I often wonder if a brand has presence in the top end (premium segment) and bottom end (popular segment), does that add or take away from brand equity. Well, what I am saying is that does it make the brand more desirable to the popular segment consumer who associates the brand with premiumness or does it alienate a premium end consumer owing to its popularity at the bottom end?!
Any answers?
Recently I read two articles, examples that can be stated to prove that either of the points above is true.
The first one is on Peter England brand of apparel (under AVBirla flagship). PE has launched the Peter England Elite brand of apparel. While Peter England is targeted at t he popular segment (Rs.300-500/-), Elite, would be targeted at the more premium consumer (upto ~Rs.1200/-). The Madura Group definitely are of the opinion that the Peter England consumer, on getting prosperous, will hopefully upgrade to the Elite brand
On the other hand, Oberoi splits from its venture with Hilton hotels. Why ? The reason quoted is that Hilton has recently signed a JV with DLF which will help it launch mid-range hotels viz Garden Inn. This in the opinion of the Oberois will dilute the equity that Hilton Trident Hotel now holds among its super premium Business Class consumers.
Both these arguments seem right as far as current consumers of the brand are concerned. While PE may not lose its current consumers to other premium labels, Hilton will not alienate its current class of customers.
Any thoughts?
