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Managing Premium Products

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• Premium products are not purchased only for its Core Attribute. On contrary, it should give the sense of exclusivity to the buyer.

• The consumer is ready to pay higher prices in return of extra value they receive.

• Along with the tangible product, Benefits like, Status, Value and Image matters a lot.

Amity Business SchoolSteps

• Target Market Identification

This is the act of identifying and profiling distinct groups of buyers who might require premium products.

Mostly have complex set of needs and are willing to pay premium to the marketer with best offering which satisfies there need.

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• Differentiation

At this stage the marketer differentiates its offering by designing a set of meaningful differences to justify the premium charged by him.

Differentiation could be based on Product and Services Qualities or on Perceived Benefits

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• Positioning

This step involves designing the marketer’s offer and image so that it occupies a distinct and valued place in the targeted customers’ minds.

Amity Business SchoolDifferentiation Strategies Adapted by some Premium Brands

Parameter Examples

Product Features IFB Washing Machine, Sony Hi Definition TV

Performance Quality Dove Soap

Exclusivity & Style Tanishq, Van Heusen

Product Design VIP Strolly, Apple Mc. Book

Product Range & Variety Revlon Cosmetics

Service Quality Dell, L’Oreal Beauty salon

Packaging Pringle, Nestle` Slim (Milk)

Amity Business SchoolPremium Brands

• Louis Vuitton (LV)

• Christian Dior

• Fendi

• Gieorgio Armani

• Dolce & Gabbana

• Cartier

Etc………..

Amity Business SchoolValue-Strategy Key Links

Type of Value Key Strategic Features for Sustained Advantage

Functional Continuous Upgrading Required

Social Long Term Relationships, Uncertain in the beginning, Visible reinforcement required

Emotional Periodic Reinforcement required because of the need for intimate relationship

Epistemic Variety required to take advantage of uncertainty

Conditional Niche opportunities to take advantage of happenstance, cross-promotions, possible quick response desired.

Amity Business SchoolBrand Name as Positioning

• The name is assigned to a premium brand should co relate to the image, class, quality, exclusivity and act as a status symbol.

Eg. Raymonds - Park Avenue series.

Giorgio Armani’s – L’Oreal

Seagram’s - Chivas Regal

Amity Business SchoolAspirations of Consumer as a Positioning Strategy

• Certain captions are used to position premium brands.

Eg. Louis Phillipe – The Upper crest

Raymonds Suitings – The Complete Man

Weekender – Wear your attitude

Amity Business SchoolBrand Personality as a Positioning Strategy

• Brands personality is a mixture of many things, Its Name , Packaging, Price, Style of Advertising and the Nature of Product itself.

Eg. Ried & Taylor – Amitabh Bachan

Raymonds – Mansoor ali Khan Pataudi

Amity Business SchoolSelective Consumer Reach as a Positioning Strategy

• The Marketer makes the target consumer aware of the product available. Does not target the complete society.

Eg in cases of liquor its make itself visible at the Pubs, Bars, Discotheques.

Mercedes sends direct mailers to the select groups.

Amity Business SchoolExclusive Distribution Outlets as a Positioning Strategy

• Marketer Makes its Product available at selective Hi profile Places like Boutiques, Selective showrooms etc.

Eg. Rolex Watches

Tanishq

Cosmetics by Fashion Houses

Amity Business SchoolEvent Sponsorship as Positioning Strategy

• Sponsorships for the Up-markets

Eg. Gladrags Man hunt

Lakme Fashion Week

Femina Miss India

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