Luxuay Brand Prakhar

8/13/2019 Luxuay Brand Prakhar

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A STUDY ON CREATION OF LUXURY BRAND

SILK CHIP TECHNOLOGIES

A project report submitted to

SCHOOL OF MANAGEMENT

In partial fulfillment of the requirements for the award of the

degree Of

MASTER OF BUSINESS ADMINISTRATION

By

RAGHUVARAN.J.D

REG.NO.35080431

Under the guidance of

MR.SENTHIL KUMAR

FACULTY MEMBER

SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY

KATTANKULATHUR !03"03

MAY "010


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BONAFIDE CERTIFICATE

This is to certify that this project report titled #A STUDY ON CREATION

OF LUXURY BRAND AT SILK CHIP TECHNOLOGIES$ is the bonafide

work of M%. RAGHUVARAN.J.D& R'(.)*+ 35080431 who carried out the

research under M%. S'),-/ 2%& F/, M'26'%.Certified further that to the

best of my knowledge the work reported herein does not form part of any other

project report or dissertation on the basis of which a degree or award was conferred

on an earlier occasion on this or any other candidate.

S(),%' *7 ),'%)/ (' S(),%' *7 HOD

9M%. S'),-/ K2%:

D,'+

P/'+


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ACKNO>LEDGEMENT

I am thankful to the D%. JAYSHREE SURESH& D') ? SCHOOL OF MANAGEMENT&

SRM UNIVERSITY gi"en me a great opportunity to do this project work and M%. PRIYA

CHANDRAPRAKASH& S')*% M)('% HR& SI-1 C2I& T/C2+0-03I/S4 C2/++,I

for gi"ing me an opportunity to work along with the 2!,+ R/S0!RC/ )epartment in

Chennai . I take this opportunity to thank those who helped me to make this project4 a better

work through their constructi"e criticism4 helpful suggestions and o"erall support.

I sincerely thank my &roject 3uide M%.S'),-/ K2%& S')*% P%*7'==*% School of

anagement4 and SR !+I5/RSIT for his continuous encouragement 6 1ey oti"ation for

my project works. and I would like to thank also M%. SAFI& A===,), M)('%

9MARKETING DEPARTMENT:& SILK CHIP TECHNOLOGIES for e7tending their Co$

operation4 support and /7perience right from conceptuali8ations to the completion of the project.

-ast but not the least4 I must acknowledge the encouragement and help gi"en by my belo"ed

parents4 friends4 teachers4 family members4 whose best wishes and emotional support ha"e

enabled me to completed this project

RAGHUVARAN.J.D

.#.,. II /,R

School of anagement

SR !ni"ersity


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TABLE OF CONTENTS

CHAPTER

NO PARTICULARS PAGE NO

ABSTRACT 1

I INTRODUCTION "

INDUSTRY PROFILE !

COMPANY PROFILE 13

OBJECTIVE FOR THE STUDY "4

II RESEARCH METHODOLOGY "5

LIMITATION OF THE STUDY 30

III DATA ANALYSIS AND INTERPRETATION 31

IV FINDINGS AND SUGGESTIONS !3

V CONCLUSION !5

APPENDIX !!

BIBILIOGRAPHY !@


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LIST OF TABLES

S.N

O TITLE PAGE NO

1 REASON FOR LUXURY PRODUCTS PREFERABLE 31

" >HAT CONSTITUTES A LUXURY PRODUCTS 33

3 LOOK FOR LUXURY PRODUCTS 35

4 EVALUATION BEFORE LAUNCHING 3

5 PREFERING LUXURY PRODUCTS 3@

! PERCENTAGE OF PERFERENCE 41

ASSOCIATED >ITH BRAND NAME 43

8 DEMAND FOR SELECTED PRODUCTS 45

@ PURPOSE OF PURCHASING 4

10 LUXURY PRODUCTS STEADY IN DEVELOPING COUNTRIES 4@

11 AVAILABILITY OF PRODUCTS 51

1" DURING RECESSION PERIOD 53

13 NEED BASED 55

14 HUGE IN DEMAND 5

15 GRO>TH IN LUXURY PRODUCTS 5@


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LIST OF CHARTS

S.N

O TITLE PAGE NO

1 REASON FOR LUXURY PRODUCTS PREFERABLE 3"

" >HAT CONSTITUTES A LUXURY PRODUCTS 34

3 LOOK FOR LUXURY PRODUCTS 3!

4 EVALUATION BEFORE LAUNCHING 38

5 PREFERING LUXURY PRODUCTS 40

! PERCENTAGE OF PERFERENCE 4"

ASSOCIATED >ITH BRAND NAME 44

8 DEMAND FOR SELECTED PRODUCTS 4!

@ PURPOSE OF PURCHASING 48

10 LUXURY PRODUCTS STEADY IN DEVELOPING COUNTRIES 50

11 AVAILABILITY OF PRODUCTS 5"

1" DURING RECESSION PERIOD 54

13 NEED BASED 5!

14 HUGE IN DEMAND 58

15 GRO>TH IN LUXURY PRODUCTS !0


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ABSTRACT

In marketing folklore4 lu7ury brands were said to be immune to economic downturns.

Their audience of 9ber$wealthy loyalists meant they remained protected during tough economic

times. %urthermore4 as the global economy prospered4 lu7ury brands attracted new segments of

customers who were suddenly able to afford a wealthier lifestyle. It should be no surprise then4

that we saw so many lu7ury brands :Tiffany 6 Co. as an e7ample : rush to make themsel"es

more accessible to a broader audience o"er the last ten years. ,nd it is lu7ury;s reliance on this

e7tended market that now creates risk and makes them "ulnerable to the downturn.

,s we mo"e forward into an uncertain global future4 it is clear that no brand is insulated

from this the current financial crisis. The turmoil of managing a lu7ury brand in such times is

e"ident. #ulgari;s agoni8ed response to cut costs in areas where it hopes customers won;t notice

: lea"ing the backside of watchbands unpolished and introducing lower$cost bo7es and bottles

for its perfume line : pro"es that cutting back appears una"oidable e"en for a leading lu7ury

brand. #ut at what long$term cost< =hile only twenty years ago4 such measures may ha"e

slipped by unnoticed4 the information age makes such mo"es too newsworthy4 introducing new

risks to lu7ury brands; long$term "alue.

Despite the difficulties of these times, the Leading Luxury Brands of 2008 must continue

to stand strong. They need to remember what has made them endure oer the years and they

must continue to demonstrate the same degrees of determination, coniction, and creatiity. The

brands that do are li!ely to weather the storm better than most " and luxury brands eerywhere

would be wise to carefully consider the long#term implications of short#term compromise.


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INTRODUCTION

Principles of Luxury Brand Manageen!

Luxury brands are ery distinct. $nd yet, een though %rance, &taly, 'ermany and the ()

and the (*$ hae created famous luxury brands, there is still some confusion oer the concepts

of luxury and the luxury brand, not to mention the %rench concept griffe which cannot

ade+uately be translated into nglish. -aturally eeryone is able to sense the differences and to

+uote a typical example for each of those concepts. oweer when pressed for an exact

definition, most people hesitate to gie a straightforward answer.

/hat is Luxury The problem with the word 1luxury is that it is at once a concept, a

sub3ectie impression and polemical term, often sub3ected to moral criticism. Thus, what is

luxury for some is 3ust ordinary for others, while some brands are +ualified as 1luxury brands by

one half of the public opinion4 others are simply considered as 1ma3or brands by the other half.

Li!ewise, gien the economic crisis, it has become ethically more dubious 1to li!e luxury or 1to

pursue luxury. 5eal luxury brands remain attractie, but the word itself has lost its clout and

spar!le because of the economic downturn in industriali6ed countries. The word 1luxury has

falled out of faor a little, a hindrance to mar!et researchers, who wish to measure their

customers sensitiity to luxury.

&n economic terms, luxury ob3ects are those whose price 7 +uality relationship is the

highest on the mar!et. By 1+uality, economists mean 1what they !now how to measure, i.e.

tangible functions. Thus, researchers report defines luxury brands as those which 1hae

constantly been able to 3ustify a high price, i.e. significantly higher than the price of products

with comparable tangible functions. This strictly economic definition of the luxury brand does

not include the notion of an absolute minimum threshold. /hat counts, indeed, is not the

absolute price, but the price differential between 1luxury products and products with comparable

functions. This price differential can ary from ten dollars for a cologne brand to hundreds of

thousands of dollars.

/hat does the luxury concept actually encompass /hat are the essential attributes of

this category of so#called 1luxury items Luxury comes from 1lux which means light in Latin. This

explains the typical characteristics of so called luxury items. Luxury glitters. The fact that luxury

is isible is also essential4 luxury must be seen, by the consumer and by others. That is why


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luxury brands externali6e all


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of their signs, the brand signature must be seen and recogni6ed on the person wearing the

brand, and it must be recogni6able worldwide. ade to perfection, luxury items stand out and

embody certain ideals. Luxury defines beauty it is an art applied to functional items.

Luxury constantly see!s to escape time constraints, by focusing on leisure, or by

concealing the effects of time with wigs and face ma!eup. $s for perfume, it also helped to

distinguish aristocrats from the common fol!. $s we can see, it is significant that modern luxury

brands hae falled for the cosmetics and perfume industry, not to mention the other essential

class attributes, clothing and 3ewels.

tymology is not the only means of deciphering the mystery of the concept of luxury. *ociology

and history can also help. Luxury is the natural accompaniment of the ruling classes. &t is indeed

widely ac!nowledged that luxury plays a classifying role according to which a restricted group

bonds together and distances itself from the rest of society in terms of price and preferences. &n

this respect, luxury brands are 3ust perpetuating and exemplifying the signs and attitudes of the

former aristocracy.

-ot many luxury symbols exist, but those that do represent the past priileges of the

uropean aristocracy liing a life of leisure, free of all wor!ing, money, time or space

obligations. erything is made to conceal mere practical utility, the leather, the polished

wood, the hushed engine are multiple details which ma!e them more li!e a drawing room

than a car. &n this respect, %errari and 9orsche are regarded as prestigious sport brands

rather than typical examples of luxury. :reated by a talented engineer, they certainly coney

the mythical +uest for speed, but they nonetheless embody aboe all the basic automobile

function, mobility.

Principles of Luxury Manageen!

5esearchers hae pointed out some of the basic principles of luxury brand management, for

instance, the necessity of protecting clients from non#clients, by creating a distance, a no#mix

area, or, as economists would put it, entrance barriers for those who are not inited. This is

implemented through prices and selectie and exclusie distribution, as well as the aesthetic

dimension of the products. But for the distinctie sign to wor!, it must be !nown by all. Thus

paradoxically, luxury brands must be desired by all but consumed only by the happy few.


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Loss of control occurs precisely when luxury brands no longer protect their clients from the non#clients. &n our open democratic societies, groups are constantly trying to recreate separations ofall !inds. The latter do eentually disappear when, for instance, prestigious brands getdistributed in hypermar!ets.

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I) *% *


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Some lu7ury brands offer limited categories. %or e7ample4 time wear that may not ha"e the

desired scale or range of products to setup an e7clusi"e store. In such cases4 brands are retailed

through specialty lu7ury boutiBues or high$end mutli$brand formats.


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COMPAN" PRO#IL$

SIL% C&IP T$C&NOLO'I$S


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M==*)

To dri"e ?The -u7ury #usiness; on an International le"el pro"iding a premium platform of

business de"elopment opportunities to members and clients globally4 thereby generating

profitable returns for the in"estors concerned.


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C*22,2'),

?-eading #rands of the =orld team is committed to dri"ing our clients business to higher

ground. 0ur brand focus4 loyalty and international standards of professional approach should be

e7pected of us;.

P%*7/'

-eading #rands of the =orld is the only /;% 6%) *)=/,)entity in the fast growing

Indian -u7ury market. 0ur company philosophy is rooted in successfully dri"ing the ?-u7ury

#usiness; on an International le"el4 by pro"iding a premium platform of business de"elopment

opportunities to our clients and partners globally.

The primary aim of -eading #rands of the =orld is to assist international ?best of breed; brands

in their e7pansion programme in domestic as well as o"erseas markets.

=hether in the realm of beauty and fashion4 fine jewellery4 yachts4 jets4 automobiles4 lu7ury

hospitality4 fine wines4 spirits or premium sponsorship programmes4 -eading #rands of the


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=orld offers sound strategic counsel with the ability to e7ecute multifaceted programmes that

reach the desired target audience.

-eading #rands of the =orld understands the needs of the lu7ury market in India and the know$

how to pro"ide meaningful4 result oriented marketing strategies that focus on the brandGs real

needs.

0ur e7pertise span from orchestrating a comprehensi"e entry strategy including in$depth market

sur"ey4 research 6 analysis4 creating brand launch platforms and introductions to the right target

sets. %urther identifying the befitting image partner for strategic alliances4 generating awareness

6 "isibility by suitable brand positioning.

=e act as a guide in foreign markets and assist brands in identifying appropriate retail space4

de"eloping and implementing bespoke e"ent programmes and creating a platform to meet

with other ?best of breed; brands.

-eading #rands of the =orld promotes best practices shared across lu7ury segments and

de"eloping collaborations for brands to network4 facilitate and transfer business de"elopment

opportunities.

=ith a personali8ed approach -eading #rands of the =orld de"elops strategic plans for new

brand market entries4 else in the case of an established brand4 we build upon the new market

entry plan within the brand;s international corporate guidelines resulting in detailing and

satisfaction as per international standardi8ations and e7pectations. =ith focus on the brands

identity 6 personality and understanding the "arying forms of culture and mo"ing target sets in

which the brand is e7pected to perform4 our team is e7perienced and Bualified on deli"ering the

e7pected.

The business model and strategic operations of -eading #rands of the =orld is headed by ourChairman4 who is speciali8ed in the international lu7ury industry for o"er a decade4 there by

reflecting international standardi8ed methods of approach to all our business functions. 0ur

offices are managed by e7perienced business de"elopers4 directors and a high profile4

internationally e7posed and e7perienced team4 which is further strengthened by networks and

connections across international markets and circles of influence.


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=ith consistency4 focus4 uniBue attention to detail and unmatched responsi"eness $ -eading

#rands of the =orld guarantees to remain committed to its goal : ?To pro"ide inno"ati"e and

pioneering solutions for lu7ury products and ser"ices conducting business in India.;

,t -eading #rands of the =orld inno"ation forms the )+, of our business and is reflected in

our approach to the brands and clients with whom we work.

-eading #rands of the =orld remain IndiaGs first -u7ury #rand Consultancy in the Indian marketthat pro"ides a platform for international lu7ury brands entering the Indian market4 established

international 6 domestic lu7ury brands4 and Indian lu7ury brands entering international markets.

0ur e7perience and understanding of lu7ury brands combined with a deep knowledge of our

operating markets allows us to pro"ide a uniBue portfolio of e7tensi"e ser"ices for an e7clusi"e

group of clients.


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OB($CTI)$S O# T&$ STUD"

PRIMAR" OB($CTI)$


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H To study about the creation of a Brand in the Luxury segment

and the ar!eting strategies implemented across the globe.

S$CONDAR" OB($CTI)$

H To !now the existing luxury brands and customer preferences

H To !now the psychological impact of luxury branding.

H To study the impact of premium pricing and strategic measures

implemented by Brand Leaders across the globe for product

promotion.

N$$D O# T&$ STUD"


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&t has been obsered the growth of Luxury mar!et is growing by leaps and bounds.

The world has become a ery small place in terms of geographies and global distance is getting

shorter and shorter eery day. odes of communication hae increased considerably and

hence people hae exposure to arying products aailable at a premium cadre across the

globe. ence it becomes imperatie to design and mar!et

Luxury products that hae a uniersal appeal and can ta!e on the needs and aspirations of

people across the globe.

This pro3ect report deals in depth about the creation of premium 7 luxury brands

$long with some time tested case studies of existing premium brands.

R$S$ARC& M$T&ODOLO'"

5esearch is an intensie study in a particular field to achiee at a better conclusion of a


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problem. 5esearch ethodology is a systematic way of soling the problem. The methodologies

followed for this study are as follows.

.' R$S$ARC& D$SI'N

The research design is the basic framewor! or a plan for a study that guides the

collection of data and analysis of data. &n this mar!et surey the design used is used Descriptie

5esearch Design. &t


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includes sureys and fact#finding en+uiries of different !inds. The ma3or purpose of descriptie

research is description of state of affairs, as it exists at present.

The information are collected from the indiiduals and analy6ed with the help of different

statistical tools, for describing the relationship between arious ariables, pertaining to customer

relationship in

'. Structured Juestionnaire

&ersonal Inter"iew


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T*e Secondary da!a are those which hae already been collected by someone else

andwhichhae already passed through the statistical process. The secondary data is collected

with the help of :ompany /ebsite, &nternet etc.

Both primary and secondary data collection hae been ta!en for this research study.

. SAMPLIN'

$ sample is a smaller representation of a larger whole. /hen some of the elements are

selected with the intention of finding out something about the population from which they are

ta!en, that group of elements is referred as a sample, and the process of selection is called

*ampling.

+,+,- Sapling Uni!

The respondents of the study are part of population of customers of *il! :hip

Technologies. ach customer is considered to be the sampling unit


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..@ Saple Si.e

The si6e of the sample is ?00.

3.3.3 S2


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$ alue indicating the percentage of sample alues that is outside certain limits, assuming the

null hypothesis is correct, that is, the probability of re3ecting the null hypothesis when it is true.

LIMITATIONS O# T&$ STUD"0

'E $ny 9ro3ect being ealuated with the help of human olunteers has to ta!e into

consideration. The human error inoled in the statistical methods. The answers gien

for +uestions posse will produce politically correct answers rather than straight forward

and truthful replies.

@E These errors hae been accepted as part and parcel of the methods of ealuation.

C &t has been found that employees who were reiewed7 interiewed were more !een in

giing $nswers that would help them to get a higher appraisal rating rather being honest, blunt

and truthful.


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60

50

40

30

20

10

0

1st Qtr 2nd 3rd Qtr4th Qtr Q

tr

Brand

consciousness

Statu s in the

socie ty

can a fford to buy

Prest ige issue

T$BL .2

4&AT CONSTITUT$S ALU1UR"PRODUCTS


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S,No, Opinion

No, of

Responden!

Percen!a

ge

-, :ompany brand name 2H 2H

2,&mage associated with theproduct ?F ?F

+, 9ri6e 22 22

/, (tility alue E E

To!al -33 -33

Inference

&t is inferred from the aboe table that 2HG of the respondents says company brand

name, ?FG of the respondents says image associated with the product, 22G of the respondents

says price and EG of the respondents says utility alue.


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%&'(5 -


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T$BL .

TABL$ S&O4IN' %$" PARAM$T$RS IN A LU1UR"PRODUCT


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S,No

, Opinion No, of Responden!

Percen!ag

e

-, %eatures E? E?

2, Benefits H H

Inferenc

e

+, $dantages I I

/, :ompany brand name

To!al -33 -33&t is

inferredfrom

the

aboe table

that E?G of the respondents says due to features in the product, HG of the respondents says

based on benefits, 2?G of the respondents says based on adantages and G of the

respondents says based on company brand name.

%&'(5 -


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LOO% #O R LU1UR" PRODUCTS

60

50

40

&eatures

30

B enefits

20

' d%antages

C ompanybrand

10 name

0

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr


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T$BL .

S,No, Opinion No, of Responden! Percen!age

-, :ustomer segment 2I 2I

2, 9roduct segment 2 2

+, 9ositioning ? ?

$)ALUATION B$#OR$ LAUNC&IN'

/, Demography 2E 2E

To!al -33 -33

Inference

&t is inferred from the aboe table that 2IG of the respondents says based on

customer segment, 2G of the respondents says through product segment, ?G of


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the respondents says through positioning and 2EG of the respondents says based on

demography.

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$)ALUATION B$#OR$ LAUNC&IN'

35

30

25

Customer

segm ent

20 Product

15segm ent

Positioning

10

5(emography

0

1st Qtr 2nd 3rd Qtr4th Qtr

Q tr


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T$BL .E


-, *ometimes I I

PR$#$RIN' LU1UR" PRODUCTS

2,


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PR$#$RIN ' LU1UR" PRODUCTS

40

35

30

25Sometime

s

20 )ccasiona$$y

15 *e%er

10 '$!ay s

5

0

1st Qtr 2 nd 3rd Qtr4th Qtr

Q tr


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T$BL .H


P$RC$NTA'$ O# P$R#$R$NC$

-

, Below ?G ? ?

2, ?#?.EG 2H 2H

+, ?.E#G 2? 2?

/, $boe EG I I

Inference To!al -33 -33

&t is inferred from the aboe table that ?G of the respondents says below ?G,


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2HG of the respondents says ?#?.EG, 2?G of the respondents says ?.E#G and IG of

the respondents says aboe EG.


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%&'(5 -


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T$BL .F


-, "es FI FI

2, No 2? 2?

ASSOCIAT$D 4IT& BRAND NAM$

Inferenc

e To!al

-3

3

-3

3

&t is inferred from the aboe table that FIG of the respondents says yes that

luxury products associated with brand name, 2?G of the respondents says no.


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.0

/0

60

50

40

es

30

*o

2010

0 1stQtr 2nd Qtr 3rd Qtr 4th Qtr


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T$BL .8

D$MAND #OR S$L$CT$D PRODUCTS


-, "es 8? 8?

2, No ?I ?I

To!al -33 -33

Inference

&t is inferred from the aboe table that 8?G of the respondents yes that there is demandfor

selected products, ?IG of the respondents says no.


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%&'(5 -


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0

.0

/0

60

50

40

0

e

s

*o30

20

10

0



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T$BL .I


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PURPOS$ O# PURC&ASIN'


-, 9ricing 2E 2E

2, 9roduct composition ?F ?F

+, &mage J *tatus ? ?

/, 5ecognition 22 22

To!al -33 -33

Inference

&t is inferred from the aboe table that 2EG of the respondents says because of pricing,

?FG of the respondents says due to product composition, ?G of the respondents says image

and status and 22G of the respondents says for recognition.


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%&'(5 -


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-, *ometimes ? ?

T$BL .?0

LU1UR" PRODUCTS STUD" IN D$)$LOPIN' COUNTRI$S

2, 5arely ?? ??

+, -eer 2 2

/, $lways EH EH

To!al -33 -33


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Inference

&t is inferred from the aboe table that ?G of the respondents says

sometimes there is steady in deeloping countries, ??G of the respondents says

rarely there will be steady in luxury products, 2G of the respondents says neer and

EHG of the respondents says always.

%&'(5 -


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LU1UR" PRODUCTS S TUD" IN D$)$LOPIN'COUNTRI$S

60

50

40

Sometimes

30

are$y

20

*e%er

'$!ays

10

01st Qtr 2nd 3rd Qtr4 th Qtr

Qtr


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T$BL

D

.

?

?


-, :ar E? E?

2, Kewellery 0 0

+, 'arments ?E ?E

/, :osmetics

A)AILABILIT" PR$#$R$NC$ TO4ARDS LU1UR" PRODUCTS IN T&$ MAR%$T

To!al

-3

3

-3

3

Inference

&t is inferred from the aboe table that E?G of the respondents opted car, 0G of

the respondents opted for Kewellery, ?EG of the respondents opted for garments and G of

the respondents says cosmetics.


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%&'(5 -


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A)AILABILIT" PR$#$R$NC$ TO4A RDS LU1UR" PRODUCTS INT&$ MAR%$T

60

50

40

Car

30

e!e$$ery

arme

nts20 Cosmeti

cs

10

A

1st Qtr 2nd Q tr 3rd Qtr 4th Qtr


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40

35

30

25

Sometimes

20

are$y15

*e%e r10

'$!a ys5

01st Qtr 2nd 3rd Qtr4th Qtr

Q tr


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T$BL .?


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PR$#$RNC$ #OR LU1UR" PRODCTS IN LIN$ 4IT& BASIC N$$DS O# T&$ CUSTOM$R0


-, *ometimes ?8 ?8

2, 5arely 2? 2?

+, -eer H H

/, $lways EE EE

To!al -33 -33

Inference

&t is inferred from the aboe table that ?8G of the respondents says sometimes, 2?G of

the respondents says rarely, HG of the respondents says neer and EEG of the respondents

says always.


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%&'(5 -


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1st Qtr 2 nd Qtr 3r dQtr 4th Qtr


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T$BL .?

D$M$ND PR$#$R$NC$ O# LU1UR" PRODCTSCONTIN$NT 4IS$


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Inferenc

e


-, $merica 2 2

2, $sia H8 H8

&t

i

s

inferred

+, urope H H

from

the

aboe table/,


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%&'(5 -


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T$BL .?E

-, :ar EI EI

'RO4T& IN

LU1UR"

PRODUCTS

2, Kewellery 22 22

+, 'arments ?H ?H

/, :osmetics

To!al -33 -33

Inference

&t is inferred from the aboe table that EIG of the respondents opted for car, 22G of the

respondents opted for Kewellery, ?HG of the respondents opted for garments and G of the

respondents opted for cosmetics.


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%&'(5 -


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60

50

40Car

30

e!e$$ery

2

0

arments

Cosmeti

cs10

0



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TABLE NO. 4.".1

HUGE AVAILABILITY AND PREFERENCE OF THE CUSTOMERS

TO>ARDS LUXURY PRODUCTS

9T>O>AY TABLE:

S,No

A)AILABILIT

"

PR$#$R$NC$ O# T&$

PRODUCTS

:arKewellery

'arment :osmetics To!al

? $L/$;* BB BE ?2 0 80

2 -5 0 E 0 0 E

*


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C&I8S7UAR$ 92: CALCULATION0

:alculated 2alue @ 2.I8E

Degree of freedom @ 8

Table alue @ I.88

*ignificant result @

*ignificant at EG

leel

IN#$R$NC$

%rom the aboe analysis, we find that the calculated alue of 2 is greater thanthe table

alue and hence, the null hypothesis re3ected. *o, there is a close significantrelationship

between aailability and preference of the customers towards luxury products.


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#INDIN'S

H E?G of the respondents say due to brand consciousness there is a demand for luxuryproducts.

H EG of the respondents say depends on the utility alue there is a demand for theproducts.

H E?G of the respondents say due to features in the product.

H 2G of the respondents say through product segment.

H IG of the respondents say sometimes there will be a demand for the product.

H IG of the respondents say aboe EG there will be a demand.

H FIG of the respondents say yes that luxury products associated with brand name.

H 8?G of the respondents yes that there is demand for selected products.


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?G of the respondents say image and status ma!e demand for the products.

H ?G of the respondents say sometimes there is steady in deeloping countries.

H E?G of the respondents opted car as a luxury products.

H IG of the respondents say rarely there will be demand for the luxury products.

H H8G of the respondents say there is a huge demand in $sia.

SU''$STION

5espect> Luxury brand need to respect all interaction between the brand and the customer.,

*egment> Luxury brands need to identify, differentiate and priorities the most profitable subsets

for targeted strategies., &nsight> otiation could be based on personal and non#personal

factors, :onnect> %riends and family are an important influence on luxury consumption.,

xperience> Deep and meaningful relationships need to be deeloped in order to win the soul of

the luxury consumer.

The starting point for identifying successful luxury brand strategies in &ndia has been established

by identifying certain salient aspects of luxury brands that remain constant as well as identifying

the stage of mindset of the &ndian consumer towards these brands. The focus is now towards

1how many more luxury brands will enter the mar!et to gain a first moer adantage, which is of

significant important in &ndia. $ word of caution that goes for luxury mar!eters, irrespectie of


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their brands and geographical


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presence. The luxury consumer is always loo!ing for newer ways to satisfy his continuouslychanging

needs.

CONCLUSION

Luxury brands are the e+uialent of aristocracy. $s we hae seen, they achiee their

status by being practically untouchable. They ta!e time to create. Louis uitton, Burberry,

Bulgari, and :artier did not 3ust appear out of thin air. They began more than ?E0 years ago and

too! years to build, only achieing iconic status oer time.

:onsidering the time and cost of capital that this would re+uire today, modern

inestors wouldnt dare indulge in the creation of a new luxury brand. Luxury brands are

expensie. They see! limited, elusie customers who are difficult to communicate with and een

more difficult to find. $nd

their creation re+uires the mindset of a higher purpose, erging on the genius " one that

transcends the commercial realities of the +uarterly earnings call. &t is difficult to imagine that the

inestor psyche of 2008, especially considering the current enironment, would tolerate thestart#up costs of a luxury brand.


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APP$NDI1


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?. :an & !now the reason why luxury product are preferable

aC Brand consciousness bC *tatus in the society cC can afford to buy

dE9restige issue

@. $ccording to you what constitutes a luxury product

aE :ompany brand name bC &mage associated with the product cC9ri6e

dE (tility alue

. /hat do you loo! for in luxury products

aE %eatures bC Benefits cC $dantages dC :ompany brand name

K. /hat do you ealuate before launching the luxury product

aE :ustomer segment bC 9roduct segment cC 9ositioning dCDemography

>. Do you always prefer a luxury product compare to a good product

aE *ometimes bC


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aE;es bC -o

M. Luxury 9roducts segment will demand only in selected mar!et

aE ;es bC -o

N. Luxury product are purchased for

aE 9ricing bC 9roduct composition cC &mage J *tatus dC5eorgani6ation

'A. Luxury product are steady in deeloping countries

aE *ometimes bC 5arely cC -eer dC $lways

''. Luxury products are aailable hugely in which segment

aE :ar bC Kewellery cC 'arments dC :osmetics

'@. The demand for luxury product goes down during recession


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'.Luxury product is need based


'K. Luxury product are huge in demand

aE $merica bC urope cC $sia dC


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BIBLIO'RAP&"

$rnold, .K.,%eldman.M?I8HC.


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Behilling, /ill &ntelligence and :onscientiousness Do the KobO

$cademy of anagement xecutie ?2> FF#8H


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:amilleri, . M2002C *ome antecedents of organi6ational commitment> 5esults from an

information systems public sector organi6ation.

:reating 9owerful Brands Leslie de chernatony and malconlm c Donald.

www.google.com

www.wi!ipedia.com
http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/

Documents

Luxuay Brand Prakhar