3 Luxury Branding & Marketing Strategies to Boost Your Bottom Line

Mastering the Luxury Strategy by applying 'The 24 Anti-Laws of Marketing'​ to your service-based business

When it comes to luxury branding and marketing services, you can not think like a normal brand. We recently created an episodic video series on YouTube, Instagram, and TikTok that talks about "How To Make Your Brand Feel More Expensive".

The reason we did this was to show service-based businesses that they can apply "Luxury Branding & Marketing Principles" to their own business, even if they are not selling fancy cars and clothes.

There are 3 possible strategies to reach high-end clientele:

1. LUXURY:

The Luxury strategy means making your brand really special and unique by leveraging intangible elements of singularity- i.e. time it takes, heritage, country of origin, craftsmanship, man-made, small series, prestigious clients etc. (read the 24 Anti-Laws of Marketing below).

eg. Rolex

2. FASHION:

The Fashion strategy focuses on making your product / service really cool and trendy so people want to buy it because it's popular. Here, elements like heritage and time, are not important; fashion sells by being fashionable, which is to say, a very perishable value.

eg. Supreme

3. PREMIUM:

The Premium strategy means charging more money for your product, but also making it better quality than other similar products. It is summarized by “pay more, get more.” Here the goal is to prove -through comparisons and benchmarking- that this is the best value within its category. The quality/price ratio is the motto. This strategy is, by essence, comparative.

eg. Apple

All 3 of the above brands are able to charge high-prices, but they go about it in different ways.

Luxury is something you don't really need but want because it makes you feel good. It's all about making you feel excited and happy, like you're really special. Luxury things don't make you feel safe or secure like everyday things do.

The reason luxury brands exist is to make you imagine amazing things and feel inspired, not to solve your everyday problems. Some people say that doing market research can make products feel less luxurious because it makes everything the same, so luxury brands try not to listen to customer feedback, or what everyone else is doing.

While classic brands should specify its positioning, and then convey it through its products, its services, its price, etc. when it comes to luxury, being unique is what counts, not any comparison with a competitor. Luxury makes the bold statement “this is what I am,” and "we're worth the price we charge." And if you want it, you'll pay for it. Period.

The 24 anti-laws of marketing

1. Forget about positioning; luxury is not comparative.

2. Does your product have enough flaws to give it soul?

3. Dominate the client.

4. Make it difficult for clients to buy.

5. Protect clients from non-clients, the big from the small.

6. The role of advertising is not to sell.

7. Communicate to those whom you are not targeting.

8. The presumed price should always seem higher than the actual price.

9. Luxury sets the price; price does not set luxury.

10. Raise your prices as time goes on, in order to increase demand.

11. Keep raising the average price of the product range.

12. Keep stars out of your advertising.

13. Cultivate closeness to the arts for the initiate.

14. Don’t pander to your customers’ wishes.

15. Don’t respond to rising demand.

16. Do not be salesy.

17. Do not relocate your factories.

18. Do not hire consultants.

19. Do not test.

20. Do not look for consensus.

21. Do not look after group synergies.

22. Do not look for cost reduction.

23. Do not sell openly on the Internet.

24. Keep non-enthusiasts out.

Let's look at 3 of the above strategies, and how they apply to luxury brands, and how you can apply them to your service-based business:

Forget about positioning; luxury is not comparative.

This suggests that a luxury brand should not try to compare itself to its competitors or position itself in relation to other brands. Instead, the brand should focus on creating a unique identity and image that sets it apart from other products and appeals to its target customers.

One example of a brand that uses this strategy is Rolls-Royce, a luxury car brand. Rolls-Royce has a long history of producing some of the most exclusive and prestigious cars in the world. The brand is known for its high-end design, craftsmanship, and attention to detail.

Rather than trying to position itself in relation to other luxury car brands, Rolls-Royce focuses on creating a unique identity that is rooted in its heritage and reputation for excellence. The brand's advertising and marketing campaigns often emphasize the quality of its materials, the precision of its engineering, and the level of customization and personalization that it offers to its customers.

By emphasizing its unique qualities and focusing on its own identity, rather than trying to compete with other luxury car brands, Rolls-Royce is able to maintain its position as one of the most exclusive and prestigious brands in the world.

Here's an example of how this principle could be applied to a service-based business:

Let's say you run a high-end spa that offers a range of luxury services such as massages, facials, and body treatments. To apply this anti-law, you could focus on creating an immersive and exclusive experience for your customers that is not based on comparison with other spas or brands.

For example, you could offer personalized consultations and treatments that are tailored to each customer's individual needs and preferences. You could also create a luxurious and tranquil atmosphere within your spa, with calming music, comfortable seating, and fragrant aromatherapy oils.

To promote your spa, you could use marketing tactics that focus on the experience rather than on comparisons with other brands. For example, you could create a video or social media campaign that showcases the relaxing and rejuvenating experience of visiting your spa, with testimonials from satisfied customers. You could also partner with luxury hotels or travel companies to offer exclusive packages that include a stay at your spa as part of the experience.

Make it difficult for clients to buy

Hermès is known for creating high-end products that are considered exclusive and luxurious. The brand is famous for its iconic Birkin bags, which are handmade and require a long waiting list to purchase. In fact, the waiting list can be so long that customers sometimes have to wait years to get their hands on a Birkin bag.

The limited availability of Hermès products, along with the long wait times and complex purchasing process, creates a sense of exclusivity and desirability among customers. It also helps to reinforce the brand's reputation as a high-end luxury label that is only accessible to a select group of customers.

By making it difficult for customers to buy their products, Hermès is able to create a sense of exclusivity and prestige around its brand. This strategy has helped the company to maintain its position as one of the most exclusive and sought-after luxury brands in the world.

Here's an example of how this principle could be applied to a service-based business:

Let's say you run a high-end consulting firm that specializes in helping businesses optimize their supply chains. To apply this anti-law, you could create a rigorous vetting process for potential clients, requiring them to submit detailed applications and complete a series of interviews and assessments. You could also limit the availability of your services to a select group of high-value clients, with strict criteria for admission.

To promote your services, you could use marketing tactics that emphasize the exclusivity and prestige of your consulting firm. For example, you could create case studies or testimonials that highlight how your services have helped top-tier clients achieve significant cost savings or operational efficiencies. You could also host exclusive events or webinars that offer insights into the latest trends and innovations in supply chain management.

Communicate to those whom you are not targeting

One example of a luxury brand that uses this technique is Tiffany & Co. The brand's famous blue boxes and white ribbon packaging have become iconic, and people all around the world recognize them as symbols of luxury and prestige.

Tiffany & Co. has also been known to create ads and marketing campaigns that target audiences who may not necessarily be able to afford their products, but who are still interested in luxury and fashion.

For example, in 2017, the brand launched an ad campaign featuring Lady Gaga, who is known for her avant-garde style and over-the-top fashion sense. While Lady Gaga may not be the typical Tiffany & Co. customer, the campaign was designed to create buzz and generate excitement around the brand among a wider audience.

By communicating to those who are not necessarily the brand's target customers, Tiffany & Co. is able to create a sense of exclusivity and intrigue around its products. This strategy helps to build brand recognition and awareness, and it can also lead to increased sales as people become more familiar with the brand and its products.