Marketing strategy and new product launch for Audemars Piguet

Contents Cultural Biography The Royal Oak Line Brand codes Timeline of historical events Market segment The Fragrance Brief Fragrance archetype Schematic map Key Imagery The Perfume Global Fragrance market Marketing strategy Marketing Timeline Target Consumer

CULTURAL BIOGRAPHY Audemars Piguet is a manufacturer of ultra-luxury Swiss watches and is celebrated for its precise movements and exquisite, opulent designs. It was founded in 1875 in the village of Le Brassus, at the heart of the historical haven of complicated horology named the Vallée de Joux. Since the beginning, the brand has taken immense pride in manufacturing some of their brilliant time pieces in this village. Currently, they have acquired two more production sites, one specializing in the development of complex mechanisms in Le Locle, named Audemars Piguet Renaud et Papi, (APRP) and a case-making company based in Meyrin-Geneva, Centror.

The company was started by two visionaries, Jules Louis Audemars and Edward Auguste Piguet, who were ambitious to develop and craft timepieces equipped with complex mechanisms. They established their workshops in Le Brassus, in Switzerland’s Vallée de Joux, the cradle of fine watchmaking, and Audemars Piguet was born. Even today, all their watches are produced in-house using traditional old-fashioned techniques, and every piece is painstakingly created in a non-automated process.

Since 1875, the company has written some of the finest chapters in the history of haute horlogerie, including a number of world firsts. After producing the world’s thinnest watch in 1946 and their first wristwatch with a perpetual calendar in 1957, they launched one of the most iconic watch designs of all time in 1972: the Royal Oak- the first luxury watch to be made of stainless steel which is widely recognized as one of the most important innovations in watchmaking.

THE ROYAL OAK LINE When the Royal Oak, now a cult watch with passionate fans and committed collectors, first saw the light of day nearly forty years ago, it transformed the world of watchmaking; and also transfigured Audemars Piguet. In 1971, when the in-house designer Gerald Genta sketched what would become a world-famous watch, he may not have been aware that the octagon is an age-old symbol of rebirth and resurrection. Yet, once unveiled in 1972, the Royal Oak had precisely that effect.

For Georges Golay, president of Audemars Piguet from 1966 to 1987, launching the Royal Oak was a daring move. The watch embodied a totally new concept, namely a model that was simultaneously sporty and luxurious. It was made of steel yet crafted with so much concern for perfection that it cost more than an upscale gold watch. Equipped with a caliber 2121, the world’s slimmest automatic movement with a date window, it was barely eight millimeters thick and weighed no more than one hundred grams. Its 21-karat gold oscillating weight justified the launch slogan: “Body of steel, heart of gold”. Its watertight case received a level of finish previously reserved for precious metals. The metal strap, which had to be assembled and finished by hand, was notable for the way it was incorporated into the case, for its elegant curve resulting from links and studs of decreasing size, and for its flexibility. The eight hexagonal screw heads of white gold, visible on the bezel, underscored the originality and modernity of the watch. The engineturned decoration on the dial featured a blue, grid-like “Tapestry” pattern specially

created for it by the great dial-maker Roland Tille, further breaking convention.

That first Royal Oak, initially produced in a series of one thousand, also represented an industrial challenge for Audemars Piguet. Not only had the firm never produced more than six thousand watches per year, its watchmakers had never worked with steel. Unveiled at the Basel trade fair, the Royal Oak sparkled admiration, stupor, and skepticism among professionals. Yet the paradox on which it was based – the attempt to combine simplicity with luxury, casualness with refinement, and modesty with perfection – met with instant enthusiasm from lovers of fine timepieces. It turned out to be a great commercial success.

Which meant that Audemars Piguet had to revitalize its traditional methods on a grand new scale – with the success of this steel octagon, the firm was reborn as a modern manufacturer in which rigor, precision, and quality control were required at every stage of production.

Why the name “Royal Oak”? First of all, it was the name given to a historic tree, the large oak in which English King Charles II hid in order to avoid capture by Cromwell’s army after the battle of Worcester in 1651. Following the restoration of the English monarchy, the tree that saved the King’s life became an important political symbol: between 1796 and 1914, no fewer than four British warships were christened The Royal Oak. Audemars Piguet adopted this name to evoke not just royal prestige but also noble longevity, because it transpired that the oaken hull of the second Royal Oak was lined with steel. The watch, whose shape also evokes a ship’s bolted porthole (and which Genta said was inspired by the perfectly watertight window of diving helmet), therefore brought with it a fresh breath of ocean breeze, sea foam, and whitecaps.

Audemars Piguet’s revolutionary watch also brought new, unexpected life to the Joux Valley. It challenged traditions and stimulated imaginations. In the subsequent four decades, the Royal Oak line has branched in several directions and blossomed into hundreds of different models. Since its birth, the Royal Oak has adopted almost every complication, has been dressed in brushed gold, platinum, tantalum, titanium, alacrite and forged carbon, has been undressed in skeleton versions, has been endowed with straps of leather and Kevlar, and has been metamorphosed into a diamond-studded Lady Royal Oak as well as an even sportier model – the Royal Oak Offshore – which is larger due to a second case shielding it from magnetic field.

The Royal Oak Line development: • 1987 A skeleton Royal Oak with perpetual calendar and self-winding mechanism flaunted its technical prowess before the delighted eyes of mechanical enthusiasts.

• 1992 The Royal Oaks’ reputation.

• 1998 Audemars Piguet’s watchmakers turned out an automatic Royal Oak Chronograph with date, the thinnest self-winding chronograph ever produced, which to this day remains one of the line’s leading commercial successes.

In the same year, Audemars Piguet decided to place an automatic grand complication movement in a Royal Oak case.

• 2002 The thirtieth anniversary of the Royal Oak line was celebrated by unveiling a magnificent, totally original and futuristic model, the Royal Oak Concept. • 2004 Barely two years after the Concept, there appeared another extraordinary limited edition watch, the Royal Oak Tourbillon.

BRAND CODES Proud of its long history, Audemars Piguet nurtures its traditions. It does so first of all by perpetuating demanding standards of training for budding watchmakers. In this spirit of respect for high standards, constant self-improvement, and love of work well done, Audemars Piguet hosts some fifteen trainees, in different specialties, at its in-house training center, where they acquire the basics of the trade.

The determination to pass on the finest traditions, which was the original source and longterm guarantee of the reputation of Joux Valley watchmakers, is still a major concern at Audemars Piguet. There would not be much point in keeping one eye on the future if the house did not simultaneously look to its long history, without which it would sacrifice its roots, values, and reasons for making certain decisions.

Audermars Piguet is also famous for its strong and masculine designs. It stems love of constant progress, continual advancement and eternal improvement. But what is the source of this dynamism, this conviction, this daring, that occasionally leads down dangerous paths? Perhaps it goes back to the temperament of the two founders, who both abandoned secure prospects to launch a risky venture. This temperament, passed on from generation to generation, has spurred the Le Brassus watchmakers to seek the unknown, to wager on originality, for over a century and a half. Whether it concerns the visual appearance of a watch, the harmony of shapes and materials, or the conception and design of timekeeping mechanisms, the firm’s well-known creativity has been crowned by a series of firsts.

“What is important is not the metal or jewels, it’s to take risks, and through the work of designers, engineers, technicians and watchmakers, you transform it into something that is more precious than gold. A good example is the Royal Oak. When we launched it, it was in the middle of one of the worst crisis the watch industry ever went through, and, at the time, all the watches in our category were in precious metals and were round or oval, so to launch a watch in steel with sharp angles and visible screws at the same price as a Patek Calatrava or the double of a Rolex was a really big risk.” – said Olivier Audemars, the great-grandson of Edward Auguste Piguet.

In addition to innovations that target the case, Audemars Piguet has employed materials in its movements that are as unusual as they are luxurious and beautiful. An openwork design often allows the mechanism to be admired, for it includes hard, natural stones such as rutilated quartz, moss agate, and chalcedony, of which some bottom plates are made, representing yet another watchmaking revolution in a word where technical secrets are usually well-kept.

Their love of constant improvement has always been matched by a love of the finest standards of quality. In addition to the quality and originality of the movements themselves, this quest for excellence at Audemars Piguet has always concerned the finish and decoration of every part of the watch, whether visible or invisible, external or internal.

Excellence from start to finish means the multiple polishing and burnishing of a case, the meticulous setting of stones in jewelry models, and the extreme attention paid to the elegance, reliability, and sturdiness of leather or metal straps.

As the progressive timepiece manufacturer, they have been striving not only to reach excellence in the watch making process but also seeking out methods to aid sustainability effort to protect our planet. Since 1992, the twentieth anniversary of the unveiling of the Royal Oak, the watch house established a foundation that has actively participated in conservation and preservation of the world’s forests.

In addition to environmental protection programs, the foundation sponsors educational projects designed to make adults and young people aware of the need to safeguard the environment in general.

Also, the brand has implemented “green” technologies in diverse aspects of their production. The manufacturer des Forges, operated by Audemars Piguet, is the only industrial building in Switzerland to attain the Minergie – “eco-status” to conduct an environmental audit of the company with a view of optimizing use of energy, water and other raw materials, as well as improving management of transportation, waste disposal, and has the exclusive use of certified hydraulic electricity.

The foundation’s substantial annual budget is financed by every watch sold. Thus, everyone who purchases an Audemars Piguet watch is helping to bring that goal a little closer.

Thus, in a nutshell, some of the core values of the brand can be summed up as follows: • Precision • Innovation • Craftsmanship • Masculinity • Heritage • Royalty

TIMELINE OF HISTORICAL EVENTS Around 1492, the mechanical watch appeared simultaneously in Italy, Germany and France. Its principle remained dominant for almost five centuries, until the late 1970s and the advent of the electronic watch.

1517 Watchmakers competed to produce smaller and smaller watches that could be easily carried.

1554 Frenchman Thomas Bayard became the first “orologier” (watchmaker) in Geneva, followed notably by Martin Duboule at the end of the sixteenth century.

1601 Foundation of the Genevan Corporation of Watchmakers. After a minimum fiveyear apprenticeship, candidates for the title of master had to make “a small clock with an alarm to wear around the neck and a square clock on two levels to stand on a table.”

1704 The first watch with jewels was produced by the French watchmaker De Beaufré using a drilling method invented circa 1700 by the Genevan astronomer and optician Nicolas Fatio de Duillier (1664-1752). De Beaufré worked in England, and for the next century his invention gave English watches a substantial advantage over their European rivals.

1741 In his treatise on watchmaking, Antoine Thiout the Elder described the principle of the minute-repeater watch, possibly first made by Thomas Mudge.

1747 Birth of the Swiss watchmaker Abraham Louis Breguet in Neuchâtel. His inventions included the tourbillon, the pare-chute shock-absorber, the lever escapement with divided impulse faces, the flat balance-spring with one or two terminal coils, known as the Breguet overcoil, and a compensation device for watches.

1755 The Parisian watchmaker Caron created, for Madame de Pompadour, a ring-watch that was wound by rotating the bezel and set using a key.

1784 English watchmaker Thomas Earnshaw introduced a new spring detent escapement for pocket chronometers and marine chronometers. His invention was widely used by subsequent watchmakers.

1822 A patent was granted for a “timepiece or measurer of distance covered”, named a “seconds chronograph” by its inventor Nicolas Mathieu Rieussec, watchmaker to the King, who was born in Paris in 1781.

1838 Louis Audemars’ keyless winding mechanism.

1875 Audemars Piguet was founded by Jules-Louis Audemars and Edward-Auguste Piguet in the village of Le Brassus in the VallĂŠe de Joux, Switzerland.

The 23-year-old Jules-Louis Audemars asked his childhood friend, Edward-Auguste Piguet, then 21, to establish and produce watch movements. From the beginning, JulesLouis and Edward-Auguste showed an interest in complex mechanisms. Thanks to their watchmaking family heritage, they had developed all the skill-sets necessary to create complex mechanisms. When they joined forces, they decided to manufacture complicated movements for other luxury watchmaking companies such as Gubelin and Tiffany & Co. They realized they could craft and sell whole watches themselves as they had the necessary tools and expertise to start their own production, and that is how Audemars Piguet started.

MARKET SEGMENT Audemars Piguet caters to a very high-end clientele. Their target consumers are successful, free spirited and well-educated. A majority of them are mature and creative thinkers; they are determined, focused and value attention to detail, and possess a refined and sophisticated demeanor.

Much like the brand, their consumers are pioneers and innovators in their field. For years, Audemars Piguet has connected itself with athletes and other sports personalities, and was actually among the first major high-end watch makers to venture into the field of basketball to add LeBron James to their list of esteemed international brand ambassadors.

The brand’s ambassadors - Novak Djokovic, Sachin Tendulkar, Michael Schumacher, Lionel Messi, LeBron James and Serena Williams – are not only the best at what they do, but also represent the core values of the brand - precision and perfection.

To the Audemars Piguet loyalist, the brand stands for quality, craftsmanship and attention to detail. Some of their watches have 648 different pieces, just in the movement of the watch alone; and the consumer values the precision with which their products are handcrafted The brand focuses on quality over quantity, and each watch is like a unique piece of art which is highly treasured by the wearer.

THE FRAGRANCE BRIEF The Galaxy Model

Strong

Sensual

Masculine Mystical Powerful Woody Luxurious Precious Exquisite

Intoxicating

The Golden Circle

WHAT FRAGRANCE MECHANICAL WATCHES

HOW WHY DETERMINED FOCUSED REFINED EXPLORER

By crafting precise, innovative, cutting edge watches for the refined gentleman

POCKET WATCHES

FRAGRANCE ARCHETYPE “The Go-Getter” • Determined • Focused • Refined • Explorer • Witty

SCHEMATIC MAP

KEY IMAGERY

Strong

Masculine Precise

Woody

Sensual

“A perfume of heritage, eternal and everlasting�

THE PERFUME: INTEMPOREL EAU DE PARFUM

“

“

We created a scent that’s timeless, powerful and masculine

To celebrate a legendary place where gentlemen & the elite gather by the roaring fire Sipping on the finest spirits

Notes:

Sparkling Italian Bergamot opens to a heart of velvety nutmeg & luscious lavender petals surrounded by a blend of sensual musks. An invitation for a close encounter.

Top: Bergamot, lemon, aldehydes, juniper, clary sage Heart: Nutmeg, clove, pimento, geranium, orange blossom, lavender Base: Patchouli, cedar, vanilla bean, vetiver, oak, musk Size: 3.4 oz/ 100ml Price: $800.00 or €700.00 (at current exchange) Manufactured at: Geneva, Switzerland Future plans: To work on the long-lasting strength of the perfumes and combine it with DNA specialization and customization of the fragrances

THE STORY BEHIND THE FRAGRANCE The name of our fragrance is “Intemporel” which means timeless in French. There are many reasons that account for us choosing this name. One of the main reason that contributed towards selection of this world is the long-lasting nature of the perfume.

Intemporel boasts its quality of lingering around for up-to ten to twelve hours. Whereas other Eau de Parfums in the market usually last for eight hours. Secondly, this perfume is born from the company that primarily creates exquisite, luxury watches. Merging avantgarde technology with over 140 years of savoir-faire, the Audemars Piguet Manufacture pushes engineering, craft and design further than any other watchmaker before. Watches are tools for measuring time. We wanted to stay close and acknowledge this factor.

Moreover, the brand in itself has become a timeless luxurious brand. Jean-Noel Kapferer said that, “Luxury aims at being perceived as intemporel; diamonds are forever, as is a Porsche 911” and so will be our perfume.

The design of the bottle is inspired from the Audemars Piguet’s pocket watches, Royal Oak watches and their grande complications. The shape of the bottle is octagonal which is a direct replication of the Royal Oak watch dials.

The carved wooden piece placed at the front of the bottle shows the glimpse of the grande complication and mechanism of these watches. The shape of the cap of this bottle is derived from pocket watch’s crown and is also made of wood, tying back to the Royal Oak heritage .

The story of Royal Oak watches revolves around the great oak tree which is the symbol for royalty, protection and strength. Our perfume, Intemporel also captures these three core essence of the brand. The bottle and packaging can be easily associated with royalty in terms of its design and material. We have also placed a precious stone at the center of the bottle (much like the way precious gems are used in the watch mechanism), in order to make it look royal. The long-lasting, timeless nature of the perfume exhibits its strength and protection. All of these characteristics of the bottle are furthermore enhanced by a sturdy wooden-box packaging that cocoons this royal piece of art and makes it even more precious. We also researched the font used by Audemars Piguet in their watches and decided to use the exact same font to maintain the feel and look of the brand. The deep emerald green used is the signature color of this brand, which is associated with royalty and not only makes the bottle look regal, but also stand apart.

GLOBAL FRAGRANCE MARKET The fragrance and perfume market represents the most important sector of the cosmetics and toiletries industry. By the end of 2016, the global market for fragrances and perfume is estimated to be worth about $40.5 billion. It is also relatively concentrated, with Paris, New York, and Geneva being major headquarters.

The market is forecasted to exceed $45 billion by 2020, driven by robust demand in emerging markets, continuous and effervescent product innovation, and growing prominence of male grooming products. The global market for fragrances is expected to continue its steady growth, supported by Europe and the United States as the largest market worldwide. Rising consumer interest in cosmetics and personal grooming, changing lifestyle trends, rapidly improving economic environment, highly under penetrated markets, expanding young population, and dominance of cheaper mass fragrances offering significant opportunities for trade-ups to premium and exclusive perfumes, represent key growth drivers in these market.

Men’s fragrances are projected to witness the fastest growth over the next 5 years driven by the rising focus on personal grooming. Traditionally perceived as a woman’s category, fragrances and perfumes are rapidly penetrating into the daily routine of the modern-day man due to the increasing importance given to looking good and smelling good.

Future growth in the market will be driven by the growing popularity of natural fragrances, strong growth in men’s fragrances, and growing popularity of celebrity scents.

This graph shows us the percentage of fragrance consumers and the percentage of fragrance buyers for each age group. Here, we can see that the group that buys and consumes the most is men aged between 35-49 years.

Most of the consumers buy one perfume every 6 months, with the exception of the youngest and oldest sector, which have the lowest consumption.

MARKETING STRATEGY i Product For the last 3 years, the brand has been working on the creation of the scent and the vision of Intemporel, a unique fragrance that is inspired by the brand’s core values and aesthetics. It is a true representation of what the brand stands for and every aspect of it- be it the design, packaging, name or the font - ties back to Audemars Piguet

ii Personnel According to research, young men aged 25-34 represent the biggest opportunity to the fragrance market: almost eight in ten men in this age group use fragrance, and are also twice as likely as men aged 35-44 to spend a lot of money on grooming products and cosmetics. They also own more than one fragrance and 22% own four or more bottles.

The niche-luxury sector may be smaller in the men’s market than the women’s, but it is exerting a creative influence on the wider men’s fragrance market. Men aged between 3544 are one of the key target consumers for our perfume as they are the least likely to find fragrance expensive, as well as most likely to use fragrance to express their personality.

The company wants to retain its existing customers and stimulate them to purchase their newest offering – but at the same time aims to attract the older millennials - working professionals between the age of 30 and 39.

Being the first watchmaking house to step into the fragrance and perfume industry,

Audemars Piguet carries on its tradition of innovation and aims to build new emotional and sensory experiences in order to build a long-term association with their consumers.

The fragrance gives the company a chance to tap into the millennial market by providing an entry-level product for consumers to get a chance to get acquainted with the brand.

The target consumer for Intemporel is a self-made and focused man who follows his own path. Aged between 32-55 years, he is refined, sophisticated and determined. A go-getter, he plays by his own rules and challenges the norm.

iii Place Although, historically, perfume has been the mass-market entry-point for consumers seeking a slice of a brand beyond their budget, brands are increasingly seeking to bolster their premium credentials through limited distribution. The focus will be on the instore experience in order to bring the fragrance to life. The company plans to spend a considerable time and investment on sampling and experiencing the fragrance via “exclusive counseling� at the points of sale, using innovative tools and highly trained staff.

Therefore, the perfume will be sold through already Audemars Piguet’s Flagship stores in major cities such as Singapore, Macau, Las Vegas, New York City, Miami etc. Additionally, it will have a very exclusive distribution network consisting of only a limited number of perfume boutiques.

Some of the high-end, elite stores such as MiN, Osswald Parfumerie & Luxury Skincare and Aedes Perfumery Boutique in New York City, Nose in Paris, Parfumerie Trésor in Hong Kong will carry the fragrance in-store only. The limited availability of the product lends itself to the high and exclusive pricing strategy employed by the brand. The locations selected are all in the main luxury hubs of the world, and have an established reputation for carrying high-quality, exclusive products.

iv Price The fragrance will retail at $800 for 3.4 fl oz. in the United States (or €700 in Europe and HK$ 6,200 in Hong Kong). As illustrated in the brand positioning map, the price is set keeping the competitive landscape in mind. On one end of the spectrum are exclusive, ultra-luxury brands like Clive Christian, with product offerings going up to $6,500 per ounce, while on the other hand, premium brands such as Dior and Gucci retail some of their iconic fragrances at $100-$150 for a 3.5 fl oz. bottle.

Audemars Piguet aims to play in the ultra-luxury segment of the niche perfume market, and Intemporel being their first foray into the fragrance market, the price is slightly lower than the some of the brands in the same segment.

Based on the response, Audemars Piguet plans to diversify its offering and also launch Limited Edition fragrances in the future that will compete in the ‘pure-play luxury’ segment.

v Promotion 1. Launch party The fragrance will be revealed officially on January 19th, 2017 at the Salon International de la Haute Horlogerie (SIHH) which is scheduled to take place from January 16th - 20th, 2017 at the Palexco in Geneva, Switzerland. SIHH is an invite-only trade show put on

by The Richemont Group in collaboration with a few independent luxury brands, which is put on annually in Geneva. This five-day event is held exclusively for the watch and jewelry industry including press and retailers, and will be the perfect platform for the brand to unveil Intemporel.

The brand’s team of ambassadors which includes a number of famous sportsmen American basketball star LeBron James, famous soccer Lionel Messi, cricket legend Sachin Tendulkar, golfer Lee Westwood and Rory Mcllory, Wimblelon champion Serena Williams and Novak Djokovic will attend the launch party, a VIP black tie dinner, in a pavilion dedicated specially to the occasion at the SIHH. The private event will be open to a select few guests - loyal patrons of the brand, celebrities and the world’s crème de la crème who will be the first to experience the exceptional perfume. The guests will also get the chance to experience unique cocktails created by Colin Field, using ingredients that are inspired by the perfume.

At the end of the night, invitees will get to take home an exclusive gift package that comes with a 0.3 fl oz. miniature of the actual perfume bottle and a tiny book – the size of two postage stamps, explaining the origins and qualities of each note and the design of the unique bottle.

Invite for the launch event

2. Print/Digital campaigns Before the official launch party, the brand will focus on developing a marketing strategy and creating memorable advertising campaigns in order to generate buzz around the product by highlighting its key features – the design, unique aroma and distinctiveness combined with superior ingredients.

To successfully advertise the fragrance, Audemars Piguet will link the perfume with an abstract idea that identifies Intemporel, such as masculinity and sophistication. When buying a perfume, consumers look for an intensely personal, sensuous, almost narcissistic, pleasure, which comes from holding and opening an aesthetically pleasing bottle and breathing in a unique scent that conveys a sense of luxury and personal satisfaction.

The campaign message is “Because what becomes timeless was once truly new”.

Like any other pure luxurious brand, Audemars Piguet holds an essence of being everlasting. They use legends belonging to every field as their ambassadors to personify this core DNA of the brand. Hence, Intemporel will also hold these essential qualities as a product. Just like every great man in history started out as an amateur and they were once truly new before they became legends.

The print advertisements featuring the famous Serbian tennis star Novak Djokovic will appear in men’s magazines, such as GQ and Esquire; and lifestyle publications targeting an affluent audience - Robb Report, Upscale Living and Dolce Vita.

This is not the first time the brand has collaborated with the sportsman, Djokovic has been associated presenting the Royal Oak Line watch in 2011. The sportsman is profoundly familiar with the brand’s heritage and values, and shares the house’s philosophy. Djokovic reflects the chosen target audience that would wear the fragrance.

“I truly admire both the traditional and modern aspects of the work accomplished by Audemars Piguet,” he was quoted as saying. It was logical for the company to invite this extraordinary player to be the brand’s ambassador for its first fragrance. Above and beyond his undeniable tennis playing abilities, Audemars Piguet appreciates the generosity and altruism demonstrated by Novak who is involved in a number of charitable endeavors.

In addition to the printed media campaigns, the company will focus on events which attract the type of demographic that has the desire and ability to purchase the perfume.

The brand will participate in high-end exhibitions in cosmopolitan cities around the globe to promote the fragrance, including the Millionaire Fair that takes place in Amsterdam, Moscow, Antwerp, and Shanghai; DeLuxe in Italy, Singapore, Monaco; Hainan RendVous in China; and Art Basel in Miami and Hong Kong.

Print Ads featuring Novak Djokovic

Print Ads featuring Novak Djokovic

BECAUSE WHAT BECOMES TIMELESS WAS ONCE TRULY NEW.

3. Social Media Social media presence is a way to attract the millennials and has opened a continuous dialog between the brand and its consumers like never before.

Before this, their presence on social media was very diminished but because they are now targeting a part of millennials they have decided to make their virtual life more prominent. The launch part will anchor this change. And their Facebook page, Instagram profile, Snapchat and Twitter will be bombarded with Live videos and feeds. The brand will ensure that all channels co-exist in an ecosystem that curates customer experiences and drives results. A video advertisement will be a part of the digital campaign and will be released on the brand’s official website, YouTube page and Instagram account.

Facebook Updates

Instagram Feed

vi Positioning Intemporel has a niche client base, and with its unique formulation and packaging, it falls in the same quadrant as some niche brands like Clive Christian, Hermes and Creed. The brand positioning chart below illustrates how the perfume is placed in the competitive landscape as compared to other fragrance as well as lifestyle brands.

Exclusive

Premium

Luxury

Accessible

Marketing Timeline The below chart illustrates the marketing timeline from the inception of the product to the launch and distribution. Various factors such as market research, technology assessment, competitive review, strategic planning, product development and sales are plotted on a 3-year calender. The Launch date of the fragrance will be January 19th, 2017.

TARGET CONSUMER The new customer for Audemars Piguet’s fragrance is eclectic. He is a self-made man that wishes to be unique, and knows what he is doing. He does not rely on a single brand - he wants a creative mix between Givenchy and Zara that shows who he is, what he has decided for himself and the taste he has. However, eclecticism has some limits. He still wants to belong to a group and be rewarded by this group for the choices he makes. He wants to be similar to a very small number of individuals that he has selected as part of his small tribe. Also, he does not look only for functionality in his products, but also how they fit into the imaginary world that he has created for himself, leading to his own vision of luxury in general.

Demographics:

Psychographics:

• Age: 32-55 • Gender: Male • Income level: Upwards of $250,000 • Education level: Master’s degree, Ivy League College • Marital or family status: Single/ married/ divorced/ living with a significant other •Occupation: Entrepreneur, high level executive

• Personality: Outgoing, strong, active lifestyle, progressive, dares to be different, well-educated, art-lover, joyful, successful, charming, self-made, bilingual, determined, focused, refined, explorer, witty • Attitudes: Ambitious, loyal, stylish, refined, sophisticated • Values: Family-oriented, independent, grounded, spiritual, humanitarian • Interests/hobbies: Sports, traveling, adventure, reading • Lifestyle: He likes to live to the fullest • Behavior: Well-mannered, polite, courteous

What makes Audermars Piguet special is the continuous innovation of their products and services. This is their philosophy, which is perfectly embodied by their bolstering strategies. Intemporel is built on the same foundation. It is coherent with the brand’s DNA and evokes the customers into a new realm of a unique blend of fragrance and artistry created by skilled perfumers.

Bibliography Kapferer, J., & Bastien, V. (2009). The luxury strategy: Break the rules of marketing to build luxury brands. London: Kogan Page.

Som, A., & Blanckaert, C. (2015). The road to luxury: The evolution, markets, and strategies of luxury brand management. Singapore: John Wiley & Sons Singapore Pte. Chevalier, M., & Mazzalovo, G. (2008). Luxury brand management: A world of privilege. Singapore: John Wiley & Sons (Asia). @. (2014). Luxury’s 25 Most Innovative Brands: Audemars Piguet. Retrieved November 12, 2016, from http://robbreport.com/watches/luxurys-25-most-innovativebrands-audemars-piguet History of watchmaking - Fondation de la Haute Horlogerie. (n.d.). Retrieved November 12, 2016, from https://www.hautehorlogerie.org/en/encyclopaedia/historyof-watchmaking/ Gurney, J. (n.d.). How the watch industry invented Sports Luxe. Retrieved November 12, 2016, from http://www.gq-magazine.co.uk/article/how-the-watch-industry-inventedsports-luxe Audemars Piguet – Swiss Luxury Watches. (n.d.). Retrieved November 12, 2016, from https://www.audemarspiguet.com/ Fragrances and perfumes: A Global Strategic Business Report, Global Industry Analysts Inc., March 2015 Kerin, Hartley, & Rudelius, 2011, p. 11 http://wwd.com/beauty-industry-news/ fragrance/alexander-mcqueen-launches-a-fragrance-house-10366806/

Marketing of Luxury Goods

Alejandra Murillo, Linh Duong, Pooja Khandelwal and Ravneet Sachdeva

2016