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AMB 211- Brand ManagementAssignment 1: Brand Positioning AnalysisBrand: Cartier Tutor: Nathalie Whale Student Name: Nicholle Zoe Hon Student ID: N8172832Company Overview. Cartier is an innovative exclusive luxury brand that is well known for its jewelries and watches. It began in 1899, and it is well known for its excellent craftsmanship. Cartier has an excellent reputation in the industry for its fine watches and precious stones and it is well known for its high brand loyalty and is a popular global brand product. Cartier has a strong reputation in the industry for its excellent craftsmanship and exquisite design. Their mission statement states that it wishes to be both fashionable yet produce aspirational styles to their range in other terms to be the art of unique. Cartier caters to a very niche segment of its target market; celebrities, however there target market is exclusively for men and women with a high income. Frame of Reference. Cartier’s frame of reference is to be unique and offers a wide range of high quality premium craftsmanship design of watches and jewelries. Target market is described as “potential buyers who have sufficient interest in, income for and access to a product” (Keller, 2013, p. 79). It is important to be able to identify the target market because different consumers may have different brand knowledge and therefore consumers may have different perceptions and preference about the specific brand; such as Cartier. As previously mentioned, Cartier is a luxury brand that specialize in luxury jewelries and watches that targets a specific niche market as the brand itself is of excellent quality with an outstanding craftsmanship’s. Cartier’s target market is for both men and women who earns a high income and are high powered in their own respective industry. According to Boddewyn (2008, p. 145), they are considered to be “super affluent consumers elite worldwide or also known as society trendsetters, who are usually price insensitive”. Cartier targets their customers using demographics; the super affluent consumers are usually price insensitive, meaning that their average income would range between $250,000 and above Stevens (2004, Para. 2). Based on statistics, about 100,000 Australians have a “net wealth worth of $5 million”, and a quarter ($25,000) have a “net wealth above $10 million” written by Khadem (2016, Para 4). Cartier’s demographic targets both men and women that are aged between 30 to 50 years of age mainly the generation X where consumers are able to purchase luxurious goods with their own income. According to Keller (2014, p. 36) “brands can serve as symbolic devices allowing consumers to project their self image, certain brands are associated with certain types of people and thus reflect different value or traits”. The majority of Cartier’s psychographics are for consumers who wants to portray their high status, as Cartier are both a watchmaker and a jewelry brand, it is understood that “watches have been a status symbol” as discussed by Adams (2013, Para 5). Behavioral segmentation is often classified as “one of the most valuable in understanding branding issues because they have a clearer strategic implications” explained (Keller, 2013, p. 79). Cartier’s customers are classified as the rich and premium users and often use the product on a daily basis. Based on Cartier’s mission statement of the brand being the art of unique, Cartier ensures customers that their product can be used on a daily basis that can be seen on their webpage Cartier (2016). Customers have an extremely strong brand loyalty to Cartier because of its design and its craftsmanship, for example a Cartier watch battery can last up to 3 years that was mentioned on their web page, Cartier (2016) and thereby with the excellent manufacturing of the product customers are more satisfied with the brand, this allows customers to be loyal to the brand because of its excellent quality. Brand associations are the “associations with image or sound with the brand” (Keller, 2013, p. 78). The elite consumers often recognize the brand by its logo as it possess the mauve red with their brand name on it which is often easily to recognize. Core benefit is “the fundamental need or want that consumers satisfy by consuming the product” (Keller, 2013, p. 74). The elite consumers of Cartier’s fundamentally want to satisfy their needs of proving a status in society. Cartier is considered to be a high involvement product that requires thinking before purchasing, it has been proven that “luxury is all about image” as mentioned by ET Bereau (2011, Para.5), majority of consumers buying luxurious goods are buying into a lifestyle, therefore consumers who often buys expensive brands like Cartier are buying into a lifestyle rather than a need. Cartier’s consumer knowledge structure is long term and the brand is an high involvement product; where a long period of thinking is involve before purchasing. Some of the key associations consumers would have towards the brand would be the quality of the brand, the reputation of an exclusive brand where Cartier offers the distinct feature of “the tank”, where it features on the face of the watch, the uniqueness of the product, the style and prints on the watch itself, and the user friendly interface of the hands in the watch. These key associations are the motives that majority of them would purchase, with the watches being exclusive and the uniqueness of each product, it drives the consumers to purchase.Nature of Competition. There are three direct competitors for Cartier and several indirect competitors. Direct competitors are where brands sell similar products and price range. Indirect is where “it does not share the same attributes with other brands, but more of abstract association and face indirect competition in a more broadly defined category” (Keller, 2014, p. 89). Some of Cartier’s direct competitors are Longines, Tag Heuer and Omega, while their indirect competitors are Rolex, Panerai, Mont Blanc, Hublot and Piaget. These brands are not a direct competition therefore their level of competition involved is low, however for the higher level of competition involves Omega, Tag Heuer and Longines because their price range is similar. Cartier is positioned to be in the high involvement product category, as it is an exclusive and premium item that retails starting from $6,500 therefore majority of the elite consumers would only purchase one product at a visit. Points of Parity It can be identified that the three elements that both brands need to employ to be successful. Firstly, the quality of the watches should be of high standards as consumers are paying for a luxurious good, it is vital that it is value for money. The design should be compatible with both sexes (men and women), meaning that both men and women are able to use the product despite it being a men’s watch, versatility is important in this aspect. Also to be able to identify the quality of the watches such as the materials that are being used in the product will show the consumers the quality of the product. Lastly Keller (2002) explains “managers of established brands also need to reassess points of parity from time to time”. The packaging is the most important aspect of a luxurious good, the item must be packaged in an aesthetically pleasing box that should include, materials that are easily felt such as silk, it should include their logo on the top of the box to emphasize on the brand. Both Cartier and Omega possesses these features, without these points of parity, consumers will perceive the items to be cheap or low quality. Point of difference. Point of different is defined as “attributes or benefits that consumers strongly associate with a brand, positively evaluate and believe that they could not find to the same extent with a competitive brand” (Keller, 2014, p. 86). There are three main point of different between Omega and Cartier. Firstly, Omega uses materials that are more durable on a daily basis such as using alloy for their screen and a metal strap which has turned the brand into an iconic recognizable symbol in the watch industry, while Cartier uses materials that are more luxurious such as steel case and premium leather as the strap. Second point of difference is the style. Omega posses a more sporty look that is feasible for an everyday look while Cartier is more towards a sophisticated look that emphasis on its premium and exclusive category. The third point of difference is the versatility. Omega possesses a variety of design in the watch section that can be used by both men and women between the ages of 18-60 years old, where customers of a younger age can use the product whereas Cartier is more exclusive for users that are older. As mentioned earlier in the target market, Cartier focuses on consumers that are of 30-50 years of age. Price Strategy: Cartier follows a premium price strategy as a classic watch retail price starts at $4000 and above. Kapferer (2008, p. 329) explains, “Price is an indication of quality… and therefore am able to create the image of a product with a high standing”. Brands such as Cartier has an extension line called the Must De Cartier which offers products such as pens, cigarette lighters at a lower price range. With these prices Cartier are considered to be a premium brand that contributes to its credibility to the quality of the product. On the other hand, Omega is priced similarly to Cartier as one classic watch could retail up to $4000, depending on the design and craftsmanship. Place: Cartier operates on a “selective distribution system” as explained by Domagalska (2012, P. 34). Cartier watches and jewelries are only available through their own retail store and some high-end watch dealer shops. In Australia, Cartier is available through David Jones. Omega operates similarly to Cartier on a selective distribution system, by maintaining their distribution technique only available through high-end departmental stores or authorized watch dealerships. Both of the brands are available online however, consumers are not allowed to purchase items online as this would have gone against their credibility and luxurious feature. Product Strategy: Cartier aims to be the “art of unique” by positioning itself to be a luxurious, premium and exclusive product. Cartier has a high quality of manufacturing, as each product has gone through excellent craftsmanship before distribution, Cartier uses high end tools such as the high end caliber hands for the watch, and ornaments and crystals for their jewelries. Omega positioned itself to be durable and with their tag line what is your choice although Omega is not as expensive as Cartier, it is considered to be a luxurious and premium product because of its price. Omega is more dedicated to using materials such as metal, steel and alloy to maintain their product’s shelf life, however with their price range the materials that are used are not as good quality as Cartier’s. Desirability: These key points of differences that were mentioned are meeting consumer’s desirability by making each product unique. As elite consumers who earn a high income, before purchasing the product most consumers look upon the points of difference. Consumers desire to buy expensive and luxurious items include deliverability and the distinctiveness. Although Omega and Cartier are relatively similar, each product have their own distinctiveness, as previously mentioned the style and the method of distribution draws upon consumers desire to own their own luxurious goods. In an interview with Cartier’s CEO, he has stated “It is timeless because its design will make it desirable 50 years from now”, therefore Cartier is focusing on the long term rather than the short term. Deliverability: As mentioned, Cartier delivers their own points of difference through customer service. Cartier offers a wide range of alcoholic beverage when consumer enters a Cartier Store where they are able to communicate with a staff in person. Another point of difference that has made Cartier more feasible is their logo and their packaging. Cartier focuses on their regal packaging that includes cushion and a wipe cloth for your specific product, after 50 years of producing watches and jewelries, Cartier manages to constantly deliver their point of different to their consumers. Omega communicates their point of difference to their consumers by justifying the materials that they use, similarly to Cartier. Both brands are able to continue to deliver their key points of difference in the long term because of the uniqueness of each product. It is important to be able to distinguish each point of difference for a brand because it will allow the brand to separate themselves with the other brands that are in the similar price range. It is important to imprint their brand into the consumers mind through the use of style, icon and colors as this would be imprinted in their long-term memory. Recommendations: Some recommendations include creating ambassadors for their brands, as Cartier does not have a brand ambassador. By having a brand ambassador, this will increase their memory of the brand for the long term. Cartier should strengthen the awareness of their range such as their bag range as consumers are unaware of the range.Lastly, Cartier should be aware of the high growth in the luxury segment such as watches and jewelries in emerging countries and economies. In the short term, Omega’s points of difference in durability can turn into a point of parity as materials would be difference, and not all design are equally the same. A point of difference can become a strong, favorable and unique brand association because it can allow consumers to remember the brand in their long term memory, such as Cartier with their customers service of alcoholic beverages upon arrival, this type of service will be embedded into the minds of the consumers. Brand ambassadors can deliver these recommendations because consumers will associate a brand with the person that is advertising the product. For example, Amanda Seyfried was the brand ambassador for Movado has created hype and that consumers relate the brand to her – this has been imprinted into the consumers mind. Reference List. Keller, K. L. (2013). Strategic Brand Management: Building and managing brand equity (4th ed.). England: Pearson Publishing. Boddewyn, J. J. (2008). International Business Scholarship: Volume 14 of Research in global strategic management (4th ed). Emerald Group Publishing. Stevens, P. (2004). Demographics that define the luxury market, reports unity marketing; three segments make up the top 20 percent of U.S households. Retrieved from , N. (2016). Call for death tax on ‘super rich’ families. Retrieved from , A. (2013). Top watches for social peacocking. Retrieved from . (2016). Cartier. Retrieved from , ET. (2011). Cartier here luxury’s a lifestyle. Retrieved from , K. (2002). AMB211 Brand Management: Three questions you need to ask about your brand. Retrieved from , J. N. (2008). The New Strategic Brand Management. Retrieved from , A. W. (2012). Consumer Sales Guarantees in Europe. Retrieved from ................
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