Commodity: turning it into a luxury item

1 replies
That's the task given to me.

The commodity is one of the most traded commodities in the world.

Since it's a consumer item, not a biz to biz item, it's discretionary and yet
has the opportunity to cross over into the luxury market.

Branding and company identity becomes a very important part
of the strategy.

There are 2 types of branding done.

Product or service

Product and service is where you
talk about features, benefits and
what's different. about what you have.

Aspiration is where you stand for something what your market also shares.
It's something that they identify themselves as being or aspire to.

That something also ties into the way business is conducted.

Self identity is the main driver of people.

If people see themselves as a smoker they will keep on smoking.

If the person see themselves as a good mother then they well take good care of their kids.

If the person sees themselves as a civic servant, then he will keep contributing to the community.

If you ask what a person does, then the occupation or career named is the self identity.

Getting back to aspiration branding,
Apple and Nike are 2 examples.

Think Different and Just Do It

Those that identify with Think Different feel the same way to the point of having a superiority complex.
It could even be said that "I own a Apple, therefore I am superior".

Those that identify with Just Do It
are the action takers in life or
aspire to be.

So by creating a short tag line after the company name is like a beacon drawing people who think the same.

Next step for the brand making process in a luxury market is creating the story.

The story goes into great detail on what goes into making the final product
The story about where the raw product is sourced, what selection criteria is used,
what is the industry standard,
the human interest story about the people who produce the raw product,
what conditions make for the best finished product.

All this creat's a gaping void between this product than the rest...
even if the others are the same.

It's just that nobody is telling the story what it takes to make the finished product.
And beyond that it's the reason why it's so good in the customers minds without saying it directly.

If at a later stage a competitor comes out with a similar story,
then the consumers will think they are copycats therefore less desirable.

It 's a leadership ploy.

This is a very advanced strategy for a company that has global expansion plans and for long term planning.

Something not talked around here due to most are scrambling to get the next dollar in the door.

Doctor E. Vile
#commodity #item #luxury #turning
  • Profile picture of the author DaniMc
    Commoditization - every industry is always facing the pressure of commoditization. Some people fight it, some people love it.

    I like your point about branding and its importance.

    It makes me think that perhaps the very best way to brand effectively would be to either fight hard against becoming a commodity, or push hard to help commoditize.

    The people at the status quo who are just riding the trend and fighting for sales blend into an invisible group - all looking, acting, bitching, and feeling the same. The same experience for everyone.

    To have a strong brand is to take an extreme approach to the process of commoditization!

    Zappo's has further commoditized shoes and you can get them easily and quickly for cheap.

    Gucci went the other direction and charges more than $1,000 per pair for nice men's shoes.

    New Balance - makes excellent shoes - but they mostly just blend in.
    Be kind, for everyone you meet is fighting a hard battle.
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