This report contains an advertising communications strategy for a new brand entering the luxury watches market. The new product that will be launched on this market is a high jewellery watch. Luxury watches are defined as the ones sold at i?? 500 or more. Although this definition finds wide acceptance within the market, some industry players would only define luxury watches as those retailing at i?? 2,500 or more. The latter would equate to something like 0. 5% of volume sales in the UK, and that is why we would take the first definition as a reference.
The watch for which we are doing the advertising policy is a gold and platinum watch with black diamonds. The use of innovative and unusual styling is becoming an increasingly important feature of the luxury watch market. There is also some return to yellow gold in watches. A number of high-end companies distinguished their ranges in watches as well as jewellery by the use of far more unusual black, grey or brown diamonds. That is why we want to launch on the market this kind of watch. This report is composed of six parts, which are the advertising steps to follow in order to launch a product in a market.
First we have to do a context analysis, which is a discussion of relevant market dynamics such as market size and growth, positioning of existing brands, etc. Then we have to realize a demographic and psychographics description of the target market. After that, we have to explain the advertising objectives, before describing the advertising strategy regarding to the message and the media decision. Before the advertising campaign is released, advertising agencies often elect to pre-test the campaign. Finally we have to evaluate the campaign.
Many criteria (the demographic, geographic, and psychographics ones) could be used by a firm to define the category of buyers that shares the similar needs and which have the similar buying behaviour. There are certainly more population segments which can be used to determine a purchase behaviour, but we will just consider the most relevant of them. The luxury market could also be segmented according to the sex criteria: Indeed, men’s watches are quite dissimilar from women’s. There are differences on the precious metals used for the fabrication, on the size of the strap and of the dial…
There are marked differences in attitudes towards luxury watches according to age. We can categorise for this market 5 main age band: 15-24; 25-34; 35-44; 45-54; and 55-64. Indeed, children aged less than 15 years old have in average not the income to buy such products, and people older than 64 are not taken into consideration because of the life length. The luxury watches market provides very high prices products. As a result, the use of the age as a segmentation base, will enable us to determine the age band which will buy the most luxury watches, in order to determine a potential demand.
It is also an important criterion because it provides information about people’s purchasing power. For example, people with no family at home can use a bigger part of their income to buy more products for themselves even luxurious products. Indeed they do not have to spend a lot of money for their family (more food, clothes for the children, accommodation… ). Income level can be AB, C1, C2, D, and E. Naturally the income is a very important factor for the luxury market, because it determines the purchasing power of consumers, which has to be very high to buy a watch for more than i?? 500.