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Luxury Brands Turn to Direct Marketing

While luxury brands usually promote a glamorous lifestyle through fancy advertisements in high-end magazines, Marketing Week reports some are starting to communicate with the consumer more personally through direct marketing.

One example is the car company Land Rover who designed a campaign to specifically target customers whose vehicle was a few years old and who might be looking to upgrade. The company had celebrities critique the vehicles, and the direct marketing campaign emphasized the importance of the consumers' opinion.

According to the Wall Street Journal, Ford Motor Company is redesigning its Lincoln campaign to appeal directly to technology-loving, upscale consumers to help save the flailing Lincoln brand. The campaign will be much more customer-focused, by incorporating the consumer's personal experience with the car.
"Lincoln will give (customers) opportunities to tell a story about what is unique in their vehicle," Derrick Kuzak, Ford's head of global product development, told the Wall Street Journal.

Marketing Week cited other examples of luxury brands using direct marketing including Tiffany and auction house Sotheby's who each send out catalogues to their customers, and Sotheby's offers online bidding as well.

For smaller brands, direct marketing might be crucial to building customer relationships. Luxury leather goods manufacturer Ettinger sells on its website, sends out a newsletter six times a year, co-brands leather goods for Bentley and is working on a new database of customers so they can send out direct, yet refined, messages.

According to Marketing Week, Land Rover's 2010 new vehicle campaign had an 8.6 percent response rate averaging 174 more vehicles sold per month, and the estimated value of the luxury goods market by 2025 is $1 trillion.  

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