Packaging Digest published an article Gil Horsky wrote for them. In this article Horsky discusses how to premiumize a brand’s packaging and provides 3 essential steps for successfully doing that
Below is a snippet from Packaging Digest:
Global consumer branded products are facing headwinds in developed markets with rising commodity costs and retail chains becoming more focused on private label. While in developing markets, rising disposable income is accelerating the emergence of the middle class, people who expect their trusted brands to deliver experiences that are more special than before.
These macro-trends should serve as a catalyst for mainstream global brands to premiumize their portfolio. The term premiumization was coined sometime in the 1990s to open a new door in the alcohol and beverage market, redefine top-shelf offerings and provide a taste of the higher life for consumers. It is in essence the process of creating a bridge between the desirability of the luxury world and the function and necessity of the mass market.
But as more brands look to premiumize their offerings, they discover that stretching a mainstream brand upwards in an authentic and sustainable way is proving to be more challenging than expected.
Finding the convergence between these two markets demands the right kind of magic from brand owners, marketers and designers. Here are three key tips to enable global mainstream brands to premiumize their portfolio:
1. Frame of reference
When premiumizing a brand, one of the key strategic aspects to define is the frame of reference the brand wants to play in. This can be different from where it is positioned today, and the decision will impact the overall product and pack brief. A great example was when the Cadbury chocolate brand decided to enter the premium gifting space in Asia. Until then, the frame of reference for the Cadbury brand, including its gifting offerings, was limited to the confectionary category. But with the entry into premium gifting, it became clear that the frame of reference should be much broader, with extended gifting categories.
This led to the development of Cadbury Glow, which borrowed into confectionary new visual design cues from broader gifting categories, such as liquor, perfume and jewelry. The Glow premium pack is tall and slim and, when closed, looks more like a champagne case than a chocolate box.
When the outer pack is revealed, the inner pack resembles a treasure or jewelry chest that glows from the inside out.
This extended frame of reference, translating into a premiumized proposition, enabled Cadbury Glow to gain sales from new broader gifting categories, that previously the brand didn’t have access to.
You can read the full article on the Packaging Digest website