Tuesday, September 20, 2011

Don't Marry Name and Price

A great brand name is an essential quality if that brand is going to work its way into the minds of consumers. A few helpers in the process are names that are unique, memorable and easy to pronounce. It should fit the characteristics the marketer desires to declare.

However, it's a good idea that the brand name doesn't include the price. While price is an important and says a lot about it, no successful brand is defined by a number.

I recently read that the popular Northeastern grocery-chain Wegman's will reprice a few of their popular $6 takeout meals to $8. While these meals are a personal favorite of yours truly, they've unwisely been marketed under the name "Wegman's $6 meals." However, with the rising prices for food and their ingredients, Wegman's cannot downsize the meals any more just to keep their signature price. The prices have changed.

That happens - just ask your parents or grandparents. Prices are going fluctuate. But the unique attributes of a brand should not. Wegman's chose to differentiate the brand through a low price; however, that results in much higher price sensitivity by consumers.

Wegman's should identify for what other reasons people will, should, or already do care about these meals. Give people another reason to enjoy them other than the price. Step one is taking it out of the name.

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