Ch. 12-Services and Nonprofit Organization Marketing

The core service Montblanc offers its clients is the prestige associated with the brand. The brand's logo is pictured on all merchandise, providing the consumer with a recognizable status symbol. Every piece of merchandise Montblanc sells comes with a two year warranty. One of the supplementary services available at Montblanc is their repair services for writing instruments and time pieces, with the assurance that it will be seen by a master craftsmen. Another supplementary service offered is personalization of leather goods and writing instruments. Clients are seen by the same sales specialist every time they do business with the boutique in order to create a relationship between the sales specialist and client to ensure reliability  and prompt responsiveness of the service.

As all employers in the U.S are required to provide their full time employees with health insurance, Montblanc applies internal marketing in this respect.

Ch. 11- Developing and Managing Products

product development
Montblanc started off as the Simple Filler Co. in 1906, by 1914 the company renamed its self Montblanc and released an array of products that would remain timeless until today. Heritage is at the core of all of Montblanc's product, from writing instrument, time pieces and leathers the heritage of the company is engraved into it. 2016 is Montblanc's 110 year anniversary so for this year Montblanc has released new product that intertwines 110 years of product history. Rouge Et Noir collection just launched and is almost completely sold out in the USA, you can try calling boutiques around the country and you'll get the same answer 'out of stock', why? Well the piece is almost an exact replica of their rouge et noir collect from 1914, it also has a lot so similar features as the Agatha Christie which is one of Montblanc's most iconic pieces. Montblanc of course innovated the product a modern twist and more updated uses such as ballpoint and roller ball versions but still kept the heritage at the core of the piece. Their product development has created 9 pieces that has been in the making for 110 years by reinventing a classic piece. Along with this the company release a series of leather to go with the collection. The pieces are not limited in number yet limited in production. With these pieces Montblanc has shown the even thou it has shown a maturity level of success throughout the years in the luxury world, you don't have to give up your company's heritage in order to continue to grow as a company.

Ch. 8 - Segmenting and Targeting Markets

Montblanc has always marketed their product to the upper middle, and above classes making it a demographic segmentation based on class, and income. Their target market has evolved to also include the middle class (with pieces such as the cruise collection). Since 1906 Montblanc has understood the values, needs, and lifestyles of the wealthy and has provided their services throughout the years around their clients. They also understood the benefits of having a writing instrument that wouldn't leak and would last a lifetime, these values the company has would incorporate psycographic, and benefit segmentation. One of their most iconic advertisement Montblanc release was of a gentleman, who is seen as upper middle class (you can tell by his attire) placing a fountain pen into his vest's front pocket, which back then was unheard of because it would damage you attire, especially white attire. This of course set pleased the consumers of that time period, they no longer had to worry about damaging their clothing, along with the fact that the product was made with the best sourced materials, gold, precious resin, sterling sliver, ebonite, and platinum. The creative product changed that industry, and the way people looked at writing instruments. Montblanc attributes their continued success to their products being produced with the highest quality of craftsmanship, precision, innovation and creativity, as they evolved into a more premium pricing points. Montblanc grown into an iconic symbol of success, it is considered a prestige symbol of high status that only a few get the pleasure of signing with.

Ch. 15- Marketing Communications

Recently Montblanc has used a promotional mix selling. Using multiple forms of promotional selling strategies such as many different social media platforms and print work. Their products have been shown in almost every timepiece magazine, and they current update their Instagram, Facebook, and twitter accounts on a daily basis, as well as their YouTube biweekly. They also allowed a handful of celebrities show off their products at events such as Oscars, Emmy's, Grammy's, Red carpet movie premiers, and hopefully a few at the Met Gala this year (in 2015 celebrities such as Chris Hemsworth, Hugh Jackman were spotted wearing a Montblanc timepiece). This helps them reach out to many different generations. This allows Montblanc to receive publicity since these outlets have such a board following.

Ch. 10 - Product Concepts

Huge Jackman is the current Ambassador for Montblanc, he perfectly depicts the quality of Montblanc products, as well as paint a beautiful picture of the brands history. Montblanc is a  consumer product, it's a product that people purchase to satisfy an individual want, and personal needs. Montblanc has a following of millions of people around the entire world, there clients swear by Montblanc products. They have brand loyalty  for over 100 years, currently celebrating their 110th year with their newest launch the 'Rouge et Noir', it's Montblanc emblem is one of the most recognizes logos in the world. Their considered a brand equity, when you think about a writing instrument Montblanc is the number image that comes to mind, especially the Meisterstuck Collection.

Ch. 17 - Personal Selling and Sales Management

            Montblanc's sells items on a personal level using relationship selling. When you walk into a Montblanc boutique you are greeted and guided through every purchase decisions you make, this allows the sales person to learn about the client. Once you make a purchase you get a account and are categorized into a tier (you fall into a tier depending on how much you spend). This affects your follow up process. If your make multiple purchases in a year, it will show in your account on the POS (point of sales). This allows the sales person who is helping you to know your preferences. Afterwards your are contacted on a regular basis depending on what your preferences are. It is up to the sales person to make a note of who you are, and to follow up regularly.

One of the largest campaign Montblanc currently has is its Men's fragrance campaign. Montblanc uses celebrities in international campaigns, and a model in America. The main reason this is one of the companies most successful campaigns is because of how easily it is to place the product. It can be found in Macy's, Sephora, Saks Fifth Avenue, and unlike many of their other products fragrances don't require extensive product knowledge. In the boutique itself these fragrances aren't a highlight but can be found in the best seller sections of department, and private sellers.
                                                

Ch. 16 - Advertising, Public Relations and Sales Promotion

               As an overall company Montblanc doesn't do a lot of advertising. When they do, they advertise their products on more luxury outlets, such as Dolce Vita, Architectural Digest, Rob Report because the people who subscribe to these magazines(which range at $40-$100 per issue) are their target audiences. They also relay on institutional advertising methods, but what really sells the product, is the multiple generations of Montblanc enthusiast. These products are so well crafted that they can be passed down generation to generation. That is what the company advertises and sells. Montblanc's current CEO Jerome Lambert was quoted saying
                          "Montblanc is a lifetime companion, a company that can take you from day to night, allowing you to discover the pleasures of the brand on a daily basis."

                Montblanc's products unlike many of its competitors carry out the day with you, from putting your cuff links and tie bar on in the morning, to signing your name on the million dollar contract you just signed, to having the most talked about timepiece at the dinner table. Montblanc's products are design to spark conversation and through word of mouth within certain target audiences. For many of Montblanc's clients it becomes an emotional decision to purchase the products.

             Montblanc also uses product placement strategies. It is no question that Montblanc's emblem is world recognized, so when it pops up on your screen even for a second Montblanc will appear into your head, an example I have experienced of this was watching DareDevil season 1 episode thirteen, when is getting dressed and he opens his cuff links draw and there was a lag over his collection and in that 7 seconds I found myself counting as many Montblanc cuff links as I could find, about a third of the product was Montblanc. In real life situations Montblanc usually offers their products out on loan to celebrities for red carpet premiers, or events such as the Oscar's and Emmy's, where celebrities are constantly asked "Who/What are you wearing?"

Ch. 14 - Marketing Channels and Retailing

                Montblanc started selling their product in the United States through wholesale accounts such as; Staples, Costco, Office Max, Saxs Fifth Ave, Bloomingdale. They had individual wholesale agents that had quarterly quotas. Montblanc began to excel in the states, so the headquarters in Germany  decided to begin to pull Montblanc product from these wholesalers, and began to open boutique. This action allowed the company to focus more on the consumers, and have a direct line to their needs. Montblanc replaced their employees from wholesalers to retail employees, this caused the vision from bulk orders, to individual sales based on consumer needs.



                Montblanc products are known as achievement products, meaning that it is an items usually received, or purchased once a company or personal goal is met. Most corporate clients purchase the products at the end of quarter or fiscal year to reward their employees. Since Montblanc doesn't have as many wholesale accounts the price is as is, and non negotiable, which in turn keeps the product at an esteem position. The only exception to this has been Duty Free Montblanc retailers, but they are still required to keep an upscale shopping environment.

Ch. 6 - Consumer Decision Making

          Montblanc has always been more acknowledged by the higher social class, as well as in the business working individuals(accounting, wall street), Doctors, and Lawyers. People with higher incomes that have previously been introduced to the product tend to have on average three to five Montblanc, one of the main reasons they purchase a Montblanc is to compete with their co-workers, Montblanc shows levels of success and achievements.

         When clients are not familiar with the history of the products they tend to go through an extensive decision making process. One of the main factors to this is price, accompanied by style(make/model/type of pen).

         Overall one of the most important tools Montblanc uses in selling the product is making an emotion connection. since Montblanc products have a back story of success that follows it, the company uses that to their advantage. When you buy a Montblanc it's because you believe in your own success. When you give a Montblanc is because you believe in the person you're gifting it too; a prime example of this is the Past/Present/Future monologue I've heard from multiple sales professional. The three rings on every Montblanc represent

    1. Past- The hard work being put into achieving a goal.
    2. Present- The achievement of that goal.
    3. Future- The support you show the person you are gifting the item to buy giving them this product, you know they will continue to accomplish their goals and continue to succeed.

Ch. 5 - Developing a Global Vision

Montblanc has develop a Global following with their products. Most places around the world have come to respect what Montblanc represents. In many places including the United States of America the 149 Meisterstuck fountain pen has become a symbol of accomplishment. A tradition practiced in the U.S.A. that many do not know of is the gifting of a Meisterstuck 149 to the newly appointed president after their inauguration.


All over the world Montblanc image follows. In china it is the preferred writing utensil, because the majority of the people use ink pens, the classic 146 fountain pen is found all over the elites of china. The success of the products have even pushed them to open up a flagship store in Beijing, China where hosted a international gala event and flew in their best clientele including a few of Hollywood's elite guests such as actors Jessica Alba, Naomi Watts, Nicolas Cage, Amber Heard and award-winning actor Maggie Cheun to name a few. This brings world recognition to the brand and what they have accomplished over the past 100 years, and just proves that they are and will continue to be timeless.The Art of Writing will continue and Montblanc will also continue to unites fine European craftsmanship with time-honored designs, bringing pieces to life that emanate classic heritage and refined creation.

.

Ch. 4 - The Marketing Environment

Montblanc has always been a luxury for the middle class, and a basic supply for the top one percent. Their target market has always been aim at a more financially established person. Montblanc has a wide demographic, because it's a world wide operation. The biggest demographic in america would most likely be middle aged, Caucasian males that live in wealthy areas. In the US for international demographic would most likely be middle age Chinese men.

The more popular collection in Montblanc are their Limited editions. Montblanc releases three limited editions each year, a writer, a patron of the arts, and a special character. These are for clients with a component lifestyle that may have more interest in one collection than another. For example in 2015 Montblanc released a writer(Leo Tolsoy), a patron of the arts(Pavarotti), and a great character(Andy Warhol). If you go to the Metropolitan opera house on a regular basis you're more than likely to find 2015 patron of the arts(Pavarotti) more relatable which would hopefully inspire you to purchase a piece. Every year there are three new pieces to spark your personal interest.

Ch. 18- Social Media and Marketing

When it comes to Social Media, Montblanc doesn't have the strongest background, but they are portrayed as a token of success on many social forums by celebrities, and clients alike. A recent example is Demi Lovato's instsgram account with has 34,400,000 followers, which is a photo and video sharing application. Demi Lovato and Nick Jonas have formed a record label, signing the contracts Demi Lovato signed the contact with a Montblanc Writing instrument and was quoted while signing "Big Deal Pens for Big Deal Contracts" This image alone current has 480,000 Likes, and 5,463 Comments, a lot of which are of people asking about the product and where to get it. Besides this photo, there were a series of photos posted by the artist once again emphasizing the important of the signing, all of which accumulated to a total of 1,812,000 likes, and 12,818 comments.       

                               Montblanc also uses many well known faces in there advertising champagnes around the world. For example Johny Depp, Huge Jackman, Eva Green, and Nicolas Cage to name a few.        

   

Ch. 2 - Strategic Planning for Competitive Advantage

What lies at the core of Montblanc is the value of Craftsmanship of multiple generations of engineers. Montblanc is world renowned in for making a product that will last generations. In venturing onto other products beside writing instruments Montblanc has not lost its core values. With every timepiece Montblanc took a step further when they inherited Minerva, and their Switzerland facilities, third and fourth generation watchmakers.  Montblanc also understand that we live in a generation where technology is desired, but luxury is desired more because; What is      luxury if not when desire overcomes reason.

When it comes to master timepieces, Montblanc's current CEO Jerome Lambert is no stranger to exquisite world renowned luxury timepieces. Former CEO of Jaeger Lecoultre and is one of the reason Jaeger Lecoultre has risen to such esteem. Mr. Lambert has been quoted expressing his aspirations for Montblanc's timepieces in the years to come.

One of the first initiative that Mr. Lambert has implicated is in the Retail Price vs. Value. One of the prime examples of this is in Montblanc's  Heritage Perpetual Calendar Time Pieces. Montblanc's Retailed price $40,000 ,(a Patek Philippe starts at about $150,000) Essentially you pay less for you Montblanc, but it is valued for more then what you pay (Valued at about $50,000). One of the main reasons is because of Montblanc's hours testing felicities in Villeret, Switzerland where the time pieces are tested for an accumulated 500 hour, meaning they don't have to test it under Switzerland 'Kiosk' Facility, which in turn equals not overcharging the clients just to get a chronometrie seal from kiosk. It is because of this system that Montblanc can offer it's client a three tier pricing range; 1st 3,000-15,000 2nd 25,000-80,000 3rd 100,000-UP Most of Montblanc's time pieces fall under the 1st tier

.

One of the newest additions to the Montblanc timepiece collections is the Timewalker Urban Speed collection. This is one of Montblanc's most innovated pieces. It combines the classic allures of a timepiece and necessities of your phone on a small screen on the watches strap(ie: email, text, reminders)This was a innovated step on Montblanc part to keep up with today's necessities.

Chapter 1 - Overview of Marketing (Brief History and Mission Statement)

                                      

    Montblanc’s  true tale began with the creation of the Meisterstück ("Masterpiece") fountain pen in 1924, made with a 18K Gold nib, a precises resin body, and a 18K gold clip. (Please note that the company as a whole was founded in 1906  by the stationer Claus-Johannes Voss, the banker Alfred Nehemias and the engineer August Eberstein in the Schanzen district of Hamburg, Germany and was first introduced as The Simplo Filler Pen company). Perfectly handmade with the finest of European craftsmanship, the iconic writing instrument has secured cult status – and the affair with writing instruments did not stop there. It has grown to include a variety of magnificent collections, including the bejeweled Bohème and sleek, contemporary Starwalker, among venerated others.While Montblanc's precious writing instruments record the moments of your life, their equally exquisite timepieces aid you in keeping track of them. Like their writing instrument counterparts, their master timepieces are each meticulously crafted by hand to the finest of Swiss tradition. Montblanc also provide their clientele with splendidly crafted leather products, elegant jewelry, enthralling fragrances and contemporary eyewear.  

The essences of Montblanc's has been described by former CEO Lutz Bethge :

"What luxury is, is naturally a very personal perception. For me, luxury products are a promise. A promise that the product you buy from Montblanc is of highest esteem, based on its timeless, elegant design and the high quality, which is derived from the excellence of our craftsmen. It’s a promise that you will still love the product in 10, 20 or 30 years, like in many times where you received a Montblanc item as a gift, you still will appreciate and love the person who gave it to you to show how much this person respects, appreciate or loves you. It is our most important task to nurture this trust in our brand and our products. Sustainable value, highest quality, excellence in craftsmanship, and creativity make our products elegant and refined objects, which enrich the individual style of our customers. A Montblanc product is luxury because it’s a lifetime companion that is worthy to be handed down to the next generation."

Each piece weather it be a timepiece, a belt, a wallet,a pair of sunglasses, or a writing instrument has a story to tell, yours.