Introduction
White brands
Luxury brands
Premium brands
Comment


Introduction

The consumer is undoubtedly the most important party when developing a brand. Parties should take into account that consumer preference has changed over time due to the influence of various factors. This article considers three types of brand – namely:

  • white brands;
  • luxury brands; and
  • premium brands.

White brands

White brands emerged in the 1970s. Their main objective was to market products that had high quality standards but costs which were lower than those of large brands. Therefore, they sought to reduce the costs of advertising and packaging, which resulted in simple designs that predominantly used the colour white.

'White brands' can be defined as product brands, usually produced by distribution chains, supermarkets and hypermarkets, which use them to market products at more competitive prices than other manufacturers. White brands were initially associated with food products (eg, milk, rice and legumes) but subsequently became part of other products (eg, hygiene and cleaning products).

Low prices are no longer the main characteristic of white brands. Previously, consumers were likely to associate white brands with poor quality. However, some parties now use white brands in association with expensive products.

Luxury brands

Luxury brands imply exclusivity, which is why they have a loyal consumer audience. For luxury brands, status is more important than price. Their main objective is to obtain select sales, rather than a high quantity thereof. Luxury brands emphasise the excellence of the products' finish and the use of the best tools to obtain the best results.

Initially, luxury brands were intrinsically related to their logo. However, the current abundance of logos in the marketplace has resulted in greater focus on other determining factors (eg, differentiation and exclusivity).

According to research by Professors Klaus Heiner, Michel Han and Glyn Atwal, the main characteristics of luxury brands are authenticity and prestige.

Luxury brands focus not only on social positioning, but also on increasing the quality of life of their consumers – their value transcends the monetary.

Premium brands

Premium brands are those which have the highest prices in the market. However, they are available to consumers; their objective is for products to be sold in bulk. Therefore, premium brands align with the consumer's expectations. Premium brand product consumers do not mind paying a higher price because the product that they obtain has a high performance and functionality.

Comment

Premium and luxury brands are the new protagonists in the marketplace in terms of consumer preference. Such preference has evolved over time, generating greater brand requirements.

Owners now tend to use logos or names (depending on whether their trademark is a word trademark or a mixed trademark) that are sufficiently distinctive to help them to position their brand in the market. The objective of such trademarks is to ensure that the public remembers them and relates them directly to the logo or denomination. Owners of word trademarks also seek to avoid the denominations being descriptive of the products or services that they distinguish since this is generally prohibited.

The use of logos and denominations has changed over time since more competitors now exist. Therefore, greater creativity is required to avoid the use of denominations or logos which are similar to previously registered or requested trademarks.

For further information on this topic please contact Evelyn Dueñas Morales at OMC Abogados & Consultores by telephone (+51 1 628 1238) or email ([email protected]). The OMC Abogados & Consultores website can be accessed at omcabogados.com.pe.