Market to a Millionaire
Frugal and low-key in their lifestyles, America's newly rich are tough
It's easy to spot a millionaire just look for the Henry Dunay cuff
bracelet and Judith Lieber handbag, right?
Well, not exactly. According to an article in Marketing Toolsmagazine,
most millionaires are harder to draw a bead on. The problem is they look,
and spend, like the rest of us.
The ranks of the affluent and super-affluent are growing at a brisk pace,
thanks in large part to the long bull market on Wall Street. "The number
of U.S. millionaires is increasing at roughly 20 times the rate of the population
as a whole," says MT.These new millionaires tend to be frugal
and value-conscious more interested in saving than splurging. (This
is, after all, how they got rich in the first place.) The result: the typical
millionaire doesn't pay more than $399 for a suit or $140 for a pair of
shoes, the article says.
So what are luxury-goods marketers to do? How can they reach the elusive
audience of wealthy but wary consumers? MThas a few bits of advice.
Make sure you send them the right advertising messages. While the free-spending
rich tend merely to respond to advertisers' promises of status, the more
tight-fisted millionaires are a different story. They're more likely to
bite when the message is about value retention, quality and practicality.
A prime example of this approach is Patek Philippe's recent print campaign
portraying its watches as future heirlooms (see photo at left).
Explore some of the less obvious (and less splashy) media you can use
to reach your audience. Ivy League alumni magazines, for example, have a
high percentage of affluent readers, the article points out. The alumni
generally have good feelings about their schools and are in a receptive
mood when they read the magazine. Other vehicles worth considering are trade
journals that go to high-income professionals. They're cost-efficient and
are read by the practical, business-minded audience you want to reach.
Note that consumers who are reasonably well-off or wealthy are more likely
to respond to direct mail than the rest of the population. One study showed
college-educated consumers with an income over $50,000 who own equipment
such as a compact disc player or VCR are 50% more likely to respond to direct
mail than the average household. But note they also receive more mail
six pieces per day as opposed to four for less-well-off consumers
and that 57% of them know how to get their names removed from direct mail
Patek Philippe's campaign appeals to a sense of quality and practicality,
factors that help to impart an heirloom quality to a product.
Copyright © 1998 by Bond Communications.