HBR Case Study: Competing Against Bling

Option 3: Stay on brand, change customer base and channels, monitor younger segment and develop later an additional brand for and with young target group (co-creation).

Take examples of Audi, BMW, Merc. Those brands never wanted to go into cheap segment. But they had to (Audi A1, etc). Lamborghini never wanted to enter into SUV segment but it had to. So you need to change or you will perish like Kodak.

You can also check the existing sales which are flat, what is the actual $ revenue coming from it? Maybe it is more than $ revenue that competitor is deriving from millenials? In that case, do nothing.

But what else she might be missing?

I would go with One, if I had no other option. There is no such thing as too big to fail anymore. R&S could suffer losses and be behind competitors if they are not careful.

I have no idea but this is such a cool segment. Looking forward to more of these!

I would say go for option 1. The world is just too rapid to hold on to tradition anymore in most cases. Usually, tradition translates to stagnation and you get left behind like Kodack. The loyal customer base of R&S will slowly diminish at some point or the other than R&S might tank. It is better to take a more calculated risk and evolve the brand along with the times. It is also to note that this new campaign needs to be budget-friendly as overspending on a risky move will translate to compounded losses.

Very interesting case study. Thank you for sharing with us!

I would take a bold move to go with 1. Look at louis vuitton, how virgil abloh change the whole LV marketing style and now LVMH is a top 3 valuable company. Based on this observation i would choose 1

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What about a Fenty style play by LVMH? Keep the R&S brand as is to keep the western customer base engaged, while having a whole new playing field without restrictions. Granted, Fenty just got suspended, but I think the idea is sound, they just got the demographic choice a little off.

long term value vs short term. Ceo likes 1 because of immediate returns, take bonus and change ship in a couple of years

imho Option 1.5: Take Simon's advice and try to project the quantifiable benefits from a celebrity endorsement. Decisions like this should be made with a combination of wisdom + experimental statistics

Option 1

The asian mindset prefers conformity over individualistic nature. Having someone on top of the food chain that is recognizable and familiar to set the tone would be highly advantageous in penetrating the market. Option 1 should explore celebrities that are inline with R&S brand values and principles to appease Simon and that are popular with the chinese people. Win win

Option one in addition to lgbt market segment

Actually , we are living in a VUCA (vulnerable, uncertain, complex & ambiguate ) world. Our mission is to build our project with ( Vision , understanding , clarity & agility).
If you have to penetrate a new market , you have to be agile . It was my contribution.

Subtle elegance!;)

This is very interesting. Looking forward to more of these.

I mean Selena Gomez did ann add for puma (when it was stagnating let's be honest) and it kinda worked I must say, and their new designs are pretty and can work for many young people heck my mothers got puma shoes now

Want to make money, should adapt and pragmatic. Hate dogmatic about consistency

I prefer to choose option 1, 30 Mio followers in social media of the Key Opinion Leader will support R&S to increase people awareness about the brand in china market.

This is a really good way of presenting a case study and then asking questions to the audience.
Looking forward to more videos like this one

Option 1 100%

I think they should stick with the brand value that they have established in 100 years. R&S can also lose their loyal customers by tapping into a different market. For instance, a company that is delivering the brand value for 100 years suddenly changes their market then there is quite a chance of loosing their current customer. And since their watches are luxury and millennials aren't going to buy these luxury items anyway. In short the company should continue with the brand value and invest in marketing campaigns to retain their loyal customers.

excellent presentation

option2 but with only classy/high-level celebrity and some businessmen endorsement

Option 1 definitely

We have two choices here.
First, we can select option '2', to stay on the 100 years' heritage and continue with the moral and social values of the company. By doing so, R&S can target the untapped market of China, that is the Generation X and somewhat also the Millennials. 'Class never goes out of style' can be appealing for the older generation who are long forgotten currently busy setting a bright future for their generations. To further grab their attention, aggressive marketing campaigns with trends such as 'Bring us back' might pinch an emotional appeal in the minds of the younger generation to value their elders and they mind end up buying R&S products for them as well.

Second, ignoring the two given options, R&S could launch a sub-brand, that will target the younger generation and stay in the headlines and top their growth chart.

Nonetheless, both choices require extensive market research before diving deep into launching any marketing strategy.

I need to know the answer to the case, it’s driving me crazy

Interessante

Gary Vee: do both!

1

Option 3 - grow the business in other cities of China which are more traditional and cultural. Check the market size in each region and focus on where the brand can potentially grow.

Can't they focus in young millionaire. I recon their main consumer are those who actually have taste in quality and more into minimalism. Their market are people who understand what intrinsic value is than marketing image. Why don't boost their products image and target new young millionaire as their new market.

Option 1. They enter a new market, they need to adjust to it. Different culture may require different approaches.

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Going with #1 makes more sense. Even if the millenials might seem young as a target audience, in perspective they are tomorrow's target audience that really needs to be captured.

can i give a suggestion... make a collaboration with Omega Moonwatch

Going with a celebrity endorsement carries additional risks of being tied to the celebrity whose fame can disappear as quickly as it rose. Especially in the Chinese market where many popular artists have come under intense scrutiny for supposed moral crimes. Only this year 88 celebrities have been blacklisted by the Chinese government. It would be much safer to utilize other methods especially as celebrity endorsement is a dying area of marketing, as for the price of one celebrity you can have a whole army of micro-influencers who are significantly more effective at converting interest to actual sales.

If the China's market is crucial for the firm and if the sales have stagnated, then they should first see if the target audience (people who like to buy understated elegant luxury items) they are after is declining by the year. If so, then it's not good to persevere with the same old ways.

R&S would need to shake things up in order to enter a new market.

However, collaboration with the pop artist is only the first step. To capture a new market they would have to re-work their designs and come up with a new positioning.

If the new market they're after wants "bling," then have to design accordingly. But they needn't throw away what the brand is about. They'd have to mix bling with their legacy and make watches that appeal to the new market.

Option 1.5: Why not launch a separate range for the younger segment, just like Mercedes has AMG range to charge more and Toyota has Lexus to tap into the luxury market. Synergy is the way.

I've got the perfect solution: Release a "China Bling: New Year edition" lineup of the brand, and markeT it to the T in China, it would not only increase their sales in the new year, but would be the perfect gateway product introducing them to the brand and more of their subtle designs.

I would choose singer who teach younger to present that watch to their parents or respectful person or loving and caring person .we need to carry this watch for his wishful person and younger who want to see this watch as a trophy that watch portrait as wishes from their elders.

The reality and only option they'd have in China is to hire one of the country's top 3 KOL agencies that are legit and govt approved.

Anything else is just a fart in the wind.

Going with first option would be great but also, considering the Chinese new year will a great opportunity to promote R&D such a way that the Chinese people find a sense of connectivity with their culture and R&D brand.