5 principles for brands to create "high-end" positioning

High-end positioning is an effective flanking opportunity, the father of positioning Ai Reese made a brief explanation in the book "Business War". The Father of positioning believed that "there are many opportunities to launch flanking warfare at high prices, and almost any commodity or service item has an excellent opportunity to launch an attack at the high end."

Examples in the book include Haagen-Dazs, Mercedes-Benz, Papa John's and so on. Haagen-dazs is a premium ice cream brand that today sells more ice cream than all other premium ice creams combined. Mercedes-benz attacked General Motors in the U.S. market through its high-end flanks and became the No. 1 brand of high-end cars in the United States. Papa John's has built a reputation for premium pizza with fresh ingredients, making it far more profitable than leading brand Pizza Hut.

Creating a premium brand requires skill, cultivating high-end influencers, seeking recognition and catering to the media. Of course, enterprise products must meet or exceed the expectations of advanced buyers. It all takes a lot of money and effort. In addition, when creating a high-end brand, enterprises should also follow the following five principles.

Principle 1 Evaluate high-end demand by category
This "minefield" has been trampled repeatedly in practice.

The needs of high-end brands are very unique and can be glimpsed when compared to other demand types.

Consumers buy Wanglao Kit because Wanglao Kit provides solutions to the "prevention of fire" needs. Consumers buy the boss range hood because the boss range hood provides a solution to the need for "big suction".

For high-end brands, simply speaking of quality or function, the value is discounted by at least half, and high-end brands must consider their added value: social attributes. In short, the value of a high-end brand consists of social needs and quality needs. Therefore, it is not optimal to create high-end positioning for practical products or products that do not have social attributes.

The competition between the boss and Fong Tai in the range hood category explains this principle well.

Fang Tai and the boss are the two leading brands in the domestic range hood industry, both in sales and sales volume are close to each other. In 2011, Fangtai took the lead in establishing a "high-end" positioning, and Boss Electric established a "large suction" positioning in 2012.

In the range hood category, which "high-end" and "large suction" meet the needs and meet the cognition?

Boss range hood practice "big suction" positioning only 2 years to become the world's first range hood brand. "Big Suction" won "High end."

For practical products, consumers pay more attention to their practical value rather than their social value.

EKO Group is a provider of hotel supplies and office supplies, and its EKO brand specializes in the production of garbage cans. Between 2017 and 2019, EKO sought to build a "high-end trash can" by appealing to consumers in high-speed rail magazines and high-speed rail TVS.

Xiwang is the leading corn oil brand in China. In 2016, West King launched a positioning project to reposition the brand as "high-end corn oil". The brand uses movie star endorsement, advertising and terminal materials with high-end positioning landing.

The "high-end corn oil" positioning project has been implemented for 2 years, and the subsequent operation title of "high-end corn oil" is not available.

A high-end trash can? High-end corn oil? The combination of garbage cans and corn oil to assess "high-end" demand will not be suitable.

Combined with the category, consumers have no social needs for garbage cans, corn oil, driving schools, marriage, financial management, and electric caravans themselves, so the "high-end" positioning is extremely weak.

What kind of products are social?

"Walking products" have social attributes, and "walking products" increase brand exposure and enhance the social value of buyers.

The range hood is a fixed product, and the trash can and corn oil are kitchen products, which cannot be walked around and cannot be carried. Cigarettes, liquor, cars, bags, and watches are called "walking products."

Therefore, the establishment of "high-end" positioning of the brand should be combined with the category of thinking, in watches, cars, clothing and other categories, high-end demand exists, the establishment of "high-end" brand is reasonable and reasonable, in some practical categories, the establishment of a single function positioning is far more valuable than the establishment of high-end positioning.

Principle two recognizes that the mind is blank
Establishing positioning should start from the mind, but also examine the competitive relationship, and identify the high-end gaps in the mind of potential customers.

Ignoring the competition is a sure-fire way to pay, as has been proven repeatedly in marketing. If a competitor already occupies a premium position in the consumer's mind, it is smart for the company to look for other Spaces.

The leading brand in China's liquor market belongs to Moutai, which ranks first in the world in terms of market capitalization and revenue. Moutai has occupied a "high-end liquor" in the minds of Chinese consumers, and its position is extremely stable.

Other baijiu brands should think of other ways to avoid trying to dislodge Moutai from the minds of consumers. Moutai is a hard bone that cannot be removed at any cost.

Because high-end positioning is too valuable in the liquor category, more than one liquor industry is trying to establish high-end positioning, and Shede, Qing, Guo Yuan, and Qinghua Lang are working hard in the high-end direction.

From 2017 to 2019, Sichuan Shide, Hubei Qing Sample and Jiangsu Guoyuan took a dangerous step, they spent huge sums of money to create a "high-end liquor" positioning, and the three brands attacked at the same time, and eventually returned in vain.

The first to realize the problem is Shede, after three consecutive years of high-end liquor, Shede began to turn to the concept of "all old wine" from the second half of 2019. You don't need to look at the data to know that high-end positioning is definitely not effective, if it is effective, you will not terminate the marketing plan. Let the previous investment go to waste, companies should learn to cut their losses in time.

Subsequently, we see that Hubei Qingqing has also given up the positioning of establishing high-end liquor, and no matter how much resources Jiangsu Guoyuan consumes, it is impossible to establish the positioning of high-end liquor.

Qinghua Lang's "high-end sauce flavor" positioning does not work, it belongs to Moutai. In 2017, Qinghualang was repositioned as "one of China's two great sauce-flavored liquor", which is a good positioning, the problem is that the price is too close to Maotai.

Sichuan Shede, Hubei Qingqing sample, Jiangsu Guoyuan and Qinghualang have all suffered. They ignore the mind, in the liquor industry, the "high-end" positioning is not blank, this position belongs to Moutai, unless they have a way to move Moutai from the "high-end liquor" position, otherwise, their strategy is futile.

Do not repeat the lessons of the liquor market, enterprises should scan the mind before making efforts to "high-end", confirm that the high-end position is in the blank, otherwise, no more efforts will be wasted.

Principle three: Brands have a high-end cognitive foundation
Using the existing cognitive foundation is a shortcut to establish positioning, and it will not work against cognition.

In 2016, Chigo Air conditioning senior Yang Xiangwen publicly released the "Chigo air conditioning brand White Paper", Yang Xiangwen frankly: "Chigo high-end air conditioning is the ultimate feeling after user experience, is the consumer's high recognition of the brand."

Yang Xiangwen ignores the perception of customers at his peril. Mr. Yang Xiangwen should first understand consumers' views on Chigo brand, and whether the existing cognition can support the creation of high-end positioning of Chigo brand.

What do consumers think of Chigo Air conditioning?

"Not so well known, second-rate brand," the response of consumers will disappoint Chigo managers.

Such feedback is not very helpful for Chigo to build a high-end brand.

Accordingly, the foundation of Chigo to build a high-end brand does not exist, and consumers will not believe that Chigo can make better air conditioners than Gree and Midea. But companies are convinced that they know their products.

Chigo's "high-end air conditioning" strategy has been in trouble for less than three years. In 2015, Chigo sales were still the fifth in the air conditioning market, by 2019, Chigo air conditioning offline sales ranked eighth, online sales ninth. Even worse is the survey data from the Ministry of Industry and Information Technology and China Enterprise Brand Research Center, Chigo air conditioning brand power index ranked 15th, the industry's second to last. Cognition is ahead of sales, which indicates that Chigo air conditioning market performance will be worse next year. Chigo's "quality revolution" failed to materialize.

In the winter of 2019, China's leading brand of casual clothing: Semar launched the high-end outdoor down brand "Bai Yu Rongji", before which, Semar's market performance was extremely excellent. In 2018, Semma Clothing achieved a total operating income of 15.719 billion yuan, an increase of 30.71%. In the first half of 2019, the operating income was 8.219 billion yuan, an increase of 48.57%.

Sema company has high hopes for high-end outdoor down jackets, and tries its best to build "Baiyu Rongji" into a high-end outdoor down jacket brand. We predict that Semir's calculations may fail, because Semir's existing perceptions hinder the establishment of high-end positioning.

What does Sema represent in cognition? At present, Sema is the first choice of high school students, does not belong to senior buyers, there is no high-end cognitive basis. Its cognition is limited to this, Semma's high-end down jacket will eventually be fruitless.

Why Chigo and Semar's high-end products have failed.

The reason is stereotyping. Stereotypes are all about categorizing, simplifying information. This is a simple understanding, although it is helpful to make a general understanding of something, but it is also easy to be biased.

The stereotype is based on the fact that it is not the object of knowledge, and sometimes the stereotype comes from the rationalization of prejudice, which is a "misunderstanding" that leads to distortion. It is precisely because of the existence of stereotypes that Chigo and Semar's new products are affected by stereotypes. In the perception, it is difficult for second-rate enterprises to produce high-end products, thus hindering the establishment of high-end positioning of the brand.

Principle four high end verifiable
At the beginning of the article, the paragraph of the founder of the good product shop: high-end brand is not equal to high price but high quality. This sentence must be very warm for consumers to hear, however, it does not help the good goods shop to build high-end brands in the minds of consumers.

In the snack category, where is a good store better than three squirrels?

High quality cannot be verified.

Can consumers identify the advantages of 200 yuan liquor over 100 yuan liquor? What's good about Rolex? What's so good about Mercedes?

Consumers are not experts and cannot be verified.

High prices are the best way for consumers to validate premium brands. For many goods, high price is the benefit of customers, and high price will increase the quality and reputation of goods in the cognition.

How can consumers verify which brand of bottled water is better? Consumers will not be tested by a professional department, nor will they be consulted in detail on the ingredient list. There is and only price for consumer verification. Consumers believe that the quality of 2 yuan bottled water is better than 1 yuan bottled water, and 4 yuan water is better than 2 yuan water. It's so simple.

"High-end snacks" are not a good idea, the key is: consumers can not verify its high-end positioning through the price. Fortunately, good shops get the favor of capital, take some detours, consume some resources will not hurt the bones.

In the second half of 2015, the "high-end" positioning of Yadi electric vehicles was born, and the "higher-end electric vehicles" resounded in the streets for three consecutive years.

How is the implementation effect of the strategic positioning of "high-end electric vehicles"?

Yadi's 2017 annual report shows that the average selling price of electric scooters fell from 1,766 yuan in 2016 to 1,675 yuan in 2017, while the average selling price of electric bicycles fell from 1,181 yuan in 2016 to 1,135 yuan in 2017. As a result, the Group's overall gross margin decreased by approximately 5.9% from approximately 20.3% in 2016 to approximately 14.9% in 2017.

The average selling price and gross margin of Yadi's "premium electric vehicles" both fell.

Building a "premium" brand in the EV category itself has a demand problem. Then there is the price, the price of Yadi and competitors are not much of a gap, consumers can not through the price to verify Yadi's "high-end". So "premium" brands don't have credibility.

Emphasize a "high to play low" concept, it can be understood as: brand spread high-end, through the sale of products at affordable prices. This approach will not work. The reason is that high-end and affordable cannot coexist for a long time. The two undermine each other.

Principle 5 Create scarcity
Premium brands must also follow the "scarcity" principle. High-end brands belong to senior buyers, only senior buyers will pay more attention to social value, once the brand enters the mainstream market, social value will be diluted, senior buyers will give up buying.

This is why many high-end brands always have "limited edition" products. By controlling scarcity through limited products, brand owners can keep prices and demand high.

If most people are carrying LV bags, LV and high-end positioning will inevitably drift away.

Raising prices can dampen demand, creating scarcity.

Yadi's approach of lowering prices to boost sales is not friendly to the "high-end" positioning. Product price cuts, product sales increase, brands can be seen everywhere, rural elders, urban couriers, takeaways are using "high-end" electric vehicles.

Without premium buyers, without scarcity, high-end brands cannot be built.

Why is Maotai wine always unavailable?

costco, the global membership-based supermarket chain, can buy a bottle only with a membership card. Many tourists to Renhuai City Moutai Town Moutai hotel to buy Moutai wine, each person with ID card limit of two bottles of Moutai. It is not uncommon for distributors to fail to buy Maotai.

The scarcity of manufactured products can enhance the social value of users, which is very important for high-end brands. On the contrary, if a high-end brand in the market visibility is too high, high-end attributes are bound to have challenges.


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