There’s never a bad time to be a winemaker—or so we have been assured by vineyard owners—but some years are better than others. Champagne, in particular, has been enjoying a great year, with sales up a reported 5.2% over the first half of 2011.
That’s an awful lot of bubbly! Champagne is the beverage of choice for festive events, essential for wedding toasts and, of course, New Year’s Eve celebrations. Now that the ball has officially dropped, and we’ve embarked, for better or worse, into 2012. It’s a good time to look at this CNN Fortune story about legacy Champagne brand Piper-Heidsieck and their efforts to remain relevant in a crowded, confusing marketplace.
We have to admit that our curiosity was piqued by new CEO Cecile Bonneford’s comment, “Market research tells me what the average consumer wants and I’m not interested in the average consumer.” Bonneford’s reported plans center on positioning Piper-Heidsieck as a luxury brand for younger, affluent drinkers.
Before these plans can be implemented, however, it’s essential that Piper-Heidsieck has a deep, nuanced understanding of how her prospective market views luxury. What are the essential traits that a brand must embody in order to qualify as a luxury brand in her customer’s eyes?
Brand Modeling: Finding A Path Forward
There are tangible and intangible answers to that question. We can talk about the physical qualities of the product. Piper-Heidsieck is actually produced in the Champagne region of France; a meaningful distinction for oenophiles.
What iconography and imagery comes to mind when her audience hears the word “luxury”? Does Piper-Heidsieck look like, smell like, and most importantly taste like a luxury Champagne? It’s essential that the customer expectations are understood, met, and whenever possible, surpassed.
The conversation goes on from there. The intangible qualities that define luxury are in many ways more critical than the tangible. Piper-Heidsieck has several great cards in their hand. They’ve been in existence for more than 100 years; longevity is the hallmark of a luxury brand. It’s hard to beat a celebrity endorsement list that boasts both Marie Antoinette and Marilyn Monroe.
Identifying these and other similar factors begins the exploration of the values and narratives that this audience associates with luxury. This process lies at the heart of discovering a Brand’s DNA, one of the key steps in Brand Modeling. Through this discovery, dominant organizations learn the best ways to connect with their existing customer base, attract new customer interest, and convert the casual fan into a devoted afficionado.
Bonnefeld’s definition of luxury is fascinating. “Luxury is about tension,” she said in the article, “tension about history and tension about today.” There’s certainly a lot of room for interpretation there, but if Bonnefeld’s interpretation is in alignment with her market’s, she’s in a good position to succeed. Understanding what critical points of tension a customer faces and providing a proven, reliable, enjoyable way to resolve those tensions is how dominant organizations put customers first.
We’ll be keeping an eye on Piper-Heidsieck. We think that they may find themselves with something to celebrate!