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Premiumisation – it’s worth to know more about it

Magdalena Janaczek
 
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Higher prices represent better quality. Premiumization means building a brand by emphasizing uniqueness and exclusivity. Give it personality by highlighting your values. Premium brands are influential and offer users a different experience than competing products. They are of absolute quality and leave no room for complaints or defects. And when these appear, they are immediately removed. They are aimed at a narrow circle of recipients.

Premiumisation has created the bridge between the desirability of the luxury world

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In addition to functional value, premium brands also create symbolic value. They build capital on showing their uniqueness. Exclusivity is no longer easy to obtain, as every brand seeks uniqueness.
Additionally, premium His brand products may only be available in certain regions and inventory may be intentionally limited.
 
In the past, box office success was determined by brand strength, market position, and recognition.  There is now an emphasis on attending exclusive events, highlighting “luxury” packaging designs, and other activities that mark a product as “high-end.
” It’s important to remember here what luxury means to the modern consumer. It’s not just access to high-quality, niche products, but also a guarantee of customer experience.
 
A unique experience associated with a particular product or brand. Customers want to experience something of superior quality that is delivered effectively and conveniently.

 

Aspects worth considering in the premiumization process include:

 
1. Build desire – Through brand identification, description, and the space created around the brand, consumers want to be there or use your product or service. Feel happy and satisfied and enjoy interacting with the brand.
 
2. Create new value – It is important to give recipients a sense of special added value through use, rather than the nominal value of the brand.
 
3. Build new target groups – To be above the mainstream and at the forefront of luxury brands, new target groups need to be properly defined.
 
4. Awareness and loyalty – Customers like and value the new world of brands, so they want to stay there.
 
 
When premiumizing your brand, it’s worth starting with a quick analysis of your brand’s current market position.
A well-conducted preliminary analysis takes into account price, market share, and our and our competitors’ estimated marketing budgets, as shown in the following image.

Source of graphic: brandmag.com

Brand value research

Brand equity is an additional benefit to the customer that is unrelated to the functionality and make the product more competitive. 

Ian H. Gordon

Allocating brand equity is a complex process. It is worth starting with the general positioning of the brand and its general characteristics on the market (modern, traditional, reliable). It is worth comparing with competitors near and far. To do this, you can conduct focus groups or conduct analyzes based on Internet data. Both methods have advantages, disadvantages, and emotional implications. However, they provide a general overview of the brand’s health compared to its competitors. Knowing this data allows us to go a step further. Accurately describe and portray the differentiating characteristics of our brand and our competitors. Let’s look at prices and profit margins.

Now that you know your variables and budget, you can evaluate premiumization opportunities and determine how these activities impact your brand health.
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