Is price the prerequisite of brand equity?

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Information about Is price the prerequisite of brand equity?
Business & Mgmt

Published on May 22, 2009

Author: fabio_annovazzi

Source: slideshare.net

Description

After years of exceptional growth, the luxury sector is living one of its worse crisis. Is it time to push the panic button and try to encourage sales by retouching prices downwards?

No, as it would be very difficult to bring prices back up again.

What must be done, however is to think in terms of the customer’s share of wallet. The wallet has gotten smaller, so brands should not be afraid to offer more affordable products in our core categories.

These products should encapsulate all the passion, the glamour and the mystery of the brand.

Traditionally, when high-street jewelers offer lower priced items, they offer “non jewelry” products - key chains, pens, perfumes, ties - not products that “carry” the full meaning and power of our brands.

Jewelers should be ready to bring jewels to new levels of affordability.

Is price the prerequisite of brand equity?

Do not push it

The ultimate commodity?

No gold, lots of inspiration

Luxury = Exclusivity = High price

Luxury = Awareness of the brand = Prestige

Not meant for designer handbags

A (cheap) way to buy a piece of a luxury brand, and a great way to build Awareness

Awareness is NOT = Exclusivity

Awareness and Affordability can backfire

Luxury = Standing out, not Fitting in

High price = High Status = Luxury

Which one will be the symbol of ultimate coolness in 2015?

Is the costliest also the coolest?

Luxury is not the opposite of Poverty. It is the opposite of Vulgarity.

Good for buzz, only

Bling is out. Luxury can no more be = Excess

High price = High Quality = Luxury

Some brands were built on compelling affordability

5£ bag = instant icon?

Buy a diamond on the net?

Low prices & “Luxury” buying experience

Low prices & “Carrefour” buying experience

A very different buying experience

The third most respected brand in Germany

Every year, more fakes

When a woman wants to decorate herself

Crisis increase the speed of change

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