Luxury Brands: Are Their Stories More Compelling?

We've been talking about reinventing the auto dealership experience at our last BrandingWire challenge. And if you think these monthly riffs are easy to think through, think again. On one side we play consumer, on the other, we play the side of the marketer -- would I recommend that to a client? Is it a good strategy, would it work? Once again I bow to the skill and stamina of fellow BrandingWire team members.

Certain cars do not need to go through the dealer at all; they can afford the rarefied world of demand outstripping supply. They win by making the road and your heart race faster. What happens when failure is not an option? The whole experience becomes about you, the buyer -- that's what luxury brands like Ferrari are extremely good at doing.

The car in the image sold at an auction for $9,281,250 at RM's Leggenda e Passione in Maranello on May 20, 2007. [Ferrari Testa Rossa, 1962, 330 TRI/LM] That is for legend and passion and you must believe in the first and have the second to write that kind of check. In other words, you buy the object itself because of the story it tells you about the story you want to tell yourself. If that makes any sense.

David McGregor builds on another story published in The New York Times about how De Beers has successfully increased the desire for diamonds with its famous "A Diamond is Forever" line. Note that De Beers has it all covered even for independent women like me -- you deserve to buy yourself a diamond ring and wear it on the right hand to show your declaration of independence. Very clever indeed.

Maybe it's the power of scarcity and the perception that you own a one of a kind piece, a collectible, that makes luxury brands feel more like objects of desire than the regular products. It may be only an illusion, as I wrote back in February, but it's our story too and we charge it with meaning -- our meaning.

With luxury brands the stakes are also much higher -- when you sell one or two items of something, you want to sell them for the asking price. And the items in question better be of good quality or the word gets around and you're done. So the brand story is aligned with the product's quality and aligned with the buyers' desire.

What prevents us from thinking this way of every single brand and product? What makes us think that there are unlimited opportunities to deliver poor quality and unfocused brands? Why do we think that the story needs to be compelling only for luxury brands?

Comments

[Rebecca Thorman]

This is a great post, and reminds me of when I used to study design and believed heavily in the power of design (I still do)! But I wonder if all products need to be designed with powerful brands. When I shop for shampoo or hand wash, I look for the cheapest brands. Soap, is after all, just soap. Of course, for me personally, if there was an environmentally friendly soap, I might linger over that one, but ultimately my decision comes down to price. For luxury products, it's not about the money. It is, as you stated, the story you want to create about yourself, the image you want to project. That said, I will choose to get my bargain soap at Target over Walmart every time. So maybe you're right...

[Valeria Maltoni]

From my observations, we all respond to great design and experience with about every brand I can think about. You mention organic goods, I tend to gravitate towards natural and that is part of the appeal as well. There is a story there that I tell myself together with the people telling the story about the product.

There are also degrees of luxury. I buy Italian made clothing when I go there and yes I do pay a higher price for it -- it tends to last much longer. Design in that case meets craft. It still tells me the story about me wanting trendy attire as well ;-)

[Lewis Green]

Valeria,

You covered the subject nicely and concisely. Great job! I think that the questions in your last paragraph are key to understanding all markets, not only the luxury ones, and I think you believe that, as well.

Let's take cars. We live in a nation that loves the automobile and yet, with the exception of luxury cars, most marketing within the industry is directed at the deal and the functionality. In my mind, a stupid mistake and one that completely misses the mark.

Those marketers should go back and view TV ads from the '50s, when marketing was about our passion for cars (underline our), their slick styling, and the adventure of the open road. The marketing was all about the drivers and the passengers. Once they view those ads, they then should throw their current strategies in the trash where they belong and create marketing strategies around the passion we have for the freedom that cars give us.

[Karen Hegmann]

Valeria

I think what gives luxury brands a different story is the idea of exclusivity. Years ago, I bought a magazine called LUXE (The Art of Luxury Marketing) and they discussed this very issue. In an article called "The French Kiss" authored by Lester Wunderman, he said that "...in the marketing of luxury goods and services, God is in the relationship. Mass marketing is becoming a science, but the selling of luxury goods remains an art. The successful marketing of luxury goods and services requires a seller and a buyer who have learned the difference."

While visiting an upscale hat shop in Paris, Wunderman claims that the need he brought to the shop wasn't for a hat, it was for the "je ne sais quoi" that the hat provided -and for the way of acquiring it that made him feel so special. He wasn't just buying a hat, he was buying a memorable experience.

In luxury marketing, the brand is identified with "people like us." Let's face it. The stories of people who own luxury brands are probably far different from those of the average consumer.

[Herb]

I think you kind of answer your own questions. A quality brand has a quality story because it is a higher quality...and not every single brand can have a quality "story" because, well, it isn't a quality product.

But then again, how do you define "quality" in the mind of the consumers and brands?

A Ford and a Porsche are two completely different types of quality. Yet one is a luxury brand, one is not. Why, well, the quality of a Porsche is renowned as top of all vehicles. Ford maybe only within pick-up trucks. Consumers understand that if Porsche were to make a pick-up truck, it's going to be top performance quality. (but lets hope they don't).

[Valeria Maltoni]

Lewis -- I have seen beautiful books filled with cars from the era you mention and they do make you want to drive them. I'm not sure what happened, perhaps the drive to cut costs (and corners) and ramp up profits. Perhaps cars have become a commodity -- too many on the road, not enough roads?

Karen -- yes, the aura of exclusivity that needs to be weighed with the balance sheet and the need to make money. In the post I link to from back in February you can follow some links to two terrific posts Gianandrea wrote about luxury labels being owned by power houses and needing to increase profits. Maybe design is bridging us back to the feeling of holding a special object. I too prefer Target to other superstores for the reason Rebecca cites.

[Valeria Maltoni]

Herb:

Welcome to the conversation. You are absolutely right. I kind of reply to part of my own question and that is because in a way we know why. Still we don't treat non luxury brands as opportunities to deliver great experiences.

Maybe the experience is on the customer support and service side; maybe it is on delivering a great design at a reasonable price. Just thinking out loud here.

Yes, let's hope Porsche doesn't get in the pick up truck business, shall we? I like them just the way they are ;-)

[Joe Raasch]

Hi Valeria,

Could it be the reality of 'vast prosperity'? In the US, a car is not out of reach for most citizens. So at certain entry prices, it is a commodity...all the way to $30k! Then the exclusivity kicks in...want to pursue perfection? Lexus.

I do think there is room to add design and a 'luxury' feel if we just shift slightly how we market products. Karen detailed a great story about the French hat store. It really wasn't about the hat. What about when someone buys a drill? Looking for color, size, power, cordless? That's what is marketed. You actually, knowing or not, came to the store to buy holes!! You need something to make holes. What does color, or cordless, have to do with that? Just like the hat example, the drill is about holes, not the drill.

[Becky Carroll]

Valeria, I think it all comes back to the experience satisfying the needs of the customer. The more money spent on a product or service, the more it has better meet my need! Telling a story which pulls me in helps me see how my need is met.

Customer experience is more than just service and support. It is how you feel when you shop for it, purchase it, take it out of the box/driveway, use it, maintain it, and replace it. Great brands have thought through every step and meet their customers at each point along the way.

For the amount of money which is spent on mass marketing (even of lower-end items), one could easily pull aside a smaller amount and really understand the customer experience. Companies making that priority will enhance their brand, whatever the product.

[Valeria Maltoni]

Joe -- the drill and hole story is a classic! And so true, sometimes marketing focuses on the wrong attributes. Vast prosperity is alive in many instances here. I remember when I could not afford a Vespa in Italy. Never mind the gas prices.

Becky -- "Great brands have thought through every step and meet their customers at each point along the way." That is something to aspire to. BTW, I recommended your blog for a blog roll on customer service recently. What fascinates me is that companies tend to do the research to find out... then are a bit weak on the follow through.

[Steve Woodruff]

There will always be "commodity" brands that exist to meet functional purposes. By and large, soap is like that. People usually don't buy soap or nail clippers or weed killer to make a statement.
However, luxury brands differentiate themselves because they help a purchaser differentiate themselves. Why would someone spend inordinate amounts of money for something that really has far less inherent worth than the price tag? Because now they can feel important, above others, different. They are differentiated because they CAN spend thousands of dollars for an article of clothing that will be out of style in no time. They CAN own something that others cannot. It's an ego grab translated into a wallet surrender. Here, I'm not speaking about paying more for true value (like your Italian clothes...)
Perhaps more brands, even at the commodity level, should think about not only how their product is unique and differentiated, but also how the purchase of their product can make someone feel differentiated from others.

[Valeria Maltoni]

Steve:

Soap? Who uses soap? I use all natural shower gel ;-) All kidding aside, maybe shower gel was born from a different story. One of a gentler wash, of luxurious indulgence -- just a like a bath, but more practical.

Along with differentiation, how people will use or utilize a product or service might provide ideas for improving that experience.