Consider Some High-End Brands In Our Discussions And Assignm

Consider Some High End Brands In Our Discussions And Assignments Yo

Consider some "high-end" brands. In our discussions and assignments you see the terms market strategy, and positioning strategy. Many brands, Barefoot Dreams, Apple/Mac, Starbucks, etc... These brands choose a particular position in the market. All could lower prices and possibly pick up additional segments, but they run the risk of alienating their target segment(s). They work to maintain that position in the market. In the 1980s Cadillac introduced the Cadillac Cimarron; an "affordable" Cadillac for a younger segment. Not only were sales poor, but Cadillac's target market stopped buying the more expensive Cadillacs. The target market didn't want "just anyone" to own a Cadillac! BMW created a different brand “Mini-Cooper”, so the lower priced car wouldn’t dilute the BMW brand. Can anyone think of other brands with similar experiences? In the 1980s Cadillac introduced the Cadillac Cimarron; an "affordable" Cadillac for a younger segment. Not only were sales poor, but Cadillac's target market stopped buying the more expensive Cadillacs. The target market didn't want "just anyone" to own a Cadillac! BMW created a different brand “Mini-Cooper”, so the lower priced car wouldn’t dilute the BMW brand.

Paper For Above instruction

High-end brands strategically position themselves in the marketplace to appeal to specific consumer segments, emphasizing exclusivity, quality, and a unique value proposition that justifies premium pricing. These brands often avoid broad price reductions to prevent diluting their perceived value and alienating their core clientele. For example, Apple’s brand positioning revolves around innovation and premium quality, allowing them to command higher prices and maintain a loyal customer base, even in competitive markets. Similarly, Starbucks emphasizes a luxurious coffee experience, which supports their premium pricing strategy aimed at affluent consumers. These brands deliberately shape perceptions through consistent branding, product quality, and customer experience to reinforce their position.

Historically, some brands have faced challenges when attempting to broaden their market via lower-priced models or sub-brands. Cadillac’s Cimarron in the 1980s serves as a notable example where introducing an "affordable" vehicle aimed at a younger demographic ultimately failed. The core luxury clientele grew disenchanted, perceiving the brand as diluted, leading to a decline in sales of their premium models. Similarly, BMW created the Mini-Cooper to attract a lower-priced segment without compromising the BMW brand image. This strategy helped preserve their premium desirability while expanding the customer base without damaging their primary brand identity.

Another example includes luxury fashion houses like Gucci or Louis Vuitton, which maintain high price points and exclusivity by limiting distribution and emphasizing craftsmanship. Attempting to create more affordable lines can risk reducing their perceived exclusiveness, which might alienate their high-end clientele. Conversely, brands like Mercedes-Benz offer both luxury models and more affordable options to balance luxury perception with broader market reach without significantly harming their brand prestige.

In terms of consumer behavior, dissociative reference groups profoundly influence purchasing decisions. These groups serve as a contrasting influence, where consumers intentionally distance themselves from certain brands to affirm their identity or status. For instance, a motorcycle enthusiast who previously owned a Honda might switch to a Harley Davidson not only due to ride quality but also to differentiate themselves from the Honda-owning group. This switch signifies a desire to dissociate from a perceived lower-status or different social group, reaffirming their affinity with the Harley Davidson community. The same concept applies across various industries, such as fashion brands, tech gadgets, or luxury items, where consumers choose brands that align with the images they wish to project or avoid.

Other examples include the shift from owning generic or mass-market brands to more exclusive or luxury counterparts, such as moving from consumer-grade Apple products to higher-end Apple models or accessories, emphasizing status and brand loyalty while distancing from lower-tier options. In the automotive sector, some consumers transition from economy brands like Ford or Toyota to luxury brands like Lexus or Audi, seeking elevated status and quality, often driven by dissociative group influences and personal branding considerations.

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