Pandora Logo

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What is marketing and what is experiential marketing?

Marketing is a simple yet complex discipline that has been around since the beginning of product and service exchange. Baker (1976) writes, ‘The enigma of marketing is that it is one of man’s oldest activities and yet regarded as the most recent of the business discipline.’ Baker suggests it is regarded as the most recent business discipline as marketing is so important to gain consumer interest and ultimately increase profits for the company. Competition has grown in the marketing industry as society is becoming more influenced by friends/family to have products and services that they want rather than need, producing a collectivist society. As Fahy and Jobber (2015, p.5) said, ‘The modern marketing concept can be expressed as ‘the achievement of corporate goals through meeting and exceeding customer needs better than the competition.’ Although this quote mentions ‘needs’ it is often the marketer that presents a product or service as a need in order to make a customer feel like they need to purchase it.

Experiential marketing is the way companies can give an experience to the consumer in order to be able to sell their product or service. Fahy and Jobber (2015 p.185) said, ‘the creation of customer experiences is another avenue for organizations to deliver value for customers.’ Experiential marketing is intangible and so allows the company to find new ways to engage with consumers on a whole other level using more than just one sense. By doing this, customers are given a holistic experience (Schmitt, 1999).   

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The Disney Collection

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PEST

Political

  • Part of the precious metals market follows specific trading rules and regulations within the different countries.
  •  The Hallmarking Act of 1973 (UK) permits equivalent EU hallmarks to be recognised throughout the EU (Hallmarking Act, 1973).
  • UK is a member of the International Convention on Hallmarking
  • Silver products use the stamp S925 which means silver with a purity per thousand of 92.5%.
  • ALE is stamped on the majority of jewellery and is the initials of the Pandora founder’s father, Algot Enevoldsen. (Pandora)

Economical

  • The price and value of precious metals is measured due to their scarcity. Silver is the most abundant/affordable. (Statista)
  • Pandora products predominantly contain silver (Pandora Group) as well as 14K/18K gold.
  • During 2011/12 gold and silver prices rose significantly. Pandora’s products couldn’t increase in price due to them selling affordable luxury.
  • Raw material prices higher in 2012. These prices had an adverse effect on the gross margin in 2012 compared to 2011. (Pandora Group) 

Social

  • Charm bracelet concept very successful/stayed fashionable since the onset. Competition from Thomas Sabo and Links of London.
  • Charm bracelet has proven to be such a success driven with a growing and encouraging demand. (Pandora).
  • Large consumer base. Kept up with trends, e.g. rose gold (Pandora Rose collection)

Technological

  • Pandora production is in their six storey crafting facility in Gemopolis, Thailand. Innovation centre opened in 2013 for design, scientific research and technical development.
  • Employs around 10,400 staff, the majority of who craft the products. (Pandora Group). 
  • Online e-store where customers can order products to be delivered and create wish lists. (Pandora).                 

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Attitudes towards and usage of selected brands, December 2014 and June 2015-Mintel

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The importance of the marketing mix

The marketing mix is the set of decisions made by a business on how to achieve where they want to get to. (Fahy and Jobber, 2012). This consists of the 4 Ps: Product, Price, Promotion and Place. ‘A company needs to consider the marketing mix in order to meet their consumers' needs effectively’. (BBC). A firm needs to make decisions for each of the categories to establish a brand image and a unique selling point. It is important to plan courses of action for a company to take so that they know what goal they are heading towards and be able to measure the success of it afterwards.

Pandora’s Marketing Mix includes:

Product: A tangible product. Hand-finished jewellery made from gold, silver and gemstones. Range from charm bracelets, bangles, rings, necklaces and earrings. (Pandora).

Price: Set at ‘affordable prices,’ jewellery ranges from £15 for a single silver charm to £2,485 for a 15 CT gold necklace. However a lot of their jewellery cost under £200.

Place: 9,500 points of sale including 1,600 concept stores in 90 countries across the globe.

Promotion: Traditional marketing tools such as billboards, posters, bus adverts, television commercials and magazine pages. They also have a celebrity ambassador, currently Tess Daly to popularise the products. They have a YouTube account, Facebook page and Twitter account as well as providing an online wish list for customers searching online. They can create a list with products selected by them which can then be shared on social media or via email with partners, friends and family.  

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Image

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Bibliography

Fahy, J. and Jobber., 2012. Foundations of Marketing. Fourth Edition. Berkshire: McGraw-Hill Education.

Gobé, M., 2009. Emotional Branding| the New Paradigm for Connecting Brands to People. Updated and Revised Edition. USA: Allworth Press.

Baker, J. M., 2003. The Marketing Book [online]. Fifth Edition. Oxford: Butterworth-Heinemann.

Schmitt, B., 1999. Experiential Marketing. Journal of Marketing Management, 1999 [online]. 15 (1-3), 53.

Goody, A., 2015. Jewellery Retailing - UK - September 2015 [online]. Mintel.

Edwards, J., 2015. Tess Daly is making us want to smother ourselves in jewellery thanks to this new campaign. Cosmopolitan[online], 29 June 2015. Available from: http://www.cosmopolitan.co.uk/fashion/celebrity/news/a36886/tess-daly-pandora-summer-campaign-2015/ [Accessed 27 October 2015].    

Barrett and Paton, Financial Times, 2015

Bitti, M. T., 2014. How Pandora Jewellery grew to become a mega global brand. Financial Post [online], 22 Janurary 2014. Available from: http://business.financialpost.com/entrepreneur/how-pandora-jewellery-grew-to-become-a-mega-global-brand [Accessed 13 October 2015].

Pandora., #TessLovesPandora [online]. Available from: http://www.pandora.net/en-gb/explore/campaigns/uk/tessdaly [Accessed 2 October 2015].  

Pandora., Thailand Production [online]. Available from: http://pandoragroup.com/en/Careers/Pandora-In-Your-Region/PANDORA%20Production%20Thailand [Accessed 27 October 2015].

Pandora., Pandora e-store [online]. Available from: http://estore-uk.pandora.net/on/demandware.store/Sites-en-GB-Site/default/Default-Start?cm_mmc=brandsite-_-navigation-_-toplink-_-gotostore [Accessed 30 September 2015].

Statista| the Statistics Portal., Statistics and Facts about Precious Metals [online]. New York: Statista Inc. Available from: http://www.statista.com/topics/1395/precious-metals/ [Accessed 30 September 2015).

Pandora., The Pandora Story [online]. Available from: http://www.pandora.net/en-gb/pandora-company/about-pandora/the-pandora-story [Accessed 28 September 2015). Thrillgeek., Pandora Jewelry and Disney announce new partnership [online]. Available from: http://thrillgeek.com/2014/08/pandora-jewelry-disney-announce-new-partnership/ [Accessed 15 October 2015].

Pandora., Identifying authentic Pandora products [online]. Available from: http://www.pandora.net/en-gb/pandora-company/brand-protection/identify-products [Accessed 20 October 2015].

Pandora Group., Products [online]. Available from: http://pandoragroup.com/en/Products/Jewellery%20materials [Accessed 10 October 2015].

Pandora Group., Investor [online]. Available from: http://investor.pandoragroup.com/competence.cfm [Accessed 5 October 2015].

BusinessDictionary.com., Market segmentation [online]. Available from: http://www.businessdictionary.com/definition/market-segmentation.html [Accessed 4 October 2015].

BBC., GCSE Bitesize | Business Studies | The marketing mix [online]. BBC. Available from: http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/marketingmixrev1.shtml [Accessed 6 November 2015].

Links of London., Homepage [online]. Available from: http://www.linksoflondon.com/gb-en [Accessed 1 October 2015].

Thomas Sabo., Homepage [online]. Available from: http://www.thomassabo.com/GB/en_GB/home [Accessed 1 October 2015].

Toh, K. G., [photo]. Available from: http://www.referenceforbusiness.com/management/Pr-Sa/SWOT-Analysis.html [Accessed 4 January 2016].

Luxurys Jewelery., [photo]. Available from: http://www.businessdictionary.com/definition/market-segmentation.html [Accessed 4 January 2016].

Now that’s what I call Music., [photo]. Available from: http://www.nowmusic.com/now/now-00s/ [Accessed 5 January 2016].

Groupon., Classic Retro Sweet Selection - comes in a jiffy bag [photo]. Available from: https://www.groupon.co.uk/deals/gg-the-sharper-edge-14 [Accessed 5 January 2016].

Real Cool Savings., The super inflatable bubble chair: purple., [photo]. Available from: http://www.realcoolsavings.com/inflate/chairssu.html [Accessed 5 January 2016].

Beton, M., Westfield Shopping Centre Shepherds Bush London [photo]. Reading: Smugmug. Available from: http://www.markbetonphotography.com/UK/LONDON/Shephers/i-HWjn6vd [Accessed 5 January 2016].

Pandora., Pandora Signature, Clear CZ [photo]. Available from: http://www.pandora.net/en-us/explore/products/earrings/290559CZ [Accessed 5 January 2016].

Give Fun., Personalized Instagram Frame - Medium Size [photo]. Avaiable from: http://www.givefun.com.sg/personalized-instagram-frame-medium-size-free-delivery/ [Accessed 5 January 2016].

BritneySpearsVevo., 2009. Britney Spears-Toxic (Official Video) [video, online]. Available from: https://www.youtube.com/watch?v=LOZuxwVk7TU [Accessed 5 January 2016].

TheOfficialPandora., 2015. The Unique Connection [video, online]. Available from: https://www.youtube.com/watch?v=DRoqk_z2Lgg [Accessed 28 September 2015].

TheOfficalPandora, 2015. Capture her true essence [video, online]. Available from: https://www.youtube.com/watch?v=WS6z2JUs2Ig [Accessed 25 November 2015].

Hallmarking Act, 1973

 

Introduction to Pandora and marketing activity

Pandora is a leading international jewellery brand founded in 1982 with Headquarters in Copenhagen, Denmark. It produces hand-finished, contemporary jewellery for women of all ages. A range of market segments means there are an array different products to fit the age spectrum (Pandora). Pandora is especially popular with young women due to its affordable prices including a selection of charms for under £30. Pandora jewellery is sold in over 90 countries, 6 continents and 950,000 points of sale. Pandora has become such a successful jewellery brand partly because of their affordable prices. In 2011 the company diverted from ‘affordable luxury into higher-end designs’ (Barrett and Paton, 2015). This proved to be a mistake as they lost the Brand image and alienated its customers which resulted in their unsold products to be melted down to create more affordable jewellery again-clearly this is one of their best features.

Another reason of their success is because of their unique charms which are sold, make customers loyal to the brand. Pandora’s slogan is ‘unforgettable moments’ and this phrase is demonstrated in their charms which represent different components of an individual’s life. Their charms include animals, objects, flowers and decorations as well as life events such as 18 badges and a ring to show engagement plus hundreds more. Often when customers purchase a bracelet with a charm(s) either for themselves or as a gift, they will then go on to add to the collection which for Pandora means repeat purchasing and loyal consumers. 

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The unique connection

Target Audience

Pandora sell women-only products therefore their target audience is predominantly women. However men also have to be targeted as the gift-buyers for wives, girlfriends, friends and family. Pandora’s original target audience age was between 25 and 49 (Barrett and Paton, 2015), however they have since been branching out to younger audiences. (Bitti, 2014). Pandora’s mission is to offer women luxury jewellery at affordable prices (Pandora) therefore this means that their target market has to have a sufficient disposable income as the prices for products range from £15 to over £2000. The charm bracelet is perhaps the most popular product as Pandora writes it is ‘world famous’ (Pandora). The idea of the charm bracelet is too remember special moments and keep memories in the form of a charm on your wrist permanently in order to create a story.

Due to the original age range of 25-49, Pandora often target mothers such as in their advertisement of ‘The Unique Connection’ which demonstrated how every woman is different and has different qualities. ‘To celebrate the woman in your heart.’ (TheOfficalPandora, 2015). Pandora although originally focusing on middle aged women, created a strategic alliance with Walt Disney by sponsoring the Wishes Nighttime Spectacular at Magic Kingdom Park in Florida in Autumn 2014 and launching the original Pandora Disney collection which includes characters such as Mickey and Minnie mouse. (Thrillgeek). They are now however ‘heavily targeted towards female 16-24s who see it (the brand) as being fun and trendsetting.’ (Goody, 2015). The advert below shows the Essence collection aimed at younger women.

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Capture her true ESSENCE

Ten components of a successful experiential marketing campaign

TARGET AUDIENCE

All features of the experience need to be tailored to a specific kind of person who will most enjoy and benefit from the experience.

TAKE OUT

Having something to take away from the event is important for a customer as it allows them to remember to visit the brand again either in person or online. It needn’t be physical.

PERSONAL

The whole marketing experience has to be about the customer and being personal will create a relationship between the company and customer making them more loyal and feel more valued.

CUSTOMER FOCUSED EXPERIENCE

Everything needs to feel like it was created for them.

THEME

Having a theme for an experiential marketing campaign is crucial to give a holistic experience for the consumer. As Schmitt (1999) said, ‘the ultimate goal of experiential marketing is to create holistic experiences that integrate individual experiences.’

APPEAL TO 2 OR MORE SENSES

Appealing to two or more senses is a key component as memories and experiences can be triggered when different senses are involved.

INTERESTING, ENGAGING & EXCITING

It has to be interesting and exciting so consumers are engaged and remember the experience.

SOCIAL MEDIA INVOLVEMENT

This allows a campaign to be recognised everywhere even by people who didn’t attend the event.

INOVATION

It has to be different and new. If it is original it will be more exciting.

LOCATION

Location is key to hitting the right target audience at the best time.

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Music

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Inflatable chair

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Westfield, Shepherds Bush

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Toxic-Britney Spears

Sweet tooth

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Instagram frame example

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Earrings

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My own collection of Pandora jewellery

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SWOT Analysis

Strengths

  • Pandora sells affordable luxury jewellery which enables them to expand their market to people with less of a disposable income
  • Hand-finished and authentic jewellery which makes it more valuable and sentimental
  • The use of charm bracelets creates loyal customers who will repeat purchase to keep adding more charms to their bracelet and other jewellery as well as introducing friends and family to the brand either by word of mouth of by giving gifts
  • It’s sold in over 90 countries with 950,000 points of sale in the world giving it great recognition within the international jewellery market

Weaknesses 

  • There are many cases of counterfeiting from competitors which allows people to purchase cheaper fake items perhaps even not knowing they aren’t real which could affect the image of the brand if easily damaged and broken etc.
  • All the production is done abroad in Thailand so communication with Denmark may be difficult at times

Opportunities

  • Due to affordable prices, Pandora have managed to branch out from original target audience age range of 25-49 to a younger range of women
  • Can expand into different cultures due to being international
  • Can partner with other companies to produce jewellery such as the Disney collection and Pudsey Bear for Children in Need

Threats

  • Competitors around such as Thomas Sabo and Links London who also sell their own types of charm bracelets and other jewellery at similar prices
  • Affordable prices may perhaps put off consumers looking for luxury which is often associated with higher prices

 

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SWOT diagram

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Market Segmentation

‘Segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics,’ (BusinessDictionary.com). Segmentation is extremely important for businesses to be able to target a specific type of person for a certain product or service. By doing market research and watching consumer behaviour,  not only by looking age and gender but also more in depth such as shopping habits and internet usuage, this allows marketers to directly entice consumers who they think will enjoy their product or service.

For my experiential marketing campaign for Pandora, steering away from the original target audience of women aged 25-49. I am going to focus on targeting 18-21 year old women in the UK who enjoy regular shopping in store and online, wear jewellery on a daily basis and have a Facebook account. The likely consumer is to have a healthy disposable income but likely to still have parental financial assistance and either be still at school, college, in a job or at University. The target audience are to be prone to especially feminine traits enjoying sparkles and shiny accessories and are either loyal Pandora customers already or a new introduction to the brand. This age group are commonly on social media throughout a range of mediums such as smartphones, tablets and computers therefore they are likely to share their experience with Pandora which will increase the awareness of the brand and it’s products hopefully resulting in an increase of a younger audience.

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Brand personality – Macro image, December 2014 and June 2015-Mintel

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idesignpandora-My experiential marketing idea

Target audience, theme and appealing to two or more senses

My experiential marketing campaign for Pandora is going to be a design competition where customers are able to design a charm that represents a memory from their life particularly their childhood and is in for a chance to receive their charm in silver and/or gold for Christmas. It is aimed at 18-21 year old women who enjoy wearing branded jewellery and enjoy shopping. They are likely to be quite feminine and trendy. The theme would focus around childhood and memories. This is because Pandora’s mission is all about unforgettable moments and creating a story (Pandora.net). Customers will be able to enter the store and experience a reverse in time as the top songs from the noughties are played through the speakers, retro sweets are available at hand and inflatable chairs to perch on whilst they look at posters of famous celebrities from the decade and absorb the atmosphere. These factors form the component of appealing to two or more senses as customers can taste and hear as well as see the event. As Marc Gobé (2009), said ‘sound has an immediate and, to a large extent, cognitively unmediated effect on recall and emotions.’ By using music that was popular during childhood and adolescence for the target audience, certain emotions and memories would be recalled and a sense of nostalgia achieved.

Location

The competition would take place in Westfield shopping centre, Shepherds Bush, London within the Pandora store. This choice of location is good because it is likely to attract young women who are on a shopping day as there is a wide variety of stores available as well as restaurants and entertainment, attracting shoppers for a full day of retail therapy. In terms of timing, middle of October would be my option, the actual event would take place on a Saturday. If young people are working throughout the week, either in a job or at University, college or school then Saturday is more likely to be free as well as the fact that they may be looking for an outfit to wear that weekend at a social event or even shopping for Halloween costumes during this time of year. They may also even have a job in the shopping centre which could attract them to Pandora in their breaks. Although Christmas may seem like a long time away and a lot of people may leave their Christmas shopping until a later date such as after the Halloween and Guy Folks celebrations, it is perhaps better to do the event in October as customers may feel less guilty doing something for themselves rather than shopping for others at Christmas. They may also have more time during this period as shopping near Christmas can become very stressful and time restricting, not to mention extremely busy in Westfield. The event taking place in October also allows time for the competition winner to be selected by Pandora staff votes and for their design of charm be produced and sent to their home in time for Christmas.

Take out

Tablets would be provided with software downloaded to allow customers to firstly create an account with Pandora or use their log in details if they are already part of the online Pandora Club. And then to design their charm with a range of choices. This will allow Pandora to add these details to a database thus being able to market the customers in the future for special events, promotions and new product launches. A name, email, address and if wanted a phone number will be taken by each individual as they sign up and create an account with a password. However as already an option, they will be able to link their account through their Facebook as well. As currently in use, becoming part of the Pandora Club allows consumers to share their online wish list to friends and family in the hope of receiving gifts for Christmas, Birthdays etc. therefore letting the customers have something to take out from the experience which they can continue using in the future. This sharing also creates awareness of the brand and possibly new joiners.

Social Media involvement

Another part of the experience would be an Instagram ‘frame’ prop which is popular at parties and other events. With the Pandora Instagram username, ‘theofficialpandora’ and the hashtag #idesignpandora, customers can pose on their own or with friends in the Pandora store and photos would be taken by a professional photographer then uploaded on the Pandora Facebook page and Instagram as well as a selection on the main website which customers who follow and like the pages will be able to share on their own Facebook walls and other social media accounts, again sharing the event and the Pandora company itself to gain wider recognition. This is great use of social media involvement in order to widen the knowledge of Pandora as a brand but also to help reach their target audience of girls between 18 and 21 as it is likely the majority of their followers will be in the same age range as many of the girls who come into the store and take part in the event. If they are sharing pictures and posts about the Pandora event then their friends will see this and perhaps show an interest in the brand and its products which may lead to them visiting a store on their next trip to the shops or looking at the e-store online.

Personal

The idesignpandora event is personal to the customer as the different senses engaged in the store will help trigger personal memories. By designing a charm for themselves, it allows the girls to be imaginative and create something that means something to them. This will inspire woman to express their individuality and celebrate who they are and think of unforgettable moments. (Pandora). Customers may be on their own or with friends or family. If they are with someone they have known since childhood, then this may help them think of a memory which they could symbolise with a charm. Being with a group of girlfriends of similar age may be an even more enjoyable experience as they can all design their individual charms as well as taking a photo together, listening to music they may all remember and perhaps evening purchasing jewellery in store. By designing a charm which they may possibly receive at Christmas, the customers may want to purchase a bracelet so they can add this charm on later or if not the winner, ask for a different charm as a Christmas present. By purchasing the bracelet, consumers are more likely to purchase more charms in the future to expand their bracelet and develop their personal story.

Innovation

This campaign idesignpandora is innovative for Pandora as it allows a piece of jewellery to be completely designed by a member of the public. It is original as it gives customers an experience like no other where rather than choosing a charm from the selection already on sale, they can come up with their own idea that reflects their individuality and symbolises an unforgettable moment in their life. This fits in with Pandora’s mission to allow woman to express their individuality and tell their stories in the form of jewellery which can be worn day to day. It will stand out from other jewellery brands as being creative and innovative. Many jewellery retailers can engrave in jewellery for customers, but actually being able to design the shape and detail of a piece of jewellery is a big step up and will shine above competitors such as Thomas Sabo and Links London.

Customer focused experience/interesting, engaging and exciting

The whole experience is completely customer based as although Pandora will be promoting their brand and trying to sell their products, the main focus of the event is to bring back memories of childhood/adolescence to young adults and through this, give them a good time. As customers enter the store, they will be welcomed by a member of staff who will be welcoming and handing out sweets such as Refreshers, Dip Dabs and Flumps. Music from Amy Winehouse, Britney Spears, Busted and more great artists from the noughties will be played from the speakers as customers design a charm all for themselves whilst enjoying being ‘papped’ by a professional photographer in the Instagram frame. The main objective is for the customers to have fun and be engaged in an interesting and exciting event all for them whilst shopping. This is achieved by the array of music, an alternative from the usually quiet and collective Pandora store vibe. It is also to be achieved by the different activities customers can take part in such as designing a charm, looking at different posters of famous celebrities from the decade and eating retro sweets whilst chilling on the inflatable chairs.

The event would need at least six Pandora staff plus a photographer to help the event run smoothly and be successful.

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Total Word Count

3,497 words