IMC Plan for Hermes Brand Extension

Hermès Pet Accessories Brand Extension Project FASH 763 Prof. Alessandro Cannata Ives Liu Pratibha Pancholi Weihan Yi Yang

Table of Content • • • • • • •

Executive Summary Introduction Situation Analysis Primary Research

Marketing Strategy Media Strategy The Creative Idea

• •

Campaign Evaluation Closing Recommendations

Executive Summary •

A brand extension of pet accessories for Hermes

•

Entry-level Products

•

A preferred gifting item for pet lovers

•

Multiple avenues for the IMC plan are print, online and public relations

•

Result: brand recall and new product category established

Company Overview - History

Fox Hunting

Company Overview - Products

Company Overview - Products

Company Overview - Products

Company Overview - Products

Equestrian

United States Equestrian Federation (USEF)

Business Opportunity

Hermès, ever since it’s birth in 1837, has been known for specializing in leather, lifestyle accessories, and sports accessories with its focus always on performance. Its logo, since the 1950s, is of a Duc carriage with a horse.

Hermès is also known to be serving the royalty and is acknowledged for it’s exemplary sportswear that is for a very niche market.

Hermès is introducing pet accessories, so as to mark it’s presence in yet another aspect of the lifestyles of its niche customer segment.

Strategy Overview

•

•

Focus on attracting the target market consumer with a newer and nicher product category.

Correct implementation of the decided initiatives will improve the long-term line performance for Hermès and also help the brand dominate the market segment for pet accessories.

SWOT Analysis Strengths • • • • • • • •

Weaknesses

Strong brand name Global Presence 300+ stores across nations Multiple production units Excellent quality Personalization Craftsmanship, Precision, Timelessness High operating margins

•

Opportunities • •

•

Use digitization to full capacity Expansion in emerging/developing countries New product category, lesser competition

Limited digital presence

Threats • • •

Imitation: biggest threat Eurozone financial crisis, global recession High taxes on luxury goods

Competitor Analysis

Headquarters: France Ownership:Subsidiary of LVMH Revenue 2014:$ Market Share:15.4% Strengths: Rich history, high brand awareness, global presence Product: Collar, Leash, Carriage

Headquarters: Italy Ownership: Subsidiary of Kering Revenue 2014: $3.497Millions Market Share: 9% Strengths:Strong brand image, good hold on e-commerce Product: Collar, Leash, Carriage

Headquarters: Italy Ownership: Subsidiary of Kering Revenue 2014: $1.131 Millions Market Share: 2.2% Strengths: Superior craftsmanship, highest quality leather Product: Leash

Headquarters: United Kingdom Ownership: JAB Holding Company Revenue 2014: $4.64 millions Strengths: Contemporary designs, glamorous image Product: Collar

Target Market Our target market would include 3 main categories of people

Pet lovers Existing Hermes customers

Luxury consumers

Target Market

Target Market

Target Market

Target Market These three categories would further be classified by two main age groups that we aim to target

Middle Youth (30-44 yrs old) • Follow contemporary social trends, majority has children • 43% are college educated • Majority white collared women are childless • Active social media users • Represent large group of users of time shifting technology • Income Average: $ 152,679 (Census Bureau, 2014 Dollar)

Target Market

Second City Society & Affluent Empty Nests • Household population: 1,44,113,991 • Social group of the wealthiest families • Mostly married couples with large homes, college degrees & executive jobs • Some live in empty nests • Mostly 45+ yrs of age • Couples living in empty nests have plenty of disposable cash and time • Significant potential: Second City Society (Social Group) & Affluent Empty Nesters (Life stage Group) • Income Average: $ 153,023

1.What is your gender?

3%

2.What is your age?

4% 24%

7% 53%

34% 76%

Male

Female

3. What’s your income range?

18-24 65-74

25-34 75+

35-44

45-54

4.Do you have a dog?

8% 19%

37% 63%

73%

0-$50,000 $100,000+

$50,000-$100,000

Yes

No

55-64

6. where do you buy the dog accessories?

5. What is the size of your dog?

21% 37% 63% 79%

Small

Big

In store

7. How much are you willing to spend on dog accessories annually?

8. What do you look for when you buy dog accessories? (Can select more than one)

70

6%

52.5

3%

35

30% 61%

17.5 0

~$500 $2,500+

$500-$1,500

Online

$1,500-$2,500

Quality

Price

Appearance

Brand

9. Would you pay slightly more for high quality, unique, and welldesigned dog accessories?

10. Would you gift dog accessories?

22%

17%

78%

83% Yes

No

Yes

11. How often do you buy dog accessories?

No

12. Are you aware of the brand Hermès?

10% 5%

27%

7% 51% 28%

1+/year 1/3+ years

1/year

73%

1/2 years

1/3 years

Yes

No

13. Have you ever shopped in Hermès?

14. When you think of Hermès, what comes to your mind? (Can select more than one)

90 67.5

28%

45 22.5

72% Yes

0

Luxury

Performance Equestrian

Handbags

No

15. Which social networking sites do you use?

(Can select more than one)

16. Would you be interested in Hermès dog accessories?

80 60

33%

40

67%

20 0

Facebook Instagram Pinterest

Twitter

LinkedIn

Yes

No

Marketing Strategy

Value & Character •

Founded as a house of harness- and saddle-making in 1839 in Paris, Hermès has always been proud of its heritage and craftsmanship.

•

“We see ourselves as creative craftsmen.” And “The philosophy of Hermès is to keep craftsmanship alive.” : Axel Dumas, CEO Hermes

•

The vision of this brand is to bring satisfaction to customers by providing them with the best quality materials and best craftsmanship with excellent creativity.

Essence: “Only the dog knows how the collar fits�

Marketing Strategy $$$

Positioning strategy

$480 $470

$380

$330

Trendy

Classic

$325

$$

Marketing Strategy Cognitive Stage

Affective Stage

Conative Stage

Desire Interest Attention

Action

Communication Mix Print Ads Magazine (Vogue)

Magazine (Upscale Living)

Print Catalog

Online Social Media: Instagram

Digital: website

Digital: email(digital catalog)

Sponsorship

Value Proposition: Selling luxury is all about selling emotions and in that department the pet accessories brand extension has it’s finger on the pulse as it exploits the emotions the rich and affluent have for their pets.

Media Strategy Activity Map

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Media Strategy Budget Allocation

13% 7% 3%

76%

Print ads

print catalog

Instagram

Digital

Sponsorship

Media Strategy Discipline

Total

%

Print ads

$4,364,208

76.4%

Print Catalog

$ 1,74,900

3%

Instagram

$420.,000

7.3%

Digital(website, email)

$ 7,50,000

13%

Sponsorship

$ 7,000

0.3%

The Creative Idea

The Creative Idea The Brief of Products Hermes pet accessories plans to introduce 3 product categories, namely: • collars • leashes • bags (hand held carriages)

The Creative Idea The MoodBoard

The Creative Idea Print Ads: Magazine Vogue option 1

The Creative Idea Print Ads: Magazine Vogue option 2

The Creative Idea Print Ads: Magazine Upscale Living

The Creative Idea Print Ads: Magazine Upscale Living

The Creative Idea Print Catalog

The Creative Idea Instagram

The Creative Idea Website

The Creative Idea

The Creative Idea

The Creative Idea

Website

The Creative Idea Digital Catalog

The Creative Idea Digital Catalog

The Creative Idea Digital Catalog

The Creative Idea Digital Catalog

The Creative Idea Digital Catalog

Video

The Creative Idea Sponsorship

Campaign Evaluation •

Measure pre-post sentiments and perceptions assessing favorable or unfavorable

•

reactions to Hermes Pet Accessories campaign – brand awareness and brand recall Determine the effectiveness of Hermes Pet Accessories campaign in motivating consumers to move to the next step in the buying process Assess the range of achievement of the market share in the luxury leather goods industry after the campaign Traditional media=Gross Rating Points (GRP) Non traditional Hermes=Click Through Rate (CTR) Social Influence Marketing = Share of Conversation (SOC)

•

• • •

Effectiveness of PR: • • •

Attendance on the events VIP engagement Mentions

Closing Recommendations The execution of the IMC plan will help Hermes to spread the word in the most cohesive manner to their target market.

Hermes Pet Accessories will monitor sales throughout the campaign to measure rises and decline in the market share and adjust specific disciplines as needed throughout the year The introduction of pet accessories and IMC campaign aim to create a new target demographic of the rich and affluent customers looking for gifting options.

This in turn will positively influence the growth and market share of Hermes in the world of luxury leather goods.

THANK YOU