Swarovski Branding Strategies & Products

SWAROVSKI. Branding for luxury goods Group G. Members: Truong Anh Bao Nguyen Yunkyung Choo Lilit Nagapetyan CONTENT: 1 History 2 Concept 3 Brand Strategy 4 Marketing Mix 5 Positioning 6 Services 7 Target Consumer 8 CBBE Pyramid 9 SWOT analysis 10 Competitors 11 Recommendation 12 References 1. HISTORY: 1882 Daniel Swarovski (1862-1956) invents a revolutionary machine that allows crystals to be cut more precisely than with existing manual methods. 1895 Daniel Swarovski founds the company in Wattens, Tyrol, with the vision of bringing joy to people through crystal.His guiding principle is still followed by the company today: â€Å"To constantly improve what is good. † 1949 SWAROVSKI OPTIK is founded, and goes on to become a leading manufacturer of precision optical instruments for hunting and nature observation (binoculars, telescopes, rifle scopes, range finders, and night vision and optronic devices). 1956 The first Swarovski crystals for chandeliers and lighting are launched, and in 1977 are registered under the STRASS Swarovski Crystal name.Today they adorn classical chandeliers, suche as those in the Palace of Versailles and the Metropolitan Opera, New York, as well as more modern lights. Swarovski starts to manufacture precision-cut gemstones. 2002 Swarovski develops Crystal Fabric: countless tiny crystals create a delicate shimmer over a variety of materials. 2003 In conjuction with leading fashion and jewelry designers, â€Å"Runway Rocks† is founded – a collection of unique jewelry pieces featuring crystal for the catwalk, showcasing design and innovation 2009 At the â€Å"Baselword† watch and jewerly exhibition, Swarovski launches its first watch collection. . CONCEPT More than a century ago, Daniel Swarovski, its founder, once said â€Å"A diamond of everyone† that sparkles everyone's lives, Swarovski today has been thriving for the best to serve its customers, being one of the finest crystal producers in today’ s global industry. Mission Through the mastery of the poetry of precision we continue to be market leader, driving force and reliable partner within our industry to meet people’s desire for adornment and delight since 1895 as * manufacturer, marketer, and retailer of premium jewelry and customer products ranging from decorative objects to lighting and accessories. manufacturer and marketer of premium jewelry stones for customers. * Swarovski provides high quality products and services and anticipate, fulfill and exceed consumers’ desires and customers’ needs. * Swarovski offers our colleagues and teams fulfilling challenges that inspire them to be innovative and creative. 3. BRAND STRATEGY: Not so long ago Swarovski was not very famous and didn't have any branding strategies. ‘For a long time Swarovski didn't â€Å"brand† its product. And back then it wasn't really about branding as it is nowadays.We had to develop a hard-core communications strateg y – a PR strategy – which we pitched to the editors and designers. ‘ said Nadja Swarovski, Swarovksi Vice president of International Communications. Today, Swarovski is almost omnipresent everywhere from fashion awards, catwalk shows, film premieres; its crystals are used by fashion designers from the edgiest Central Saint Martins graduate to the hallowed ateliers of Armani, Dior and Chanel. This is where the real success of Swarovski lies: by aligning the company with the most avant-garde young fashion talent.When the hottest British designers of the time, Alexander McQueen, Philip Treacy and Julien Macdonald used Swarovski crystal mesh – a fine fishnet gauze studded with tiny crystals – in his catwalk show, it immediately changed people's perception of the brand. ‘The McQueen show provided a visual that was very different to the standard idea people had of us,' Nadja says. The company then began to re-establish the company's links with the f ashion world, sponsoring younger designers who are in need of capital to make their label take off.Nearly ten years later this winning formula is still producing results. Designers, no matter how edgy or cool, all seem to want to use Swarovski crystals and accept sponsorship. ‘If you're a young designer starting a collection, it's great to have crystal in there because it makes it more haute couture,' Nadja says. ‘It adds elegance, a seriousness, credibility. In fashion, if you have something to prove, then couture, or at least craftsmanship, is the right track. â€Å" Not only enraptured the fashion world, Swarovski also moved on to the film industry.Some of Swarovski's most high-profile projects have been Moulin Rouge, where the sets and costumes groaned under the weight of Swarovski crystals, Titanic and the recent Bond films. During Oscar season Nadja sets up camp in Los Angeles, and stylists can browse the Swarovski jewellery, shoes and handbags with a view to dres sing their clients on the red carpet. These days Swarovski crystals adorn everything from iPods and mobile phones to Maria Sharapova's new Nike tennis dress. They even covered, whisper it, Jordan's wedding dress. 4.Marketing Mix Products: The Swarovski Crystal range includes crystal glass sculptures and miniatures, jewelry and couture, home decor, and chandeliers. They're best known for imitating â€Å"colored germs† All sculptures are marked with a logo. The original Swarovski logo was an edelweiss flower, which was finally replaced with the current swan logo in 1988 Subsidiary companies: Swarovski Fashion accessories and crystal-based ornaments. Daniel Swarovski Jewelry, handbags, accessories and interior design objects. Swarovski Optik Optics.Atelier Swarovski Fashion and jewellery designers. Swarovski Crystal Palace Avant-garde lighting and design (chandeliers etc. ). Swarovski Elements Crystal designs. Swarovski Gemstone Business Gemstone designs. Swarovski Lighting Swar ovski finished lighting products and solutions with crystal for architecture. Tyrolit A bonded grinding and dressing tools company. Swareflex A road safety products specialist. Schonbek A crystal chandelier manufacturer. Touchstone Crystal Swarovski's direct sales company for ready-made jewelry PlaceAll boutiques are beautifully set up and conveniently located in the fashion mall/heart of big 19 metropolitan cities from Dubai, Madrid, Hongkong to New York City over 20 countries in North America, Europe, Asia and Australia. Also online website is available with convenient shipping services Price 100$ to $42,800/item Promotion Promotion is via press, social network (Twitter, Facebook, Youtube) as well as via traditional and on-going sponsorship for young talented artists/ designers to use Swarovski crystals in any kinds of their designs in fashion show, film awards, etc.Therefore, the best season to promote Swarovski crystals is during the fashion week (twice a year- January to March and from September to October) and movie/film award ceremonies seasons (October to February) 5. Positioning Swarovski is positioning itself as a luxury fashion by creating a customer experience to let people know Swarovski’s brand values of innovation and modernity. They would like to position themselves as creating premium, high-quality products for the consumers. They are trying to be a market leader in the luxury jewelry industry by innovating continuously.Recently, Swarovski hired Yellowdoor as retained agency, which will focus on positioning as an affordable luxury brand. * Luxury fashion brand * Market leader in the luxurious crystal industry * Multi-faceted business * Affordable luxury brand 6. Service * Collection of rings, pins, earrings, pendants, necklaces, hair jewels, cuff links, charms, brooches, bracelets, bangles and gifts. * Large variety of color options * Vast selection of gifts available for fewer than $100 * Magazine and group for Swarovski enthusiasts. * Free shipping standard on orders more than $95 * Customized gift messages Free gift wrapping and bag * Scheduled delivery * Right to return (2 week return policy) * Product warranty * After sales services 7. Target Customer Swarovski's target customer is â€Å"every female† from 17 to 71 in terms either of buying or gift receiving because they offer diverse products to such a broad range of people. Even though each group (tweens, generations X,Y and Baby Boomers) has its own needs and values, Swarovski meets most of them. Swarovski Jewellery bases most of its market on women of age 25 and above by creating bridal, business, classical and sophisticated collections.It also include men accessories such as bracelets and watches, and of course kids over 6 years old. Also, one of the biggest Swarovski's market target today is fashion industry. Swarovski crystals are affixed to everything from Victoria's Secret bra sets and Kawasaki motorcycles, to the clothing collections of such as Dolce ; Gabbanna and avant-garde vintage revisionists Imitation of Christ. 1) Women collection of * Sophisticated * Business * Classical * Bridal collections 2) Men MEN’s collection * Rings * Bracelets * Necklaces 3) Kids * Disney collection Hello Kitty collection 4) Other Industries: Swarovski crystals are affixed to everything. * Victoria's Secret bra sets * Kawasaki motorcycles * Clothing collections * DJ Headphones 8. CBBE Pyramid Resonance: HIGH LOYALTY Brand resonance is high due to active loyalty of customers Consumer Judgments: GLOBAL BRAND WITH RICH HERITAGE Perfect and innovative crystal products High quality production Consumer Feeling: PRESTIGIOUS ELEGANCE Prestigious, elegant, fragile, dedicated, timeless Humble and sophisticated Feels like a fairy Brand Performance: EXCELLENT SERVICESExtremely durable, serviceable Offers timeless, high quality crystal products Innovative product lines: Optik gears, etc. Brand Imagery: GLAMOROUS Glamorous luxurious crystal pro ducts Women/young ladies with high income, high taste of elegant sophisticated jewelries Brand Salience: HIGH DEPTH & BREADTH Extremely high recognition on the crystal market Most known for its crystal jewelries product line If it's crystal, it’s nothing else but Swarovski! 9. SWOT Analysis: Strengths Strong brand identity and high company reputation World widely recognized market leaderCheap materials, high added value products Craftsmanship (durable quality) Online store New techniques Perfection High quality After sales services Weaknesses Expensive production in Austria Repetitive design Opportunities Diversity of customers of all ages New markets in Latin America ; emerging markets in Asia Various product lines through collaboration Unlimited design according to crystal cutting Threats Cheaper competitors Imitators/substitutes Relies on disposable income of consumers Slowdown in market growth Cheaper artificial crystal 0. Competitors Price: Cartier – Swarovski â⠂¬â€œ Pandora – Preciosa Reputation in jewelry market: Cartier – Swarovski – Pandora – Preciosa Variety of jewelry products: Pandora – Swarovski – Cartier – Preciosa Quality of crystal: Swarovski – Cartier – Preciosa – Pandora 11. Recommendation †¢Product Strategy Swarovski should expand its business in the jewelry market, having more product lines as well as jewelry designs since it's already has a reputation in the crystal industry: Extend their product lines (perfumes, watches, Home electronics , etc. Extend their jewelries products (leather bracelet, wedding ring, etc. ) Focus on jewelry customization †¢Place: Establish stores in Latin America and expand business in emerging markets †¢Pricing No changes †¢Promotion No changes 12. REFERENCE: http://www. swarovski. com/ http://www. brand. swarovski. com/Content. Node/home. fr. html#/en/aboutus/ourevolution http://www. brand. swarovski. com/Co ntent. Node/home. fr. html#/en/aboutus/spirit http://swarovskijewrley. blogspot. fr/2010/09/week-4-marketing-environment. html http://online-jewelry-review. optenreviews. com/swarovski-review. html http://www. brandchannel. com/ http://www. prweek. com/uk/news/890882/Swarovski-hires-Yellowdoor/? DCMP=ILC-SEARCH http://fashion. telegraph. co. uk/news-features/TMG3361538/Swarovski-the-glitz-spirit. html http://www. crystalfanaticsclub. com/about_swarovski. php http://globalfashionanalytics. com/ritejl/brending/157-marketingovaja-strategija-v-ljuksovom-segmente. htm http://news. naver. com/main/read. nhn? mode=LSD&mid=sec&sid1=101&oid=001&aid=0005922714