Top five sales pitch

My top tips on delivering a pitch that wins over investors and  makes them desperate to work with you.   we hear hundreds of business pitches each week whether they're squeezed into 140 characters on social media, presented to us in a business plan or face to face over a drink at one of a start up events. which reveals five tips for delivering an awesome business pitch.

                                                                                                    

Less is always best

A good elevator pitch is vital. You need to be able to explain your business and what it does in two sentences, 60 seconds and 140 characters. It needs to be clear, succinct and straight to the point. Doing that will grab attention straight away and means people are more likely to listen to the rest of what you have to say. If an investor, fellow entrepreneur or journalist doesn’t immediately understand what your business is and the problem it solves, then it’s unlikely they’ll dig further.

 

To perfect your elevator pitch, it's important to practice and the best way to do that to by attending networking events. Every time you meet a new person and they ask about your business or business idea, you have the chance to see if you can explain it in a way that they understand.

Facts, facts and facts

 

The best way to inspire confidence in your business is through cold-hard facts. Don't wax lyrical about how big your target market is and that even if you attracted just 1% of it, you could make millions in profit. If you're pitching for investment, then a company cash flow with realistic projections for the future and solid proof that your business idea has legs is always wise.

 

Know your weaknesses and show them

 

Entrepreneurs tend to be a a jack-of-all-trades, jumping from marketing to product design to developing to accounting. But it’s virtually impossible to be a true expert at all of them. So tell whoever you're pitching to what you're great at, and where you need help. The best entrepreneurs surround themselves with smart people who they trust to help grow their business. If it's investment that you want, showing that you understand your weaknesses will demonstrate that  you're realistic and know what you need to succeed. If it’s at a networking event, then this might help you find a co-founder or first employee.

 

Don't break the bank

 

If you're pitching for investment, don't steam in asking for shedloads of cash. Ask for just enough to make your one product or service work. Show that you want to prove a small part of your business can work before taking on anything bigger. The businesses that are so good the founder can prove the start-up will grow even without investment are the ones that become the most desirable for investors.

 

Be authentic

The single most attractive thing about any business is the entrepreneur behind it. That is the person who people want to work with and investors can trust with their cash. Don't pitch your idea wearing a suit and tie if that's not you. People can see through lies very quickly. If you're yourself and show that your personality connects seamlessly with the product or service you're trying to launch, then it makes your pitch 100% better. Just being yourself should help you to be more confident and avoid any nerves.

The Importance of Digital Marketing

There’s no denying it, the world is rapidly shifting from analogue to digital. People are consuming more and more digital content on a daily basis – on mobile phones, laptops, desktop computers at work, and more – and companies that have not yet recognised this in their marketing strategy need to adapt fast.

Why is digital marketing so important? Because it is not only a rapidly growing force in the current marketing playing field, it is set to be the future of marketing, and it seems likely that digital media will soon replace more traditional forms altogether.

While older generations will no doubt lament the demise of paper-based newspapers, books, communication methods and traditional TV and radio broadcasts, those who have grown up with the internet and mobile phones as a God-given right are already embracing the brave new world of digital consumption.

The facts are that digital methods of communication and marketing are faster, more versatile, practical and streamlined, so it is perhaps unsurprising that once the technology became available we began quickly moving into the digital age. The good news is that digital offers just as much potential to marketers as it does to consumers.
Before we look at the benefits of digital marketing, let’s take a quick snapshot of some of the key forms of it at present:

• Websites and SEO content
• Blogs
• Internet banner ads
• Online video content
• Pay-per-click (PPC) advertising
• Email marketing
• Social media marketing (Facebook, Twitter, LinkedIn, etc.)
• Mobile marketing (SMS, MMS, etc.)

This is far from an exhaustive list, and new forms of digital marketing, such as augmented reality, are arriving all the time.


So, why digital marketing?

First of all, digital marketing is infinitely more affordable than traditional offline marketing methods. An email or social media campaign, for example, can transmit a marketing message to consumers for the merest fraction of the cost of a TV ad or print campaign, and potentially reach a wider audience.

But one of the main benefits of conducting your marketing digitally is the ease with which results can be tracked and monitored. Rather than conducting expensive customer research, you can quickly view customer response rates and measure the success of your marketing campaign in real-time, enabling you to plan more effectively for the next one.
Perhaps the strongest case for incorporating a digital element into your marketing is that digital media forms are quickly overtaking traditional forms of information consumption. According to the Office for National Statistics, over 82% of UK adults went online in the first three months of this year: that's over 40 million individuals.

The bottom line is, the digital age is here, and those businesses that fail to adapt to the new marketing climate are at great risk of going extinct sooner rather than later.  - References by Business Zone U.K.

 

How to Start a Business in 10 days

Day 1

Draw up a business plan

When launching College Hunks Hauling Junk in 2004, the first move for friends Nick Friedman and Omar Soliman was to dust off the business plan they'd written in college a couple of years prior. "Ultimately, it was a really valuable guide for us," Friedman says. In fact, it helped turn their $80,000 initial investment ($30,000 of which was their own money) into a powerhouse with some 500 employees and 47 U.S. franchises.
Whether written on the back of a napkin or a highly detailed 25-page document, a business plan is critical for startups seeking the fast route to profitability, asserts Ken Yancey, CEO of SCORE, a small-business mentoring organization that offers free, generic business-plan templates on its website. Reference by www.entrepreneur.com.

Day 2

Study the market

Market research is vital to a startup looking to hit the ground running, according to Yancey. You want to create a snapshot of the competitive landscape you're entering: how your products or services compare to what's available, who your target customers are and what government regulations and licensing requirements to expect. The SBA's SizeUp tool provides access to meaningful demographic data, mapping potential customers, competitors and suppliers, as well as identifying possible advertising avenues.
When he was preparing to launch National Storm Shelters in 2010, company president Jeff Turner conducted market research at trade shows and held discussions with potential customers and competitors. This confirmed what his instincts told him: that he had a winning product. The Smyrna, Tenn.-based company, which designs, manufactures and installs above- and below-ground safe rooms and storm shelters, was profitable virtually since day one and now generates about $1.5 million in annual sales.
As valuable as prelaunch research and planning can be, beware of paralysis by over-analysis, especially when you lack the luxury of time, cautions Fish from Integra Staffing. "Defining your sandbox is important. But don't over-think or over-plan, and don't put a lot of stock in sales forecasts."
You're bound to have questions about strategy and practicalities leading up to launch. To get answers without ringing up an expensive consulting tab, enlist someone with the acumen and willingness to provide advice, coaching and skills to augment those you lack. A former boss provided free advice to Ostermiller initially, then became a paid advisor once Altitude Digital could afford the expense.

Day 3

Build out your brand

A brand identity, including a name and a professional-looking logo, can bring instant legitimacy, even before launch. For DIYers, online tools like LogoMaker offer libraries of icons, color combinations and other elements to help develop a logo fast--no design expertise required. Services such as Logoworks are available if you want the work done for you quickly and inexpensively. Once you have your logo nailed down, take your file to a quick-turnaround print service for letterhead, business cards and marketing collateral such as posters, mailers and sales sheets.
In most cases, startups need some kind of web presence to solidify their brand identity (see "The quick-start startup" on page 20). Don't forget to stake out a position on Facebook, Twitter, Pinterest, Instagram and LinkedIn. You may not use social media right now, but you want to plant your flag ASAP.

Day 4

Incorporate the business

The nature of the startup dictates the extent to which it should rely on an attorney to incorporate, trademark ideas/products, formalize partnership agreements, etc. While it's best to let an attorney tackle any complex legal matters, Friedman of College Hunks Hauling Junk suggests considering some of the numerous online tools available to help you handle simple undertakings yourself. "Our first bill from an attorney to set up an LLC was $1,500. Little did we know we could have done that ourselves for $300 online," he says.

Day 5

Set up a lean machine

With the clock ticking toward launch, Ostermiller needed help. He found it on Craigslist, taking on two unpaid interns (both recent college grads) whom he immediately put to work--one on sales and one on operations--with the promise to hire them full time after 90 days if things went well.
With no office yet, Ostermiller's interns worked from coffee shops while he did so from his kitchen table. Likewise, Friedman's parents' basement served as the first office for College Hunks Hauling Junk. For Fish and Integra Staffing, a modest office, spartanly furnished with used furniture, sufficed. From the outset, she says, the goal was to "minimize the monthly burn."
Another tip: Beware the glowing promises of efficiency and speed from shiny new technology and software. "Unless technology is part of your core competency, you need to be careful how much you invest in technology early on, because it can become very expensive very quickly," Friedman says. "You really need to fine-tune your model before investing a lot in technology solutions."

Day 6

Start selling

Bringing in profits means making sales. Ostermiller and his interns chased leads even before his company launched officially. Fish's sales efforts began with tireless networking. "I didn't have any money then, so I got my ass out of the chair and into the community," she says. "Any event in town with more than 25 people, I was there. Breakfast, lunch or dinner--it didn't matter."
To lay the marketing and sales groundwork for his startup, Friedman let people in his personal network know about his new venture. "We had a support network, a group of cheerleaders who were really inspired to help us with our idea before we launched."

Day 7

Work the media

To generate buzz and sales, make media relations a priority. As Turner and Friedman discovered, media outreach by a business owner can pay quick and substantial dividends. "I called different TV stations the first day we went to market to tell them about [National Storm Shelters] and ended up on the 5 o'clock news," Turner says. "That was huge!"
Similarly, right around the time of its launch, College Hunks got a major boost from an article that landed in The Washington Post thanks to Friedman placing a call to a reporter there. "We shot high, and it got us on the front page of the Metro section," he says. "Our phone rang off the hook from that article."

Day 8

Fake it to make it

Success is often a self-fulfilling prophecy. However modest your beginnings, however short your track record, think big and act like you belong. "We were scraping by, but we walked, talked and acted like a bigger company," Friedman says.
College Hunks launched with an 800 number, a memorable logo and a website that provided e-mail addresses for a range of company departments (pr@…, marketing@…, HR@…), all of which funneled back to Friedman and his partner. "It made us look like we were an established business," Friedman says. "Having that image not only gave us confidence, it established a level of credibility and confidence in the consumer's mind. I think that's what got us those large corporate accounts early on."
Fish took a different tack. She says she invested in a receptionist prior to launch, primarily to impart a sense of professionalism to callers.

Day 9

Work in and on your business

For startup entrepreneurs, the fast route to profitability often means working in and on the business concurrently--at least in the first days and weeks. It's a constant battle for time between hustling up new business and taking care of new customers with outstanding service. "We were at the dump at 5 a.m., doing all the physical stuff, while also doing all the customer-facing stuff whenever we could," Friedman says.
When the day-to-day workload from the business becomes too heavy--a good sign, because it means you have customers--it's time to move tasks such as strategic planning, hiring and marketing programs to the back burner. Focus on generating cash flow first, Friedman suggests.

Day 10

Throw a party

With the foundation for your business set, invite your network of contacts, vendors, friends, family, customers and prospects to a grand-opening celebration to generate buzz and goodwill within your community. Doing so solidifies your image, telling people you're open for business and you mean it.
At the party, take a breath, sip some champagne, make a speech thanking everyone who's helped and seek feedback from your guests. In short order, you've created your first focus group, one that will likely provide you with a laundry list of tweaks, ideas and improvements that you can start on tomorrow.


 

VALUE PROPOSITION OF AAP

 A value proposition is a promise of value to be delivered and a belief from the customer that value will be experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.

In marketing, a customer value proposition (CVP) consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment.

 

Every brand makes proposition. But proposition making process is not simple as it may appear. For many strategists a proposition is equal to sloganeering and some take it as an opportunity to release their creative juices. Some marketing minds assume more is better/effective and hence end up linking their brands with many (too many) and conflicting propositions. Strategists also fail to appreciate the difference between their jobs as creator/designer which is essentially is high cognitive state and consumers’ state is usually passive or inactive. Brand propositions can touch chords which may range from lower to higher end.

Crucial to designing a proposition is that that it must end up motivating prospects/customers into desired behaviors. Proposition must clearly signify what a brand offers in terms of attribute, benefits and values. Most successful brands singularly stand for something which has high resonance value and it also stands the brand apart from others in the fray. People often equate brand proposition with unique selling proposition. Propositions differ in their extent of connection development. Consider the following:

• AAP’s proposition is anticorruption or honest government (Swaraj)
• Congress: Development, basically infrastructure or material development
• BJP: Unclear message- vegetable prices, electricity prices, ‘sewak’, development.

Let us test the effectiveness of these propositions.
Clarity- clearly AAP and Congress score over BJP for it is not clear what their core proposition is to their voters. This has resulted from inconsistency of messages and their lack of convergence on to broad theme.

Level: How do these propositions stack up in their hierarchical ordering-lower level/tactical to higher order value? The value embedded in AAP’s proposition appeals to soul or high order existence. It allows you to be a part of a great national transformation. It taps into the need to achieve high order consciousness. Congress’s proposition appeals to material wellbeing. BJP’s discourse on price of vegetable and electricity does not go beyond daily mundane existence. Consider the brilliance of AAP’s proposition, it promises clean governance and once that happens the infrastructure and price rise will automatically get in line.

Connection: Brands become powerful when they develop emotional connections with their audience. Explore how powerful is the promise of honest governance and what impact do white caps have when they announce, ‘mujhe swaraj chaheye’.  Symbolically they invite everyone who has been victim of corruption (probably everyone) to join the second battle for the country. You are reminded of Gandhi, Nehru, Patel, Azad, Shastri, and others who sacrificed not aggrandized. AAP seems to be giving ordinary people an extraordinary opportunity to contribute to nation building. It has positioned itself as a movement against the establishment. It is Pepsi in Delhi’s political scene, antiestablishment, rebel, and challenger.

Congress’s development platform invites negative emotions for flyovers, cluster buses and roads are not the perfect substitute for high inflation in commodities of everyday consumption. The happy faces in ads do not resonate with sad faces of real people who are bitten by inflation. They invite strong counter arguments. In Delhi BJP’s campaign lacks focus and appeal and hence a diffused and suffers from ambiguity. Consequently it fails to hook up an emotional connection with people who are either fall into the category of ‘indifferent’ or ‘swingers’. It is these people who are likely to be the kingmakers this time.

Political strategists often fail to target their campaigns at people who matter- swingers and indifferent- instead create campaigns for those who are already their loyalists. It must be understood that campaigns are designed by loyalists but not for loyalists.

Here I personally accept that AAP is most strong party to come in power and its agenda is transparent. If we want India corruption free must vote for AAP in Delhi election.

Reference : Marketing Crow

NICHE MARKETING

Concentrating all marketing efforts on a small but specific and well defined segment of the population. Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond.

For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox target a niche of sports lovers. Every product can be defined by its market niche.

NICHE PRODUCT

A good or service with features that appeal to a particular market subgroup. A typical niche product will be easily distinguished from other products, and it will also be produced and sold for specialized uses within its corresponding Niche Market.

NICHE STRATEGY

A marketing approach for a good or service with features that appeal to a particular minority market  subgroup. A typical product marketed using a niche strategy will be easily distinguished from other products, and it will also be produced and sold for specialized uses within its corresponding Niche Market.

Five Stages to Fully Address the Niche Opportunity

 

There are five stages to consider when attempting to address niche marketing opportunities. These stages are strategic planning, defining the mission and objectives, strategies and action, monitoring key projects and objectives, and organizational realignment.

 

1. Strategic Planning

  Strategic planning encompasses many of the issues discussed above, including the assessment of market opportunities, as well as an inventory of internal resources, values, potential strengths/capabilities (addressed in more depth below), and any weaknesses/shortfalls of the current operation. In short, the overall strategy provides a "road map" to attaining the objectives of the operation and its owners, while staying true to their vision and mission.
 

2. Define Mission and Objectives

 The mission is the operation’s statement about why it exists, and sets the tone of what the company and its products’ image should be at the very highest level of the operation. There should be a broad-based buy-in to this mission from owners, employees, other important stakeholders, and maybe even targeted customers. In essence, the mission explains the culture of the business to both internal players and external consumers.

 

3. Strategies and Action

 To begin taking specific actions, with timelines and measurable outcomes that will support the broader mission, strategies, and goals of the business, it may be most effective to develop a work plan. That plan should include a key personnel list, timeline for the activity, a list of resources or budget needed to execute the plans, and any other relevant information (partners, pertinent legal or regulatory issues, and connections to other pieces of the work plan). Although a sufficient level of detail on all the actions to be taken may seem overwhelming, it will provide a realistic inventory of what needs to be accomplished and divide the actions into small enough units to facilitate timely
 action (rather than inaction due to being overwhelmed by the scale of larger goals of the company). Remember that actions are both effective and realistic steps to achieving the operation’s strategy. In short, this step requires the operation to build a plan of execution.  

4. Monitoring Key Projects/Objectives

 Monitoring a firm’s progress towards its goals is one of the most crucial actions during the first years of a new (or significantly changed) enterprise. Determine key projects and areas of potential success within the work plan established above, and then decide on specific measurable elements that will allow the operation to monitor success. These elements should not all be financial indicators, as too many businesses focus on financial goals before they can realistically be met. In addition to monitoring sales growth, visitor numbers, and profits, the operation might also monitor full deployment of resources (land, buildings, employees, etc.), customer satisfaction and return visits, or employee feedback on their participation in the enterprise.

5. Organizational Realignment

 In order to clearly link the objectives and strategies of any new niche venture, it is likely that the management will have to consider an organizational realignment of resources, human capital and marketing efforts. To be successful in niche marketing, it is important to align the structure and culture of the business and the personal lives of the owners in ways that are compatible with the niche the business hopes to operate within. This may include a change in the levels of family involvement, the privacy or solitude available on the farm or ranch, the choice to "brand" the owners’ family heritage and approach to farming, or even relinquishing control of some business activities to marketing or community partners.

The Decision to Market in a Niche

 

Even after developing a plan to enter a niche market, it is important to pick one point in the planning process to finally decide whether the new niche venture is feasible, and if so, fully commit to the plan. There are a number of elements that should enter into that final decision:

  

• Acknowledge the present

• Be aware of intent/vision

• Control dreams

• Determine the risks

Note that the first two are deliberate visioning and the second two are bringing realism.

In the end, the management and stakeholders of a farm or ranch must consider how to answer the question of whether their operation needs growth, change, or exit from the market. Niche marketing is only one of the potential enterprise diversification strategies that may affect this "big picture" thinking.
  

 

Cosmetic Marketing in India

Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup products is being used since olden days and nowadays it appear like a booming economy in India which would be the largest cosmetic consuming country in a next few decades. While the demand of beautifying substances are growing day by day, a large number of local as well as international manufacturers gradually extend their ranges and products in different provinces of India.

Since 1991 with the liberalization along with the crowning of many Indian women at international beauty pageants, the cosmetic industry has come into the limelight in a bigger way. Subsequently their has been a change in the cosmetic consumption and this trend is fueling growth in the cosmetic sector. Indian cosmetic Industry had rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008. While this is due to the improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum during the period 2009-2012. In the Indian Cosmetic Industry both electronic as well as print media are playing an important role in spreading awareness about the cosmetic products and developing fashion consciousness among the Indian consumers.  

 

 

Due to the development of satellite television and a number of television channels as well as the Internet in the modern day, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fueling growth into the Cosmetic industry in India by making Indians to realize the importance of having good looks and appearances. Today most of the cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, cosmetic manufactures in India have received orders from overseas markets; for example - Indian herbal cosmetic products have a tremendous demand in the international market. 

 

   The Indian Cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%, according to an analysis of the sector.Today herbal cosmetics industry is driving growth in the beauty business in India and is expected to grow at a rate of 7% as more people shun chemical products in favour of organic ones.

The emphasis of the herbal cosmetic has been on the spectacular growth of the herbal and ayurvedic beauty products business as conveyed by beauty expert Shahnaz Husain who was the first to introduce the concept of ayurvedic cosmetics to the world when she launched her products way back in 1970. Today, the Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus and many more. The Indian cosmetics industry has emerged as one of the unique industries holding huge potential for further growth. In 2009, the cosmetics industry registered sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. Indian cosmetics Industry has mainly been driven by improved purchasing power and rising fashion consciousness of the Indian population and industry players spending readily on the promotional activities to increase consumer awareness and develop their products.

According to a new research report, the Indian Cosmetics Industry is expected to witness impressive growth rate in the near future owing to rising beauty concern of both men and women. Today the industry holds promising growth prospects for both existing and new players.

The baseline is that there has been a rise in variety of products offered by the industry players in the country. The companies have started going for rural expansion and are offering specialized products to generate revenues from all the corners of the country. Improvement and strengthening of the Indian economy in the coming years will also pave the way for the Indian cosmetics market over the forecast period and develop the Cosmetic Industry.

The Indian Cosmetic market which traditionally a stronghold of a few major Indian players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last decade. India is a very price sensitive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for them.   According to analysis and figures given by the Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million and showing growth between 15-20% per annum. The overall beauty and wellness market that includes beauty services stands at about US$2,680 million, according to CII estimates.   The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic industry is $ 4.6 billion. The current size of the Indian Cosmetic Industry is approx US$ 600 million. Among these fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20% per annum across different segments of the cosmetics industry reflecting with an increasing demand for all kinds of beauty and personal care product. Growth in the Indian Cosmetic Industry has come mainly from the low and medium-priced categories that account for 90 % of the cosmetics market in terms of volume.   Costs for importing other products are much higher than producing it in the country. India usually allows the entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39.2%.   TOP LEADING COMPANIES:   Lakmé is the Indian brand of cosmetics, owned by Unilever. It started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it is named after the French opera Lakmé, which itself is the French form of Lakshmi, the goddess of wealth who has is also renowned for her beauty. Revlon is an American cosmetic for skin care, fragrance, and Personal Care Company founded in 1932.           Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by the brothers Jonas AF Jochnick and Robert AF Jochnick. The L'Oréal Group is the world's largest cosmetics and Beauty Company. It concentrates on hair colour, skin care, sun protection, make-up, perfumes and hair care.           Chambor cosmetic line is a blend of the finest traditions in terms of radiant color, soft texture and skin accentuator.           Maybelline is a makeup brand sold worldwide and owned by L'Oréal. Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world. Make-up Art Cosmetics or MAC Cosmetics, is a manufacturer of cosmetics which was founded in Toronto, Canada by Frank Toskan and Frank Angelo in 1984 . ColorBar cosmetics are one of the leading brands of color cosmetics in India.            Street Wear is a young, funky and hip brand which globally is positioned at the young and trendy shopper and the range consists of about 30 SKUs covering categories like nail enamel, lipsticks, lip gloss, face make-up kits and eye shadows. LATEST DEVELOPMENT : According to Indian Cosmetic Sector Analysis (2009-2012), the Indian cosmetics industry is expected to witness fast growth rate in the coming years on the back of an increase in the consumption of beauty products. Owing to growing disposable income of the middle class households and changing lifestyle, it is expected that the cosmetics industry will grow at a CAGR of around 17% during 2010-2013.                   A study even shows that affordability and rising consumer base were the main drivers behind the high cosmetic sales of around INR 356.6 Billion (US$ 7.1 Billion) in 2009. Market players are getting lucrative and good opportunities as people have become more beauty conscious due to changing lifestyle and spreading consumer awareness. According to ASSOCHAM the size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched. With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will grow to around 1.4 billion dollars from current level of 950 million. It is projected to grow at a CAGR of around 7% during the forecast period. Indian Cosmetics Industry is set for a significant growth depending on the capability of the manufacturers to market their products. Products that claim to renew cells, minimize pores, and restore hydration have created an $83 billion worldwide market.          Due to the optimistic assessment the domestic cosmetic and toiletries industry show that with increased awakening which is growing even in rural India, its size will grow in next 2-3 years to around US$ 1400 million from current level of US$ 950 million. Till then India's per capita consumption of cosmetic and toiletries products could be on par with that of China which currently is US$ 1.5, says ASSOCHAM analysis.

 

8 P’s of Luxury Brand Marketing

"I think every girl deep inside dreams about having the money to be able to buy the Louis Vuitton bag or being at the red carpet herself and wear a beautiful Chanel dress" - Qualitative research, UAE, 2010.


With reference to Bates Pan Gulf (BPG Group), Dubai, UAE


 Luxury brands have always been a fascinating space and luxury brand marketing one of the most complicated ones. So, going by the above consumer quote, this paper attempts to decode what makes Louis Vuitton, Louis Vuitton; Chanel, Chanel – in simple words what makes a luxury brand desirable? What are the ingredients/components that make up a luxury brand? Is it the physical / functional attributes like the product quality, craftsmanship, design, technology? As one respondent in one of the qualitative research in UAE said "When you buy something with really high-quality, you can genuinely feel the difference. It is in the touch, the feel of the material; it’s in the smoothness, it’s in its minute details..."

Or is it the self-asserting emotional stimulation of letting the others know that I’ve arrived & I have a penchant for finer things in life not common to many? A respondent said "I bought my BMW, just to keep my key on the table during the meeting." Another respondent said "If I stop at a signal I feel I will attract attention of people".

Or is it that luxury brands are just the stepladder to move to the right circle or an appropriate thing to have or wear in that circle? A respondent said "There is a proverb which says if you wear nice shoes you enter nice place".

3 MOTIVATIONS - SELF ASSERTION, DIFFERENTIATION AND GENUINE APPRECIATION FOR PRODUCT EXCELLENCE:

In my assessment, by-and-large the above are the three major motivators that drive people to desire and acquire luxury brands. That said, it’s important to acknowledge that they are not mutually exclusive.

Exclusivity has always been connected to luxury brands. But from the consumer’s perspective the definition of exclusivity goes through an evolution. At the early stage, having the ability or affluence to own a luxury brand desirable and recognizable by everyone is exclusivity. It is a means by which consumers assert themselves - whether it is to fit-in or simply to make a statement.



As the consumer moves on and with more people joining the ‘ownership’ circle, just owning a recognizable symbol is not enough – the new need to "differentiate" sets in to further confirm their social status and to stand-out among the equals. The source of exclusivity, then, can manifest in form of acquiring limited editions or something with extraordinary product capabilities or rare materials, craftsmanship; it can also be driven by brand’s distinctive personality or simply the knowledge of the brand legacy. One can also observe that people who seek differentiation tend to have larger repertoire of luxury brands, have a choice of not-so-common luxury brands, have a definitive reason for their choice and sometime even prefer to stick to specialist brands. Few of the consumer quotes (below) from various quantitative researches in UAE emphasize this point:  "I prefer to buy my watch from an expert watch-brand, not a fashion label."

"I like things that are exclusive and specialized like the really top suit brands …and ties. You know, where one tie is the price of a good Armani suit, but that you’ll only find in Italy, only at one location and not in any branches anywhere else in the world. That’s like once in a while you want to buy something that’s special and wear it a few times on specific occasions."   While genuine appreciation for product excellent needs no explanation, as mentioned earlier it is not mutually exclusive. In simple words, it does not mean that people who acquire luxury brands for either asserting-self or differentiation have no appreciation and love for beautiful products. But, then there are others who buy luxury without having any baggage of what others think. They buy it because they genuinely love the physical / functional attributes that the product delivers or because they find a profound connection with the brand / the brand story.

The bottom line is that whether it is self assertion, differentiation or genuine appreciation for product excellence, these stories and the aura that surrounds the brands is what makes luxury brands desirable. Packaged as the 8 P’s of luxury brand marketing, this paper attempts to bring together the elements and interplay between them that are employed in the luxury brand marketing mix. Some of the elements have been named to fit the 8P packaging and therefore, my humble request to readers will be to take the broad-point made versus getting stuck in semantics. Yet, another point important to acknowledge is that the degree of significance of these elements may vary from brand-to-brand and market-to-market. The point-of-view of this paper is more that of a practitioner, than a theoretician.

THE 8 P’S – PILLARS OF LUXURY BRAND MARKETING:

PERFORMANCE:  Performance refers to the delivery of superior experience of a luxury brand at two levels – first, at a product level and second, at an experiential level.  At a product level, fundamentally it must satisfy the functional and utilitarian characteristic as well as deliver on its practical physical attributes – a recipe of quality or design excellence ingredients like craftsmanship, precision, materials, high quality, unique design, extraordinary product capabilities, technology & innovation.

A luxury brand must perform at an experiential level as well, i.e. the emotional value of the brand the consumers buy into – beyond what the product is to what it represents. For example: Rolex stands of symbol of heroic achievement & Tiffany is a symbol of love and beauty.

PEDIGREE:  
Many luxury brands have a rich pedigree and extraordinary history that turn in to an inseparable part of the brand’s mystique. This mystique is generally built around the exceptional legendary founder character of the past, making up an integral part of the brand story and brand personality.

So, when consumers buy say a Cartier or a Chanel product - it is not only because of the product performance factor, but subconsciously they are also influenced by the brand’s rich lineage, heritage and the years of mastery.

PAUCITY:  Over-revelation-and-distribution of luxury brand can cause dilution of luxury character, hence many brands try to maintain the perception that the goods are scarce. Case in point - Burberry diluted its brand image in the UK in the early 2000s by over-licensing its brand, thus reducing its image as a brand whose products were consumed only by the elite. Gucci, now largely sold in directly-owned stores, following a nearly crippling attempt to widely license their brand in the 1970s and 1980s.

Broadly, there’s natural paucity (the actual scarcity), the technology-led paucity and the tactical- driven paucity.  Natural paucity is triggered by scarce ingredients like platinum, diamonds, etc. and/or those goods that require exceptional human expertise, for example handcrafted quality that constraints the mass production.

PERSONA:  The persona of a luxury brand is largely a result of – first, its distinctive projection plus coherence of its applications across consumer touch-points and second, the brand communication through its advertising.  The visual brand identity captures the brand’s personality, mystique & emotional values in a nutshell. The distinct and consistent orchestration of the identity is central to establishing the visibility, familiarity & common identifiable brand imagery. The visual brand orchestration can manifest by way of its coherent application of its identity, the brand color(s), the other design elements like icons, the uniquely identifiable design, branded environment and even the tone-of-voice.

While the luxury brand’s visual identity is a fairly stable factor, luxury brand advertising is a more dynamic and versatile marketing vehicle. While the pedigree of the brand has its role, keeping-up the contemporary-appeal and the newness-factor is crucial for enduring brand relevance. Therefore, luxury advertising not only needs to generate the desire for the seasonal collection, but at the same time it must also enhance the brand’s cool-quotient, thereby making it continuously desirable and aspirational.

While the luxury brand’s visual identity is a fairly stable factor, luxury brand advertising is a more dynamic and versatile marketing vehicle. While the pedigree of the brand has its role, keeping-up the contemporary-appeal and the newness-factor is crucial for enduring brand relevance. Therefore, luxury advertising not only needs to generate the desire for the seasonal collection, but at the same time it must also enhance the brand’s cool-quotient, thereby making it continuously desirable and aspirational. At an overall level, luxury advertising messages can be observed:  As more emotional and sensual to distance it from mass-premium brands  Create a world and an aura that is truly exceptional to their brand signature  Generate major differentiation in its production and execution

 

One of the relatively new trends within luxury brand communication is the use of the long-form-commercials or the short-film-videos to generate interest with the online audience. It is clearly a pursuit where luxury brands are looking to bridge the gap between the familiar world of print and the fast-evolving world of online. It has also proved impactful as in a matter of few minutes, the viewer can have a clear understanding of the brand image or the story the brand is trying to convey or simply promotion of the new collection.

Apart from these, with the intent of enhancing the ‘emotional connections’ with discerning mindsets, luxury brands have been exploring the digital space by engaging them in their activation programs. The objective is to generate a genuine affinity with the brand that transcends beyond the product, to an extent where, the consumers feel that they have found a soul mate.

Some of the luxury brands have also utilized the social media. The objective may not necessarily be, as deep as, engaging the audience in their storytelling, but it has been done largely to generate the desire or the lust for the brand or the product. It is also an effective tool to keep-up the contemporary-appeal and the newness-factor by having a continuous dialogue.
PUBLIC FIGURES:
 Public-figure or celebrities have been traditionally employed as one of the marketing mix in luxury brand advertising and they still continue to garner attention, credibility and impact. Public figures can span from film-stars to music personalities, from sports personalities to royal families and even the designer themselves. But because celebrity endorsements are no longer exclusive to luxury space and extensively used (and abused) across mass categories, it take a different meaning when it comes to luxury brand endorsement.

Not only does the public figure’s associated values and personality have to resonate with that of the luxury brand’s aura, but there’s a distinct difference in the way celebrity role is crafted, executed and strategically utilized. Beyond traditional advertising (largely print in selected media), less in-your-face advertising tools are employed like

accessorization or dressing celebrities for their walk down the red carpet, product placements within movies and television programs, invites to special events. This strategy attempts to remove the appearance of "selling" while still promoting the product by making it seem as a part of the celebrity’s lives, thereby positively affecting consumer’s attitudes, brand value & purchase intention.
Long-form-commercials / short-films have also utilized the celebrity-factor. Chanel for instance recently created 3-minute short film with actress Keira Knightley who replaced Kate Moss in its ads for its Coco Mademoiselle fragrance. Other previous faces of Chanel have included French star Catherine Deneuve and Nicole Kidman, who represented Chanel No. 5.

Similarly, as a part of their ‘core values’ campaign, Louis Vuitton used their website as the online medium to showcase their celebrity endorser’s journey, their story to bring to life how the brand has been promoting the art of travel and inspiring legendary journeys.

PLACEMENT: The retail branded environment in luxury branding is all about heightening the consumer’s brand experience and amplifying the brand aura. Hence, the branded environment, the movement of truth, is where it must "live" the brand by orchestrating immaculate detailing that engages all senses of the discerning audience. Starting from the choice of store location, the chain of touch-points consumer interacts, the salesperson’s presentation and the impact of each touch-point is critical in creating a unique indulging experience

That said, today’s evolving luxury consumers are increasingly seeking beyond the typical sophisticated, over-the-top, cosmetically elegant presentation or even the exclusive invites, privileged previews. With the increasing democratization of luxury brands and the rapid emergence of masstige brands – the luxury consumers have become more discriminating and demanding. They are seeking a more knowledgeable and professional assistance, a trusted and reliable collaboration helping them to manage their stature and lifestyle. Not only has this led to the new business offerings like Quintessentially (more below), but also luxury brands are increasingly investing in training and empowering their sales staff.

Another important point to note within the placement factor is that it is not limited to the physical environment where the brand retails, but it extends to all the environments or consumer touch-points that the brand associates itself with. This spans from the extremely selective niche media where it advertises to the sports, the events, art, conversations that it places itself with.

If luxury is about environment and aesthetics, then fashion magazines like Vogue, InStyle, Vanity Fair, Harper’s Bazaar, etc. provide that complementing environment and aesthetics for luxury brand to advertise in print media.

PR (PUBLIC RELATIONS):
 PR in luxury branding plays an enormous role in image proliferation of the brand, thereby subtly influencing public opinion. It is also employed to convey other supporting messages and attributes of the brand which cannot be explicitly captured in advertising, but by no means are less important to create brand’s personality, mystique and emotional values – whether it’s via the pedigree factor or via public-figure any of the previous 7 P’s mentioned.

It is also a sophisticated branding machine for maintaining ongoing relevance and dialogue with the luxury consumer, especially so in fashion, technology and seasonal trends driven categories. At a tactical level, PR is utilized to generate buzz & convey the brand news, point of views of inspirers and influencers (celebrity talk or the designer speak), a crucial support for brand activation (like the fashion weeks, sport-events, themed previews, etc.).  PRICING:
 Pricing plays a quite a big role in the way consumers perceive luxury brands. Consciously or sub-consciously, consumers tend to generate a mental luxury stature or image with the price-range that the brand operates. Therefore, it is important for luxury brands to price thmeselves right – as setting the price lower than the consumer expectation and willingness to pay can potentially harm the brand value, whereas the reverse can potentially not given enough justification for consumers to go ahead and buy.

The pricing strategy in luxury brands gained spotlight in the recent past not only because of the challenging economic environment, but because of more informed-and-exposed consumers who are more discriminating and demanding, for whom premium pricing without substance doesn’t imply luxury. A recent research by Unity Marketing suggests that affluent shoppers won’t spend ten-times more for something only three times better. The luxury-brands must, therefore, justify their price through the interplay of the 7P’s mentioned on top, thereby keep-up and maintain a higher perceived value.

 The sales promotions also tend to be handled differently by luxury marketers. While few have resorted to sales and discounts, most others play it by adding more value to the purchase like gift with purchase, gift-certificates or rebates for the next purchase, multiple item discounts, online or email exclusives, more loyalty points, no shipping and handling charges by online retailers, etc. Luxury brands also use the channel of luxury retailers like Harvey Nichols, Saks 5th Avenue who offer annual sales by offering them slightly lower prices.

KEY LEARNINGS & TAKEOUTS:
 In conclusion, the key to luxury brand marketing boils down to the following three points:

 Product excellence by itself in not enough, the luxury brand must perform at an experiential level as well. As luxury consumers evolve, not only these act as points of differentiation, but also as ‘substance’ to justify a premium value and pricing.

 While pedigree factor is important to exuberate the years of mastery or lineage, it is crucial to generate ongoing relevance and dynamism through the persona, PR & public-figure factor.
  Luxury brands must continue to maintain a certain degree of exclusivity and stature with the paucity factor and the placement factor – from the retail experience to the touch-points it associates itself with.

The 8 P’s of luxury brand marketing can provide a holistic framework to luxury marketers. The 8 P’s may not be a "universal methodology", yet it presents a strong analytical "toolbox" to audit and leverage the brand potential. That said, a pragmatic approach must be underlined, as the situation and challenges would differ from brand-to-brand and market-to-market.