What I find interesting about this video is that it's a very entertaining description of what a brand does; it creates perceived value in a company or product. 'Perceived value' is something you usually associate with premium products and brands; the reason customers will pay more for one car / suit / pair of shoes than another. But it's not always about high-value purchases.
We've got two clients who for whom perceived value is vital. One is an organic farm, the other a bakery that specialises in wheat and gluten-free products. The situation for both businesses is the same, and very simple. To produce their products - organic duck eggs and wheat and gluten-free cakes and pies - is more expensive than producing standard chicken and duck eggs or 'normal' cakes and pies. If they want to compete with cheaper alternatives they have to give consumers a reason to buy their products. They have to create 'perceived value', because the difference between an organic egg and a standard egg is intangible. Yes, you can taste it when you eat it - but you have to buy it first. You have to believe the product is worth its premium.
So how do you do it - how do you create 'perceived value'? Well, the answer is you develop a brand that reflects the appropriate values - and then you communicate those values. For these clients, it's all about packaging. It's the packaging of the products that creates the 'perceived value'. And we know that it's working. The organic duck eggs have been exceeding their targets, despite an overall drop in organic sales in the UK. One of the retail outlets selling the organic duck eggs was happy to admit that the packaging is the difference. For the bakery the process is still on-going as we develop the packaging. But the sample packaging has been well received by some very 'premium' retail outlets in London, so we'll let you know what happens.
