“Your premium brand had better be delivering something special, or it’s not going to get the business.”
I particularly like this comment by Buffett because it really gets to the heart of a problem with many companies.
The problem is they throw around the word "brand," like it has something to do with a marketing strategy or getting the message out there. While this has its place, it is by no means the primary reason a brand becomes powerful.
When it especially comes to your premium products or services, as Buffett says, “Your premium brand had better be delivering something special," and he's right.
The key to a brand, even if it's the entire business we're talking about, is that it does serve up something that is special in the hearts and minds of consumers or other businesses. When you're talking about something that will be considered premium to anybody, there must be something above and beyond its competitors that will draw people to it ... and keep them coming back for more.
Another important part of managing premium products or services is they must not only be premium in what they are alone, but the entire process of presentation and delivery must be premium as well; from its packaging to its consumption by the customer.
Do this and it'll be rare that you'll lose your customer to a competitor. The fact that you do it right all but ensures that they'll keep on coming back for more.
The other thing is that no matter what market we serve, there should always be some type of premium offering we give to our customers. When I say premium here, I mean in the context of the demographic we serve, not something that would be completely out of the realistic price range someone can afford. Everybody likes to receive some type of pampering product of service that makes them feel special. In the end that's what people are buying when they get something of higher quality.
Give them the goods and they'll give you their business.
Other Buffett Resources:
Warren Buffett: The trouble with being a legend
Warren Buffett: 'I told you so'
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