Masstige brands - Prestige brands for the masses (2024)

Introduction

We have heard of brands like Gucci, Louis Vuitton, Chanel, Dior, BMW, Hilton etc., in the luxury segment, and we have heard of brands like Max, McDonald's, Maruti-Suzuki, Nivea etc. in the mass market category. In the sweet spot between these two, i.e., between the mass and the class, are ‘masstige’ brands that offer prestige to the masses, thus the name masstige. These brands are also known as new-luxury brands since they bring in affordability and availability in the mass market to luxury goods and services. (Ajay Kumar 2019).

Let us take the example of a cup of coffee. At the Taj Sea Lounge restaurant in Mumbai, a cup of hot tea commands a premium price in the range of INR 500 to 650(TAJ Sea Lounge, Mumbai n.d.), at Starbucks between INR 225 and 300 (Eazydiner n.d.) and McDonald's between INR 150 to 192(MenuPrice.Co n.d.) ((MenuPrice.Co n.d.). Thus, positioned between the premium of the Taj and the mass of McDonald's, is the masstige brand Starbucks.

How did this phenomenon happen?

The idea of masstige brands came about because of two trends:

1.People around the globe were gaining access to more disposable income. In India alone, the disposable income has seen constant growth over the past 25 years and is expected to reach around INR 24 crores by 2023(Trading Economics n.d.). With increased purchasing power, more consumers started to buy luxury goods and services to seek a ‘prestige’ status.

(Trading Economics n.d.)

2. Manufacturers started downward extensions of their brands. An example is when Ford adopted this strategy to manage Jaguar. Consumers could now afford many products that were too expensive for them before. Thus, there was a shift in what luxury meant. Initially, it was only meant for the lucky few and had a rarity factor associated with it. Now with manufacturers doing downward extensions, it was the democratisation of luxury.

The fact that luxury was no longer a far-fetching dream but a reachable reality increased the consumption of these downward-extended/ masstige goods and services. This was a massive opportunity for the marketers to capture a wider audience and increase profit (Ajay Kumar 2019).

So, what is the masstige positioning strategy?

The masstige positioning strategy is pricing products just slightly above those of comparable mid-range products to reach a wider audience. This is an innovative strategy since it combines a successful prestige position with little to no brand dilution.

The strategy can be depicted as follows:

As can be seen from the figure, the perceived prestige of the new-luxury/masstige brands is much closer to that of traditional luxury brands and much higher than that of the middle-range brands. Comparing it with the price of these brands, we can see that the new luxury/masstige brands are much closer to the middle-range brands than the traditional luxury brands(Yann Truong 2009).

“According to masstige theoretical model, brands which succeed in building mass prestige and brand value can charge high prices from the consumers and consumers are also willing to pay relatively higher prices for such brands compared to mass brands.”(Ajay Kumar 2019)

Measuring masstige marketing

To understand the effectiveness of masstige marketing across different countries/states/districts/cities, the Masstige Mean Score Scale (MMSS) has been developed. Individuals comprising a sample of customers or potential customers rate the brand on a scale from 1 to 7 based on ten questions (Annexure A). The mean score for each question is calculated, and the sum of the mean scores gives a value between 10 and 70. Higher the score, the greater is the masstige value. The scores are then compared across different countries/states/districts/cities where the brand is located to understand the effectiveness of the marketing. The scores can also be calculated and compared for different brands within the same industry(Paul 2015).

Understanding the score:

1.MMS of 60 – the firm has created a ‘top of the mind’ brand based on mass prestige

2.MMS between 50 and 60 – the firm has created a successful brand based on masstige marketing, but it is not a ‘top of the mine’ brand

3.MMS between 40 and 50 – the firm has not been successful in creating a brand based on masstige marketing but can achieve it in the long run

4.MMS between 30 and 40 – the brand is not accepted well in that particular market

5.MMS between 10 and 30 – the firm has failed to achieve mass prestige in that market

How do you develop a masstige brand?

According to the paper published by Kumar, Paul and Unnithan (Ajay Kumar 2019), the marketing mix to be followed to develop a masstige brand is shown below:

(Ajay Kumar 2019)

According to the authors, the product/ service must be innovative and differentiated as a masstige from the moment it is launched. The product should be able to communicate prestige to the customers in terms of looks, quality and feel. Consequently, the product must also command a high price. As mentioned earlier, the pricing strategy should be such that it is higher than middle-range brands but not as high as the luxury brands. Once a price has been fixed, it is important that further changes be avoided since experimentation with prices will bring about confusion in the minds of the consumers about the actual positioning of the product, which might lead to a change in the perceived value of the product. Next, the place where the product needs to be sold needs to be identified. The product should be distributed through a selective and controlled environment along with direct marketing. Care should be taken to avoid mass-market penetration since then the product will lose its appeal. Finally, the product should be promoted using premium packaging, by selective endorsers and on selective communication channels.

It should be noted that the 4Ps do not work independently, and changes to anyone will cause repercussions on the others.

Conclusion

Masstige marketing is a phenomenon that has been gaining popularity ever since Michael J. SilversteinandNeil Fiske introduced it in their report titled ‘Luxury for the masses’ in the Harvard Business Review back in 2003(Michael J Silverstein 2003). It has interested the middle-class individuals who crave the 'prestige' status and product/service providers who are looking to broaden their target audience alike.

Though the current research around masstige speaks about the marketing aspects of developing a masstige brand, marketers need to look beyond just the 4Ps. Would a consumer looking for a masstige brand be comfortable with just a good product, priced above the mass-market prices, endorsed by a celebrity in a premium setting alone? Well, not likely. Many consumers might be looking for service, logistics efficiency, knowledgeable personnel etc., which are at par with luxury brands. Referring back to the coffee example, it’s far more fashionable to be spotted drinking Starbucks coffee because of the overall experience provided by the brand rather than just the coffee. Thus, marketers of masstige may have to look beyond the marketing mix and broaden their perspective into domains such as consumer behaviour, service efficiency and consumer experience.

Works Cited

Ajay Kumar, Justin Paul, Anadakuttan B. Unnithan. 2019. Journal of Business Research. https://www.sciencedirect.com/science/article/pii/S0148296319305557#b0030.

Eazydiner. n.d. Starbucks Coffee Menu. https://www.eazydiner.com/mumbai/starbucks-coffee-fort-221416/menu.

Michael J Silverstein, Neil Fiske. 2003. HBR Luxury for the masses. April. https://hbr.org/2003/04/luxury-for-the-masses.

Paul, Justin. 2015. Masstige marketing redefined and mapped: Introducing a pyramid model and MMS measure. August. https://www.emerald.com/insight/content/doi/10.1108/MIP-02-2014-0028/full/html.

Statista. 2021. Households by annual income brackets India 2010-2025. March. https://www.statista.com/statistics/482584/india-households-by-annual-income/#statisticContainer.

TAJ Sea Lounge, Mumbai. n.d. Sea Lounge diaries. https://www.tajhotels.com/content/dam/luxury/hotels/Taj_Mahal_Mumbai/documents/Sea%20Lounge%20Ala%20Carte%20Menu.pdf.

Trading Economics. n.d. India Total Disposable Personal Income. https://tradingeconomics.com/india/disposable-personal-income#:~:text=Disposable%20Personal%20Income%20in%20India%20averaged%2027894688.17%20INR%20Million%20from,91540%20INR%20Million%20in%201950.&text=India%20Total%20Disposable%20Personal%20Income%20%2D%.

Yann Truong, Rod Mccoll, Phillip J.Kitchen. 2009. New luxury brand positioning and the emergence of Masstige brands. March. https://www.researchgate.net/publication/247478620_New_luxury_brand_positioning_and_the_emergence_of_Masstige_brands.

Zomato. n.d. McCafe by McDonald's. https://www.zomato.com/mumbai/mccafe-by-mcdonalds-fort/order.

Annexure A

(Paul 2015)