Premiumisation strategy as a way to grow

Journal article


Graham, C, Nenycz-Thiel, M, Dawes, J and McColl, B (2019). Premiumisation strategy as a way to grow. Admap Magazine.
AuthorsGraham, C, Nenycz-Thiel, M, Dawes, J and McColl, B
Abstract

Explores the myths of premiumisation, adding evidence to the topic by identifying the appropriate growth strategy, as well as how to manage pricing and price promotions for the premium offer.
Premiumisation should be a joint enterprise with channel partners, who should be involved early on, to get both insight and co-operation with the strategy.
Three strategic lenses are considered when determining how to increase average purchase value: within industry, within category and within product format.
A premium brand is not a mainstream brand, and should not be expected to sell volume like a mainstream brand, so consider de-emphasising volume objectives and ensure that whatever you do sell is at your intended price point.
Price promotions are not a good way to attract new buyers.
And there is an alternative way to attract them other than cutting price – advertising, better physical availability or sampling.

KeywordsPremiumisation; Category Growth; Price Elasticity; Price Promotion; Champagne
Year2019
JournalAdmap Magazine
PublisherWARC
Web address (URL)https://www.warc.com/content/article/Premiumisation_strategy_as_a_way_to_grow/126966
Publication dates
Print02 Jul 2019
Publication process dates
Deposited16 Jul 2019
Accepted30 Jun 2019
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https://openresearch.lsbu.ac.uk/item/86600

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