How to build a premium brand?
For premium brands everything seems effortless. Business partners eagerly seek cooperation, customers willingly pay higher prices for products they are delighted to own, and competition poses little concern. This prompts the question: what is the key to becoming a premium brand? Is it exceptional marketing or offering the finest products in the market? Can every business achieve premium brand status?
A good product is not enough for a premium brand
Let’s start with products or services.
Creating a strong brand on the foundation of weak products is simply impossible. A robust brand always emerges from exceptional products or services. However, it is important to note that having a good product alone is not a guarantee of success. There have been countless companies with outstanding products that unfortunately faced bankruptcy. Moreover, it is worth noting that being a premium brand does not necessarily mean having the absolute best product in the market.
Value vs Desire
Customers and companies often seem to be driven by the concept of “good value for money.” But what does this really entail? In essence, it means that products are perceived as relatively affordable and of good quality.
However, a premium brand operates on a completely different level and doesn’t rely on the “good value for money” concept. Take, for example, a Louis Vuitton bag – it would never be considered “good value for money” in the conventional sense. The key to premium branding lies in creating DESIRE.
Desire is an emotion that transcends logic. Customers are well aware that premium products come with higher price tags, yet they still experience a sense of gratification when purchasing them. Premium products are not merely about features and specifications; they are about storytelling. It’s about crafting a narrative that evokes vivid images in the minds of customers and triggers powerful emotions.
How appealing is your story?
When companies aim to build a premium brand, they often make the mistake of focusing solely on product characteristics or advertising, overlooking the crucial element of storytelling.
The truth is, customers purchase premium products primarily for the story they convey. There are no exceptions to this rule. Regardless of the product or industry, a compelling story always generates added value. While premium brands are typically associated with consumer products, they can be found across various sectors, including medical services, leisure and entertainment, architecture and construction, and even industrial goods.
However, the key to a successful story lies in its appeal and consistency. It must be communicated effectively and placed in the right context. Equally important, the story must be authentic. Attempting to fabricate a story will eventually be discovered by customers, leading to a loss of trust.
In summary, a premium brand’s power lies in the art of storytelling, shaping a narrative that resonates with customers, creates a strong emotional connection, and aligns with the brand’s genuine identity.
Premium environment for premium brands
The environment is of utmost importance. It encompasses where you advertise, sell your products, and engage with customers and business partners.
It’s quite astonishing how frequently companies are enthusiastic about selling their products to wholesalers and distributors without carefully examining the points of sales. Incorrect product placement can swiftly damage your brand’s reputation, and once this occurs, initiating a successful relaunch becomes exceedingly challenging. Naturally, product placement must align with the products themselves and the promotional strategies. Achieving a harmonious balance within this triangle is indeed a complex undertaking.
The essence of the matter lies in the fact that many entrepreneurs, despite having excellent products and services, often lack the ability to tell a captivating story. They can discuss the technical details and features of their offerings for hours, but fail to evoke any sense of desire or emotional connection. This deficiency in storytelling is a crucial factor behind why numerous companies, despite having good products, struggle to attain premium status or even fail altogether.
Becoming a premium brand requires more than just a great product; it necessitates the crafting of a compelling and engaging narrative around that product. The power of a well-crafted story lies in its ability to resonate with customers on a deeper level. It taps into their emotions, aspirations, and desires, creating a profound connection that goes beyond mere product specifications.
To ascend to the realm of premium brands, entrepreneurs must invest in refining their story. They should focus on understanding their brand’s identity, values, and unique selling proposition, and then translate that into a narrative that captivates their target audience. This story should highlight how their products or services fulfill the needs and aspirations of customers, elevating them to a level of desire and aspiration.
However, having a remarkable story alone is not enough; effective communication is equally vital. The story must be communicated in the right way, through appropriate channels, and to the right audience. This strategic approach to storytelling ensures that the brand’s message reaches its intended recipients, resonates with them, and leaves a lasting impact.
Ultimately, the journey to becoming a premium brand is a combination of having an extraordinary product, a compelling story, and the skillful communication of that story. By embracing the art of storytelling, entrepreneurs can transform their businesses, elevate their brands, and create a lasting connection with their customers.
Communicate, communicate, communicate
A compelling story alone is worthless if nobody knows about your brand. While a premium brand can yield high-profit margins, it also demands significant investment in premium, intensive communication efforts.
One common misconception among companies is the disparity in how they view their spending on production equipment versus marketing. While they consider production equipment as an investment, marketing costs are often seen as mere expenses. However, this mindset undermines the potential of building a strong brand.
For premium branding to truly succeed, it necessitates a three-pronged approach: exceptional products, a compelling story, and, most importantly, a willingness to invest significantly in marketing. Generating awareness and effectively communicating the brand’s story are pivotal to creating a lasting impact on the target audience.
Finding the right balance among these elements is crucial. The brand’s story must align seamlessly with its products and services, while marketing efforts should be persistent and consistent. It’s important to acknowledge that becoming a premium brand is not an overnight success; it requires dedication and ongoing commitment.
As with any business endeavor, success in premium branding comes from absolute dedication and a willingness to invest before reaping the rewards. Building a premium brand is a journey that requires patience, resilience, and strategic planning. By aligning exceptional products, a captivating story, and robust marketing efforts, a company can steadily progress towards becoming a respected and sought-after premium brand in its industry.