Swarovski Commercial: State of Grace

Week 8 - Advertising and Public Relations

        Swarovski is a well known brand throughout the world. It offers exclusive and affordable jewelery that makes a woman feel beautiful and luxurious. How Swarovski made itself known? What makes us to buy its product? I think, beside the sparkling and innovative beauty that lures so much attention throughout the world, the advertising plays a big role in developing  a market.

        Swarovski being a well established brand doesn't need to advertise its product anymore. The company uses institutional advertising techniques, that is designed to enhance company's image rather than promote a particular product. Swarovski's commercials are all about women and their inner feelings. It underlines the inner beauty of a woman, her grace, sensitivity and sexuality. Women in commercials don't even have much clothing. It's all about purity of inside and outside, the purity of crystals that come clean out of water. The commercials create a very mysterious but yet intriguing mood that makes you go to the store and find out more about its product.

      Swarovski is a part of global marketing and widely presented in China market. To relate to the Chinese target market, the company invited he first Chinese "Miss World" to present its watch collection. Zhang Zilin actively involves in watch campaign. At a promotional event for the Swarovski watch collection in Hong Kong in April, she shared her insights into fashion with guests from the Greater China region: “Women in modern China are versatile and live colourful lives. Feminine charm is accentuated by elegant and unique timepieces. Swarovski watches are superb in both appearance and functionality, and when adeptly combined with pure, multifaceted crystal, they integrate style and imagination into the lives of urban women and can justifiably be considered as masterpieces of modern fashion,” says Zhang Zilin.

         Public relations play an important role in Swarovski's promotion. One of the major Swarovski's public relations tools is product placement. It helps the company to reinforce brand awareness and create favourable attitudes. Swarovski's jewelery cane be seen in movies, television shows, newspapers or audio clips. For example, Swarovski jewelery can be seen in the movies like Sex and the City 2, The Phantom of the Opera, Oceans Thirteen or James Bond- Die Another Day. The company is presented in stunning rings, necklaces, chandeliers and elements of a gown in those movies.

Week 15 - Retailing

     Swarovski is present on the market not only in United States but all over the world.  Swarovski's global retail operation comprises more than 1700 stores in 120 countries. There are more than 230 retail stores in the United States. New York City has 21 locations either in a speciality store format or as a part of department stores like Macy's, Lord and Tailor or part of Columbus Circle Shopping Mall. Lately, Swarovski can be seen in Jefferson Kennedy airport and casinos like the Venetian Las Vegas Resort Hotel Casino. Swarovski stores can be very glamorous or approachable in a sense of decor. For example, Swarovski in Rockefeller center is a good example of unique, high profile store with gorgeous chandelier and crystal wall.

     I visited Swarovski's store in Columbus Circle Mall that is located on 59th street by Central Park. The store's physical appearance lures eveyone's attention with its dim lights, sparkling crystals and dark blue background. I have been to many Swarovski's stores but this one in particular is one of my favorite. It always has very attentive customer service with knowledgeable stuff.  They always look appealing and approachable in black suits and Swarovski's jewellery on. Another thing that brings me always back is the product placement. Affordable jewellery is located on the stands where it's allowed to have a close look at the product, touch it and try it on. The more expensive pieces of jewellery are in the glass cases where they sparkle and bring many curious customers. Unfortunately, the store manager didn't allow me to take pictures inside so I just have a photo of the store from the outside.
    As  far as the location the store has, Columbus Circle is perfect for Swarovski. Being in the center of Midtown it brings many new yorkers for upscale shopping providing clean and modern facility.  From the other hand, many tourist can be seen in Columbus Circle because of the close location to the Central Park. It creates traffic that retailers want and increases sales numbers.



                                                                           

       Swarovski store is like many other retailers offers membership cards. After a purchase, a sale representative invites to be a part of Crystal Society. The entry fee is $50 and it is tax free because 10% of it goes to the Water Schools in China and India, where children learn how to preserve water. A person who decides to participate  in this program gets a big crystal stone and benefits like birthday presents and free catalogs every month with recent news about Swarovski. After certain years of being a member, he gets a privilege to get rare Swarovski's crystal editions for free. Now Swarovski also offers $25 gift card voucher for any in-purchase during the month of November at Columbus Circle location. It also supports breast cancer by giving 10% of the sales from the Breast Cancer Awareness Collection to The Libby Ross Breast Cancer Foundation.

     

       

Week 6 - Consumer Decision Making

    Swarovski's major target market is a female population of differnet age from various countries. The main thing that unites those women is love for the crystal, Swarovski's design and innovation. Women of different age have different needs. Those needs can be defined by interests, cultural background, social and economic roles played by them. All the above has the influence on their buying decision. For example, if a woman likes a charming bracelets, Swarovski has 6 different sections to chose from: love, childhood, glamour, nature, occasions, treasures. This variety gives a consumer to make a purchasing decision depending on her age, lifestyle and personality.

     Another way how Swarovski gains a customer is using life-changing events. Wedding is a very good example of it. Swarovski created Crystal Wedding Cake, Flirting Swans, Wedding Bells and etc. to give a little sparkle for the event. Most of the couples get very creative during wedding preparation, so Swarovski is giving them a chance. It uses one of the human senses-sight. Nobody can resist the beatiful sparkle of the crystals and Swarovski creates a fantacy that captures the attention of pre-wedding audience.

    Swarovski established itself as a brand from consumer's believes by giving them unique product, excellent customer service and affordable prices. In 2009 when the world was struck by economic crisis, most of the expansive watch makers had lost in sales. Swarovski with already established brand name decided to change consumer's attitude toward watch prices. It creates good quality watches with a logo "new affordable luxury" and supplies demanding customers. Swarovski relies on the consumer's postpurchase behavior by selling a product that meets there expectations. First, they think that the watch won't be as good as the expansive brand is, but after a while they are satisfied.

      

Week 5- Developing a Global Vision

      

       Swarovski is an international enterprise which is present in 120 countries worldwide, with the production in 18 countries, 1014 own-operated boutiques and concessions, 819 partner operated. Swarovski enters the USA fashion and jewelry market in 1977. The brand establishes itself in the continental Europe and Great Britain in 1989. Jewellery enthusiasts are bowled over by the brand’s classic, fashionable and iconic designs.  Today, Swarovski is among the most popular fashion brands in the world.

        Swarovski is a good example of global marketing standardization. All the factories throughout the world have the same technique of cutting and producing crystal that is only known for Swarovski. Its collection features some of the most beautiful and popular components in the world of jewelry design. The same slogan "Create Your Style" could be seen in commercials of different countries. Their wide variety of high-quality, versatile products which can be used by anyone, anywhere and with anything. Constantly introducing new vibrant colors and interesting shapes designed to inspire, Swarovski is a must-have in any jewelry designer or hobbyists' collection.

         The two countries of growing interest to many multinationals are India and China because of their huge economic potential. They have some of the highest growth rates in the world and are emerging as mega markets. Swarovski is not an exclusion. China is definitely a very important market for the company, both in the industrial business and in the consumer goods business. There are many manufacturers in China using its crystal components. Meanwhile, the sales revenue for its own crystal products has also experienced very high double-digit growth rates in the past few years. The Asia Pacific region accounts for a quarter of Swarovski's business, in which the China market accounts for about 40 percent. China has become the fastest growing market for Swarovski worldwide. Swarovski entered India just 10 years ago, and is now a metaphor. The company doesn't change product pricing targeting only rich people. Now in India, it stands for New Wealth as much as bullet-sized solitaires and seven-series BMW.

       Swarovski's goal to "go global" is probably to earn additional profit. In addition to that, Swarovski have unique product that is not available to other international competitors. Even on the global market, the company has product differentiation competitive advantage. Swarovski owns all overseas manufacturing and marketing facilities. For example, it has set up distribution offices in India and these offices supply the products to local retailers. 

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