Winning in aspirational markets 👑
How to select the right value architecture
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Aspirational markets are not a zero-sum game.
Consumers compare aspirational products with experiences, access, socializing, spirituality, charitable work or self-actualization: a concert can be equally desirable as a bottle of vintage bourbon as a pair of rare sneakers. This makes aspirational brands all part of the single market and interchangeable in terms of value in the eyes of their buyers. Differentiation in this compressed aspirational market is even more important knowing that, in order to survive and grow, a company needs to be part of consumers’ initial consideration set. Consumers’ initial consideration set is the set of brands that first come to mind when consumers are looking to buy something. If it makes it into initial consideration, a brand is two times more likely to be purchased than a company that is considered later in the decision journey. This trend only gets amplified with the market share growth.
To win in aspirational markets, brands need to: a) have a clear identity and the strategy of conveying it, b) a clear idea on what kind of growth model they want to pursue and c) keep innovating in value.
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