Business Blog – Kalin

GOOD or BAD Marketing Strategy for Hermes in Las Vegas

February 28th, 2011 · No Comments

One of my best friend, Nicky, went to Las Vegas for her reading break. She went to many shops and bought a lot in Las Vegas. After she’s back to Victoria, she talked to me about her crazy shopping trip. Her mum really like a specific style of Hermes bag; therefore, she went to Hermes in Las Vegas to look for it for her mum.

When she arrived in Hermes in Wynn,Las Vegas, she found a Chinese people to serve her. She asks about the specific bag directly, but she got a very special answer. That staff told her that if she want to find a very popular product, she needs to buy at least 3000 USD from her, and then, she can go to check what my friend want in the back. Maybe the store have that one, but they will never show it on the shelf, they will keep for people who have record in their store only. If they have it in store, they’ll bring it to let her have a look, otherwise, she can order for my friend from other store or the factory. Because of that, my friend felt a little bit angry, and want to leave and check in another Hermes store in Las Vegas. That staff told my friend that you can check in other stores, but we all have the same rules. Latter, my friend checked in other store and get mainly the same answer. The Chinese people who served her told her that Hermes wants to not only sell the product which is popular, but also their other products as well. Also, Las Vegas is a popular place for people all over the world, the stores don’t want to sell their special products to visitors who only come once. They want to sell to loyal customers. Until here, my story ends. Now, I’m going to apply this into our marketing concepts.

Hermes is a really big and luxury brand all over the world. As I know, some of its bag even more expensive than a small condo. Hermes should have a very great promotion strategy for its products.

logo-hermes-paris.jpg
From the real story that my friend experienced. There are two opposite thinkings about Hermes’s strategy in Las Vegas.
1. Hermes keeps its Special and Popular products for its loyal customers to maintaine a better relationship with them.
2. Hermes uses its Special product as a main course to sell other products as a bundle.
If we only think about marketing strategy, it should be a great promotion idea. Uses popular product to sell other products to normal customers. Also uses special products to keep loyal customer to stay consume with them.  What about if we think about customer’s side? For normal customer, they will feel it is unfair. Why they cannot buy what they want directly when it is available in store? For those loyal customers or vip customers, they may feel great. Cuz popular products always sold out very fast. If the stores would like to keep for them. Why they fell bad? It seems that Hermes in Las Vegas target only the loyal customers, but not normal customers.
OVERALL, a marketing strategy can be great for targeted segment, but might be bad for other non-targeted customers. Therefore, to choose a marketing strategy can be great fit one party, and also good for other parties would be the best!~~~

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