Over 80% of the luxury businesses coming to the Principality of Monaco fail to capitalise their true potentials. Monaco is a niche market with the most millionaires per capita in the World. In this unique field of accomplished HNWI one event is not enough to close a deal. (There are a few exceptions.) Many brands organise fancy one night events, gourmet dinners, cocktail parties and presentations but in a country which offers over 700 official events per year and further 3.000 private events, a one night presentation will hardly make a difference.
The typical self justification: “Maybe we did not grew as we expected with this campaign, but at least we strengthen our brand name in the market.”
One of the major elements of the Luxury market is the desire. Simple putting a price tag on a product and shouting it around loudly is not enough. It is very important to remember that everyone can see the price of the product but not its value! To accomplish this you need time. The value has always been a relative concept, which is based on the personal judgement of the customer. The real luxury product has never an absolute value, a product is worth as much as the buyer is willing to pay for it in exchange.
Rule Nr 1.: Anything can be sold to someone if he wants it even though he does not need it, but nothing can be sold that he does not want even if he needs it. So how can you catch the desire of the people in Monaco?
Just as in any market understanding your target group is the key for prosperity. This is the very first step before you do any kind of events. There are always different types of buyers:
- some of them are only looking at the price
- some of them are looking for the best quality
- some of them are looking for the luxury or the prestige
- some of them are looking for long term guarantees
- some of them are looking for the added values
- some of them simply make their decisions based on your personality
Many-many different needs but you need to know and handle them and this is the main reason why it is difficult to cover various needs during a single event. Big mistake. In order to generate interest and convert is to actual sale, you need to aim for the long term game. Aim for the synergy of understanding, educating, pre-qualifying, presenting, following-up and sales closing. These steps are equally important in the road of success in Monaco. The price is only one factor and believe it or not, the price is not the most important one. Especially not in the Principality of Monaco where the average household has over 3 million Euro (and not to mention the wealth of the ultra-rich). In life and business one of the most important thing is communication. Communication should be two ways every time and to establish this you need time. Last week we talked about the Top 5 Mistakes in Monaco and on of them was the “Lack of time to build up relationships”.
Fact: 99% of opportunities are lost by wrong and bad implementation, these are the cases when the excuse becomes the idea.
The truth is that you can capitalize your potential by creating integrated marketing channels. And these does not need big investments. Just think about it, if result cannot be gained from a small budget then what kind of result can be expected from an increased budget? When you event or promotion fails people often say that your product was not ready. Well it is not necessarily true.
Rule Nr 2.: The truth is that even if you know your market area well, the market is in a continuous change.
Implementing brand promotion strategies in order to create value means fully understanding on the behaviour of the targeted market. The execution is the key and for this you need the right partners.
EXECUTIVE = latin Executor ex: fully sequi: monitored
In the luxury market to think outside the box is trying not to think of the obvious things, but trying to think beyond them and so bringing in something new, something unique. As we all know in many cases success relies only in one tiny thing. It is especially interesting that 70% of people working in the luxury marketing segment do not know what luxury truly is. It is almost a trend of today that everyone is competent in everything so that specialization has disappeared.
“When a company contacts me and asks how many subscribers… I know immediately I am dealing with someone that is not experienced in the elite end of the luxury sector! In Luxury Marketing it is about WHO, not How MANY. One person that can afford your product or service is more valuable than a million that cannot.” – says Lorre White, the Luxury Guru
Real luxury marketing is to catch the attention and build up the desire of your well-defined target group. Learning from this creating value in simple terms means creating products or services that people WANT! We need to show and teach the value of the product in all cases. You will achieve success when you will be able to build campaigns to gain benefits from the individual perspectives. One of the basic reason why people immediately turn down an offer is because they do not understand it’s message or they simply believe that you just one of the other 100 similar brands.
Do not fall for social media photos and fancy promises. Many events in Monaco attracting the socialite and not your target group. If you want to have an event which brings you visible results then invest also into the preparation. Take away your focus from the shining photos and the celebrities and start to focus on how can you attract your prospective clients. I bet the people only looking for free champagne and dinner is not your target group. If you want to be successful with your promotion in Monaco, you have to place your product or solution to the first place in the mind of your target group and this is a challenge in the luxury market.
Rule Nr 3.: The more comparable you are, the more boring you are in your market.
In order to achieve this you can always aim for the continuous presence and customer education. The PR, marketing and sales functions should never be mixed up. Although one does not exist without the other, it is necessary to separate them and to know which is responsible for what, what is the end result we expect from each of them. In the Principality of Monaco only those companies perform in the long term, which are not hunting for fast profit but for the long term prosperity using the well balanced combination of events and brand awareness promotions (not Instagram or Facebook likes).
“It takes more than just pretty pictures to reach the wealthiest demographic. It takes bringing them information that is relative to them by someone that they trust and that is why media sources hire me.” – says Lorre White, the Luxury Guru
With MonacoWealthManagement.com we can help you in this providing the right connections (9.000 members from Monaco), putting you together with the right local businesses and advisors and offering you continuous visual appearances and articles during the year in order to properly educate your target group regarding the values of your product, to reach your the recognition and the desire. Never forget that capitalization of your personal and business potential highly depends on your willingness to learn and improve. If you agree with all the above mentioned, then you will definitely consider the following as well: http://monacowealthmanagement.com/news/product/corporate-membership/
You might also find interesting our article series about the Top 5 Mistakes in Monaco: http://monacowealthmanagement.com/news/2017/04/05/top-5-mistakes-in-monaco-how-to-avoid-them-pt-15/ Also the book called: Living in Monaco: http://amzn.com/1496107004
If you like this page please spread the word about it: http://www.monacowealthmanagement.com/branding/luxury-101.phpTweet us Follow @monacowealth
#Luxury #marketing #brandawareness #desire #brandbuilding #hnwi #MWM #MonacoWealthManagement #Monaco #MonteCarlo