In today’s fast-paced world, consumer behaviors, sales channel norms, and supply chain funnels are constantly evolving. The pandemic has played a significant role in accelerating the pressures on brands, ranging from inflationary concerns to increased demand for sustainability. While some categories have remained buoyant, research indicates that there are early signs that volume demand may be slowing.
This, combined with a growing premiumization trend, creates a one-of-a-kind environment of risk and opportunity. Businesses that invest in brand building and use data to react to market changes and inform decision-making will be the ones that succeed. Simply redesigning products or releasing premium versions is insufficient. It is critical to invest in authentic, compelling brand stories that are supported by effective positioning and communication.
Moreover, brands can take steps to become known for the right things if they identify and understand the values and characteristics of their audiences and potential customers.
Increasing brand strength using the right tools
Some businesses want to increase their sales volume, while others want to increase their premium pricing. Others desire both. Understanding consumers and why they buy is critical to developing laser-focused brand growth strategies, regardless of the companies’ business goals.
On the other hand, finding the best strategy for today and future-proofing it for tomorrow is not an easy task. Brand strength has two aspects: Brand Choice ( the predisposition to buy a brand) and Brand Premium (the willingness to pay more for it).
Brand Choice Drivers: Brand Attachment should focus on self-connection, reflecting the consumer’s personal identity and values, which may lead to an increase in sales volumes. Whereas a distinct brand image being less important comes second. To effectively drive Brand Choice, businesses must first ensure that their products are accessible, affordable, and simple to use.
Brand Premium Drivers: With the pandemic and digital transformation fueling the evolution in the marketing industry, the premium segment is expanding quickly. A decrease in travel and experience spending has resulted in an increase in disposable income, as well as an increase in consumer desire to invest in premium products.
More brands are entering the premium segment making the competition fierce, while both new and established businesses are working hard to establish and maintain their positions.
Earning Brand Attachment is critical to driving Brand Premium. Connections should always be strong and meaningful, with premium brands focusing on how they can help consumers assert their identity, values, and aspirations. Superior quality and functionality are required for high-quality products that delight the customer. To claim a premium, brands must deliver true excellence through the design, innovation, or exceptional experiences.
Great brands understand their customers as well as their own businesses inside out. This empowers them to create incredible brand experiences driving sales growth, premiumization, or both.
Finally, a winning strategy is one that attracts and retains more customers, thus future-proofing the brand. This can only be accomplished by leveraging the appropriate insights, which must be linked back to the bottom line and, more importantly, lead to actions that keep the business moving forward.