The Meaning of Premium: How Different Cultures Define Luxury and Quality
Here’s an extract from my new book. “The Shape of Taste”. In this chapter ?we examine how different drivers in different markets can be maximised so that brands resonate with consumers psychological needs.
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….After our experience in developing a premium coffee in China, we went on to develop a premium coffee in the Philippines. This was already a well-developed coffee market but one where competitive activity was driving prices down and squeezing profitability. The successful launch of a premium coffee in the Philippines segmented the coffee market there and helped Nescafé improve profitability.
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What I have always remembered most about this project is the vastly differing attitudes that drive feelings of premiumness in the two countries. We found that, in simple terms, there are four emotions that prompt feelings of premiumness:
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? Aspiration: These are the things that I desire, that I wish to own or partake in. I will
work hard so that I can achieve and enjoy these things.
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? Indulgence: This makes me feel good; it is something that I enjoy. I deserve this.
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? Competitiveness: I like this because it is better than the other options. This makes me
look good; it shows that I am an achiever/better than others.
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? Reassurance: This makes me feel more secure. It is better quality/more expensive so
it must be better than the alternative. It is a safe choice.
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In our experience with The Marketing Clinic, most people will, to some extent, be driven by all four and the extent to which any one or two is more dominant will vary between people, occasions, and even the types of product or activity being considered. However, whenever you look at an identifiable group such as a region, a nation, or a culture, you will find a clear pattern of dominance driving a cultural view of premiumness.
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In China, where traditional Chinese culture is combined with rapid change, growth, and urbanization, competitiveness and reassurance dominated as the drivers of feelings of premium, while in the Philippines, indulgence and reassurance were the main drivers.
While Nescafé was ostensibly trying to achieve the same thing in each market – the launch of a premium coffee – these differences had to be recognized in the positioning and communication of that coffee and also in the taste journey. Two very different coffees and positionings were required to achieve what appeared to be much the same thing.
Chris Lukehurst is a Consumer Psychologist and a Director at The Marketing Clinic:
Providing Clarity on the Psychological relationships between consumers and brands
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Great summary - Looking forward to reading this book.