Justifying a Premium Price

The Problem: A Brand in a low interest category struggled with greatly reduced budgets within its own corporation in a cut throat business environment. Competitors were paying retailers to gain distribution for their newer items with lower price points, compelling ads, and sensational promotional offers.

Our Solution: We adopted a value-added strategy for the Brand to justify its higher price point, then supported our position through a series of effective collaborations with other high value Brands outside the Company. Included in our strategy were consumer offers like: co-Branded print ads and coupon drops and on-pack premiums which screamed "high value" and instant gratification.

The Result: A meaningful perception was created in the minds of consumers as a result of our innovative strategy. The Brand was set apart from the pack. New users were captured while we succeeded in building loyalty among the Brand's heaviest users. Most notable was the immediate response in sales growth of 12% on the most profitable segment of the business.