The document discusses how brands can build perceptions of being "premium" and command higher prices. It introduces Millward Brown's framework that measures brand equity based on premium (willingness to pay more), potential (future purchase intent), and power (purchase preference). Successful premium brands are authentic, high-quality, confident, and deliver functional benefits through innovation and design. Communications should focus on product features rather than people using the product, and maintain consistency with emotional messaging and visual brand cues to reinforce perceptions of premium quality. Developing the right premium positioning allows brands to grow in value.

1. What price Premium?
w o r t h a n d v a l u e g r o w t h

2. What makes a brand valuable?
Successful brands build associations that
deliver these commercial benefits
I N C R E A S I N G
T H E L I K E L I H O O D
that a consumer
will buy
I N C R E A S I N G
H O W M U C H
consumers
will pay€

3. Millward Brown’s new equity framework
Three key measures of brand equity that align to business outcomes
Premium
Pre-disposition to pay more for
a brand
=
PRICE INDEX
Potential
Pre-disposition to keep buying
the brand in the future
=
VALUE SHARE GROWTH
Pre-disposition to choose one brand
over others
=
VOLUME SHARE
Power

4. Premium versus ‘Luxury’
• Premium can be defined in many
ways. It is important to make a
distinction between Premium and
Luxury
• ‘Premium’ can be the ability to
command a price premium in an
otherwise mass market product
category. Luxury is about scarcity and
exclusivity.
• A few brands tap into status and ‘luxury’
but the majority of brands are seeking to
command a premium (be ‘worth paying
more for’)

5. 9.4
2.3
5.6
0.6
16.5
8.0
0.1
-8.0
Worth Paying More
For
Super Premium Low Price but Good
Value
Poor Value
Current Brand Strength Potential to Grow
‘Premium’ makes for strong brands
Brands that are ‘premium’ are more likely to be grow
Premium Brands Examples
(from BRANDZ database )
Source : BRANDZ 2010‐2011; 60,000+ brands in over 200 categories
Worth paying morr, Super Premium, Good Value, Poor Value are metrics from Millward Brown’s ValueD framework

6. Close to 6 in 10 strong brands are perceived to
deliver a Premium
6
48%
60%
34%
36%
36%
Distribution of Strong Brands on Premium
* STRONG BRANDS : Olympic, Classic, Specialist, Little Tigers; Above Average Voltage
5%
4%
5%
4%
6%
11%
37%
32%
38%
34%
39%
52%
29%
42%
31%
34%
21%
13%
29%
22%
25%
29%
34%
24%
GLOBAL
South America
North America
Europe
Asia
Africa
Poor Value Good Value Worth Paying More Super Premium
58%

7. Authentic –Knows its "true north" and is committed to this ideal
Quality – Is consistent and shows obsessive attention to detail
Confident – Projects a feeling of intrinsic worth
The DNA of a Premium brand
7 Source: What Makes Premium brands Premium? David Murphy, Lambesis
GENUINE
DESIRABLE
EXCLUSIVE* Mysterious – Draws us in deeper and reveals more to us over time
Rare – A discerning choice, intriguing because it is uncommon
Sensual – Arouses our senses and feels indulgent. It is an
experience. We want to touch it; we enjoy looking at it
* More True of Luxury brands

8. How can a brand deliver ‘Premiumness’?
Brands deliver ‘Premiumness’ (worth paying more for) via a number of
means – but often the starting point is product innovation and design
Use product
innovation and
design to build
perceptions of
premiumness
Premiumness
Innovation Association Communication
Use retail, events,
celebrities and
media to create
positive premium
perceptions
Use cues symbolic
of a premium brand
in communications

9. Delivering ‘Premiumness’ via Communication
How can we leverage communication to deliver cues of premiumness?
Use product
innovation and
design to build
perceptions of
premiumness
Premiumness
Innovation Association Communication
Use retails, events,
celebrities and
media to create
positive premium
perceptions
Use cues symbolic
of a premium brand
in communications

10. Building Premium cues : Messaging
10
EMOTIONAL CONNECT is vital
but showcasing functional difference is
also important for durables and technology
products
Samsung ‘incredible journey’


11. Building Premium cues : Product
11
Focus on FEATURES and
INNOVATION rather than people
USING the product
WHAT IT HAS , HOW IT WORKS
fererro rocher ‘chef’

* INGREDIENTS and FORMULATION
for packaged goods
EMOTIONAL CONNECT is vital

12. Building Premium cues : Executional Cues
12
Focus on FEATURES and INNOVATION
rather than people USING the product
Bournville ‘bird’

EMOTIONAL CONNECT is vital
HUMOUR (while certainly
entertaining) can actually detract
from cues of premiumness


13. Building Premium cues : Executional Cues
13
Focus on FEATURES and INNOVATION
rather than people USING the product
EMOTIONAL CONNECT is vital
Simply having a CELEBRITY in
the ad doesn’t necessarily add to
a premium image
a celebrity does need to be chosen very
carefully to build the right associations

HUMOUR (while certainly entertaining) can
actually detract from cues of premiumness
dr. dre and beats audio
dr. dre and 24 other endorsements

14. Building Premium cues : Brand Cues
14
Focus on FEATURES and INNOVATION
rather than people USING the product
EMOTIONAL CONNECT is vital
Simply having a CELEBRITY in the ad
doesn’t necessarily add to a premium image

HUMOUR (while certainly entertaining) can
actually detract from cues of premiumness
Once you have developed
Premium cues….STICK WITH
THEM


15. Ways to build Premium cues
15
Focus on FEATURES and INNOVATION rather than people USING the
product

EMOTIONAL CONNECT is vital
Simply having a CELEBRITY in the ad doesn’t necessarily add to a
premium image

HUMOUR (while certainly entertaining) can actually detract from cues of
premiumness

Once you have developed Premium cues….STICK WITH THEM


16. What price Premium?
w o r t h a n d v a l u e g r o w t h
For further information please contact:
SHIV MOULEE
Chief Solutions Officer
Africa, Middle East & Asia Pacific
Millward Brown
Cell +6591299487
Email: Shiv.Moulee@millwardbrown.com