In the premium segment of the market, space telegram thailand viral is limited. The small number of companies striving to produce high-quality products leads to the fact that competition here is assessed not by quantity, but by the level of quality of the goods offered.
Premium segment of the market
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In this market segment, product pricing is based on their tangible properties and added value, which can determine up to 95% of their final price. This emphasizes that the high cost of products is largely due to their intangible characteristics.
It is important to realize that the uniqueness and high quality of products, their non-standard design and special functions play a key role in forming an emotional connection between consumers and the brand. These factors distinguish a premium product and often become the reason for the company's preference.
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Pros and cons of working in the premium segment
Benefits of doing business in the premium segment:
the ability to make a large profit due to a high markup;
Due to the limited target audience, advertising campaigns are more effective;
it is easier to establish strong connections with consumers, which helps to form a permanent customer base;
defining and maintaining the desired brand image and positioning is made easier by the specificity of the segment;
There is less competition in the premium niche.
Pros and cons of working in the premium segment
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Challenges in interacting with premium segment clients:
the presence of a staff of highly qualified employees with an appropriate level of pay;
high demands on the quality of goods and services from buyers;
Starting a business in the premium segment requires significant investment;
the risk of losing a significant portion of income due to unsuccessful company branding;
It is important to maintain a positive brand image, promptly resolve emerging issues and be flexible in communicating with customers;
low sales volume and turnover of goods compared to everyday goods.