For THEM desire becomes a reality...

What image of consumer comes to your mind when you think about Bvlgari or Chopard jewelry? 
Probably, you can have such association as shown on the picture below:

Let’s have a look on the overview of the target market of Bvlgari and Chopard jewelry in order to estimate if our association was right or not...

N.B. As Bvlgari and Chopard are direct competitors and they attempt to reach the same target audience in jewelry, the overview of the target market concerns both brands.

STEP 1

Demographic factors

• Gender: Women
• Age: 40-60 (In comparison, wealthy consumers in China are 20 years younger than those in the US, Europe and Japan)
• Geographical location: Mostly from North America, Europe and Asia
• Education level: Well-educated
• High income group of women
• Wealthy international shoppers
• Ultra High Net Worth section (Nearly 90% buy luxury jewelry spending close to $250,000 annually)

STEP 2

Psycho-graphic information

• Lifestyle: Luxurious
• Personality: 'Superior race' that strives for elegance, quality, and exclusivity in all aspects of their lives
• Values: Desire to wear a masterpiece that feels exclusive
• Interests: tennis, spas, international travel, fine dining etc.

STEP 3

The need, want or problem that drives target market

• Consumer’s self-concept: Connoisseur
• Values: Quality and traditions, Brand reputation and craftsmanship, Emotions, Exclusivity and Uniqueness
• Goals: Investment into status statement and future, Demand for expensive products
• Needs: Social and egoistic needs such as prestige and Hedonistic and Materialistic Value) =  Name is money!

STEP 4

In which ways companies communicate with target market

• Social media communications: Millions of consumers discuss luxury brands and products including the wealthy and super-rich
• Website info
• Celebrity endorsements
• Promotional activities: Through national and international film productions
• Advertising: Placed in respectful newspapers and magazines, which tend to be read by a well-educated, middle and upper class group of potential customers

STEP 5

How each company is different from competitor's business?

Exquisite quality of materials used, long-lasting fashionable designs, brand awareness, creativity, craftsmanship, service to the client and customer loyalty are common aspects for both brands

Bvlgari strategy:

•     'Made in Italy quality'
•     Jewelry products come with a lifetime guarantee
•     Creation of capsule collections
•     Feature many celebrities wearing their jewelry
•     Bvlgari retroperspective exhibitions in China

Chopard strategy:

• 'Made in Swiss quality'
•       The “Happy” jewelry collection
•       Dress starlets and film stars with its most expensive jewelry pieces at large events such as the Oscars in Los-Angeles in the US or the Film Festival in Cannes, France

To sum up, I would like say that nowadays both brands try to reach China's new class of wealthy consumers as they are younger (possibility to reach new target group) and their economy is fast-growing. 

But it is important not to forget about the 'classical' Chopard and Bvlgari jewelry consumer. It is also the way how companies see its customer..

SHE is beautiful, gorgeous and elegant...

Perhaps all of us are familiar with a beautiful actress Elizabeth Taylor..Bvlgari is her LOVEMARK...And the only word that Elizabeth knows in Italian is..BVLGARI

Also, in 2013 Chopard compiled a special collection for the film 'Diana', dedicated to Diana the Princess of Wales.

Alina Bieglova

Sources:

1. http://newonlinemarketingtips.com/what-are-bvlgari-known-for.php

2. http://files.investis.com/bulgarigroup/presentations/2010/2010-07-21/db-conf-june10.pdf

3. http://www.europeanfinancialreview.com/?p=7133

4. http://www.halsteadbead.com/Grant/Hints-Tips/Targeting-Customers.aspx

5.http://www.luxuryjewelleryshow.com/RXUK/RXUK_LuxuryJewelleryShow/documents/Fflur%20Roberts.%20Luxury%20Jewellery%20Overview%20of%20Industry%20and%20Consumer%20Trends.pdf?v=635146565164448459

6. http://www.europeanfinancialreview.com/?p=7133

7. http://vanbreda.org/forum/doku.php?id=theory:tiffany_co._vs._bvlgari

8. http://blog.hydeparkjewelers.com/hpj/2013/07/chopard-and-diana/

9. http://luxurysociety.com/articles/2012/10/why-luxury-brands-should-target-the-top-1
10.http://www.pinterest.com/pin/188658671862602687/ 

Chopard's universe of happiness...

Famous couture houses and luxury jewelry companies have moved beyond their core products during recent decades. Chopard began 153 years ago as a producer of quality watches before expanding its product portfolio into jewelry in 1963.[1] Later the company diversified again – into leather goods, eyewear, fragrances and other accessories. This way the company managed to reinforce its brand’s position and thereby increased consumer excitement as well as high publicity on events such as the Cannes Film Festival (the Golden Palm award was designed by Chopard by the way…).

Let’s now have a detailed look into the product portfolio and brand extension of Chopard:

As illustrated above, the portfolio involves five different product categories: High Jewelry, Jewelry, Watches, Engagement and Accessories. Each of these is further divided in sub-categories and product lines.

High Jewelry is the one that celebrities wear on the red carpet and that we all admire because of the one of a kind craftsmanship and the exceptional stones used for each piece. But the “regular” Jewelry collection is not less prestigious: it includes well-known masterpieces such as the Happy Diamond Collection which is already celebrating its 37^th birthday. Maybe you will recognize some pieces in this video about Chopard’s “Universe of Happiness”:

If you’ve not been falling in love with Chopard yet, you should have a look at the engagement collection. Besides the most beautiful collection of rings, you have the possibility to personalize your own bridal jewelry that will then be made for your special moment.

The watches collection is shaped by inspirational, sophisticated as well as classic pieces and surprises with an exclusive partnership with Zagato, a legend of Italian automobile design for the classic racing collection.[2]

Concluding this post, I want you to keep Chopard in mind as a good example for a diversification in product categories and to dip into the universe of happiness and enchantment:

                                                                                                                                                                                                                                                                                      SG

                    

Sources:
http://www.chopard.com/timeline/

http://www.chopard.com/collections/zagato

The world of BVLGARI...

Present in 24 countries, operating with more than 41 companies and 3,815 employees and a distribution network of 295 stores in the most exclusive shopping areas, the Bulgari Group is mainly present in the travel retail and domestic channel.[1]

The Bulgari Group’s portfolio includes high-end products and services that can be found under the BVLGARI brand all over the globe: jewelry, watches, accessories, fragrances, skincare, hotel and resorts.

In order to give you a short overview about the different divisions and where most of the revenues come from please have a look at the chart below:

As you can see, jewelry, watches and accessories account for 74% of the company’s revenues in which jewelry contributes the most, followed by watches, accessories, royalties and others.

For more detailed information please find below all product categories within this division:

Furthermore, in each of the categories there are different collections and product lines, such as the famous B.Zero1 line or the BVLGARI-BVLGARI watch.

The perfume and skincare division is the second strongest within the Bulgari Group and accounts for 23% of the revenues. As categories we can find Bath & Body, Fragrances with different product lines and Gift Sets.

Last but not least Bulgari Hotels, Resorts and Restaurants contribute to the company’s revenue with 1.5%.[1]

Having introduced you all of Bulgari’s product divisions, categories and product lines, it can be said that the group managed to create BVLGARI as a strong parent brand which is gives its name to each category in order to leverage sub-brands, such as BVLGARI Restaurant, and to increase its brand equity.

To sum up, this product and service portfolio covers many different categories and product lines. Consumers who skip into the world of BVLGARI will not only be robed with jewels for each occasion but can even smell like their favorite brand and experience the Bulgari lifestyle in one of the hotels or the restaurant.

Enjoy a short trip into Bulgari's world of luxus! 

  SG

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[1]http://us.bulgari.com/about/about_bulgari.jsp?cat=cat00105#editorial_01.jsp?cat=cat00112&mFolder=abvl_co_facts_figures

Other Sources:

Bulgari Logo: http://www.infomediaire.ma/sites/default/files/news_images_haut/BULGARI_LOGO_POS_1_0.jpg?1371117804

Watch: http://strangeline.net/wp-content/uploads/2013/05/The-New-Bulgari-Watch.gif

Ring Gold: http://www.lionel-meylan.ch/wp-content/uploads/2011/07/Bulgari-or-rose-sertie-Bzero1_AN855553.jpg

Scarf: http://vdc-img-0.ig1-cdn.com/img/produit/224/737020-1.jpg?1

Hotel Logo: http://vectorlogotypes.net/logos/preview/B/Bvlgari_Hotels__Resorts.png

Restaurant Logo: https://fbcdn-profile-a.akamaihd.net/hprofile-ak-prn2/c10.10.160.160/968781_189964114493940_99447402_a.jpg

Skincare: http://www.secondcitystyle.com/images/6a00d83451595d69e2013487f8a826970c-500wi.jpg

Perfume: http://i.iparfumerie.de/view/5/bvlgari/bvljanw_aedp__2.jpg