Hermes Marketing Strategy

VI. Recommended Strategy for Luxury Brand Development and Growth

Hermes is brand that still has growth potential given that the revenues of the company increase each year. A strategy that could help the brand to achieve growth and development is the brand extension/brand stretching strategy. Being a luxury brand, a lot of promotions may not be necessary so as to maintain the exclusivity. However, brand extension can help to leverage the Hermes brand image to include even more items that may attract new segments of customers who are among the effluent individuals in the society, for example, the company could introduce other products to include items that are preferred by the younger individuals. This could help attract young customers who

The first one will be to build customer awareness. Due to the competitive environment, the consumers need to be informed about the distinguishing innovations made in the brand. As a result, they will be able to prioritize the products over similar ones from the competitors (Hoyle,2012). Additionally, increasing the demand for the products require a solid plan to acquire new customers and increase sales among the current ones. Therefore, creating customer awareness is crucial since it will make the consumers aware of the reason they should buy Hermes's product, their benefits, and how they will use them. Secondly, the event will be targeting to improve the strength of the brand to the consumers. A strong brand will have several benefits. For instance, it will be easier to introduce new products. Whenever the brand is strong, the customers will become loyal and hence they will always be interested with the new products (Zarantonello & Schmitt, 2013). In like manner, it will create a competitive advantage because the customers will have backed it. Essentially, this will help the company to thrive in the competitive market. A strong brand will also enhance its credibility and make it easy to purchase. Usually, the customers prefer buying from a company they know, and trust, and like to the unfamiliar

After all activities, the event will be closed at 6.00 pm.

The marketing event is expected to cost the company 500000 euroswhile the promotions are expected to total up to 200000 euros. In this amount, there is the venue charges and the chefs payments for their luxurious meals.

c) WHEN?

It will be held on 9th June 2018 from 7.00 am to 6.00 pm. This date is the best because it will be just after the end month when the employees, our major customers, will have their salaries and therefore they can budget for the event. Furthermore, there is no other events scheduled to take place on the same day which means all the focus will be on the Hermes's Luxury Brand Event. (changer car ces client n'attendent pas leur paie pour s'offrir du hermès)

d) WHERE?

The event will be held in France, Paris. The reason for choosing Paris is due to its prominence in Europe and the whole world. In addition, people living in Paris are known to be economically stable and therefore the right target for the brand (Kushcheva & Tuononen, 2013). 5capitale de la mode, fabrique en France, savoir fair) Security is also among the factors that led to the conclusion that Paris is actually the most strategic position for the