China's Reverse Price Wars - Max Magni and Yuval Atsmon - The Conversation by Max Magni and Yuval Atsmon | 12:05 PM March 17, 2010 Most marketers realize that in China, people are more price-conscious than their counterparts in poorer developing countries. The Chinese recall product prices with amazing accuracy; constantly comparison shop; and try to buy at the lowest price even if they have to go out of the way to do so, our research shows. Cutthroat competition keeps prices low in China even though the sales tax is often higher than it is in the United States. That doesn’t mean reducing price is the only way to crack open the Chinese market. 1. 2. 3. Because of these factors, China often witnesses reverse price wars, during which rivals compete to increase prices so they can attract shoppers who will only buy the more expensive brands. Some multinationals have succeeded in charging higher prices in China by addressing one of the factors we mentioned earlier. What levers would you pull to get consumers in China to open their wallets?
Personal Branding | Personal Branding Expert JW Dicks: Premiumize Your Product or Service While the news talks about falling consumer confidence, there is one area of the economy that is going strong, and that is the affluent end of the market. People in this class have money and they are willing to spend it to get the “best” and to show that they have the money to afford the best. To take advantage of this growing trend and growing number of people in the affluent class, you should consider adding or developing a premium product or service to your business. Now, before you say, “This doesn’t apply to me,” let me hasten to add that premiumization can be found in all businesses. Here are some examples of premiumized products and services: · Water: No, we are not talking about regular Evian or Perrier; we are talking mega high-end water. o Evian’s limited-release Palace Bottle, which is only available in high-end bars and restaurants sells for $15 to $20 a bottle and has a stainless steel coaster and a cool shape. o Carlsberg 900 was introduced this summer in Sweden.
How to make a premium brand accessible I was out for a few drinks with some colleagues on the weekend. One of these gentlemen is a martini guy. It is his drink. And when he orders it, as he did that night, he always asks for Grey Goose vodka. He insists he can taste the difference. I always have the same three thoughts when we reach the Grey Goose juncture: 1. 2. 3. Grey Goose vodka is a great example of an emerging marketing trend I call accessible premiumization. Starbucks may not have been the first accessible premium brand, but it was among the early entrants, with a unique language and higher price points. In order to better define accessible premiumization, we need a reference point. The ingredients of ultra premium Ultra premium products tend to be pure luxuries. When you dig into what makes a product ultra premium, some patterns emerge: Product: The first pattern is that there is zero question about either product quality or design authenticity. The fundamentals of accessible premiumization
Exploring Premium Brand Extension Regular readers of Branding Strategy Insider know we welcome and answer marketing questions of all types. Today, Eugene, a marketer in London, England writes… "Dear Derrick and Brad, I really enjoy Branding Strategy Insider, thanks for the resource. My question is how to measure the Halo effect a premium brand extension can have on the rest of the range, and the Halo effect mechanics." Eugene, thanks for the compliment and your question. One cannot add a significantly more premium or inexpensive product within a brand’s range without encountering credibility problems. • One should test the responses of current customers to adding a more premium product to a brand’s range of products before it is actually done. Overall, my advice to you is to move cautiously, informed by customer research. Have a question related to branding? Sponsored By: The Brand Positioning Workshop
Perkins+Will | Ideas + buildings that honor the broader goals of society Studio O+A Co.Design - Fri, Jan 21 2011 Keflouis XIV "Home street rue" Replay | Vertical Garden Design The project at the new Replay concept store in Florence was completed in spring 2009. The vertical garden is a part of an ecological theme developed by the architects. It covers a 7m high L-shaped wall in the 3-storey boutique. The garden is inspired by the undergrowth of a temperate forest, similar to what could be found in the lower parts of the hills not too far away from the city of Florence. Although as with any indoor garden, the plants themselves are of mostly of tropical origin to do well in the indoor climate. The overall picture is a soft, yet dense and fresh greenery, with some small-flowering plants like lanterns on top of the darker background. There is a base of plants with medium sized leaves, like Aglaonema, Philodendron, Syngonium, Microsorum and a few other ferns as well. As the wall is used as background for displaying the brands jeans products, hanging close to the wall, there is a limited space for using more voluminous plants.
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