14 20 Jason Martuscello - Insight...
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BEESY © Private & Confidential 2018 www.beesystrategy.com Premiumization IIeX-North America The Key to Brand Growth
Transcript of 14 20 Jason Martuscello - Insight...
BEESY © Private & Confidential 2018 www.beesystrategy.com
Premiumization
IIeX-North America
The Key to Brand Growth
BEESY © Private & Confidential 2018
15 Minutes = How to get Customers to Pay More for Brands & Products
This session will uncover the behavioral science of
premiumization that gets customers to pay premium for a brand.
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Problem Opportunity Solution
Created by Creative Stallfrom the Noun ProjectCreated by Tanuj Abrahamfrom the Noun Project Created by Maxim Basinskifrom the Noun Project
Private Label Growth
How to Grow
How you can Win
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BRANDSBrands build distinctive assets and differentiationbetween products
Customers actively resist differentiation, categorizing to
simplify the vast amount of options
CUSTOMERS
FOCUS ON DIFFERNTIATION“I am different, better than competition”
FOCUS ON CATEGORIZATION“It looks like TP, works like TP, its just TP”
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PENETRATION
PENETRATION
PENETRATION
TIME
CATE
GORY
CO
NSU
MPT
ION
Growth Depends on Premiumization
PREMIUMIZATION
MATURE CATEGORIES
DEVELOPING CATEGORIES
EMERGING CATEGORIES
PREMIUMIZATION
SELECTIVEPREMIUMIZATION
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Low QualityLow Price
Private & Store Labels have improved quality; products become similar to global brands
High Price
High Quality
Brands need to Premiumize to Command Higher PricesPREMIUMIZATION
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Customer motivated or desire to
For product perceived of higher value
What is Premiumization?
Willingness to pay a premium price for a brandCreated by Jon Garciafrom the Noun Project Created by Renafrom the Noun Project Created by Loganfrom the Noun Project
Pay premium relative to other offerings in a context
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84¢ 89¢Premium = People to pay more for products
Increase the Average
Brand Selling Price
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Brands create a demand to pay more for a product
Customerwillingness to pay more for a product
THE SAFE BET
INNOVATIVE
EXPERIENTIAL
EASIER
ENHANCES IMAGE
How to Win with Premiumizaton?
Created by Loganfrom the Noun ProjectCreated by monkik from the Noun Project
5 Paths to Premiumization
Brand. Product. Context
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What customers value is rooted deep…
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PREMIUMIZATIONPATHWAYS
Evolutionary Psychology
Economics
Cognitive Psychology
Biology
Social Psychology
MAKE IT SAFER
INNOVATIVE
EXPERIENTIAL
EASIER
ENHANCES IMAGEPay more for products
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Different Paths with Premiumization
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Status Quo in the Bottled Water Category
Pay More to be Innovative
Pay More to Enhance my Image
$1.45Average Category
Selling Price
$2.70Average Category
Selling Price
$2.00Average Category
Selling Price
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Make it Safer
More Innovative
More Experiential (memorable) Make it Easier Enhances social
& self image
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PRODUCT
A
PRODUCT
B
PRODUCT
C
PRODUCT
D
OPPORTUNITY TO COMMAND A PRICE PREMIUM
Premiumization Analyses: Plotting by Category Competition
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Behavioral Science Testing Opportunities to Premiumize
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TESTING FRAMING
rand
omiz
atio
n
Name 1
US Toilet
CleanerConsumers
Branch 2
Branch 3
WILLINGNESS TO PAY PREMIUM
• $15 gift card redeemable for • $15 gift card redeemable for your
regular toilet bowl cleaner• I don’t want to be entered into the
prize draw
TESTING CONTEXT
Branch 1 System
MTBC
GoodBetterBest
Name 2
Name 4
CONTROL
Independent Variables to Drive Premiumization Behavioral Dependent Variable
Name 3
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The Key to Brand Growth in Mature Categories is Premiumization
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5 Strategic Paths to Premiumization
Identify competitive advantages and sources of
category growth
1 2 33 Opportunities to Premiumize
1. Premiumize in context2. Premiumize in brand3. Premiumize in product
Behavioral Science Driven Tactics
Apply behavioral science to test and activate premiumization
interventions
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Thank you
www.beesystrategy.comJason Martuscello – 518-577-2004 [email protected]
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