Where are the premium brands?
Many brand manufacturers strive to position their brands as premium in an attempt to achieve higher differentiation, loyalty and margins. A simple price-based analysis reveals that true premium brands are rare. Indexing brands’ prices to their PL peers reveals that only 13% of all brands command prices that are three times higher.
The majority of brands sells at a premium up to twice the PL price and almost 1 in 5 brands sells below their PL counterpart. There are also some interesting patterns regarding brand size: Large brands commanding more than 20% market share are less likely to sell at extreme premia, but also less likely to sell at a discount relative to PL.
