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Customer Burnout Table

Customer Burnout Table - Premium Brand Attributes...

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Unformatted text preview: Premium Brand Attributes Distinction: Something that is differentiating from mass brands and not just a fabricated image. For example, in the gifts category, Red Envelope uses its "product story” and red gift box and clearly differentiating elements. So much so that you must pay an additional $4.95 in order to GET that red gift box with your order. Communication: Specifically, pull—marketing or word—of—mouth, and not advertising. Premium brand customers believe other premium brand customers, and brandsthat capitalize on the stories that enter the cultural ecosystem tend to do better at creating a luxury brand faster. SKY Vodka capitalized on the rumor that theirvodka caused less hangovers than other competitive brands. Trangibilityr of the Retail Experience: Premium brands require a premium experience at the point of sale. Steve Jobs knew that he wasn’t going to be able to get most department or electronic stores to truly represent the brand he was creating, and therefore decided to launch individual, company—owned Apple Stores that had a very distinct shopping experience that supported the brand. Pricing: Of course, pricing for Premium brands must reflect the intended premium status and should therefore be higher than mass products in the same category, regardless of uniformityin manufacturing costs. Pricing also plays into the psychology behind premium brands. Customers expect to pay more, and thus a premium brand should reflect a realistic price differential from non—premium competitors without overpricing. Loyalty: People who consume premium brands tend to have extraordinarily high levels of loyaltyto the brand and other premium brands in it's category. BMW buyers are a very loyal bunch of consumers, in spite of the expense and quirks that accompany their purchase. InnovationfTradition: This is an interesting area where premium brands don't always lead their market. Bentley is a premium brand, but not because they’re always on the cutting edge. Premium brands tend to polarize at the edges ofthe spectrum oftradition— to—innovation. ...
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