Premiumisation is especially well-suited to mature categories with little room to grow through penetration and middle-market brands. There are many different ways to execute premiumisation, though building a strong brand is an important underpinning. Whichever route is chosen, offerings need to pay attention to the details of branding, product, packaging and messaging to satisfy premium consumer expectations, and focus on driving mental and physical availability at the intended price point.
Definition
Premiumisation is a growth strategy where some category volume is converted to a higher value by persuading consumers to pay more for it.