The luxury service encounter

The luxury service encounter 

The luxury service encounter consists of e main elements:


- People
- Physical Evidence
- Surroundings


People are the most important aspect in a service encounter because they can make or break a deal. If one is dealing with unhappy employees, the customer will more often than not end up with bad service. This will not only ruin the customers experience, but also potentially lose the business a client for life, and result in alot of bad word of mouth.  In business it is said that retaining customers is often cheaper than adding new ones. This is one of the most important concerns for brands today. 

Keeping employees happy is very important in today's business world. However it is also important to understand that we can no long just expect 'service with a smile'. It has to be a win-win situation inorder for us tto get the most out of the employees in the service the brand offers.




Certain things like employee benefits, promoting teamwork, empoyering employees etc can all be used as part of customer dervice delivery experience to ensure we are are giving the best service and keeping the employees happy at the same time.

This graph shows other aspects that are part of the customer delivery experience.






Next, The Physical Evidence is extremely important.


The style and appearance of the physical surriundings are extreemly important espically when dealing with the luxury industry and client. We have certain expectations to what we expect when we check into a hotel, restaurant or spa etc.


The pictures below show us some examples of extremely stylish physical surroundings:

THE DORCHESTER (http://www.archimage.co.uk/dorchester.htm)

Ritz London (http://www.forbetterforworse.co.uk/honeymoon/the-ritz.shtml)






Lastly, surroundings are very important as well. Location is key, we expect certain hotels and restaurants to be located in posh areas because their location affects the consumers perception of the service and quality of that particular place.  The Dorchester and Ritz Carlton are both located in prime areas of london, as are members only clubs like Mortons.

The collective reflection of the class: different brands, and different feelings. I have summed these up as given below:

 

 

 Lastly, we discussed what are the things that drive consumers to brands 'Loyalty Drivers'. I have attached a snapshot of the group idea below. It is not essential to be a 100% on all of these aspects howebver I believe that atleast some of them should be check off

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

Sustainability

 




Sustainability can be related to several aspects. 

The oxford dictionary defines sustainability as "ability to be maintain a certain rate or level'. This could be in terms of CSR, products, ecological in nature etc. Businesses have the responsibly to ensure that their practices are 'sustainable'. In order to ensure that what is available for this generation is also available for the next generation.


This is very important for luxury brands because luxury itself is very precious as is the luxury brand.  
Luxury products like jewelry, watches, sunglasses and other accessories are often passed through the generations because fashion often works in cycles.


However when it comes to products like yachts, cars, jets sustainability needs to be considered at a deeper level because these products have huge impacts on the environment.




The global elite are increasingly well educated and concerned about social and environmental issues. They want their brands to reflect their own concerns and aspirations for a better word.



The video below explains this a little further:

Sustainability goes beyond individual brands and has also moved to specific countries:
- Certain countries have banned imports/exports of particular kinds of leather and fur in order to sustain environmental sustainability.

- Certain products are made in a way that can be passed on to the future generations: 


Patek Philippe watches.

Tiffany also based their business model on sustainability and says 

“Sustainability is our most important designer; Nature is our best designer.”  Tiffany.

- Brand Sustainability: Sustainability as part of the Brand DNA

Loro Piana :  They use Vicuna fibers, and because the animal is almost extinct they breed these animals and sell the fur. This is a sustainable business practice.

Other examples of brands that are practicing sustainability:

1) Apple: They recycle use Ipods and give consumers discounts on new stock.

2) Loro Piana: as mentioned above.

Fashion and sustainability:

Personally, my favorite example of sustainability and fashion is Anya Hindmarch's "I am not a Plastic Bag'. She designed a simple bag saying this and got millions of people aware of the importance of sustainability and environmental concern.

----

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

Website :YouTube:  Global warming fashion and plantable packaging (http://www.youtube.com/watch?v=Dtaa98jPKJw) Used on March 22, 2011 (London, U.K)

Design Strategy In Reaction To A Business Plan

Design Strategy In Reaction  To A Business Plan

I found this lecture to be extremely useful because it explained the relationship between design and the business plan.  The class was started by stating the importance of being creative, especially for luxury brands. This made me think about where I could possibly use design elements in my brand extension (business plan). 

How does design management support the realization of a luxury brand and support corporate endeavors? 

Design has various layers, and each layer signififies something different.  For example: Design in meaning (is the mental layer: i.e its concerned with the menaing behing the product -> this relates to design as expression. Each layer has to be designed in specification to the corporate endvour to ensure that the brand isnt losing meaning.

Within luxury, it is even more critical that people think creatively, and invent and reinvent to represent the brand as well as possible and keep it relevant to the times…

We found that Good Design often has certain characteristics that go along with it. The diagram below lists some of these characteristics.

The following video explain the relationship between business and design: It explains the relationship and the problem that comes along with this marriage.

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

 

Website :YouTube: Richard Seymour - Business and Design

 (http://www.youtube.com/watch?v=HT6z7HZdYj0) Used on March 22, 2011 (London, U.K)

The Service Model

The Service Model

This class focused on the service model. My interests are in the service industry, and my project is about coming up with a Moet and Chandon Penthouse. I personally believe that flawless service often results in purchase and repeat purchase. I believe this because it is the quality of service that gets the consumer back.

Personally I have often experienced that the better the service is the more likely I am to go back to a particular restaurant or hotel.

James D. Roumeliotis from the WhiteField Colsulting Worldwide also said that "great service is one of the most important reasons customers will choose to do business with you on frequent basis."
(Defining Luxury Brands: Business, Posted on February 28, 2011, Viewpoint by James D. Roumeliotis, WCW Columnist) 

The higher in price one goes, the higher the service is needed to convince the customer and keep the customer happy.  The relative value added physical vs. intangible. An example of this is given below:

(Reference: Module Slides, Class Lecture: Serena Gossain and John Harrison)


The value added is the extra features of an item of interest that is beyond what is normally the standard expectations. The vale added often results in giving the company competitive edge in the marketplace.  This value add is essential in luxury brands.




"Today, consumer purchase decisions are increasingly driven by consumers’ hearts. With ambiance marketing, a custom designed attractive setting – yet alluring with captivating style, invites customers to truly feel the brand experience by adding character. This is accomplished by connecting the emotions to a product or service, and infusing it with a tangible and intangible essence that remain in the customers’ minds."  James D. Roumeliotis from the WhiteField Colsulting Worldwide






In the past, the service sector suffered because each service was treated as an isolated event. 
This model was used extensively used in the 70s 80sand 90s: it was known as the crafts model.

-> In the 1990s: most service providers turned their attention back to the human element. They got got rid of the 'instructed smiles' and moved on to 'personalized service'. This meant that employees were empowered to customize the service encounter to the individual characteristics of customers.

Pre 90'S

Personalized Service: (90's onwards)

Personalized service: Many organizations do have service elements to the products they sell.

When it comes to services consumers tend to be more demanding because services are time bound. Unlike products, consumer cannot hold on to services they can only measure it in terms of the time and for this reason  a consumer paying for a service is expecting quality service for the duration.

Intangible: the experience consumers obtain from the service has an impact on how they will perceive it. 

¨Inseparability: Services cannot be separated from the service providers. Example: When when visits The Ritz - London the service one gets is what the link to the hotel. Same with all other luxury service providers.

¨

   

Perishability: Services last a specific time and cannot be stored like a product. For this reason when it comes to service consumer except to get what they are paying for. Consumers tend to be exceptionally demanding and expect nothing but the best.

 

The service industry uses the flower of service to uniquely deliver their offerings:

This states that each service has to unique and excellent in order to satisfy the customer.





In class we did an activity on the 8P's of Marketing in relation to the service industry. We were asked to rank the 8P's in relation to a service of our choice.

The 8P's are as follows:

¨Product elements.

¨Place and time.

¨Price and other outlays.

¨Promotion and Education

¨Physical environment.

¨Processes

¨People

¨Productivity and quality.  

My group and I choose an Indian luxury hotel called Taj Palace. Given below is a picture of our findings:

-> High Context vs. Low Context service: High context service is where the employee is in high contact with the customer, and low context is where the employee has less contact. Whatever the level of contact employee development, training and attention to the employees well being are very important in the service industry. This is because the employee needs to be happy in order to service consumers in the best of their ability. Employees outcomes are associated with customer satisfaction and hence related to the financial performance of a brand.

We ended the lecture by discussing what we felt employees had to be in order to work in the luxury sector. The class findings are given below:

 

Reference:

1) Module Slides, Class Lecture: Serena Gossain and John Harrison

2) (Defining Luxury Brands: Business, Posted on February 28, 2011, Viewpoint by James D. Roumeliotis, WCW Columnist)
http://www.whitefieldconsulting.com/wordpress/?p=7350

Excessive Luxury and brand extentions

This video really made me think about how some consumers give into excessive indulgance.
It also talks about brands like Swarovski have gotten into things like 'Swarovski high chairs' and  'Swarovski coffee maker'. Other brand extentions as well like the 'Tiffany diamond 'phones'. The phone by Tiffany sells for $1 Million! Can u believe it?

Reference

Website: Trend Hunter: Excessive Luxury (http://www.trendhunter.com/tv) Used on March 22, 2011 (London, U.K)

Mood Board and Group Work (Insights)

Mood Board and Group Work (Insights)

The first half of the class consisted of making presentations about the brand we had cone up with along with the mood board.

We had to choose from the following:

1: Creating a new champagne, focused on rich youngsters

2: A boutique range of hotels for wealthy singles (age 25-40)

3: A private jet service for celebrities and sports personalities

My group consisted of Nichole, Sabrina, Aurore and Anna.

We had decided to go with the hotel idea. We presented via power point, however I do have pictures that were taken of the white board.

We created a hotel for wealthy singles called Rendez-Vous. This hotel would have the typical French Baroque style. We style was very classic and romantic.  We worlds we used to describe it were:

sexy, glamorous, intimacy, fun, party, meeting, connection, socializing, romantic, creative, activities,…

sexy and glamorous

intimate

 

Romantic

The concept: The hotel was designed on the one hand side to offer singles the possibility to get to know a “potential partner” and spend some fun time together. Organized activities such as city sightseeing, beach volleyball, diving, candle light dinners (depending on the locations) emphasis on finding the love of one’s life. On the other hand, there is no obligation to take part in such activities and one can spend the days relaxing at the outstanding spa and fitness facilities of the hotel and enjoying the gourmet cuisine.

The no obligation bit made a lot more sense because sometime one may be traveling to another city with the requirement of some time away from everyone and they may not want to meet new people. However, we also noted that since it is a singles hotel we do need to cater mainly to those who are interested in meeting and getting to know other potential partners.

There were are two different types of clients, as described in the visuals below

The traveler who prefers some time alone

Those who like to get to know others and are interested in having a good time

COLORS:

vRed because it is the colour of love

vGold because it reflects the wealthy status of our clientele

 It was possible to work with our chosen colors in all parts pf the hotel, provided we keep it minimalistic and stay on the classy side. I believe that this visual serves us well

Other images are also given below

This presentation has initially sparked me off by thinking of all the various 'singles cruises' I know of. These singles cruises are very popular as well, so I thought 'why not'.

-> Can u believe that they actually have a website called Singles Cruise. Its a website that caters to singles and features a range of cruises all around the world. They use the tag line "Travel Single, Never Alone". Isn't it amazing what all one can get at the click of a mouse.

Other groups came up with similar mood boards as well:

This group did a presentation about champagne using the colour purple. The champagne would be one that is targeted to be exclusively drunk by women. The brand would use the Olson twins to target their key clientele.  The theme of the presentation was feminine, classy, rich as very purple. I found this to be extremely different and quite interesting at the same time

This group did a presentation on 'Jet Setter' a private jet company. The company used black and silver in the logo. The presentation used Karl Lagerfeld as an example of the kind of clientele they were looking at. They spoke of  prestige, class, comfort, desire and pampering. I would have liked a first class seat of this jet for sure.

This group come up with a hotel for singles.

The idea was conceptually the same as ours however the look and feel of the brand was extremely different. This is where Brand DNA comes into play. 

They named it The V Hotel! The hotel would have an exclusive partnership with Vertu. (Clarifying that they did not get the name from 'W Hotel'). The major point of difference was that they stated that Philippe Starck would design every room himself

The hotel would be in Soho, London.

Vic and Constantine:

They came up with a champagne idea, unfortunately I missed out on the visuals.

The good news is that I do have a picture to round up the work we all did

This sums up the first part of our lecture. The second part of the lecture was about creating multifaceted and multisensory luxury brands. The lecture took us further into Brand DNA and Brand Personality. We spoke about how luxury brand sell of emotions and tell stories to people. These stories are what gets the consumer through the door, and the visuals and vision of the brand is very very important in this process. The consumer comes to our brand to live the dream. They want the brand for everything it is: history, heritage, emotions etc. They use these signs to aspire to owning luxury and when they finally do, they want it to be nothing short of a fairytale. Consumers need to feel like they can identify with or fit into the brand image in-order to want it and for this reason it is essential to manage brands in a way that is in line with our targeted consumer.

This lesson was one of my favorites because I actually walked out extremely happy.

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison