Lindt. Literally luxury.
Lindt's price cuts expose an awkward distinction: a product can be more expensive than its neighbours without making price itself the reason people want it.
THE GIST ON LINDT
What is the luxury promise?
Gold foil, the chocolatier and the gift box signal that somebody chose something nicer. Huw distinguishes that premium position from luxury whose high price is part of the appeal. The two depend on different relationships with the customer.
Why do price cuts matter?
When customers buy a product because it is a little better than the cheaper alternative, a widening price gap can send them elsewhere. A price cut may bring them back, but it also tests what the word luxury was doing in the first place.
Who gets squeezed in the middle?
The cheapest alternative can compete on the product's price. At the other extreme, an exclusive luxury brand can make price part of the product. Huw places Lindt between those positions, where inflation makes the distinction harder to sustain.
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Quick answers
What is the luxury promise?
Gold foil, the chocolatier and the gift box signal that somebody chose something nicer. Huw distinguishes that premium position from luxury whose high price is part of the appeal. The two depend on different relationships with the customer.
Why do price cuts matter?
When customers buy a product because it is a little better than the cheaper alternative, a widening price gap can send them elsewhere. A price cut may bring them back, but it also tests what the word luxury was doing in the first place.
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