Literature Review on "Effects of Luxury Fashion From Swarovski Toward Social Identity"

Literature Review 17 pages (5498 words) Sources: 25 Style: Harvard

[EXCERPT] . . . .

luxury fashion of Swarovski toward social identity.

The review of the literatures presents "the effects of luxury fashion from Swarovski toward social identity." The paper reviews the literatures to provide greater understanding of the "experiential marketing for fashion jewellery, emotional brand attachment and brand personality and social media and cultural influences." The literatures identify that Swarovski is facing competition within the global market environment due to the influx of cheap fashion jewelry product from China . Thus, the company needs to design effective marketing promotion to differentiate its product as well as enhancing competitive market advantage.

Swarovski Overview

Swarovski is a global company that specializes in designing fashion jewelry and the company uses the supreme mastery to design and produce fashion products such as stones and genuine gemstones. The company uses creativity and ingenuity to produce high quality and creative products, and integrates its creativity and ingenuity in producing fashion, lighting and interior design products. The company has different brands, which include Swarovski ELEMENTS, Swarovski CRYSTALIZED, Swarovski ENLIGHTENED and Swarovski OPTIK. (Swarovski 2010). While the company has achieved success with its brands, the company has faced biggest challenges with the current global market competitions. A successful global marketing campaign such as experiential marketing is a strategy that Swarovski could employ to achieve competitive market advantages.

Experiential Marketing for Fashion Jewelry

In the contemporary business environment, there are difference between traditional marketing and experiential marketing. While traditional marketers view consumer as rational decision-makers who are interested in the benefits and functional features of product and services, experiential marketing views consumers as emotional and rational human being interested in achieving pleasurable experiences. Schmitt (2010) argues that marketers use five different methods to create customer's pleasurable experiences:

SENSE (sensory experiences),

FEEL ( affective experiences),

THINK (creative cognitive experiences),

ACT (physical experiences, lifestyles and behaviours)

RELATE (social-identity experiences resulting from relating to a culture or group reference).

The SENSE marketing involves the objective of creating sensory experiences such as sound, taste, touch, and smell and SENSE marketing is used to differentiate products, and company. It could also be used to add value to products and motivate customers through excitement and aesthetics. On the other hand, FEEL marketing is used to appeal to customer's inner feelings and emotions with the aims of creating affective experiences with mildly positive moods linked to a brand. Typically, the objective of FEEL marketing is to trigger certain customer's emotion in order to engage in empathy and perspective taking. THINK marketing appeals to the intellectual aspect of consumer with objective of creating problem-solving, cognitive experiences as well as engaging customers creatively. The objective of ACT marketing is to enrich customer live and physical experiences as well as showing them alternative ways of doing things while RELATE marketing contains aspects of FEEL, SENSE, ACT, and THINK. The RELATE campaign aims to appeal to individual's self-improvement. (Schmitt, 2010).

The experiential marketing is used to demonstrate consumer experience through electronic media, product presence, and communications, visual and verbal identity. The experiential marketing provides the sensory, cognitive, emotional, relational values, which replaces functional values. The ultimate goal of experiential marketing is to integrate consumer experiences into a holistic form. Typically, organizations are gradually moving away from the traditional form of marketing in order to create experience for customer and the shift towards experimental marketing has been due to the following simultaneous development:

Development of Information Technology

Supremacy of brand

Ubiquity of Entertainment and Communications. (British Columbia Institute of Technology, 2003).

In the contemporary marketing environment, special focus has been employed in the marketing of fashion jewelry since it contains special features different from other products. Fashion jewelry consists of fashion accessories used for personal adornment and fashion jewelry consists of bracelets & bangles bracelets, synthetic gem stones, necklaces, earrings, cuff links, and rings. (Swarovski, 2010). While there are many companies specializing in designing and the production of fashion jewelry, Swarovski is among the top companies specializing in designing and production of authentic fashion jewelry. Swarovski is known globally for its design and production of incredible diverse range of precision-cut crystal making Swarovski brand to be unmistakeable within the fashion jewelry industry. Swarovski brand characteristics are reflected within the facets of a crystal making all the company products to meet the highest levels of quality. The company stands for perfection and precision because of its inventory and creativity. Swarovski's principle stands for fashion and decor. The company is also a technology leader in the area of fashion business and the company designs and produces crystal to meet the expectation of customer. To develop the unique fashion jewelry for customer, Swarovski focuses on innovation because the company believes that innovation is the method that the company could use to enhance competitive advantages. The innovative strategy that Swarovski employs to design its product has made the company to achieve market advantages for its brands.

Over the years, Swarovski believes in adding value to its brands through active promotion & marketing and the company designs different unique style of products to achieve market advantages. Swarovski ELEMENTS is a premium brand revealing the finest crystal elements. For more than a century, the company uses mastery in cutting, and high-quality craftsmanship to produce brilliant high light-filled crystals of breath-taking value. Swarovski ELEMENTS is known for its crystal's versatility and creativity, and the company uses Swarovski ELEMENTS to express creativity and ingenuity to display a unique creation and glittering crystal. The company labels Swarovski ELEMENTS with "MADE WITH SWAROVSKI ELEMENTS" to reveal the certificate of authenticity and genuineness of the product. Typically, Swarovski sells its jewelry within the fashion arena under the Swarovski ELEMENTS and Swarovski ELEMENTS consists of loose crystal and crystalline semi-finished products that the company has inspired into fashion, jewelry and accessories. (Swarovski, 2012).

Swarovski CRYSTALLIZED is another Swarovski's brand that is unique for fashion jewelry "made with genuine crystal that imparts radiance and cluster, the authenticity of each piece is guaranteed by the 'Made with Swarovski ELEMENTS' label." (Swarovski, 2012 P1). Swarovski crystals have a cornerstone for the company brand because the company has integrated innovation to pursue excellence.

Report by Rhinestone (2012) reveals that Swarovski CRYSTALLIZED illuminates corners of fashion around the world and it consists of the elements that captivates piece of jewelry into something very special and intimate. The company produces individuality CRYSTALLIZED and variety CRYSTALLIZED that are available in different shapes, sizes, cuts, colors, and effects. The assortment consists of classic gemstone cuts as well as refined crystal colors which stand for excellence and jewelry durability and fashion pieces. The Swarovski CRYSTALLIZED has revolutionized the Swarovski's business to the extent that Swarovski group recorded 2.2 billion Euros in the crystal business turnover at the end 2011 fiscal years, while the whole group recorded 2.87 billion Euros in 2011.

While Swarovski has built unique brands to enhance competitive advantages, the intense competitions that the company is facing serve as challenges for the company brands to win market shares. The cheap fashion jewelry from China serves as challenges to the company market shares. The report from JewelleryWorld (2011) reveals that there are numerous cheap bracelets with a diamond ring and 18 carat gold necklace from China. The rising in popularity of such fashion jewelry is due to the technique that has been used to produce such items. Typically, China is known as the largest producer of counterfeit products, and based on the challenges facing Swarovski within the contemporary market environment; the company needs to design effective marketing and promotion campaign to differentiate its unique brands from the competitors in order to achieve market advantages.

Atwal and Williams (2009) argue that experiential marketing has become a cornerstone for the marketing and promotion of luxury goods such as fashion jewelry. Typically, traditional marketing strategies have increasingly faced challenges in conveying image of product's quality as well as the performances' and authenticity of the products. To enhance marketing advantages for products, marketers have designed marketing devices to sell a pleasurable experience to customers. Typically, the features of fashion jewelry makes marketing and promotion strategy of fashion jewelry to be different from the marketing method implemented for other sectors.

To enhance market advantages for products to enhance customer pleasurable, academicians and practitioners have devised frameworks to develop experiential marketing. Smith (2003) provides the five-step process for the implementation of experiential marketing strategies. The first step is to evaluate and assess the current brand's experience. The second step is to define a clear brand-positioning statement while the third step is to design the brand's experience. This involves the alignment of the brand's products, processes and people against the brand's proposition. The fourth step is to communicate the brand externally and internally, while the final step is to monitor performance to ensure that the brand is delivering the marketing objectives.

Hogan et al. (2004) also develop four principles of experiential marketing to enhance memorable experience. The first step is to identify key customer segments and the trends towards democratisation of luxury goods have changed the consumption pattern. The evaluation… READ MORE

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