Premium brands

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Advantage edrington

Being a premium brand in the markets such as China and south east Asia is beneficial as the middle class are expanding and are valuing premium products and their populations are increasing therefore they are reaching a much larger market. In these markets their products are in the growth phase, where sales are increasing at their fastest rate. People are travelling more so the brand and culture of the product is very important which edrington focuses on. Whereas in the uk market it is in the mature phase, where sales are near their highest and the rate of growth is slowing down and is fairly saturated. Demand is static in the uk.

Advantage Strong brand image

Creates a strong brand image which makes it more recognisable and easier to introduce new products

Advantage higher profit margin

Higher profit margins are achieved through using premium pricing, is when a company charges a higher price for their product to create the perception of the product having a higher value

Disadvantage high costs

It is very expensive to maintain a strong brand image and the business must invest in order to keep it

Advantage impact of MUP

The impact of minimum unit pricing on edrington's products is it won't be affected as much due to them selling premium products which charge a high price whereas lower priced products will be highly affected

advantage increase in demand for premium products

There is an increase in demand for premium/exclusive products this trend is beneficial to edrington

Disadvantage limits the size of market

They are limiting the size of their market by being a premium brand as they are only targeting certain segments of consumers

Disadvantage vulnerable if there is a recession

They are vulnerable if their is a recession due to their products being a normal good, which is a good where people demand more of when their income rises or less when their income falls, the product is income elastic and is greater than 1 (positive) and is very responsive to a change in income

Advantage partnership with other premium brands

They can make partnerships with other premium brands (association) gives them a link to a new market segments and their wider known as a premium product


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