With the ever-changing advances in technology and
globalization, implementation of marketing strategies has become
increasingly effective in relation to growth. This can be applied to
both the manufacturer and the showroom. Your marketing strategy begins
with branding and whether it is a product or a service, the same
principles apply.
Manufacturers are responsible for the product and showrooms
provide the service. Ideally in a perfect world, the branding of a
product should be parallel with the quality of service that the showroom
delivers. Internet exposure, price competition and volume have been
wedges in what should be a perfectly balanced relationship. For
example, a luxury brand being sold in a showroom primarily known for
discounts and low prices sacrifices product integrity. There are three
strategies identified in the book, The Luxury Strategy - luxury, premium, and fashion.
- Luxury - Highest value and pricing power. Country of origin, manufacturer process, exclusivity and limited availability are all factors. A luxury product and service appeal to prestigious clientele that are enthusiastic about the product and prefer to be educated rather than informed.
- Premium - Quality-Price ratio. Pay more for higher quality product and service. While this may seem similar to a luxury strategy, the premium outlook remains comparative to the consumer.
- Fashion - The hot and trendy approach. Timelessness is a non-factor, because this branding approach is all about marketing the season's hottest trends.
Taking all these strategies into consideration, it is
interesting to see what companies have done in other industries as well
as our own. Luxury brand names such as Mercedes Benz and Tesla have
expanded by developing premium models that still deliver a high quality
product at a more modest price. We also see more standard brand names
develop luxury lines, even though seemingly more difficult to penetrate
the luxury market with a standard brand as a parent company. Decorative
plumbing has seen the likes of these strategies through several
companies recently.
Industry Practices
As an industry, showrooms and manufacturers must collectively
aim to remain consistent through parallel branding strategies. Equal
responsibility is shared - by showrooms who intentionally select lines
that are parallel with their identity, and by manufacturers who should
do the same by upholding product integrity through parallel level of
service practiced by the showroom. Essentially, both the showroom and
manufacturer should want to collectively reach the same type of
consumer.
Anti-Laws
The Luxury Strategy discusses what they identify as
"anti laws," essentially counter-intuitive to what might be used in
traditional marketing techniques. Traditional practices such as:
advertisements, flyers and promos are effective with premium and fashion
strategies, but luxury branding requires a different approach. Here
are some anti-laws that caught my attention in relation to our beloved
DPH industry.
Forget about positioning, luxury is not comparative
What makes your product or service
unique? Uniqueness is the essence of your identity and should be the
one element that makes your brand unrivaled from your competition. In
decorative plumbing, that could have a myriad of possibilities. I know
showrooms that have adopted some very creative service practices from
on-site consultations and deliveries to designer presentations. The
takeaway is to discover what is unique about your brand and deliver it
consistently.
Keep non-enthusiasts out
Believe it or not, there are
consumers who share our passion for plumbing. These are customers who
approach their bath and kitchen design as an investment, not a purchase.
In return, we must educate them rather than inform. Bargain hunters
may showroom, visiting your boutique for information then troll the
Internet for the lowest price. No problem - in a free market they have
the liberty to do so. Showrooms can protect themselves though by
focusing on education to attract high-end consumers seeking this level
of service. Do not cater your product or business to those not
enthusiastic about plumbing; instead develop a brand that serves those
who are.
The role of advertising is not to sell
If you do decide to create an
advertising campaign, do not send the message of "selling". Advertising
in the luxury market should be more about increasing brand awareness.
Your uniqueness should be the consistent message and with the right
approach, the customer will yearn for what you have to offer.
Luxury sets the price, price does not set luxury
Remember, bath and kitchen is an
investment. You cannot put a price on comfort in these integral parts
of a home. Quality of life is greatly increased when the bath and
kitchen feels right, and that is what luxury is about ... how a person
feels. In decorative plumbing, we are providing the product and the
design for a person's most intimate and social space in their home.
Do not sell openly on the internet
This topic is as controversial as
it is daunting. As a plumber, I have witnessed first hand the
debilitating effect Internet sales have had on plumbing. Misinformation,
missing parts, poor interpretation of specifications, lack of plumbing
knowledge...the list goes on. I have personally installed plumbing
products purchased online knowing full well I will be back soon to
repair or replace them. High-end consumers know that luxury products
cannot be purchased online. Even Amazon has failed, and will continue
to do so, to penetrate the luxury market. The reason is because the
high-end consumer prefers to pay a premium for confidence in their
investment. Manufacturers that allow their products to be sold online
have experienced the hardships of rebuilding a luxury brand. On the
showroom front, we briefly dealt with the difficulty of having to
compete but have since risen above the challenge. To uphold product
integrity, luxury brands do not sell openly on the Internet even beyond
decorative plumbing.
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