MK543E Advanced Brand Management
Branding in Web2.0
Luxury Branding in Web 2.0
With the development of science and new technology, usage of Web 2.0 as a communication has become a very important concept in terms of the modern consumer behavior and marketing management. Nowadays, people has got used to obtain the information and purchasing on line, especially for the younger generation consumers. There used to be a time when luxury industry is totally on the opposite side of digital world. Today, it has become a commonplace that Companies and brands utilize different social networks to express the brand identity and promote their products. It is also predictable that the use of social network in luxury industry is not a temporary trend . This essay is written for the study of branding in Web2.0. There are three particular purposes of the essay: to discuss the reasons why web2.0 should be involved in luxury branding; to analyze under what circumstance a luxury brand should use social medias for brand building. Also, to specifically discuss about the luxury brand Patek Philippe as they are still not using social networks as a tool of communication. By analyzing and evaluating the current trend and the possible future trends in luxury industry, as well as the brand position and brand equity, recommendations and suggested actions of Web2.0 branding will be provide for Patek Philippe. Key words: web2.0 Social networks Luxury brand
I. Newer Web 2.0
1.1 Trend of New Web2.0
The term Web 2.0 was defined by O’Reilly Media in 2004. This term is to describe “second generation of Internet-based tools and services that let people generate and control content and collaborate and share information online in perceived new ways” (Elraim Turban, 2012, Chapter 1 , P48, paragraph 2). To many aspects, the Web2.0 tools and social networks are tremendously influencing the way people communicate, collaborate, work and live. And as a matter of fact, the technology of Web 2.0 is upgrading and developing itself everyday. It is known that in the last couple years the newer Web 2.0 tools like Facebook, Tumblr, YouTube, Twitter have enormously grown and in a very rapid way catch people’s attention. In the book Electronic Commerce 2012(7th edition), statistics of the change in using social tools has been collected towards the new trend of Web2.0(Efraim Turban, Chapter 7): * Since March 2012,there were more Internet visits to Facebook than to Google. * According to Meeker et al.(2010), social network are the new kings of communication, replacing e-mail(as of November,2007) * Facebook Members exceeded 750 million(worldwide in June 2011, aiming at 1 billion dollars in annual revenue. * According to Bernoff and Li(2008), about 25 percent of all Internet users are engaged in social activities. This percentage is increasing rapidly. These statistics show that Web2.0 is no longer just about surfing, searching, reading , listening or watching. Nowadays, with the new functions of the Web2.0 social tools, they are all playing new roles into people’s life. People use these newer Web2....