Jewelry Brands Need to Add More Perceived Value

Brand image can be positively or negatively affected each and every time a shopper or customer can create a perception of the company, the brand or its products and services. Jewelry marketers can create perceived added value in their brand image in a multitude of ways including educating and informing customers of the benefits derived through the ownership, gifting and self-gifting of jewelry. The concept of moments of truth is based on a customer's availability of gaining perceptions about a company or brand at any time. As I stated in the intial blog "Jewelry brands should understand that finding new ways to increase the perceived value of their brand is exactly the right course of action during these value conscious economic times." How many jewelers have considering using the new word in the dictionary- stacation. The word means taking a vacation without travelling to another location. The point is using the word can help promoting jewelry through viral marketing. The buzz word stacation allows jewelers to remind women that they might not be travelling far for their stacation, but the activities that they plan to be involved in should include a new piece of jewelry to complement their outfits. What about a new piece of jewelry to make a old outfit feel like it was brand new? A new piece of jewelry can be the focal point for an entire outfit. Jewelry marketers should be using the concept to position selling a new piece of jewelry. This sort of education is an example of how a local jeweler can improve their brand image. Customers appreciate receiving relevant information. Using a new word that just was accepted by the dictionary is a good strategy. Leveraging viral marketing and buzz marketing can create improved perceptions of a jewelry brand. Suggesting ways to get more use out of a jewelry customer's existing wardrobe is an approach that supports the current value orientation of consumers. Showing a customer how a new piece of jewelry can make her feel great while wearing her existing wardrobe is a valid approach to increasing the perceived value of a brand.

Tim, I think we’ve pretty much beat up this topic and are ultimately on the same page. Thanks. Let me just contribute something in closing that I think every one of your readers would see benefits from if employed in their marketing strategy. It's a report published on Knowledge@Wharton that specifies what tactics contribute to a great brand. What I think comes through is that while each part contributes to a great brand, for the most part, they are the most basic building blocks that operating together can create a brand without the resources necessary to create the image we often associate with brand. I encourage you to go to knowledge.wharton.upenn.edu/index.cfm and if this link doesn’t work, Google keywords knowledge and wharton. On the knowledge@Wharton’s home page click on the article “Getting to Wow…” for an excellent review of the elements that contribute to the wow factor or wow experience for consumers. Being from Wharton of course, the article is based on responsible research. There are no surprises or revelations for most retailers who review the report. What’s interesting is where the different factors rank, especially in terms of age group. Additionally, you find that achieving the wow factor is something a retailer can eventually achieve by starting today. It’s what the very few jewelry brands that are true brands implemented long ago and which are IMHO at the foundation of their success, and the elements that must be constantly watered by everyone in the organization in defense of their brand's continued appreciation. Luis de Agustin

Luis, let's go back to brand image. LensCrafter had different marketing objectives than building brand image and was trying to educate consumers to the fashion value offered by a product that too many consumers feel is a necessity. Building a more positive brand image is exactly what every jewelry comapany should attempt to do. Brand image does support a higher return on investment.

Tim, I’d like to just address your question of what the (superior) margins on eyewear may be. You may well ask. My understanding is that the margins in eyewear, particularly higher end retail or designer are many keystones. From the point of view of plastic, the pricing could be called highway robbery. Plastic is not what is being sold, anymore than true brand jewelry is selling silver. But I think we’ve already traveled beyond this in our exchange. One reason for the margin in prescription eyewear is the considered medical element of the product – which is interesting, considering that Lenscrafters practically avoids it as a feature and wishes to strengthen the emotional and fashion element as its brand basis. Yet the irony is that need of a vision product is what brings the customer. Ask your self, would you buy a pair of prescription glasses otherwise? The company takes that need and moves the customer up the needs hierarchy and upsellls to boot. Markups on jewelry from major brands may not hold their own against eyewear but the retail Shangri-La for those firms that correctly cultivate the seeds of brand, I know you agree, reap much richer fruit. Luis de Agustin

In the May issue of JCK I wrote an article addressing some commonalities between selling wine and jewelry. Here are some similarities and differences I see between eyewear and jewelry. Similar to Jewelry Both products may be viewed as luxury purchases Suppliers offer quantity discounts to retailers and point of sale displays may be available some retailers offer insurance to customers Industry lead product designers Both eyewear retailers and jewelry retailers attempt to work synergistically with their sales force, employees, and factories Customers are influenced by style and color Customers may be influenced by celebrity endorsements Half of the market is dominated by independent retailers Eye wear and jewelry suppliers combine branding and style selling stylistic quality and durable Challenge is to educate consumers to the possibilities to the product as fashion accessories Like to use TV to promote positive moments and premium magazines in fashion, lifestyle, cultural and entertainment targeting both men and women and the ads feature people wearing the product Also use direct mail catalogs, postcards, newspaper inserts, in-store graphics, public relations, online search engines, web marketing and micro web sites, and social networking Current strategies often attempt to enhance the product image Salespeople trained to focus shoppers on the right style rather than the right price Both product lines have relatively higher margins as compared to other retail products Different from Jewelry Eyewear is seen as a necessity by too many consumers and not as a fashion accessory-where jewelry is readily identified as a fashion accessory and the emotional rewards of jewelry are evident to many more consumers Consumers relate to sunglasses and jewelry as fashion accessories- but not eyewear to such an extent More exclusive retail channels- not carried by as many retailers as is jewelry Retailers can order as few as one unit/item at a time- Many jewelry suppliers have minimum order amounts that can run into several hundred or thousands of dollars Eyewear suppliers promote easy stock balancing/product return terms Promote latest in production technology- Seldom mentioned to jewelry shoppers Eyewear web sites are using technology to educate consumers on various face shapes and appropriate eyewear More limited distribution channel that promotes higher margins to some jewelry items

Your comments certainly do bring up some disconnects in the LensCrafter’s promotional strategies. I will approach your comments first with a focus on our original topic- brand image and secondly on the company’s marketing disconnects. Brand Image Strategies are Different for Eyewear than Jewelry According to Marketing Daily, LensCrafter’s advertising objective has been “to awaken consumers to the possibility of optical glasses as fashion accessories, like shoes, lipstick, handbags and even cell phones.” Consumers largely accept jewelry as a fashion accessory and do not accept exhibit such a broad acceptance for eyewear as fashion accessories. The company is trying to position eyewear as a fashion accessory and uses advertising media similar to jewelry brands. The company’s typical ad spend includes television, premium fashion, lifestyle, cultural and entertainment magazines, direct mail catalogs, postcards, newspaper inserts, in-store graphics, public relations, online search ads and content on the web site . . . all strategies used by many jewelry brands. Like jewelry retailers, LensCrafter’s desires to be perceived as up-market and position an image of the brand as a fashion purveyor, not just as a product category retailer of eyewear. What we can draw from this comparison is that the brand image objectives of eyewear brands and jewelry brands are clearly different. Jewelers have a tremendous advantage over eyewear retailers due to the fact that most consumers can immediately relate to the emotional and fashion benefits of wearing of jewelry. Eyewear retailers are burdened by the overwhelming challenge that too many eyewear consumers view the need to wear glasses as a necessity and not as something fun or exciting. So the advertising strategies must be very different. The Marketing Challenges and Needs are Different The challenge LensCrafter’s is facing is different from jewelry retailers in that consumers clearly underestimate the power of the right pair of glasses has to make them feel good about themselves and complement their individual fashion statement. So the company is combating the current market perception held by too many consumers that eyeglasses are only good for the functional use of vision. According to the company, most customers haven't realized they can have fun with eyewear and how great they can feel when they wear a pair of glasses. Jewelry like other fashion accessories like shoes are things that make consumers feel great when they are wearing the right one. Eyewear brands are trying to move the perception of their product closer to one many consumers hold for sunglasses. The category of sunglasses has evolved to be recognized as a fashion accessories promoted by well-known designer brands. The Marketing Objectives Must be Different So your example is about a branding strategy to make people think differently about the product. This is not a common strategy required by jewelry brands. Jewelry brands are very fortunate to be perceived as being such a powerful fashion accessory that offers plentiful emotional rewards. Experiential Marketing is Different from Brand Image I compliment you for identifying LensCrafter’s questionable ability to deliver a consistent and desirable LensCrafter’s shopping experience. However, it would be an oversight to conclude a company’s inability to understand and effectively leverage experiential marketing is due to their preferred advertising theme and objectives. I suggest the company is trying to promote the first thing people see when they see you when are wearing glasses is your glasses and that wearing glasses is something fun to do. That’s why they used the human hand to “frame” your view. It helped direct the eye even more to each model wearing glasses. Something Eyewear is Doing that Jewelry Brands Could Be Doing Some eyewear web sites are more advanced than jewelry sites as some offer a face-shape selector where a shopper can upload their photograph and receive product recommendations for products that best complement the individual facial features and current product fashion and style. According to the Vision Council of America (VCA), there are seven basic face shapes: diamond, oval, base-down triangle, base-up triangle, square, round and oblong. There are several jewelry brands that could benefit by providing training to sales associates to help them better support select the right jewelry for shoppers. LensCrafter’s Disconnect Not Mutually Exclusive to the Company Luis your comments based on your inside information regarding the lack of training and education does support your contention that it can lead to a disconnect with advertising objectives. And I agree with your comment that this occurs in many other industries, including the jewelry industry. In my own opinion, there are too many professional marketers that have not developed the knowledge or understand the skills and other requirements necessary to be successful sales professionals. Too many marketers fail miserably when it comes to knowing sales or supporting sales activities. Too many companies do not create their marketing plans and promotional plans with marketing objectives that seamlessly integrate completely through transaction exchange. Too many marketers think their job is done when their programs deliver a shopper . . . and we all know that is simply not true. Brand Image is not Product Education Luis when I watch the video you offered I see a company trying to educate consumers to the fun of wearing eyeglasses and trying to demonstrate how impactful a pair of glasses can be one’s personal appearance. Is LensCrafter’s to Eyewear as Be Deer’s is to Jewelry? Without a doubt, the jewelry industry has benefitted greatly from the advertising sponsored by De Beer’s over the several decades. What De Beer’s has done is position diamonds (and diamond jewelry and jewelry in general) as being very valuable, very fashionable and very emotionally beneficial. This has been done through educating the consumer. I see LensCrafter’s as attempting to educate consumers on the “fun of wearing eyeglasses” and the “emotional benefits of wearing fashionable eyewear accessories.” Brand Image is not Product Education Luis your points of lack of education of sales associates may be very valid. Once again, your inside information is something others will either accept or deny. What is factual is that creating branding strategies to promote brand image are very necessary for all brands and are very different from providing product education. Brand image is necessary and when effectively implemented, can help a brand’s product acceptance and sales improve. LensCrafter’s is still working on gaining more product acceptance as a fashion accessory. Jewelry brands are in a far superior market position as compared to eyewear retailers . . . and yet the margins in eyewear may be superior to jewelry. Why is that? How might ex

It may appear, Tim that since we’re essentially in agreement on the topic of brand and its meaning, that we’ve come full circle, but on the way I acquired a fuller understanding of the issue. Further to your very rich July 1 post, I’d like to just pursue what I think is ultimately the make or break contingency of a successful brand strategy, and so I reference your “What a jewelry company desires the brand image to be and what the brand image is reflected to be in the marketplace can be very different.” To be sure, and it’s not uncommon. Any number of reasons on the branding continuum will contribute to this defect. It’s too broad an area to deal with here. Instead, let me offer an example of what IMHO is an incongruity between what a major corporation wants its brand to be and therefore the advertisement campaign, and the market’s perception of it. The company is America’s largest prescription eyewear retailer, Lenscrafters, and its recently introduced Eye Love or We Love Your Eyes branding campaign. Here’s a link to one of its ads available on Youtube www.youtube.com/watch?v=w1-IDfWIPmU – if you can’t link to it, visit Youtube and use keywords Lenscrafters, see what you love, beach. The series of ads has a wonderful concept and promotion; however, to my mind it raises questions about the strategy. Clearly the intent is to develop a purely emotional connection between the market and Lenscrafters. The question for me is, is there an emotional experience as articulated in the ad going on at Lenscrafters for the customer? If not, can the feeling implicit in the ads move the customer to sense or construct the sublime message to the point of making the experiential association? The answer to the question is worthy of debate, but for now and near future, I happen to know that at least from the point of view of their sales staff, they are not providing it and it therefore won’t materialize through the power of the ad campaign. Of course, this is a different issue, and one that is also way too common (the company wants an experience to occur but fails to provide the major investment in training and education necessary for the staff to have a chance at achieving newly desired behaviors). Yet, it is part of the reason marketing objectives often blow up. Back to the ad campaign, I see incongruity between the ad and the Lenscrafters setting at least, and the Lenscrafters experience certainly. To me, this sort of ad is suitable farther along the conceptual path of the marketing strategy. I think the Lenscrafters experience is insufficiently mature for including such a completely emotional based motivational advertisement. Other types of advertising presentations I think have to lead up to it. It's questionable if you can get to the kind of response you want in people by simply putting out the ultimate feel good advertisement before you've established other identifiers for your brand. Now, I could be completely wrong, and after you view the ads, you may think so. There are just so many ways to approach this – which makes what you do constantly rewarding and difficult at the same time. On your last point in your post, again I concur. Yes, a congruent brand is pure gold, and can constitute the soul of a company. Jewelry companies especially, because they actually have a gimmie based on the inherent emotionally tied purchase process, are wise to consider your advice in this column. My caveat is that achieving what’s desired by means of making the right choices can appear deceptively easy. Lenscrafters’ attempt I hope achieves the executive suite’s objectives. It’s early still, but it may be one example of ambitions for an image unsuitable to the capacity for execution on the ground to meet its demands. Luis de Agustin

Well done Luis! I appreciate your articulate approach to branding. Let’s start with brand and agree it refers to a customer experience represented by a collection of images and ideas. Customers are going to have perceptions of any jewelry company, brand or product. Jewelry companies can influence but not control the perceptions of customers and shoppers and stakeholders. It is important to recognize that a market position is the sum total of all perceptions of a brand. A jewelry company’s brand image relates to the customers perception of a brand-what’s in the minds of individuals. The brand image is a mirror reflection (and can be inaccurate because it is based on a person’s perception and not facts) of the brand personality. It is what people believe about a brand . . . the customers’ thoughts, feelings, and expectations. Managing customer expectations is a very important task for everyone working in a jewelry company to be aware of. Brand personality refers to the psychological nature of a particular brand as intended by its sellers, though persons in the marketplace may see the brand otherwise . . . called brand image. What a jewelry company desires the brand image to be and what the brand image is reflected to be in the marketplace can be very different. This reminds me of one of my favorite definitions of marketing- that space in the customer’s mind that the company desires to occupy. Lastly, brand loyalty is extremely important to all jewelry companies and relates to the degree to which a customer consistently purchases the same brand within a product class. All jewelry companies are dependent on developing loyal customers. Branding is a well proven means to helping customers better understand why they uniquely benefit from being loyal to a jewelry company. It is a mistake for any jewelry company to not attempt to have a positive influence on stakeholders perceptions of the company, brand and products. Brand image helps a company do this.

Thank you for your follow up to my response to your post, Tim. I reviewed my post and I believe I found the point you seem to be in disagreement with, and which otherwise I believe we are in full agreement. That point of contention is that I say (great) brands are few and suggest they require time and concerted strategy to build. I can well understand that in an age where we are now told that each of us as individuals has a brand and should concern ourselves with its design and defense, that it’s believable there’s an absolute about all companies and products having a “brand image.” Now, I’m not sure if your use of “brand image” and my use of “brand” are the same (I think that before you have a brand image you must have a brand); nevertheless, I think my concept of brand is perhaps old school, and yours is more free or just sees brand substitutable for image (which I don’t think is interchangeable with brand). I think that a substantial and distinguishing difference between them is in how they are achieved. Brand image can be achieved by one or more people strategizing to interpret customer motivations, objections, image issues, then translating those findings into a compelling marketing concept and executing it. Brand is identified not by the brand owner but by the customer. It’s a fundamental difference. Taken to its logical end, it’s the difference between the experience a company wants a customer to undergo, and the experience experienced by the customer. Let me also mention that I’m perfectly aware the brand is an emotional construct. Emotional elevation is what branding needs in order to discommodity a commodity and have it be perceived as something worthy of three, ten times its objective value. I think this is something else we are in agreement and which you correctly recommend to your audience. Find the sweet spot and you leverage your efforts many times. Thanks, Tim. Luis de Agustin

Here is one absolute Luis . . . all companies and products have a brand image. Owners and managers can decide to build more perceived value or they can ignore the opportunities to do so. Bottom line, all companies and products have a brand image which is made up of the individual perceptions of all stakeholders. Consider the concept of moments of truth which occurs anytime anyone can gain a perception of a company or a product. Obviously, management cannot control all of these. However, every company and every product is far better off with well defined brand objectives. Training sales associates how to more effectively present a branded product can lead to improved perceived value. The interesting thing is that perceptions are very subjective and not always factual. There are many additional opportunities available once brand managers and jewelry marketers understand marketing is about perceptions. There are many few absolutes when dealing with the perceptions of customers. Think of some of your favorite companies and products. What makes you prefer them? Sometimes our rationale is more emotional than rational. That's where perceived value becomes very important to marketers. What the customer thinks and feels is about perception and may not factually represent reality. What wonderful opportunities for marketers!

The problem with this kind of discussion is in turning it into one of absolutes. For one segment of the market, brand is meaningful and therefore significant in making a purchase. To another, brand association is secondary to view of suitably fulfilling a want without a brand reference point. To others it’s a bit of both influencing their decision. If Hedda, JCK’s editor at large is right about image being dead (as the poster puts it), brands should be concerned, because image and selling it to brand conscious consumers as an association to a little bit of magic is really what they depend on (reasonable quality and service are table stakes). One well know jewelry brand’s ten 20 dollar silver signature bracelets that sell for 200 dollars are considered irrelevant by the “rational consumer” and must have by those consumers who believe in the beauty of that company’s powerful brand. The article’s title regards jewelry brands as needing to add more perceived value. This takes a long time to achieve because to be perceived it in fact needs to be experienced really or symbolically. In other words it’s achieved through building, and the reason why great brands are few. The time, strategy, diligence for perception to be manufactured as aimed, for what is in almost all cases essentially not unique or special or absolutely new, means most manufacturers and retailers cannot hope to alter perceptions with anything but organized and concerted effort. It’s a deep, long term thing and not just something to get through a recession or the next trend. Luis de Agustin

Wow outstanding, I am currently re-working my business plan and
this is truly some food for thought.

Tim Malone is right on the money with his article and comment. As
we emerge from the most severe recession in world history, everyone
is trying to figure out what the new consumer is going to look for.
What Hedda said at JCK is true; image buying is over but, the
consumer still will look for style and quality. Therefore, it
becomes obvious that value + image = the successful brand.

The point is . . . luxury fashion brands are spending more to
create more perceived value for the brand because consumers are
more value conscious today. Jewelry brands need not necessarily
duplicate the same approach (using high priced fashion models) as
there are many other ways to create more perceived value for a
jewelry brand. Think about a brand's promise to consumers. What
does the brand promise to deliver? How can an enhanced image of the
brand build more perceived value? What sort of brand messaging is
needed to improve a brand? Jewelry brands can help build buyer
confidence to adopt various fashion trends. Consider how so many
jewelry brands spend too much on emotionally conveying the brand
without developing content that helps educate why a customer should
prefer the brand's products. Providing a beautiful model wearing
jewelry in a provocative pose has been done over and over . . . and
with success. However, there is a reoccurring problem of a lack of
recall by consumers. Too few consumers can articulate the unique
benefits of jewelry brands or readily identify the brand's design
motif. How many viewers can recall the name of the brand after
viewing many of today’s jewelry advertisements? Jewelry brand
advertisements need to provide more content to educate consumers
why the branded jewelry will better accentuate their individual
approaches to fashion, gain immediate acceptance from a
customer’s reference group or offer the sort of exclusivity
that projects the individuality that so many fashion conscious
consumers are looking for. How can the brand be perceived as being
more valuable to the customer? What can the branded jewelry do for
the customer that no other jewelry offering can match? How can the
brand deliver more value than any other jewelry offerings? Find
answers to these questions and you will increase the perceived
value of your brand. Thanks for asking how a manufacturer can
afford more expense. My response is . . . how can any brand afford
not to create more value if it increases sales? Knowing how to
create more brand value is the best approach to deriving a good
return on investment. Lastly, jewelry brands should not rely too
heavily on retailers to independently create perceived value and
quality. Retailers will perform better wtih lots of direction and
support. I am working with companies that want to better educate
their retailer’s sales associates. Marketing programs need to
build brand equity. Training and educational programs are necessary
for jewelry brands to maximize their market opportunities in
today’s value conscious economy.

Dear Tim, How can any manufacturer justify an increase in value by
using high priced celeb's that only add additional un-needed
expense to their product, each company uses its dealer structure to
promote quality and value, this is more ego than value.