American Luxury Brand Case Studies Essay

Arrowood Times ar not promising for b offique American boozeries, with many closing, p deplorableing under their fields, or sell out to larger interests who have the resources to survive the down market. The worldwide glut of wine grapes from a succession of bumper harvests, increase competition from bottom tier and spurn cost imports (among them Chile, Australia and South Africa) has California in a tailspin. There is too a Californian producer nicknamed Two Buck Chuck selling wines at US-3/bottle, 10 million bottles sold in the USA so far this year alone.An another(prenominal) indicator is the fall in petition for thoroughgoing produce. During the boom years, consumers were prepared to pay aid prices for certified organic fruits and vegetables. Only the most efficient and well-managed farms will survive the collapse of that divide of market, which also supplies grapes to the organic winemakers. Arrowood typifies the small boutique Sonoma winery in origin 15 years, their name made on well-regarded wines in low contrast from a beautiful state-of-the-art facility. The imperfection is unceasingly fully offer for its yearly limited edition bottlings.The company cannot surr closureer its premium sealing wax by backing off on pricing, which begins at /bottle from the winery, higher(prenominal) at retail. Two years ago Arrowood unsuccessfully assay to built in bed high-end Syrah as a sensitive trend, charging prices comparable to high-end Cabernets. The public was not so easily convinced. Demand is down for their commercial fruition, and straightaway they have arsenal of Syrahs, which cant be offered at less than originally asked, without devaluing the pock. stovepipe & Co. Best & Co., originally a multi-storied department keep on set about Fifth Avenue, New York City, stayed in ancestry for nearly a degree Celsius before closing its doors in the 1960s. Oriented exclusively for c hildren, Best re soak uped deuce years ago under the new stewardship of Susie Hilfiger. The legacy vane was renowned for its graceful gauge merchandise and exceptional customer service, founded upon the idea that children are important. Hilfiger opened a Connecticut store, resurrecting the original logos and interior design, and after added a high-end boutique in Bergdorf Goodmans Manhattan location.In addition, the company has some(prenominal) online and catalog channels for offering their first-rate line of house suckers and imports. Blackglama This Seattle-based fur cooperative established its score with the highly regarded What Becomes a Legend approximately? function, almost thirty years ago. A spinoff of the parent brand named American Legend Mink, Blackglama created its brand scholarship by associations with individualisedities of planetary stature, among them Callas, Dietrich, Garbo, Hepburn, Loren and Pavarotti, captured in nice bla ck and white photography.Since 2002 the brand has reinforced its franchise with the relaunch of its classic campaign featuring an international supermodel. Throughout its brand life, Blackglama has been uncompromising in price, sophistication and forest, ceaselessly berth to the top tier. A true American lavishness brand. Cadillac Cadillac Motors, which subsequently became a segmentation of General Motors, dates from the early days of mass-produced automobiles. It is the oldest surviving American extravagance automobile 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 support market share in the 70s with increased competition from cut acrosss Lincoln division, and the introduction of other highlife vehicles primarily of lacquerese manufacture- who mark eted to a younger, newly-affluent demographic. Cadillac unsuccessfully responded by attempting a downsized model, Cimarron, 1982-88, driving brand perception lower.Today, Cadillac is perceive as retirees car, while it retains some small fragment of the limousine business. A partnership with Pininfarina 1987-1993 produced a visionary prototype, Alante, intended to fence with the Mercedes SL. Cadillac launched the Escalade, a hybrid SUV in 2000. In todays hyper-competitive milieu with a climate of weakened sales on all fronts, the nimbus days of a top-tier luxury brand seem to be history. In an attempt to recapture the magic, this summer Cadillac growd a ,000 limited- resultion 2-seat sportscar, the XLR. Callaway Clubs This manufacturer of high end golf clubs since 1982 has a reputation as the best in the business. They scored a major production success story in the 1990s with their tactile sensation top-of-the-line Big Bertha titanium driver, a techn ological innovation which transformed the spicy through its distance-enhancing features. They continue to expand their line of clubs, but low-end brand extensions much(prenominal) as active wear, luggage and footwear prevent Callaway from reaching the highest luxury tier. Harley-Davidson The iconic American motorcycle sustains a proud history, enduring product quality and a high price header. In the face of increased competition in 1987, Harley sent a management team to Japan to learn about superior production techniques. Todays median value customer is 55 years old, a buyer who recognizes that the brand personifies the turn sensibilities, romance of the open road, and the American Dream of unbridled freedom. However, numerous brand extensions and licenses, many of them downmarket, i. e. cigarettes and clocks, have kept Harley in the middle levels of the luxury syndicate. Hamilton An American checkermaker, founded in 1892 in Lancaster, PA, re alizen for innovative case design and watch technology. Hamilton today is a member 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 payable designs and a high historical profile, including introducing Pulsar, the worlds first digital watch, suggest a brand occasionally skirting the luxury franchise. fastball 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 ghost icon vehicle, with some cachet habituated to its 0,000 price tag. It has since become the Rapper car of choice, and a popular shape vehicle.After unexpected mark et demand, Hummer an Indiana-based division of GM- recently introduced both low-cost, downsized models in the ,000 range, thus moving the brand below its prior style as premium luxury. Hyatt An interesting attempt in progress to innovate the luxury lodging space in Europe. Hyatts new five-star special K Hyatt Paris-Vendome hotel hopes to compete with properties such as the Ritz, Georges V, and Au Duc de Lorraine. They break from the tradition of Belle Epoque style, relying on ultramodern design, younger rung, while continuing to emphasize first-class service.Its a brave undertaking, what with their existing perception as a middle-level American cordial reception 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, copyrighted line of skin care products. The company has built some di spersal at other retail outlets. Brand image relies on generic wine style packaging and no publicise, a high service and felicity proposition, product integrity 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 interest in the enciphertainment 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 readiness 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 fleets 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 stand-in, 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 hugger-mugger jet transportation category, with the largest market share, over fifty percent worldwide.NetJets sells partial(p) or full shares in new jet self-will to corporal clients and individuals with a high net worth of million or to a greater extent. The business model is a unique one, with a number of avenues for tax advantage, an d with a system of buyback and plan conversion guarantees starting at the low end for about 5,000 per year. NetJets is wholly owned by Berkshire Hathaway, whose boss rabbit warren Buffet was originally a satisfied NetJets customer. He eventually purchased the faultless company, and his deep pockets back the undertaking.NetJets dominates the category, with a fleet of over 450 new, luxurious aircraft of change capacities and distance capabilities, a sister company in Europe, in-house safety and didactics 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 aged aircraft and anaemic balance sheets. As a dodge 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 in song(predicate) in units as small as 0,000.The card has performed significan tly intermit than projected. The company markets itself as the utmost in safety, comfort and security, partnering with Ritz Carlton for service staff training, and the Mayo Clinic for on-demand medical resources. Advertising and brand messaging are sort of confused, delivering multiple concepts often at odds with each other. But advertising probably does not figure greatly in NetJets success. The most often heard challenge to their sales people concerns high cost an resolute and uncompromising pricing policy has stood the brand well.Plus, Buffets ownership is enough to convey the distinction and premium luxury prestige conferred by association with the worlds second richest man. Panavision This company has an unblemished 50 year reputation for providing the finest quality cameras and lenses for the motion picture industry. While not widely known to the general public, Panavisions reach is universal and international in the film community, regarded a s the best in its category. Ritz Carlton The respected hotel range of mountains 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 infield 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 lucky Standards, a highly refined 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 range 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 bo som of each property is our dedication to uncompromising quality and exemplary personal service. The winner of numerous industry and media awards, Rosewood has trophy properties in the USA, the Caribbean, Asia and the plaza 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, falls 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 soon added properties under the St. Regis brand name in nine other cities.The flagship NY property and its affiliates worldwide do reflect the highest standards of hospitality, and so far in their s hort history deserve the luxury designation. Technicolor The company rose to prominence providing the highest quality in picture 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 image 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 Comfort Tiffany further grew the brands prestige with breathtaking Art No uveau experimentations in lamps and glasswork.Robber barons relied on Tiffany for everything from fine china, leaded glass windows, bullion goods and engraved stationery to opulent gems. During his 30 year tenure, the legendary Jean Schlumberger added to the companys lustre with his beautiful and sophisticated jewelry, which combined brilliant craftsmanship and superior taste in materials. Tiffanys democratization began in the 1950s when Truman Capotes story, eat at Tiffanys turned the brand into a household word.As Schlumbergers career began to wane in the 1970s, Tiffanys classical enchant 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 complicate the licensing of designs by Paloma Picasso, whose family name carries the cachet of fine art but her designs for silver earrings brought bra nd 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 slightly south, with a faint memory of a company who once popularized the iconic allegory 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 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 great catering and events business, which gains international attention through its flagship event, the annual Governors Ball following the Oscar s and Wolfgang Puck Worldwide, Inc., the corporation that controls the Wolfgang Puck brand in areas as various(a) 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 fixed food products, his industrial-sized Las Vegas location and 75 fast food airport franchises see heavily on his former luxury cachet. He is no agelong luxury, simply 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 of import stones, its designs are no longer considered the most remarkable artistically, simply extravagant, perhaps a bit vulgar. Harry Winston Ultimate Timepieces, founded in 1998 and bas ed in Geneva, has introduced the new ,000 Opus One 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 corrupted or dragged downmarket by associations with rappers, celebrity athletes, Texan oil millionaires and luscious film starlets on Oscar night?