“Premium” Doesn’t Have to Mean “Exclusive”

ProRelevant Marketing Solutions

“Premium” Doesn’t Have to Mean “Exclusive”

Marketers could be backing their products into a corner by assuming who their customers are and the sources that sell their products. The July issue of Admap details a report from the Ehrenberg-Bass Institute for Marketing Science with revealing findings about “premiumisation,” the art of launching premium brands.

Other strategies should be based on three areas in increasing purchase value: within industry, within category, and within product format.

Within industry:

Most businesses have multiple categories within their industry. The study recommends companies focus on growing their premium categories, rather than the items that are easier to sell.

Within category:

Diving deep into products in a single category can spur innovation, creating new sub-categories that drive more consumer value. Examples: coffee pods and single-serve wet pet food.

Within product format:

Creating opportunities to distinguish differences between price points will make consumers take notice.


Assumptions about buyers and their sources can limit sales. Don’t unnecessarily limit distribution, the authors state. They cite the example that Dom Perignon sells more Champagne in Costco than any other retailer. Similarly, lower-income consumers buy expensive brands; likewise, higher-income consumers buy bargain brands.

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Links Appearing in this Post –

“Deconstructing premiumisation with Ehrenberg-Bass” on WARC.com. Published 7/2019, Collected 8/16/2019. https://www.warc.com/newsandopinion/news/deconstructing_premiumisation_with_ehrenbergbass/42297