Tiger Woods may have been the golfer to watch during last week’s Masters Tournament, but I was actually following newsmakers Ian Poulter and Graeme McDowell. They both made headlines recently for getting into “culture clashes” with the somewhat stodgy executives at Augusta National Club, which hosts the annual golf tournament. Despite the private, all male club’s efforts to reach a more youthful golf audience – creating a video game and even a new Masters app for the iPhone – it was not ready to accept the culture of its own youthful golfing generation.

Back in March when Poulter and McDowell tweeted pictures and video from the grounds during prep, they generated a response from Augusta National spokesperson Steve Ethun, asking players to refrain from using their cell phones on the property. With almost 90 percent of new media users interacting with companies or brands via new media sites and tools, there is no denying the power of social media – even during your golf game. And this begs the question, how do luxury brands, who have largely defined themselves through their “exclusivity,” attract and engage with new, social media-savvy consumers – who are increasingly demanding transparency and two-way conversation – while staying true to their brands’ values and loyal consumers?

Luxury fashion brand Gucci is one successful example. With more than 4 million Facebook fans and 62,000 Twitter followers, the brand uses social media to debut collections and engage with consumers around fashion trends all in the hopes of sparking a purchase. According to a 2010 study from market research firm Chadwick Martin Bailey and iModerate Research Technologies, Gucci is on the right track. Fifty-one percent of survey respondents said they were more likely to buy from a brand after following them on Facebook and an even greater 67 percent said they were more likely to buy after following on Twitter.

On the other hand, the consequences can be harsh for brands who fail to heed the tide of connected consumers. Well-known and respected luxury food brand Harry & David recently filed for Chapter 11 Bankruptcy and is only now attempting to play catch up with the social media crowd. Targeting eco-conscious supporters of local agriculture, the brand will soon launch a camera capturing the life of its staple pears as they ripen. But, only time will tell if Harry & David can work its way out of financial ruin by appealing to consumers via social media.

As for Augusta National and the Masters Tournament, with sub-par TV ratings this year, we’ll have to wait and see how the brands decide to engage with the young, trendy, social media-savvy consumer next spring. Maybe then they can strike the right balance between exclusivity and authentic consumer engagement.

--Kimberly Litchfield, Account Supervisor