If your positioning is off, your brand will lose profitability and run the risk of failure, so understanding the heart and mind of consumers in relation to brand communication, is critical for success.
We recently worked on a brand repositioning for an iconic South African beer. The ask was complicated to say the least, re-position the product so that it appealed to a young, up and coming aspirational target market, without alienating the existing, older ‘grey’ market.
A tremendous amount of research was done up front around the new target market segment, a highly aspirational consumer who, through their incredibly busy schedules, had little to no time to slow down and connect with friends around things that truly matter. The aspiration of this audience drove to a link with the global phenomena of “premiumisation”.
Rapid wealth creation in emerging markets has created demand for upmarket spirits, and in South Africa, specifically whiskey and brandy. Though luxury is still inherently rarefied, today our desire for it has become unrestrained. This means, that even in tough economic times when value may dictate purchases, we continue to seek inexpensive ways to experience luxury. This has created a new niche, yet a ‘mass’ desire for ‘premiumised’ products: The perfect platform from a positioning perspective, for our client’s beer brand, to target the new, young and aspirational consumer.
The main reason for this was the aspirational drive of the target segment. They are seeking premium brands as status symbols. In practice, the product was driven via quality, process and craft and the provenance of the ingredients, as well as time-honored luxury ideals that were re-contextualised for a new and expending audience. The brand positioning created value through desire, but didn’t value itself out of its market.
It’s vital to keep in mind that premiumisation needs to establish difference, your difference, but at an affordable price.