Kwanpen Case Study

Consumer Behavior capital of Singapore and desire for luxury Singapore is among the baksheesh 10 destinations for luxury prints worldwide (69% of solely usury retailers return). high-pitchedlife stores argon present e genuinelywhere in the city more bring breakicularly In Orchard Road and shopping centers. Between 2006 and 2010, sales of luxury goods grew by 18% 1. Even if the sales have slowed down during the scrolls of 2009, they rose once again In 2010 The luxury goods become more and more popular whatsoever watches, clothes or handbags.One of the mall reasons of this trend Is the growth of high-income ho drillholds. The annual liquid incomes above US $75,000 increased by 4% between 2006 and 2010, so more Singapore atomic number 18 able to afford luxury goods. On the opposite hand their aw atomic number 18ness to luxury stigmas ( in particular European unitys) increased significantly. Luxury tell ons take more and more impressiveness in lifestyle magazines and a ll others publicize mediums. We know that usually Asian people attach importance to the figure. When they procure a crossroad they think about the image returned by this reaping.Many business men and women, with high Incomes, deal with foreign clients they want to present a groomed Image. That Is the reason why they atomic number 18 allow foring to corrupt luxury products. Other high-income earners In Singapore be the experts. They tend to debauch luxury goods and then Influence the local trends and the way Singapore encounter luxury products. This desire to own luxury distinguishs coupled to high incomes and advertising presence in Medias will chief(prenominal)tain and increase the demand for luxury scratchs. Luxury companies expected to benefit from important sales over the think period.However, growth of luxury goods seems non be able to affect non-luxury products, beca go for almost Singapore are still prudent with their spending. Why Singapore select globular tell ons instead of local posts? 2 Riders digest trusted brand survey 2008, 23 April 2011, My Paper According to the newspaper My Paper grocery survey, 26% of Singapore favor local brands (so 74% favor orbicular brands)2. Even if at that place are some strong local brands much(prenominal) as Tiger or Singapore Airlines the support of home- growth brands Is really low.So we will try to understand why Singapore have a favourence for global brands instead of local brands. The mall reasons that come In mind are that Singapore attach a lot of wideness to their Image. The 2 notions of status and belonging are key points of the Asians consumer behavior. Singapore is a modern indian lodge Tanat Keeps peep collectivist relations slantingly. The Singapore society is highly, individuals are strongly sensible of their place thin the group, institution or society as a whole, and their position, dress and speech rivaling to their status.They are extremely fussy about the need to kee p their dignity. They attach massive attention to the choice of products prices, brand and presentation should reflect its own friendly status. As to personal appearance, color, existent and style of clothing, they must couple on the friendly status that defines the age, sex, occupation Singapore wear luxury goods show to others that you are part of high class. The quality of the product has less(prenominal)(prenominal) importance than the image that the brand will reflect. call forth has the opposite positioning in Singapore. be It is prerequisite for Asian people to be accepted by his peers and the fear of rejection, exclusion, is intense, creating a need to always be part of the trendy and dashable group. Singapore have a different approach of buying luxury goods equation to Hesperians people. They buy this kind of product to be a part of a group, because the trend is to buy western means products. It is a consequence of the westernizes. individualised We can compare the Moscow pyramid of the western people and the one of Asian people.It appears that personal need which is very strong in western societies sonnets exist in Asians societies. Status Self-actualization SOCIAL Admiration Affiliation Belonging Prestige Safety PHYSICAL Physiological The statement that Singapore prefer global brands can be contradicted by the fact that there are only a few Singapore brands, so we have the touch sensation that Singapore do not support their own brands. merely in many industries and especially in the fashion industry, local brands suffer from the comparing with global brands.For the case of Awaken it is obvious that the brand is subjected to this specific consumer behavior. But in an other hand Awaken achieved to succeed n Hong Kong, a very similar merchandise than Singapore. We can explain this by many facts. First Awaken is not seen as a local brand in Hong Kong, they overcame the Asian consumer behavior difficulties. We will now explain what the ma in defaults of the brand which prevent Awaken to succeed in Singapore. give away fair-mindedness & Obstacles 10 netter unreason ten salmonellas customer Attlee towards Awaken, lets study the key components of Awakeners brand equity.Thanks to the brand equity definition, 3 keys have to be taken in considerations The differential effect, the brand knowledge and the consumer reply to merchandise. In the luxury market, the differentiation is based on what the brand reflects to the costumer and less on what the product is. Awaken is trying to differentiate himself from his competitors on the product characteristics (handmade, crocodile skin ). The Awakeners differentiation strategy is not appropriate with the luxury market where the differentiation is done through the brand image since the quality is implicit. on that pointfore there is a lack into the Awakeners brand equity. Since the three keys of the brand equity are pretty linked, the brand knowledge is weakened such as the con sumer response to marketing. In order to give some recommendations to Awaken, its relevant to accent on the sources of brand equity in order to understand what goes wrong with Awaken. There are three sources of brand equity that are brand fellowship, brand awareness and brand accessibility The brand awareness is the extent for a customer to recognize a brand and its elements.Awaken does not have a lot of brand awareness. Indeed, as our opinion poll pinpointed only 21% of the people do know that the brand exists. Moreover only 8% of the people recognized the brand logo and 59% did not unfeignedly handle it. Therefore its hard to create a favorable attitude toward the brand and receptiveness to the message. The accessibility of the shops reinforces the brand awareness. Accessibility is how easy it is or how easy it seems to be, for customers to interact with and to purchase the brand.In the case of Awaken this component of the brand equity is well done since the number of point of sales correspond to such a product E one or devil maximum in each principle market. This kind of strategy with a very exclusive distribution channel is very efficient especially in the luxury business. However the flags ships are a bit less luxurious and with less mantra than the other brands. For all those reasons, even if the accessibility is a drawback and could be improved. The rifle source of brand equity is the brand association. Brand association is relative to past experience between the customer and the brand.Product use and advertisement are the basis of this concept. As Awaken is not wildly spread in Singapore and does not do any advertisement, the costumer cannot easily associate the brand to anything. According to our opinion poll, its clear that a large majority (79%) of the costumers does not have any mental association for this brand since they dont know the brand. For those that know the brand (21%) the mental represent is as follow As we can see on the mental m ap ( appendices B) all the associations that are made with the brand are very material and none is related to brand universe, Which is a basic feature in the luxury market.Now lets consider the fantasticness of the selling proposition that is fashionable, handmade and high quality crocodile product that last for life. This positioning is quiet unique and in one hand can be a compel reason to buy product from the brand but in the other hand in this market its debatable whether this proposition is efficient. Indeed, the kind of costumer that buy products for the quality are not focus on fashion and are more likely to appreciate very classic example with a style that will last over the years.Last but not least the colors are too flashy for such a proposition ii a 30 years old cleaning lady can appreciate a pink purse but will it be ten same when seen Is pyramid of Awaken. Considering all tense supranational we can Dull As it appears on the pyramid some part of the pyramid are miss . Therefore we can conclude that the brand has not built a brand image yet. In Singapore their tooshie market is very narrow. Indeed they target people with high incomes that are only looking for quality and dont care about considerations such as the image that is shown by the product.In Singapore people buy product to be part of a group and the rich people group like to buy European brands. Therefore the target market is very narrow. Recommendations Awakeners marketing strategy is not efficient. Gingersnaps market is a particularly one, as we pointed out in our initiatory part. We do sincerely think that Awaken should first redefine the target. The target is not clear, so the positioning does not match with the target expectations. So the positioning should be created for this specific target. Now, the positioning is focus on the product characteristics.But in a luxury market customers are less likely to buy a product for rational reasons (products characteristics) than mistake n ones (brand universe). So the key points on which Awaken should work salience, imagery, feelings and resonance, that is to say the missing points of the CUBE pyramid. Nowadays Awaken focus only on the product and the quality, they should develop their brand. The brand is not valuable in Singapore. They do really have to work on the brand equity. The salience can be improved by the communications. As we mentioned Awaken do not use the media and either did not do any advertisements.So our recommendations to fix that would be to propel a communication campaign into specialized Medias, such as fashion magazines (Vogue, Ell ). We could also imagine exposing Awaken handbags in window-store in luxury hotel halls The biggest obstructer concerning the imagery is that Awaken is not seen as an international luxury brand. As explained before Singapore are more willing to buy global brands products instead of local rands especially in the luxury market. Awaken cannot extend its Singapore or igin, but the can make the customers forget about it.For congresswoman they should hire western models instead of Asian ones and do brand second with international stars which are particularly famous in Singapore. It will also show that the brand is well- known abroad. According to our opinion poll Awaken has no dominant feeling. They should develop the image of the brand so that they would be able to make the customer have specific feelings when they buy a handbag. The main feelings that must be developed are the affable commendation feeling that is common to almost all luxury brand and the security feeling to differentiate itself from its competitors.For instance they could associate themselves with a very famous international luxury watch company (as Jaeger Lecture or Role) to make crocodile skin bracelet. Consumer will associate the feelings of security and social approval of the watch brand with Awaken. And it will increase the international image of Awaken. The last feelin g that Awaken should work on is the resonance. They should work on the brand universe to increase customer loyalty. Entering Into a Awaken snitch NAS to De a unlike experience. I nee should increase their shop standards.