PROMOTIONAL STRATEGIES OF LUXURY BRAND

SUBMITTED IN PARTIAL FULLFILLMENT OF THE

REQUIREMENTS OF THE DEGREE OF

“Master of business ADMinisTRATion”

Uttranchal technical university, dehradun

Session (2018-2020)

Submitted to Submitted by

Prof. Bhakti Panwar Shubham Kumar

0181 MBA 073

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 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the

assistance & encouragement of other people. This one is certainly no
exception.”

On the very outset of this report, I would like to extend my sincere &
heartfelt obligation towards all the personages who have helped me
in this endeavor. Without their active guidance, help, cooperation &
management, I would have made headway in the project.

I am extremely thankful and pay my gratitude to our director, Sir B.P.

Pethiya, our HOD Dr. H.S. Grewal and our faculty mentor Prof. Bhakti
Panwar for their valuable guidance, help, cooperation on this
project.

I extend my gratitude to Doon Business School, Dehradun for giving

me this opportunity.

Any commission in this brief acknowledgement does not mean lack

of gratitude.
 TABLE OF CONTENTS

 INTRODUCTION
 RESEARCH OBJECTIVE
 RESEARCH METHODOLOGY
 SCOPE OF THE STUDY
 GRAPHICAL DATA INTERPRETATION
 FINDINGS & ANALYSIS
 LIMITATION OF THE STUDY
 CONCLUSIONS
 RECOMMENDATION
 ANNEXURE-QUESTIONNAIRE
 BIBLOGRAPHY

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 INTRODUCTION
Luxury Brands in India

“Luxury brands are brands whose ratio of functional utility to its

tangible price is subjective to factors more than its product
value."

India, since 15 years ago and now has seen a drastic shift, in
economic terms and consumer behavior too. Many global luxury
brands are planning for great expansion in India and Indian
customers are more than ready to spend on these high-end
luxury brands. India is set to evolve in a major way, making us
more prone to different marketing campaigns. We have observe
shifts in consumer behavior, growths in revenue of new entry
brands, decline in sales of trusted companies etc

Luxury brands have often been associated with the core

competences of innovation, artistic approach, exclusivity,
meticulous craftsmanship, accuracy, high quality and premium
pricing. These product attributes give the consumers the
satisfaction of not only owning expensive items but the extra-
added psychological benefits like esteem, prestige and a sense of
a high status that reminds them and others that they belong to an
exclusive group of only a select few, who can afford these
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prices.
The dissertation is entitled as “Promotional strategies of
Luxury Brands in India”. It focuses on the promotional
measures adopted by the Luxury Brands to strengthen their roots
in India. Also the study involves the major changes that have
taken place in these strategies over the years due to factors like
increase in individual income, promotional expenses etc.

This study, also throws light on the future course of this wave of
change. This includes, what these brands are planning for future
with reference to their promotional strategies so as to satisfy the
ever changing behavior pattern of the customer.

LUXURY WATCHES

The price range of luxury watches is anything from Rs 10,000 to

Rs 1 lakh, while the super luxury goes for anything upwards
from Rs 1 lakh to Rs 7-8 lakh a piece and even more.

There are 22 luxury brands selling in the market among which

are the likes of Cartier, Omega, Rado, Tag Heur, Maurice
Lacroix, Breguet among others. The luxury watches do not
obviously have high volumes. Showrooms selling luxury
watches might as well as sell one or two watches a day costing
about Rs 1 lakh but that is also profitable business.
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But is there really a market for these brands in the country?

Statistically speaking, the segment is about Rs amount 1,000

crores. there are still a lot of ways to grew this market and a
segment of unseen market which had been explored. In fact,
while the total watch market is estimate to be growing at about
8%, the watches section is grown at 20 per cent per annum.

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Christian Dior and Tag Heuer, we have been able to get a market
share of about 9-10 per cent in the luxury watches segment and
are targeting a share of about 20 per cent in a couple of years.
However, market study says so much competition in the market
is been seen, the investments that are made in the brands — on
distribution and marketing.

Not surprisingly, a major task for a brand striving to make a

base here is to convert the overseas purchases. Even as the total
duties on imported luxury watches in India are in the range of
60-85 per cent, all the brands are absorbing the duty element in
order to price the watches at par with the international markets.

APPARELS & ACCESSORIES

For international Apparels luxury brands, India is a tiny market

right now. The CEOs of these companies say India is going to
happen from 2015 onwards. Their huge hope is that India will
be like the Far East where they are completely oriented towards
European luxury brands.

When luxury brands forayed into the Indian Territory many

decades back, they had to make do with the five star hotels’
shopping arcades due to lack of decent luxury retail

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infrastructure in the country. Gradually, the space available at
the shopping arcades in five star hotels started depleting as the
number of brands foraying India increased. Also, luxury brands
entering India made it mandatory to have retail space as per
their standards.

The luxury retail scenario has changed since then. The real
estate firms in India realised the need for having luxurious
retail ambience to enhance their business prospects, and
built luxury malls. The initiative created opportunity for the
luxury brands.
.

GUCCI

Gucci has experienced many changes since it opened its first

luggage company in Florence in 1921. At first, it mainly sold
only luxury leather goods. Within a few years the store became
popular among international and affluent clientele. By the
1950’s Gucci’s global presence was established with its first
store in the US, a store in New York.

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 RESEARCH OBJECTIVES

In most lucid words this study focuses on “what impact does

the strengthening of Promotional strategies by luxury
brands has on the upward march of their sales”.

To get into detail of the above statement following points are

put forward, which would also emphasis on the significance of
the study:-

Understanding when these brands did actually started to

emerge; this study will determine the extent to which this
change has taken place till now.

The study will depict views from various angles like

increase in individual income, increase in promotional
expenses etc. so that the research could be balanced.

What are changes that have been implemented by these

luxury brands to grow in a developing country like India.

This study, would also try to forecast the future course of

this wave of change. So that the luxury brands could equip
themselves with the relevant promotional measures that
will be required to satisfy their customers.

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 RESEARCH METHODOLODY

Type of Research

Exploratory research has been used for the purpose of this study.
This study has been used because of the following reasons:

1. It helps the marketers to gather much information relating

to the subject on which they may have prior less
knowledge.

2. It establishes a platform on which organised research work can

be made.

3. Exploratory research helps in decision making process

which is used to develop a situation to access for minimum
time and cost possibilities.

4. It also helps in gathering information by conducting

interviews, group interviews, observations, case histories
and secondary data.

5. This research benefits the preliminary investigation by

adapting to various functions or activities and wide range
approaches.

Type of Data Used

The study will require usage of -

 Primary Data
 Secondary Data
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Sources of Primary Data

 Questionnaire

Sources of Secondary Data

 Internet
 Journals

Tools For Data Collection

Recording forms shall be used to extract information from the

target respondents by the way of direct or telephonic interviews.

Sample Size

 40 from actual /prospective users

 20 from the dealers / retail stores

The sampling is done on a very niche segment of customers that are the
actual users / prospective users of these luxury brands.

Questionnaire

The study requires usage of questionnaires, so that interview can

be conducted in a standardized and structured manner, to take
insight on both the perspective, the study requires having two

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different types of questionnaires for both the groups. Following
are the types of questions that will be included in the
questionnaire-

· Dichotomous or two- choice questions

· Multiple Choice questions

Sampling

The Basic idea of sampling is that by selecting some of the

element in a population in order to get first-hand information of
study. This study requires usage of samples from both the set of
populations that is from buyers and the dealers/ retailers
segment.

Scope of the Study

The study tries to portray a comprehensive picture of the

flux that promotion has brought to the luxury brands in
India.

The extent of the study covers following:-

1. This study would cover the 2 broad segments of luxury

brands, so that various point views could be gained by
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 which the study could be made more balanced in the
between the segments.

These segments are:

Luxury Watches

Apparels &Accessories

2. This study would bring all genres of promotional strategies

applies to these brands from advertising, direct selling to
the retail stores.

To get an insight on the strategies presently applied, and what

changes have to be made to the promotional
3. Measures to increase the share reasonably.

 With the increasing promotional expenses by the brands.

 With the increasing level of individual income.

DATA ANALYSIS
The first part of the presentation would focus on the Dealer/ Retailers, while the
following part would address the study on the Actual/ Prospective Users.
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DEALER/RETAIL STORE:

No. of years spent in the industry

No.of years in
industry

15% 15%

Less than 5
More than 5
More than 10

70%

The pie chart clearly reveals that the maximum % of the store owners are
in this industry from 5-10 years.

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 Changes in promotional strategies

The chart reveals that around 80% of the store owners believe in constant
promotional changes.

Do you make
constant
promotional
changes?

Yes
20% No
Most of the times

80%

Effect on sale after promotion

Effect on sale
after promotion

25%
30% In days’ time
In weeks’time
Sometimes no effect

45%
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  45% of the store owners believe that the effect of the
promotional measures can be seen in the weeks’ time.

 25% believe that the change comes out in the days’ time.

Whereas, there are about 30% owners that reveal that sometimes,
these measures does not show even little.

INCREASE IN SALE AFTER PROMOTION




 Yes
 No
Maybe


55% of the owners believe that there may be a chance of increase
in sales after promotion.

45% owners are sure about the increase in sales after the
promotional activities are carried out.

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


Change in purchase decision over the time.

Yes
No

Maximum percentages of store owners believe that there has been

a change in the purchase pattern of the customers over the time.

Actual/Prospective User
Purchase pattern

Once
Twice
More than twice

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 75% of the users go for the purchase of luxury brands more than
twice in a year.

10% users go for purchasing the luxury brands around 2 times a

year.

15% of the users afford to purchase such brands only once a year.

Factors on which purchase decision depend

Changing brand preferences with increase in purchase parity

Prefer changing
brands with
increase in
purchase capacity

5%
Yes
No

95%

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 95% of the customers believe that they would prefer going for a
more expensive brand with the increase in their purchasing
capacity.

 

Brand Recall

Brand Recall

Sometimes
Never

100%

100% customers believe that they can recall the brand just by the
glimpse of it.

It clearly reveals that with the increase in the promotional expenses

the awareness about the brands has also increased.

Factors influencing the

change of preference Promotion
New Launch
Quality
Celebrity Endorsement
Price
Looks

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 Change in promotional measures

New Product Launch attracts the customers.

Quality & looks also play an important role in the change in

preferences.

Celebrity endorsements also play a little role in the change of

preference.

Thus, the consumer preferences change with the change in promotion

styles, what attracts them most is the launch, looks & quality of the brand
besides the” Brand Name”

Physical Store
Online

Customers feel more comfortable buying in a physical store, as

the products are quite expensive.

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Few customers want to try buying from and e-commerce website
in order to check if the quality is same or discounts are better.

Price
Awareness
Accessibility
Other

Most of the customers felt brand awareness is the biggest factor in

evaluation of the brand.
Price plays an important role in brand evaluation.
How accessible is the brand is also an integral part.

Billboards
On Air promotion
Direct Selling

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 It was found that people were comfortable in direct selling rather
than any other form of selling.
On air promotion just contributed too little brand awareness.



Findings & Analysis

A research without utilizing the right method for analysis of the

finding is incomplete and invalid. So the data collected from the
survey has to go through an analysis process.

Reason for using percentage analysis is that, that even the most
unknowledgeable reader can understand the implications issue
and the direction in which the change is taking place.

A study requires the meaningful interpretation of the findings

from the data collected after the application of tests and other
analyses tools, so that one can refer this text to draw deductions
from this text without actually using the tools for analysis
himself.

This requires interpretations in the words that are most easily

understood by the people who are not related to the industry as
this study shall not only be useful to the luxury brands industry
but also to the industry personnel who are required to get the

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services from these industries.

Dealer/Retail Stores

Changes in promotion strategies are the need of the hour.

So, 80 % of the store owners go for continuous
promotional changes.

Very less percentage of store owners believe that the brand

can sell without promotion

The effect of sale after promotion, according to 45% of the store

owners can be seen within weeks’ time & 25% in the days’ time.

There can be situations when the promotion shows nonce



Limitations of the Study

Area of Coverage
The scope of the study is limited by the area of the coverage, the
geographical area that is covered in the study is limited to the
some locations of Bangalore only, which by the virtue will not
be able to reflect the enormity of the issue of the study.
.
Lack of Financial Support
Lack of funds during the project hinders the geographical area
of the coverage for which the study could have been made, the
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study, as written earlier is limited to India which makes the
opinion restricted to Indians only.
Lack of Availability of Data
The study is quiet pioneering in its nature, so a naturally there is
not much of the data and information available for the sake of
conducting this study, which makes the study loose on the
theoretical backing.

Non Responsiveness & Reach

The study would be conducted on an elite segment of people,
who will be belonging to the higher level of hierarchy, this will
be true for both the areas of respondents, hence it will be
difficult to reach to them and extract complete and relevant
information.

CONCLUSION

The awareness of luxury brands is increasing with the

increase in promotional budgets of the luxury brands. In a
country with the maximum population falling in middle
income group, it is very necessary for a brand like Omega
or Gucci to have its recall in the minds of consumer.

Constant promotional strategies have been adopted in

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 every way possible to match it with the Indian psychology
and to make the consumers prefer the brand.


 There is a definite change in the preference of consumers

with the increasing incomes. Previously the major factor
that influenced the purchase decision was price but
according to the survey done it is Promotion & brand
Name & Quality that matters in today’s scenario.


RECOMMENDATIONS

Luxury Brands should strengthen their retail base. Their

availability should not only be restricted to the metro
cities.

Distribution network needs to be strengthened. The brands

can have their products displayed through the big stores
that can accommodate a variety of brands in case of small
cities.

With the rising standards of living, people are moving

towards a richer lifestyle where there is an ample space for
these brands to grow. Just the right entry is needed.
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 Make the brand appearance connect with the emotions of
consumers. This connection gives a feeling of pleasure to
associate with an International Brand.


QUESTIONNAIRE
Name:
…………………………….
Designation…………………
……. Contact no.
……………………….

Q1. How often do you go for purchase of a luxury brand in a year?

Once
Twice
More than twice

Q2. On what factor does your purchase decision depends?

Promotion
Celebrity Endorsement
Brand
Quality
Price
 Others…………………………………….

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 Q3. Do you prefer shifting to some better brand on your
promotion/ if you earn better profits this year?

Yes
No

Q4. What promotional measures attract you the most?

Discounts/Sale
New Model Launch
New Celebrity Association
 Others………………………………..

Q5. Can you recall a brand just by a glimpse of it?

Sometimes
Never

Q6. If you prefer to change your brand, it is because of?

 Promotion
 New Launch
 Quality
 Celebrity Endorsement
 Price
 Looks

Q7. Where do you prefer to purchase the Product from?

Physical Store
Online

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 Q8. On what factors you evaluate a luxury brand?

Price
Availability
Accessibility
Other,

Q9. Which is the most effective marketing technique for Luxury Brands?
Billboards
On Air Promotion
Direct Selling


BIBLIOGRAPHY
1. http://www.thehindubusinessline.com/catalyst/2005/03/03/stories/
2005030300170200.htm

2. h t t p : / / w w w . g o o g l e . c o . i n /
#sclient=psy&hl=en&q=ACCESSORIES+LUXURY+BRANDS+IN+IND
IA&aq=f&aqi=&aql=&oq=&gs_rfai=&psj=1&fp=acfddbc32239e9b0

3. http://www.highbeam.com/doc/1G1-204171148.html

4. http://www.financialexpress.com/news/timex-plans-to-bring-more-luxury-
brands-to-india/708305/

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5. http://www.diamondvues.com/luxury_watches/

6. https://luxelore.com/luxury-shopping-india-luxury-brands-luxury-shops-
luxelore-liveonce.phttp://blogs.hindustantimes.com/tailor-
talk/2010/02/13/luxury-and-the-

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THANK YOU

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