When Premium Doesn't Mean Better

In a pre-Christmas blind tasting by Which, Netto mince pies scored better than Harrods, Waitrose and Sainsburys. At £1.19 for 6, you can buy 30 Netto pies for the price of 6 in Harrods. Enough for a party...and you needn't need worry what your guests might say. The test, among 150 people scored for appearance, taste and aroma; and showed that Netto isn't a nice anomaly. Aldi and Tesco pies got the same score. As did Mr Kipling and Co-op. Nor is this change in the natural order confined to mince pies. A £30 M&S made-to-measure shirt beat Savile Row's finest (RSP £165.90).

Shoppers assume that premium is functionally better, paying extra for emotional reasons, but justifying it on functional grounds. It is better quality, will last longer. If premium isn't functionally superior in ways that matter, shoppers will struggle to justify the extra cost on emotion alone. Do the "mince pie test" in your category. Do the premium products represent good value? How can you amend your strategy to attack/defend as necessary? Most people, it seems, don't want brandy and nuts in their mince pies.