There is no one-size fits all approach, says Joanna Parman, UK Commercial Lead for Consumer Panel, Nielsen, writing in the June issue of Admap (topic: How to grow via premiumisation).
But for brands that get it right, she adds, there’s a big opportunity not only to drive sales growth in increasingly competitive markets, but also to differentiate their product portfolio.
How to get it right involves understanding those common traits so that brands can stop guessing and start innovating, she argues.
A Nielsen study found the most commonly cited reasons for a product being perceived as premium are exceptional quality (56% of respondents) or superior function or performance (51%), a rational link between paying more for something that is of a higher quality or value.
“These views are consistent globally, indicating that there is an inherent human response to these cues,” she notes. (For more, read the full Admap article: The art of premiumisation: stop guessing, start innovating.)
Emotional responses are harder to pin down: anything from packaging to association and memories can play a big role in shaping views of ‘premium’ and ultimately driving purchase, and cultural factors are also at play.
Parman splits the emotional elements into two camps: the feel-good factor and driving status.
Globally, Nielsen’s research shows more than half (52%) of consumers claim buying premium products makes them feel good; and the same proportion say buying premium products makes them feel more confident.
This is closely followed by the status statement, where 47% of consumers say that buying premium shows others that they have good taste.
These are building blocks that brands can use to develop premium products, alongside current consumer trends they may be able to tap into and an appreciation of consumers’ modes of shopping – whether they’re on autopilot or making considered decisions.
This issue of Admap on premiumisation features articles by thought leaders from across the globe. WARC subscribers can access a deck which summarises the expert advice from contributors and key considerations on the topic.
Sourced from Admap