Stefan Drew - The Marketing Magician

FE, Education & Business Marketing: Quick, Effective, Low Cost Marketing

Stefan Drew - The Marketing Magician
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Tag: brands

Maximising Business Income: Selling Expensive Top End Products or Brands

Whatever product or service you sell you could probably charge mush more for it .. perhaps 2-3 times as much …… or even 100 times much!

 

I know it sounds illogical when there is a worldwide recession but there are still plenty of people with high disposable incomes who will willingly pay much more for simple things if only you give them the chance.

 

The photo on this page is of pot grown plants that has been pruned in the Japanese style.  This is currently very popular.

 

In my back garden I have three of these plants in pots.  They are only 8 inches high and cost me £2.99 each.  In 5-6 years they will be a tall as the ones in the photo and if I prune them correctly 2-3 times each year they will look very similar.  As someone that once owned a plant nursery, and made my living out of growing plants, I look forward to doing this myself even though it will take a few years.

 

Some people however want to buy the finished article and plant in in their perfect garden today.  They can do that.  All it takes it to shell out the £888.99 the garden centre is asking for each of these plants.  Even in a recession they will sell quite a few as a lot of people don’t want to do what i’m looking forward to doing .. growing my own.  they want instant gratification and will pay for the privilege; even when it costs £886.00 more per plant.

 

Now you might think that waiting 5-6 years to produce a product is a long time to wait when you want income this week. 

 

I agree.

 

In the above case the product had been altered over time and we don’t all have time for this.  So how about repacking an existing product and selling it for more. Every day millions of repackaged products and services are sold for more money than the standard product.  Often the only difference is the branding or packaging .. and that requires a branding strategy.  In supermarkets you’ll see top price products that command high prices compared with own brand products and the only difference will be the packaging.  

 

Years ago I worked in the food industry and we produced the same product day after day.  Every day or so we’d change the label and package the product for another supermarket but only rarely did we change the ingredients in the product.  In fact things like butter and cream are so closely regulated there is little you can really do to change them.  Butter for example can be unsalted ot have salt added .. but you can’t do anything else to it .. except add a fancy wrapper!

 

So which of your products or services can you repackage and change more for .. there will be a way to add value via repackaging to any product you care to name.  Your job is to find it and pocket the profit.

 

 


Brand disasters: Rover cars

Why do some brands nose dive?  When branding really fails.

 

Rover had been making cars since 1904 and had made a mark.  But in 1994 BMW bought Rover and many argue this was the beggining of the end.  BMW continued to innovate with technicaly good designs but slowly people decided it was dated and too retro for the late 90s.  

 

What was the answer for the Rover brand?

Despite winning many awards Rover’s sales slipped and the brand was described in some papers as a “living symbol of the UK motor industry’s decline”.  

 

By 2000 BMW had had enough and decided to break the company up.  The £2million a day losses might have helped the decision.

 

Brand lessons for businesses

 

Sometimes you have to focus on the brand and not the product.  The engineering from BMW was good .. it was the perception that was bad.

 

If the name doesn’t convey the right message then dump it in favour of a positive name and image.  “Triumph” might have worked better than a name that is sometimes given to a dog!

 

What are you doing to use your brand to succeed rather than fail?

Think about both your business brand and your personal brand.