Comments on: the luxury brand dilemma http://deniseleeyohn.com/bites/2009/07/30/the-luxury-brand-dilemma/ stuff for your brain to chew on Sat, 13 Mar 2010 13:33:03 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Ray Hartjen http://deniseleeyohn.com/bites/2009/07/30/the-luxury-brand-dilemma/comment-page-1/#comment-5799 Ray Hartjen Fri, 31 Jul 2009 23:39:53 +0000 http://deniseleeyohn.com/bites/?p=1960#comment-5799 I've always admired Toyota's ability to actively engage a full spectrum of customers through it's brand family - Scion, Toyota, and Lexus. There's something for everyone, and if Toyota delivers the "wow" experience with entry-level Scion, they know they stand a great chance at garnering customer loyalty as that Scion owner grows into a Toyota, and then onto Lexus. While Coach's strategy might be different, it shares a common foundation. I'm just waiting for the day (and I know it's coming soon), when my 14-year old daughter discovers "Poppy" and approaches me saying, "Dad, you know how I love Coach purses ...". I’ve always admired Toyota’s ability to actively engage a full spectrum of customers through it’s brand family – Scion, Toyota, and Lexus. There’s something for everyone, and if Toyota delivers the “wow” experience with entry-level Scion, they know they stand a great chance at garnering customer loyalty as that Scion owner grows into a Toyota, and then onto Lexus.

While Coach’s strategy might be different, it shares a common foundation. I’m just waiting for the day (and I know it’s coming soon), when my 14-year old daughter discovers “Poppy” and approaches me saying, “Dad, you know how I love Coach purses …”.

]]> By: Denise Lee Yohn http://deniseleeyohn.com/bites/2009/07/30/the-luxury-brand-dilemma/comment-page-1/#comment-5792 Denise Lee Yohn Fri, 31 Jul 2009 16:40:01 +0000 http://deniseleeyohn.com/bites/?p=1960#comment-5792 I discussed this post with Sean Laughlin, a Harley-Davidson marketer and a really great guy, and he made some insightful observations I thought you might be interested in: - by introducing Poppy, Coach seems to have separated -- at least somewhat -- its brand identity between a bag designer/manufacturer and a bag retailer -- i.e., Coach is a store than now sells both Coach bags and Poppy bags -- in doing so, Coach is still delivering a luxury customer experience despite selling products at lower price points and perhaps that will help them in their efforts to not dilute the Coach brand - Tiffany's is using their discount as a conversion trigger, not a traffic driver -- meaning, they are only offering the discount to customers who are already in their stores and shopping for engagement rings -- this seems a particularly effective approach for a brand like Tiffany whose stores probably naturally attract a lot of shoppers who are wishful buyers, so they're marketing challenge is purchase conversion (not brand awareness or consideration) good food for thought -- thanks, Sean! D I discussed this post with Sean Laughlin, a Harley-Davidson marketer and a really great guy, and he made some insightful observations I thought you might be interested in:

- by introducing Poppy, Coach seems to have separated — at least somewhat — its brand identity between a bag designer/manufacturer and a bag retailer — i.e., Coach is a store than now sells both Coach bags and Poppy bags — in doing so, Coach is still delivering a luxury customer experience despite selling products at lower price points and perhaps that will help them in their efforts to not dilute the Coach brand

- Tiffany’s is using their discount as a conversion trigger, not a traffic driver — meaning, they are only offering the discount to customers who are already in their stores and shopping for engagement rings — this seems a particularly effective approach for a brand like Tiffany whose stores probably naturally attract a lot of shoppers who are wishful buyers, so they’re marketing challenge is purchase conversion (not brand awareness or consideration)

good food for thought — thanks, Sean!
D

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