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Marketing as an Experience Design: Experiential Marketing in The Context Of

Conference Paper · December 2020

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Abstract:
This paper is concerned with the importance of Experiential Marketing and how it is utilized
by luxury brands, also how this has aided them in achieving the fame they have acquired
throughout the years. The discussions defined here within centre around the combination of
globalization’s rapid growth, mass production’s reduction effect to prices for products and
Communications enablement of consumers gaining access to global luxuries; the discussions
further develop into how this led to the necessity for Experiential Marketing. This paper not
only focuses on how marketing has transformed within contemporary times due to the
influences of the 20th century changes to lifestyle but also how Experiential Marketing has
played a hand in this. The various benefits to companies and businesses that incorporate this
technique into their marketing mix are highlighted in this paper but also it investigates the
necessity of it. This study conveys qualitative research undertaken into the practices of
companies such as Hermès, Apple, Moët & Chandon and Disney and their success stories.
With the aid of case studies additional in-depth data has been integrated into the research with
information supporting how experiential events have aided with increasing brand awareness,
sales figures and interest percentages.

Keywords: Experimental Marketing, Marketing, Luxury Brands, Luxury Customers

1 Introduction
As the world continues to evolve and grow, there are more and more companies across the
globe that are becoming further developed and increasingly innovative; as they move away
from commodities, goods and the service economy, they move in the direction towards an
experience economy; many brands have recently identified this trend and companies have
realized they must follow suit in order to be competitive. With an influx of options that
consumers can choose from, it is no longer sufficient for a brand to only offer a product or
service, but rather they need to reach above and beyond to provide an experience that is
memorable, engaging, and worth a premium [1]. Luxury is the classification only given to a

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limited number of brands that have achieved a quality far beyond the expectations of their
consumers but also in terms of the companies themselves there are only a minute fraction
however they have a major influence and vast control over the general market. These brands
associate themselves with the highest quality in every aspect which leads them to setting new
standards for rest of the businesses in the market. Marketing plays a major role in their brand
status thus doing something out of the box and completely new to the game is required
constantly. This has laid out a path for the use of experiential marketing, which provides its
customer with the ultimate connection to the brand.
This paper is a series of critical reflections on the importance of Experiential Marketing in the
context of global luxury brands. Experiential marketing is still a very new concept to the
marketers as well as to the luxury brands [2]. However, thanks to the success of experiential
marketing, a large proportion of all the top tier brands across the globe have integrated a
channel, based upon it, into their marketing mix. Luxury brands need to stay in the forefront of
their luxury customers’ preferences and create brand loyalty among them by connecting with
these customers rather than just communicating with them. The number of alternative choices
at the disposal of the customers is vast and numerous, this has led to the power being shifted
from the seller to the buyer. Merely providing a product or service to satisfy their need is not
sufficient enough, the human senses are the key to the success of the new form of marketing.
Brands need to apply tactics to stimulate taste, sound, touch, smell and the other senses to evoke
powerful memories in the minds of their customers and find new ways to give expression to
their desires.
Today's customers demand more than just the features and benefits, quality of the product or
the brand image. They want products, communications and marketing campaigns that dazzle
their senses, touch their hearts and stimulate their minds (Experiential Marketing). The aim of
Experiential Marketing is to create lasting connections with customers which begins with
knowing the customers first and then identifying what appeals to them.
Experiential marketing, or creating an experience as a commercial product, has long been
attributed to theme parks. Some academics say the idea of an experience-driven economy can
be traced back to the opening of the ‘quintessential’ tourist attraction, Disneyland, back in the
1950’s [3]. According to Disney’s 2011 Annual report, their domestic parks produced $9.3
billion for the company [4], contributing about 25% of Disney’s overall Revenues and 15% of
its stock value [5]. This has led a lot of researchers and interest groups to study experiential
marketing, though this concept entered the marketing field in 1982, over a short period of time
it has become a key concept to understanding consumer behavior.
Many of the multinational companies such as Prada, Apple, etc. are promoting experiential
marketing to be the major discipline forming the basis, while online, direct, advertising, and
the remainder of the marketing mix becoming the supportive roles that provide aid/backup
during live events. One of the impacts of companies adopting experiential marketing is that
over $100 billion in USD is being expended annually on experiential programs globally spread
over tens of thousands of brands [6]. Ongoing comprehensive research being conducted by
both specialists and marketers has led to the discovery that conventional media channels such
as TV and radio; and one-way communications for example adverts, are becoming less and
less effective. This can be accredited to various factors and influences such as noise/clutter,
media fragmentation, development of interactive technologies also generation X and Y; X
being older generations that are not accustomed to interactive technologies and Y being the

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newer younger generation, which prefers to use tools and technologies to purposefully avoid
any and all ads e.g. ad blocker add-ons [7].
This paper also brings attention to some of the global luxury brands that did not perform as
good due to them being unable to adapt to the persistently transitional market in contrast to the
brands who responded appropriately to these market changes. Technology advancement has
allowed for new media forms to improve upon the quality of customer engagement with luxury
quality brands, which has also had a negative impact on the use of traditional forms of media.
However, advertising on TV still maintains one of the largest budgets for marketing, on the
other hand consumers are actively engaging with technology to avoid adverts, which has cost
millions of pounds to design, coordinate, film and produce for airing [7].
Hew Leith former M&C Saatchi director and CEO at agency 10x. "Advertising just isn’t
working anymore," said Leith. "You are seeing people skip TV ads if they can and [a growing
number] of people have ad blockers."
He claims that experiential marketing is growing for two major reasons. Firstly, because
millennials would rather tell people about something they have done than about something they
have got. The second is that they can share these experiences on social media. He says FMCG
brands have traditionally been at the forefront of using experiential media but this is rapidly
spreading to other markets as they realise the benefits of sharing these experiences digitally.
This paper investigates the various benefits to companies and businesses that incorporate this
technique into their marketing mix. This study conveys qualitative research undertaken into the
practices of companies such as Hermès, Apple, Moët & Chandon and Disney and their success
stories. With the aid of case studies additional in-depth data has been integrated into the
research with information supporting how experiential events have aided with increasing brand
awareness, sales figures and interest percentages.

2 Research Background
One of the key characteristics for a luxury product is staying true to its roots, this means the
company and the production of their products should stay in their original location rather than
transferring manufacturing to countries where the costs for production are significantly lower.
A great example of this are the products by Chanel or Hermès that are still being manufactured
in France, where as the brand Dior has moved out of the country thus downgrading it to a
premium product and losing the luxury title it once had [8]. Bernd H. Smith in his book
“Experiential Marketing” describes experiences as private events that take place in response to
some situation [9].
For the desired customer experience to transpire, the right environment and setting is very
crucial. As mentioned earlier in this paper, providing consumers solely with goods and services
is no longer enough to satisfy them or enough to earn their loyalty to the brand. In a world
saturated with largely undifferentiated goods and services the greatest opportunity for value
creation resides in staging experiences that create lasting memories with which the customers
are able to connect and bond to [11].
Kapferer et al. [8] discuss the fundamental drivers of change for luxury in their book ‘The
Luxury Strategy’, outlining that female emancipation and world peace were the two original
drivers but were later boosted in the 20th century by democratization, increase in spending
power, globalization and communications.

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 Democratization implies firstly that everyone is given the equal right to access the domain
of luxury, secondly it suggests that historical social principles and fundamentals are
progressively weakening into nothing, this is supported by the fact that both low and high-
income households are able, if they desire, to purchase a luxury brand’s product.
An increase in spending power is due to “a qualitative and quantitative linear growth in the
consumption of most products”, this growth is the reason for the advancement of consumer
society and existing marketing strategies, resulting in the creation of premium and luxury
products. This growth has also allowed for the average man/woman to be able to afford luxuries
they would not have been able to in the past thus increasing the potential target market for
companies and businesses.
Globalization’s role in changing luxury was the speeding up of the increase in spending
power, this was achieved by natural development of wages being increased over the decades
but also with the prices of almost all manufactured products dropping drastically. Globalization
also offers accessibility to completely new products that can be considered as luxury such as
exquisite French wines, extravagant silk clothing and exotic cars.
Communications is the final contemporary driver of change that impacts luxury directly,
this is accomplished in the forms of mass media, global communication and international
travel, these factors have allowed for news and information to spread from one corner of the
world to the other at a fraction of the time it would have taken only a century ago, thus enabling
consumers to access the luxuries they have constantly desired as frequently as they desire.
International travel has also allowed for the customers to go to the product and experience the
production and manufacturing of it for the memories of a lifetime rather than just receiving the
product to their doorsteps [8].
Pitkãnen and Tuohino (2006) [10] defined experience as effective events that have a strong
impact on the perceiver whereas Pine and Gilmore (1999) define it as memorable events.
Experience marketing offers engaging, interactive and entertaining brand experiences. Pine and
Gilmore (1999) [11] suggest that the four realms of the experiential framework, namely
entertainment, educational, aesthetic and escapist should be taken into consideration in order
to design a rich, compelling and engaging experience. These four realms frequently intermingle
to create unique individualized encounters. Entertainment is absorbed passively via the senses.
As the Experience Economy advances in its techniques of immersing consumers, people will
investigate new and diverse ways for creating an increased number of rare experiences.
Entertainment occurs when the guest passively absorbs the experience through their senses
while Educational Experience involves the active participation of the guest. The Escapist
Experience on the other hand involves immersion of much greater intensity compared to the
above two. It actively involves and immerses the guest in the experience.
“Experience marketing can create emotions by making entertainment for customers,
allowing them to escape from the reality, by educating them and giving them aesthetic objects
or places to see” [11]. In the updated version of “The Experience Economy”, B. Joseph Pine,
James H. Gilmore discuss the four values for creating opportunities within the Experience
Economy starting with the importance to shift from mass production to mass customization,
meaning companies should be producing only and exactly what individual customers want.
Mass customization helps in overcoming the gap between what customers settle for and what
exactly they want. The elimination of this gap would create the greatest value for the customers
and thus for the businesses. Secondly, mainly the companies in the service sector should be

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directing their employees to act in a way that engages their customers. Thirdly, companies
should discover methods to explicitly charge money for the time spent on experiences. A large
proportion of industries would greatly profit from looking to separate experiences based on
‘free’ or ‘pay to play’. Finally, experiences should produce more transformations i.e.
businesses enabling alterations would charge not only for the time spent but also for the
subsequent changes that come from the time invested.
This paper examines luxury brands such as Apple, Hermes, Prada and a few others which
have moved beyond the old paradigm of features and benefits and have thus successfully
utilized the facets of experiential marketing. Alternatively, some focus will be given to brands
that have room for improvement which they can easily obtain with the implementation of
experiential marketing into their company’s marketing mix.
The use of experiential marketing by luxury brands has allowed for them to engage with
their consumers through various experiential events which plans to attain the marketing
communication targets while also adding merit to the target audience's lives. Examples of
successfully implementing experiential marketing has been carried out by some companies for
several decades without it being taxonomized. These companies created lasting connections
with their customers which in turn helped in forming and the maintaining of a loyal consumer
base. Companies such as Sea World, Disneyland and Universal Studios have enticed all of their
consumer's senses by providing them with multiple in person experiential events based on their
brands which are further enhanced through their other forms of marketing communication
channels. By allowing consumers to visit their amusement parks, it has allowed the companies
to provide them with the enjoyment of experiencing the universe of their preferred animals,
characters and creatures first hand. Disney specifically has created the experience for their
target audience to see, hear, touch, taste and smell their various brands. This has been achieved
through the successful creation of immersive environments which provide the consumers with
experiences that produce various positive emotive responses [7].
Another more recent example would be Apple that has been able to successfully attract
customers into its stores while also driving sales per square foot to a magnitude greater than
any other typical retailers, this is due to their focus not only on the products they provide but
also on their customers and the in-store experience provided. Apple drew inspiration for its
retail front by studying the hospitality experiences at Ritz Carlton and various other boutique
hotels. This has allowed for them to change the landscape of how customers shop within their
stores, their first major change was the removal of a central checkout desk/cash register which
is normally found in almost every other store; this instead was replaced with roaming sales
assistants which are actively engaging with the customers and attend to their individual
requirements/needs. Another change is the addition of an interactive genius bar which provides
hardware repairs but also immediate support for customers facing issues with their purchased
items. The final change made was for product purchasing as there is now an ‘EasyPay’ self-
checkout where all customers are able to scan the barcodes for the items they wish to purchase
and then pay for it using their apple accounts [12]. The non-monetary burdens such as a
disorganized store or long lines at the checkout can outweigh the customer's consideration of
price, this explains the significance of sensory marketing.

3 Methodology

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 This paper uses the case study approach to analyze the impact of experiential marketing on
the luxury sector of marketing. Case studies are the preferred strategy when questions such as
“why?” and “how?” are being posed. When the investigator has little control over events and
when focus is on contemporary phenomenon within some real-life context [13].
With globalization taking place at a rapid pace, Experiential Marketing has proved to be
advantageous over traditional marketing. To examine the growing importance of experiential
marketing and the impact it has on the success of a company in context of the luxury brand,
keys words such as “Experience”, “Experiential Marketing”, “Consumer Experience
Management (CEM), etc. have been used to locate relevant existing journals and literature in
this field to derive the necessary information which was then categorized based on relevance.
“The Experience Economy, Pine and Gilmore, 1999” [11] is one of the earliest books written
about experience marketing, in which Pine and Gilmore mention the shift towards a new
growing economy, i.e. the experience economy. Scanning through the scholarly articles,
professional articles, books, etc. that were collected helped in identifying the most important
articles. Going through these chosen articles on a more in-depth level of detail after scanning
is skim reading. Sheila Carbone and Haeckel claim to have launched the “experience
movement” in 1994 [14], however Holbrook and Hirschman (1998) [15] already wrote about
customer experience in an iconic article over a decade before in the year 1982.
Qualitative research has been the basis for conducting this study. Scholarly articles, books,
professional articles, etc have been used to gather the data relevant to this study, which has
helped to develop a further understanding of the vital importance of experiential marketing in
the constantly evolving current market situation, where brands are not able to compete against
their competitors by relying solely on the features and benefits they offer to their consumers.

4 Analysis
Over the years, both psychologist and marketing researchers have been working towards
developing imaginative mythologies for the purpose of exploring customer experience. These
experiential mythologies use picture collections, photographic techniques, storytelling and
other methods to understand how customers think and feel about a specific product.
Also, over recent years there has been a drastic growth in the number of companies
successfully incorporating experiential into their marketing mix, the reason behind this new
change is due to marketers evolving their strategies, based on research carried out, in order to
meet the requirements, set out by the companies they work for and to ensure that they continue
to be successful [9].
As luxury products are designed to cater for people with high net worth, these consumers
also have a wide variety of options available to fulfil their needs, thus it is very important for
a luxury brand to reach this client with a special story and give them an entirely new experience
that creates a long-lasting memory. The target audience for these brands have high potential;
these buyers of luxury goods are accustomed to attending multiple events of the same nature
as well as seeing high-end quality products on a daily basis, thus it is extremely important to
associate with luxury by meeting its requirements but also customizing each product to match
their profile.
Brand ambassadors play a vital role in influencing various clients and associate the brand
with a specific segment and class. One of the highly successful experiential marketing
examples that was carried out by the company Mercedes where A$AP Rocky appears in “Get

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a Job” co-starring the CLA coupe with the purpose of creating a storyline for the product; it
was one of the shortest videos with a significantly positive influence on the viewers.
On other hand, it took another artist Natasha and Kate in “Spend time with Family” where
both the cars were developed to serve different segments of the target audience. The themes of
each of these videos was set up with the intention of using the products to target families for
their A class car and youngsters for their CLA coupe; the families would directly get attracted
through the singers and the rappers would influence the youngsters who would be following
the theme and experiencing it.
Other variants were collaborated with for other themed songs and this is how experiential
marketing played a positive role for Mercedes; by providing a storyline to its brand and adding
value in its line of products within the different segments of their car range and the market.
Apple has been able to create engaging retail stores, which makes shopping in the store an
experience for its customers. Apart from utilizing the retail space as an opportunity to build
relationships with their customers with relevant, fun and intimate experiences, Apple also holds
workshops to educate and inform their customers which not only furthers the customers’
knowledge about the product but also makes the transition from PC to apple smoother.
Educating the customers is a very important element of Experiential Marketing.
Luxury products are bought for the purpose of adding value to the name of the owners but
also to create a status and impression in the social culture. This has drifted almost all the luxury
brands to move towards the new revolutionary marketing strategy; where the consumers are
not just provided with the knowledge of the product but are also made aware about the brand
itself and its products in an altogether package. This kind of marketing creates an emotional
and mental attachment for the target audience towards the brand, thus making them to be
extremely loyal customers that return repeatedly. While marketing pools a large amount of
profit to be gained, this form of marketing has a high price tag attached to it which makes it
only appropriate for luxury brands to incorporate and apply it to their products.
Moët & Chandon developed a campaign called “La Mini Fete Moët” where they had
recreated a traditional themed carnival experience with a high end luxurious but still
approachable twist for all consumers. The activation however was limited to a set number of
high-end clients, which gave them an exclusive feeling. This creates a connection between the
brand and its valuable customers as well as helping them retain and show that they are highly
valued and associated to the brand. Where the valued clients were provided with a romantic
ambience with food and drinks. A playful experience was created for the purpose of adding to
the story line, this was mainly directed towards the consumers that were not wanting to
experience a romantic environment, the playful experience was attained by the brand
management team.
Being a luxury champagne brand Moët & Chandon has a set and limited number of
customers to target. Experiential marketing helps the brand to attract the buyers for its products
and create a craze for its demand in the market, this is achieved by not only having an exclusive
or high-quality product but by also adding more to it, this is achieved through the creation of
an exclusive value and adding story to its brand. Engaging customers and providing them a
valued experience is the main aspect behind experiential marketing, this approach has led the
luxury market to provide an innovative and completely different approach to fulfilling the
needs of its valued customers.

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 In a world where consumers are increasingly favoring the online retail experience, it is time
for brands and retailers to up their game in attracting them to their physical stores. It’s time to
embrace retail spaces as an opportunity to build relationships with experiences that are relevant,
intimate, and fun.
When it comes to clothing brands Hermès have associated itself with experiential marketing
and taken it to a completely new level. Bali Barret, the silk scarf designer for the brand and
film director Jean Paul Goude, thought out the concept of Hermès club; where they had
customized and planned every aspect of this event to provide its high-end customers with the
ultimate experience. The company had spent lavishly and created 10 different themed rooms
and spaces for their clients to get more comfortable, these rooms put on to display their ready
to wear collection and accessories. Around 1,000 guests were catered for at this event and it
enhanced this exclusive one-night event through WeChat which enabled more fans to take a
closer look at the club on its official account. This led the brand to retaining its current
customers and approaching other potential customers through social media and word of mouth
by its current clients. Hermès has a concept model for its stores and are exceptional at providing
their service and products, this allows the brand to outshine from its competitors in context to
brand value.
Hermès has integrated such high values and luxury, to the point where it attaches a feeling
of pride for the customers who own their products. The Hermès club which has been setup to
provide valued service to its high-end clients has created an unbreakable bond between the
two; it has also become a desire for many to achieve the same status and become a member of
the famed Hermès club. This has led to an incline in sales and has attracted the elite class by
exclusively catering to their needs. The quality of the goods provided are beyond the
expectations of consumers but also above when compared against competitors, by giving a
theme to its brand the product now is higher rated in-depth and emotions leading it to be on the
top of the world within fashion industry.
An experiential marketing strategy carried out by Samsung led them to approaching Launch
Factory for the purpose of launching their new X820 ultra range of mobile phones which are
the slimmest in the world. The challenge they needed to overcome was getting the mobile into
the hands of their target audience of 25 to 35-year old’s. The company staged a scenario where
an attractive woman would approach the target audience: males aged 25-35 and re-enact the
role of a woman who had lost her sister and needed to find her, she asked the men if they could
call her if they happen to see the missing sister, she then leaves a business card with them and
leaves promptly. The missing sister arrives shortly after and the men decide to call the number
given to them. They reach the voicemail of the lady and are offered to buy the ultra-stylish
Samsung X820! After interacting with the male target consumers over 2 consecutive nights,
the number of calls received was a staggering 56%. Justine Hume the marketing manager
stated: ‘This campaign was an innovative way to get prospective consumers to interact with
our product. We ultimately managed to get people talking into, but also about our phones to
others’ [7].
Another experiential event that was held by Samsung was a ‘part of its sponsorship of the
2012 Olympics’, in which they created several brand experiences at different destinations
around London, including places such as St Pancras International, Stratford International,
Westfield Stratford, N1 Centre Islington, Canary Wharf, One New Change, Broadgate and
Heathrow T1 departures lounge’ [16].

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5 Conclusion
This research is an attempt to highlight the shift towards “Experiential Marketing” from
“Traditional Marketing” in the context of the luxury sector. Global luxury brands such as
Hermès, Apple, Moët & Chandon, etc. have been used as examples to demonstrate the benefits
of Experiential marketing and emphasize on how changing the focus to customer experience
can drive sales and promote customer loyalty.
With the dynamic economy and the ever-growing intense market competition, brands needed
to take a step ahead from merely offering products, to finding innovative ways to emotionally
connect with their customers in order to survive against its competitors. Hermès uses relate
marketing i.e. creating a social link between the customer and the brand [9] to an extent to
connect their customers with the broader social and cultural context reflected in the brand.
Apple has managed to successfully integrate their products, retail and customer experience to
create a retail space with a sense of community to it. Although Apple has utilized Experiential
Marketing to quite an extent for its advantage. However even though it owes it’s given
reputation to experiential marketing, Apple can afford to bypass some of the traditional
experiential marketing methods. Recently as a part of their launch for the Apple Watch, Apple
did not stage an experiential show but instead rather chose to control their consumers and the
information they were given, this caused the audience’s curiosity [17]. Thus, Experiential
Marketing is a necessity for business and services for their long-term survival, better customer
engagement. Experiential Marketing is a highly evolved form of corporate storytelling.
Successful experiences are both art and science, created by combining a brand message,
elements of interactivity, a targeted audience and delivering it a live setting. Brands are making
increased efforts to create truly memorable and fascinating experience for their customers by
incorporating the brand with tech, culture and art. Market has changed from product centric to
customer experience centric. It can be safe to say based on the study of the brands in this
research that those who have transitioned to “Experience Marketing” are finding that any pain
of change has been outweighed by the benefit of more powerful marketing, more engaged
customers, and better return on marketing investments [18].

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