American Luxury Brand Case Studies Essay

Arrowood Times are not promise for boutique Ameri dirty dog wineries, with many closing, plowing under their fields, or selling out to larger interests who guard the resources to survive the down regimenstuff. The worldwide glut of wine grapes from a succession of bumper harvests, increased competition from base tier and lower cost imports (among them Chile, Australia and South Africa) has California in a tailspin. There is besides a Californian producer nicknamed Two Buck Chuck selling wines at US-3/bottle, 10 million bottles change in the USA so far this year al ane.Another indicator is the fall in bewilder onward for organic produce. During the boom old age, consumers were prepared to pay premium expenditures for certified organic fruits and vegetables. Only the most efficient and well-managed farms impart survive the collapse of that segment of securities industry, which also supplies grapes to the organic winemakers. Arrowood typifies th e down in the mouth boutique Sonoma winery in business 15 years, their name made on well-regarded wines in low production from a handsome state-of-the-art facility. The stain is always fully subscribed for its yearly limited edition bottlings.The company cannot depart from its premium cachet by anchoring off on pricing, which begins at /bottle from the winery, higher at sell. Two years past Arrowood unsuccessfully fireed to position high-end Syrah as a upstart trend, charging footings similar to high-end Cabernets. The public was not so easily convinced. Demand is down for their commercial production, and today they have lineage of Syrahs, which cant be offered at less than originally asked, without devaluing the brand. Best & Co. Best & Co., originally a multi-storied department store on Lower Fifth Avenue, New York City, stayed in business for nearly a century before closing its doors in the 1960s. Oriented exclusively for children, Bes t re engulfed two years ago under the sensitive stewardship of Susie Hilfiger. The legacy brand was renowned for its bewitching quality merchandise and exceptional client service, founded upon the idea that children are important. Hilfiger opened a Connecticut store, resurrecting the original logos and interior design, and subsequently added a high-end boutique in Bergdorf Goodmans Manhattan location.In addition, the company has both online and catalog channels for offering their beauteous line of house brands and imports. Blackglama This Seattle-based fur cooperative established its brand with the highly regarded What Becomes a Legend just about? campaign, almost thirty years ago. A spinoff of the parent brand named American Legend Mink, Blackglama make upd its brand wisdom by associations with personalities of international stature, among them Callas, Dietrich, Garbo, Hepburn, Loren and Pavarotti, captured in artistic black and white photography. Since 2002 the brand has reinforced its franchise with the relaunch of its standard campaign featuring an international supermodel. Throughout its brand life, Blackglama has been uncompromising in footing, sophistication and quality, always holding to the bakshis tier. A true American luxury brand. Cadillac Cadillac Motors, which later became a sectionalisation of General Motors, dates from the early days of mass-produced automobiles. It is the oldest surviving American luxury car brand.Once a synonym for the highest quality in vehicles, by the 1950s the brand had become the favorite of Texan oil millionaires, Arab potentates and Elvis Presley, who habitually gave them away by the dozens to his entourage. Cadillac began to lose market share in the 70s with increased competition from Fords Lincoln division, and the introduction of other luxury vehicles primarily of Japanese manufacture- who marketed to a younger, newly-affluent demographic. Cadillac uns uccessfully responded by attempting a downsized model, Cimarron, 1982-88, driving brand perception lower.Today, Cadillac is perceived as retirees car, while it retains some small segment of the limousine business. A partnership with Pininfarina 1987-1993 produced a visionary prototype, Alante, intended to compete with the Mercedes SL. Cadillac launched the Escalade, a crisscross SUV in 2000. In todays hyper-competitive environment with a climate of weakened sales on all fronts, the glory days of a top-tier luxury brand seem to be history. In an attempt to recapture the magic, this summer Cadillac released a ,000 limited-production 2-seat sportscar, the XLR. Callaway Clubs This manufacturer of high end golf clubs since 1982 has a constitution as the best in the business. They scored a major product success story in the 1990s with their soupcon top-of-the-line Big Bertha titanium driver, a technological innovation which transformed the game through its dist ance-enhancing features. They continue to brandish their line of clubs, except low-end brand extensions such as active wear, luggage and footwear prevent Callaway from arriver the highest luxury tier. Harley-Davidson The iconic American motorcycle sustains a proud history, enduring product quality and a high price point. In the face of increased competition in 1987, Harley sent a trouble team to Japan to learn about superior production techniques. Todays median client is 55 years old, a buyer who recognizes that the brand personifies the outlaw sensibilities, romance of the open road, and the American stargaze of unbridled freedom. However, numerous brand extensions and licenses, many of them downscale, i. e. cigarettes and clocks, have kept Harley in the middle levels of the luxury fellowship. Hamilton An American watchmaker, founded in 1892 in Lancaster, PA, known for innovative case design and watch technology. Hamilton today is a fragment of The Swatch Group, the largest watch producer and distributor in the world, thus losing some of its uniquely American imprint. Association with Hollywood movies like Men In Black, and an entry level price point of under 0 keeps the company short of luxury. But superior collectible designs and a high historical profile, including introducing Pulsar, the worlds first digital watch, suggest a brand occasionally skirting the luxury franchise. Hummer A classic instance of brand hijacking, where consumers attach attributes to a product that its manufacturer never intended. The Humvee originated as a government contract vehicle, designed for the military. Survivalists, conservatives, and yuppies adopted it as their signature icon vehicle, with some cachet connect to its 0,000 price tag. It has since become the Rapper car of choice, and a popular status vehicle.After unexpected market demand, Hummer an Indiana-based division of GM- new-fashionedly introduced two low-cost, downsized models in the ,000 range, thus moving the brand below its precedent designation as premium luxury. Hyatt An interesting attempt in progress to enter the luxury caparison space in Europe. Hyatts new five-star Park Hyatt Paris-Vendome hotel hopes to compete with properties such as the Ritz, Georges V, and Au Duc de Lorraine. They irrupt from the tradition of Belle Epoque style, relying on ultramodern design, younger staff, while continuing to emphasize first-class service.Its a brave undertaking, what with their existing perception as a middle-level American hospitality brand. It takes several years to establish a hotel property, so the jury will be out for some time. Kiehls A family-owned pharmacy, in business since 1851 at the same single NYC location, manufacturing its own vast, proprietary line of skin dispense products. The company has built some distribution at other retail outlets. Brand image relies on generic style pac kaging and no advertising, a high service and satisfaction proposition, product wholeness and community involvement.Kiehls narrow product focus, body care products, occupies a space at the mid-level price point, thus holding it, perception-wise, a tier below the luxury category, despite department store outlets in the luxury cosmetics area. In recent history the brand has gained a cult following in the diversion industry, and stars have consequently promoted the product line. In response to improved demand, Kiehls recently began a retail expansion in 8 cities with their own storefronts, designed to resemble a traditional pharmacy.Kiehls also created an equine line of show-quality standard grooming products for horses and ponies. The association with the equestrian world adds some higher value perception to the brand, despite its mid-range price point and no-image packaging. Lincoln This ubiquitous sub-brand was created by Ford to compete with Cadillacs luxury franchise. It has since supplanted Cadillac as preferred limousine brand and is now primarily associated with the town car, on which most high-end car service clears are built.Two years ago Lincoln attempted to create a hybrid fusion vehicle called the Blackwood, which one critic called neither practical pickup nor luxury-car replacement, and the model was in release only one year before being discontinued. Lincoln has benefited from the launch of a successful SUV called Navigator. NetJets This company is the premier provider in the private jet transportation category, with the largest market share, over fifty percent worldwide.NetJets sells partial or full shares in new jet monomania to corporate clients and individuals with a high net worth of million or more. The business model is a unique one, with a number of avenues for tax advantage, and with a system of buyback and plan conversion guarantees starting signal at the low end for about 5,000 per year. NetJets is wholly owned by Berkshire Hathaway, whose boss Warren stroke was originally a satisfied NetJets customer. He eventually purchased the entire company, and his deep pockets back the undertaking.NetJets dominates the category, with a fleet of over 450 new, luxurious aircraft of varying capacities and distance capabilities, a sister company in Europe, in-house safety and preparation programs and its own team of meteorologists and dispatchers. No other jet transportation provider in the world can compare. In fact, competing firms are struggling with older aircraft and anaemic balance sheets. As a strategy to take more business from the smaller charter companies, NetJets adopted the Marquis Jet Card, a lower price point, lower minimum dollar entry-level commitment available in units as small as 0,000.The batting order has performed significantly better than projected. The company markets itself as the utmost in safety, comfort and security, partnering with Ritz Carlton for service staff training, and the mayonnaise Clinic for on-demand medical resources. Advertising and brand messaging are quite confused, delivering multiple concepts often at odds with from each one other. But advertising probably does not figure greatly in NetJets success. The most often heard challenge to their sales people concerns high cost an inflexible and uncompromising pricing policy has stood the brand well.Plus, Buffets ownership is enough to convey the distinction and premium luxury prestigiousness conferred by association with the worlds second richest man. Panavision This company has an unblemished 50 year reputation for providing the hunky-doryst quality cameras and lenses for the motion picture industry. While not widely known to the general public, Panavisions submit is universal and international in the film community, regarded as the best in its category. Ritz Carlton The respected hotel chain was acquired in 1998 by Marriott, after a period of expansion into new locations and properties.The original Boston hotel was immortalized by F. Scott Fitzgerald in the short story The Diamond As Big As The Ritz. Upholding a standard of excellence in service, the company motto is We are Ladies and Gentlemen serving Ladies and Gentlemen. The company prides itself on its Gold Standards, a highly subtile system of directives which each employee must know and understand, a proven technique developed to sustain the brands preeminence. Ritz Carlton partners with NetJets in flight service training, an indication of the exacting standards this fine business model upholds. rosewood Hotels & Resorts Founded in 1987 by Caroline Rose Hunt of Dallas, Texas. The moment guests set foot in one of our hotels or resorts they enter a private world of rare and refined luxury. At the heart of each property is our dedication to uncompromising quality and exemplary personal s ervice. The winner of numerous industry and media awards, rosewood has trophy properties in the USA, the Caribbean, Asia and the Middle East. A solid premium luxury brand. St.Regis The premium luxury division of the Starwood Group, who also run the Westin and W brands, among a range of niche hospitality groups. Another division, called The Luxury Collection, travel lower in the actual luxury category, bringing together over 70 international properties, many from the Sheraton Group. St. Regis is a good example of a counterfeit brand, who bases its reputation on a single legacy property built in 1904. The actual property was acquired by Starwood in 1998, and the parent company curtly added properties under the St. Regis brand name in nine other cities.The flagship NY property and its affiliates worldwide do hypothesise the highest standards of hospitality, and so far in their short history deserve the luxury designation. Technicolor The company ro se to gibbousness providing the highest quality in celluloid film stock and processing in an 80-year franchise, as unchallenged category leader. Technicolor has high associations with the Golden Age of post WWII cinema. The company has adapted much of its business to new technologies, but it may be the end of their brand domination owing to inroads made by competitive digital imaging providers. Tiffany The quintessential American brand, with old world style and Beaux Arts luxury associations dating back to 1837. Tiffanys first store opened in NYC with a policy that every article be marked with a non-negotiable selling price, accompanied by a guarantee of exceptional quality and customer satisfaction. The company soon innovated the signature blue bag and sales by catalog. Towards the turn of the century Louis cherish Tiffany further grew the brands prestige with breathtaking Art Nouveau experimentations in lamps and glasswork.Robber barons relied on Tiffan y for everything from fine china, leaded glass windows, silverish goods and engraved stationery to opulent gems. During his 30 year tenure, the legendary jean Schlumberger added to the companys lustre with his elegant and sophisticated jewelry, which combined brilliant craftsmanship and superior preference in materials. Tiffanys democratization began in the 1950s when Truman Capotes story, Breakfast at Tiffanys turned the brand into a household word.As Schlumbergers career began to wane in the 1970s, Tiffanys classical glamour began to fade, and the firm sought renewal by releasing a signature fragrance, a puzzling and incongruous brand extension which seems at odds with the original franchise. Other attempts to create new magic for the brand include the licensing of designs by Paloma Picasso, whose family name carries the cachet of fine art but her designs for silver earrings brought brand perception downmarket, as did comparable designs by Elsa Peretti at a similar low price point. Tiffanys history barely reconciles today with its current state a brand gone meagerly south, with a faint memory of a company who once popularized the iconic myth of The Tiffany Diamond. However, Tiffanys recent financial performance is a success story. The stock price has gone from to in the last 12 months, validating the mass-merchandising strategy with bottom-line results. Wolfgang hockey puck A gradual downmarket slide.Pucks origins as a celebrity chef in California led to his first brand extension as author of a best-selling cookbook. Excerpted from his web site, the culinary empire he has built since the early 1980s consists of the group of fine dining restaurants through which he first rose to prominence his extensive catering and events business, which gains international perplexity through its flagship event, the annual Governors Ball following the Oscars and Wolfgang Puck Worldwide, Inc., the corporation that cont rols the Wolfgang Puck brand in areas as diverse as casual and quick-service dining, consumer packaged foods, cookware, book publishing, television, radio and internet programming, and other franchising, licensing, and merchandising activities. Pucks presence in packaged frozen food products, his industrial-sized Las Vegas location and 75 fast food airport franchises weigh heavily on his former luxury cachet. He is no longer luxury, but a high-end mass-market conglomerate. Harry Winston Sparse, well-chosen high-ticket, high-visibility advertising and promotion has helped this premium luxury brand maintain its associations with opulence, new money, and decadence.While Winston has the biggest and most valuable stones, its designs are no longer considered the most remarkable artistically, simply extravagant, maybe a bit vulgar. Harry Winston Ultimate Timepieces, founded in 1998 and based in Geneva, has introduced the new ,000 Opus oneness Tourbillon watch, enclosed in a platinum casing, garlanded in gold and diamonds, with Swiss movement.The parent company will always be associated with the Hope Diamond, which it acquired in 1949 and later donated to the Smithsonian Institution. Could it be that the brand is tainted or dragged downmarket by associations with rappers, celebrity athletes, Texan oil millionaires and curvaceous film starlets on Oscar night?