StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Why women are enthusiastic about Birkin bag by Hermes - Research Paper Example

Cite this document
Summary
Primarily, the discourse would address the following issues, to wit: (1) to determine the marketing strategy of Hermes; (2) to identify the marketing strategies of any other luxury brand;…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
Why women are enthusiastic about Birkin bag by Hermes
Read Text Preview

Extract of sample "Why women are enthusiastic about Birkin bag by Hermes"

Birkin Bag by Hermes The essay aims to proffer the rationale for women’s enthusiasm for Birkin bag by Hermes. Primarily, the discourse would address the following issues, to wit: (1) to determine the marketing strategy of Hermes; (2) to identify the marketing strategies of any other luxury brand; (3) to enumerate the reasons why many women are enthusiastic about Birkin bag (Hermes) despite inexistent commercial advertisement; and finally (4) to identify what makes the Birkin so special to women.

Birkin Bag by Hermes An Hermes Birkin bag is the “ultimate elite status symbol”, a dream of every woman in the world (Hart, 2008). It is included in Forbes magazine’s Most Extravagant Handbags list. Bag prices range from US$6,000 to US$120,000 depending on the materials used and the craftsmanship that goes with it (Prabhakar, 2007). So, why do women go gaga over a Birkin bag? What strategy does Hermes adopt making it very successful all these years despite tough competition and the worldwide financial crisis?

Where lies the “mystery” of the Hermes Birkin? According to Hermes CEO, Patrick Thomas, “Hermes has no desire to become a “masstige” (a mass producer of prestige goods) (Wright, 2009). Our strategy will be a strategy of value, not a strategy of volume; we are not in the mass luxury” (Agathe, Imadec-Bentata & Zimmerman, 2009, p. 8). They say no to short-term profit; thus, even in times of recession, few discounts are offered (Xie, n.d.) They cannot compromise the quality and the finishing of the product just to increase their sales (Wright, 2009).

Hermes strategy is centered on the respect of the legacy of the luxury brand’s history, its heritage. (Xie, n.d.) Their mission is the pursuit of excellence. They adopt a model of scarcity to preserve its prestige and integrity. They do not change their strategy according to the state of the economy (Wright, 2009). They stick to the rule of luxury, that is, even in the worst financial crisis; the world will still have rich people who would like to hold on to exclusive items that can hold value such as a Birkin bag (Xie, n.d.).

A purchase of a Birkin bag is viewed not an expense but an investment that could last for 40 years and whose price could go up to more than double as the years go by (Wright, 2009). One of the marketing techniques employed by Hermes is to keep a waiting list with high-profile customers such as Hollywood stars. They also put a “Reserved” sign on their display bag and they limit the number of Birkin sold to each customer for every purchase (Tonello, 2008 cited by AutoSurfRestarter, n.d.).

As opposed to Louis Vuitton (LV) which emphasizes marketing of their products, Hermes aims only at the excellence of their product (Agathe, et al., 2009). However, both Hermes and LV pursue a luxury pricing strategy which means high mark-ups and limited availability (Naveed, 2009). In terms of price positioning though, LV bags are priced lower than the Hermes Birkin. For LV, the fundamental pillars of their marketing strategy are innovation, differentiation and positioning (Ramaswamy, 2003).

Customers’ perception plays a vital role in the success of the Birkin bag. The perceived value of the bag is so much higher than the intrinsic value. “Hermes customers made the connection between rarity and value and rarity and social status” (Tonello, 2008 cited by AutoSurfRestarter, n.d.). Owning a Birkin screams of exclusivity (Hart, 2008). It defines your status in society. The reasons why women are so enthusiastic about the Hermes Birkin bag can be summed up into three reasons.

First is the top quality, the materials, hardware and the craftsmanship that goes with every Birkin bag. Second is the price which ranges from US$6,000 to US$150,000 depending on the leather or exotic skin used. And lastly, is the rarity or consumer distance, not being accessible to all (Tonello, 2008 cited by AutoSurfRestarter, n.d.). There is a two-year waiting list and even the rich and famous are not guaranteed a Birkin, but to them it’s well worth the wait. Only five (5) Birkins are produced every week by its Paris workroom (Hart, 2008).

The strategy is simple. High demand, low supply leads to a high price. For women, owning an Hermes Birkin bag defines their status in society. It places you in the company of the likes of Victoria Beckham, Sarah Jessica Parker, and Martha Stewart. It is more than just a product, it is an image, a lifestyle. A Birkin is like a diamond. It lasts forever (Kroll, 2007).ReferencesAgathe, G., Imadec-Bentata, S. & Zimmerman, S. (2009). Enter the luxuous world Hermes Paris: A Strategy Case. Slideshare.com. Retrieved 19 March 2011.

AutoSurferRestarter (n.d.). Personal Review: Michael Tonello’s Bringing home the Birkin: My life in hot pursuit of the world’s most coveted handbag. Slideshare.com. Retrieved 19 March 2011. < http://www.slideshare.net/AutoSurfRestarter/bringing-home-the-birkin-my-life-in-hot-pursuit-of-the-worlds-most-coveted-handbag-by-michael-tonello> Hart, G. (2008). The legendary Hermes Birkin bag. Retrieved 19 March 2011. < http://www.suite101.com/content/the-legendary-hermes-birkin-bag-a56772> Kroll, B. (2007). In the bag.

Retrieved 19 March 2011. < http://forum.purseblog.com/hermes/stars-and-hermes-6830-206.html> Naveed, K. (2009). Differentiation Strategies of Brioni, Louis Vuitton and Giorgio Armani. Slideshare.com. Retrieved 19 March 2011. < http://www.slideshare.net/naveedtaji/differentiation-strategies-of-brioni-louis-vuitton-and-giorgio-armani> Prabhakar, H. (2007). World’s most extravagant handbags. Retrieved 19 March 2011. < http://www.forbes.com/lifestyle/2007.7handbags.html> Ramaswamy, K. (2003).

Louis Vuitton Moet Hennessy: In search of synergies in the global luxury industry. Thunderbird Case Study. Retrieved 19 March 2011.< http://hbr.org/product/louis-vuitton-moet-hennessy-in-search-of-synergies/an/TB0151-PDF-ENG> Tonello, M. (2008). Bringing home the Birkin: My life in hot pursuit of the world’s most coveted handbag. William Morrow.Wright, M. (2009). Hermes will not give way to “masstige”. Retrieved 19 March 2011.< http://fashionablymarketing.me/2009/11/hermes-marketing-never-discount-hermes-birkin-kelly-handbags/> Xie, M. (n.d.). How Hermes thrives in the recession?

Retrieved 19 March 2011. < http://ezinearticles.com/?How-Hermes-Thrives-in-the-Recession?&id=3180363>

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Why women are enthusiastic about Birkin bag by Hermes Research Paper - 1”, n.d.)
Why women are enthusiastic about Birkin bag by Hermes Research Paper - 1. Retrieved from https://studentshare.org/miscellaneous/1575999-why-women-are-enthusiastic-about-birkin-bag-by-hermes
(Why Women Are Enthusiastic about Birkin Bag by Hermes Research Paper - 1)
Why Women Are Enthusiastic about Birkin Bag by Hermes Research Paper - 1. https://studentshare.org/miscellaneous/1575999-why-women-are-enthusiastic-about-birkin-bag-by-hermes.
“Why Women Are Enthusiastic about Birkin Bag by Hermes Research Paper - 1”, n.d. https://studentshare.org/miscellaneous/1575999-why-women-are-enthusiastic-about-birkin-bag-by-hermes.
  • Cited: 0 times

CHECK THESE SAMPLES OF Why women are enthusiastic about Birkin bag by Hermes

A Woman in Berlin Critique

German soldiers talked about their bravery at the fronts.... Subject: History and Political Science Topic: A Woman in Berlin 1.... (A) In desperate situations an individual's power of reason turns desperate and one becomes willing to avail any options, which in the ordinary course, one would not have accepted....
7 Pages (1750 words) Essay

A Woman In Berlin

In “A Woman in Berlin”, one may see the growing independence of German women as well as their assuming the leading role in the German society during and after the war.... The author of the diaries in the autobiographical novel describes how on April 24, 1945, which was the day the Russian troops entered Berlin, she and two other women arrived at a German hospital with lots of wounded soldiers intending to help out.... The feeling of the power is enhanced by understanding that due to the Germans' defeat the world of Nazi men, which has excluded women, “is beginning to crumble and with it the myth of “Man” (43)....
4 Pages (1000 words) Book Report/Review

Tragedies: The heart of Grecian verses. Women of Troy

To rub it in further, Andromache, Hector's widow tells her about the death of her daughter which further throws her into a frenzy of sorrow and sobs.... When Paris decided to snatch Helen from under the nose of Menelaus the Spartan king that is when things took a wrong turn for Troy and for the Trojan women.... When Paris decided to snatch Helen from under the nose of Menelaus the Spartan king that is when things took a wrong turn for Troy and for the Trojan women....
6 Pages (1500 words) Research Paper

Financial Report of the Fashion Company Hermes

The paper provides a financial report of the company hermes.... hermes has leapt throughout 2011 with the elegance of a mare agilely defrayal difficulty on the wings of a premise at the extremely center of their ethics.... hellip; This paper is hermes' financial report.... hermes history: artisans competed to produce the bulk stylish objects, facts was collective flanked by a variety of areas of know-how, a fiesta showcased our skill in numerous countries, and the Hearts and crafts film obtainable the sole profiles of our craftsmen....
11 Pages (2750 words) Case Study

Literature Analysis of Growing Heroism in America

Knowing this, the soldiers are not quite as enthusiastic about endorsing this term for themselves as the American civilians are about giving it to them.... This has caught the attention of the analysts and critics which is why, it is an important topic of discussion in the literature these days.... The article leads the reader to think that doing job honestly and whole-heartedly in America has probably become close to a miracle which is why some people who do that and come in public notice are rewarded with the status of a hero....
4 Pages (1000 words) Essay

Women in the Struggle for America's Independence

In the remaining areas northern women are being focused.... Firstly she emphasizes that where and when there were eminent men 'Founding Fathers' there were also side by side women or the 'Founding Mothers'.... Moreover she continues to contradict the conventional image of the women as a helpmate, as she points out that when during the war the men weren't home, most of the women acted in their husbands positions and managed their properties....
5 Pages (1250 words) Book Report/Review

Representation of Different Figures in Art and Science

This assignment "Representation of Different Figures in Art and Science" discusses art that is a form of communication.... It has a motivating function and intent or a goal-directed towards an individual or in the case of this discussion, a motivating purpose to unite and liberate a nation.... hellip; Art movements like Romantic Nationalism had their goals....
14 Pages (3500 words) Assignment

Analysis of Sources about Berlin

"Analysis of Sources about Berlin" paper contains sources that give the researchers of Berlin a comprehensive idea about the city by focusing on the political, geographical, demographic, cultural, historical, and socio-economic backgrounds of its current position in the world.... hellip; The study about Berlin is easy for researchers from a number of materials available for reading about the city from different perspectives.... The majority of the findings about Berlin give it the identity of a modern city in the neo-historic era which has guaranteed the multi-dimensional progress of the natives....
9 Pages (2250 words) Annotated Bibliography
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us