Under the Influence

Product Placement Rules and Rulings…

We’ve commented previously on product placement – both its holistic impact on television as well as its presence in the recent Tron: Legacy film released at the end of last year. The increasing presence of this tool reflects a synergy between increasingly curated advertorial and a heightened sophistication among audiences to know well enough – but hopefully not too well – when they are being sold to.

The new James Bond film due out next year was recently announced to have accrued $45m from product placement, shattering the previous record held by Minority Report. Recent advertising rulings in the UK make it mandatory for an icon to appear in the bridge between adverts and the show, informing a viewer when a segment will feature a placement so they know to be wary. Does this not defeat the object though? Meanwhile, Ofcom last month published survey results showing that few seem to be swayed by product placement. As testimonials like the above image show (albeit tongue-in-cheek from one of our favourite Twitter followers), there is certainly something to be said for the influence of a plain ol’ sponsorship or simple advertisement. For the last word though, it would probably be useful to catch documentary maker Morgan Spurlock’s new film, The Greatest Movie Ever Sold.

Luxury is Dead, Long Live Luxury

A sad day for Zeitgeist today as car manufacturer Daimler announced the beginning of the end for the luxury brand Maybach (courtesy of the excellent Luxuo blog). The Maybach is an incredibly expensive, incredibly indulgent, ridiculously large and ridiculously powerful car. It’s exclusivity is second to none, to the extent that actually too few of them are being sold. Despite risqué attempts at brand activation with cutting edge artists like David LaChapelle and despite manufacturing only a hundred cars for some lines, the dream is over. How does luxury struggle onwards as the world crawls out of the recession?

The pleasure of Zeitgeist’s company was requested for ‘Artisan’ afternoon tea at Christian Dior on London’s Sloane Street this week. Luxury was front and centre. More than playing on the bling nature of the brand name, the idea was to present the fantastic workmanship that went on behind closed doors.

At the event, with the help of an Italian translator, Zeitgeist was able to speak to one of the aforementioned artisans, who was responsible for making handbags. The Florentine, wearing an immaculate white labcoat with the Dior logo above the breast pocket, said he had no quota for how many bags to produce per day or week, that Dior demanded absolute perfection instead in every bag, no matter the time taken. Though each person will have his or her own speciality, they will work across both the Dior and the Dior Homme brand. Elsewhere in the store, people worked meticulously on Dior jewellery and watches with incredible patience. The work pace of those in the jewellery and timepiece department was similarly dedicated to quality over quantity. From a branding perspective, not only does this ensure a higher rate of product satisfaction, at the same time it also helps to enforce scarcity.

While all this was occurring, waiters roamed the boutique with tripled tiered treats, ranging from caramel pastries and petites tartes aux framboises to mini cupcakes with swirls of icing. The whole affair felt very similar to that of the recent Miss Dior Cherie campaign, directed by Sofia Coppola, who coincidentally directed a very similar scene in Marie Antoinette. Dior definitely had its thinking cap when it came to integrating retail environment and through-the-line campaigns. The event next goes to Tokyo.

Elsewhere in the fashion sector, Louis Vuitton streamed its Paris Fashion Week collection over Facebook (again), and Burberry’s collection in London was broadcast in 3D. And what of luxury in general, how will it manage in a world of frozen credit? Zeitgeist recently listened in on a Datamonitor webinar called “Recovery from Recession”, (definite articles clearly not being a trend for this year according to Datamonitor). Consumption has slowed holistically because people no longer have the money, or access to borrowed money, that would allow them to make those purchases they otherwise would have done. This economic realignment – some might call it sanity – will hopefully be a relatively short-term affair. There is a worry for luxury brands however that these more frugal tendencies will become deeply ingrained in the buying habits of their potential or erstwhile consumers.

As such, there has been a trend by some brands to open up further to the masses. This has its advantages in that it can persuade people to trade up, especially concerning “everyday luxury items and treats” which are “a treat, rather than a representation of lifestyle”. “It is important that the long term image of the product is not hindered through aggressive discounting policies.” For Datamonitor, Grey Goose is a fine example of this, as it sells below retail price in the duty-free sector to great success. The fact that it is not discounted at a supermarket – where a shopper might see it every week rather than on infrequent trips to the airport – means the brand retains its premium image despite price cutting in some choice locations. Value added services, in this case a cocktail guide, also help. For those that are able to keep up their pre-recession spending uninterrupted, the trend is toward more arcane brands, such as Loro Piana. Shops like Escada, cognisant of consumer fears over reckless spending, have provided unbranded paper bags of late.

With the rather large hiccup of the recession seemingly over, luxury brands can certainly breathe a very small sigh of relief. Just how much people will want to spend on arguably frivolous products in the years to come, and, importantly, how discreet they will wish to be about it, will be a very important factor.