Dior presents the speeches of the companys stakeholders, such as the speech by Sidney Toledano at the collection fashion show. Events organised by the company are promoted using the PR type of marketing communications. An example is Ball of the century organised by Christian Dior. Corporate values are not communicated very intensively, but soon after the dismissal of the company creative director (see earlier), a digital document explaining the companys values in different languages was published on Facebook. WOM and interactive marketing modes are employed at 50% only. An interactive quiz, which is considered to be a viral marketing technique in this study, is intensively promoted on Facebook. A new application for conventional devices like the iPad and iPhone was launched recently and was presented officially on the company profile page. Very interactive catalogues with 360 degree views of products were recorded as a virtual reality technique during the data collection phase. 29% of sales promotions was found on Diors Facebook page. The Ball that was previously mentioned is also considered as entertainment as well as being partly a sales promotion
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technique. Events & experience and personal selling techniques are only employed at 25%. The company museum is mentioned in several posts on the profile page, as are fashion shows, which were coded as festivals, and these serve as examples of the events & experience technique founded in this research. Dior promotes sales presentations on Facebook for example, some posts promote new product launches in selected boutiques, like in the case of the Gris Montaigne collection launched in a boutique in New York and London.
Advertising is fully employed by the company (100%). Cartier has a slightly different approach to advertising. Compared to fashion luxury companies who approach advertising by posting a lot of picture ads, Cartier rather focuses on official video ads, the same as those playing in the boutiques. Highly interactive booklets are available on the page, together with logos in each post. This explains why traditional methods of communication suit this product type more than innovative techniques. Investigation of PR and direct marketing techniques resulted in 67% in both cases. Cartier sponsors the Womens Initiative Award and intensively promotes it on Facebook. Another interesting example of Cartiers PR is the publications regarding the companys activity, such as the presentation of its major creations at Salon International Haute Hologerie (SIHH) in Geneva. In addition, Cartiers participation in Biennale des Antiquaires is regarded as a PR tool. A highly interactive catalogue of products with detailed information as well as incentives relating to the companys news subscription is treated as an example of the companys direct marketing techniques. The company employs only 50% of the newest channels of communications, WOM and interactive marketing. Straight from the landing welcome page, Cartier encourages users to invite friends, which serves as an example of a viral marketing technique
55
that promotes WOM. An application for conventional devices like the iPad is also promoted on Facebook. Another example of interactive marketing communication is the highly elaborated section that transfers a viewer in a separate page in the Internet presenting navigational pictures and information on the companys products. Sales promotion techniques are employed at 29% only. Participation in Biennale is viewed as a fair and trade show type of event, capable of attracting greater purchases. Cartier uses only 25% of the events & experience techniques to communicate with customers. The company is very keen on organising various art events, such as Foundation Cartier pour lArt, and organising different exhibitions. Personal selling techniques were not found on Cartiers Facebook profile page.
Advertising is the mode most employed by the company on Facebook (80%). As was the case with the other jewellery company, Cartier, in the sample, the nature of the product encourages this traditional way of communicating. The content analysis reveals picture ads, video ads and frequent usage of the logo. A slightly lower percentage of interactive marketing was discovered on Tiffany & Cos profile page on Facebook (75%). The interactive catalogue, presented as virtual reality, is effectively employed by the company as an example of an interactive marketing technique. Tiffany & Co also communicates with the audience via PR techniques on Facebook (56%). Constant news updates related to the brand, like celebrities wearing the companys products, and sponsorship, like supporting the young musicians organization, are examples of PR techniques promoted on Facebook. Personal selling and WOM modes are employed at a rate of 50% in both cases. Tiffany & Co is very keen on embracing personal selling, having 193(!) discussion topics, making it the leader
56
among all six cases. A very interesting method of buzz marketing is used whereby new visitors are not allowed to browse the company page without clicking the like button. The company uses only 38% of events & experience techniques promoted on the social media platform. The most famous ice skating event organised by Tiffany & Co, which traditionally happens in December, is actively promoted on Facebook. The analysis found that 33% of the direct marketing techniques are actually employed on the Facebook page. For example, viewers can experience online shopping directly on the Facebook profile page.
BMW employs 80% of advertising techniques on Facebook. The most common techniques discovered are big picture ads, video ads and company-related audio-visual material. Significantly, BMW uses less WOM and interactive marketing (50% in each case). Viral marketing is the most popular technique observed on the branded profile page for example, the landing page encourages users to invites friends to the page. As for interactive marketing, a branded application for conventional devices is available to download as well as various entertainment software downloads like videos from BMW TV, a dedicated brandbroadcasting channel. Even lower usage of events & experience techniques were discovered during the content analysis (38%). For example, several posts mentioned the company museum in Munich and the organisation of sport events, such as golf. Promotion of subscription on the branded profile page is an example of a direct marketing technique that was recorded. This mode appears to be employed at a percentage of 33% only. Low numbers of personal selling and PR techniques (25% and 23% accordingly) were discovered on Facebook. An intensive usage of identity media, such as the appearance of the companys logo in every update posted by BMW, and a few videos with the company
57
stakeholders speeches, are examples of PR techniques employed on the branded profile page. Only 14% of sales promotion, represented only by traditional car and motor shows, was recorded during the research.
Advertising Sales Promotion Events & Experience PR Direct Marketing Personal Selling WOM Interactive Marketing
Modern ways of communications like WOM and Interactive marketing are fully employed (100%). Porsche encourage to share information with friends, promoting viral marketing this way. Also interesting and unusual facts about companys products seems to create buzz around it, thus encouraging WOM further. As for example of Interactive marketing techniques, Porsche promotes specially designed applications for conventional devices, like iPhone and iPad, straight on the landing page. Very impressive virtual reality techniques, like virtual tours around auto shows and the companys museum, were discovered during analysis. In addition, various software is available to download for free. Slightly less, but still a lot, techniques of traditional way of advertising employed on Facebook profile page (80%). Very interactive landing page presents pictures ads of company products as well as dedicated section to various audio-visual materials. The companys logo is very noticeable at any part of the branded page. Porsche promotes various Direct Marketing techniques very intensively also (67%). For example interactive catalogue of the companys products is promoted on the landing page. In addition, online shopping for Porsche accessorises is available straight from social media platform. Only half (50%) of Events & Experience techniques are employed on the branded profile page. Videos posted from various races, cups and championships where the company products were involved intensively promoted on Facebook Porsche company museum is traditional way of communication via Events & Experience. Porsche uses a bit lower frequency of PR techniques as recorded on branded profile page (44%). Identity media, like the company logo, is frequently used on Facebook.
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Porsche created a buzz about reaching 1000000 subscribers on Facebook, corporate website and mass media, as an example of PR publications. Personal Selling mode of marketing communications represented by 25% of usage was discovered on Facebook. Interactive map of the companys dealer locations worldwide was coded as sales meetings. Promotion of Porsche participation in various trade shows, like auto shows, was recorded on the branded profile page. Finally, only 14% of Sales Promotion techniques is used by the company on social media platform. Again the company participation in trade shows has a potential to encourage greater and faster purchase.
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7. References
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