The course is designed to help students develop a deeper and more nuanced understanding of the multi-billion dollar market for luxury goods and services. With a framework for understanding the essential ingredients of effective marketing of luxury brands and services, the course helps students understand the demands and challenges for those seeking to become marketers in this sector of the economy. The course focuses on three main subject areas: the different sectors and activities of the luxury industries; the varying markets, both mature and emerging; and the future issues and perspectives in the sector as a whole. The course begins by providing an overview of luxury marketing and the sectors of the luxury industries as well as a framework for the rest of the course. The second section examines the various markets for luxury goods from a geographic perspective looking at both mature and developing markets. In addition, this section will investigate the particularities of each region including socio-cultural differences and business practices and how that impacts the luxury goods industries. The final section examines the issues and perspectives in the sector, such as how to effectively reach the luxury consumer through various media and the role of new media as well as the evolution of distribution.
Attendance policy:
Since IES Abroad courses are designed to take advantage of the unique contribution of the instructor and the lecture/discussion format is regarded as the primary mode of instruction, regular class attendance is mandatory. Tardiness of any sort on a repeated basis will be treated as absences over time. If a student shows a pattern if absences, in violation of this policy students may be subject to an Academic review including but not limited to a letter sent to their school and a probationary period or exclusion from the program. Each student may have no more than one absence in each course for whatever reason. Your final grade in the course will be reduced by one fraction of a grade (i.e. A becomes A -) after that.
Learning outcomes:
By the end of the course, students are able to:
Identify and understand the basic elements of effective luxury marketing;
Analyze and understand the characteristics of different segments of the luxury market;
Develop marketing strategies for luxury goods and services.
Method of presentation:
Combination of lecture and seminar format. Case studies pertinent to the local climate are also used regularly for a hands-on approach to the questions at hand. Field studies to appropriate locations are used to give students an opportunity to observe the industries including museums, appropriate companies and production areas (champagne, Silk, etc).
Required work and form of assessment:
Class attendance and participation (15%); written papers (30%); mid-term exam (25%); research project & presentation (30%)
Written Papers: Students are required to write two, 3-page papers. Each paper is worth 15% of the overall grade, for a total of 30%. Students may choose two of the following written paper topics:
Paper 1: Luxury industry clientele or Definitions and actors in the market
Paper 2: History of Parisian luxury and fashion or Chanel through time
Paper 3: A label throughout time or Brand diversification
Research project and presentation: Students are required to submit a 10-15 page paper. Students should select a French luxury goods/services firm and identify and critique the firm’s marketing strategy (who are the main competitors? How does your firm’s strategy differ from its competitors? Is it the same?). Complete a SWOT analysis of the current situation, and indicate recommendations to the firms CEO to improve their overall marketing. Include all elements of the marketing mix and examine customers and competitors.
content:
Luxury Industries: Different Sectors of Activity
Week 1
• Concepts, definitions and the evolution of luxury goods
• Principal actors of the market of luxury goods
Readings: Berry; Blanckaert
Different Sectors (size of the market, evolutions, actors and trends)
Week 2
Fashion and accessories
Readings: Forden; Boucher; Blomer
Case study: David Yoffie and Renne Kim. Gucci Group in 2009, Harvard Business School.
Week 3
• Perfume and cosmetics
• Jewelry and Watch making
• Visit of the Fragonard Perfume Museum
Week 4
• Wine and spirits
• Hotel and gastronomy
Paper #1 due
Case study: Corine Cohen, Monte Carlo SBM: From a Great Name to a Legendary Luxury Brand, University of Monaco.
Mature Markets and Emerging Markets for Luxury Goods
Specificities of each geographic zone (sociocultural differences, business practices differences, the impact on the luxury goods industries)
Week 5
An in-depth look at France’s place in the luxury goods market. Reading : Fauconnet
Case Study : Geoffrey Jones, Véronique Pouillard, Christian Dior, A new Look For Haute Couture, Harvard Business School, Oct. 26, 2009.
Week 6
• Mature Western Markets
• Europe
• The US
Readings: Silverstein; Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich by Robert Frank (Jun 5, 2007)
Paper #2 due
MIDTERM EXAM
Week 7
• New and old Asian Markets
• Japan
• China and Asia Pacific
Readings: Lu, PX Elite China: Luxury Consumer Behaviour in China, John Wiley and Sons 2008. Tsai J, La Chine et le luxe, Odile Jacob, 2008.
Case study: Luxury Industry in Emerging Markets (India and China), Prof. Som, ESSEC
Week 8
Russia and the Middle East
Branches, Issues and Perspectives in the Sector
Week 8
Luxury Brand Management: Strategy and Management of a Luxury Brand
Reading: Okonkwo
Case Study: LVMH Managing the Multi-Brand Conglomerate, Prof. Som, ESSEC.
Week 9
Role of new media’s in the sector
Week 10
Evolution of distribution: wholesale, retail, travel retail, e commerce
Reading: Crossing Fifth Avenue to Bergdorf Goodman: An Insiders Account of the Rise of Luxury Retailing; Ettenberg
Case study: Reddy, Terblanche, Pitt and Parent. How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension, Kelley School of Business.
Week 11
Counterfeiting and Luxury goods
o Readings: Robert Green and Tasman Smith, “Countering Brand Counterfeiters” in Journal of International Marketing, Vol. 10, No. 4 (2002), pp. 89-106; Gessler, Counterfeiting in the Luxury Industry: The True Costs of Counterfeit Goods, 2009.
WEEK 12
Careers in the Luxury Industry
Presentation Research papers in class
Required readings:
Berry, The Idea of Luxury, Cambridge University Press.
Blanckaert C, Luxe, Le Cherche Midi, 2007
Boucher F. 20,000 years of fashion, New York.
Chevalier, Michel and Gérald Mazzalovo, Luxury Brand Management : A World of Privilege, Wiley, 2008.
Ettenberg, Elliot. The Next Economy: Will You Know Where Your Customers Are? McGraw-Hill: 2003.
Forden S G, The House of Gucci: A Sensational Story of Murder, Madness, Glamour and Greed, Harper Paperbacks, 2002.
Green, Robert and Tasman Smith. “Countering Brand Counterfeiters” in Journal of International Marketing, Vol. 10, No. 4 (2002), pp. 89-106. Gessler, Counterfeiting in the Luxury Industry: The True Costs of Counterfeit Goods, 2009.
Fauconnet F et al. Les Boutiques à Paris, vitrines d’architectures, Picard, 2000.
Lu, PX Elite China: Luxury Consumer Behaviour in China, John Wiley and Sons 2008. Tsai J, La Chine et le luxe, Odile Jacob, 2008.
Neimark, I. Crossing Fifth Avenue to Bergdorf Goodman: An Insider’s Account of the Rise of Luxury Retailing.
Neimark Specialist Press International, 2007.
Okonkwo, U. Luxury Fashion Branding Palgrave Macmillan. 2008.
Silverstein, Michael. Trading Up: The New American Luxury, Penguin Group.
Thomas, Dana. Deluxe: How Luxury Lost Its Luster. 2007.
Recommended readings:
Adburgham A, Shops & Shopping, George Allen, London.
Allérès D, Mellerio O, Luxe… : Stratégie, Marketing, Economica, 2005
Assouly O, Le Luxe : Essais sur la fabrique de l’ostentation (préface de Pierre Bergé), IFM, 2005.
Barnes R, Mod’s!, Eel Pie, London.
Baudrillard, Histoire du luxe privé et public, depuis l'antiquité jusqu'à nos jours, Hachette.
Bourdieu P, La distinction”, Edition de Minuit, 1979.
Braybrook D, Meeting needs, Princeton University Press.
Brenner B F, Plugging into women, Washington Business Press.
Bronner S J, Consuming Vision, Norton NY.
Charles-Roux E, L’irrégulière ou mon itinéraire Chanel, Le Grand Livre, 1974
Chevalier M, Mazzalovo G, Luwury Brand Management, 2008.
Crawford M, The world in a shopping Mall, Hill & Wang NY.
Dalbey E, Measuring on line branding impact.
Deaton A, Economics and Consumer Behaviour, Cambridge University Press.
Douglas M, The world of goods, Allen Lane London. 49. Doyal L, A theory of Human needs, Critical Social Policy.
Fraser K, The fashionable Mind, New York Knopf.
Fournier S, Consumer and their brands, Consumer research book.
Robert H. Frank, Luxury Fever, The Free Press.
Frankfurt H G, Necessity and Desire, Phenomenological research.
Fraser W H, The coming of the mass market, Macmillan.
Fry J, what’s in store, Wall street journal.
Galbraith j k, The affluent society, Penguin Books.
Garland M The history of fashion, Orbis London.
Gladwell M, The science of shopping, The New Yorker.
Gobé M, Emotional Branding, Business Design Press.
Goleman D, Emotional Intelligence, Bantam Book.
Goleman D, Working with the Emotional Intelligence, Bantam Book.
Gosling J C B, Pleasure and desire, Oxford Press.
Griffin J, Life of luxury, journal of Roman Studies.
Grumbach D, Histoire de la Mode, éditions du Regard, 2008.
Guss L, Targeting Woman, Supermarket Business.
Heskett J, Industrial design, Rusconi, Milano. Hollander A, Seeing through clothes, Penguin Book.
Holbrook M, The experiential aspect of consumption, Volume of consumer research
Hume D, “Of refinement in the arts”, Essays, moral, political and literary, Liberty Fund, Indianapolis, 1985.
Kybalova L, The Pictorial Encyclopedia of fashion, London.
Kyrk H, A theory of consumption, Arno Press NY.
Lancaster K, Consumer demand, Columbia University Press.
Lannelongue M P, La mode racontée à ceux qui la portent, Hachette Littérature, 2003
Leiss B, The limits to satisfaction, Maryon Boyard.
Lipovestsky G, Roux, E, Le Luxe éternel : de l’âge du sacré au temps des marques, Gallimard, 2003.
Longinotti Buitoni G L, Selling dreams : how to make any products irresistible, Simon & Schuster, 2000.
Lu P X, Elite China : Luxury Consumer Behavior in China, John Wiley & Sons, 2008
Lury C, Consumer Culture, Cambridge.
Madsen A, Chanel, De Agostini
Okonkwo U, Luxury Fashion Branding, Palgrave Macmillan, 2008
Pine J, Mass Customization, Harvard Business School
Polhemus T, Procter L, Fashion and Anti-Fashion, Thames And Hudson
Frederich F. Reicheld: The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value.
Rooks J, Showing off in America: conspicuous consumption, Little, Brown&Company
Routier A, L'Ange exterminateur, Albin Michel
Thomas J. Stanley, Marketing to the Affluent; Selling to the Affluent; Networking with the Affluent and Their Advisors; The Millionaire Next Door; The Millionaire Mind
Sekora J. Luxury: the concept in western thought, Hopkins University press
Schmitt B, Simmons A. Strategic managements of brands, identity and image, NY Free Press
Schmitt B. Experiential marketing. New York Free Press
Schmitt B, Simmons A. Marketing Aesthetics. New York Free Press
Shields R. The logic of the Mall. Routledge, NY
Strugnell A. Diderot on Luxury, Commerce and Merchant. Voltaire Studies
Thomas D, Luxe & Co : comment les marques ont tué le luxe, traduction Olivier. Colette, édition les Arènes, 2008.
Tomlinson A. Consumption, Identity and Style. Routledge, NY.
James, B. Twitchell. Living It Up: Our Love Affair With Luxury. Columbia University Press
Underhill, P, Why we buy : The science of Shopping, Simmons. Williams, R H. Dream Worlds. University of California Press.
Professional magazines such as Womens Wear Daily, Luxury Briefing, La Lettre du Luxe, Journal du Textile as well as “grand public” Vogue, Elle, Flair, IHT, New York Times Style Magazine, W, Financial Times
Web sites abc-luxe, style.com, fashionmagazine.com
The course is designed to help students develop a deeper and more nuanced understanding of the multi-billion dollar market for luxury goods and services. With a framework for understanding the essential ingredients of effective marketing of luxury brands and services, the course helps students understand the demands and challenges for those seeking to become marketers in this sector of the economy. The course focuses on three main subject areas: the different sectors and activities of the luxury industries; the varying markets, both mature and emerging; and the future issues and perspectives in the sector as a whole. The course begins by providing an overview of luxury marketing and the sectors of the luxury industries as well as a framework for the rest of the course. The second section examines the various markets for luxury goods from a geographic perspective looking at both mature and developing markets. In addition, this section will investigate the particularities of each region including socio-cultural differences and business practices and how that impacts the luxury goods industries. The final section examines the issues and perspectives in the sector, such as how to effectively reach the luxury consumer through various media and the role of new media as well as the evolution of distribution.
Since IES Abroad courses are designed to take advantage of the unique contribution of the instructor and the lecture/discussion format is regarded as the primary mode of instruction, regular class attendance is mandatory. Tardiness of any sort on a repeated basis will be treated as absences over time. If a student shows a pattern if absences, in violation of this policy students may be subject to an Academic review including but not limited to a letter sent to their school and a probationary period or exclusion from the program. Each student may have no more than one absence in each course for whatever reason. Your final grade in the course will be reduced by one fraction of a grade (i.e. A becomes A -) after that.
By the end of the course, students are able to:
Combination of lecture and seminar format. Case studies pertinent to the local climate are also used regularly for a hands-on approach to the questions at hand. Field studies to appropriate locations are used to give students an opportunity to observe the industries including museums, appropriate companies and production areas (champagne, Silk, etc).
Class attendance and participation (15%); written papers (30%); mid-term exam (25%); research project & presentation (30%)
Written Papers: Students are required to write two, 3-page papers. Each paper is worth 15% of the overall grade, for a total of 30%. Students may choose two of the following written paper topics:
Paper 1: Luxury industry clientele or Definitions and actors in the market
Paper 2: History of Parisian luxury and fashion or Chanel through time
Paper 3: A label throughout time or Brand diversification
Research project and presentation: Students are required to submit a 10-15 page paper. Students should select a French luxury goods/services firm and identify and critique the firm’s marketing strategy (who are the main competitors? How does your firm’s strategy differ from its competitors? Is it the same?). Complete a SWOT analysis of the current situation, and indicate recommendations to the firms CEO to improve their overall marketing. Include all elements of the marketing mix and examine customers and competitors.
Luxury Industries: Different Sectors of Activity
Week 1
• Concepts, definitions and the evolution of luxury goods
• Principal actors of the market of luxury goods
Readings: Berry; Blanckaert
Different Sectors (size of the market, evolutions, actors and trends)
Week 2
Fashion and accessories
Readings: Forden; Boucher; Blomer
Case study: David Yoffie and Renne Kim. Gucci Group in 2009, Harvard Business School.
Week 3
• Perfume and cosmetics
• Jewelry and Watch making
• Visit of the Fragonard Perfume Museum
Week 4
• Wine and spirits
• Hotel and gastronomy
Paper #1 due
Case study: Corine Cohen, Monte Carlo SBM: From a Great Name to a Legendary Luxury Brand, University of Monaco.
Mature Markets and Emerging Markets for Luxury Goods
Specificities of each geographic zone (sociocultural differences, business practices differences, the impact on the luxury goods industries)
Week 5
An in-depth look at France’s place in the luxury goods market. Reading : Fauconnet
Case Study : Geoffrey Jones, Véronique Pouillard, Christian Dior, A new Look For Haute Couture, Harvard Business School, Oct. 26, 2009.
Week 6
• Mature Western Markets
• Europe
• The US
Readings: Silverstein; Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich by Robert Frank (Jun 5, 2007)
Paper #2 due
MIDTERM EXAM
Week 7
• New and old Asian Markets
• Japan
• China and Asia Pacific
Readings: Lu, PX Elite China: Luxury Consumer Behaviour in China, John Wiley and Sons 2008. Tsai J, La Chine et le luxe, Odile Jacob, 2008.
Case study: Luxury Industry in Emerging Markets (India and China), Prof. Som, ESSEC
Week 8
Russia and the Middle East
Branches, Issues and Perspectives in the Sector
Week 8
Luxury Brand Management: Strategy and Management of a Luxury Brand
Reading: Okonkwo
Case Study: LVMH Managing the Multi-Brand Conglomerate, Prof. Som, ESSEC.
Week 9
Role of new media’s in the sector
Week 10
Evolution of distribution: wholesale, retail, travel retail, e commerce
Reading: Crossing Fifth Avenue to Bergdorf Goodman: An Insiders Account of the Rise of Luxury Retailing; Ettenberg
Case study: Reddy, Terblanche, Pitt and Parent. How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension, Kelley School of Business.
Week 11
Counterfeiting and Luxury goods
o Readings: Robert Green and Tasman Smith, “Countering Brand Counterfeiters” in Journal of International Marketing, Vol. 10, No. 4 (2002), pp. 89-106; Gessler, Counterfeiting in the Luxury Industry: The True Costs of Counterfeit Goods, 2009.
WEEK 12
Careers in the Luxury Industry
Presentation Research papers in class
Berry, The Idea of Luxury, Cambridge University Press.
Blanckaert C, Luxe, Le Cherche Midi, 2007
Boucher F. 20,000 years of fashion, New York.
Chevalier, Michel and Gérald Mazzalovo, Luxury Brand Management : A World of Privilege, Wiley, 2008.
Ettenberg, Elliot. The Next Economy: Will You Know Where Your Customers Are? McGraw-Hill: 2003.
Forden S G, The House of Gucci: A Sensational Story of Murder, Madness, Glamour and Greed, Harper Paperbacks, 2002.
Green, Robert and Tasman Smith. “Countering Brand Counterfeiters” in Journal of International Marketing, Vol. 10, No. 4 (2002), pp. 89-106. Gessler, Counterfeiting in the Luxury Industry: The True Costs of Counterfeit Goods, 2009.
Fauconnet F et al. Les Boutiques à Paris, vitrines d’architectures, Picard, 2000.
Lu, PX Elite China: Luxury Consumer Behaviour in China, John Wiley and Sons 2008. Tsai J, La Chine et le luxe, Odile Jacob, 2008.
Neimark, I. Crossing Fifth Avenue to Bergdorf Goodman: An Insider’s Account of the Rise of Luxury Retailing.
Neimark Specialist Press International, 2007.
Okonkwo, U. Luxury Fashion Branding Palgrave Macmillan. 2008.
Silverstein, Michael. Trading Up: The New American Luxury, Penguin Group.
Thomas, Dana. Deluxe: How Luxury Lost Its Luster. 2007.
Adburgham A, Shops & Shopping, George Allen, London.
Allérès D, Mellerio O, Luxe… : Stratégie, Marketing, Economica, 2005
Assouly O, Le Luxe : Essais sur la fabrique de l’ostentation (préface de Pierre Bergé), IFM, 2005.
Barnes R, Mod’s!, Eel Pie, London.
Baudrillard, Histoire du luxe privé et public, depuis l'antiquité jusqu'à nos jours, Hachette.
Bourdieu P, La distinction”, Edition de Minuit, 1979.
Braybrook D, Meeting needs, Princeton University Press.
Brenner B F, Plugging into women, Washington Business Press.
Bronner S J, Consuming Vision, Norton NY.
Charles-Roux E, L’irrégulière ou mon itinéraire Chanel, Le Grand Livre, 1974
Chevalier M, Mazzalovo G, Luwury Brand Management, 2008.
Cheverton P, Understanding brands, Kogan Page, 2006.
Crawford M, The world in a shopping Mall, Hill & Wang NY.
Dalbey E, Measuring on line branding impact.
Deaton A, Economics and Consumer Behaviour, Cambridge University Press.
Douglas M, The world of goods, Allen Lane London. 49. Doyal L, A theory of Human needs, Critical Social Policy.
Fraser K, The fashionable Mind, New York Knopf.
Fournier S, Consumer and their brands, Consumer research book.
Robert H. Frank, Luxury Fever, The Free Press.
Frankfurt H G, Necessity and Desire, Phenomenological research.
Fraser W H, The coming of the mass market, Macmillan.
Fry J, what’s in store, Wall street journal.
Galbraith j k, The affluent society, Penguin Books.
Garland M The history of fashion, Orbis London.
Gladwell M, The science of shopping, The New Yorker.
Gobé M, Emotional Branding, Business Design Press.
Goleman D, Emotional Intelligence, Bantam Book.
Goleman D, Working with the Emotional Intelligence, Bantam Book.
Gosling J C B, Pleasure and desire, Oxford Press.
Griffin J, Life of luxury, journal of Roman Studies.
Grumbach D, Histoire de la Mode, éditions du Regard, 2008.
Guss L, Targeting Woman, Supermarket Business.
Heskett J, Industrial design, Rusconi, Milano. Hollander A, Seeing through clothes, Penguin Book.
Holbrook M, The experiential aspect of consumption, Volume of consumer research
Hume D, “Of refinement in the arts”, Essays, moral, political and literary, Liberty Fund, Indianapolis, 1985.
Kybalova L, The Pictorial Encyclopedia of fashion, London.
Kyrk H, A theory of consumption, Arno Press NY.
Lancaster K, Consumer demand, Columbia University Press.
Lannelongue M P, La mode racontée à ceux qui la portent, Hachette Littérature, 2003
Leiss B, The limits to satisfaction, Maryon Boyard.
Lipovestsky G, Roux, E, Le Luxe éternel : de l’âge du sacré au temps des marques, Gallimard, 2003.
Longinotti Buitoni G L, Selling dreams : how to make any products irresistible, Simon & Schuster, 2000.
Lu P X, Elite China : Luxury Consumer Behavior in China, John Wiley & Sons, 2008
Lury C, Consumer Culture, Cambridge.
Madsen A, Chanel, De Agostini
Okonkwo U, Luxury Fashion Branding, Palgrave Macmillan, 2008
Pine J, Mass Customization, Harvard Business School
Polhemus T, Procter L, Fashion and Anti-Fashion, Thames And Hudson
Frederich F. Reicheld: The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value.
Rooks J, Showing off in America: conspicuous consumption, Little, Brown&Company
Routier A, L'Ange exterminateur, Albin Michel
Thomas J. Stanley, Marketing to the Affluent; Selling to the Affluent; Networking with the Affluent and Their Advisors; The Millionaire Next Door; The Millionaire Mind
Sekora J. Luxury: the concept in western thought, Hopkins University press
Schmitt B, Simmons A. Strategic managements of brands, identity and image, NY Free Press
Schmitt B. Experiential marketing. New York Free Press
Schmitt B, Simmons A. Marketing Aesthetics. New York Free Press
Shields R. The logic of the Mall. Routledge, NY
Strugnell A. Diderot on Luxury, Commerce and Merchant. Voltaire Studies
Thomas D, Luxe & Co : comment les marques ont tué le luxe, traduction Olivier. Colette, édition les Arènes, 2008.
Tomlinson A. Consumption, Identity and Style. Routledge, NY.
James, B. Twitchell. Living It Up: Our Love Affair With Luxury. Columbia University Press
Underhill, P, Why we buy : The science of Shopping, Simmons. Williams, R H. Dream Worlds. University of California Press.
Professional magazines such as Womens Wear Daily, Luxury Briefing, La Lettre du Luxe, Journal du Textile as well as “grand public” Vogue, Elle, Flair, IHT, New York Times Style Magazine, W, Financial Times
Web sites abc-luxe, style.com, fashionmagazine.com