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This study aims to analyze the relationship of mass versus niche brand coolness on consumers’ brand loyalty, mediated by attitude toward the brand and moderated by conspicuous consumption; test the moderating role of conspicuous consumption and the mediating role of attitude between mass versus niche cool brand and brand love; and analyze whether results are stable when categorizing the luxury brands as niche versus mass cool brand.

Study 1 uses a panel sample to establish the mediating role of attitude toward the brand between perceptions of brand coolness and brand loyalty. Study 2 is an experimental survey study to describe the moderating role of conspicuous consumption on the relationship between mass/niche brand coolness and brand love and between mass/niche coolness and attitude toward the brand. Study 3 is a conjoint analysis that delineates the distinct factors that consumers attribute to mass versus niche cool brands in the luxury fashion arena.

This study demonstrates that attitudes mediate the relationship between brand coolness and brand loyalty. Conspicuous consumption only moderates the relationship between brand coolness and attitudes in the case of niche cool brands. In a realistic field experiment, the authors confirm the mediating impact of attitude and the moderating influence of conspicuous consumption. The authors also attempt to provide coolness dimensions that tend to be more associated with mass luxury brands and those more related to niche luxury brands.

These studies provide a fresh look at the concept of brand coolness, mass and niche cool brands in the context of luxury fashion brands.

Esta investigación pretende (1) analizar la relación entre el atractivo de las marcas de nicho y de masas y la lealtad a la marca de los consumidores, mediada por la actitud hacia la marca y moderada por el consumo conspicuo, (2) comprobar el papel moderador del consumo conspicuo y el papel mediador de la actitud entre el atractivo de las marcas de nicho y de masas y el amor por la marca y (3) analizar si los resultados son estables al categorizar las marcas de lujo como de nicho o de masas.

Demostramos que las actitudes median en la relación entre el “coolness” y la fidelidad a una marca. El consumo ostentoso sólo modera la relación entre el “coolness” de la marca y las actitudes en el caso de las marcas “cool” de nicho. En un experimento de campo realista, confirmamos el efecto mediador de la actitud y la influencia moderadora del consumo ostentoso. También intentamos proporcionar las dimensiones del coolness que tienden a asociarse más con las marcas de lujo de masas y las que están más relacionadas con las marcas de lujo de nicho.

El primer estudio utiliza una muestra de panel para establecer el papel mediador de la actitud hacia la marca entre las percepciones del atractivo de la marca y la fidelidad a la misma. El segundo es un estudio experimental que describe el papel moderador del consumo ostentoso en la relación entre el atractivo de las marcas de masas/nicho y el amor por la marca, y entre el atractivo de las marcas de masas/nicho y la actitud hacia la marca. El último estudio es un análisis conjunto que delinea los distintos factores que los consumidores atribuyen a las marcas de moda de masas frente a las de nicho en el ámbito de la moda de lujo.

Estos estudios aportan una nueva mirada al concepto de “coolness” de marca, marcas “cool” de masas y marcas “cool” de nicho en el contexto de las marcas de moda de lujo.

本研究旨在：（1）分析大众品牌酷与小众品牌酷对消费者品牌忠诚度的关系, 以对品牌的态度为中介, 以显性消费为调节; （2）检验显性消费的调节作用以及态度在大众品牌酷与小众品牌酷与品牌喜爱之间的中介作用; （3）分析将奢侈品牌分为小众品牌酷与大众品牌酷时, 结果是否稳定。

第一项研究使用小组样本, 以确定对品牌的态度在品牌酷感和品牌忠诚度之间的中介作用。第二项研究是一项实验性调查研究, 目的是描述显性消费对大众/小众品牌酷感与品牌喜爱之间以及大众/小众品牌酷感与品牌态度之间关系的调节作用。最后一项研究是一项联合分析, 旨在界定消费者对奢侈时尚领域中大众与小众酷品牌的不同评价因素。

研究结果 我们证明, 态度是品牌酷感与品牌忠诚度之间关系的中介。只有在小众酷品牌的情况下, 显性消费才会调节品牌酷度与态度之间的关系。在一个真实的现场实验中, 我们证实了态度的中介作用和显性消费的调节作用。我们还试图提供与大众奢侈品牌更相关的酷感维度, 以及与小众奢侈品牌更相关的酷感维度。

这些研究以奢侈时尚品牌为背景, 重新审视了品牌酷度、大众和小众酷度品牌的概念。

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

The paper uses revealed preference data of the Australian wine market, comprising 4,000 wine shoppers' purchases over a 12‐month period. Standard brand performance measures such as penetration and purchase frequency are applied to the data to define niche and change‐of‐pace brands. Using the same data, price tier loyalty is measured using polarisation, and discussed in relation to the attribute offering required and the direct marketing approach required for true niche positions.

The empirical results show that both niche and change‐of‐pace positions are prevalent in the wine market and small wineries, within a direct marketing channel approach, should target higher price points with branded wines but also lower price point products as well. The results suggest that attribute levels that are change‐of‐pace are unsustainable for small brands and can only be undertaken by large brands with the appropriate marketing resources.

The authors conceptualise that small brands should focus on attribute levels that have excess loyalty. Large brands can absorb attribute levels that are change‐of‐pace. This conceptualisation requires further discussion, particularly from the strategy literature, as well as further empirical testing.

Whilst “niche” positions are the holy grail of some teaching and much practitioner endeavour, this paper has presented data that demonstrate the need for managers to ascertain if the position they occupy is in fact a niche or a change‐of‐pace position.

This paper fulfils a need by using revealed preference behavioural data to highlight different strategies for small and large brands. Behavioural analysis and papers in the past have emphasised the strength and tendency towards large brands without offering insight into small brand strategies.

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if and when brick-and-mortar retailers should include niche brands in their category assortments.

The authors empirically analyze the category performance implications of focusing assortments on niche brands, at the expense of mainstream brands, in two product categories that have significant niche brand presence, namely, coffee and beer. The empirical data include sales, distribution and marketing tactical information for 50 US geographic markets from 2001–2011.

This research finds that a mainstream brand focus has a generally positive impact on category performance. However, a store’s strategic shift toward niche brands is beneficial in certain cases such as when a store has higher average prices or product form variety or when they are part of a powerful chain. The authors also find that a niche brand focus strategy is becoming increasingly viable over time for brick-and-mortar retailers.

Little is known about the parameters that might make a brick-and-mortar retailer more or less likely to pursue a niche brand focus strategy and when doing so might improve category performance. This analysis helps clarify the conditions under which a brick-and-mortar retailer may experience category level sales increases from focusing assortments on niche brands.

This study investigates the role that sports brands play in building group identity within a niche sports subculture, via research from two different trail running events. Participants exhibit some of the characteristics of an activity-based subculture of consumption, and brands play a role in building group identity. A key factor that drives a serious leisure pursuit to become an activity-based subculture of consumption is identified as high levels of socialising among participants.

Companies are now using social network sites (SNSs) within their marketing and brand-building activities. Twitter is the preferred SNS for creating brand communities, which offer companies many advantages. The purpose of this paper is to examine how individuals manage their competing needs for being affiliated (operationalized as personal and communal-brand connections) and for being seen as distinctive (operationalized as need for uniqueness (NFU)) when they are members of brand communities on Twitter. The authors have also analysed which type of brand community is able to achieve the balance between both needs, enhancing identification with the brand community.

A total of 318 valid responses were collected from three camera brand communities on Twitter. Messages (“tweets”) which included a link to an online questionnaire were sent to community members via Twitter. The authors examine the proposed model using structural equation modelling.

The authors demonstrate that consumers can satisfy their need for affiliation in brand communities created in Twitter. However, consumers can only reach a balance between the need for affiliation and the need for distinctiveness in brand communities built around niche brands. In contrast, the two needs work in opposition to shape identification in brand communities of big brands.

Optimal distinctiveness theory is used as a theoretical background for proposing how the antecedents of identification with the brand community enhance brand loyalty, with reference to the conflict between the individual’s needs for both distinctiveness and affiliation. Consumers’ identification with the brand community is proposed as a mediator to achieve brand loyalty in brand communities. Consumers reach this balance in brand communities built around a niche brand, where individuals with high NFU feel a high identification with the brand community. For big brands, as consumers’ NFU increases, their identification with the brand community and brand loyalty decreases.

Reverse innovation has been claimed to be the new emerging paradigm on how to succeed in emerging markets before spreading to more mature ones. This study aims to investigate how the BB cream, a concept that gave birth to one of the recent most impressive worldwide breakthrough products in cosmetics, was successfully integrated into a growth-through reverse innovation strategy by a Western leading brand, Garnier, in its domestic market.

Using a single case study design that combines brand and product levels of analysis, this paper examines how reverse innovation/BB cream contributed to (re)build perceptions of brand superiority. Data were extracted from the IRI Census Database (retail panel data) and from various other market sources. Additional insights were collected through semi-structured interviews with top executives. Some data, as they remain confidential, are not included in the paper.

Reverse innovation, although counter-intuitive regarding one of its fundamental assumptions (i.e. a low-cost/low-price strategy targeting price-sensitive consumers), can be used within a niche strategy to help brands develop a radically new offer that justifies a price premium. In this regard, it has to be managed step-by-step, from appropriation to exploitation and, finally, “extinction” in a given market segment.

Evidence is scarce on how Western companies/brands can integrate reverse innovation into their growth strategies. Further investigation is required on this emerging paradigm.

The case of Garnier BB cream invites marketing managers to think differently about where to look for opportunities and how to grow in stagnant markets. Moreover, the inherent latent value of a reverse innovation can serve to trade up the brand with both volume and value benefits, despite the common claim that it is related to a volume strategy. Thus, it opens the range of possibilities to escape commoditization and price wars.

This paper demonstrated that reverse innovation is not limited to the bottom of the market. The story of the BB cream concept, which has been appropriated and valorized by the leading cosmetic brand Garnier through a niche strategy, supports this argument. In addition, instead of viewing the niche strategy as a methodological/theoretical stage within the segmentation–targeting–positioning process, this case study highlights it as a creative process linked to innovation, which helps a brand and/or company to define a new territory within its market.

Identify the advantages and disadvantages of being first-to-market with a new product in a new environment. Explain the differences between business-to-business (B2B) and B2C markets, how they are interconnected in the speciality consumer good category and the challenges of developing a balanced strategy for both. Assess the competitive positions of different market players within both B2B and B2C. Analyse the role of brand in a niche market and how brand perception influences consumer behaviour. Identify and assess the different strategies for growth in an evolving niche market.

Origin Coffee is an artisan coffee roaster in South Africa grappling with rising competition, evolving consumer tastes and brand management concerns. As an early entrant, Origin largely created the niche market for speciality coffee across the country as both a retail coffee shop and a wholesale supplier to independent shops and businesses. This case follows founder Joel Singer 15 years later, in August 2020, as he contemplates how to scale the business, which has cultivated a brand synonymous with quality and excellence. Repeated efforts to expand the Origin footprint have met with disappointment and the business is still operating exclusively from its original roastery-café in Cape Town. Yet, the customer perception is that Origin is an industry giant – an established player that has outgrown its plucky upstart status. Origin also faces an increasingly crowded competitive landscape of local artisan roasters and larger chains. The case showcases the power of entrepreneurial innovation to cultivate a new niche market, as well as the risks of playing in a market that is very narrow and immature. Students are left to determine what Origin’s place in the future of South African coffee can and should be.

This case is appropriate for students enrolled in postgraduate programmes such as Master of Business Administration and Executive Education programmes. Although the case learnings are transferrable, this case will be particularly useful to students with interests in entrepreneurship, B2B and B2C market strategies and niche market strategy.

Teaching Notes are available for educators only.

CSS 11: Strategy.

This research paper aims to investigate detailed relationships between market selection and product positioning decisions and their associated short- and long-term product performance outcomes in the context of the music category: a cultural goods industry with high amounts of product introductions. Market selection decisions are defined by the size, competitiveness and age of market subcategories within an overall product category. Positioning decisions include where a product’s attributes are located spatially in the category (periphery versus the market center), whether a product resides within a single subcategory or spans multiple ones and what brand strategy (single versus co-branding) is used.

Data are from multiple sources for the US music industry (aka product category) from 1958 to 2019 to empirically test the hypotheses: genres (rock, blues, etc.) correspond to subcategories; artists to brands; and songs to products. Regression analyses are used.

A complex set of nuanced results are generated and reported, finding that key marketing decisions drive short-term new product success differently and frequently in opposing ways than long-term success. Launching into very new, well-established or very competitive markets leads to the strongest long-term success, despite less attractive short-run prospects. Positioning a product away from the market center and spanning subcategories similarly poses short-run challenges, but long-run returns. Brand collaborations have reverse effects. Short-run product success is found, overall, to be difficult to predict even with strong data inputs, which has substantial implications for how firms should manage portfolios of products in cultural goods industries. Long-run product success is considerably more predictable after short-run success is observed and accounted for.

While managers and firms in cultural goods industries have long relied on intuition to manage market selection and product positioning decisions, this research tests the hypothesis that objective data inputs and empirical modeling can better predict short- and long-run success of launched products. Specific insights on which song characteristics may be associated with success are found – as are more generalizable, industry-level results. In addition, by distinguishing between short- and long-run success, a more complete picture on how key decisions holistically affect product performance emerges. Many market selection and product positioning decisions have differential impacts across these two frames of reference.

The usual method of analysis of product attributes in marketing is to fit a multinomial logit model within a stated choice experiment, to determine the impact of attributes on the choice probability, which is equivalent to market share. The market share is intuitive and is based on each single choice in the study. However, revealed preference allows for a study into repeat purchase and loyalty, which can also be rich constructs for determining consumer preference.

The authors introduce a loyalty measure, polarisation, and show results based on a wine data set of revealed preference. Polarisation is a function of the beta binomial distribution (BBD) and can also be a function of the Dirichlet multinomial distribution (DMD). The DMD provides a standardised or average loyalty effect for each attribute (such as wine variety), and the BBD an individual effect for each attribute level (such as cabernet) within the attribute. While the DMD results provide a rich “first‐pass” of the data, it is the individual results which can classify levels as reinforcing, niche, or change‐of‐pace in nature, with subsequent different marketing implications. These implications are drawn out in this study.

Specifically, the DMD results show higher loyalty towards price and variety rather than to region and brand. The BBD results show that segmented preferences in the wine market are influenced more by the price attribute levels and that the two key single varietals in the red wine category tend to behave as reinforcing attribute levels with important marketing implications for small and large wine brands.

The authors extend the work of stated choice experiments into the realm of actual consumer purchase behaviour for wine. They also find that consumers’ repeat purchasing is based on attributes other than brand. This provides a useful platform for both researchers to further investigate loyalty/repurchasing using attributes as well as for marketing practitioners to better position their products to consumers.