How To Increase Popularity with Price

The Relationship Between Popularity and Price

Popularity is measured by the extent to which your brand has a buzz about it or has cultural momentum. Brands who are deemed Popular are broad reaching and often used or purchased by many.  

If you’re brand is aiming to increase its Popularity, one way to do it is with Price. You can increase Popularity by adjusting your price, ensuring it is accessible for all while remaining competitive within the category and the competition.  

So, if you’re interested in growing your Popularity through Price, consider the following: 

1. Popular brands are for the masses– your price needs to be too. For a brand to be perceived as Popular, it needs to have broad appeal. When it comes to Price, that means that the cost of the brand needs to be attainable for a large population. You can achieve this by pricing your product at an affordable, everyday price that most people are able to pay, or by having a range of products at different price points within your brand.  

2. Your price must remain competitive. When it comes to Popularity, you’ll want to attract a lot of category purchasers to your brand. You’ll need to be competitive when it comes to your price, in order to coax people over from another brand. Make sure that as you develop your brand, you set a competitive price for your product while ensuring your margins are healthy for your business. 

3. Pricing must enable Category Expansion. Brands who are deemed “Popular” are the ones that are known and able to expand the category. To be category-growers, your price should be one that first-time buyers feel comfortable entering through. Again, this means having a set of products at various price points and in various sizes to capture all price sensitivities among shoppers. Or, this can be achieved by making your core product offering available at the most competitive price – the category average price.

4. In rarer circumstances, the higher end of the price range creates hype. Some brands are highly Aspirational as well as Popular. To create hype and excitement, pricing the brand above the average price range (while keeping it attainable) makes the product spread like wildfire. Only use this technique if your brand has the Aspirational power to pull it through, too.  

What should you do next?

• Take a look at your category and your competition, running an audit of the products they offer versus their price. Understand the core product offering and the price-point you need to hit to be the most competitive. 
• Determine what the key drivers of your category are when it comes to first time buyers and use Price as a way to attract new buyers in, using your brand as a gateway. 
• Understand the Value of Money that people feel they get from your competitors and target groups who feel their current Value for Money is lowest. Once they switch to buying your brand, you will grow your perceived Popularity. 

How to determine if it’s working.

• Watch your Popularity driver over time as you launch new products at new price points for new people. The more products you have – in different sizes, with different benefits, at different prices – the more people your product will reach. This will have a net positive effect on your brand’s Popularity. 

• There will also be a corresponding shift in Value for Money. As people believe the product has momentum, they will be more likely to pay more for it.  

• Keep an eye on your organic search volume and your online sales. As your Popularity grows through leveraging Price, you should see people looking for you more. Your name will be more of a household name and you should see your brand in more baskets online. 

  
  
  Guidance from:
  Jim Brennan | Managing Director, ProQuo AI
  
  Jim is a master of brand management. With over 10 years at Unilever as a brand leader, he knows how to make a brand grow.