strategic brand management: bottega veneta in china
TRANSCRIPT
BOTTEGA VENETA “When your own initials are enough”
TABLE OF CONTENTS
Introduction market analysis brand inventory: brand elements & secondary associations brand inventory: existing 4ps pods + pops brand exploratory brand resonance mm recommendations conclusion
o founded in 1966 as a leather goods house
o known for its signature
“intrecciato”, a unique weaving pattern created by the bottega veneta craftsmen
COMPANY BACKGROUND
o acquired by the house of brands, kering, in 2001.
o currently headed by
creative director, tomas maier
o regained its footing in the industry by returning to its original identity o fastest growing brand in
kering
COMPANY BACKGROUND
o bottega veneta handbags contributed to 85% of its revenue, driving record profits
o china was the best performing market even though only entered the market in 2007
BOTTEGA VENETA IN CHINA
41 outlets in china even distributed amongst the first, second and third-tier cities
largest flagship store located in shanghai which serves as a concept store
known as to the locals, its chinese name was unveiled on its weibo
page in 2013
1 2 Rise of the upper and middle class - More noticeable in the
second and third-tier cities - Greater disposable income
and growing purchasing power
Changes in local tastes and preferences - Preference towards discreet
brand designs - Emphasis on local
craftsmanship and culture (E.g. Shang Xia)
LUXURY BAG TRENDS
4 3 Increased spending outside china - Import tariffs and higher
pricing strategies - Currency fluctuations and
rising middle class - Sales in Europe rose 29%
while revenues in Japan jumped 26%
Promotion of brand heritage - Immersion into brand
culture - Interest in history, heritage
and product quality of brand
LUXURY BAG TRENDS
5 Luxury brands taking to e-commerce - Fall in growth of luxury
bags industry - Move to online platforms
help reach a wider audience - 45% of online consumers
purchased most of their luxury items online
LUXURY BAG TRENDS
BRAND ELEMENTS
“venetian shop” symbolizing origins from vicenza,
italy
bǎo
nurture
preserve the youth
forever
dié butterfly beauty and femininity
jiā home “venetian shop”
BRAND NAME
philosophy of individuality and confidence
never uses bold logos, secondary lines and celebrity endorsements
discreet luxury for self assured consumers who do not feel the need to “wear someone
else’s name”
“when your own initials are enough”
unique artisan technique of weaving leather
synonymous with brand
“non-logo” logo
attempts to copy by other designers but bottega’s quality and precise craftsmanship remains unrivalled
not only bags but almost every bottega product
INTRECCIATO
o pivotal character o saved company from brink of
bankruptcy o brought brand back to life o designed many of bottega’s iconic
bags
TOMAS MAIER
o founded artisan school to perpetuate traditions
o devised ways to make sure that brand kept strictly to its brand identity yet continue to attract consumers
BRAND ELEMENT Criterion Brand Name Brand Mantra Intrecciato Tomas Maier
Memorability x x ✓ x
Meaningfulness ✓ ✓ ✓ ✓ Likability ✓ ✓ ✓ ✓ Transferability ✓ ✓ ✓ ✓ Adaptability ✓ ✓ ✓ ✓ Protectability ✓ ✓ x x
SECONDARY ASSOCIATIONS
bottega veneta
made in italy
tr
an
sfer
quality
high specialization
elegance
quality
artisans specializing in intrecciato
elegance
COUNTRY OF ORIGIN
• held 3 exhibitions in shanghai so far • latest one was ‘facing faces’ • to protect local culture & help
young artists grow • convey connection to local culture
and boost brand image
ART SPONSORSHIP
Bottega Veneta
Art Exhibitions
TR
AN
SFER
chinese
credibility (reputable
artists)
intellectual theme
classic artisan
intrecciato design
heritage of 49 years since
1966
sophistication
european
contemporary art
ART SPONSORSHIP
each season, a different guest photographer/artist is invited to shoot an ads campaign
given free rein to interpret, capture and communicate the brand’s creations, injecting own art & story into the
ads
“ART OF COLLABORATION”
bottega veneta
photographers & artists
tr
an
sfer
aesthetic
individual unique
storytelling
creativity
classic designs
“when your own initials are enough”
innovation
“ART OF COLLABORATION”
waitanyuan: a renowned commercial area peppered with
splendid buildings that have layers of rich history dating back to the early 20th century that is
now undergoing redevelopment, aiming to revamp to become the
21st century landmark of sophistication deeply associated
with cultural and fashion concepts
largest concept store in china located in one of the preserved historical buildings in waitanyuan
leverage on waitanyuan’s rich history and culture, further adding to the brand’s artistic image
Bottega Veneta
Waitanyuan
TR
AN
SFER
Colonial style
buildings
Rich cultural history
Commercial district
“Venetian Shop”
Luxury
Heritage of 49 years since 1966
LOCATION OF STORES
BRAND INVENTORY
“stealth wealth”: category of rich people, who are less inclined to flaunt their affluence, thus, giving only subtle
hints about the wealthiness
product: handmade, exquisite design & materials,
aesthetics, empowerment, lifestyle
price: signal of luxury, higher margin in china
In china: weak link to lifestyle, insufficient augmented product
externalities/tariffs, growing demand, brand image maintenance
place: unique store concept, landmark locations
promotion: visual ads, experiential, website & social outlets
underleverage of social media tools, lack of world expo succession events, “lost in
translation”
omni-channel strategy is not exploited in china (no online shopping)
POINTS OF PARITY & POINTS OF DIFFERENCE
Competitive frame of reference • Premium luxury category; Avg. Product Price Range up to US$5,000
Competitive frame of reference • Quantitative Research on 40 Chinese Luxury Consumers • Important Purchase Dimensions: Craftsmanship & Exclusivity • Main Competitors: Gucci, Celine, Fendi, dior
Craftsmanship (artisanal)
Exclusivity
Accessible
Mass-produced
BRAND
ELEMENT SECONDARY
ASSOCIATIONS POP
HIGH LEVEL OF CRAFTSMANSHIP &
USING FINEST MATERIALS
(=) sophisticated consumers are discerning and premium luxury brands must
offer products of artisanal quality;
ex. Gucci embraces her hand-crafted legacy of producing 100% of the products in Florence workshops
EXCLUSIVE DISTRIBUTION
CHANNELS
(=) tightly-controlled distribution network of directly operated boutiques,
exclusive franchise stores & strictly selected department/specialty stores worldwide;
ex. in China, both BV and Celine will slow down the pace of store openings
but expand the shop spaces
COUNTRY OF ORIGIN:
“MADE IN ITALY”
✓
(=) “marriage of masterful design and artisan technique”; synonym of
“elegance”, “sophistication” & “desirability”;
ex. Celine (France) opened a leather goods factory in Florence, Italy to leverage on secondary association
POINTS OF PARITY
BRAND
ELEMENT SECONDARY
ASSOCIATIONS POD
BRAND MANTRA: “WHEN YOUR OWN
INITIALS ARE ENOUGH”
✓
(+) integrating brand mantra into PRD designs;
unlike other premium luxury brands, BV’s products wetn logoless that exudes timeless elegance and sophistication
“ART OF COLLABORATION”
✓
(+) strategic collaborations in advertising;
BV invites different photographers & artists in each ad campaign to interpret the brand, BV = “work of art”
EXTENSIVE PRODUCT PORTFOLIO
(+) leverages on expertise in leather craftsmanship to extend into
home collection ;
provides greater variety to sophisticated consumers, allows them to immerse in luxurious lifestyle experience
POINTS OF DIFFERENCE
bv positions itself as a premium luxury bag brand,
targeting the upmarket, individualistic and
sophisticated consumers who seek timeless elegance and a
luxurious lifestyle experience
BRAND POSITIONING
BRAND EXPLORATORY
secondary research: 1) online interviews with
tomas maiers and marco bizzari
2) online report by cnbc
BRAND EXPLORATORY
main findings: o sophisticated global
consumers with confidence & personal style;
o upmarket individuals willing to pay a premium for craftsmanship of bv handbags.
o “louis vuitton has become too ordinary”, prefers brands like bv due to “exclusivity”.
on a group of 40 consumers to assess consumer’s awareness, perception and attitude
QUANTITATIVE RESEARCH
“select all of the luxury bag brands that they have heard of before in the list” bottega veneta: 67%, below the median score of 85% of 27 luxury bag brands listed.
0
10
20
30
40
50
Louis Vuitton
Chanel Prada Bottega Veneta
T.O.M Recall (%)
“name the first three luxury bag brands that come to your mind”
top reasons for purchase: o high level of craftsmanship in products top reason for non-purchase: o inability to identify with the brand
QUANTITATIVE RESEARCH
reason for purchase or non-purchase of bv handbags
“list the words that comes to your mind when you hear bottega veneta”
WORD ASSOCIATION TEST
“high-quality” “venice”
“weaving” “exclusive” “expensive”
weaving
logoless
understated
durable
craftsmanship
expensive
MENTAL MAP: FUNCTIONAL
BOTTEGA VENETA
sophistication
luxurious
lifestyle
elegance discreet
soft
obscure
MENTAL MAP: SYMBOLIC
BRAND RESONANCE
Which of the following luxury bag brands have you heard of before?
SALIENCE
low brand awareness
• shunned away from celebrity endorsements and display of a visible logo • country of origin: italy • BV initials project
– introduced in china – increased engagement with the brand – expression of individuality and uniqueness
• brand personality: ‘discreet’, ‘confidence’, ‘individuality’ ‘ sophistication’
IMAGERY
o discreet yet recognizable through design
o credible and trustworthy brand
dedication to artisanal production
reliability inscribed in all kering brands
o consistent delivery of extraordinary craftsmanship through specialised school that trains leather artisans
skills to perfecting intrecciato weaving
understanding the heritage of artisan production
“i like bv because of the craftsmanship behind the brand”
JUDGEMENTS
3 1
2 5
11 12
6
Strongly disagree
Strongly agree
• evokes more personal and enduring feelings
• self respect
– pride themselves with the craftsmanship and heritage due to brand’s commitment to stick to artisanal origins
– personal satisfaction and self regard
• low levels of social approval
– lack of conspicuous logo
– self assured consumers
“bv gives me a sense of social approval”
“bv gives me a sense of self respect”
FEELINGS
5 4
5 6
8 5
7
Strongly disagree
Strongly agree
12 9
8 3
4 3
1
Strongly disagree
Strongly agree
• behavioral loyalty – low repeat purchases
• disengaged community – unique individual expression of
style and lack of interactive social media platforms impede affiliation with other users associated with the brand
• lack of active engagement – relationships after purchase are
not sustained – lack of platforms for
interaction with brand after purchasing product
“I will buy as much of BV as I can”
“i feel a deep connection with those who uses BV’s bags”
RESONANCE
18 5
7 4
2 2 2
Strongly disagree
Strongly agree
17 9
8 2 3
1 0
Strongly disagree
Strongly agree
MM STRATEGIES
additional elements like warranty & repair services contribute to
overall value perceived by customers
PRODUCT: WARRANTY, REPAIR
issues: no warranty for bv bags
proposal: offer warranty or repair services
exhibitions - trend of chinese consumers emphasizing brand heritage
PRODUCT: EDUCATING & HOSTING CUSTOMERS VIA EXTENDED SHOP SPACE
- exhibitions leverage on the trend, where chinese consumers value brand heritage
- exhibitions to educate, increasing brand knowledge
hosting top tier customers - utilize exhibition space for exclusive previews - enhance customer service - reinforce positioning - “luxury lifestyle experience”
PRODUCT: EDUCATING & HOSTING CUSTOMERS VIA EXTENDED SHOP SPACE
e-commerce o rise of e-commerce in china o luxury brands slow to establish their e-commerce o bv has competency in this area - online store available
in 48 countries o proposal: o introduce e-commerce services
PLACE
1) artists and photographers 2) co-branding
PROMOTION: COLLABORATIONS
fly hnwi consumers to the main workshop in florence, italy o interactive tour o know more about the production
processes and methods of making a bv bag
o customers customizing their own bag
PROMOTION: EXPERIENTIAL MKT
1 - bv yet to establish resonance - targeted at bv’s top tier customers
cocktail parties o build a community around the brand
PROMOTION: EXPERIENTIAL MKT
2- bv yet to establish resonance - targeted at bv’s top tier customers
o targeted at consumers in general
o inspiration station o fashion advice, write reviews
of bv products, engage in online discussions with fellow community members
PROMOTION: ONLINE UGC PLATFORM
o generate more keywords, better seo
o improve brand awareness, establish r/s with customers
Only 10 percent of Chinese consumers are satisfied with the service of luxury retailers in China
Top reasons - staff with limited
knowledge of the products (China Luxury Forecast, 2014)
PEOPLE
“More than any other communications medium, employees can breathe life, vitality, and personality into the brand.” (Leonard L. Berry and A. Parasuraman, Marketing Services: Competing Through Quality)
PEOPLE
1 2 reinforcing brand mantra via staffs’ self-expression
staff training
THANK YOU FOR YOUR ATTENTION lim chee yang, lim xue ying,
sharon lim yu-zhen, tan sheng liang, tracy seet hui li, victoria paskannaya
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