Developing and Managing Products

 Product stage of Hermes

When it comes to product life cycle of Hermes, it is difficult to determine unlike other high end luxury brands or products. Hermes products are known to be timeless with the quality that last forever.  That is why it worth every penny spent. For example, Birkin bags which first introduced to the market in 1982 after several decades later, the same leather bag is still in high demand. There are many factors that help determine where and which direction the product is heading. I have chosen to use Birkin bag as an example. The name Birkin is the last name of a British actress Jane Birkin

whom the bag was originally made to in the name of Hermes after he mentions about having to find a quality bag that could take care all of her needs to Jean Louise Dumas, Hermes Chief executive. During the introductory stage, the bag became famous because it was name after Jane Birkin as well as the fact that she would always walk around with it.  The growth stage is astonishing because they weren't able to keep up with the demand since the bag needs to be handmade one step at the time. Now the bag is in maturity stage as sales still increase at a decreasing rate because of the slow growth of our economy. 

Segmenting and Targeting Markets

Hermes has been known of it heritage for over 100 years. The main market of the company is focused on women' collections including bags, accessories, scarves, perfumes, shoes and jewelry. It has also creates collections for men and kids which have also been successful because people believe in its quality and how Hermes could give you a social status. The main target is women because women are majority of consumers. women make up more than 80% of consumer purchases. That when gender segmentation comes to play especially in a luxury market. Women always find ways to make themselves look better. After successfully conquered loyal women customer.

Hermes launches their men collections that includes suits, ties, shoes, belt, and perfumes to create a new market segmentation of its brand. The most recognizable products or best seller are ties, wallet, shoes, and belt. The Items mostly have Hermes logo on it and that gives away the price of the product when people see them. The upcoming Men's Fall collection 2015 will focus on polished mood with refined yet relaxed outfits mood. Their product are always made with the most extravagant materials such as; double faced cashmere, Scottish plaid madras, baby lamb glossy skin. This is what unique about Hermes besides everything is made by hands. Men customers do not only buy for themselves, but for their women as well. That is why they play a big role in Hermes marketing.
Geographic Segmentation
Hermes have 150 stores worldwide and 2 main stores in Manhattan which are located on Madison Ave and Broad St. in Financial district. Hermes chooses locations where high income individuals and families reside. Yet, these  stores are also nearby tourist attractions. With the high buying power, Hermes will able to sustain their expenses.

Marketing Communications

Competitive advantage of Hermes is the incredibly timeless products that are made with highest quality which also meant to use a lifetime. The right marketing channel is very important to the overall image of the brand. It takes decades to build reputation yet it takes tremendous effort to keep it. The way the brand communicate with its old and new customers is crucial when it comes to customer relationship as well as acquiring new customers. Most high end brands do not promote itself as their reputation comes from its true value of the products and services it's offering.
Hermes uses intergrated marketing communication by establishing a page on Facebook to connects with their younger customers. Customers can also view all of the products online. However, very few customer will make a purchase online because of its exclusiveness of the products. When the products are expensive, there are many decision making involve before making a purchase. For example, women would like to see how their purse would look when they handle it and how would the real material would feel in their hands. It is very important to physically touch and smell the products. Another example would be purchasing a perfume. the bottle might look attractive and give consumers temptation to buy. However, people would need to go into a store to smell because there is no other way for them to deliver the smell. For that reason, a store is an important channel to many brands to use a showroom for their customers to come, see, and touch the products.

Product Concepts

The goal of any brand is the differentiate their product from the rest of the market and that is when a unique product concepts comes in to play for Hermes in a luxury good world. Hermes has amazing done product line extension. From producing saddles from the beginning of the brand, now it has a variety of product lines from leather goods, perfumes,  accessories, bedding, decorative objects, clothing, and etc. 

Luxury goods are common known as specialty goods because they are not widely available and expensive. Hermes products are known to be made by hand with the highest quality, so there is no doubt that their goods will come with a hefty price tag. The most highly demanded product item is the Birkin bag with often comes in a variety of color and exotic materials. Here are a few examples; 

Besides all the fancy bags, Hermes also have a product mix that serve their Hermes loyalty in everyway.  For a few, luxury is a lifestyle and some like to show their brand loyalty by using different kind of products their favorite brands have to offer. Luxury defines social status. It provides a reference of a good taste. These following products are custom made and not available in store as there is not enough demand in the market. 

Porceline

It is going to be an expensive game.

While I think Hermes also has a very selection of shopping products that include watches, jewelry, perfumes, and scarves. They are still expensive compare to other brands, but affordable compare to other product on their product mix.

The logo of Hermes was first designed and introduced in 1950's. It compromises of a Duc carriage which is attached to the horse to symbolize the origin of the company of a horse saddles manufacturer. The orange color gives its unique and edgy style to the brand.  Their advertisements are often display in French to highlight the origin of the company and its authenticity.