Biz Talk–Premium Product Launches

A recent news report on British manufacturer Savoir Beds issue of their new $175,000 super-premium mattress release gave us some interesting marketing fodder for Quad State businesses.

Businesses should always be thinking about their next ‘in-family’ new product release and we thought this would give Quad State owners and managers some food for thought.

If you are the marketing head for Savoir Beds, how do you sell a $175,000 bed? Of course, we don’t have all the tools the actual marketing head has, but it does make for interesting strategic thinking benefiting our own business.

The company’s previous super-premium mattress product topped out at a cool $70,000. And now your company exceeds that by $100,000. What’s a marketing guy to do?

First, scarcity should be in your strategic thinking with a super-premium priced product.

It turns out that the company is only making 60 of these mattresses. Each mattress will require more than 700 hours of labor and contain “masses” (their word) of curled Latin American horse tail and “mountains” of pure Mongolian cashmere and hundreds of miles of specially woven silk.

Next, you need to position your product correctly.

As the mattress price gets you close to what a Lamborghini would cost, you must carefully position your product to your market niche. Savoir Beds does that by launching the ‘Royal Bed’ promotion at Kensington Palace in London. OK, check.

Next, your ad copy must reach ONLY your target audience in a very cost-conscious way. What, at that price? Correct.

If you can afford a $175K mattress, you need to be assured that there are SOME reason(s) why you should buy it.

In the end, your ad copy may include a video of someone who looks like royalty enjoying the bed, and Savoir Beds does offer your own family crest or emblem embroidered into the mattress.

This along with other customizable features of course will give you a lot of reasons to buy if you are in Savoir’s target audience.

Savoir Beds notes that all the needlework on the mattress will be done by the Royal School of Needlework—which by the way, had a big role in making Princess Kates’s wedding dress. Another check completed.

The ad copy goes on to tell you that the design of the Royal Bed is inspired by 17th and 18th Century beds ‘…when royal bedrooms were the center of palace life…’

The copy then explains that the bed has a full 25-year guarantee. And just figure it all out, if you are in the bed each night for 25 years, the average per-night cost is only $20 per night.

Such a deal, yes?

So what do we learn from a $175,000 super-premium priced matress launch for new product launches of our own?

  1. Strategy must involve the needs/desires of a highly-targeted niche audience and only that audience when one is talking super-premium–even to the exclusion of other markets;
  2. Positioning must include the whole of that niche target audience to instantly instill the product’s benefits to that audience–if you are in that audience, you must ‘get the point’ right away; and,
  3. Advertising must only follow the carefully planned path created by marketing research and be extremely focused to that market. Market research must be done with/through actual customers if possible.

Got some new-product launch stories in the Quad State region? We’d not only like to share your comments but your victories and defeats as well!

In this tools section over the coming weeks and months, we want to talk about business mechanics and brainstorm with you some strategies in our in-person public hot-seat brainstorming sessions now being planned around our region.

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About Steve Lanning

Steve Lanning is a nationally recognized entrepreneur who has been creating his own paycheck since 1975 and loves to help others do likewise. As the founder of both the National Association of Business Coaches (sold in 2002) and the Consultants National Resource Center (for all marketers of professional services), he and his family have lived in three of the four states in our Quad State region. His passion is to see individuals and small businesses, start-ups to mature, discover and promote their strengths in building revenue streams individually, that, collectively, make for a strong region as reported on and celebrated by the Quad State Business Journal. He can be contacted at AdviceMarketing@gmail.com.

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