Evaluate the Effectiveness of Harry Winston’s Marketing Strategy in the UK
Evaluate the Effectiveness of Harry Winston’s Marketing Strategy in the UK
The essay provides the effectiveness of Harry Winston’s Marketing strategy in the UK. It will discuss the social class of the consumer, consumer behaviour, and consumer culture and with this “we can evaluate the effectiveness of the marketing strategy.” Firstly, it will provide the background of the research topic where it will inform on the general information. Secondly, it will analyse the research topic through the literature review and theoretical framework where gaps in literature will be able to be identified and therefore enable the research questions to be answered and objectives of the study to be accomplished. Thirdly, the analysis of findings will be presented where the relevant data collected will be used. Finally, there will be a conclusion and recommendations section where the overall research will be able to be wrapped up and recommendations made for further research or to advise other companies and organisations on the best way to implement and use the Harry Winston’s Marketing Strategy.
Nowadays, the development of Jewellery industries has increased. Luxury Jewellery brand expresses the socio-culture and personal meaning through a specific form. Furthermore, Luxury Jewellery represents its high-end consumer base on social class, especially, wearing jewellery have traditionally composed the way of displaying the extraordinary wealth while simultaneously disguising capital as artistry. (Pointon, 1997). This is evident through the way the wealthy have grown fond of wearing expensive jewellery over the years. In particular, it has become like a haven for the wealthy to showcase their wealth without the need to flash around their money or cars. For example, if a party or forum for the wealthy is organised, apart from wearing some of the most expensive brands of clothes on the market, driving some of the expensive cars or drinking and eating expensive dishes, they cannot in anyway not wear expensive jewellery. For most men, they go with watches, but some can also wear necklaces and rings. On the other hand, women prefer mostly necklaces and rings to show off to their wealthy friends and family. This habit is common, and with how things are seen to go, it’s not something that will come to a halt.
With regards to the above, we have Harry Winston which is regarded as the House of Jewellery. It was founded in New York in 1932. It made possible the transformation of diamonds from being more than art but also luxurious items for the wealthy. When compared to other established brands in the business, it is regarded as a younger jeweller. Over the years, the founder, “Harry Winston was able to continue with his hard work to be able to shape the company into one of the greatest, respected and known jeweller houses on the face of the planet. Through his passion, unique charisma and strategic approach that he brought to the business and industry, he managed to make the brand elegant and glamorous. The brand is known as the originating of Luxury Jewellery design. In 80 years, it has emerged 160 chain store over the world, which increased the margins by combing the new product and sales. In the UK, it only has three stores at the moment, but it still enlarges the retail network, Wholesale watch distribution and develops licensed salons.
It should be noted that every established jeweller and brand have to be unique in form and appearance together with having a unique technique in terms of gemstone settings. Therefore, for Harry Winston, it was how it was able to do the diamond clusters in a way that set it apart from the rest. As such, with this form of the method (unique), it was able to command the setting that it wanted and not the other way around as previously seen in other traditional gem settings. This trend, unfortunately, was halted in 1944 where another arose where he was using celebrities as marketing campaigners where he gave them to showcase in their shows and other forums while they attended. In this case, the celebrities were able to showcase his artistic work, and through this, he was able to gain fame and favour, and eventually, he started being known as the “jeweller to the stars.” Therefore, the core objective of this research essay is to “explore and analysis on the Marketing strategy of the Luxury Jewellery brand through a case study of the House of Harry Winston.” The purpose of choosing this company was because of the impressive strategies and strides that the company has been able to make in the past years. Also, it has offices and branches in the UK which is a good scope for our research study. This is because the region is known for its luxury and glamour in almost everything, from cars to real estate, you name it, the United Kingdom is a place like no other when it comes to owning and having some of the best things in the world.
1.2 Research objectives
This research objective is to explore the marketing strategy of Harry Winston in the UK, especially focus on luxury brand strategy and positioning, followed by making suitable recommendations.
1.3 Research question
What is the strengths and weakness of Harry Winston marketing strategy?
How Harry Winston Jewellery attract the high-end class customer?
2.0 Literature review
2.1 The mass market for Luxury jewellery brand
Nueno and Quelch demonstrate that since 1995, the luxury brand market has rebounded significantly, the worldwide annual sales have increased 10% a year. The consumer purchase data in many product categories show the buying power of high-class consumers is larger than the mass mainstream marketers. Additionally, Luxury brand ownership expresses the information of the consumer’s social class as the social class are unclear, and this has made the ownership of luxury brand to become a generally accepted and also reassurance for the high- taste statement. (Nueno & Quelch, 1998).
The Global Luxury Jewellery brand has the mass market than any other mainstream brand market. As such, the jewellery industry is seen to have a prosperous future. For example, according to stats, annual global sales of €148 billion have been recorded, and they are expected to grow at a healthy rate of 5-6 percent per year. Therefore, by the year 2020, they are forecasted to reach approximately €250 billion. To add on, the level of consumer appetite for jewellery which in the year 2008 was disrupted by global recession has been observed to be determined and voracious than ever before. With such numbers in the works, the industry is fast growing, and together with the numerous positive changes that are expected both in consumer behaviour and the industry, there is no telling what the limits are.
2.2 Consumer profile
Kapferer and Bastien (2012) state that Luxury brands need specific management. High- income consumer for 61% of the luxury brand, but 39% of most purchasers are the nonrich consumer. Income is regarded as the key factor in this consumption. Also, both Money and the sociocultural modernity play a significant role in the luxury brand consumption, because 60% heavy user is the leader of the sociocultural. The high incomes without sociocultural mentality give rise to fewer luxury purchases (Kapferer & Bastien, 2012). The brand management needs to have the specific plan for all wealthy consumer and the sociocultural mentality but not the rich consumer.
2.3 Consumer Behaviour
Moreover, the Consumption of the luxury brand depends on the behaviour of the consumer. ‘The Consumer behaviour is clarified as the behaviour that the consumer is buying the product and the extent of the consumer needs. Consumer behaviour focuses on the individual decisions they would like to spend their income on valuable items.’(Schiffman, Kanuk & Hansen, 2012). As such, the demand for the luxury goods is based on the consumer behaviour. Generally, High-income consumers spend their money on high-value luxury goods. As western European millionaires (47000 people) are concentrated on the luxury goods, the UK was selected as a representative of Germanic cultures perceptions because it has the mass consumption of luxury brand (Barnier, 2006).
3.0 Theoretical Framework
According to Bourdieu (1984), the consumer decision is determined by social factors. Furthermore, Luxury can show the economic power of consumers. ‘Consumption of goods is glorious, mainly as a sign of powerful human dignity; secondarily it becomes very proud of itself, especially its desire for consumption.’(Veblen.T 2004). Focusing on the Bourdieu theory, the class can be defined as the social group, which is influenced by the individual style and parentage. Moreover, consumer taste is influenced by the social class, consumption choice and behaviour and these reflect the personal identity and the expectations of the class and social status.
4.1 Sampling method
During data collection; two types of data are collected both for different purposes. One, primary data, “this is the data collected for the research.” Two, secondary data, this is the data that is analysed to answer other questions pertaining the research. As such, coming up with a sample that is right and suitable for our study, will be highly useful and considered a breakthrough. It will be able to ensure that we get accurate and on point information. Therefore, the process of data analysis will be seen to be steadfast and be able to show clear interpretations of the data collected. This study will employ a simple method by Smith (2015, 56), which covers the area of using a Z-score confidence interval, calculating the Standard Deviation together with determining the margin error that lies in the confidence interval. As per Smith’s (2015, 56) recommendations, “the Z-score has to be at 1.96 in order to be able to achieve a 95% confidence interval.” Furthermore, he recommends that “the Standard Deviation should be at 0.5 in order to make sure that the sample covers a larger scope when the survey is going to be administered.” In every study, a margin of error should be calculated and properly determined. According to Hunter (2016, 1), he states that “when the sample size is around 100 with a 95% confidence interval, a margin of error of +/- 10% is recommended.” This will factor in the time that will be used to perform data collection and also the skill diversity that is seen to exist among students who are in their undergraduate level.
Necessary Sample Size = (Z-score) 2 x Standard Deviation x (1 – Standard Deviation) (Margin of error) 2 (1.96)2 x 0.5 x (1 – 0.5) = 3.8416 x 0.5 x 0.5 = 0.964 = 96.04 (0.1)2 0.01 0.01
Looking at the calculation performed above, it is clear that the formula depicts that having 96.04 of participants as the most appropriate number to achieve confidence in the data when the mean and averaging are done during the analysis of results (Smith, 2015, 56).
4.2 Research Design and Data Collection
The research method is focused on the qualitative method by analysing the luxury jewellery brand market and the consumption of the luxury brand. ‘Quantitative research is elementary. Qualitative researchers develop concepts through the pattern of data rather than data collecting.’ (Taylor, Bogdan & Devault, 2016). In this essay. Quantitative method’s application will be for the background, for example, the company’s locations. On the other hand, to explore the Marketing strategy, Qualitative research can analysis the data and show the people who are interested. Also, data collection would be a proficient way to show the retail network of Harry Winston that has the stores are distributed all over the world. Data collection is a significant process of business study as it involves collecting the relevant source to find the research answers and evaluate the outcome of the research. (Dudovskiy, 2018)
In this regard, therefore, positivism is seen to be more science-based. The knowledge that is regarded as valid tends to be observed and measured in a way that can be able to make it blend easily with the law and thereby forming aspects of generalisations (Saunders et al., 2012; Collis and Hussey, 2003; Gill and Johnson, 2010). “With the collection of both observable and measurable data, the generalisation aspect of the data will tend to cover the population that is being investigated in this study.” With this, the necessary opinions can be retrieved to cover the whole population. The nature of having this positivistic approach towards the research will demonstrate “‘a deductive process with a view to providing explanatory theories to understand social phenomena’ (Collis and Hussey, 2009, 56). This positivistic approach to research demonstrates ‘a deductive process with a view to providing explanatory theories to understand social phenomena’ (Collis and Hussey, 2009, 56).As such, positivism is the suitable philosophy in this kind of research. Positivism is where credible data is obtained from observation. The data will then be analysed to represent the results. In creating a hypothesis, existing theories will be applied. (Saunders et al. 2009, 113). As discussed above, “Research approach can either be quantitative or qualitative” (Kananen 2011, 36). The quantitative approach allows a structured methodology, trying the hypotheses, putting concepts into practice so that they can be measured quantitatively and it gives a chance for generalization and reductionism (Saunders et al., 2009, 124-125). It is essential that the appropriate type of research is selected to fulfil the objectives of the study. While the quantitative approach is appropriate in the examination of scientific theories through evaluation of variables, a qualitative approach is appropriate in the demographic, social and cultural structures of people. The nature of this research requires that both the quantitative and qualitative approaches be applied. The quantitative approach will be applied since “different statistical variables will be obtained and analysed to answer the research questions. Additionally, the qualitative method will be used in collecting people’s opinions and how they feel towards the research question, this approach will help us attain the research objectives” (Saunders et al., 2009, 124-125). The reason why the before-and-after study design is suitable for use in this research is that it can measure how a situation or issue has been affected by the changes that have taken place over time.
Bearing in mind that this research used the “Interpretive and subjective form of approach,” it was decided upon that the primary research will be conducted using interviews for aims and objectives of the study to be identified. In this regard, in-depth interviews are defined as “a purposeful conversation between two or more people, where questions and answers are explored” (Saunders et al., 2016, 388). The participants will be a selected group of people comprising of people living in the UK together with management and staff associated with House of Harry Winston.This process of data collection (interviews) was needed in order for the relationships between the objectives to be identified, understood, and eventually, the research questions will be seen to be answered. Coming back to why interviews were chosen, focus groups were seen as ineffective considering the state and sensitivity of the study. Therefore, with interviews, participants will be assured of anonymity, and hence they would be able to be relaxed and comfortable during the interview sessions. On the other hand, focus groups would have been useful in being able to attain a huge and wide scope of data collection, together with using less time considering that in-depth interviews consume much more time. However, considering that the research is scheduled to be conducted in one day, the in-depth interviews will be deemed as more reliable as the level of convenience is not an issue. Additionally, the interviews will employ a semi-structured format, which will provide flexibility as a variety of questions will be used. That is, no order will be followed, and this will enable more reliable responses to be provided by the participants. Finally, ensuring that the data needs to be well recorded and collected, the interviews will be recorded using a Dictaphone which will ensure that every session with the participants will be effectively recorded. This will provide credible data, and therefore robust and bulletproof transcripts showcasing the interviews will be produced. This form of data collection will clearly eliminate the aspect of data misinterpretation as the audios can be listened to, time and time again in the event some element of data was missing. This will also help the process of data analysis as it will be done using open coding (to identify the responses from each participant) and thematic analysis (to be able to match each theme to the objectives of the study).
With the data obtained from the participants which included the people living in the UK together with the management and staff at Harry Winston through the interviews that were done, various crucial things were discovered concerning the marketing strategy that the company employs. To start with, there was the objective of determining both the “strengths and weaknesses of the marketing strategy.” On the aspect of strengths, the marketing strategy was discovered to be innovative as it employed some of the best techniques to lure wealthy and potential clients to their brand. For example, the company can use celebrities and highly respectable people in the society as well as brands to market their jewellery. Through this, the wealthy and famous are easily targeted as they are mostly in association with such places or people. The other strength that the company uses is its level of popularity, that is, the brand name. Through this also, they can use unique products as a way to target the potential customers. On the aspect of weakness, the House of Harry Winston is seen to have a lack of online presence as compared to other established and outspoken brands in the industry. As such, they are not able to capture the potential customers who are mostly online buyers.
On the aspect of how the House of Harry Winston Jewellery can attract high-end customers, it was discovered that it was mainly because of where it is situated. This is in the UK at the heart of London where the majority of the people are considered very wealthy due to the furnished and luxurious apartments and shops together with businesses that are located in the area. Furthermore, looking at how Harry Winston Jewellery has decorated and furnished the place, it is no doubt that it wants to attract the wealthiest people around. It is no secret that not most people can enter fancy and luxurious places (mostly shops) if they don’t think they can afford at least one or two things that are being sold. Therefore, the decorations and expensive equipment together with how the employees are dressed is part of the marketing strategy that the company is using and being sincere, it has been seen to be working like a charm.
6.0 Conclusion and recommendations:
To conclude, the market for luxury jewellery brand is quite mass, especially for the high-class consumers and show the power of the social class. However, it stills need to develop the specific management and expand the market for more middle-class customers. Referring to the consumption of the luxury jewellery brand, the UK has attracted a large number of wealthy customers by understanding the high-class consumer behaviour. This is through attracting them with fancy shops and buildings and also a pleasant and well-dressed staff. Even though Harry Winston has been able to have quite a number of strengths within its marketing strategy, it is best that it works heavily and tirelessly on being able to offset the risks that come with the weaknesses. To mention, it needs to better manage its online presence by expanding it more than it presently is. Through this, it will be able to fetch more revenue by attracting more clients. Finally, other companies in the luxury jewellery industry need to fetch a leaf or two when it comes to the strengths that have been portrayed by Harry Winston as they will be highly competitive in the market and thus the industry and market as a whole will grow.
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