Selling the category rather than selling your brand is brand-business mismanagement. Selling the category means the brand-business leadership does not know what is relevant and differentiated about its brand. Selling the category when your brand does not know what is its relevant differentiation plays into competitors’ hands.
Not even COVID-19 changed the trajectory of demographics. And, although data in The New York Times indicates that global population growth may end in 2080’s, we are currently living in a world that is getting older and younger at the same time. Demographics are a marketing reality. And, brands, such as iconic Southern fare restaurant Cracker Barrel, now face a strategic conundrum.
Something interesting is happening in brand management. Increasingly, we read about brand-businesses that are focusing on Brand Equity. It has been decades since the topic of Brand Equity was mentioned in press releases and earnings calls. Brand Equity is more than a phrase; it is an investment in enduring profitable growth of the brand-business.
Market segmentation is fundamental to marketing. Segmentation is evergreen when it comes to building and managing brands.
Recently, Ian Schrager, entrepreneur, hotelier and co-founder of famed Studio 54, decided to create hotels that are luxury but without the services and amenities. Mr. Schrager’s hotel vision is luxurious experiences that do not depend on multiple on-site staffers and niceties. His vision is a segment he calls Economy Luxury.
