BRAND IMAGE

Brand Image and Luxury Goods

Brand Image and Luxury Goods

Introduction

The advent of the 21st century has witnessed tremendous expansion in global retail industry. It has grown by the rate of 4.9% in 2003 and reaches the combine market value of $4.6 Trillion (Data Monitor - 2004). Fashion retail industry is emerging as one the most competitive markets in contemporary business environment. Nowadays, consumers and more specifically young adults are spending billions of dollars annually on their favourite choice of luxury retail brands. No matter, where one goes, one can find large size billboards of retail ads promoting luxury brands 24/7. The decision to choose from infinitive options available depends on the capability of the brand to keep its promises, and provide consumer-centric benefits both on the product and psychological level.

However, increasing growth in fashion retail industry also have to struggle with other market factors such as Unpredictable nature of demands, fast fading fashion trends, shrinking sales seasons, delays in delivery, overvalued competition and thinning profit margins. All of these conditions are forcing luxury retailers to reconsider traditional marketing strategies, and to use brand image as an alternative to succeed in fast changing environment.

The objective of this research proposal is understand as to what extent does brand image influence customers choice in the purchase of luxury goods, and how companies can use brand image to compete in current global environment. The research proposal also addresses the scope of brand image that is its social value, and its comparison with functional benefits of the brand. It also discuss in length, how the premium Prada brand is positioning itself in the market, and why consumers are overlooking its high prices and limited functional benefit, and instead buying it on its face value (brand image) alone. In addition, the research proposal is also try to identify the branding strategies Prada incorporates to stay ahead in high end fashion business.

Literature Review

Retails consumers around the globe perceive fashion brands as premium brands that have the capability to add value to customer experience (Doyle, 1991). This added value can come from its quality, packaging, designing, brand repute, and even hype. There are two basic values that have the potential to drive brand equity. The first one is its functional value such as price, design, and technology and store layout. The second one is its emotional values in the minds of its consumers. For instance, being classically elegant, stylish and sexual is the emotional appeal of the brand Prada (Doyle, 1991).

The competitive strategic advantage a fashion retailer can have is its ability to provide a unique position of its brand in the mind of its consumer. All the marketing and brand promotional tools they utilize should be in line with the main theme and reflect brands function and emotional appeal (Ring et al 1980). As stated by Saymen, the positioning of a retail brand comes derives from the created perception of its product mix and its imagined value among its target ...