Robert Sayles: Everybody knows we're expensive, but can we be reassuringly expensive?

The driving force behind high status brand marketing is the knowledge that people aspire to brands which project wealth and status. Designer labels such as Nike, Boss, Versace, Rolex and Chanel are examples of 'must have' brands, flaunted by the affluent and coveted by those who crave the image such brands afford.

High status brands carry a premium price, if they didn't they wouldn't be worth having would they?

Some years ago now InBev utilised the concept of 'product perception' to superb effect by developing one of the best known and most effective marketing strategies witnessed in our industry during recent times; the concept of "reassuringly expensive".

The strategy behind the marketing was simple; convince the consumer that the high cost of the product provided reassurance, told them that they were purchasing quality.

It was a strategy that worked remarkably well for many years; in more recent times however, the concept of 'reassuringly expensive' has been substantially undermined by the widespread availability of the product at knockdown prices through the off trade.

The net result is that Stella has suffered 'brand devaluation'; it is no longer perceived to be a premier brand; after all, if it were, it wouldn't be sitting in the shopping trolley next to the eggs and bread would it?

This gives pubs something of a problem as many of us continue to market what is now commonly seen as a 'cheap' brand at a premium price. Customers are understandably becoming increasingly resentful of the high price tag; the novelty of 'reassuringly expensive' has long since worn off.

Is it therefore not time for us to consider a move away from Stella and other mainstream lagers that have been similarly 'devalued'? Would this not help to counteract popular public perception that we are merely flogging 'cheap' brands at an extortionate price?

For many, pubs are not perceived as being reassuringly expensive, merely expensive and therein lies the problem; we need to find ways of convincing customers that we offer good value.

Can you envisage a time when you ask your pubco to remove the likes of Carling, Stella and Carlsberg from the bar?

'Replace them with what?' I hear you say. Leffe, Hoegaarden or Peroni perhaps?

It is not as implausible as it sounds. Pubs, particularly those at the upper end of the market, are increasingly focusing on brand diversification. On a recent jaunt to London I visited a number of outlets offering a vast array of lagers; needless to say brands such as Stella, Carling and Carlsberg were all conspicuous by their absence.

The 'new kids on the block' are 'reassuringly expensive' yet all appear to enjoy positive brand perception; primarily because none have been tainted by unfavourable comparisons with off trade prices.

"If I don't have Carling my customers will walk out" I hear you say. Will they? Is it not possible that they might come to appreciate the subtler flavours offered by Hoegaarden and quickly forget their long time allegiances to former favourites, particularly if these new brands are perceived as offering better value?

Just as importantly, will they not feel they are getting a "drinking experience" unlikely to be replicated at home and thus feel somewhat less resentful about parting with their money?

In recent years the bottled lager offering has changed beyond recognition thanks to an influx of exotic brands from all parts of the globe. Why has the draught market not witnessed a similar revolution? Some have suggested that we as publicans are a little conservative, somewhat more fearful of change than our customers perhaps?

I acknowledge that brand diversification will not be suitable for everybody, after all, for many of you the Stella and Carling pumps are part of the fixtures and fittings are they not? Life without them would be almost unthinkable, would it not?

Whilst some of you will undoubtedly conclude this is the case, others have decided that the best place for these former icons is the skip, a trend that appears to be growing. Those that have made the switch report a smooth transition with positive feedback from customers.

If a recent survey by CGA Strategy is anything to go by then perhaps we shouldn't be too reticent about diversifying our offering. Research has shown that customer drinking habits are currently undergoing their biggest change for more than a decade.

People are going out less often, but when they do they want to enjoy something a little bit pricier, a little bit special. Going forward, I suspect that this will become a growing trend.

The next question is of course how much support pubcos will provide to those who wish to diversify their offering? I suspect they will certainly need to 'up their game' by broadening their existing range of products.

It shouldn't be a problem should it? After all, they are our 'partners', aren't they?

Consider this; if the price rises witnessed since 2005 are replicated in the next five years then £4 a pint will be the norm for many pubs. At that price, going to the pub will for many be a 'treat' and when they get there they will invariably want something they can't find in the fridge at home!

'Reassuringly expensive' may ultimately therefore be the road we all have to go down!