Traditionally we think of premium in certain ways. It has always had a "bling" aspect for example. Gold, diamonds and big branding an obvious way of communicating premium in the sense of, "I have money to spend -- and I want it to show!" In the past year or so there has been a strong focus on premium "bling" inspired or stolen in part from hip hop culture. Examples abound, such as Absolut's trend/anti-trend gold bottle which was shown in adverts next to a pot of very OTT jewellery that would have suited Mr T to the ground.
Then there is the more established "iconic & understated" premium, communicated through clean, iconic design which is confidently silent. This says, "We are superior, we know it and you know it. There's no need to shout." These designs are clean, but far from simple. To give the premium feel all forms, materials and graphics are well considered with great attention to detail.
Here examples would be the Apple iPod (in matt back of course) and Absolut again (to show that it can play both sides of the divide) with its clear bottle and just about any Aston Martin that you can afford to look at.
Another long-established iteration of premium has been "sophisticated authenticity" which depends on heritage, provenance and quality. What before would have been seen as simple and old-fashioned is increasingly perceived as sophisticated premium. The search for authentic and "real" products is specifically strong where SiebertHead works a great deal in Western Europe. The "less is more" approach is not as appreciated in many other markets.
Here we have some excellent examples from the past year or so such as the new hugely expensive Leica M8, which looks like the Cartier Bresson land camera, and the evergreen Dom Perignon brand, Omega watches first to be worn on the moon and also the watch of choice for James Bond, and Dunhill cigarette packaging.
Then we find a wholly new form of premium that of "social responsible".
This closely follows the trend of authenticity and is the increasing demand for brands that are socially responsible. Consumers are prepared to pay a premium if the feel they're "helping" and can show others that they care. Many consumers want to communicate their awareness to peers and brands are realising the importance of clearly showing their ethical positioning through design. Here we are very much in the territory of Innocent drinks (currently growing in a slow market by the way just to illustrate how many people are buying in to this).
While there will always be the "blingers", people who want to flaunt their wealth, we are now entering a period where a growing number are wanting to flaunt their "caring" nature. Thus the Toyota Prius driven by A list celebs, and the new TV ad for the tiny hatchback in the drives of Beverly Hills mansions, and now even Porsche are bringing to market a cross-platform version of their gas guzzling four wheel drive a move that will help to save the planet (a teeny weeny bit).
Then there is, and always will be, premium defined by "exclusivity". People are prepared to pay a premium for products and services that make them feel selected and exclusive.
This can be articulated through membership, limited and numbered editions, personalised products or in terms of its affordability to only a selected few such as Porsche cars and Scotch malts like Glenlivet.
At the moment there is a growing trend for "members only" clubs, such as the brand new Mayfair "Home of Alfred Dunhill" created by rpa:vision, the luxury interior designers behind brands like Thomas Pink. The Dunhill concept is in the same Georgian mansion (former home of the Duke of Westminster) as three floors of Dunhill retail. Here, just like his lordship, you can smoke the finest Havana cigars (chosen from a walk-in humidor) and have a valet park your car and a sommelier advise on your wine. Unlike his lordship you can also buy a pair of socks or some new underpants.
Nokia did well with the exclusivity concept with its ultra-premium brand Vertu. When buying a Vertu phone in gold or platinum you don't just buy a mobile phone, you buy into the "Vertu world" -- "for individuals who only accept the best" -- I expect there might be more than a few Vertu phones at Dunhill's Mayfair venture. Costing thousands, they connect the owner to a concierge service worldwide that will fix your little problems, like theatre tickets, plane tickets, dinner reservations, flowers for the wife or the secretary.
We all aspire to be an individual rather than a faceless person in a crowd so "premium individuality" is something that more and more people are literally buying into.
The aspiration to be different creates a demand for products and brands that surprise.
Consumers are willing to pay a premium for individuality and purchase products that help them stand out from the crowd through designs that are different from the norm or even individually customized.
We see for example designs that traditionally haven't been associated with the category they're in, and an increasing hype around limited editions and customized products and services designed to fit your specific needs. For example, the "MINIstry of Ownership" an exclusive area on Mini's website, which only can be accessed by Mini owners. "It's there to help you get the most from your Mini - from exclusive deals, competitions and fun, to route planning..." Through this vital "I belong and you don't" mechanism, Mini manages to maintain a relationship with customers something other brands can only envy.
Lastly, we have premium defined by "emotional experience". Premium and luxury are increasingly expressed through experiences rather than possessions. It's important to make an emotional connection with consumers through the creation of a journey where the brand is communicated successfully at all touch points.
The more premium the brands, the more important the total experience becomes. Nissan's premium brand Infiniti for example talks about emotions and invigorating the senses. And the difference between Sony and Sony's super-premium brand Qualia is also a good example of this trend. As the more premium alternative, Qualia's communication focuses on the experience of the senses.
The intro on Qualia's website doesn't mention the products or make reference to the category they're in. The focus is on the unique experience. Qualia is never sold online as they then wouldn't be able to control the experience. Qualia also has their own branded scent in-store.
Some of these trends, of course, overlap as brands tap into a combination of these trends. Whyte & Mackay for example combines several of the premium cues. Whilst the brand's traditional look shows authenticity, the more premium variants introduce gold, following the classic way of communicating premium and we also see a simplification of the pack, moving to an iconic, unique and confident design for the most premium variant.
As we move towards the more premium Calvin Klein fragrances, the logotype becomes more subtle and forms more delicate and stylish. The most premium fragrance for men follows the rules of iconic simplicity and the premium fragrance for women is original, expressing individuality. But with Calvin Klein of course it's not only about the fragrance or design, it's about the Calvin Klein experience. How else would Calvin Klein be able to sell their ck IN2U fragrance in the virtual world of Second Life?
So, what can marketing directors learn from this? Obviously, a key understanding will be that "Premium" can mean different things to different people. Which one of these should all marketers take note of and think about incorporating into their own brand? Well probably the individuality and the social responsibility angles are the most pressing to take on board at this moment. And let's face it, not many people have missed the recent news stories of Marks and Spencer taking the lead in a ban on plastic bags -- they beat the government to it and made themselves even more of a premium brand by doing so. A step like this fitted the brand so perfectly premium goods and premium social responsibility all wrapped into one tick all boxes. M&S took on board that its customers are worried about the planet and if their product didn't reflect that they would be taking a very large gun and pointing it at their foot, or maybe even both feet.