Let your love SHINE with these collections. Check out what this company does to reach more consumers across the globe! [Monday: Marketing Marvels]
100 countries.
6 continents.
39 years of delivering “unrivalled jewelry design and craft.”
This brand has a “universe” of high-quality, hand-finished, modern, and genuine jewelry products at affordable prices.
Any ideas on what company we’re talking about?
It’s none other than…
Pandora!
Pandora A/S is a Danish jewelry manufacturer and retailer that started as a family-run shop in Copenhagen in 1982.
It is known for its customizable charm bracelets, designer rings, necklaces, and has 7,800 points of sales across the globe.
Curious about how Pandora maintains its status as one of the world’s most loved jewelry brands?
Let’s look at one of its marketing campaigns in 2018.
During the Valentine’s Day celebrations in Malaysia, Pandora wanted to strengthen its position as the “most sought-after affordable women’s jewelry” in the country.
To do that, it launched its new Pandora Shine Collection in Spring 2018. A perfect appeal to couples celebrating Valentine’s Day!
The Shine Collection features accessories that contain 18 karats of gold-plated sterling silver.
The campaign’s mission?
To inspire consumers to express their individuality through stories they want to tell!
Pandora partnered with Brandavision, an agency that specializes in digital-out-of-home (DOOH) media in Malaysia.
The campaign encouraged the public to show love to their “special someone” by posting LIVE messages on a huge LED screen.
The details of the activation?
- – Date: February 13 and 14, 2018
- – Time: From 6pm to 8pm MST
- – Location: Pavilion mall in Kuala Lumpur
The campaign was divided into 2 parts: The first part was a teaser to raise awareness about Pandora’s Valentine’s Day activity, and the second part was when the messages were shown on screen.
The Elite LED screen located at the main entrance to the Pavilion mall was chosen to project the messages submitted by the public.
To participate in the campaign, consumers had to scan the QR code flashed on the digital screen. They would then be directed to Pandora’s Valentine’s Message Facebook page, where they would be asked to fill out their names and submit their messages.
Once they completed the steps, Pandora’s digital team would add their message onto the LED screen, also showing their names and Facebook profile photos.
The campaign caught the attention of passers-by. Many stopped to watch what was going on as they noticed Valentine’s messages being flashed on the screen for 2 consecutive nights.
Of course, the Valentine’s Day event wouldn’t be complete without a gift for the target audience’s loved ones!
To make sure that participants take something home from its concept store in Pavilion mall, Pandora sent a gift code that entitled each of them to redeem a jewelry gift.
After the 2-day campaign, Pandora’s number of patrons increased by 10%, including new customers who ended up purchasing jewelry when they redeemed their gift.
Instead of traditional advertising, the brand’s campaign not only showcased its latest collection but also joined the people in celebrating what matters to them through different social media, outdoor, and digital platforms.
What are Pandora’s other marketing strategies?
- Rolling out a full brand refresh globally.
In 2019, Pandora launched a new branding with a new purpose:
“We give a voice to people’s loves.”
The rebranding aimed to create a consistent look across all the company’s consumer touch points, from stores and social media channels to packaging and printed materials.
The focal point of this new visual identity is the logo, with a new typeface and color scheme that symbolize “pretty and powerful.”
According to Pandora’s Chief Creative Officer, Stephen Fairchild, this identity will add new energy and relevance to the brand’s appeal across cultures and age groups.
By the end of 2019, the new logo was rolled out to over 1,000 stores worldwide.
- Reaching new consumers through strategic alliances.
Strategic alliances enable Pandora to reach more consumers around the world, create new opportunities for revenue growth, and drive brand awareness in new and existing markets.
An example of this alliance?
The long-term partnership between Pandora and The Walt Disney Company!
In 2019, consumers welcomed the successful launches of Pandora’s “The Lion King” and “Frozen II” collections.
Then, in November of the same year, the company also introduced a new partnership with Warner Bros. Consumer Products.
A result of this partnership?
The launch of Pandora’s Harry Potter-themed jewelry collection, which included charms, pendants, and bracelets!
The collection became popular in the UK, US, Australia, and Italy, delivering 4.6% of the company’s total sales in November and December 2019.
For Pandora, these collaborations offer new ways for them to create new meanings and memories with consumers, as well as new wearing and styling opportunities.
- Increasing impact with social media influencers.
Pandora also started new influencer and celebrity partnerships to support its marketing activities.
One of them is British actress Millie Bobby Brown, who rose to prominence for her role in the Netflix series, “Stranger Things.”
With Millie’s more than 31 million followers on Instagram, partnering with her for the “Pandora Me” collection enabled the company to reach audiences beyond traditional media!
Aside from that, the company also formed its first global influencer group, the Pandora Muses.
The Muses consists of six creative women who help the company bring its message to life and create engaging content about inclusivity, social responsibility, and female empowerment.
Since Pandora values self-expression, playfulness, and celebrating the diverse nature of women, the Muses have the responsibility of being the “voice to the things we as individuals love.”
The group consists of famous personalities such as Larsen Thompson, Tasya van Ree, Margaret Zhang, Halima Aden, Georgia May Jagger, and Nathalie Emmanuel.
With the help of these marketing strategies and campaigns, Pandora sold around 96 million pieces of jewelry in 2019 and strengthened its position as one of the largest jewelry brands in the world.
In the past five years, Pandora A/S has recorded revenues of:
- DKK 16.7 billion in 2015
- DKK 20.3 billion in 2016
- DKK 22.8 billion in 2017
- DKK 22.8 billion in 2018
- DKK 21.9 billion in 2019
According to Vita Clausen, Pandora’s Global PR Director, the company will continue to look for relevant partnerships and marketing efforts to further drive engagement with its target market.
Pandora A/S’ Earning Power: Valens Research vs. As-reported numbers
Pandora A/S (PNDORA: DNK) makes for a great case study that we come back to regularly. One great reason?
The company has proven itself to be a better earning power generator than investors might think.
So, how well has Pandora A/S been growing its business in the past years?
The research doesn’t lie—nor do the results. Earning power (the blue bars) continues to show results higher on average than what traditional databases show.
The blue bars in the chart above represent Pandora A/S’ earning power (Uniform Return On Assets). Pandora A/S has seen fairly consistent and robust profitability. Its Uniform ROA ranged from 58% to 182% in the past twelve years, or an average of 120%. Uniform ROA is at 58% in 2019.
The global ROA is just 6%.
The orange bars are the company’s as-reported financial information. If you relied on these numbers, you will see a company with understated profitability. As-reported ROA (return on assets, a measure of earning power) only ranged from 11% to 33% in the past eleven years. Its ROA in 2019 was only at 18%, far lower than its Uniform ROA in 2019.
That’s what you’ll see in Yahoo Finance, Google Finance, and most other databases.
The company’s stock price also performed better than the rest of the stock market over the decade, which we can see in the blue line in the chart below. Its returns have been well above the market.
The numbers show that Pandora A/S has been doing well and making a profit.
The company is also investing in omnichannel capabilities to reach consumers with a seamless shopping experience.
As technology changes how people shop, Pandora knows that the role of its physical stores changes too.
While it believes that the brick-and-mortar store has always been the embodiment of brand experience, the brand remains open to new ways to connect with its target market.
As these changes in the business landscape go by, Pandora assures to stay the same in one aspect: Bringing together traditional craftsmanship and state-of-the-art innovation in all its jewelries.
About The Dynamic Marketing Communiqué’s
“Monday Marketing Marvels”
Too often, industry experts and the marketing press sing the praises of some company’s marketing strategy.
…Only for the audience to later find out that their product was a flop, or worse, that the company went bankrupt.
The true ROI in marketing can’t be separated from the business as a whole.
What good is a marketing case study if one can’t prove that the company’s efforts actually paid off?
At the end of the day, either the entire business is successful or it isn’t. And the role of marketing is always paramount to that success.
Every Monday, we publish a case study that highlights the world’s greatest marketing strategies.
However, the difference between our case studies and the numerous ones out there, is that we will always make certain that the firm really did generate and demonstrate earning power worthy of study in the first place (compliments of Valens Research’s finance group).
By looking at the true earnings of a company, we can now rely on those successful businesses to get tips and insights on what they did right.
We’ll also study the greatest marketing fails and analyze what they did wrong, or what they needed to improve on. We all make our mistakes, but better we learn from others’ mistakes—and earlier, rather than later.
Hope you found this week’s marketing marvel interesting and helpful.
Stay tuned for next week’s Monday Marketing Marvels!
Cheers,
Kyle Yu
Head of Marketing
Valens Dynamic Marketing Capabilities
Powered by Valens Research
www.valens-research.com
