Making the ‘Jump’ to Premium..
In today’s celebrity-endorsed and money-does-it all world, it’s no wonder many brands want to achieve a tight spot in premium heaven. Making the jump from being a regular brand to a premium or luxury brand is no easy job, and usually not a coincidental event.
Premium brands are usually described as those tough to get, high priced, innovative, creative, leading, brands that have been elevated from the ‘regular’ marketplace to compete in a top-notch market; surrounded by other premium brands (although not as many as in the regular one). And generally some of the main pillars used to achieve that luxury tag were: Pricing and Communication.
Although they continue to be essential tools to push a brand into a luxury category, the game has gotten just a bit more complex. Differentiation, consumer experience, customer service, luxury brand character or personality need to be taken seriously as well. I’ll discuss each one a bit further:
Pricing: We all know what pricing does. A pricing strategy (on a brand level) must serve a couple of objectives. 1) Promote sales and profits, and 2) Build on brand image. Cheaper isn’t always good, and it’s almost -never- good for a luxury brand.
Communication: Advertising, PR, Sponsorships, etc., must be targeted to the specific audience that will help create the premium brand, later on you can spread the message to a broader (mass) audience. It’s easier to first capture and engage a smaller group of -interested- individuals and then proceed to a larger scale.
Differentiation: Creativity and Innovation are two words thrown out in an almost vague sense lately. But they are really deeper in meaning and especially in importance when trying to go premium. Apple won over many PC-loyal fans when they offered a true differentiated product; and I’m not even going to mention the iPod.
Consumer Experience: The experience does it all, or almost all. A clear example is just down at any local American mall. Go ahead and visit Gap, and then visit Banana Republic (both owned by Gap, Inc.). The shopping experience says it all. Even though BP is a casual luxury store, the moments you spend shopping in their stores offer you a luxury, passionate experience. That adds premium value to a brand.
Customer Service: Simple. It requires almost no explanation. A brand that goes the extra mile for their customer at hand (as if she were their only customer), and treats her like a queen, easily gets a luxury bonus point.
Brand Character & Personality: A brands’ voice must be consistent and congruent with a luxury label. Their are brand who have struggled their way through luxury-land, but have failed to understand that luxury is not what their consumers want or need from them. A brand -must- always be in check with their consumer base and what its’ brand is voicing to the world.
I am sure there must be other considerations to have in mind when building a luxury based brand; but these are way up in the list of importance. Keep them around next time you try pushing your brand to have a luxury tag on it.
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POSTED IN: brand, consumer, premium brands
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