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Federico Bertulessi - Marketing Management



                          Class handout

        Co-constructing authenticity:
an integrated model from the l’Occitane case
                         29th May, 2009




     Marketing Management, Double Degree Bocconi - HEC Paris
Agenda




Authenticity: the new business imperative
Postmodern and Mediterranean Marketing, cradles of the debate of authenticity
Methodological triangulation across Paris and Provence
A tool to compose an authentic melody
So what? A step beyond
Authenticity: the new business imperative
           “People increasingly see the world in terms of real and fake and want to buy 
 something authentic from someone genuine not a fake from some phony” ‐ Gilmore and Pine, 2007 


                                    Shift to an Experience Economy


                                    Rejuvenation of Localisms 


                                    Nostalgic rooting of Retro‐marketing


When consumers want that is real, a proper management of the consumers’ perception of authenticity
     becomes the new primary source of competitive advantage ‐ the new business imperative.
Research questions

1.     Which are the dimensions that influence the 
        perception of an authentic product, service or 
        consumption experience?



2.     How can l’Occitane optimise the perception of 
        authenticity of its offerings?



3.     Is there a phenomenon of co‐construction of a
        authenticity between companies and consumers? 
Cradles of the debate on authenticity
Postmodern thought ‐ towards a symbolic‐communicative concept of 
                                            consumption
                                             existence of an objective truth
                                             blind trust in human progress 
    against three pillars of 
                                             through task specialisation
        modernity
                                             superior value of abstract and 
                                             universally valid systems


      Focus on a contextual and interpretative world view



      Cultural meanings are socially constructed (iconic vs. indexical authenticity)
Cradles of the debate on authenticity
Mediterranean marketing ‐ a mental space based on Mediterranean 
                          culture values

           “a meridian thought that [..] involves a theroetical as well 
 as practical approach, leading to create and promote a sense of community, 
                 belongingness and authenticity” ‐ Caru, 2005 

                      Openness to Alterity, moderated relativism
                      Joy and pleasure of being
                      Resistance to the notion of progress
Main traits
                      Slow‐down of life pace
                      Conflict acknowledgement
                      Authenticity and tradition
                      Sense of moderation
Authenticity vs. Hyper-reality ?

                                    Baudrillard

                          “Hyper‐reality as a simulacrum 
                              of reality for reality”


                                        Eco
                      “Hyper‐reality as an authentic replica”


                                       Cova

                     “Hyper‐reality as an ersatz of authenticity”
Gilmore&Pine - Beyond the reality/fiction dichotomy
               Main insights
                                                                            Natural auth.
                                                                            Original auth.
                     Authenticity as a multidimensional concept             Exceptional auth.
                                                                            Referential auth.
                                                                            Influential auth.

                                      On a philosophical base, any human business is ontologically fake 
                                        ‐ that is, inauthentic in its very nature ‐ but its products can be 
    The Authenticity Paradox 
                                       phenomenologically real ‐ that is, perceived as authentic by the 
                                                            individuals that buy them.
                                                 Authenticity as a subjectively defined concept


          the only judge apt to determinate the cultural meaning of authenticity of any offering is 
          the individual who perceives it ‐‐> focus on perceptions rather than reality/hyper‐reality
Consumer agency : towards co-construction
                 Toffler’s prosumer: first contribution on the active role of the consumer


                  linked to the agricultural society ‐ neither manifacturer nor consumer in proper terms, 
                                               and at the same time he is both


                  today, physical co‐construction of market offerings is more and more diffused, 
                                  valued by companies and desired by consumers


Consumer Agency : co‐construction brought to a symbolic level, proper of cultural meanings

                   consumers rielaborates their 
                                                                    they are not a simple processor of 
               consumption experiences thanks to 
                                                                   information and stimuli, but  active 
              their own cultures, adding cultural and 
                                                                         producers of meanings
               affective elements to what they buy
Why l’Occitane
An iterative Research Design
                                                    Desk and Libraries search: 
Papers                Books         Sites           Sources for a theoretical background

                                                    Data collection:
          In‐depth                                  Different methodologies in order 
                          Ethnography
         Interviews                                 to achieve a triangulation

                                                    Analysis and Interpretation:
                Analysis and                        Systematic approaches while looking
               Interpretation                       for an epiphany
                                                    The final step:
                 Final report                       Shredding and prioritizing to achieve
                                                    an ordinate synthesis




                                            Paris
              2 distinct contexts
                                            Alpes de Haute Provence
IDIs, Ethnography - Back to the things themselves
                                              Ethnography

 27 days on the Ile de St. Louis in Paris, breathing, eating and living l’Occitane




                                          In‐depth Interviews                                 Parisian context


 32 IDIs with l’Occitane managers and clients across France




                                                                                                                  Consumer Axis
                                                                             Corporate Axis
              41 hours of recorded interviews ‐ 493 transcript pages
              16 corporate contributions from Int.l and Operational 
              Marketing, HR, Sales and Training Teams

              15 consumer informants selected among 1291 potential profiles                    Provençal context
The interpretative model
a tool to compose an authentic melody
Strings of authenticity
  Natural
               link to nature, ecology, rusticity, simplicity, spontaneity
Authenticity


 Original        unicity, innovation, differentiating, rarity, first of its
Authenticity                              kind



               attention, are, research, craftsmanship, small size, hand
Exceptional     made, rarity, preciousness, human warmth, intimity,
Authenticity       personal touch , savoir faire, consumer respect



Referential    culture, territory, traditions, autoreferentiality, history,
Authenticity                         past, longevity



               sustainable development, respect of nature, refusal to
 Influential
                 animal testing, ecology, human respect, fair trade,
Authenticity                           charity
Chords - guidelines to harmonise strings
             ..simply touching strings isn’t enough : their sounds have 
                        to be integrated in different chords




 Sincerity / Informative          to say the truth without altering reality or presenting
        reliability                          offerings in a distorted manners



      Informative                 to give all the valuable information to the consumer,
      exhaustivity                                without hiding anything



                                  less is more - to aim to the essential, without being
        Pruning
                              redundant or sophisticated, nor too understated and humble
The Nostalgic 
                   Consumer



The Elitist                                         The Relational 
Consumer                                                Consumer
                 Listening experiences
               sketches of consumer profiles




               The Ethic         The Metropolitan
               Consumer                Consumer
Other pieces of the mosaic..
Luxury                                                                                                Nivea
seen as empty, superficial, excessing in                          not only recalling a shared is a source of an
elaboration, poor in naturality, but still luxury                authentic perception: you can also recall to
can be authentic: LVMH vs. Hermès                                                 a personal past experience.
                                                                            An outstanding blue multiuse jar




                                                                                        Mass market
 the Piper metaphor                                     no research, care, industrial products linked to 
 Stereotyped perception of Marketing vs.             commercial logics, but still mass can be authentic: 
 authenticity in the context!                                  Leader Price/Petit Marseillais vs. l’Oréal
..so what? Managerial Implications
                                                       Theoretical level

      A complete tool including all co‐construction actors, trying to define their essential roles and tools

      Intertwined relationships and links between strings
                                                                                                    Referential
 Originality as a mix of other strings traits       Natural                        Exceptional      Authenticity       Influential
                                                  Authenticity    Original         Authenticity                       Authenticity
 Referentiality as an interpretational key
                                                                 Authenticity
 for the other strings ‐‐> Lush vs. l’Occitane

                                                       Operational level


Natural authenticity      Original authenticity    Exceptional authenticity     Referential authenticity    Influential authenticity

                                                  recovery of ancient boxes 
 bio rationalisation,       stress your firsts                                   l’Occitane vs. l’Occitane 
                                                      (+ performance),                                     Braille recovery, explicit 
A.O.C. label and refill    (corporate/boutique                                    en Provence, Histoires 
                                                    moderating portoflio                                       Foudation results
  policies diffusion              levels)                                             vraies rework
                                                        evolution rate
Limits and future directions : a step beyond
 


         Context limits ‐ Partially homogeneous environments: common national culture, autoselected 
         informants!


       An intrinsically static picture vs. a cultural meaning in continuous evolution


         A rich, but nevertheless specific point of view 
        over authenticity 



              Reply the study on different contexts, 
              industries and entrepreneurial realities. 
              And along different periods of time!
Limits and future directions : a step beyond
   No distinction on authenticity potentials between reality and hyper‐reality

            perform a splitted in‐depth analysis



                                                            Structural lack of exhaustivity in 
                                                           consumers’ profiles

                                                                    integrate a quantitative approach !


                                                                  to find all profiles and weight them

                                                           to draw a perceptual map of authenticity

                                                                 to further study links among strings 
..thank you for your attention.

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Co Constructing Authenticity [Lunga]

  • 1. Federico Bertulessi - Marketing Management Class handout Co-constructing authenticity: an integrated model from the l’Occitane case 29th May, 2009 Marketing Management, Double Degree Bocconi - HEC Paris
  • 2. Agenda Authenticity: the new business imperative Postmodern and Mediterranean Marketing, cradles of the debate of authenticity Methodological triangulation across Paris and Provence A tool to compose an authentic melody So what? A step beyond
  • 3. Authenticity: the new business imperative “People increasingly see the world in terms of real and fake and want to buy  something authentic from someone genuine not a fake from some phony” ‐ Gilmore and Pine, 2007  Shift to an Experience Economy Rejuvenation of Localisms  Nostalgic rooting of Retro‐marketing When consumers want that is real, a proper management of the consumers’ perception of authenticity becomes the new primary source of competitive advantage ‐ the new business imperative.
  • 5. Cradles of the debate on authenticity Postmodern thought ‐ towards a symbolic‐communicative concept of                                              consumption existence of an objective truth blind trust in human progress  against three pillars of  through task specialisation modernity superior value of abstract and  universally valid systems    Focus on a contextual and interpretative world view    Cultural meanings are socially constructed (iconic vs. indexical authenticity)
  • 6. Cradles of the debate on authenticity Mediterranean marketing ‐ a mental space based on Mediterranean     culture values “a meridian thought that [..] involves a theroetical as well  as practical approach, leading to create and promote a sense of community,  belongingness and authenticity” ‐ Caru, 2005  Openness to Alterity, moderated relativism Joy and pleasure of being Resistance to the notion of progress Main traits Slow‐down of life pace Conflict acknowledgement Authenticity and tradition Sense of moderation
  • 7. Authenticity vs. Hyper-reality ? Baudrillard “Hyper‐reality as a simulacrum  of reality for reality” Eco “Hyper‐reality as an authentic replica” Cova “Hyper‐reality as an ersatz of authenticity”
  • 8. Gilmore&Pine - Beyond the reality/fiction dichotomy Main insights Natural auth. Original auth.   Authenticity as a multidimensional concept Exceptional auth. Referential auth. Influential auth. On a philosophical base, any human business is ontologically fake  ‐ that is, inauthentic in its very nature ‐ but its products can be    The Authenticity Paradox  phenomenologically real ‐ that is, perceived as authentic by the  individuals that buy them.   Authenticity as a subjectively defined concept the only judge apt to determinate the cultural meaning of authenticity of any offering is  the individual who perceives it ‐‐> focus on perceptions rather than reality/hyper‐reality
  • 9. Consumer agency : towards co-construction Toffler’s prosumer: first contribution on the active role of the consumer linked to the agricultural society ‐ neither manifacturer nor consumer in proper terms,  and at the same time he is both today, physical co‐construction of market offerings is more and more diffused,  valued by companies and desired by consumers Consumer Agency : co‐construction brought to a symbolic level, proper of cultural meanings consumers rielaborates their  they are not a simple processor of  consumption experiences thanks to  information and stimuli, but  active  their own cultures, adding cultural and  producers of meanings affective elements to what they buy
  • 11.
  • 12. An iterative Research Design Desk and Libraries search:  Papers Books Sites Sources for a theoretical background Data collection: In‐depth  Different methodologies in order  Ethnography Interviews to achieve a triangulation Analysis and Interpretation: Analysis and Systematic approaches while looking Interpretation for an epiphany The final step: Final report Shredding and prioritizing to achieve an ordinate synthesis Paris 2 distinct contexts Alpes de Haute Provence
  • 13. IDIs, Ethnography - Back to the things themselves Ethnography 27 days on the Ile de St. Louis in Paris, breathing, eating and living l’Occitane In‐depth Interviews Parisian context 32 IDIs with l’Occitane managers and clients across France Consumer Axis Corporate Axis 41 hours of recorded interviews ‐ 493 transcript pages 16 corporate contributions from Int.l and Operational  Marketing, HR, Sales and Training Teams 15 consumer informants selected among 1291 potential profiles Provençal context
  • 14. The interpretative model a tool to compose an authentic melody
  • 15. Strings of authenticity Natural link to nature, ecology, rusticity, simplicity, spontaneity Authenticity Original unicity, innovation, differentiating, rarity, first of its Authenticity kind attention, are, research, craftsmanship, small size, hand Exceptional made, rarity, preciousness, human warmth, intimity, Authenticity personal touch , savoir faire, consumer respect Referential culture, territory, traditions, autoreferentiality, history, Authenticity past, longevity sustainable development, respect of nature, refusal to Influential animal testing, ecology, human respect, fair trade, Authenticity charity
  • 16. Chords - guidelines to harmonise strings ..simply touching strings isn’t enough : their sounds have  to be integrated in different chords Sincerity / Informative to say the truth without altering reality or presenting reliability offerings in a distorted manners Informative to give all the valuable information to the consumer, exhaustivity without hiding anything less is more - to aim to the essential, without being Pruning redundant or sophisticated, nor too understated and humble
  • 17. The Nostalgic  Consumer The Elitist  The Relational  Consumer Consumer Listening experiences sketches of consumer profiles The Ethic  The Metropolitan Consumer Consumer
  • 18. Other pieces of the mosaic.. Luxury Nivea seen as empty, superficial, excessing in  not only recalling a shared is a source of an elaboration, poor in naturality, but still luxury  authentic perception: you can also recall to can be authentic: LVMH vs. Hermès a personal past experience.   An outstanding blue multiuse jar Mass market the Piper metaphor no research, care, industrial products linked to  Stereotyped perception of Marketing vs.  commercial logics, but still mass can be authentic:  authenticity in the context! Leader Price/Petit Marseillais vs. l’Oréal
  • 19. ..so what? Managerial Implications Theoretical level    A complete tool including all co‐construction actors, trying to define their essential roles and tools    Intertwined relationships and links between strings Referential Originality as a mix of other strings traits Natural Exceptional Authenticity Influential Authenticity Original Authenticity Authenticity Referentiality as an interpretational key Authenticity for the other strings ‐‐> Lush vs. l’Occitane Operational level Natural authenticity Original authenticity Exceptional authenticity Referential authenticity Influential authenticity recovery of ancient boxes  bio rationalisation,  stress your firsts  l’Occitane vs. l’Occitane  (+ performance),  Braille recovery, explicit  A.O.C. label and refill  (corporate/boutique  en Provence, Histoires  moderating portoflio  Foudation results policies diffusion levels) vraies rework evolution rate
  • 20. Limits and future directions : a step beyond      Context limits ‐ Partially homogeneous environments: common national culture, autoselected           informants!    An intrinsically static picture vs. a cultural meaning in continuous evolution    A rich, but nevertheless specific point of view          over authenticity  Reply the study on different contexts,  industries and entrepreneurial realities.  And along different periods of time!
  • 21. Limits and future directions : a step beyond    No distinction on authenticity potentials between reality and hyper‐reality perform a splitted in‐depth analysis    Structural lack of exhaustivity in          consumers’ profiles integrate a quantitative approach ! to find all profiles and weight them to draw a perceptual map of authenticity to further study links among strings 
  • 22. ..thank you for your attention.