Marketing Luxury Apartments
Having been in the luxury real estate sector for most of my career, I have learned that marketing luxury products and services require a different set of strategies than if you were to market something inexpensive. All the stakeholders' expectations are much higher since consumers are paying a premium price and because it takes companies more money to breakeven.
Kotler explains there are ten guidelines for marketing luxury brands which are summarized below.
Maintain a premium image.
Typically includes the creation of many intangible brand associations and an aspirational image.
All aspects of the marketing program must be aligned to ensure high-quality products, services, and experiences.
Brand names and elements can be important drivers of brand equity.
Secondary associations can boost luxury-brand equity as well.
Must control distribution via channel strategy.
Must employ a premium pricing strategy, with strong quality cues, and few discounts.
Brand architecture must be managed carefully.
Competition for luxury brands must be defined broadly because it often comes from other categories.
Luxury brands must legally protect all trademarks.
We embrace most of these guidelines at the company I work for quite heavily. Our logo and tagline are trademarked. Our other branding elements are strategically incorporated to project a luxury image. Our marketing materials, such as signage, brochures, and websites, are designed in a manner in which a prospect can easily interpret the brand personality as sophisticated and affluent. Typically, we also include aspirational photography that features only the most beautiful people. We have found that consumers respond positively to seeing imagery that reflects who they want to be, rather than who they actually are.
We also see branding as an experience. Our prospects are handed chilled towels and a glass of champagne in markets with high temperatures, like Miami. For the events we hold at our luxury apartment communities, we will often partner with other high-end brands such as Lamborghini or Dom Pérignon. Doing so helps align our marketing programs' event aspect to other luxury brands, allowing for consumers to associate our brand with theirs.
Our lobbies are purposely designed opulently so that not only our first impression is impactful and memorable, but also to subtly remind the prospect that this is a luxury building that helps with managing their expectations as it relates to pricing. It is a unique occasion for us to offer discounts.
Our competition expands beyond rental properties. We also consider many prestigious condos as a part of our competitor set. We also acknowledge that the amount we charge for apartments also positions us to be up against those who decide to move into a single-family home.
The area that we could improve upon would be the brand architecture. We essentially have different tiers of luxury. There is an opportunity to distinguish them better so that we may market more strategically.
By effectively marketing a luxury brand, it puts all stakeholders in a better position. It allows our company to charge more for the product, which supports the company's overall health, and it fulfills the residents' desires.
