THE PROWL

Course Project: Part 5

LXFM 730 Market Strategie
for Luxury
Professor Cannata
Evans Cooper
Sarah Murphy
May 19, 2019
WEARABLE TECHNOLOGY

OVERVIEW OF PROPOSED
PRODUCT

STRATEGIC OVERVIEW

GOALS & OBJECTIVES

UNIQUE SELLING
PROPOSITION

BRAND & PRODUCT

POSITIONING
 WEARABLE
TECHNOLOGY

THE LUXURY INDUSTRY’S RESPONSE

TO WEARABLE TECHNOLOGY AND
CARTIER
 WEARABLE • SmartWatches are considered a fast-growing business with
Apple leading with the way.
Wearable Technology
TECHNOLOGY • The industry is projected to reach over $70 billion by 2022.
• Luxury companies that have SmartWatches already, or some
association, include the following:
• Bulgari
• Montblanc
• Hermes
PROJECT REVENUE FOR SMARTWATCHES
• Rolex
• Gucci

Source : Statista 2019 Wearable Technology

 WEARABLE
TECHNOLOGY

What industry leaders are saying

about the future market of luxury
SmartWatches?

• SmartWatches are still in their embryonic stage for both

luxury and mass market consumers.
• Success is unpredictable.
• Others in luxury market out right feel SmartWatches will
not be a success in the luxury sector.
 WEARABLE
TECHNOLOGY

Yet some companies have stepped

one foot into the SmartWatch arena.
Tag Heuer announced the Tag Heuer Carrera Wearable 01.

Bvlgari unveiled the Diagono Magnesium, described by the

brand as “the first intelligent luxury watch.”

Gucci also had manufactured a smart watch, teaming up with

Will.i.am to promote the line.

Hermes has collaborated with Apple to create the Apple Watch

Hermes.
 WEARABLE
TECHNOLOGY

Cartier’s stance is …

… it doesn’t intend to engage in the SmartWatch

bandwagon, as it views SmartWatches as not equal to the
tradition and aesthetic of the company. According to an
executive at the company, Cartier feels SmartWatches may
be useful, but not “emotional,” like Cartier timepieces.
 WEARABLE WE FEEL THAT CARTIER CAN BE
TECHNOLOGY A PLAYER IN SMARTWATCHES…

…WITH A “SMART” PLAN

PROPOSAL
ONE WATCH, …

OUR PROPOSAL

…TWO WATCH FACES

SOLD TOGETHER
STRATEGIC
OVERVIEW Collaboration with Apple
Cartier will focus on the design of the watch band and an
interchangeable watch face.

Apple will provide an Apple watch face with the latest

technology that will fit with the Cartier watch band.

Design/Innovation
The watch band can be interchanged with both the Apple
watch face and a classic Cartier watch face.

This gives the customer the option for personalization and

the option of switching to a classic, timeless piece should
the technology becomes outdated.
STRATEGIC
OVERVIEW Price:
Interchangeable watch faces. Two watch faces (one Apple
and one Cartier) will be priced between $27,800 -
$310,000 - $3,000,000 (custom design).

The customer choosing option 3 (next page) will have the

ability to personally design his or her own watch.

Promotional:
Although the cost of the SmartWatch will be factored into
the price, it will positioned as an “accompaniment” or
“gift”.

.
STRATEGIC
OVERVIEW Promotional (con’t):

This Accompaniment Strategy accomplishes three

objectives:
Allows Cartier to be a pseudo-player in the
SmartWatch industry, as the company leadership is
not really that interested.
It serves as a way for Cartier to touch the market with
a new product.
Positioning it as a give-away makes the SmartWatch
element more disposable and mentally delinks it from
the Cartier brand -- like an jewelry cleaner or eyeglass
wipe.
 Snap-Off Faces

OVERVIEW OF
Snap-Off Faces

PROPOSED
PRODUCT

OPTION 1: White OPTION 2: Black OPTION 3: Diamond

Face + Smart Face Face + Smart Face Face + Smart Face

$27,800 $310,2000+
Two colors Diamond Trim
Diamond Trim Diamond Face
Limited Edition: 500 worldwide Limited Edition: 50 worldwide
One band One band
One diamond Set-in One diamond Set-in
Two faces: Two faces:
One face: smart watch One face: smart watch
Second face: traditional Second face: traditional
watch watch
GOAL AND GOAL:

OBJECTIVES Cartier will collaborate with Apple to create

a SmartWatch for their consumers that will
combine the luxury and elegance of
Cartier’s craftmanship and the latest
technology from Apple to increase Cartier’s
brand presence and value

OBJECTIVES:
• Become a small market player in the SmartWatch
business sector.
• Offer limited editions to attract customers to brand.
• Remain competitive.
• Offer a watch that can still be passed down, retaining
its market value.
• Able to measure market receptivity and effectiveness
of design and reconsider viability and direction of the
product.
UNIQUE SELLING
LIMITED EDITION
PROPOSITION

The Cartier/Apple watch will provide its

consumers the latest technology with the
additional option of having a timeless
Cartier treasure forever.

Same watch

No diamond face
UNIQUE SELLING
SUPER LIMITED EDITION
PROPOSITION Custom design by purchaser

Cartier puts its heritage, craftsmanship,

extravagance, and technology in your
hands with our super limited edition.
BRAND & PRODUCT Cartier
POSITIONING Luxury watch and jewelry marers
Focus is on craftsmanship
Unique styles and design
Not accessible to everyone
Designed and crafted for the elite of
society

The Cartier SmartWatch: THE PROWL

Still holds Cartier’s elegance, luxurious look,
and other brand elements.
Enables customer to access to SmartWatch
technology if he or she so chooses, at “no
cost.”
BRAND & PRODUCT HIGH PENETRATION
POSITIONING Apple

Rolex
Kate Spade Tag

Fossil
Calvin Klein LUXURY
Hermes
Tommy Hilfiger
Gucci
Bvlgari
Montblanc

Cartier

LOW PENETRATION
BRAND & PRODUCT
POSITIONING

POSITIONING STATEMENT

“To the Cartier watchwearer who

wants exquisite luxury and today’s
technology in one.”
PRODUCT
PURPOSE
PRICE
PLACEMENT
PROMOTION
PEOPLE
PURPOSE
Cartier’s blends:
ü Artistic Expression
ü Excellence

The introduction of THE PROWL:

ü Brand expansion
ü Offering technology to its
existing customer bases
ü Remaining current yet keeping
heritage alive
PRODUCT
Cartier Elements:
High Craftsmanship

Hand-made parts

High-quality movement

Rare, precision, cutting edge

Unique designs

Sublime aesthetics
PRODUCT
SERVICE GAURANTEE:

In accordance with the standard Cartier

guarantee, Cartier will negotiate with Apple to
provide technological updates and
replacements for the longer of 10 years or the
time Apple is manufacturing SmartWatches.
PRICE

$6.4 million

Cartier employs ultra and

extra pricing models.
PRICE $27,800
Two colors OPTION 1:
Diamond Trim LIMITED EDITION
Limited Edition: 500
worldwide
One band
One diamond Set-in
SmartWatch Snap-on

THE PROWL will, of course,

follow the same price model.

OPTION 2: SUPER
LIMITED EDITION
$2,800,0000
Diamond Trim
Diamond Face
Super Limited Edition: 50 worldwide
One band
One diamond Set-in
SmartWatch Snap-on
Custom design by purchaser
PLACEMENT

Cartier maintains high control

of its product availability.
Operates over 200 stores worldwide.
Also sales at high end distributors such as Saks
Fifth Avenue, Harrods, and Bergdorf Goodman.
Approved specialty jewelers
PLACEMENT Poly sensuality
Setting projects a feel of
luxury, extravagance,
comfort, elegance and
exclusivity

Magnificent, grandiose,
pristine settings

To offer even more exclusivity, the two limited

editions will only be sold in Cartier’ New York,
Los Angeles, and Paris locations only.
PROMOTION

Cartier hosts regular events to feature

the latest editions of its collections.
Extreme
Glamourous, star-filled
Elegant
Maintains a traditional and mono-directional tone
High level of communication quality in invitations
PROMOTION

#theprowlbycartier
Cartier will have launch parties in its Los Angeles,
New York, and Paris shops. Discreet.
Very limited invitation (100). Intimate event
Cartier will also record customer design videos
and place on Instragram and Linkedin.
PEOPLE Heritage
Royalty
Aristocrats
The Elite

Cartier has a strong

“People” element
Within a short period of time, Cartier gain popularity with
royal European dynasties and worldwide influentials,
including the family of the Russian Tsar and the Maharajah
and Maharani of India
PEOPLE

Cartier serves a social

stratifier

Perceived as superfluous
Source of sublime aesthetic
Hedonistic
PEOPLE

For Cartier, it starts with

the art of design.
PEOPLE

You will find celebrities in the movie

as well as on the street wearing
Cartier.

Stars of Hollywood, both

brand ambassadors and
everyday-wearers
PEOPLE Super Limited Edition
Royalty
World Billionaires

THE ELITE AND SUPER ELITE

Limited Edition
Celebrities
Affluent Millennials
Other VIPs
THE PROWL

The Premier Luxury

Technology Watch of Today
REFERENCES
• https://www.insideretail.com.au/news/cartier-snubs-smartwatches-
201505
• Source: https://www.businessoffashion.com/articles/fashion-
tech/will-luxury-smartwatches-work

• https://www.chronext.com/guide/cartier