Several brands lead to great success stories and Hermes is one of them. Being a French high-end luxury fashion brand, it has been established for almost two centuries now. It is renowned for its fashion and luxury products and is also recognised as is the world’s leading luxury brand with an image of wealth, quality, and style.
This case study about Hermes explains the brand from a marketing viewpoint. It goes through knowing about the Hermes brand, its 4P of marketing mix strategy, marketing, and campaign strategy, and digital presence.
So let us start by knowing about the company in the coming section.
Hermes International S.A was founded by Thierry Hermes in 1837 as a harness shop in Paris, France. His son, Charles-Emile Hermes shifted the company to the address, “24, Rue Du Faubourg, Saint-Honore” in Paris back then.
To this date, Hermes being a multinational brand continues to operate its business activities from there and is also the headquarters of the company today.
Headquarters of Hermes
Hermes is engaged in manufacturing leather goods, textiles, tanneries and precious leathers, perfumes, etc. The brand is also engaged in producing many accessories, ranging from handbags, shoes to small leather goods.
This company has focused on making luxury products of exceptional quality for a long time now. It has a combination of various things such as rich heritage, exquisite craftsmanship, eye for detail, high level of quality, professionalism, etc
Hermes has been globally the most valuable luxury brand consistently. Today, Hermes ranks 28th among the Best Global brands 2020 with a brand valuation of 18 billion dollars.
Now that we have a little information about the company, let us understand more about Hermes by going through its 4Ps of the marketing mix.
Marketing Mix of Hermes
The marketing mix, popularly known as 4Ps, is a defined framework for decision-makers to figure out the best way of achieving marketing and advertising objectives. A marketing mix model consists of a selected combination of 4Ps: Product, Price, Place, and Promotion that lead to success in a market.
So, let us examine the marketing mix strategy implemented by Hermes in the coming sections.
Product Strategy of Hermes
Hermes is an established fashion industry player which has provided its customers with a wide range of products and accessories ranging from silky towels to furniture and board games as well.
Its main portfolio consists of Leather Goods & Saddlery, Ready to Wear and Accessories, Silk and Textiles, Perfumes, Watches.
Hermes relies on its heritage, quality, and craftsmanship to maintain the trust of millions of consumers around the globe. As such, this brand can be considered the flagship of any luxury brand portfolio.
Price Strategy of Hermes
The luxury industry is an exceptional example of how brands can succeed even with exorbitant prices. However, the brand image has to be always impeccable no matter the price.
Hermes is one of the largest and most famous brands in the world, It’s synonymous with opulence and high-end products. Though high prices are not new for Hermes, it has attracted attention in recent years with its most expensive piece of luggage, which can cost as much as $39,000.
Place and Distribution Strategy of Hermes
In the past decade, Hermes’ operating network size has not only expanded extensively in Europe and the United States but has also introduced to the Asia-Pacific region and Latin America.
Hermes uses an omnichannel distribution approach to sell its products. It is present in about 45 major and popular countries across the globe. Realizing the great opportunity in the market to sell luxury bags and accessories globally, Hermes has capitalized on it.
This is made possible by having its website localized so that customers can choose the language and content that best suits their requirements and location. Through the website, buyers can shop for products depending on their location, language preference, and currency of choice.
It has also rolled out its expansion for selling its goods via its e-commerce platform. Its e-commerce facilities are present in 28 countries and continue to expand.
Promotion Strategy of Hermes
Hermes has a reputation for creating clothing and accessories that are stylish and of great quality. When it comes to their advertising, they use a combination of traditional and digital mediums, incorporating them into campaigns that are constantly evolving and improving.
Though Hermes has a strong international presence, their marketing activities vary according to their countries of business, with different promotional strategies at the customer and country level.
Now that we have gone through the marketing mix in detail, let us now go through the marketing strategies it implements to promote its products and services.
Marketing Strategy of Hermes
The marketing strategy of Hermes can be defined as a comprehensive approach designed to help establish a sustainable competitive advantage enjoyed by the brand. This is also an addition to its offerings that enhances its corporate image, build loyalty among consumers, and advance financial performance.
Being an old brand, it has also become a reliable brand in the field of leather products and the fashion industry. Due to its popularity for making different kinds of luxury, wealthy individuals are attracted towards it. It uses many measures to promote its products all across the world.
Pop Up Store Strategy of Hermes
The marketing strategy of Hermes is mainly promotional activity to increase brand awareness. Hermes uses Pop up stores for product promotion. Pop-up stores are temporary retail stores that are mostly used by luxury brands to promote their products.
This includes designing and opening a pop-up store for the customers and potential customers. This marketing strategy is mainly implemented in new locations or new markets so that the company can evaluate market demand as well as considering the existing competition in the market.
Sponsorships Activity of Hermes
Many people are familiar with Hermes as a company that makes leather products. What you might not know is just how active the brand is with sponsorships across a wide variety of fields and events.
The company uses these platforms to promote its brand awareness and to reach out to its targeted audience more effectively. Hermes had been sponsoring this event for many years now.
Digital Marketing Strategy of Hermes
Hermes is one of the best examples of a brand embracing digital marketing. Hermes focuses a lot on digital marketing.
It has its Podcasts and documentaries. This proves that it pays off huge for a company to embrace the power of digital media. It also has a newsletter that keeps its customers informed about the company and happening around the fashion world.
Advertising & Marketing Campaigns of Hermes
A proper advertising campaign strategy gives customers a chance to know and experience more about the company or the product. These are events or activities that a company does to influence the customers. So let us go through one of Hermes’ advertising campaign in the coming section.
Le Temps, un Object Hermes (Time, An Hermes Object) – A Marketing Campaign of Hermes
Le Temps, un Objet Hermes, roughly translates to “Time, An Hermes Object” is a campaign that showcases a fresh approach to create its distinctive style of watchmaking philosophy.
The creative strategy behind the marketing campaign employs a blend of social, cultural, and economic intention along with technological capabilities to enhance the market success.
Hermes | Objects for Interior Life – A Marketing Campaign of Hermes
Hermes has launched the ‘Objects for Interior Life’ marketing campaign exhibiting the contemporary series of tableware that brings to life various different interior spaces, giving place to a more refined and beautiful approach to interior design.
It focuses on showcasing the line of home accessories that focus on simplicity, warmth and artistry. The product line consists of sleek lounge chairs and tables with a touch of modern flair to them. The cubes, curved shapes and squares made of different materials give off a sophisticated and clean aesthetic that complements the beauty of minimalist interiors.
The major objective behind this campaign was to showcase and inspire people around the globe to give shape to their desire through symmetry, form, depth and space.
With this we have come to the conclusion of this case study, let us summarize everything in the coming section.
Hermes is one of the oldest and prestigious brands, which have their market franchise with an experience of more than 150 years. With time, it has been using different marketing strategies to gain brand connection among the customers.
They have been having showrooms for centuries now launching digital stores and pop-up stores to make their brand more accessible. In recent years, it has also extensively focused on its digital marketing strategy for better brand visibility.
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