Market reports & researches
LOG IN | Services | Contact | Custom Research



Main Government and Public Sector Social Studies Developing Products With A Price Premium
Publications

(Currently 512486 Items)


Partners


Social Studies / REPORT INFORMATION

Developing Products With A Price Premium

DateMay, 2005
Pages75
Price / format$5695 / Online Download
$5695 / Hard Copy Mail Delivery
$11390 / Global Site License

$5 695 

Report Information | Custom-Tailored Research | Product Trade Lead


Abstract:
 Introduction
With consumer incomes in Europe and America rising, there is an ever-expanding class of consumers with greater expectations about quality and spending power to obtain it. Meanwhile, low income groups display a growing desire for aspirational products. This report will identify how both these groups can be successfully targeted with premium products.

Scope
A comprehensive analysis of how consumers form their perceptions of what constitutes a premium offering.
Data profiling specialty and prestige market growth and consumer attitudes towards premium related product attributes.
Action Points pinpointing how to devise effective marketing strategies appealing to premium seeking European and US consumers.
NPD analysis highlighting how to exploit gaps in the market and how to leverage the product attributes that consumers deem the most important.
Highlights
With 63% Europeans and American increasingly treating themselves with higher quality food or drinks it is no wonder that specialty and gourmet packaged good sales are rocketing. By 2009, specialty personal care sales are expected to exceed US$6.5 billion. Food and drink sales will reach and estimated US$120 billion by 2009.

With nearly 20 billion extra premium indulgence occasions occurring in Europe and the US in 2008 relative to 1998 it is apparent that consumers increasingly enjoy premium products as part of their daily routines. Concurrently perceptions of luxury are changing and with more exposure to higher quality goods consumer expectations are rising.

Premium offerings must be founded upon superior product attributes, especially in light of the "democratization of luxury". Five core factors affect consumers' perceptions of premium value. Those products scoring highly against these dimensions are likely to be perceived as luxurious thereby increasing willingness to pay.

Reasons to Purchase
Mitigate the threats of price discounting and commoditization by identifying what "premium" means to consumers today and in the future.
Access unique data regarding specialty product sales within Europe and the US segmented by sector and country.
Improve your marketing by understanding how consumers construct their purchasing decisions around the theme of premium and quality.




Table of contents:
 TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Hot topic 3
The future decoded 3
Action points 6
CHAPTER 2 THE FUTURE DECODED 14
Introduction 14
TREND: the value of premium packaged goods is growing 15
As consumers ‘trade up’, the luxury market is growing 15
A desire for higher quality is driving premium food and drink sales 16
Consumers are seeking better quality, richer drinking experiences 18
New ingredients and technology are driving premium personal care 19
TREND: consumer affluence is rising 21
TREND: premium seeking consumer groups are growing 23
INSIGHT: perceptions of luxury and premium are changing 24
Premium is becoming more relevant to mass-market consumers 25
Consumers now define luxury more broadly 27
INSIGHT: consumers embrace ‘hi-lo consumption’ to facilitate trading up 29
The concept of the hi-lo consumer is becoming more apparent 29
Value consciousness also remains paramount 30
INSIGHT: five factors affect overall perceptions of premium 31
INSIGHT: internal and external quality cues affect willingness to pay premiums 32
Physical product attributes influence sensory perceptions 33
Extrinsic attributes are fundamental in influencing perceptions 34
Credence quality influences trust, involvement and willingness to pay 35
Experiential quality attributes influence future willingness to pay 37
INSIGHT: consumers will pay more for conspicuous goods 40
Conspicuous products are sought by image-conscious consumers 40
The importance of conspicuousness/coolness varies by category 42
INSIGHT: uniqueness is equated with quality and brand cachet 43
Uniqueness influences desirability and willingness to pay 43
Uniqueness needs lead to three key behavioral manifestations 44
Growing individualism is apparent amongst consumers 44
INSIGHT: hedonistic consumers will pay more for enhanced sensory benefits 45
INSIGHT: consumers regard products as part of their identity 46
Consumers pay a premium for brands offering symbolic meaning 46
Conclusions 48
It is time to capitalize on the expanding luxury market 48
Rate premium pricing potential with the ‘Premium Price Index’ 49
CHAPTER 3 ACTION POINTS 50
Introduction 50
ACTION: modify portfolios to target value and premium consumption 50
Develop new offerings to fill the growing space in the premium and super-premium segments 51
Identify existing brands that can be extended into the premium sector 54
Seek out complementary acquisition targets 54
ACTION: ensure that quality is reflected by core product attributes 55
Leverage the premium credentials of intrinsic product attributes 55
Place heightened emphasis on the authenticity of production 56
Utilize positive country of origin and/or association effects 57
Embrace viral and word of mouth marketing 59
Develop packaging formats oozing quality and sophistication 59
Develop products that offer ‘on-trade’ or ‘proffessional quality’ 61
Provide and communicate experiential quality 63
ACTION: target hedonism with sensory loaded goods and promotions 65
Adopt experiential marketing to leverage sensory appeal 66
ACTION: leverage the conspicuousness of products 67
Develop ‘cool’ packaging for consumption in social settings 68
ACTION: target consumers’ desire for uniqueness 69
Offer more opportunities to customize product offerings 69
Restrict availability and emphasize exclusivity attributes 70
Avoid long-term discounting 70
CHAPTER 4 APPENDIX 71
Definitions 71
Research methodology 72
References 72
Industry and news sources 72
Academic sources 73
How to contact experts in your industry 75


LIST OF TABLES
Table 1: The value (US$) of specialty food and drinks markets, by country, 2004-2009 17
Table 2: Number (m) and value (US$m) of overall European and US premium occasions by category, 1998-2008 17
Table 3: Prestige alcohol sales by category (US$m) 2002-2007 19
Table 4: Prestige personal care sales by category (US$m) 1997-2007 20
Table 5: Specialty personal care sales (US$m) by country, 2004-2009 20
Table 6: GDP at PPP per head (US$), 2003-2008 21
Table 7: Wealth groups in Europe (m) 1995-2005 22
Table 8: Wealth groups in the US (m) 1995-2005 23
Table 9: The number of key premium seeking consumer groups (m), 2003-2008 24
Table 10: Dove and Crest: offering democratized luxury through packaged goods 51
Table 11: Examples of new offerings capitalizing on the premium trend 53
Table 12: Examples of brand alliances and licensing that enhance a brand’s premium credentials 53
Table 13: Examples of existing brands being extended into premium sector 54
Table 14: Examples of products leveraging intrinsic quality attributes 55
Table 15: Products which capitalize on the growing consumer demand for authentic consumption experiences 56
Table 16: Examples of emphasizing country of origin or country of association to help establish a price premium 58
Table 17: Examples of packaging formats complementing a product’s premium positioning 60
Table 18: Examples of merchandizing displays that complement the premium image of a product offering 61
Table 19: Examples of products offering consumers professional quality 62
Table 20: Examples of how to command a price premium through enhanced effectiveness 64
Table 21: Branded accessories can enhance the quality of the consumption experience and willingness to pay a premium 65
Table 22: Examples of effective descriptions that promote the sensory properties of products 67
Table 23: Examples of leveraging product conspicuousness 68
Table 24: Examples of snack and drink products and concepts targeting the individualism trend 69
Table 25: Examples of emphasizing exclusivity in order to target the desire for uniqueness 70
Table 26: Definitions used in this report 71


LIST OF FIGURES
Figure 1: Premium exists on different levels 14
Figure 2: Six major factors account for consumers’ increasing tendencies to trade up to prestige consumer packaged goods 16
Figure 3: Perceptions of luxury and premium are changing 24
Figure 4: The Premium Price Index (PPI): the five factors that affect people’s perceptions of premium in consumer packaged goods 32
Figure 5: Consumers’ quality perceptions can be grouped under four main factors 33
Figure 6: Taste, Freshness and Origin are considered the 3 most important attributes of the ‘best of its kind’ food and drink products 39
Figure 7: Effectiveness, Healthiness and Convenience are considered the 3 most important attributes of the ‘best of its kind’ personal care products 39
Figure 8: The importance of coolness and conspicuous consumption varies by product category 42
Figure 9: Strategies for managing country-of-origin effects 58
Figure 10: Convenience product attributes by sector 63
Figure 11: The different levels of experiential marketing can be used to capitalize on the sensory mega-trend 66




Order this report

  Company name:
  Contact person:
  Phone/fax:
  Email:
  Comments:
   


Product Trade Lead
0 leads found


Add New Buy/Sell Lead

© 2007-2010 MarketReportFinder.com