Persuading consumers to pay more for a product by introducing some kind of “premium” element into it has always been a challenging task—but it was one that big, established brands had managed with a reasonable amount of success until recent years. For example, Gillette has successfully encouraged consumers to trade up again and again by continually introducing razors with the latest and greatest shaving technology. A decade ago, the Mach 3 razor was Gillette’s premium offering for men, until the Fusion line was launched in 2006 at a 40% price increase, followed by the Fusion ProGlide in 2010 and the Fusion Proshield Flexball in 2016—to name a few of the brand’s major releases.
Finding the Sweet Spot Between Mass Market and Premium
From ice cream to razors to nail polish.
October 19, 2016