Beer Packaging Template
A strategy of exclusivity can be crucial to successful brand marketing
By: Geoff Ficke
Many of the inventors and entrepreneurs who try in our consumer product marketing business approach us dreams of selling a product to masses. This can be lucrative and a proper launch strategy in cases where all the stars in the galaxy of the line properly. How often does this happen?
Mass marketing success is subject to economies of scale, advantages of big-budget production and to penetrate a resounding commercial the environment. , Established large companies, Procter & Gamble, Unilever, Rubbermaid, have all the tools necessary to launch products in this maelstrom. Most small entities and individuals do not.
Our preferred strategy is often to create a brand strategy based on exclusivity. When a product is sold in a limited distribution base, available in select stores, and usually at a higher price than similar products, consumers tend to attach a higher perceived value to these elements.
There are numerous examples of exclusivity that can be used as a template when considering the right strategy to use to launch new consumer products. Retailers that sell high-end limited distribution are very profitable and enjoy very high profiles. Bloomingdales, Tourneau, Neiman Marcus, Harvey Nichols, Harrods and Ralph Lauren are just some of the shops that attract trade "transportation." These stores are looking for high quality products that can be priced at a premium, and are not available in competitive outlets. This creates a loyal customer for the type of merchandise that can only be found in these doors.
Cars, jewelry, ready-to-wear, cosmetics, watches and home decor are just a few categories products where exclusivity is accepted as a marketing strategy and branding.
Ferrarri, Mercedes-Benz, Porsche and Jaguar are franchises in the world automobile famous. Ferrarri has created a global thirst for these sleek, super fast, super sports car prices with the horse "swagger" in the hood. There are only a handful Ferrarri authorized resellers in the United States. Production remains very small and all cars are often sold two years before they occur. This ensures that the value of vehicles used is still very high. In fact, many former Ferrarri to appreciate in value, something that can be said of the automobile brands too.
Rolex, Baume Mercier, Audemars Piguet, Patek Philippe and Chopard are a handful of very expensive watch brands that are considered valuable for their uniqueness, beauty, crafts and artisans perceived value. Sold in retail stores very few. The very fact that they are hard to find, expensive to buy and limited production means that each of these watches highly desirable.
Cosmetics houses at the upper end of the market to differentiate themselves by limiting distribution to a few select stores in any given business area. Clarins, La Prairie, Guerlain, Creme de la Mer and Estee Lauder are very selective with their products, where they are placed. This ensures that consumers recognize that, by its very lack of availability of these products are special, and therefore justify higher price points at retail.
We look at hundreds of new products every year. An offer of the few unique blend of consumer characteristics and new performance benefits that ensure success. A strategy often used to launch these products is based on exclusivity, at least initially. It's easy for yourself "knock off" and replicate the success of less expensive high-end mass-market versions of its product. If not secured this space, competitors no doubt.
Alfred Sloan, the business and organizational genius who created General Motors in the 1920s, crafted the strategy of multiple price points to offer something for everyone. Cadillac was exclusively for the rich. Buick and Oldsmobile were placed to the middle class, older customers looking for a discreet style and gentle walks. Pontiac and Chevrolet was the sport was more mass market level mark input. Sloan acknowledged that Chevy driver today as it prospered and the elderly, would move into the GM food chain.
Charles Revson adapted this strategy, distribution channel multi-level with Revlon cosmetics. Etherea brand was very exclusive commercial transport. Ultima II was for department stores very well. For a wider distribution in the general department stores and boutiques selling brand Revlon Revson. Revlon These business lines are different for each point price, packaging, product claims and performance. He offered something for every range of consumption.
There are a number of advantages of a strategy exclusivity. Normally build initial inventory is alleviated, freeing up capital for sales promotion. limited distribution means that the employer may be more attentive each gate individual carrying your items. Fewer doors may mean that the product features and benefits can be shown to individual consumers. This creates word of mouth and referrals. It minimizes the need for expensive media advertising. in-store merchandising is more manageable when the distribution is limited. The opportunity to grow organically, turtle approach, often allowing the new company to establish a more stable base from which to expand.
One type exclusivity strategy can be built for products in virtually all categories. Liquor, beer, equipment, food, the underwear, to pet products, and the list goes on, chances of success marketing ideas and make them successful using the techniques of limited distribution. This tried and true method is underutilized, but often the best way to penetrate a very difficult market.
About the Author
Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.
After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.
Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.