Company B – Misaligned Brand Positioning

Case study

Issue:

Company B, a luxury fashion brand, attempted to expand into an emerging international market, expecting affluent customers to flock to its exclusive product offerings. However, sales were underwhelming. The company’s premium branding and focus on exclusivity didn’t resonate with the local market, where the perception of luxury differs from that in its home country. The brand message felt too detached from the cultural and socioeconomic realities of this new audience, alienating many potential buyers.

Hypothesis: If Company B conducts thorough local market research and adapts its brand positioning to reflect local cultural values and economic realities, the brand can better connect with its new audience, ultimately driving stronger engagement and higher sales.

This hypothesis arises from Company B’s failure to account for the local market’s cultural identity and buying behaviors. By aligning the brand message with local aspirations, rather than rigidly applying a global positioning strategy, the company can demonstrate cultural sensitivity and relevance, building deeper emotional connections with potential customers.

Counter-Argument: Some within the company may argue that maintaining a consistent global brand identity is crucial for luxury brands, and deviating from this could weaken the brand’s perceived value. However, this perspective overlooks the nuances of cultural context. While maintaining consistency in quality and core values is important, messaging and positioning should reflect the preferences and values of the local market to avoid alienating potential buyers.

Solution 1
Solution 2
Solution 3

Conduct Thorough Local Market Research:

Actionable Step: Company B can commission market research firms to conduct focus groups, interviews, and surveys to better understand the local market’s cultural dynamics, economic conditions, and consumer perceptions of luxury. This data can be used to build a profile of the local buyer and their desires.
Result: Gaining insights into local attitudes toward luxury will enable Company B to adapt its brand positioning in a way that feels authentic and appealing to this new audience.

Adapt Brand Messaging to Reflect Local Values:

Actionable Step: Using the insights gained from research, Company B can refine its messaging. For instance, if local buyers view luxury as a symbol of community success rather than personal exclusivity, the brand can pivot to emphasize how its products enhance collective status while still maintaining its premium appeal.
Result: This repositioning can make the brand more accessible without compromising on exclusivity, helping the brand feel more in tune with local culture and values.

Collaborate with Local Influencers and Tailor Campaigns:

Actionable Step: Company B can collaborate with regional influencers who are well-versed in the local culture and have established credibility. Influencers can promote the brand in a way that feels authentic to the audience. Additionally, localizing campaigns with regional imagery, language, and references will further bridge the gap between the brand and its audience.
Result: This localized approach will humanize the brand, helping it build a relationship with the local audience that feels both aspirational and relatable, leading to increased sales.

Description

Company B, a luxury fashion brand, attempted to expand into an emerging international market, expecting affluent customers to flock to its exclusive product offerings.