The Prominence of the Budget Brand

And the subsequent rise of the Premium Budget Segment.

The dominance of the middle class market and the requirements of a cost efficient but brand conscious Millennial segment, has led plenty of names to adopt a different strategy when it comes to their budget line. Lenovo has made a huge dent in the mobile phone market with their Moto G series and the same could be said about Huawei's Honor line. The beauty of this is that the products are not promoted in a manner that was associated with budget brands in the past. Feature rich, fashionable and built around positive & colourful emotions, it's easy to confuse these advertisements with content that was specifically created for premium brands.

This change in how a lower cost brand is perceived is not restricted to the mobile phone segment alone. The communication strategy of labels in different industries ranging from clothes (hello ,new look ) to food has transformed in recent times. Taking the latter into consideration, McDonald's insistence on promoting its McCafe subrand, is a prime example of the change we are witnessing in the marketing world.

It's not just big names that are incorporating this strategy. Low cost start ups are also looking to find success in this segment. If you're a resident of the UAE, you will be no stranger to its chai culture. Thanks to the roaring success of Fili in the region, there are chai kiosks popping up almost on a daily basis. Unlike traditional "cafeterias", the new ventures are focusing on effective branding and communication strategies to aid their low cost operations, and in turn, hoping to ultimately turn their label into a success story. Borrowing elements from traditional chaiwalas, and amalgamating them with components from cafes, this "premium budget" way of tailoring a marketing & communication strategy has found a strong foothold in the region.

Having found success in the middle class market, and having already made an impact in the F&B industry, what comes next for the budget brands?

Chai Stop concept.