Co-branding: Bringing promotions to the luxury market

George Argyropoulos, managing director of Cruises International and Paolo Fra, brand and business manager for Bentley South Africa.

Luxury purchases involve much planning, dreaming of and budgeting for. When you finally make that purchase, you're expecting the quality product that's long been advertised, based on your specific aspirations and life goals, be it the holiday of a lifetime, the ultimate luxury vehicle or something entirely different. Nothing more, nothing less.

But that doesn't mean that's all you'll get, or that special promotions are purely the domain of fast-moving consumer goods (FMCG). In fact, two luxury brands recently joined forces to offer a high-end version of the typical sales promotion, meaning you potentially get more than you bargained for when making a lifestyle investment.

Bentley SA and Cruises International teamed up to offer opulent car enthusiasts a six-star cruise experience with Crystal Cruises for two people valued at R220,000 with every purchase of a select new Bentley, running until February. It's a case of 'buy this prestigious vehicle and stand a chance to further enhance your luxurious lifestyle with an indulgent cruise'.

Reward, not discount

That's a bold move that makes the industry sit up and take notice - with luxury brands there really is no need to advertise, as the brand is already associated with top craftsmanship, prestige, and speaks for itself. The mere fact that it's a luxury brand adds value to the market segment. And while we don't all see value the same way, we all like beautiful things and experiences. Fittingly, luxury products are timeless, not bound to specific timeframes.

That's the crux of why this specific collaboration works. While: "The luxury shopper isn't likely to hinge their buying decision on whether or not they get a gift... if the gift pays back with emotional rewards, this is something that they would consider... and this is what luxury branding is all about," explains Paolo Fra, business and brand manager for Bentley South Africa.

It's all about prestigious partnerships that offer value to the consumer by offering an unexpected reward, surprising and delighting them without necessarily offering a discount. The brands, in turn, benefit from shared resources that let them take advantage of each other's strengths, shared loyalty and the opportunity to build emotional connections with customers, as well as the obvious increased visibility and market exposure to audiences previously not reached. It's a win-win all round.

Fra lets us in on just how luxury brands are reinventing the typical "free gift with purchase" sales incentive, and how this offers an extended shopping experience that results in brand loyalty.

1. Explain the concept of loyalty in luxury branding.

Fra: Building rapport with consumers doesn't necessarily come from receiving discounts, that's just a quick fix way to gaining client loyalty. Instead, what we offer at Bentley SA is an all-round luxury shopping experience, which in return gains brand loyalty.

2. How did that work with this specific collaboration?

Fra: There is a relationship between luxury brands. As Bentley we strive to offer 'money can't buy' experiences to our customers. Owning a Bentley is a lifestyle choice, not a car. Crystal Cruises and Bentley are thus the perfect fit by the sheer nature of each brand: The only six-star cruise line with the world most powerful luxury cars.

3. Tell us more about the use of rewards and incentives to lure in luxury market customers.

Fra: It's absolutely typical. Every day we see luxury brands offering their customers added value. What is not typical of luxury brands is offering discounts, as these cheapen the brand in the market place. It doesn't matter who the consumer is, everyone wants to feel like they have got a deal, especially with very high-ticket items. We target upper-class individuals who have disposable income to spend on a luxury vehicle with modern conveniences, refinement and presence; the consumer who makes a statement just by entering a room. Purchasing a Bentley isn't just about buying a car, it's an experience all in its own. The luxury shopper isn't likely to hinge their buying decision on whether or not they get a gift with their purchase, but if the gift pays back with emotional rewards, this is something that they would consider.

Interesting insights into the luxury shopper. For more on Bentley, visit their website or follow their Twitter feed.