Marketing in famous brands. Part 1

September 27, 2010

Smart marketing or as famous brands by trial and error have found the real reason of goods' purchase and were able to convince their consumers to buy even more. Reasons of purchase are a big advertising secret. And in spite of the fact that analysis of motives and constant search of very inside, following which people prefer one or another brand, are made by advertisers and agencies, to find the right strategy they manage strictly experimentally.

At the beginning of 1980th Timberland Company has experienced hard times. It has produced high-quality pumps that had the price that was lower than the price for the same item produced by leader of the branch, Topsiders Company. It would seem that a good product and low price should work on them; however the things were going bad. Then in Timberland Company was made a simple decision: they have raised their prices so much that they became higher than prices for product produced by Topsiders Company.

Sales have grown considerably. This proves the trustworthiness of David Ogilvy statement: "The higher the price is, the more wanted the product becomes for a Buyer".

Parliament

At his time the same method was used by tobacco brand Parliament. Initially, its prices were lower than prices of the main competitor -Marlboro and sales of Parliament brand were quite small as they have met a lot of competitors from low price category in which nobody has valued the peculiarity of their exclusive filter. Then Parliament brand has left the market for a year and than has been launched again with a higher price as compared to Marlboro, immediately getting into the "Premium" niche where filter other than others has fitted perfectly.