The premium market is exactly that – PREMIUM – that puts the quality of the product or service ahead of anything else. Compared to other markets, the premium market consists of individuals, customers, or audiences that are generally perceived to have an elevated status, unique quality, or purchase power.
All industries that have been successfully targeted the premium market always have things in common that circulate around the combination of supreme quality, value, purpose, and exceptional experience. As the bridge between the industry and the premium market, it is surprising to say that there are not many industries that dare enough to enter the premium market due to its false connotation.
We often get asked if a higher price is the sole indicator to enter the premium market or the brand itself has to be premium first otherwise won't be perceived as one.
Although some are true, those are the common perception associated with the premium market that shouldn't be treated as an inevitable blockage that would have prevented you from introducing your brand.
Based on our experience with this unique market, factors that make them successful in the premium market are:
They promote certain benefit claims
They offer product superiority while providing evidence to support those claims
They demonstrate how their product is superior to others
They educate consumers regarding their brand that stands as the standard for comparison with other brands
Customers within the premium market perceive products or services differently. Industries that are well-known inside the premium market position their products or services in a way that makes customers feel wanted, smart, desired, even envied by others.
If a product or service can help them experience these feelings, they will value it more—and pay more for it.
Moreover, the one exceptional area that truly separates the premium market is how benefits are being perceived. Many companies, and even individual consultants, are struggling to position their brands that match the existing need and are sought after by customers in the premium market. Businesses that focus on delivering specific benefits such as functional, technical, and emotional have been proven to be able to strongly thrive and build long-lasting relationships.