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	<title>Premium Chatter &#187; niche brands</title>
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		<title>The Facts About Food and Other Life Lessons</title>
		<link>http://premiumchatter.com/the-facts-about-food-and-other-life-lessons/</link>
		<comments>http://premiumchatter.com/the-facts-about-food-and-other-life-lessons/#comments</comments>
		<pubDate>Mon, 18 Jan 2010 20:57:12 +0000</pubDate>
		<dc:creator>Lauren Gourley</dc:creator>
				<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Advertising]]></category>
		<category><![CDATA[brand value]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[niche brands]]></category>
		<category><![CDATA[premium brands]]></category>
		<category><![CDATA[product benefits]]></category>
		<category><![CDATA[strategy]]></category>

		<guid isPermaLink="false">http://www.PremiumChatter.com/?p=369</guid>
		<description><![CDATA[So, I&#8217;m writing on location at the Fancy Food Show in San Francisco. Though it sounds glamorous and exciting, it is a rat race and just plain full of people. Plus, I&#8217;ve never seen so many varieties of cheeses, olive oils, crackers, salad dressings, and salsas. One interesting seminar I attended features the NASFT 2009 Specialty Food Consumer Information. Without giving the farm away, there were some staggering realizations in this handy dandy little book that raise some very good questions. When I think of advertising in the specialty food category, I immediately envision those ads targeting older women and their family, making great choices for the home with a little extra expendable income. However, the latest data seems to show some staggering shifts in consumer trends. The report shows that 57% of the 18–24 demographic purchase specialty foods, as opposed to the 38% of those 45–54. Of this large population of youngsters, 64% of them are buying specialty cold beverages (whoo, hoo to Red Bull!), and the majority admit that they buy these items outside of their income bracket mainly to show off to friends—Why, hello, Bill. Would you like a little bit of this brie? Contrary to common [...]]]></description>
			<content:encoded><![CDATA[<p>So, I&#8217;m writing on location at the Fancy Food Show in San Francisco. Though it sounds glamorous and exciting, it is a rat race and just plain full of people. Plus, I&#8217;ve never seen so many varieties of cheeses, olive oils, crackers, salad dressings, and salsas.</p>
<p>One interesting seminar I attended features the NASFT 2009 Specialty Food Consumer Information. Without giving the farm away, there were some staggering realizations in this handy dandy little book that raise some very good questions. When I think of advertising in the specialty food category, I immediately envision those ads targeting older women and their family, making great choices for the home with a little extra expendable income. However, the latest data seems to show some staggering shifts in consumer trends.</p>
<p>The report shows that 57% of the 18–24 demographic purchase specialty foods, as opposed to the 38% of those 45–54. Of this large population of youngsters, 64% of them are buying specialty cold beverages (whoo, hoo to Red Bull!), and the majority admit that they buy these items outside of their income bracket mainly to show off to friends—<em>Why, hello, Bill. Would you like a little bit of this brie? </em>Contrary to common sense, the landscape has changed from simply the well-educated foodie, but now it encompasses your average college kid with mom and dad&#8217;s expendable income!</p>
<p>This is just yet another example of why it is so important to look at your marketing landscape with more than just assumptions and gumption. There must be more than just a &#8220;spaghetti&#8221; tactic—an idea we just throw at the wall of consumers and hope sticks to something. Though it is a rudimentary idea, I see so many tv spots, tag lines, etc. that either clients or agencies assume who the audience is, what they want, and how they want it all because that&#8217;s how they&#8217;ve always done it! Well, let the specialty food industry be an example of how far off target an assumption can be—and how many marketing dollars will be completely wasted.</p>
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		<title>Luxury Brands vs. Premium Brands</title>
		<link>http://premiumchatter.com/luxury-brands-vs-premium-brands/</link>
		<comments>http://premiumchatter.com/luxury-brands-vs-premium-brands/#comments</comments>
		<pubDate>Tue, 25 Aug 2009 11:43:45 +0000</pubDate>
		<dc:creator>Doug Briley</dc:creator>
				<category><![CDATA[Premium Branding]]></category>
		<category><![CDATA[Advertising]]></category>
		<category><![CDATA[aspirational marketing]]></category>
		<category><![CDATA[awareness]]></category>
		<category><![CDATA[brand identity]]></category>
		<category><![CDATA[brand value]]></category>
		<category><![CDATA[emotional benefits]]></category>
		<category><![CDATA[furniture]]></category>
		<category><![CDATA[home furnishings]]></category>
		<category><![CDATA[luxury brands]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[niche brands]]></category>
		<category><![CDATA[premium brands]]></category>
		<category><![CDATA[rational benefits]]></category>
		<category><![CDATA[strategy]]></category>

		<guid isPermaLink="false">http://www.PremiumChatter.com/?p=140</guid>
		<description><![CDATA[The difference between luxury and premium isn't as obvious as you might think; the context of function drives an important mindset that's imperative to understand if you're a marketer to high-end brands.]]></description>
			<content:encoded><![CDATA[<p>The difference between luxury and premium isn&#8217;t as obvious as you might think. I believe this criteria has to do with what we at Warren Douglas refer to as &#8220;share of wallet&#8221; relative to the consumer&#8217;s household income, calculated against the product&#8217;s &#8220;function index.&#8221; For example, if an up-and-comer college graduate uses a $400 fountain pen to fill out a job application, the pen is a luxury item rather than a premium item. If a multi-millionaire uses that same brand and model pen to write his personal checks, the status of the pen becomes relegated to premium. For the job applicant, the pen is a status symbol. For the wealthy business man, it&#8217;s a tool with a lower index relative to income. Why does this matter to marketers? It all has to do with understanding the mindset of the consumer in the right context to engage and drive a predictable purchase pattern. For Montblanc, the brand is both premium and luxury, but premium to one audience and luxury to another.</p>
<p>As another example, take Steinway pianos. Their music room grand could cost as much as $80,000. To the wealthy entrepreneur who wants the nicest piano for entertaining and to make a furniture statement, it&#8217;s a luxury item. A $40,000 alternative could functionally do the trick, but there&#8217;s no status with the lesser alternative. However, to the music teacher who views the piano as a necessary tool, the Steinway is a premium choice. In this case the &#8220;share of wallet&#8221; in relation to household income is likely opposite that of the fountain pen example above. Yet the secret ingredient to marketing to premium and luxury consumers has to do with the &#8220;function index,&#8221; and how strong that factor is to influence purchase.</p>
<p>This topic becomes really fascinating when considering brands in categories that are much more commoditized, such as grocery items, home furnishings, and even pet care. For more information on premium brands, or information on how Warren Douglas can index premium brands in a specific category, visit the <a title="Warren Douglas" href="http://www.warrendouglas.com" target="_blank">Warren Douglas</a> website.</p>
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		<item>
		<title>Premium on a Budget?  You Bet!</title>
		<link>http://premiumchatter.com/premium-on-a-budget-you-bet/</link>
		<comments>http://premiumchatter.com/premium-on-a-budget-you-bet/#comments</comments>
		<pubDate>Thu, 28 May 2009 14:30:59 +0000</pubDate>
		<dc:creator>Steve Hanthorn</dc:creator>
				<category><![CDATA[Premium Branding]]></category>
		<category><![CDATA[Add new tag]]></category>
		<category><![CDATA[Creative]]></category>
		<category><![CDATA[Grocery]]></category>
		<category><![CDATA[home furnishings]]></category>
		<category><![CDATA[home improvement]]></category>
		<category><![CDATA[home products]]></category>
		<category><![CDATA[home projects]]></category>
		<category><![CDATA[luxury brands]]></category>
		<category><![CDATA[niche brands]]></category>
		<category><![CDATA[premium brands]]></category>

		<guid isPermaLink="false">http://www.PremiumChatter.com/?p=85</guid>
		<description><![CDATA[Too often, marketers of premium brands seem to believe that advertising their brand or service will be, much like their brand, a premium proposition. They assume that good advertising is simply “too expensive.” And all that production and photography and printing and interactive stuff is just fancy frosting that their cake doesn’t need to sell. So they opt to do only the bare minimum to scrape by. Or, worse yet, leave it to unqualified individuals who end up doing more to tarnish their premium offering then polishing it. This mindset of “creative advertising = poor house” is unfortunate, because the exact opposite can be true. With the right strategy and the right creative thinking, it’s possible to both showcase and market a premium brand in a premium manner— all while adhering to the tightest of budgets. A recent effort by our agency on behalf of a packaged goods client is a perfect example. This client enjoys one of the top spots in their category, with a loyal customer fan base its competition would die for. They’d ridden a long-lasting wave of word-of-mouth popularity, relying only on small marketing efforts they handled themselves. But in recent months their business had plateaued. [...]]]></description>
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<p class="MsoNormal">Too often, marketers of premium brands seem to believe that advertising their brand or service will be, much like their brand, a premium proposition. They assume that good advertising is simply “too expensive.”<span> </span> And all that production and photography and printing and interactive stuff is just fancy frosting that their cake doesn’t need to sell.<span> </span> So they opt to do only the bare minimum to scrape by.<span> </span> Or, worse yet, leave it to unqualified individuals who end up doing more to tarnish their premium offering then polishing it.</p>
<p class="MsoNormal">This mindset of “creative advertising = poor house” is unfortunate, because the exact opposite can be true.<span> </span> With the right strategy and the right creative thinking, it’s possible to both showcase and market a premium brand in a premium manner<span>—</span> all while adhering to the tightest of budgets.</p>
<p class="MsoNormal">A recent effort by our agency on behalf of a packaged goods client is a perfect example.<span> </span> This client enjoys one of the top spots in their category, with a loyal customer fan base its competition would die for.<span> </span> They’d ridden a long-lasting wave of word-of-mouth popularity, relying only on small marketing efforts they handled themselves.<span> </span> But in recent months their business had plateaued.<span> </span> For the first time in their history, they looked outside for marketing assistance.<span> </span> There was one caveat:<span> </span> the budget was<span> </span> tighter than a frog’s eyelids.</p>
<p class="MsoNormal">The solution we ultimately arrived at was as simple as it was fresh and unexpected.<span> </span> After finding the category cluttered with tired clichés and “me too” creative executions, we chose a 180º direction away from the norm.<span> </span> It was a direction that would celebrate the notion of “less being more.”<span> </span> And in doing so,<span> </span> we’d leverage two of the product’s best advantages:<span> </span> its<span> </span> packaging, and the emotional reaction the product causes in customers.<span> </span></p>
<p class="MsoNormal">So to all those in charge of a premium brand who are wringing their hands over the expense of advertising, we say “fear not.”<span> </span> With the right marketing partner, the perfect creative solution for your offering does not require more dollars than you have sense.</p>
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