In its August 2014 edition, the magazine Emprendedores includes a Marketing Special entitled Create your Premium Line which has involved the collaboration of Alex Alegret, an EAE Business School teacher and Programme Director with a Doctorate in Marketing and Commercial Retail.
“Because we want to charge more, because we aim to embrace a new channel, because we strive to attract a new type of customer, because we are confident that we can offer higher quality..., the reasons that may drive us to create a premium line or high-end range are as diverse as the characteristics of our businesses. The important thing is knowing how to do so in such a way that it is a safe bet that, above all, is sure to be profitable.” This is how the Emprendedores article on high-end products begins, a market segment that is defined as having a price between 30% and 50% higher than the basic category, according to the article.
Throughout the magazine, advice and initial considerations are presented that should be taken into account before launching a product with these characteristics. In Alegret’s opinion, simply redesigning the format or packaging does not justify the price increase, but rather “this must involve a meaningful change.” However, according to the EAE teacher, the most complicated part of launching such a product is knowing how to communicate the differences from the basic line to the customer and ensuring that the customer values these implications.
The Emprendedores Marketing Special also offers 10 techniques for creating a high-end range, as well as several examples of brands and companies that have done so satisfactorily in practice. The magazine recommends the following tips for selling a premium product:
Highlight natural or ecological credentials
Quality with values
Selling through new channels
Identifying new categories of consumer
Breaking it down to win them over
All of this, of course, is underpinned by always taking our customer’s needs into account, in view of the fact that, as the EAE teacher puts it, “there must be a real need in order for the line to work.” As such, it is crucial to analyse people’s need for the product beforehand.
We encourage you to read the full article "Create your Premium Line":http://www.slideshare.net/eaecomunicacion/una-simple-renovacion-de-packa... (spanish language).
Alex Alegret is a teacher and Programme Director of the "Master in Marketing and Commercial Management":http://en.eae.es/full-time/marketing-y-comercial/master-en-direccion-de-... and the "Master in Marketing & Sales":http://en.eae.es/full-time/marketing-y-comercial/master-in-marketing-sales at EAE Business School.