Page 358 - Marketing Management

SETTING PRODUCT STRATEGY | CHAPTER 12 335

TABLE 12.1 Guidelines for Marketing Luxury Brands

1. Maintaining a premium image for luxury brands is crucial; controlling that image is thus
a priority.
2. Luxury branding typically includes the creation of many intangible brand associations and
an aspirational image.
3. All aspects of the marketing program for luxury brands must be aligned to ensure
quality products and services and pleasurable purchase and consumption
experiences.
4. Brand elements besides brand names—logos, symbols, packaging, signage—can be important
drivers of brand equity for luxury brands.
5. Secondary associations from linked personalities, events, countries, and other entities can
be important drivers of brand equity for luxury brands.
6. Luxury brands must carefully control distribution via a selective channel strategy.
7. Luxury brands must employ a premium pricing strategy with strong quality cues and few
discounts and markdowns.
8. Brand architecture for luxury brands must be managed very carefully.
9. Competition for luxury brands must be defined broadly as it often comes from other
categories.
10. Luxury brands must legally protect all trademarks and aggressively combat
counterfeits.

Source: Based on Kevin Lane Keller, “Managing the Growth Tradeoff: Challenges and Opportunities in Luxury Branding,” Journal of Brand
Management 16 (March–May 2009), pp. 290–301.

Sub-Zero targets its high-end
refrigerators to homeowners
looking for the best.