Chapter 7 - Business Marketing

In this chapter we are introduced to industrial marketing, also called business marketing. Business marketing is a way in which one company markets their products to other companies or organizations, for the purposes of non-personal use. However, Cartier is a prestigious worldwide renowned jewelry brand and the company itself is the manufacturer, distributor and retailer of its products. Moreover, Cartier has its own resource exporting company, called Cartier Resource Incorporated. Surprisingly, Cartier does have intense affiliations with other organizations.

Commonly known, behind the glitter of gold are ugly environmental and social costs. Mining industries cause ecological challenges in their search for raw materials. According to Eluxe magazine, Cartier was one of the founding members of the Responsible Jewelry Council. The council mandates that companies must be fully regulated and controlled when they mine for their gems and metals. The council also ensures that the communities involved in mining are paid fairly and are protected by the highest standards of safety and that environmental standards are met. Cartier not only provides their miners decent wages, but also offers education in finance and technology, a free health clinic, and builds roads where they are needed. Cartier has become more economically and environmentally sustainable than the other companies in their business field which is not easy to achieve by these days.

Cartier created the Cartier Women’s Initiative Awards in 2006 in order to encourage woman entrepreneurs. This is a joint partnership project initiated by Cartier, the Women’s Forum, McKinsey & Company (widely considered to be one of the most prestigious management consulting firms in the world), and INSEAD business school (widely considered to be one of the world’s best business schools). These organizations have joined together to create the Cartier Women’s Initiative Awards, which aim to support female entrepreneurs through mentoring, funding, networking opportunities, and media visibility. Each of these organizations provide experienced business coaches to guide the six award winners in preparation for the presentation, and then to assist the laureates with the essentials of running a business and keeping it thriving. Under the cooperation of Cartier and these organizations, this award is successfully conducted every year.

Through all the studies of marketing in this class, I have recognized several elements which are crucial to Cartier’s continuing success in its thriving business. These include endless innovation, precise investments and the rapid stream of their products. Additionally, unlike most huge companies, Cartier has had the sustainability on their business field which has truly impressed me by keeping the business thriving, and maintaining ethical practices in the environment and our society. 

Chapter 8 – Segmenting and Targeting Markets

In business field, market segmenting is defined to help marketers be more precisely to approach consumer needs and wants in the company’s existing products and future product. Furthermore, there are a few elements like geographic, demographic, psychographic, benefit and usage-rate that are essential in successful segmentation. Cartier’s business has been prominently thrived in the past century either in product lines or reputation all over the world. The company is looking to keep its luster in a market which is likely to become tougher for global luxury company.

An enormous international company like Cartier surely establishes its marketing mixes. The worst thing could possibly affect a gigantic company’s growth has to be the stagnant economy. Despite this anxiety, Cartier’s President and Chief Executive Bernard Fornas has addressed in its most recent financial announcement that Cartier can build on its sales because their unequalled creativity in all segments of watch-making, the industrial reactivity, flexibility and speed are all prevailed than the others and to pick up market share. In fact, the Cartier sales in Richmond’s jewelry house has rose to $ 4.67 billion in the first nine months of its 2012 financial year, up 30% from a year earlier. In 2012, the general sales in Cartier had increased 24% in its fiscal year. That’s impressive poll from the luxury daily news website.

The geographic segment is tailored for their main engines which include China, India, France, and America, and so on. Those regions are either have the highest population density or greatest purchasing power in all time. Especially in China, by far is the most rapid aggressively growth economy region. There is a saying in the Chinese “Who knows luxury jewelry, who knows Cartier”. In addition, Cartier is the number one jewelry brand in China. There are already forty two boutiques in twenty two major cities in China and the CEO has declared they will continue to open up to sixty five boutiques in thirty cities throughout the country by 2016. Cartier always spots the best location and it’s the most important step to open a new shop in anytime.

“There is no boundary in Cartier’s beauty innovation”, the slogan of Cartier. In demographic study of Cartier, regardless of where you are from, as long as you love the piece, it’s Cartier’s culture. Being universal is the world of Cartier. There are thirty designers from America, China, Japan, France, India and Italy from young to senior men and woman. They have the substantial varieties of power to enclose the consumers’ needs and wants and that’s the unique beauty of Cartier.

Now to sum up with analyzing Cartier’s psychographic, benefit and usage-rate segmentations in which the company has successfully implemented by all time. Every affluent women desire diamonds and men yearn for perfect timepieces. Cartier has captured the motives and lifestyles of their consumers and they have nailed down the business to this group of wealthy people with psychographic segmentation. Cognitively, Jewelry is representing a person’s status. “Jewelry takes people’s minds off your wrinkles”, people are seeking this solid benefits through their precious pieces and this is from the King of jewelry and jewelry for the King. In Affluent society, expensive jewelry is not only for wearing but also for collecting. Cartier has properly launched new products through holidays and special events or even red carpet seasons. The company has kept in close relationship with their loyalists and special collections have to be reserved for long term used customers. Indeed, Cartier is positioning the King of jewelry and its luxuriant brand all over the world.