Consumer behavior and the marketing of Cartier jewellery.

Age

Supporting statement from linkedin.com, rough-polished.com (2010) as well indicates that  the most important group of jewelry consumers are aging around 45 to 54. Consumer with this age are earning highest income so they can afford expensive jewelry pieces. The latter website is also demonstrating that customer aged 25 to 34 years old should not be neglected by jewelry retailer because they are becoming more important everyday as main bridal jewelry consumers

Marital Status

Trinity collection is created with concept of harmony as stated on the e-boutique page. And since the ring is categorized under wedding band section, it can be seen clearly that Cartier mainly focuses on the group of future brides as Trinity collection’s customers.

        4.2 Geographic Segmentation

In United Kingdom, Cartier boutiques with jewelry creations are available only in London. That simply means Cartier is focusing on customers who live in urban area.

Urban habitants are the possible customers, because people living in metropolitan cities, are more likely to concern about the cultural appearances, particularly fashion and style. They tend to wear nice outfits and beautiful accessories as ways to express themselves and presenting their status, while people in the countryside are more laid back. Living among beautiful nature and calm environment, meeting with few familiar people, they have less motivation to dress up nicely and to wear statement jewelry.

Nonetheless, Cartier also offers e-boutique service for customers who live in distance area. Unfortunatley, this service is still limitied to people living in United states and Japan only.

But even with the more comfortable way of shopping Cartier deliver, most customers that have no access to a boutique still have reluctant feeling to buy some jewelry online, because it is hard for customer to make buying decision over valuable product online.  And it’s even harder to buy product that need a perfect fit without trying them on, like a ring.

Cartier is an ideal brand for people who are looking for products with exceptional quality. The brand Cartier itself is an effective selling point because of Cartier’s long history and heritage. The fact that Cartier is selected to be official purveyor for many Kings from many countries and also an excellent jewelry provider for people from elite class, can guarantee that its product are made with the extraordinary quality. As soon as these luxury items are available for people in lower hierarchy of social class, those with ability to purchase want to get as much of these product as they can afford in order to show their social status and to be regarded as special.

People that always search for new, elegant and luxury experience are also the possible consumers. Buying ring from Cartier would be such an experience due to the exceptional service, start from the warm welcome from a doorman to a professional and helpful assistance provided by in-store sales staff.

Cartier’s jewelry has variety of designs that suite customer with different personality. All collections from Cartier have modern look. But some are created with more simple styles and some are trendy and fashionable. For Trinity they attract customer who likes things to be simple yet classic.

        The table below explain the reason each type of VALS lifestyle and the reason why the are possible Cartier customers.

Table  4.3.1, Lifestyles/VALS

(Schiffman and Kanuk, 2010)

        Another reason for luxury jewelry consumers is to fulfil themselves. People making purchases as a way to complete their needs. For example, when people get hungry, they buy food, or at least buy ingredients to cook food.  However, the meaning of needs is differ in each individual. For some, drinks and food are needs that they strive to fulfill. But for luxury consumer, with higher purchasing power, they can easily fuilfill their basic need so they are trying to find something better and something special.

Figure 4.3.1

        

        Consumer behavior can be clearly explained by Maslow’s Hierachy of Needs displaying in figure 4.3.1.  When the current level of needs are saitisfied, People’s moving to the higher level of needs

        

“ ... brand strategists have come to use Maslow’s model as a means of defining and then building on needs that brand X will fulfill” (Rodgers, 29)

        It can be concluded that brans can attract more customer if they can understand customer needs and solve their requirements

        4.4 Usage Rate Segmentation

        Gold and diamond jewelries are products that useable for lifetime because of their durability. So some people own one or very few pieces of jewelry. However due to their value, many people buy jewelry as one way of investment.

        “The rising price of precious metals has meant that more than one in five (21%) people consider jewelry to be a good investment” (Mintel, 2008)

        And since brand jewelries are very valuable and very collective, especially, the vintage collection and the collections that had no longer been produced. They become a never-ending desire for luxury consumers. The more value a wealthy customer perceived of jewelries the more items they will buy.

        

        4.5 Usage-Situation Segmentation

        The ring can be bought as a wedding ring, a present for an anniversary or for special days. Valentine’s day is one of the days that suitable to promote this ring. As mentioned before Trinity ring is a symbol of faithfulness, love and friendship, so it is a perfect gift for lovers.

        “Three bands, three colors, pink gold, yellow gold and white gold, intertwined in a display of mystery and harmony…

        …Three types of gold, three symbolic colors: pink for love, yellow for fidelity and white for friendship. Trinity, a timeless design now available in a collection devoted to life’s most memorable loves. Trinity, all about you forever." (cartier.us)

        For frequency of usage, Cartier jewelry can be worn everyday. Due to its simple and classic designs, both daytime and nighttime usage are appropriate.

        4.6 Benefit Segmentation

        Cartier jewelries are made from two of the most valuable material in this world, which are gold and diamonds, together with the premium quality of Cartier craftsmanship and their creativity in designs making them undoubtedly attractive to many consumers. The design of the ring is also appealing and unique; making it’s hard for consumers to find other substitute brand.

        The simple designs of Cartier jewelry make them suitable for everyday-usage. Comparing the price each customer pay with the functionality, those jewelry worth every pence they pay.

5. Consumer Decision making

        5.1 Input

        Before the process of decision-making begins, there are input, or external influences that arouse consumers’ needs, which are business’s marketing effort and sociocultural environment.

Cartier marketing effort

        They are providing the best quality of products, with premium quality of material and skillful craftsmanship. Cartier never engages any sale promotion, which seem to be  an effective mean to impress customer with the ideas of luxury and speciality. The high price of product convince customer to believe that their products are made for special group of people, only those who can afford. Price that Cartier set, similar to their promotion strategy, shows the premium quality of the product and make the product seems harder to possess. Just like economy theory, when supply decrease demand will rise. Channels of distribution is another effort Cartier is using, Cartier have 7 boutiques in London, all with jewelry selection. But for e-boutique, it’s only available in Japan and United States.

Sociocultural environment

        Globalization seems to makes the size of the world a lot smaller than it really is. Information is shared throughout every corner of the world in few seconds. People in society tend to have similar ideas and beliefs of valuation. Wanting to belong as part of the group, they then follow the same trends.

        In a big term of society, trendsetters are normally popular public people, for example, celebrities, famous athletes, and politicians. They are considered as comparative reference group. Consumers compare themselves with this group because they’re dreaming of being like one of them..

        

Figure 5.1.1

        

(popsugar.com, 2007)

        Only seeing celebrity wearing Cartier jewelry like in showing in pictures in figure 5.1.1 can create strong desire in brand’s consumers.

        In smaller terms, influencers are people who surround each customer. This group of reference is called normative. Their opinions and comments have big impact on customers’.

5.2 Process

        When influenced by society, consumer’ new desires are created. That’s when the process of decision-making starts. People will suddenly feel the need of possessing new product. Let’s say one women want to get a ring for herself because she saw her favorite movie star wearing a gold ring on her pinky finger. She and her friend think it’s very cute. She will now start searching information or pictures of pinky ring on the Internet or even on social media such as Pinterest and Instagram. When she got few picture of rings that she like she will move on to evaluation of alternatives stage, start considering each ring more carefully. During this stage, the women’s or her normative references’ experiences and ideas about the brand is also very important. Because she will use all information she obtain to weight all the pros and cons, function, and her budget.

        All these actions will then become her experiences with the brand and will be considered again in the next purchase.

6. Conclusions and Recommendations

        Considering variety in segmentation methods, the best approach Cartier could do is to use hybrid segmentation. Using mixture of market segmentation, product usage-situations and lifestyle. Because in current market situation, with quite stable rate of jewelry consumption, focusing on customer’s demographic difference alone is not effective enough

        

        “Gifting is currently one of the main drivers of sales for the watches and jewelry market, as self-purchasing has slowed significantly. Retailers therefore need to ensure that they are doing all they can to capitalize on the gifting market and on key dates such as Valentine’s Day and Christmas.” (Sender, 2012)

        It can be summaries from that statement above that Cartier should focus more on marketing strategy about gifting in order to make more profits. Promote their products as the best gift a man could give to his loving wife during special occasions

        Cartier could also collect information from present customers. For example, collecting  personal information of customers  such as birthday and anniversary , then send them some email or letter before those specific dates to remind and recommend them about interesting gift options. Moreover, sending a small gift or a card along with that purchase will massively impress the loyal customers.

7. Bibiography

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Benny R. (2010). Who is the target audience for jewelry advertising these days. Available: http://www.linkedin.com/answers/marketing-sales/advertising-promotion/advertising/MAR_ADP_ADV/659172-36146735. Last accessed 21th Nov 2012.

Bill Cosby. (n.d.). Bill Cosby quotes. Available: http://www.goodreads.com/author/quotes/3537.Bill_Cosby. Last accessed 20th Nov 2012.

Cartier. (n.d.). collections. Available: http://www.cartier.us/collections/jewelry/collections. Last accessed 22th Nov 2012.

Cartier. (n.d.). Through Time. Available: http://www.cartier.co.uk/#/tell-me/through-time?selectedYear=1847:/tell-me/through-time/1847. Last accessed 22th Nov 2012.

Cartier. (n.d.). Trinity De Cartier. Available: http://www.cartier.us/collections/jewelry/collections/trinity-de-cartier. Last accessed 20th Nov 2012.

Mintel. (2008). Precious Metal Jewellery - UK - July 2008. Available: http://academic.mintel.com/display/380440/. Last accessed 21th Nov 2012.

Mintel. (2012). Watches and Jewellery - UK - September 2012. Available: http://academic.mintel.com/display/637429/?highlight=true#hit1. Last accessed 21th Nov 2012.

Oleson, M. (2004). Exploring the relationship between money attitudes and Maslow's hierarchy of needs. International Journal of Consumer Studies, 28(1), 83-92. doi:10.1111/j. 1470-6431.2004.00338.x

PopSugar. (2007). CELEBS CELEBRATE CARTIER'S NEW LOVE. Available: http://www.popsugar.com/Celebs-Celebrate-Cartiers-New-Love-303265. Last accessed 23th Nov 2012.

Schiffman, L and Kanuk, L (2010). Consumer Behavior. 10th ed. New Jersey: Pearson Education, Inc. p85-86.

Sender, T. (2012). Executive Summary – UK – September 2012. Watches and Jewellery Retailing. 1 (1), 2.