Premium Segment Research Articles

The U.S. Alkaline AA Battery Market: A Competitive Profile

This paper follows the footsteps of eleven studies that have tried to analyze the competitive profile of U.S. consumer markets: Men’s Shaving Gel, Beer, Shampoo, Shredded/Grated Cheese, Refrigerated Orange Juice, Men’s Razor-Blades, Women’s Razor-Blades, Toothpaste, Canned Soup, Coffee, and Potato Chips.Porter associates high market share with cost leadership strategy which is based on the idea of competing on a price that is lower than that of the competition. However, customer-perceived quality—not low cost—should be the underpinning of competitive strategy, because it is far more vital to long-term competitive position and profitability than any other factor. So, a superior alternative is to offer better quality vs. the competition.In most consumer markets a business seeking market share leadership should try to serve the middle class by competing in the mid-price segment; and offering quality better than that of the competition: at a price somewhat higher to signify an image of quality, and to ensure that the strategy is both profitable and sustainable in the long run. Quality, however, is a complex concept consumers generally find difficult to understand. So, they often use relative price, and a brand’s reputation, as a symbol of quality.For 2008 we chose the Alkaline AA Battery because its sales were $667 million vs. $283 million for AAA. By the same token, we have focused our analysis on AA 4-pack because it was the most popular size with 2008 sales of $190 million.In 2008 the AA 4-pack Alkaline Battery market was quite competitive with 30 brands with sales over $25,000.Using Hierarchical Cluster Analysis, we tested two hypotheses: (1) That the market leader is likely to compete in the mid-price segment, and that (2) Its unit price is likely to be higher than that of the nearest competition.For 2008 the results supported Hypothesis I and II. Both the market leader Energizer, and the runner-up Duracell, were members of the mid-price segment. Moreover, the unit price of Energizer was higher than that for Duracell, as we have hypothesized.For 2007 the results did not support Hypothesis I, because Energizer found it to be a member of the premium segment, even though Duracell maintained its association with the mid-price segment. We found that relative price was a strategic variable, as hypothesized.We also discovered four strategic groups in the industry.

The Role of Standardisation Initiatives in Local Industrial Development: The Chinese Ginseng Experience

ABSTRACT China's emergence in international standardisation has led scholars to debates over its intensifying techno-nationalism. This paper examines ginseng standardization using interviews and archives. Standardisation on the ginseng production started in low-income regions, which later changed into the techno-nationalism agenda over the product origin. Upon international standardisation, the sales volume and unit price in ginseng production increased. Yet the effects occurred in the domestic market and the market leader countries moved to the premium segment by product differentiation. The ginseng standard initiative did not achieve the commercial dominance in the global market but was a local development policy tool.

Coevolution of a premium segment and product innovation: a case study of the Japanese rice cooker market

PurposeThis study aims to provide a comprehensive explanation of the linkage between premium segments and product innovation. While previous literature confirms that product innovation triggers premium segment emergence, and vice versa, there is no satisfactory explanation regarding the underlying mechanisms that drive the mutual shaping of premium segments and product innovation. This paper attempts to address this gap in literature.Design/methodology/approachThis study employs a cognitive model of technology trajectories and empirically examines the Japanese rice cooker market using a mixed-methods approach. The methods used consist of content analyses of newspaper articles and press releases and case analyses of manufacturers' new product development.FindingsContent analyses show the emergence of a premium segment within the Japanese rice cooker market as well as a simultaneous change in technology trajectories. Case analyses subsequently reveal the mechanisms that link the premium segment emergence and technology trajectory changes. The analyses also explore this linkage in detail; market actors' technological frames and interpretation processes mediate the mutual shaping of the premium segment and product innovations.Originality/valueThis study presents quantitative evidence indicating the emergence of a premium segment and changes in technology trajectories. It provides a qualitative explanation for the linkage between these two phenomena, which may serve as a viable foundation for future research in premium strategy.

Promene premijum segmenta na globalnom auto tržištu

Automotive industry has faced frequent and radical changes of business environment during 21st century. Great recession, disruptive innovations, rise of emerging markets competitors, and Covid-19 pandemic have resulted in new customer preferences and constrains in managing supply chain. These factors significantly have affected business operations in automotive premium segment. Traditional competencies are not sufficient to gain and sustain competitive advantage in the market segment. The paper analyzes: trends in premium automotive segments and restructuring of business models, competitive and marketing strategies in the market segment. Technological innovations and digitalization have changed customer perception of premium vehicles. To sustain market position in unpredictable business environment and deal with these factors the competitors have to be agile and flexible. Automotive companies in premium segment have to deal with increasingly complex products, to achieve business efficiency. At the same time the companies have to differentiate their products in the new way, aiming to compete traditional competitors and new comers. To achieve these opposite goals, the companies develop new technological processes, which result in lower operating costs, and integrate hardware, software and service, to create the most valuable premium packet for customers in the segment.

Real estate market in the time of pandemic: current trends and projections

The object of this research is the real estate market, while the subject of is the socioeconomic relations between all actors of the real estate market established in the context of implementation of restrictive measures due to COVID-19 pandemic. The authors examine the key theoretical aspects of the real estate market, analyze the dynamics in the housing (including premium segment), commercial, office and other property; make projections and align expert opinions on long-term development associated with the COVID-19 pandemic. Emphasis is placed on the impact of changes in mortgage lending with a lower interest rate under the State Support 2020 program development for the development of new-build property market. The following conclusions were made: paradoxicalness of the development of real estate market during the COVID-19 pandemic, in which the obvious negative factors did not lead to a drop in property prices; ambiguity of forecasts for the development of real estate market after the coronavirus pandemic, considering its consequences; situation on the real estate market of China, Hong Kong, and the United States during the coronavirus pandemic indicate similar development scenarios, while the premium segment prices differ significantly. The authors’ special contribution consists in aligning various expert opinions and assessments on the particular elements of real estate market (reinforced by the statistical data of different countries), and formulating a general conclusion on the state of this economic segment under the current conditions of pandemic.

ОСОБЛИВОСТІ ФУНКЦІОНУВАННЯ ТА ТЕНДЕНЦІЇ РОЗВИТКУ ВІТЧИЗНЯНОГО РИНКУ КОВБАСНИХ ВИРОБІВ

The sausage products market is characterized as a social market, the capacity of which can serve as a sign of well-being of the country's population. The main factors of influence on the capacity of the analyzed market are indicated. The growth in value of free time and convenience of foodstuffs makes the research of peculiarities of separate sausage products market segments relevant, namely: cooked and sausage meat products; semi-smoked sausages; cooked, semi-dried, dried, raw-smoked (including "salami") sausages; smoked and baked smoked sausage products. Factor of influence on the formation of the capacity of these segments selected indicator of the employed population. The results of the correlation analysis indicate a significant direct influence of the number of employed population on the capacity of the market segment of sausage products and similar meat products: cooked and sausage meat products, semi-smoked sausages, smoked and baked sausage products. However, the results of the analysis revealed a weak relationship between the number of employed population and the capacity of the market segment of cooked, semi-dry, uncooked and raw smoked sausages (including "salami"). This can be explained by the fact that these sausages are consumed by the population with a high level of income, which implements the philosophy of healthy eating, and therefore refuses to consume processed meat products. The use of the point diagram has allowed to determine the development trend of individual segments of the sausage products market during the period of 2005-2020. The conducted regression analysis has allowed choosing adequate linear models for the selected segments of the sausage products market. It has been established that an increase in the number of employed persons by 1% will lead to an increase in the capacity of the market segment of cooked and sausage meat products by 1.11% and an increase in the market segment of smoked and baked sausage products by 3.85%. This value of the elasticity coefficient makes it possible to classify this segment of sausage products as the premium segment. The results of the study can be used by meat processing enterprises for the formation of their own product policy.

LEVELS OF NUTRIENTS AND AFLATOXINS IN DRY AND EXTRUDED FOOD TO CATS / NÍVEIS DE NUTRIENTES E AFLATOXINAS EM ALIMENTOS SECOS E EXTRUDADOS PARA GATOS

The present study aimed to compare the composition on the label of dry complete food for adult cats with the nutritional composition determined by chemical analysis, to determine the occurrence of aflatoxins, and to list the most used ingredients. The determined parameters were: crude protein (CP), ether extract in acid hydrolysis (EEA), mineral matter (MM), moisture (MO), crude fiber (CF), calcium (Ca), phosphorus (P), sodium (Na), calculated metabolizable energy (ME) and aflatoxins. In assessing the levels guaranteed on the label, MO, CP, CF, MM and P remained within the range, but with a variation on the limits. The metabolizable energy varied from 3,712 to 4,136 kcal/kg. There was a divergence in the levels of two diets, with Ca above and EE below the values declared on the label in relation to composition obtained by chemical analysis, and both non-compliant in 20% foods tested. Regarding sodium, the diets showed levels 130 - 384% higher than stated on the label. Aflatoxin was found in 90% samples from zero to 4.37 ppb. The wide variation observed in the composition within the same super premium segment can cause losses due to the lack or excess of essential nutrients for the animal.

Three Sticks Wines: Digital Marketing, Branding, and Hospitality During a Crisis

This study examines a luxury winery located in Sonoma County, Three Sticks Wines, as it navigated a novel crisis-laden market created by the Covid-19 pandemic. The drastic effects on the industry as a whole and those specific to the premium segment are explored. Strategy to mitigate business displacement is analyzed and developed by the author to present a multi-faceted augmentation of marketing tactics. Areas of focus include digital marketing, co-branding, co-promoting, vineyards as marketing entities and wholesale allocation strategy. The case draws from leading academic research in strategy, consumer behavior, and digital marketing. A conclusion is reached that the winery should consider the range of tactics individually or jointly to maximize its marketing effort commensurate to business needs and shifting market conditions.

Three Sticks Wines: Digital Marketing, Branding, and Hospitality During a Crisis

This study examines a luxury winery located in Sonoma County, Three Sticks Wines, as it navigated a novel crisis-laden market created by the Covid-19 pandemic. The drastic effects on the industry as a whole and those specific to the premium segment are explored. Strategy to mitigate business displacement is analyzed and developed by the author to present a multi-faceted augmentation of marketing tactics. Areas of focus include digital marketing, co-branding, co-promoting, vineyards as marketing entities and wholesale allocation strategy. The case draws from leading academic research in strategy, consumer behavior, and digital marketing. A conclusion is reached that the winery should consider the range of tactics individually or jointly to maximize its marketing effort commensurate to business needs and shifting market conditions.

Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

AbstractWe investigate determinants of consumer demand for circular (reused and remanufactured) products. Based on exploratory choice‐based conjoint experiments with a sample of 800 adults in the United Kingdom, we examine two types of premium segment electronic appliances: a mobile phone and a robot vacuum cleaner. We find that consumers prefer partly circulated products over fully or not at all circulated products and that circular products can likely successfully enter the existing market at the retail price of a new product. Interestingly, circular products compete for market share primarily with new products, leaving the market share of second‐hand options less affected. The results show a promising path for firms considering a transition to circular business models.

Will organic sake intoxicate consumers? Procurements of rice as bottlenecks and comparative procurement strategies by four brewers in Japan

This study reviews the status of current organic sake and procurement strategies of organic rice by four brewers in Japan. Despite overall declining trends in shrinking domestic markets, sake categorized in the premium segment has been increasing in trading volumes and indicated resilience in prices.This study first reviewed and analyzed the overall status of sake, trends in premium segment, and challenges for organic sake. Unlike wine, organic sake occupies a minor position in the segment. This was followed by the comparative analysis of procurement strategies of organic rice for four sake breweries in Japan. The strategies were contrasting; three breweries indicated strong “local” bonding while one procured organic rice outside of the region, resulting in different product strategies. At its initiation, all four breweries showed the interests in local agriculture and gained rice locally. Then, availability and affordable price became a bottleneck. Implications of these challenges are further analyzed from exporting perspectives as well.

Anatomy of Downfall of Automobile Industry

The automobile industry includes bikes, cars and other motor vehicles. The purpose of this paper is to know the current position of the industry across the globe and in India. The reasons for the downfall of the industry has been analysed through industrial experts of the car manufacturing companies. The impact of the downfall in the industry has been speculated. This is extremely useful for experts to know the different rates in premium and budget segment in the automobile industry. The transition phases have provided some chronological explanation across the globe, so it is important to know about the effect of the phases.

Развитие индустрии здорового питания с использованием прогрессивных информационных решений

В современных условиях конкуренции предприятия общественного питания, в том числе и рестораны, вынуждены разрабатывать и использовать различные технологии привлечения клиентов. Значительную роль здесь играют маркетинговые методы, однако, обычной рекламы в средствах массовой информации уже недостаточно. Для поддержания конкурентоспособности рестораны разрабатывают оригинальные и современные способы и подходы к ведению бизнеса, которые уже невозможны без применения новых информационных технологий.
 В данной статье авторский коллектив Московского государственного университета пищевых производств предлагает инновационный подход для развития индустрии здорового питания, основанный на сочетании различных факторов воздействия на клиентов.
 Цель исследования – изучить возможности повышения эффективности деятельности предприятий общественного питания, в том числе кафе и ресторанов, за счет использования новейших тенденций в данной сфере.
 Задачи исследования:
 
 исходя из необходимости обеспечения населения здоровым питанием, разработать меню и сбалансированный состав блюд под него для ресторана здорового питания;
 проанализировать современные тренды в части автоматизации и использования современных информационных технологий DIGITAL HEALTH FOOD для повышения лояльности клиентов предприятий общественного питания и возможности их использования в ресторане здорового питания;
 предложить прототипы конкретных информационных решений для ресторана здорового питания, в частности – электронного меню с элементами дополненной реальности (AR) и решений визуализации на основе виртуальных технологий VR.
 
 Исследование проводилось в условиях лаборатории кулинарного искусства «Кухня-студия» МГУПП с апробацией в Учебном центре РЕСТОРАН-БАР МГУПП совместно с лабораториями кафедры «Информатика и вычислительная техника».
 После анализа мировых трендов цифровизации пищи были выбраны и разработаны анимационные решения и интерфейсы под них для повышения эффективности ресторанов и популяризации здорового образа жизни, в частности - электронное меню в дополненной реальности (AR).
 Области применения решений проекта – кафе, рестораны, кейтеринг премиум и массового сегмента, предприятия общественного питания с элементами электронной коммерции.
 По оценкам авторов, разрабатываемый проект позволит:
 
 мотивировать население к посещению организации общественного питания, которое будет применять рассматриваемые решения;
 повысить прибыль предприятий общественного питания (за счет привлечения клиентов);
 как конечная цель проекта – улучшить здоровье граждан за счет потребления здорового, сбалансированного питания.
 
 Полученные в ходе исследования результаты позволяют утверждать, что проект ресторана здорового питания с элементами виртуальной и смешанной реальности будет востребован организациями общественного питания и интересен для их посетителей.

Value System Efficiency on Product Features of Premium Two Wheelers in Tamilnadu

This study has been carried to find out what factors influence the consumer buying behavior of premium segment motorcycle customers which follows consumer oriented marketing philosophy .The primary focus of this study is to learn the consumer wants , needs and behavior of the specific target market. An intuitive understanding of the premium motorcycle consumer behavior is the key to the growth of premium segment motorcycle manufacturers to be highly successful in the future. These highly priced premium segment motorcycle companies are highly centered on understanding the customers to continue growth and sustain their market position in the industry even in times of tough competition and changing business environments. This study investigates on the expectation of Consumers in Initial, Pick up, Mileage, Riding Comfort, Safety features and Key Accessories Cum Tyre Tube at the point of sale and the same consumers’ satisfaction level after purchase the vehicles. Whether there is any mismatch between before Purchase and after purchase, if yes, in which brand, it was found in this study. This consumer research study is highly helpful particularly for the potential buyers on taking up strategic managerial decisions whether to buy premium two wheelers, if yes which brand.

Assessment of changes in the market value of residential real estate in the area of the commissioned transport interchange of the urban toll road

The purpose of this research is to assess the impact of the commissioned toll road running through the city’s residential areas on the market value of residential real estate. The article presents a review of non-traditional methods for assessing real estate value, mainly in foreign publications. The Western High-Speed Diameter (WHSD) is the most significant transport and infrastructure project of the current decade for St. Petersburg. The most inaccessible part of the city on Vasilievsky Island was analyzed, as the example of new and secondary real estate value changes, were examined from August 2015 to December 2017, by the time when the new transport interchange of WHSD in the western part of the island was constructed and put into commission. For the study, the authors used the data of the Real Estate Bulletin of St. Petersburg at the end of 2015 and 2017, the data of the cadastral assessment of residential real estate of St. Petersburg of 01.01.2015 and 01.01.2018. Main research method is the study of two-dimensional and conditional distributions of random values of bid prices and cadastral values, which allows obtaining estimates of the market value of the real estate that has passed cadastral registration, and estimates of growth rates. The comparison of prices of offers with cadastral values applied in the article, with a simple and natural speculation of logarithmically normal distribution, allows us to propose a method of assessing the market value for any property, even if the information about it is not available in the market data. The obtained numerical results showed a rise in the cost of a significant part of the mass-market for the study period up to 18% without discount on the auction, and up to 9% taking into account the discount on the auction. It turned out to be slightly higher than the general change in the prices of proposals that can be found in advertising publications. A significant change (from 50% to 73%) was found in business-class properties, located in the area with significantly changed species characteristics and improved transport accessibility, in the immediate vicinity of the exit from WHSD. The results, indicating the growth of market value, allowed us to make a general conclusion about the changes in the attractiveness of the area for different segments of the population of the city: both for the mobile middle class, focused on the mass-market, and for buyers of the premium segment, having increased requirements for the real estate. The authors believe that the growth of the market value of real estate in the area of transport interchanges of modern infrastructure projects could be higher in other macroeconomic conditions. At present, the effective demand of the population is obviously not sufficient.

The U.S. Men’s Razor-Blade Market: A Competitive Profile

This paper follows the footsteps of five studies: the U.S. Men’s Shaving Cream, the U.S. Beer, the U.S. Shampoo, the U.S. Shredded/Grated Cheese, and the U.S. Refrigerated Orange Juice markets.Porter links high market share with cost leadership strategy which is based on the idea of competing on a price that is lower than that of the competition. However, customer-perceived quality—not low cost—should be the underpinning of competitive strategy, because it is far more vital to long-term competitive position and profitability than any other factor. So, a superior alternative is to offer better quality vs. the competition.In most consumer markets a business seeking market share leadership should try to serve the middle class by competing in the mid-price segment; and offering quality better than that of the competition: at a price somewhat higher, to signify an image of quality, and to ensure that the strategy is both profitable and sustainable in the long run. Quality, however, is a complex concept consumers generally find difficult to understand. So, they often use relative price, and a brand’s reputation as a symbol of quality.In 2008—and 2007—the Gillette brand dominated the U.S. Men’s Razor-Blade market like a colossus, with a 90%, and 78% share, respectively, in Blades and Razors in 2008. In 2008 sales for the U.S. were $111 million for Men’s Razors, and $591 million for Men’s Blades.We tested two hypotheses: (1) That a market leader is likely to compete in the mid-price segment, and (2) That the unit price of the market leader is likely to be somewhat higher than that of the nearest competition. Employing U.S. retail sales data for 2008 and 2007, we found that for both 2008 and 2007 the market leader in the Razor market was not a member of the mid-price segment, but the premium segment. Likewise, in the Blade market the leader was part of the premium segment, not the mid-price segment.Several arguments can be offered to explain this deviation: (1) Gillette had a virtual monopoly of the industry because it was pursuing “First to market” strategy of innovation and on-going improvement, (2) The technology of producing Razors and Blades has become more complex and consequently more expensive, (3) Producers are now offering many more new feature—and benefits--than ever before that further raise the cost of production, and (4) Many men regard shaving an important part of personal grooming which they regard an “affordable luxury”.Whereas Gillette had positioned itself as a premium brand in the past, it stepped up the ladder and placed Fusion Blades in the Super-premium segment in 2007 and 2008.We also found strong support for the idea, that relative price is a strategic variable.Finally, we discovered three strategic groups in the industry.

Beauty and the budget: A segmentation of residential solar adopters

The transition to renewable energy supply of buildings, especially distributed solar power, is a key element of climate change mitigation. As the policy landscape is shifting and financial incentives for renewables are increasingly phased out, a nuanced understanding of homeowners' intention to install solar panels is key for reaching a broad market appeal. By analysing a dataset of 408 Swiss homeowners' stated preferences in the context of building retrofits, this paper identifies two key segments of likely solar adopters, including a premium segment preferring coloured and building integrated solar modules, and a value segment with more price-sensitive customers. Differences between likely adopters and likely non-adopters, as well as between two distinct segments of likely adopters, are investigated along sociodemographic, psychographic, and social aspects. Our analysis shows that aesthetic aspects of solar panels are key for expanding the customer base, and that likely adopters are more likely than likely non-adopters to be surrounded by neighbours, friends, and relatives who have already installed solar panels. Our results also reveal that the premium segment cares more about aesthetic aspects in general purchasing decisions and shows higher ecological concern than the value segment.

Analysis of refrigerant pipe pressure drop of a CO2 air conditioning unit for vehicles

This study investigates the pressure drop in refrigerant pipes of a CO2 automotive air conditioning unit. A test rig to measure the pressure drop of arbitrarily shaped pipes is presented. As boundary conditions at the inlet of the test section, mass flow, pressure and enthalpy of the refrigerant are independently adjustable to values that cover the whole operating range of a CO2 automotive air conditioning system for cars in the premium segment. Numerical analysis using CFD and a one-dimensional modelling tool is carried out. The pressure drop for the suction pipe reaches values of up to 500 mbar. CFD simulation predicts the pressure drop with an error of 25.7% for single-phase flow whereas the deviation using one-dimensional models is 46.5%. During two-phase flow the error increases to 55.8% with one-dimensional models and 42.4% using CFD.

Competitiveness Management of Goods Based on the Application of the Theory of Attractive Quality N. Kano (on the example of JSC “Sagunovsky Meat Processing Plant”)

The study substantiates the idea that the key task of managing competitiveness is the proof of the viability of the goods produced and the creation of conditions for the struggle for the consumer with the help of modern methods of ensuring customer satisfaction. Under these conditions, models of demand formalization and determining the competitiveness of products become particularly relevant. The Noriaka Kano model of attractiveness is considered, which makes it possible to single out the existing features of products of a particular manufacturer that are not found in competing analog products that could increase the competitiveness of the products studied. The article presents the results of a study of consumer satisfaction with meat products of OJSC “Sagunovsky Meat Processing Plant” by the method of N. Kano, identified factors that increase the attractiveness of products and the competitive advantages of an enterprise in the market. The authors compiled a questionnaire, which allowed to identify various degrees of satisfaction with the properties of the meat products of the plant. A feature of the content of the questionnaire questions was a combination of positive and negative questions, which made it possible to form the most complete picture of the attractiveness of the properties of meat products. The result of the processing of the obtained data was the calculation of the satisfaction and dissatisfaction potentials of consumers of the plant’s products and the mapping of characteristics. Products produced by the meat processing plant may have a high potential quality, i.e. Comply with state standart and generally accepted specifications, but high real quality is achieved only in the process of using the product and customer satisfaction. The study showed that in the company's strategy little attention is paid to improving the product line in the premium segment, as well as to those characteristics of meat products that are not directly related to the basic properties of the sausage, but make the consumer happy. The meat factory needs to reconsider approaches to the development and implementation of product policy, in particular, to revise the requirements for smell, cutting and high content of spices in sausage. The use of this model will allow the company to develop measures to increase the attractiveness of products and improve the strategy of product promotion on the market.

Automotive Components 3D Printed in Series

AbstractIn the automotive sector, limited editions of successful models are a smart marketing move. But car makers are always looking for specific ways to distinguish themselves from their competitors within their market segments. DS Automobiles, a brand by the PSA Group, managed to establish itself on the premium segment within a few years thanks to a series of iconic models.