How can luxury companies mobilise infrastructure and competencies to actualise data analytics marketing affordances?

The field of data analytics provides firms with new tools that allow them to develop a valuable competitive advantage. By gathering an ensemble of resources, firms are able to develop data-enabled initiatives that distinguish them from their competitors. One interesting theory that is emerging in the field is the theory of data analytics marketing affordances, which are marketing possibilities enabled by the use of data analytics. With new luxury paradigms emerging such as the rise of online distribution, it is now more relevant than ever for luxury brands to ensure that the customer experience they provide is as enticing online and offline. Data analytics provide an interesting new opportunity for luxury brands to achieve this and marketing affordances such as data-driven market ambidexterity and the fostering of exclusivity are already well developed in the luxury industries. On the contrary, other affordances such as the measurability of marketing actions and real-time market responsiveness appear to be less developed in the industry. To be able to acquire data-enabled marketing affordances in the first place, luxury companies first need to assess whether they are equipped with the right set of resources to develop a company-wide data analytics capability. Based on previous research and a series of in-depth interviews with industry specialists, the most critical resources are identified in this thesis. These include data access, human skills, and organizational culture. It appears that the development of all three of these resources is currently limited in the luxury industry due to contextual factors unique to the luxury environment, such as the complexity of the luxury distribution and the abstract nature of luxury communication. This thesis also provides managerial recommendations to overcome the barriers preventing luxury companies from developing a data analytics capability. These recommendations include the development of owned distribution channels, the aggregation of databases, and the identification of relevant indicators tailored to a brand’s specific image. The conclusion of this work includes managerial implications, limitations, and the next steps research could undertake.