Assesing marketing opportunities

The marketing strategies used by an organization play a pivotal role towards determining the success or failure of the organization. In order for an organization to market its products and services successfully, it must research and understand the needs of the consumers, and use this information to develop products and services that satisfactorily address those needs.Advertising We will write a custom essay sample on Assesing marketing opportunities specifically for you for only $16.05 $11/page Learn More One way of achieving this aim is by developing models that evaluate the consumer buying behavior within a given market. This paper shall describe the steps followed by consumers in the process of buying oatmeal manufactured by Quaker Oats Company. The cultural factors that influence consumers to buy this product shall also be discussed. There are five steps that consumers take in order to make a conclusive purchasing decision. The rate at which consumer s pass through these stages depends on the price, place, promotion and product being sold. Below is a graphical representation of the consumer buying behavior: Figure 1: Consumer Buying Behavior Model In regard to the selected product (Oatmeal), the consumers recognizes the need or problem. This can be triggered by an internal stimuli (hunger), which drives the consumer towards buying this product. After identifying the need or desire, the consumer may or may not look for information about the product. If the consumer has used the product before, he/she may buy the product again. However, if the consumer has not yet used the product, he/she may obtain the information about this product from personal or commercial sources. For the oatmeal, commercial sources such as advertisements, packaging and dealers could be useful for potential consumers.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The information gathered gives consumers a set of brand choices. In order to select the preferred brand, consumer compare and contrast the brand from a logical or evaluative processes. Some may use calculations (price and content preferences) or choose the product brand on impulse or intuition. After evaluating the alternatives, the consumer ranks the brands and decides which one to buy. The purchase decision is based on the price, income and expected benefits of the product. As such, the consumers may buy the oatmeal as a result of its competitive price, its health benefits and its impact on the consumer’s pocket. The post purchase behavior of consumers refers to the attitude and perceptions the consumers have in regard to the product’s ability to satisfy the identified need. During this step, consumers weigh their expectations against the performance of the product. If the gap between these two factors is large, the consumers will be disappointed, but if the gap is small, the consumers will be satisfied and delighted with the product. Cultural influences on consumers Buying Behavior According to Sheth (2011), cultural factors have a significant impact on a consumer’s buying behaviors. Cultural factors largely influence the wants and behaviors of an individual in regard to value systems, perceptions, material comfort and practicality among others (Sheth, 2011). In order to sell the oatmeal profitably, due consideration should be given to the culture, subculture and social classes within a given market. Marketers should do research in order to ascertain the income levels of the selected market segment, the value system of the consumers and the impact family and friends have on an individual’s purchasing process. Understanding how the aforementioned cultural factors impact buying behaviors will enable marketers to come up with a price and product that meets the consumer’s cultural expectations. In addition, such an understand ing will enable marketers to promote the product in a manner that guarantees success. Failure to consider these factors may lead to dissatisfaction among the consumers, and losses to the manufacturers. Reference Sheth, J. (2011). Models of Buyers Behavior: Conceptual, Quantitative and Empirical. Illinois: Marketing Classics Press.Advertising We will write a custom essay sample on Assesing marketing opportunities specifically for you for only $16.05 $11/page Learn More This essay on Assesing marketing opportunities was written and submitted by user Alberto Sloan to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

SAT Subject Test Dates 2018-2019

SAT Subject Test Dates 2018-2019 SAT / ACT Prep Online Guides and Tips At PrepScholar, we pride ourselves on using the best data to keep you posted about upcoming test schedules and registration deadlines. It's essential to plan ahead and choose wisely when selecting Subject Tests and test dates. You can see the SAT test dates for previous years. Refer to this information to get a general idea of when College Board has its test dates for the SAT and how long after the test you can view your scores. In this article, I’ll give you the SAT Subject Test dates for 2018-2019 and explain what you should consider when choosing your test date and Subject Tests. Test Dates for the 2018-2019 School Year SAT Subject Tests are given on the same dates and in the same locations as the SAT, but there’s an additional test date in March for the SAT that isn’t offered for the SAT Subject Tests. Subject Test Dates The College Board lists these dates on its website, but they’re still subject to change. Not every test is offered on every date. For example, the language with listening tests are only offered in November. Subject Test Aug 25, 2018 Oct 6, 2018 Nov 3, 2018 Dec 1, 2018 May 4, 2019 Jun 1, 2019 Literature X X X X X X US History X X X X X X World History X X Mathematics Level 1 X X X X X X Mathematics Level 2 X X X X X X Biology E/M X X X X X X Chemistry X X X X X X Physics X X X X X X French X X X X X German X Spanish X X X X X Modern Hebrew X Italian X Latin X X French with Listening X German with Listening X Spanish with Listening X Chinese with Listening X Japanese with Listening X Korean with Listening X You can take chemistry on each testing date. Registration Dates The registration deadlines and score release dates are projected by PrepScholar. Test Date Normal Registration Late Registration Score Release Aug 25, 2018 Jul 27, 2018 Aug 10, 2018 Sept 13, 2018 Oct 6, 2018 Sep 7, 2018 Sep 21, 2018 Oct 25, 2018 Nov 3, 2018 Oct 5, 2018 Oct 19, 2018 Nov 22, 2018 Dec 1, 2018 Nov 2, 2018 Nov 16, 2018 Dec 20, 2018 May 4, 2019 Apr 5, 2019 Apr 19, 2019 May 23, 2019 Jun 1, 2019 May 3, 2019 May 17, 2019 Jun 20, 2019 How Accurate Are the Tables Above? The test dates are the anticipated dates provided by the College Board, and the registration and score release dates are our estimations. Even though all the dates are likely to be correct, because the test dates are provided by the College Board, those dates may be somewhat more reliable. The test dates won’t be confirmed until within a year of the test. If any of the dates change, they’ll probably be a week earlier or later than the anticipated date. You can use these dates to help determine when you'll take your SAT Subject Tests. If you know your available options, you can select the date that works best with your schedule. Also, you can factor in the specific tests you're taking and the time you need to prepare for them. The tables are pretty accurate. How to Choose Your Subject Tests? Here’s what you should consider when selecting your Subject Tests: What Do Your Colleges Require? Know the requirements of the schools you're considering applying to. Do they require Subject Tests? If so, how many and which ones? Are you applying to a school or program that requires you to take science and math? Do you have to take Math II? Are you applying to colleges that want to see your skill level in a variety of subjects? Furthermore, are you applying to test optional or flexible colleges that allow you to use Subject Tests in place of the SAT or ACT? Call the admissions office if you have any questions about a school's policies. What Are Your Best Subjects in School? Typically, you'll do the best on the tests related to your best subjects in school. If you thoroughly enjoy US History and you're excelling in your AP US History class, you'll probably do well on the US History Subject Test. Are You Fluent in Another Language? Many non-native English speakers take the Subject Test in their native tongue, even if they’re not taking a class in that language. Often, they're able to get a high score and show off their language prowess. However, make sure you review the content for the Subject Test even if you're fluent. I scored higher on my Spanish Subject Test than some of my friends who are native Spanish speakers because I was more comfortable with Spanish grammar rules and written Spanish even though they were much more adept at conversational Spanish. For more guidance and study resources, read our articles on SAT Subject Tests. How to Choose Your Test Dates Review this article on how to select SAT Subject Test dates. When picking your test date, remember that you can take one, two, or three Subject Tests on a single test date. Here are the most important factors to consider. When Your Skills Are at Their Best Generally, you want to take your Subject Test in a particular subject when you’re studying the highest level of that subject. If you're taking AP Chemistry in your junior year, you may want to take the Chemistry Subject Test in May or June of that year right after you've spent a full year studying chemistry and preparing for the AP test. When Are Your College Deadlines? For most schools, the December test of your senior year will be the last time you can take the Subject Tests, and if you're applying early, the October test may be the last possible date for you. Make sure you have enough time to retake the tests, if necessary, and know your deadlines. Check Your Personal Schedule Give yourself ample time to study, and try to avoid taking the test when you have possible conflicts. If your'e particularly preoccupied with school and extracurricular activities in a certain month, you may want to avoid taking your Subject Tests then. What's Next? Find out how to register for SAT Subject Tests and send your scores. Also, learn more about how SAT Subject Tests are scored. Finally, if you're deciding between taking Math I and Math II, check out this article. Need a little extra help prepping for your Subject Tests? We have the industry's leading SAT Subject Test prep programs (for all non-language Subject Tests). Built by Harvard grads and SAT Subject Test full or 99th %ile scorers, the program learns your strengths and weaknesses through advanced statistics, then customizes your prep program to you so that you get the most effective prep possible. Learn more about our Subject Test products below:

The logic of alliance Value Creation model on case study Renault and Assignment

The logic of alliance Value Creation model on case study Renault and Nissan - Assignment Example In this manner the alliance has proved to be a success for both Nissan and Renault. However the two companies are still facing challenges in creating an organizational culture that can maximize cooperation between the human resources from the two companies. In order to create the maximum value from this alliance, Nissan and Renault need to share their core competencies to synergistic effects. This will enable both companies to improve their specifications and standards in a continuous process so that the competitive advantages of both companies are made sustainable. Strengths and weaknesses Nissan’s strength is the worldwide market share while Renault’s strength is in financial management (Glover, 2006). By forming this alliance, both companies will be able to address these structural problems. In order to maintain its financial strength, the French car maker Renault has to access new markets and this objective is met by forming the alliance with the Japanese car maker Nissan. Both companies will be able to implement the practice of benchmarking which is defined as comparing an organization’s performance against the best practices in the industry. This alliance will enable Nissan to compare its financing strategies against those of Renault and thus identify the areas of improvement. Renault will be able to compare its product development practices with those implemented by Nissan. As a result both companies can improve their efficiencies in these operational processes and thus strengthen their competitive advantages. ... The main weakness is the different focus in each organization design. Nissan places strategic focus upon supply chain management while Renault’s strategic focus is upon product development. Therefore there are structural dissimilarities which must be addressed if the alliance is to enable Nissan and Renault to capitalize upon each other’s assets. The challenge in front of the management is to create a decision making process which will enable the human resources from both companies to coordinate their efforts so that there is no duplication. This can address the company-specific weaknesses. Nissan’s financial weakness can be addressed by importing the financial management practices from Renault. Similarly Renault can access additional geographic markets in order to maximize its market reach. However in order to meet the demand from additional markets, Renault has to focus upon supply chain management which is Nissan’s strength. Nissan has embarked upon a c ost-cutting initiative to create greater demand for its products. If Nissan can reduce its cost of operations, then it will be able to price its automobiles more competitively. Because of its financial management practices, Renault has been successful in maintaining demand for its products in the market that the automaker currently operates in. However demand in these markets is shrinking. Therefore Renault needs to access additional markets in those regions which have growing demand. By forming the alliance with Nissan, Renault has been able to meet this objective. By forming this alliance, Renault will be able to access those markets that Nissan operates in. As a result, Renault will be able to sell more cars and enhance scale economies. Because of the high costs of new

Corporate governance Essay Example | Topics and Well Written Essays - 1250 words

Corporate governance - Essay Example The role of independent directors and non executive directors become significant as they are intended to serve as deterrent in the misuse and abuse of power by the vested interests, especially the senior management of the company. The paper would be broadly rationalizing the role of independent non executive directors within the broader parameter of corporate governance. Corporate governance is based on publicly acceptable values and code of behaviour for the higher echelons of corporate bodies (Haller & Shore, 2005). It can primarily be described as a set of well defined policies, rules and regulations and customs that effectively control the various internal and external processes of the business enterprises. They are, thus intended to create an environment that improves productivity, economic efficiency and protects the interests of various stakeholders through ethically delivered goals (Solomon, 2007; Mueller, 1996). Since the good corporate governance is dependent on effective p olicies and laws, the role of CEO and board of directors becomes crucial ingredient for their efficient implementation. In the various modalities and process that are incorporated within good corporate governance, the role of independent non executive directors in the company’s board has increasingly become key component of the success of the company. The recent cases of abuse of shareholders’ rights in the various countries have brought the role of corporate governance into the prominence. The increased risks to the interests of the various stakeholders have necessitated stringent code of conduct for the higher hierarchy of management. Chief Executive of the firm and board of directors, therefore become intrinsic part of corporate governance. They are endowed with the primarily responsibility for good codes of corporate governance and best practices within the organization that promote accountability. Boritz, (1990) has defined risks as possible loss due to uncertaint y and exposure of the firm from inappropriate investment decision or a commitment. Thus, risks and need for more effective transparency within the system become vital postulates of CG whose implementation is overseen and guided under the strict vigilance of independent non executive directors. Independent non executive directors in the board provide the firm with independent, objective and creative inputs on the various processes and modalities of business operations. As they are basically from outside the organization, they are observed to be equipped with unbiased approach to the issues and factors that could have long lasting impact on the performance outcome of the company. Cadbury report (1992, p33) explicitly states that they bring in ‘independent judgment’ within the board. Their presence on board therefore is designed to discourage the vested interests against financial malpractices and fraud. This is one of the most important criteria that reiterated the import ance of inclusion of independent non executive directors on the boards of the companies. UK has been a leader in setting up a Combined Code of Corporate Governance. UK boasts of a highly developed business environment with a vast shareholders’ base. The various financial institutions, big corporate houses, institutional investors and individuals with

UNIT 4 INDIVIDUAL PROJECT Essay Example | Topics and Well Written Essays - 1750 words

UNIT 4 INDIVIDUAL PROJECT - Essay Example The company needs to target an unserved but profitable segment of the market to increase sales and boost image minus the fierce competition. Distribution channels. The company depends largely on department stores to sell its products. Reebok should explore other channels that would effectively promote the increased visibility of its products in the market. Intellectual property rights. The company produces its products through independent manufacturers in third world countries. Despite the enforcement of patent laws, knockoffs proliferate in many international markets which have an adverse affect on Reebok’s revenues. Our passion for winning creates our possibilities. We harness the boundless creative energy of every individual to make the differences that count - to captivate the consumer and create an exceptional global brand and organization. a. [Pros] Reduced production costs and lead time, increased gross margins in the long run and creates new sources of raw materials for footware product lines as well as develop more efficient distribution channels. a. [Pros] Reebok needs to stick to more conservative demand forecasts to effectively control marketing, advertising and other related expenses; minimize production problems, cut costs and generate adequate cash flow for debt servicing. 1. Recommending the implementation of the Market Development Strategy [Alternative 1] to increase brand value and gain a bigger market share, if not a controlling interest in the athletic shoes and sports apparel market. 5. Product lines intended for outdoor activities should also be developed apart from contact sports, with 40% of the subject segment looking for new outdoor activities, among them backpacking/hiking (47%), road biking (38%), camping (30%) and paddle sports (23%). (NPD Group, as cited in Rab, 2004) 1. Revamp of existing marketing platforms and repositioning to new segment must be

Constructing Luxury for Consumers

Constructing Luxury for Consumers WHAT IS LUXURY? The word ‘luxury derives from the Latin word ‘luxus , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence and ‘sumptuousness, luxuriousness, opulence (Christodoulides, Michaelidou, Li, 2008). THE TRADITIONAL, ECONOMIC VIEW There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a persons self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship (Fionda Moore, 2008). In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘†¦ exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function (Jackson, 2004). Dimitri Mortelmans, in his paper ‘The concept of luxury, says there are three main characteristics in [a narrow] definition of luxury: extra value, high quality and exclusivity. The fourth, derived, characteristic is high price. * Extra value Extra value here is loosely defined to include design, aesthetic value any innovation or attribute that makes the product unique. * High quality Superior quality is an essential component of luxury products. Luxury products have been typically been associated with fine craftsmanship, precision and skill. * Exclusivity Exclusivity in luxury products comes from two factors: (a) the goods are made in limited quantity and distribution is strictly controlled. Haute couture began when royal tailors custom made garments that were made only for one user. Till date, products belonging to the highest category of luxury are made in scant quantities. It is also crucial to decide where all these products will be available in order to make them rare. (b) Luxury goods are typically priced so high that they automatically exclude a majority of the population from their target group. In the world of luxury, rarity value sells, because it is the rarity that the customer wants to own. Owning such a product makes the consumer feel privileged to be part of a select group of people. High price When a product or service is superior in quality has extra value and also has to be exclusive, then the price automatically becomes high. (Mortelmans, 2005) Traditionally, there were four principal categories of luxury goods: fashion (couture, ready-to-wear, and accessories), perfumes and cosmetics, wines and spirits and watches and jewellery. Today, luxury has expanded to include many more categories such as luxury automobiles, hospitality (hotels, tourism, airlines) private banking and home furnishings among others. Among these, the luxury fashion goods category accounts for the largest proportion of luxury goods sales (with a 42 per cent share in 2003) and also showed the strongest product category growth in 2007 (Fionda Moore, 2008). NEED FOR LUXURY MOTIVES FOR CONSUMPTION In their paper ‘The specificity of luxury management: Turning marketing upside down Kapferer and Bastien express that for the outward oriented motivations, â€Å"Luxury converts the raw material that is money into a culturally sophisticated product that is social stratification†. Where the inward directed motivations are concerned, â€Å"luxury should have a very strong personal and hedonistic component; otherwise it is no longer luxury but simple snobbery†. (Kapferer Bastien, 2008) According to Wiedmann, Hennigs and Siebels, â€Å"luxury is a subjective and multidimensional construct†. When studying consumer motivations for consumption of luxury, both outward (conspicuousness, snobbery, status) and inward (hedonism, perfectionist) directed motivations need to be taken into account. Additionally, these must be placed the situational and cultural context of consumption. (Wiedmann, Hennigs, Siebels, 2007) Wiedmann, Hennigs and Siebels have proposed four dimensions that add value to luxury purchases in the consumers mind: Financial Dimension of Luxury Value Perception The financial dimension captures the monetary value that consumers are willing to put on the purchase. This will take into account aspects like price, return on investment, resale value and discount. Functional Dimension of Luxury Value Perception This is the core benefit or utility derived from the luxury product or service purchased. This will take into account the attributes of the product such as its quality, durability, reliability, usability etc. Individual Dimension of Luxury Value Perception The individual dimension addresses the inward oriented motivations or the personal value derived from luxury. This includes benefits like self identity, materialism and hedonism. Social Dimension of Luxury Value Perception This dimension has been the most researched and appears to be the largest contributor to the value derived from luxury. The social dimensions of luxury value include recognition or being identified as a part of a particular social group, conspicuousness and prestige value within a social group and a sense of power in a social context. (Wiedmann, Hennigs, Siebels, 2007) In â€Å"A Review and a Conceptual Framework of Prestige-Seeking Consumer Behavior†, Vigneron and Johnson have suggested that the primary driver for the purchase of luxury is prestige-seeking behaviour. The prestige benefits derived out of luxury purchases are of two types: inter-personal (outward oriented) and personal (inward oriented). (Vigneron Johnson, 1999) Interpersonal effects:  · The Veblen effect perceived conscious value Veblenian consumers attach greater importance to price as an indicator of prestige. This comes from the fact that these consumers often use price as evidence to judge quality. They also tend to perceive higher quality products as granting higher prestige.  · The Snob effect perceived unique value ‘Snobs have a need to be unique and seek prestige through differentiation. The snob effect manifests itself in two forms: (a) when a new product/collection is launched, these consumers will want to be the first to buy (innovators) (b) they will choose not to use a product once the general masses have adopted it. Snobs see higher price as an indicator of uniqueness and exclusivity.  · The Bandwagon effect perceived social value This is the reverse of the snob effect. These consumers, the followers, seek prestige through group affiliation. In the words of Vigneron and Johnson, â€Å"bandwagon consumers attach less importance to price as an indicator of prestige, but will put a greater emphasis on the effect they make on others while consuming prestige brands† Personal effects:  · The hedonic effect perceived emotional value Luxury purchases have emotional value attached to them beyond their functional utility. These emotions could be aesthetic appeal, sensory pleasure, excitement etc. The consumer here is more concerned about her own feelings than those of others around her. The luxury product could be fantasy or self rewarding behaviour.  · The perfectionist effect perceived quality value These consumers seek superior quality as an indicator of prestige. They rely on their own judgements about the quality of products and services. They may see higher price as an evidence of better quality. (Vigneron Johnson, 1999) (Husic Cicic, 2009) THE ESSENCE OF LUXURY In her book ‘Let them eat Cake: Marketing to the masses as well as the classes, Pamela N. Danzinger (Danziger, 2005) explains that consumers link luxury to fantasy fulfilment. They fantasize about how their life will change once they own a luxury product; â€Å"Luxury takes on a transcendent quality linked to the persons hopes, wishes and dreams†, she says. Once we have achieved this fantasy, bought that luxury product, after some time it becomes ordinary and then we wish for something else, something even more luxurious and unattainable which then becomes the new object of fantasy. As Danzinger puts it, â€Å"that which is unattainable is overwhelmingly attractive and desirable†; once we have attained something, it loses its mystique and charm and becomes ordinary. Thus, to consumers, luxury is ultimately the unattainable. OLD vs. NEW LUXURY (MASSTIGE) There was a time when â€Å"luxury† as a category was restricted in the hands of the affluent and was meant only for the crà ¨me de la crà ¨me of society. Today, however, the scenario has changed more and more people can now afford a small piece of the pie with the democratisation of luxury. According to a study done by IBM Business Consulting Services (2004), todays consumers are demanding lower prices on basic goods but at the same time, they are willing to pay premiums for products that matter more to them. (Florin, Callen, Mullen, Kropp, 2007) Traditional luxury, now commonly known as ‘old luxury, was all about conspicuous consumption and its appeal was derived from the status and prestige that came with the ownership of these products. The attributes and quality of the offering itself were of supreme importance as it was a cultural symbol of high taste. In the years after the Second World War, material wealth was highly sought after. The generation that witnessed World War II and subsequently the great depression had seen immense scarcity; this generation basked in the joy of material things and sought luxury as a symbol of wealth. (Danziger, 2005) While old luxury was about the thing itself, new luxury is about the experience. The economy, worldwide, improved continuously in the 80s and 90s leading to increasing disposable incomes, lower unemployment rates and a growing wealthy class in emerging countries. Simultaneously, the democratisation of luxury meant that luxury has now become more accessible to a larger population. Goods that fall under the ‘new luxury category are less expensive than traditional luxury goods yet, they have some confines in terms of their price as exclusivity. They are affordable, yet they enjoy a reasonable level of perceived prestige as compared to middle-range products. The prices of ‘new luxury items are kept only slightly above those of middle ranges. This helps in targeting a much larger segment than the traditional luxury niches. The consumers for this new luxury come from middle and upper middle classes for whom luxury purchase is a form of self reward and indulgence. Their focus is a desire for living the good life and private pleasure. As Twitchell says in his book ‘Living It Up: Our Love Affair With Luxury â€Å"These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not stay put. They now have money to burn. The competition for their attention is intense, and their consumption patterns if you havent noticed are changing life for the rest of us.† (Truong, McColl, Kitchen, 2009) The term masstige was introduced by Michael Silverstein and Neil Fiske to refer to a new category which aims at providing luxury to the masses. The term is derived from the words mass + prestige goods and services that occupy the space between mass and class (Silverstein Fiske, 2003). These products are priced at a premium over the convention but are not always positioned at the top of their category in price. A recent survey by the Boston Consulting Group (2004) said that the top four categories for ‘trading up are homes, cars, appliances and dining out (Florin, Callen, Mullen, Kropp, 2007). Examples of new luxury goods are the urban BMW 1-series starting at $ 19 000, Ralph Lauren Polo shirts sold in outlets for $ 9 and Swarovski crystals with prices as low as $ 20. (Truong, McColl, Kitchen, 2009) MASSTIGE TO MASS? Critics argue that brands which enjoy the tag of ‘masstige today, could become the ‘mass brand tomorrow. By definition, it is contradictory to sell prestige and exclusivity in mass (because when something is owned in mass, it would no longer be prestigious). These products may be successful at first, but their enchantment for the consumer would be inversely proportional to their success. The critical success factor, then, for masstige brands would lie in maintaining the equilibrium between prestige differentiation and a reasonable price premium. â€Å"In order for a masstige product to be successful in the long term, it must have a noticeable differentiation in design and/or technology compared to the regular products in the category. This differentiation must be real and marked. Promises of â€Å"improvements† are not enough if they dont really exist or are imperceptible to the consumer† (Smith, 2007). LONG LIVE LUXURY! With the advent of masstige, top end luxury houses like Armani and LVMH are entering into the affordable luxury arena. Critics argue that as luxury becomes more and more affordable, the concept itself will die out. Here is where understanding the sign-value of luxury is important the concept is not absolute but relative. Over the centuries, what constitutes luxury has changed, but the concept has endured. Brands that are at the top may not remain there, even objects that are considered to be part of luxury may change, but because of human social needs, the concept of luxury will persist. (Mortelmans, 2005) LUXURY vs. MASSTIGE Motivations for consumption When defining masstige, price is not the only criteria to differentiate between the realm of luxury and that of accessible luxury. An extremely important difference lies in the motivations for consumption. While the reasons for consumption of luxury can be both internally as well as externally driven, consumption of masstige is in most cases externally driven. Conspicuous consumption, which formed the basis of luxury when the concept originated, now forms the basis for the masstige category. Hence, a Valentino gown does not have a logo printed on it but a Tommy Hilfiger product will always have a label, logo and some visible identification mark on it so that others can see it. Global versus local Luxury is global, it remains the same across the world luxury brands target the elite who expect the same experience from their brands whether they are in the United States, Europe or in Asia. Although various brands have specific associations with the heritage of their countries of origin, a luxury brand is not modified to suit a particular geography. It is meant for people who are global, and hence the brand perception and delivery has to be ‘global in approach and consistent in delivery everywhere. Masstige on the other hand needs to be localised to an extent because the consumption of masstige is directed outwards. It has to adapt to the cultural ethos of the geography in order to remain relevant and in the process also gets absorbed into the culture of any society. LUXURY IN THE INDIAN CONTEXT TRACING THE ROOTS Luxury in India has its roots going back to the era of the Maharajas who, for centuries, splashed their enormous wealth and lived opulently. The Mughal dynastys wealth and power was a legend but as it waned, the old Indian maharajas began to re-emerge, and new ones began to rise. With the arrival of the British Raj, western influences began to show in the collections at the royal courts. Then began the romance with brands like LVMH, Cartier, Gerrard and Asprey. â€Å"Indian courts commissioned all sorts of fine art like jewellery, woodwork, painting, enamelling, inlaid weaponry and intricate floor coverings† (Gopinath, 2009). Jewellers like Cartier and Van Cleef Arpels, Louis Vuittons bags and luggage and watches by Jaeger-Le Coultre, which were the icons of luxury in Europe, were frequently commissioned by kings. At the same time, western styles of dressing were being adopted. (Forster) The Maharajas, who were patrons of music, arts, poetry and craftsmen, began to patronise European and Indian artists and designers as well. The Victoria and Albert Museum, London, has opened an exhibition ‘Maharaja: The Splendour of Indias Royal Courts in November, which will be on display till January 2010. The exhibition explores the lives of the Indian royals beginning from the 18th century till the end of the British rule. The exhibition showcases 250 items a number of which have been loaned from the private collections of the erstwhile royal families of India. Some of the objects on display are the Maharaja of Indores Modernist furniture, a Louis Vuitton travelling case, French designed sarees, a Rolls Royce Phantom and the studding diamond necklace of Maharaja Yadarendra Singh of Patiala. The necklace which was completed in 1928, originally contained 2930 diamonds, weighed almost 1000 carats and was part of the largest single commission that Paris jeweller Cartier has ever executed. Though Western brands are now flocking to India after its new found affluents, India has clearly been consuming western luxury since way before. LUXURIFICATION OF THE INDIAN SOCIETY The Indian luxury landscape is rapidly transforming owing to a combination of economic and social factors: Rising Affluence Merrill Lynch and Capgemini report that the number of high-net-worth individuals in India (at least US$1 million in financial assets) increased by 20.5% in 2006. According to the McKinsey Global Institute, consumers earning more than 1,000,000 rupees a year will total 24 million by 2025 larger than Chinas comparable segment. Their share of private consumption is projected to increase from 7% to 20% in 2025. However, it is the emergence and steady rise of ‘mass affluence of the Indian middle class coupled with aspirational mindsets and lifestyles that is driving consumer demand. The scope for luxury today is larger than it has ever been in India before owing to the strength of the population that can now afford luxury goods. According to sereval reports by McKinsey Global Institue, the Indian middle class (household disposable incomes from Rs. 200,000 to 1 million a year) will increase from approximately 5% to 41% of the population and will become the worlds fifth largest consumer market by 2025. (Foreign Policy) Exposure to Media Media explosion in the form of television, radio, internet and print has led to increased product knowledge and awareness of brands. Fashion and lifestyle media have established a strong following as mainstream media are taking greater interest in consumer lifestyles, fashion trends and luxury brands. A milestone here was the launch of the Indian edition of Vogue magazine in 2007. Along with the platforms available for advertising, the spending on advertising is also rising. According to ZenithOptimedia, advertising expenditures in India increased from US$1.1 billion in 1996 to US$4.7 billion in 2006 and forecasts suggest that this number will exceed $7 billion in 2009. Accessibility of luxury brands A couple of decades ago, in order to purchase luxury brands such as Gucci, Cartier and Chanel, Indian consumers had to travel to Europe or the U.S. Today, the biggest names of the world like LVMH, Armani and Tommy Hilfiger are present in not only Delhi and Mumbai, but are also setting shop in the upcoming metros like Pune and Hyderabad. Inadequate retail space has also been a challenge to luxury brands operating in India which have been, until recently, hidden in lobbies of five star hotels. The retail boom is changing this scenario. Organised retailing, which currently comprises 6% of the market, is expected to rise to 15% in the next two years. Retail space has increased from 22 mn sq ft in 2002 to 101 mn sq ft (almost 5 times) in 2007 and is predicted to increase by a further 200% to 300 mn sq ft by 2012. (Jindal, 2008) With the retail revolution, newer formats like luxury shopping malls are evolving. An example of these new avenues for luxury brands is the Delhi luxury-goods mall, Emporio which opened in March 2008 which houses over 70 international high-end brands. In 2006, again, AT Kearney has ranked India at the top of its Retail Development Index as the worlds most attractive market for mass international retail expansion. Brands like Marks Spencer, McDonalds and Tommy Hilfiger have entered the market with franchisees due to market regulations which are in the process of loosening up further. (Euromonitor International, 2007) Market Regulation The further liberalisation of the Indian economy has made the market attractive to international players despite heavy import duties on luxury goods and foreign investors are looking to make long-term investments in the country. (Atwal Khan, 2008) THE CHANGING FACE OF THE INDIAN LUXURY CONSUMER In an interview the Pitch magazine, Radha Chadha, author of the book ‘The Cult of the Luxury Brand said that India currently is at an early stage of the luxury brand culture. â€Å"Typically, it starts when a country goes through a rapid economic growth and that has been happening in our country for the past few years. It puts money into peoples hands, at some point they want to demonstrate that. The third stage is what I call the show-off stage, where China is today and some of India is moving towards. Then comes the fit-in stage where we see a large scale adoption of luxe fuelled by the need to conform. The last stage is way of life where people are habituated to luxe products; they become confident and discerning buyers, like in emerged markets†. (Chadha, 2008) The luxury market in India has traditionally been segmented according to two distinct customer groups the affluents and the non-affluents. With the pace of economic development, rise of the middle class and the transition towards a consumer society, the profile of the luxury consumer has also evolved. Clustering luxury consumers into segments based simply on socio-economic classifications is erroneous. Todays luxury consumer is much more diverse and hence the old segmentation and classifications need to be reassessed. The regular classifications of customers based on income or SEC are not sufficient today to gauge clearly who are the consumers who are actually consuming luxury (Pant, 2009). India has always had a small elite segment that has been shopping abroad and buying western brands for ages. This elite class consists of the descendants of the royal families, nawabs and small rulers and long standing industrial families like the Birlas, Tatas, Godrej, Bajaj, Mahindras, some tracing their roots back to pre independence days. (Chadha Husband, 2007). This was the select, privileged segment that was exposed to and could consume luxury. In todays scenario, a typical BPO operator in Mumbai or Delhi is spending a substantial proportion of their monthly salary on international brands of clothes, accessories and cosmetics. â€Å"These are consumers are not affluent in the traditional sense of originating from wealthy family backgrounds, but are ambitious and successful in their chosen professions. Personal performance based on merit has got them to where they are today. Todays luxury shopper could be a broker, an entrepreneur, IT specialist or a student† (Atwal Khan, 2008). They purchase luxury not simply to show off, but as a self-reward. As Atwal and Khan say in their paper ‘Luxury marketing in India: because Im worth it, this generation consumes brands, goes shopping and purchases luxury as they firmly believe in the sentiment â€Å"because Im worth it†. The Indian Affluents In her article in the Brand Reporters special issue on luxury marketing, Vatsala Pant says that it is to try and understand these diverse consumers that one such measure, the Nielsen UMAR (Upper and Middle Rich) survey has redefined affluence using lifestyle and ownership of consumer durables factors (Pant, 2009). On the basis of these factors, Nielsen has estimated that there are 2.6 million affluent households across 35 cities (metros and upcoming metros) of India. Affluent Households in India (Source: Nielsen UMAR survey) — LANGUAGE Luxury is no longer reserved for the English-speaking elite. The survey reveals that 51% of these affluents have been educated in languages other than English and dont speak English as a primary language at home. The primary language spoken, then, becomes the preferred language for media consumption. — FAMILY STRUCTURE Ninety percent of these households live in nuclear families or nuclear families with elders living with them. The average size of the family is 4 members with the chief wage earner typically over 35 years of age. — DURABLES While all the households have the basic durables like TV, refrigerator, washing machines and mobile phones, the Rich segment is seen to have more expensive double-door refrigerators, front loading washing machines and microwaves as well. 20% of the affluent households have two or more TV sets. — MEDIA CONSUMPTION While the most popular medium is TV (watched in 98% of the HH), the next most popular is print where 70% HH read English dailies. However, only 10% read English business dailies. Popularity of watching cinema outside the home is more (67%) than radio listenership (54% of HH). 55% of the HH browse the internet while only 38% read magazines. (Pant, 2009) Changing Trends of the Affluent Indian Consumer Indian consumers are value conscious and highly value driven. Not just products, but the delivery and experience are becoming increasingly important. With the advent of international luxury brands with a bang into the country, consumers want world-class brands, and expect world-class quality, service and experience. They expect the latest designs and most modern technologies available. As the purchasing power has gone up, so have aspirations. The concept of wealth to be enjoyed rather than just display and badge value has emerged. Indulgence and self-rewarding behaviour are on the rise rather than simply the need to show-off. (Raman, 2007) NEW LUXURY FOR INDIA In their paper ‘Luxury marketing in India: because Im worth it Glyn Atwal and Shaziya Khan say that â€Å"the establishment of different levels of luxury ranging from ultra luxury to affordable luxury is a reflection of luxurys increasing mass appeal in India†. The concept of masstige or new luxury is extremely relevant in the Indian context for two reasons firstly, the market for masstige is huge is India owing to rising disposable incomes and a burgeoning middle class. Secondly, Indians are extremely value conscious and new luxury would, for many, be the first opportunity to experience luxury. This, then, could be the first step for a large population to move on to luxury. Rising incomes and the recent retail boom in the country coupled with increasing awareness has sparked off consumption of new luxury brands in India. At the same time, the arrival of international brands and players on the scene has provided accessibility to global resources and efficient supply chains. â€Å"The Indian society is moving towards NUF (Nuclear Urban Family) where each individual has their own tastes and preferences† (Marketing Funda: Masstige, 2007). The consumer is becoming more demanding in terms of value, quality and service. A Euromonitor report on India states that for the burgeoning middle class, the spending area is shopping for brand names. Consumerism is a significant aspect of the new, younger middle class which gives a lot of importance to lifestyle and branded goods. (Euromonitor International, 2007) A look into the Indian consumers luxury needs In their qualitative research of the Indian consumers, Glyn Atwal and Shaziya Khan discovered that the Indian consumer associates luxury with perceptions of not just quality and performance but with comfort, beauty, pleasure and style. The product is no longer the sole criteria for choice, the service and experience of shopping are crucial to the decision making process. When societies experience fast economic growth, the phenomenon of luxury usually gains popularity because the acquisition of luxury is a symbol of prestige and signifies how fast you have climbed up the ladder of social mobility. A similar phenomenon is being seen in India but the motivations to acquire luxury brands go beyond displaying social status. Consumers are moving on from an outward expression of luxury to an inward directed emotional experience. Luxury brands are helping people â€Å"define identities and express values†. (Atwal Khan, 2008) CHAPTER 2: INDIAN ADVERTISING- AESTHETICS CONTENT ADVERTISING INDIAN CULTURE William Mazzarellas ethnographic study of ‘globalizing consumerism in the context of Indian advertising talks about how advertising is produced in metropolitan India and transformations in the Indian public culture along with the rise of mass consumerism. As Mazzarella puts it: â€Å"As an aesthetic interface of post colonial capitalism, the everyday practice of advertising constantly calls into question the conceptual alignments that ground business discourse: local and global, culture and capital, particular and universal, content and form† (Mazzarella, 2003) Goods possess meaning of two kinds: 1. given and propagated by manufacturers and 2.that have been created by the users themselves because of the way they use them, symbolic meaning etc. Material culture is not simply about objects but about the â€Å"intimate connection between the object and its users†. The value of any material is co-constructed by the manufacturer/seller, the user and the society/social norms/perceptions/evaluations. While necessity is culturally associated with lower incomes and to an extent poverty, luxury stands at the other extreme being associated with wealth as well as taste. Comfort comes somewhere in between. Again, what we define as necessities or luxury comes from our cultural framework. In India, the cultural framework is defined largely by the middle class for whom, say, not just food, shelter and clothing but hygiene too may be necessity. (Nayar, 2009) The Indian culture has deeply embedded in it values of saving and economic prudence. This is why trade promotion deals like 25% extra on packs, free gifts etc. work so well in the market. This economic prudence is not just monetary, it also has a strong influence of moral economy i.e. economy that is good for the family as a whole. A married woman feels she has been a good mother and wife if she has saved money on her daily grocery shopping. The other fundamental values are those of safety and privacy of the family and to be aesthically and culturally presentable. (Nayar, 2009) With the rise of globalization and proliferation of MNCs into the country post 1991, ironically, a new movement began that of the New Swadeshi. In the increasingly ‘global scenario, Indians were searching for what is their own. The term swadeshi re-entered the vocabulary of India during 1996-97. Over the last decade, the swadeshi and the global have merged, adapted and evolved from the transnational media of the 1990s which were supposed to have an â€Å"Indian soul and international feel†. The formula here was to show stereotypical exotic imagery of the Indian â€Å"tradition† and place it in an international context. < Constructing Luxury for Consumers Constructing Luxury for Consumers WHAT IS LUXURY? The word ‘luxury derives from the Latin word ‘luxus , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence and ‘sumptuousness, luxuriousness, opulence (Christodoulides, Michaelidou, Li, 2008). THE TRADITIONAL, ECONOMIC VIEW There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a persons self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship (Fionda Moore, 2008). In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘†¦ exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function (Jackson, 2004). Dimitri Mortelmans, in his paper ‘The concept of luxury, says there are three main characteristics in [a narrow] definition of luxury: extra value, high quality and exclusivity. The fourth, derived, characteristic is high price. * Extra value Extra value here is loosely defined to include design, aesthetic value any innovation or attribute that makes the product unique. * High quality Superior quality is an essential component of luxury products. Luxury products have been typically been associated with fine craftsmanship, precision and skill. * Exclusivity Exclusivity in luxury products comes from two factors: (a) the goods are made in limited quantity and distribution is strictly controlled. Haute couture began when royal tailors custom made garments that were made only for one user. Till date, products belonging to the highest category of luxury are made in scant quantities. It is also crucial to decide where all these products will be available in order to make them rare. (b) Luxury goods are typically priced so high that they automatically exclude a majority of the population from their target group. In the world of luxury, rarity value sells, because it is the rarity that the customer wants to own. Owning such a product makes the consumer feel privileged to be part of a select group of people. High price When a product or service is superior in quality has extra value and also has to be exclusive, then the price automatically becomes high. (Mortelmans, 2005) Traditionally, there were four principal categories of luxury goods: fashion (couture, ready-to-wear, and accessories), perfumes and cosmetics, wines and spirits and watches and jewellery. Today, luxury has expanded to include many more categories such as luxury automobiles, hospitality (hotels, tourism, airlines) private banking and home furnishings among others. Among these, the luxury fashion goods category accounts for the largest proportion of luxury goods sales (with a 42 per cent share in 2003) and also showed the strongest product category growth in 2007 (Fionda Moore, 2008). NEED FOR LUXURY MOTIVES FOR CONSUMPTION In their paper ‘The specificity of luxury management: Turning marketing upside down Kapferer and Bastien express that for the outward oriented motivations, â€Å"Luxury converts the raw material that is money into a culturally sophisticated product that is social stratification†. Where the inward directed motivations are concerned, â€Å"luxury should have a very strong personal and hedonistic component; otherwise it is no longer luxury but simple snobbery†. (Kapferer Bastien, 2008) According to Wiedmann, Hennigs and Siebels, â€Å"luxury is a subjective and multidimensional construct†. When studying consumer motivations for consumption of luxury, both outward (conspicuousness, snobbery, status) and inward (hedonism, perfectionist) directed motivations need to be taken into account. Additionally, these must be placed the situational and cultural context of consumption. (Wiedmann, Hennigs, Siebels, 2007) Wiedmann, Hennigs and Siebels have proposed four dimensions that add value to luxury purchases in the consumers mind: Financial Dimension of Luxury Value Perception The financial dimension captures the monetary value that consumers are willing to put on the purchase. This will take into account aspects like price, return on investment, resale value and discount. Functional Dimension of Luxury Value Perception This is the core benefit or utility derived from the luxury product or service purchased. This will take into account the attributes of the product such as its quality, durability, reliability, usability etc. Individual Dimension of Luxury Value Perception The individual dimension addresses the inward oriented motivations or the personal value derived from luxury. This includes benefits like self identity, materialism and hedonism. Social Dimension of Luxury Value Perception This dimension has been the most researched and appears to be the largest contributor to the value derived from luxury. The social dimensions of luxury value include recognition or being identified as a part of a particular social group, conspicuousness and prestige value within a social group and a sense of power in a social context. (Wiedmann, Hennigs, Siebels, 2007) In â€Å"A Review and a Conceptual Framework of Prestige-Seeking Consumer Behavior†, Vigneron and Johnson have suggested that the primary driver for the purchase of luxury is prestige-seeking behaviour. The prestige benefits derived out of luxury purchases are of two types: inter-personal (outward oriented) and personal (inward oriented). (Vigneron Johnson, 1999) Interpersonal effects:  · The Veblen effect perceived conscious value Veblenian consumers attach greater importance to price as an indicator of prestige. This comes from the fact that these consumers often use price as evidence to judge quality. They also tend to perceive higher quality products as granting higher prestige.  · The Snob effect perceived unique value ‘Snobs have a need to be unique and seek prestige through differentiation. The snob effect manifests itself in two forms: (a) when a new product/collection is launched, these consumers will want to be the first to buy (innovators) (b) they will choose not to use a product once the general masses have adopted it. Snobs see higher price as an indicator of uniqueness and exclusivity.  · The Bandwagon effect perceived social value This is the reverse of the snob effect. These consumers, the followers, seek prestige through group affiliation. In the words of Vigneron and Johnson, â€Å"bandwagon consumers attach less importance to price as an indicator of prestige, but will put a greater emphasis on the effect they make on others while consuming prestige brands† Personal effects:  · The hedonic effect perceived emotional value Luxury purchases have emotional value attached to them beyond their functional utility. These emotions could be aesthetic appeal, sensory pleasure, excitement etc. The consumer here is more concerned about her own feelings than those of others around her. The luxury product could be fantasy or self rewarding behaviour.  · The perfectionist effect perceived quality value These consumers seek superior quality as an indicator of prestige. They rely on their own judgements about the quality of products and services. They may see higher price as an evidence of better quality. (Vigneron Johnson, 1999) (Husic Cicic, 2009) THE ESSENCE OF LUXURY In her book ‘Let them eat Cake: Marketing to the masses as well as the classes, Pamela N. Danzinger (Danziger, 2005) explains that consumers link luxury to fantasy fulfilment. They fantasize about how their life will change once they own a luxury product; â€Å"Luxury takes on a transcendent quality linked to the persons hopes, wishes and dreams†, she says. Once we have achieved this fantasy, bought that luxury product, after some time it becomes ordinary and then we wish for something else, something even more luxurious and unattainable which then becomes the new object of fantasy. As Danzinger puts it, â€Å"that which is unattainable is overwhelmingly attractive and desirable†; once we have attained something, it loses its mystique and charm and becomes ordinary. Thus, to consumers, luxury is ultimately the unattainable. OLD vs. NEW LUXURY (MASSTIGE) There was a time when â€Å"luxury† as a category was restricted in the hands of the affluent and was meant only for the crà ¨me de la crà ¨me of society. Today, however, the scenario has changed more and more people can now afford a small piece of the pie with the democratisation of luxury. According to a study done by IBM Business Consulting Services (2004), todays consumers are demanding lower prices on basic goods but at the same time, they are willing to pay premiums for products that matter more to them. (Florin, Callen, Mullen, Kropp, 2007) Traditional luxury, now commonly known as ‘old luxury, was all about conspicuous consumption and its appeal was derived from the status and prestige that came with the ownership of these products. The attributes and quality of the offering itself were of supreme importance as it was a cultural symbol of high taste. In the years after the Second World War, material wealth was highly sought after. The generation that witnessed World War II and subsequently the great depression had seen immense scarcity; this generation basked in the joy of material things and sought luxury as a symbol of wealth. (Danziger, 2005) While old luxury was about the thing itself, new luxury is about the experience. The economy, worldwide, improved continuously in the 80s and 90s leading to increasing disposable incomes, lower unemployment rates and a growing wealthy class in emerging countries. Simultaneously, the democratisation of luxury meant that luxury has now become more accessible to a larger population. Goods that fall under the ‘new luxury category are less expensive than traditional luxury goods yet, they have some confines in terms of their price as exclusivity. They are affordable, yet they enjoy a reasonable level of perceived prestige as compared to middle-range products. The prices of ‘new luxury items are kept only slightly above those of middle ranges. This helps in targeting a much larger segment than the traditional luxury niches. The consumers for this new luxury come from middle and upper middle classes for whom luxury purchase is a form of self reward and indulgence. Their focus is a desire for living the good life and private pleasure. As Twitchell says in his book ‘Living It Up: Our Love Affair With Luxury â€Å"These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not stay put. They now have money to burn. The competition for their attention is intense, and their consumption patterns if you havent noticed are changing life for the rest of us.† (Truong, McColl, Kitchen, 2009) The term masstige was introduced by Michael Silverstein and Neil Fiske to refer to a new category which aims at providing luxury to the masses. The term is derived from the words mass + prestige goods and services that occupy the space between mass and class (Silverstein Fiske, 2003). These products are priced at a premium over the convention but are not always positioned at the top of their category in price. A recent survey by the Boston Consulting Group (2004) said that the top four categories for ‘trading up are homes, cars, appliances and dining out (Florin, Callen, Mullen, Kropp, 2007). Examples of new luxury goods are the urban BMW 1-series starting at $ 19 000, Ralph Lauren Polo shirts sold in outlets for $ 9 and Swarovski crystals with prices as low as $ 20. (Truong, McColl, Kitchen, 2009) MASSTIGE TO MASS? Critics argue that brands which enjoy the tag of ‘masstige today, could become the ‘mass brand tomorrow. By definition, it is contradictory to sell prestige and exclusivity in mass (because when something is owned in mass, it would no longer be prestigious). These products may be successful at first, but their enchantment for the consumer would be inversely proportional to their success. The critical success factor, then, for masstige brands would lie in maintaining the equilibrium between prestige differentiation and a reasonable price premium. â€Å"In order for a masstige product to be successful in the long term, it must have a noticeable differentiation in design and/or technology compared to the regular products in the category. This differentiation must be real and marked. Promises of â€Å"improvements† are not enough if they dont really exist or are imperceptible to the consumer† (Smith, 2007). LONG LIVE LUXURY! With the advent of masstige, top end luxury houses like Armani and LVMH are entering into the affordable luxury arena. Critics argue that as luxury becomes more and more affordable, the concept itself will die out. Here is where understanding the sign-value of luxury is important the concept is not absolute but relative. Over the centuries, what constitutes luxury has changed, but the concept has endured. Brands that are at the top may not remain there, even objects that are considered to be part of luxury may change, but because of human social needs, the concept of luxury will persist. (Mortelmans, 2005) LUXURY vs. MASSTIGE Motivations for consumption When defining masstige, price is not the only criteria to differentiate between the realm of luxury and that of accessible luxury. An extremely important difference lies in the motivations for consumption. While the reasons for consumption of luxury can be both internally as well as externally driven, consumption of masstige is in most cases externally driven. Conspicuous consumption, which formed the basis of luxury when the concept originated, now forms the basis for the masstige category. Hence, a Valentino gown does not have a logo printed on it but a Tommy Hilfiger product will always have a label, logo and some visible identification mark on it so that others can see it. Global versus local Luxury is global, it remains the same across the world luxury brands target the elite who expect the same experience from their brands whether they are in the United States, Europe or in Asia. Although various brands have specific associations with the heritage of their countries of origin, a luxury brand is not modified to suit a particular geography. It is meant for people who are global, and hence the brand perception and delivery has to be ‘global in approach and consistent in delivery everywhere. Masstige on the other hand needs to be localised to an extent because the consumption of masstige is directed outwards. It has to adapt to the cultural ethos of the geography in order to remain relevant and in the process also gets absorbed into the culture of any society. LUXURY IN THE INDIAN CONTEXT TRACING THE ROOTS Luxury in India has its roots going back to the era of the Maharajas who, for centuries, splashed their enormous wealth and lived opulently. The Mughal dynastys wealth and power was a legend but as it waned, the old Indian maharajas began to re-emerge, and new ones began to rise. With the arrival of the British Raj, western influences began to show in the collections at the royal courts. Then began the romance with brands like LVMH, Cartier, Gerrard and Asprey. â€Å"Indian courts commissioned all sorts of fine art like jewellery, woodwork, painting, enamelling, inlaid weaponry and intricate floor coverings† (Gopinath, 2009). Jewellers like Cartier and Van Cleef Arpels, Louis Vuittons bags and luggage and watches by Jaeger-Le Coultre, which were the icons of luxury in Europe, were frequently commissioned by kings. At the same time, western styles of dressing were being adopted. (Forster) The Maharajas, who were patrons of music, arts, poetry and craftsmen, began to patronise European and Indian artists and designers as well. The Victoria and Albert Museum, London, has opened an exhibition ‘Maharaja: The Splendour of Indias Royal Courts in November, which will be on display till January 2010. The exhibition explores the lives of the Indian royals beginning from the 18th century till the end of the British rule. The exhibition showcases 250 items a number of which have been loaned from the private collections of the erstwhile royal families of India. Some of the objects on display are the Maharaja of Indores Modernist furniture, a Louis Vuitton travelling case, French designed sarees, a Rolls Royce Phantom and the studding diamond necklace of Maharaja Yadarendra Singh of Patiala. The necklace which was completed in 1928, originally contained 2930 diamonds, weighed almost 1000 carats and was part of the largest single commission that Paris jeweller Cartier has ever executed. Though Western brands are now flocking to India after its new found affluents, India has clearly been consuming western luxury since way before. LUXURIFICATION OF THE INDIAN SOCIETY The Indian luxury landscape is rapidly transforming owing to a combination of economic and social factors: Rising Affluence Merrill Lynch and Capgemini report that the number of high-net-worth individuals in India (at least US$1 million in financial assets) increased by 20.5% in 2006. According to the McKinsey Global Institute, consumers earning more than 1,000,000 rupees a year will total 24 million by 2025 larger than Chinas comparable segment. Their share of private consumption is projected to increase from 7% to 20% in 2025. However, it is the emergence and steady rise of ‘mass affluence of the Indian middle class coupled with aspirational mindsets and lifestyles that is driving consumer demand. The scope for luxury today is larger than it has ever been in India before owing to the strength of the population that can now afford luxury goods. According to sereval reports by McKinsey Global Institue, the Indian middle class (household disposable incomes from Rs. 200,000 to 1 million a year) will increase from approximately 5% to 41% of the population and will become the worlds fifth largest consumer market by 2025. (Foreign Policy) Exposure to Media Media explosion in the form of television, radio, internet and print has led to increased product knowledge and awareness of brands. Fashion and lifestyle media have established a strong following as mainstream media are taking greater interest in consumer lifestyles, fashion trends and luxury brands. A milestone here was the launch of the Indian edition of Vogue magazine in 2007. Along with the platforms available for advertising, the spending on advertising is also rising. According to ZenithOptimedia, advertising expenditures in India increased from US$1.1 billion in 1996 to US$4.7 billion in 2006 and forecasts suggest that this number will exceed $7 billion in 2009. Accessibility of luxury brands A couple of decades ago, in order to purchase luxury brands such as Gucci, Cartier and Chanel, Indian consumers had to travel to Europe or the U.S. Today, the biggest names of the world like LVMH, Armani and Tommy Hilfiger are present in not only Delhi and Mumbai, but are also setting shop in the upcoming metros like Pune and Hyderabad. Inadequate retail space has also been a challenge to luxury brands operating in India which have been, until recently, hidden in lobbies of five star hotels. The retail boom is changing this scenario. Organised retailing, which currently comprises 6% of the market, is expected to rise to 15% in the next two years. Retail space has increased from 22 mn sq ft in 2002 to 101 mn sq ft (almost 5 times) in 2007 and is predicted to increase by a further 200% to 300 mn sq ft by 2012. (Jindal, 2008) With the retail revolution, newer formats like luxury shopping malls are evolving. An example of these new avenues for luxury brands is the Delhi luxury-goods mall, Emporio which opened in March 2008 which houses over 70 international high-end brands. In 2006, again, AT Kearney has ranked India at the top of its Retail Development Index as the worlds most attractive market for mass international retail expansion. Brands like Marks Spencer, McDonalds and Tommy Hilfiger have entered the market with franchisees due to market regulations which are in the process of loosening up further. (Euromonitor International, 2007) Market Regulation The further liberalisation of the Indian economy has made the market attractive to international players despite heavy import duties on luxury goods and foreign investors are looking to make long-term investments in the country. (Atwal Khan, 2008) THE CHANGING FACE OF THE INDIAN LUXURY CONSUMER In an interview the Pitch magazine, Radha Chadha, author of the book ‘The Cult of the Luxury Brand said that India currently is at an early stage of the luxury brand culture. â€Å"Typically, it starts when a country goes through a rapid economic growth and that has been happening in our country for the past few years. It puts money into peoples hands, at some point they want to demonstrate that. The third stage is what I call the show-off stage, where China is today and some of India is moving towards. Then comes the fit-in stage where we see a large scale adoption of luxe fuelled by the need to conform. The last stage is way of life where people are habituated to luxe products; they become confident and discerning buyers, like in emerged markets†. (Chadha, 2008) The luxury market in India has traditionally been segmented according to two distinct customer groups the affluents and the non-affluents. With the pace of economic development, rise of the middle class and the transition towards a consumer society, the profile of the luxury consumer has also evolved. Clustering luxury consumers into segments based simply on socio-economic classifications is erroneous. Todays luxury consumer is much more diverse and hence the old segmentation and classifications need to be reassessed. The regular classifications of customers based on income or SEC are not sufficient today to gauge clearly who are the consumers who are actually consuming luxury (Pant, 2009). India has always had a small elite segment that has been shopping abroad and buying western brands for ages. This elite class consists of the descendants of the royal families, nawabs and small rulers and long standing industrial families like the Birlas, Tatas, Godrej, Bajaj, Mahindras, some tracing their roots back to pre independence days. (Chadha Husband, 2007). This was the select, privileged segment that was exposed to and could consume luxury. In todays scenario, a typical BPO operator in Mumbai or Delhi is spending a substantial proportion of their monthly salary on international brands of clothes, accessories and cosmetics. â€Å"These are consumers are not affluent in the traditional sense of originating from wealthy family backgrounds, but are ambitious and successful in their chosen professions. Personal performance based on merit has got them to where they are today. Todays luxury shopper could be a broker, an entrepreneur, IT specialist or a student† (Atwal Khan, 2008). They purchase luxury not simply to show off, but as a self-reward. As Atwal and Khan say in their paper ‘Luxury marketing in India: because Im worth it, this generation consumes brands, goes shopping and purchases luxury as they firmly believe in the sentiment â€Å"because Im worth it†. The Indian Affluents In her article in the Brand Reporters special issue on luxury marketing, Vatsala Pant says that it is to try and understand these diverse consumers that one such measure, the Nielsen UMAR (Upper and Middle Rich) survey has redefined affluence using lifestyle and ownership of consumer durables factors (Pant, 2009). On the basis of these factors, Nielsen has estimated that there are 2.6 million affluent households across 35 cities (metros and upcoming metros) of India. Affluent Households in India (Source: Nielsen UMAR survey) — LANGUAGE Luxury is no longer reserved for the English-speaking elite. The survey reveals that 51% of these affluents have been educated in languages other than English and dont speak English as a primary language at home. The primary language spoken, then, becomes the preferred language for media consumption. — FAMILY STRUCTURE Ninety percent of these households live in nuclear families or nuclear families with elders living with them. The average size of the family is 4 members with the chief wage earner typically over 35 years of age. — DURABLES While all the households have the basic durables like TV, refrigerator, washing machines and mobile phones, the Rich segment is seen to have more expensive double-door refrigerators, front loading washing machines and microwaves as well. 20% of the affluent households have two or more TV sets. — MEDIA CONSUMPTION While the most popular medium is TV (watched in 98% of the HH), the next most popular is print where 70% HH read English dailies. However, only 10% read English business dailies. Popularity of watching cinema outside the home is more (67%) than radio listenership (54% of HH). 55% of the HH browse the internet while only 38% read magazines. (Pant, 2009) Changing Trends of the Affluent Indian Consumer Indian consumers are value conscious and highly value driven. Not just products, but the delivery and experience are becoming increasingly important. With the advent of international luxury brands with a bang into the country, consumers want world-class brands, and expect world-class quality, service and experience. They expect the latest designs and most modern technologies available. As the purchasing power has gone up, so have aspirations. The concept of wealth to be enjoyed rather than just display and badge value has emerged. Indulgence and self-rewarding behaviour are on the rise rather than simply the need to show-off. (Raman, 2007) NEW LUXURY FOR INDIA In their paper ‘Luxury marketing in India: because Im worth it Glyn Atwal and Shaziya Khan say that â€Å"the establishment of different levels of luxury ranging from ultra luxury to affordable luxury is a reflection of luxurys increasing mass appeal in India†. The concept of masstige or new luxury is extremely relevant in the Indian context for two reasons firstly, the market for masstige is huge is India owing to rising disposable incomes and a burgeoning middle class. Secondly, Indians are extremely value conscious and new luxury would, for many, be the first opportunity to experience luxury. This, then, could be the first step for a large population to move on to luxury. Rising incomes and the recent retail boom in the country coupled with increasing awareness has sparked off consumption of new luxury brands in India. At the same time, the arrival of international brands and players on the scene has provided accessibility to global resources and efficient supply chains. â€Å"The Indian society is moving towards NUF (Nuclear Urban Family) where each individual has their own tastes and preferences† (Marketing Funda: Masstige, 2007). The consumer is becoming more demanding in terms of value, quality and service. A Euromonitor report on India states that for the burgeoning middle class, the spending area is shopping for brand names. Consumerism is a significant aspect of the new, younger middle class which gives a lot of importance to lifestyle and branded goods. (Euromonitor International, 2007) A look into the Indian consumers luxury needs In their qualitative research of the Indian consumers, Glyn Atwal and Shaziya Khan discovered that the Indian consumer associates luxury with perceptions of not just quality and performance but with comfort, beauty, pleasure and style. The product is no longer the sole criteria for choice, the service and experience of shopping are crucial to the decision making process. When societies experience fast economic growth, the phenomenon of luxury usually gains popularity because the acquisition of luxury is a symbol of prestige and signifies how fast you have climbed up the ladder of social mobility. A similar phenomenon is being seen in India but the motivations to acquire luxury brands go beyond displaying social status. Consumers are moving on from an outward expression of luxury to an inward directed emotional experience. Luxury brands are helping people â€Å"define identities and express values†. (Atwal Khan, 2008) CHAPTER 2: INDIAN ADVERTISING- AESTHETICS CONTENT ADVERTISING INDIAN CULTURE William Mazzarellas ethnographic study of ‘globalizing consumerism in the context of Indian advertising talks about how advertising is produced in metropolitan India and transformations in the Indian public culture along with the rise of mass consumerism. As Mazzarella puts it: â€Å"As an aesthetic interface of post colonial capitalism, the everyday practice of advertising constantly calls into question the conceptual alignments that ground business discourse: local and global, culture and capital, particular and universal, content and form† (Mazzarella, 2003) Goods possess meaning of two kinds: 1. given and propagated by manufacturers and 2.that have been created by the users themselves because of the way they use them, symbolic meaning etc. Material culture is not simply about objects but about the â€Å"intimate connection between the object and its users†. The value of any material is co-constructed by the manufacturer/seller, the user and the society/social norms/perceptions/evaluations. While necessity is culturally associated with lower incomes and to an extent poverty, luxury stands at the other extreme being associated with wealth as well as taste. Comfort comes somewhere in between. Again, what we define as necessities or luxury comes from our cultural framework. In India, the cultural framework is defined largely by the middle class for whom, say, not just food, shelter and clothing but hygiene too may be necessity. (Nayar, 2009) The Indian culture has deeply embedded in it values of saving and economic prudence. This is why trade promotion deals like 25% extra on packs, free gifts etc. work so well in the market. This economic prudence is not just monetary, it also has a strong influence of moral economy i.e. economy that is good for the family as a whole. A married woman feels she has been a good mother and wife if she has saved money on her daily grocery shopping. The other fundamental values are those of safety and privacy of the family and to be aesthically and culturally presentable. (Nayar, 2009) With the rise of globalization and proliferation of MNCs into the country post 1991, ironically, a new movement began that of the New Swadeshi. In the increasingly ‘global scenario, Indians were searching for what is their own. The term swadeshi re-entered the vocabulary of India during 1996-97. Over the last decade, the swadeshi and the global have merged, adapted and evolved from the transnational media of the 1990s which were supposed to have an â€Å"Indian soul and international feel†. The formula here was to show stereotypical exotic imagery of the Indian â€Å"tradition† and place it in an international context. <

What Time is It? :: Essays Papers

What Time is It? Before meeting with my friend Leticia from Honduras, Central America, I would ask her if she was arriving according to North American time or Latin American time. Smiling, she would answer, "A la hora Latina, of course." This meant that she would be late. The concept of time is very different for Latin Americans than for North Americans. Life in the United States is fast-paced. There are fast food restaurants, overnight delivery services, shuttle services, instant cash machines, fast weight loss plans, and even instant minute rice. Avidly following such sayings as, "The early bird gets the worm," and, "First come, first served," North Americans even have their meals in an efficient manner. Microwaves help nuke their early breakfasts, noon lunches, and five-o'clock dinners. "Time is money" for big businesses. Everyone follows set agendas. Minutes are taken at meetings that are precisely scheduled. North Americans take pride in juggling busy work schedules and still finding time to spend with family and friends. Latin Americans stroll leisurely through life. They amble past open-air restaurants, across shaded patios tucked behind walls of Bougainvillea. In the cafes, the service is slow but courteous. Outside on the streets, people walk by, not for weight purposes, but to get somewhere. Buses arrive and depart on their own schedule, sometimes sooner or later than their printed times. And if you miss the bus, wait. One will come along eventually. Mid-morning breakfasts are homemade. Lunch is around three in the afternoon and dinner could be anytime after the arranged time. No one follows a set agenda, but business is accomplished at a gradual and comfortable pace. Watches are not followed precisely, and one barely ever hears the question, "What time is it?" This cultural difference has proven to be a problem for many North Americans visiting Latin American countries and vice versa. For example, this problem has escalated on the issue of adoption. While in Honduras the summer of 1989, I translated for couples from the United States who were looking for children to adopt from Central America. All legal procedures were transacted between a lawyer from the U.S. and a Honduran lawyer. Legal matters on the North American end were handled almost immediately. The Honduran lawyer, however, was considerably slower with field work and paper work and was unable to give definite dates or times for the completion of the adoption. This created a cultural barrier and added to the confusion of the situation.

O Captain! My Captain! Essay

Every decision concerning the ship and the crew is made by the captain; he has great responsibility for his people. By carrying the title ‘captain’, he agrees to attend to all duties as leader of the ship. Part of the captain’s job is to give orders and to demand that they will be followed accordingly; his main concern is the safety of his crew. Sometimes, the crew doesn’t seem to agree with the rules and limitations that were made by the captain, and that makes it difficult to obey them. These rules can create fear and distance between the captain and his people. But, eventually, the crew will realize that the captain had made those rules for their own good. Once they will come to this realization, they will start to respect and to trust their captain completely. They will feel safe when he is around them; they will start looking at him as their anchor. A father is much like a captain, yet, different. A father, like the captain, takes his kids on a journey, the journey of life. He is responsible for their safety and well being through out the journey. In order for this journey to be a successful one, the father has to give rules and to create limitations for his kids. Growing up, the kids understand that every rule and every limitation that was made by their father was for their own good. They start to respect and trust their father; they seek advice from him and they view him as their source of comfort. A father differs from a captain. How so? A father loves his kids. Every decision or rule that he makes is enveloped with warmth and love. The distance that is created between the captain and his crew due to the rules and limits will not be as strong when it comes to a father and his kids; his eternal love for them will allow him to break the rules sometimes. The kids’ love for their father will allow them to get closer to him; closeness that can never exist between a captain and his crew. Whitman sees Lincoln as the captain of the ship but also as the father of the citizens. To him, Lincoln was a unique leader; he had the qualities of a captain and the qualities of a father. Lincoln was able to set the necessary rules and restrictions in order to overcome the challenges arose by the civil war. He knew how to lead the country in the right direction towards victory. But, he was also a father. Every one of his acts and decisions were enveloped with true love towards his citizens. I have recently watched the movie â€Å"Dead Poet society†. The movie talks about an English teacher who comes to teach a group of privileged students. Through out the movie, the students refer to their new teacher as their captain. They feel for their teacher what Whitman felt for Lincoln. They view the teacher as the person who guides them through the learning process of poetry, but they also, like Whitman, feel that every act or step that was made by the teacher is enveloped with love for his beloved students. Whitman refers to Lincoln as a father only in the second and third paragraphs but not in the first one. The first paragraph talks about the victory, the steadiness and the happiness of the country and its citizens. Whitman doesn’t see Lincoln in his weak moments; he sees him as a captain, a strong figure that every one admires. The other two paragraphs talk about the death of the strong man, the captain. In these moments, Whitman feels close to him, he cares for him like a son cares for his dying father; he wants to help him.

Republicanism in Renaissance Italy essays

Republicanism in Renaissance Italy essays A key idea of republicanism is self-government. Republicanism was revived in renaissance Italy to fight against the right to rule of the church, and the given divine right to rule of a monarch. The term republic most commonly means the system of government in which the head of the state is elected for a limited term. However, monarchies are based on the idea that one person has the hereditary, divine right from God to rule as head of state during his or her lifetime. Republican theory holds that all people should be able to have their voices heard, whereas in a monarchy the rule comes only from one person. Republicanism emerged as a result of years under papal and monarchial rule. The people believed an independent and self-governing people, together with the rights of citizens to participate in the government and a constitutional framework assigning definite roles to various social groups, forms the basis of liberty. (Republicanism and Democracy. Overseas Young Chinese Forum) Instead of focusing on the importance of rule by the people and the idea of political equality, republicanism advocates self-government, mixed constitution, and the need for government that reflects the interests of the many (most of the people in the society), the one (the monarchy), and the few (the aristocracy). This form of government provides a broad span of social classes a voice in their government so that different interests are taken care of, and order is maintained. It was important that their voices be heard because there was a basic idea of sovereignty of the people. In Florence, the politics rested on two central notions: first on the idea of the sovereign, centralizing state, the embodiment of the res publica and the locus of all political life; and, second, on the conviction that the operative components of this civil community were individual citizens to whom an equal degree of liberty was quarant...

What nasty little things are lurking inside your data center essays

What nasty little things are lurking inside your data center essays Many companies, because of the improving reliability of computer hardware in general, have become blas about how and where they keep their fundamental equipment, the servers. In addition, computing itself seems to breed even more computing, so that banks of servers often grow seemingly without human help. This might be nowhere more true than in any sort of health care setting. Needless to say, when servers go down in a health care settingespecially if it looks as if they are doing so without human interventionit can be especially damaging to the mission and operations of the facility. Yet, despite professional IT departments serving the hands- on health care and administrative needs of a health-care facility, glitches can happen. Diagnosing them can be tricky, especially since the maladies that can afflict these servomechanisms can be almost as subtle as those Toronto's Baycrest Centre is one of the largest geriatric care facilities in Canada. So it is essential that its bank of 50-plus servers maintain the 99.9 percent uptime figure the IT department had enjoyed until the increasing miniaturization of these new units ended up in wasted space. IT decided to remodel that space so it could be used for other purposes. About that time, the servers began experiencing downtime in patterns no one could figure out, and for reasons none of the staff or even consultants called in could find. Every system that could possibly have had an effect on the servers was consulted about. While there were some minor problems in all areas, nothing could be connected to the intermittent problems Solving the problem seems to be almost providential. A Hewlett Packard sales representative mentioned he'd recently seen a similar situation elsewhere and had an idea that the problem migh ...

Why Religion Cannot Be Excluded from American Politics Essay

Why Religion Cannot Be Excluded from American Politics - Essay Example This study discusses that  in recent times, there has been a growing feeling that only those views supported by fact should determine public policy. Many perceive religion as an expression of personal opinion, and religious followers share this sentiment. The result of this push has been that fewer religious followers are acting politically because they regard even their own views as opinion rather than fact.This paper outlines that  religious persons play by secularists’ tunes and are made to feel as second-class political participants. Secularists claim that most assumptions in Christianity are based on faith thereby nullifying their validity. However, in order to rightfully claim superiority in political discussions, secularists should also shed any assumptions of faith. This is simply not possible as no humans are value-free.  Secularists believe that society should decide what worth should be placed on man while Christians and other religious followers hold that God determines man’s worth. Therefore, in the abortion debate, secularists may support the act because they believe that some people hold greater value than others. This view is not necessarily based on fact but is an opinion about the primacy of society in determining people’s value. As it can be seen, secularists still engage in the very things that they criticize the church for.  Both groups have their own views on what man’s nature is, so they each deserve a place on the political table.

Think like a biologist Case Study Example | Topics and Well Written Essays - 250 words

Think like a biologist - Case Study Example Primarily, we repose on failure of the statement that the human eye is a result of evolution coming from the analysis of eye components and their cooperation while working. In particular, â€Å"If you look at these [evolutionary] schemes, they often very abruptly add a lens or a cornea† (Than, 2010), while there is no such a process in the world when a part of an organism appears from nowhere and instantly connects with other parts in functioning. Probably, there must be a stronger argument than that one according to which there has been a simple sightless organism at the beginning that has transformed into the highest creature (a human being) with the eye almost universally adoptable for numerous needs of its owner. As for the claim of intelligent design of the human eye it sounds more argumentative. Although, there is no written proofs representing peculiarities of eye functioning or visual perception of people in different times since creation of Adam and Eve, today’s researches evidence that the human eye is unique in its general mechanisms, which parts are inseparable, for they all actively participate in sense of sight and removal of any of them leads to the critical reduction in