Description
lifestyle products Factors affecting their selection, Luxury perception, Lifestyle products, Psychographic Variables, Lifestyle marketing with a Case of Harley Davidson.
MARKETING OF LIFESTYLE PRODUCTS
AGENDA
Introduction ? Factors affecting their selection ? Study report : Luxury perception ? Lifestyle products ? Lifestyle marketing ? Case: Harley-Davidson
?
•
Lifestyle:
It is the way a person lives. It is a characteristic bundle of behaviors that makes sense to both others and oneself in a given time and place, including social relations, consumption, entertainment, and dress.
A lifestyle typically also reflects an individual's attitudes, values or worldview. Therefore, a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity.
•
Lifestyle brand: It is a brand that embodies the values and aspirations of a group or culture. Its like a magnet that attracts people with certain philosophies and lifestyles to buy the products that this brand promotes. Lifestyle marketing: It attempts to group customers according to some amalgamation of three categories of variables Activities, Interests, and Opinions (AIO)
•
This helps marketers understand how to reach customers in the following categories: • Singles • Teenagers • Children • College students • Seniors
SUCCESS
•
One key indication that a brand has become a lifestyle is when it successfully extends beyond its original product category. For example, Nike used to be a product-focused company focusing on making running shoes. But over time, the company and its logo has become associated with the athlete subculture. This has allowed Nike to expand into related athletic categories, such as sports equipment and apparel.
SEGMENTING CONSUMER MARKETS
Geographic Demographic Psychographic
Behavioral
PSYCHOGRAPHIC VARIABLES
Lifestyle Identification
Activities
Opinions
Interests
FACTORS LEADING TO PURCHASE OF
LIFESTYLE PRODUCTS
Psychographic Profiles Psychographics
Buyers grouped based on • Psychological or personality traits • Lifestyle • Values
SRI – CBI’S – VALS
SEGMENTATION
PSYCHOGRAPHIC
Study report : Luxury perception
Sample – 3 (France, UK, Russia) Sample size – 300 (100 each) Parameters measured Aesthetics - Design, Color and Style ? Premium Quality - product longevity& durability ? Personal History – reputation ? Self-pleasure - self-cultivation ? Expensiveness - high price & craftsmanship ? Aspiration - perfection, sophistication, self-refinement
?
SURVEY ANALYSIS
SURVEY ANALYSIS CONTD…
It is necessary to take into account the consumer perceptions of luxury. ? A company can stimulate consumer purchase behaviour of its luxury products through careful management of its marketing strategies. ? The cultural hierarchies of luxury perceptions can be used as guidelines for salesmen to sell successfully products to customers.
?
LIFESTYLE PRODUCTS
1.
2.
3. 4.
5.
6.
Dove Harley-Davidson Adidas-Sports gear Tag-Heuer Mc-Donalds Chrysler
7. BMW 8. Apple 9. Nike 10.Victoria’s secret 11.Louis Vuitton 12.Perrier
LIFESTYLE MARKETING
?
Many companies have unsuccessfully attempted to turn their brands into lifestyle brands. Certain brands appear to lack the cachet or excitement to make the transition. Both McDonalds and Microsoft have attempted to become lifestyle brands in the last decade, and had marginal success at best. Starbucks has also struggled on this front, with failed or struggling attempts to expand into music, magazines, and merchandising.
LIFESTYLE MARKETING
? ?
?
?
A paradigm shift of 21st century from the ‘Niche Marketing in 80’s and ‘brand craze’ in 90’s. Lifestyle marketing is having a promotional approach centered on the interests, values, attitudes and ‘WAY OF LIFE’ of consumers/target group. Identifies the potency of a customer's chosen lifestyle for determining the sort of products to be purchased and the specific brands that are further likely to appeal to the chosen lifestyle segment The general presumption is that the increasing shift toward brands simply reflects our culture's on-going obsession with displays of wealth and status — the big name brand signaling that you can afford the best.
LIFESTYLE MARKETING
?
?
?
?
Niche strategy: A small unique part of the segment e.g: expensive cars and accessories. Market segmentation: Subdivide the market into distinct sub-market of customers that have similar needs. e.g: behaviorist, psychographic. Product line segmentation: A group of closely related products with benefits desired by consumers. e.g: different shades and flavors of cosmetic products Differentiated segment: Appeal to 2 or more welldefined segments with separate marketing mix for each segment. e.g: based on categories related to believers, strivers, makers and strugglers.
CASE STUDY HARLEY DAVIDSON
?
•
Building Success
Understanding the customers’ emotions and motivation Determining the factors of loyalty Translating this information to effective advertising
?
Measuring Success
Currently 22% of all U.S. bike sales Demand above supply Sales doubled in the past 5 years with earnings tripled.
•
• •
• •
THANK YOU !
doc_715917668.ppt
lifestyle products Factors affecting their selection, Luxury perception, Lifestyle products, Psychographic Variables, Lifestyle marketing with a Case of Harley Davidson.
MARKETING OF LIFESTYLE PRODUCTS
AGENDA
Introduction ? Factors affecting their selection ? Study report : Luxury perception ? Lifestyle products ? Lifestyle marketing ? Case: Harley-Davidson
?
•
Lifestyle:
It is the way a person lives. It is a characteristic bundle of behaviors that makes sense to both others and oneself in a given time and place, including social relations, consumption, entertainment, and dress.
A lifestyle typically also reflects an individual's attitudes, values or worldview. Therefore, a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity.
•
Lifestyle brand: It is a brand that embodies the values and aspirations of a group or culture. Its like a magnet that attracts people with certain philosophies and lifestyles to buy the products that this brand promotes. Lifestyle marketing: It attempts to group customers according to some amalgamation of three categories of variables Activities, Interests, and Opinions (AIO)
•
This helps marketers understand how to reach customers in the following categories: • Singles • Teenagers • Children • College students • Seniors
SUCCESS
•
One key indication that a brand has become a lifestyle is when it successfully extends beyond its original product category. For example, Nike used to be a product-focused company focusing on making running shoes. But over time, the company and its logo has become associated with the athlete subculture. This has allowed Nike to expand into related athletic categories, such as sports equipment and apparel.
SEGMENTING CONSUMER MARKETS
Geographic Demographic Psychographic
Behavioral
PSYCHOGRAPHIC VARIABLES
Lifestyle Identification
Activities
Opinions
Interests
FACTORS LEADING TO PURCHASE OF
LIFESTYLE PRODUCTS
Psychographic Profiles Psychographics
Buyers grouped based on • Psychological or personality traits • Lifestyle • Values
SRI – CBI’S – VALS
SEGMENTATION
PSYCHOGRAPHIC
Study report : Luxury perception
Sample – 3 (France, UK, Russia) Sample size – 300 (100 each) Parameters measured Aesthetics - Design, Color and Style ? Premium Quality - product longevity& durability ? Personal History – reputation ? Self-pleasure - self-cultivation ? Expensiveness - high price & craftsmanship ? Aspiration - perfection, sophistication, self-refinement
?
SURVEY ANALYSIS
SURVEY ANALYSIS CONTD…
It is necessary to take into account the consumer perceptions of luxury. ? A company can stimulate consumer purchase behaviour of its luxury products through careful management of its marketing strategies. ? The cultural hierarchies of luxury perceptions can be used as guidelines for salesmen to sell successfully products to customers.
?
LIFESTYLE PRODUCTS
1.
2.
3. 4.
5.
6.
Dove Harley-Davidson Adidas-Sports gear Tag-Heuer Mc-Donalds Chrysler
7. BMW 8. Apple 9. Nike 10.Victoria’s secret 11.Louis Vuitton 12.Perrier
LIFESTYLE MARKETING
?
Many companies have unsuccessfully attempted to turn their brands into lifestyle brands. Certain brands appear to lack the cachet or excitement to make the transition. Both McDonalds and Microsoft have attempted to become lifestyle brands in the last decade, and had marginal success at best. Starbucks has also struggled on this front, with failed or struggling attempts to expand into music, magazines, and merchandising.
LIFESTYLE MARKETING
? ?
?
?
A paradigm shift of 21st century from the ‘Niche Marketing in 80’s and ‘brand craze’ in 90’s. Lifestyle marketing is having a promotional approach centered on the interests, values, attitudes and ‘WAY OF LIFE’ of consumers/target group. Identifies the potency of a customer's chosen lifestyle for determining the sort of products to be purchased and the specific brands that are further likely to appeal to the chosen lifestyle segment The general presumption is that the increasing shift toward brands simply reflects our culture's on-going obsession with displays of wealth and status — the big name brand signaling that you can afford the best.
LIFESTYLE MARKETING
?
?
?
?
Niche strategy: A small unique part of the segment e.g: expensive cars and accessories. Market segmentation: Subdivide the market into distinct sub-market of customers that have similar needs. e.g: behaviorist, psychographic. Product line segmentation: A group of closely related products with benefits desired by consumers. e.g: different shades and flavors of cosmetic products Differentiated segment: Appeal to 2 or more welldefined segments with separate marketing mix for each segment. e.g: based on categories related to believers, strivers, makers and strugglers.
CASE STUDY HARLEY DAVIDSON
?
•
Building Success
Understanding the customers’ emotions and motivation Determining the factors of loyalty Translating this information to effective advertising
?
Measuring Success
Currently 22% of all U.S. bike sales Demand above supply Sales doubled in the past 5 years with earnings tripled.
•
• •
• •
THANK YOU !
doc_715917668.ppt