Pricing power allows a brand to raise prices without losing customers, effectively fighting the economic principle that demand falls as price rises. This is achieved by creating a brand perception so strong that consumers believe there is no viable substitute.
For a brand with high uniqueness and meaningfulness, low awareness is an opportunity. It signifies that the brand resonates strongly with those who know it, and the path to growth lies in expanding reach rather than fixing a broken product or message. This represents significant "headroom."
When building a brand, differentiate between long-term and short-term elements. The core purpose and emotional connection should be enduring. In contrast, functional and experiential benefits must be constantly refreshed to remain relevant as markets and consumer tastes evolve.
While intended to drive sales, frequent discounting damages brand perception by training consumers to see the brand as low-value. This creates a "deselection barrier" where they won't consider it at full price, eroding long-term brand equity for short-term gains.
Framing a product around "life moments" (e.g., graduation, first job) shifts the focus from functional utility to emotional significance. Coach isn't in the handbag business; it's in the "belonging business." Its real competitors are other products that provide similar affirmation.
To connect with Gen Z, Coach shifted its brand positioning from simply being an affordable luxury good to being a tool for self-expression. This move addresses a core tension for this generation: the desire to express their true selves while navigating the pressures of constant social media visibility.
For luxury brands, raising prices is a strategic tool to enhance brand perception. Unlike mass-market goods where high prices deter buyers, in luxury, price hikes increase desirability and signal exclusivity. This reinforces the brand's elite status and makes it more coveted.
Gen Z consumers curate different personas across various social channels (e.g., TikTok vs. LinkedIn), making brand positioning exponentially more complex. A brand's purpose must serve as a connective tissue, agile enough to be tweaked for different channel-specific identities while maintaining a core consistency.