Luxury isn’t a product, service, price or brand identity as such. It’s an evocative feeling of opulence, exclusivity and aspiration experienced by your consumer, thanks to the value and perceived prestige your premium brand exudes.
In this article:
- Brand positioning defined: what does it mean to position your business in the market?
- 5 keys things to remember when creating a brand positioning strategy
- Luxury brand positioning basics: creating brand value
- Picking the right content for your audience
- Luxury branding from luxury brands: brand positioning examples
The product, services, craftsmanship, materials, brand story and other factors all contribute to that feeling and need to communicate this prestigiousness. In this post, we’ll look at how a marketing strategy for a luxury brand can be a competitive advantage to positioning your business above the rest.
Brand positioning defined: what does it mean to position your business in the market?
For businesses striving for luxury success, brand positioning strategy is essential. Premium brands who get it right see an average revenue increase of 10-20% (Hubspot) and can take advantage of relatable identity and consumer loyalty.
Brand positioning is a critical aspect of the marketing mix that is vital for a business to plan a successful brand strategy. It can help them create a unique, desirable, differentiated and valued brand for those luxury goods and services.
It’s a well thought out process of differentiating a brand from its competitors based on target market needs and aspirations, so as to achieve a positive reputation, brand loyalty, strong market presence and a profitable market share. Branding is a key element in the creation of a business, and clearly defined brand positioning will help a start-up to succeed faster or an established business to continually grow.
5 key things to remember when creating a brand positioning strategy
Before we move on to the specifics of marketing luxury goods… here’s what a marketing strategy should take into consideration when creating a positioning action plan:
Price – Whilst price alone is not what contributes to the feeling of opulence, it does set the tone and a higher price indicates better craftsmanship or increased prestige.
Quality – It’s all in the details, and luxury consumers desire products and services created by top professionals with the highest quality, to avoid brand dilution.
Design aesthetic – Luxury is a statement of identity, one which highlights its uniqueness and stature.
Rarity – The allure of a luxury product lies in its rarity. The more difficult it is to obtain and own, the more luxurious and desirable it becomes.
Service – No luxury brand can neglect the service element which is the backbone of their product. High-quality service is expected.
Luxury brand positioning basics: creating brand value
You should have a clear idea of what matters to your ideal target audience in order to offer them content which matches this. The following are some ways in which you can matter to your luxury cliental.
Using social media to contribute to brand awareness
Earlier in 2021, Bottega Veneta shut down all social media accounts leaving the world stunned. Furthermore, various upscale companies have claimed that social media doesn’t encourage exclusivity or the right type of consumers. (Forbes)
Yet in a digital-focused world, for businesses without a large profile or marketing team, it’s a creative way to show consumers how your brand image interprets luxury.
Social proof is the most obvious way of building a brand
Aim to collaborate with a relevant influencer. Remember, numbers aren’t everything! Working with someone who has an engaged audience is a far better strategy.
Bring video into the picture
Users and potential customers want to see your product or service in the flesh and video is the next best thing. Plus it performs much better on social algorithms. For example, IG’s reels get a higher percentage of traffic than posting photos alone.
Create stories with the help of Instagram and Facebook
Bring an interactive element into your brand through real-time content. Consumers are no longer satisfied with the occasional post about a new product. They want to be involved in the entire process so this is a great opportunity to share the creation from start to finish.
Picking the right content for your audience
When we refer to content, we don’t just mean it from a social media perspective. Content comes in all shapes and sizes, including:
- Product descriptions (including menus)
- Web copy
- Marketing campaigns (both off and online)
Here’s what to consider when choosing content:
Know your audience in every respect – this is far more than just age and location. You’ll need to know their hobbies, career, spending habits, dislikes, loves, core values, and most importantly, their needs. Before trying to sell to your consumers, consider how your product or service meets their need(s).
Learn from your peers – it’s becoming increasingly rare to have a product or service which is exclusive. Therefore most brands will compete on the likes of quality, customer service and innovation. Even if you’re not able to find someone in your exact industry to learn from, it’s important to have role models.
Get into the habit of performing content audits to ensure you’re meeting goals and metrics, monitoring audience engagement, and using fresh, original and relevant content on socials, blogs and newsletters.
Luxury branding from luxury brands: brand positioning examples
If you’re stuck for ideas on how to create a strategy for your luxury business, let’s look at some of the most exclusive brands in the fashion industry. We feel these brands have set the tone ever since their launch into the luxury market.
A luxury fashion brand that uses its brand heritage and history to paint a picture of liberated feminism and timeless luxury.
Their brand strategy is based on the explorer archetype. Originally a luggage brand, they’re known for their luxury travel-inspired collections often filmed in exotic destinations.
They have built their reputation on high-quality leather goods and now have a 41% classic collection and a 51% fashion collection. This balance has allowed the brand to capitalise on trends, as well as remain true to its brand personality.
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Until the next time,