The Hindu Business Line : Luxury for masses

THE aspirational theory of marketing proposes the formation of an "aspirational class" — a type of positioning that nurtures man's deep-rooted desire for luxury.

Aspirational class is one that a given segment of the market desires to belong to and which it is increasingly reaching for. Here, the possibility of application of a new type of positioning to the present marketing scene in India is studied.

Over the past decade, the rapidly-changing economic situations in India have brought with it wide international exposure and an obsession with luxury.

The consumer in India is no longer a person with an old world Socialist mindset. He does not earn money to keep in his coffers or to save for his children, but he earns so that he can spend it on himself, pamper himself and his family.

Status and riches are no longer with a restricted business class `haves' but is achievable by ambition and hard work. This motivates everybody because everyone can be `rich'.

When you sell to such a changing environment, there are two choices or routes. Either represent an old world cash crunching company that offers "value for money" and prides itself for having the cheapest product in its class to sell to its thrifty old customers or one can become that `aspirational' symbol.

Something that the middle-class consumer wants to reach someday and many are increasingly reaching owing to rising middle-class income levels over the past decade. You are now an `aspirational' marketer.

The Harvard Business Review calls this "luxury for the masses''. The idea behind this style of marketing is to position the product at an "accessible super-premium" for the given target segment of the market.

Such a pricing at the top end of the standard segment prices will make the middle-class aspire to reach them.

For them, the product now transmutes to a well-deserved luxury product. I believe we are actually doing the all-important role of differentiating segments and yet bridging the two high-end and low-end. Both hyper luxury and lower luxury products must practice such an extension.

An example of such a positioning is visible in the Indian automobile market. For instance, the Skoda Ocatvia. Priced at 10.5 lakh onwards, it forms a `bridge' between the upper C segment, comprising cars such as the Mitsubishi Lancer and the Opel Astra and the prestigious D segment, comprising cars such as the Honda Accord and Hyundai Sonata. Thus, for the Octavia buyer who has just graduated from the upper C segment now feels like an owner of a higher segment car.

The Octavia with its rigid build and high-class handling fits the bill perfectly. Such a positioning was extremely beneficial for the Skoda, which posted a higher annual growth rate than any C or D segment car the last year.

The Honda City, positioned between B (Hyundai Santro, Maruti Zen) and d segments also became an aspiration for the B segment buyers, who wished to graduate to a higher segment. Its success is well-known.

The Harvard Business Review describes such a positioning as occupying a sweet spot between mass and class. While commanding a premium over conventional products, they are priced well below super luxury goods. Thus, we make for affordable luxury. We can actually generate volumes without having to worry about losing exclusivity; a matter of concern while selling luxury products.

This theory has had wide success in a variety of products. At a time when jeans in India never cost more than Rs 500, Lee entered the market with a product line beginning at Rs 1,000 onwards. In a span of a few years, it had climbed the charts of any young man's must haves for his wardrobe.

Today Lee Jeans is the largest selling brand of jeans in India. This trend has actually forced other brands such as Killer and Flying Machine to hike their prices to this segment and concentrate on product build, differentiation and style.

It is best to represent a company that fuels motivation and caters to an increasingly young customer base. A smart marketing head will realise that product quality and brand image are critical to the success of the product. It is also important to phase out this product with time replacing it consistently so as to maintain its positioning and necessary levels of brand exclusivity.

G. Mahesh

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