New Premium Brands Soar in 2011 Despite Economic Downturn
Recently, an Innova Market Insights scan of newly launched products showed that 14.2% of new products tracked during the first quarter of 2011 had premium brand positioning. When compared to 2010 at 10.5%, up from 8.4% in 2008—the beginning of our economic woes, these statistics show that brands are not willing to shy away from premium positioning in hard economic times.
Even more interesting, is that these premium brand products showed resilience in the marketplace. Lu Ann Williams, Head of Research at Innova Market Insights, states that “recent product launch activity reveals that US manufacturers are not giving up on premium products, despite the uncertain recovery. Instead, they are aiming to meet the demand for added-value encompassing better quality and offering consumers a momentary escape in stressful times.”
As an agency where “premium brands thrive,” Warren Douglas has seen the same acceptance among our own client roster, which are not new to the marketplace, but established brands. During the economic downturn, there has been a rise in requests for coupons, deals, etc. However, the majority of clients still see their customers’ loyalty to their superior, or premium, products.
We all know people can have a marketing hunch, but this recent study proves that there is data to back up that marketing belief that premium brands always sell no matter the economy. Makes you think your brand could stand to make sure it’s really seen as premium, doesn’t it?
Post based on a press release from PR Newswire, 6/9/2011.