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Advanced studies thesis

How to enlarge the business scope and increase the brand equity of Lalique ? : a study on potential brand extensions and and analysis of the best target segments to leverage brand equity

SONAR|HES-SO

    2014

1 vol.

Mémoire de Master Advanced Studies (MAS): Haute école de gestion de Genève, 2014

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English The global luxury goods sector is outperforming the world economy with 6.5% versus 3.2% growth in 2013. While the average growth forecast for luxury goods until 2025 has been estimated at an annual rate of 8.5%, there are talks about an emerging “new normal” growth pattern of 4-6% per year for the industry. European brands still dominate the global luxury goods market worldwide and represent approximately 71% of global output. In terms of consumer, the importance of the “middle” class in emerging economies is accentuating and contributing to a large part of the estimated 10 million additional consumers of luxury goods which will enter every year until 2020. Especially sales to Asian customers continue their rise to reach 51% of the total luxury goods market in 2013. While America has recently regained momentum, the mega trend of Asia’s growing significance is expected to continue. As a consequence of a constantly changing society, an interesting new consumer segmentation approach has arisen. This approach should enable luxury brands tackling their consumers rather based on spending and behavior habits than simple generalization on nationality. In the category analysis of glass and fine crystal manufacturers, 36 brands have been maintained and screened with a detection of only 3 relevant brands from outside Europe. The category of crystal manufacturer shows a substantial degree of regional clusters as displayed later in this report. With an average number of years of existence at just below 200 years, Lalique is clearly situated in the lower mid-field compared with its peers. On the other hand, it has been observed that the brand is above the average of 4 product segments in which crystal manufacturers have extended their activities over the years. This gives Lalique a substantial competitive advantage regarding its potential to reach more consumers than the competitors as the brand availability grows. With strongly present key values, Lalique has an elegant and exclusive French luxury aura and authentic origins in its current product segments linked with its heritage and tradition. For now, only affluent consumers, collectors and avant-gardists are aware about the brand. In consequence, the availability, familiarity and general awareness of Lalique has been pointed out as main axes on which the brand should put efforts in order to increase its brand equity. An investment into the promotion of the product segment with the widest distribution could be the fastest applicable option. With the aim of increasing Lalique’s operating revenues it is recommended to follow the highlighted trends in mobility, secret urbanism and home automation. The growing importance and prestige of high-speed rail and the ever increasing aviation traffic offers interesting growth opportunities with the extension in infrastructure. This venture would be justified by Lalique’s past work for high class transportation companies and show significant advantage in terms of brand awareness and visibility building. The second development direction is based on the growing desire of today’s society for unique experiences and exclusive environments. With the creation of a hospitality and gastronomy segment, offering a franchising concept for private member clubs, Lalique could excel in the display of its sophisticated and luxury lifestyle. Through the association with partners from the luxury hospitality industry, Lalique should furthermore be able to extend its customer base and increase the familiarity with its brand segments. The third brand extension follows the opportunity of the trend towards an automated home in the aspects of entertainment, security and lighting. Especially the new luxury consumer from generation X and Y strive for interconnected and easy living with style. While partnering with a strong high-end entertainment brand and a security specialist, Lalique could position itself at the forefront of luxury home automation. Even though the technological aspect might not respond to the brand identity at first sight, one could argue that this venture would represent the will to innovate of René Lalique when tackling new projects. For this product category, a newly developed E-Commerce site and additional retail partners would increase the availability and have positive influence on the awareness of Lalique. In turn, the brand equity would increase while fostering the position of a contemporary lifestyle brand.
Language
  • English
Classification
Economics
Notes
  • Haute école de gestion Genève
  • Formation continue
  • hesso:hegge
License
License undefined
Identifiers
  • RERO DOC 232868
  • RERO R007929986
Persistent URL
https://folia.unifr.ch/global/documents/314348
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