Playing with Prices: A Premium Brand Advantage

I was in a wholesale market and the prices ofconsumers are also taking into consideration when
everything they sell there is simply amazing. I wasbuying products or services. These people are not just
amazed by how low their prices can be. I could notbuying a bag; they are actually buying a name that has
fathom how anyone could still make a profit from theluxury spelled all over it. The prestige they gain from
things they sell there. A shirt for instance sells forcarrying this bag in an upscale shopping center is a
US$1.50. A DVD player costs a little over US$10. Notprivilege they are willing to pay.
to mention the many imitation products that they soNow how do you take advantage of this market
blatantly sell. Lacoste, Crocs, Polo - these are justtrend?
some of the names in their hang tags. But the nextInvest in brand management. Businesses should have
question I had in mind is the quality of the products. Willits dedicated unit in the company which should handle
they last?brand management. The Wikipedia defines brand
Consumers today are no longer lured by cheap prices.management as 'the application of marketing
They have become more discerning and oftentimes,techniques to a specific product, product line, or brand.
they also consider the quality of the product. TheyIt seeks to increase the product's perceived value to
have to realize that the cheaper products are lessthe customer and thereby increase brand franchise
trustworthy than those which cost a little more.and brand equity.' Brand management is all about the
Remember the recent spate of contaminationimplied promise that the level of quality people have
scandals that rocked an Asian country? As an effect,come to expect from a brand will continue with future
consumers now prefer hang tags that they can trustpurchases of the same product. If this is so, your
– particularly for food and beverages.company can then reap the rewards from a good
In addition to this, consumers are increasingly buyinghang tag printing.
products that are considered as status symbols. AA premium brand or a brand that is trusted by majority
Hermes shop just opened in a developing country andof consumers can easily command a good price
you would be amazed by how fast Birkin bags arecompared to other products in the same category.
being sold considering that their price tags can alreadyConsumers are more than willing to pay a little more to
buy you a nice sedan. The snob appeal is whathave that peace of mind.