Premiumization for Craft Brands
“But ‘craft’ and ‘premium’ sound like opposites. Does the trend of premiumized brands mean an end for craft brands?” – Naively asked one of Son Tinh’s employees.
Well, no. As a matter of fact, it benefits us as the top Ruou (Vietnamese traditional rice liquor) brand all the more.
For those who wonder the same, here’s a case study of how we used premiumization to elevate the brand of Son Tinh, while perfectly preserving its “craft” characteristics.
What is “premiumization” and why should I be interested?
Here’s how PearlFisher, a top branding agency from the UK, explained this buzz word: “Premiumization (is) elevating a brand offering through strategic positioning and premium design”.
And here’s Brandingmag.com point of view on it: “Premiumization has created the bridge between the desirability of the luxury world and the function and necessity of the mass market”.
For Son Tinh, it’s very simple:
1. branding ourselves to boast a luxury lifestyle, holding our products to luxury standards; 2. yet keeping prices and emotional/functional benefits relevant to the life of an average-income drinker.
Why is premiumization on-trend? For every market, young or old, customers follow a trajectory that is known as the “Maslow pyramid”. The needs they look for in a product go from basic human needs (such as to drink, to eat, to wear) to more advanced social and psychological needs (such as to express, to be respected, to have power). In this same trajectory, benefits from alcohol brands are getting more advanced. Your choice of alcohol is no longer just about kick, but also about self-expression. The brands you choose, the alcohol of choice, the drinking styles, are all to show how savvy you are and how luxurious your lifestyle is.
Does premiumization reduce my craft equity?
In this sense, can craft liquor and craft beer be called “craft”, while the production method involves machineries and technology?
First off, what exactly is “craft”?
The original definition of craft is making products by hand, or at best by some make-shift tools. A few examples are hand-made decorations, clothing, or embroidery.
Well, in recent years, the definition of craft has changed drastically. The current meaning of “craft” is producing in small batches, embracing make-shift tools and ecological solutions where machineries are not necessary, and use human eyes to scrutinise every product batch that comes out.
This gives craft beer and craft liquor the liberty to be called what they truly are: crafty and artisanal.
If you look at “craft” at this angle, then “craft” and “premium” are no longer opposites, but rather two sides of the same coin. Both take time, both pay meticulous attention to details, and both aim for superior products.
[Photo: Son Tinh’s premium rice liquor being bottled in make-shift tools – perfect example of the harmony between craft and premium]
The guide to premiumization for craft brands
Key number 1: Cohesive branding
If you look at successful luxury brands such as Ralph Lauren or Audi, they all have one thing in common: a distinct, yet perennial brand personality.
Your branding strategy should be by the book, defining exactly when to talk about craft and when to talk about premium, and how the two harmonise in your brand.
Start with a solid foundation of brand values, developed into a set of branding identity and guidelines.
The brand’s image will also be heavily affected by your marketing communications activity. Thus, the brand’s personality should come through in your choice of marketing channels, messages, and designs as well.
For example, brands usually have to choose whether to prioritise SEO or Content Marketing. If you are SEO-led, your content would conform to SEO strategies in terms of volume, frequency, keywords. If you are content marketing-led, SEO wouldn’t have a say unless it doesn’t go against your brand’s tone of voice.
Most luxury or premium brands choose Content Marketing, because it puts the brand’s personality in control, rather than Google’s algorithms. Son Tinh agrees.
Take a look at a few articles we have written on our blog as part of our content marketing strategy – all are crafted from original photos and words.
- Son Tinh Interviews: Mixologist Richie Fawcett
- The 4 secrets of premium Vietnamese rice liquor
- Ruou Creation: How to make the “Hanoi Capital of Literature” Cocktail
Key number 2: High-quality materials and textures, in product as well as marketing collaterals
This is the one thing that craft and premium have in common. Whatever craft product you make, aim to make it the most high-quality of its market.
In terms of production, this means having a stand-out characteristic to your product.
In Son Tinh’s case, the texture of our liquor is always recognisable. Compared to less premium liquors, Son Tinh liquors are denser, smoother, and create longer legs. Drinkers are getting savvy, they know that these are tell-tale signs that a liquor is premium.
We also took it a step further with the packaging. Partnering with Saverglass, a high-end glass bottle maker, we created our own design of Son Tinh bottle. These bottles are heavy-set and much more solid – giving it a premium feel. Yet, the shape imitates that of traditional Ruou gourds, helping us tell our craft story.
Similarly, our bottle corks enforces an ecological solution on top of a premium material: Son Tinh bottle corks are made from recycled Mahogany – and the minimalistic design is the icing on the cake.
In order to maintain a cohesive brand, this same principle should be applied to all marketing materials and collaterals.
Key number 3:
Take the leisure to include unnecessary details that tell the craft story in your designs
The luxury to sit back and splurge on white spaces or unnecessary details is not affordable by many. We all know how expensive ad spaces are, so it’s only natural that you want to make the most of those spaces with marketing messages and calls to action.
But for a luxury brand, or any brand trying to pursue a luxury image, this is your Achilles’ heel.
This doesn’t apply to only ads, but also product, packaging, and marketing material designs (brochures, catalogs, websites, etc.).
In order not to lose the “crafty” feel, though, these white spaces and unnecessary details should be cleverly incorporated to express your craft heritage.
For Son Tinh, these details come in all shapes and sizes.
A good example is our engraving on the bottle, a clear, colourless signature or our master distiller that says “Markus Son”. This engraving doesn’t clutter the bottle design with more sale messages or colours, it doesn’t overwhelm drinkers with product benefits or brand statements. Its sole purpose is to give a personable feel for the product.
The mountains on our logo and on the bottles are another extra detail that is story-telling. Monotone with simple outlines, this shape mimics that of the Chinese word for “mountain”, which in ancient Vietnamese language is “Son” – in “Son Tinh”.
Are these details necessary? No. But they do give us a premium image, while telling our craft story.
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