Discount Sales, Discounting Brands

I recently met a retailer friend and as usual I chewed his brains on the importance of having a strategic brand vision in place for his family controlled chain of stores, for its long term survival and to avoid falling into the trap of 'Discount Sales' that seem to have plagued the retail sector, where the leader will be the one who can offer the lowest price.

During our interaction he had a few valid points about how the entire mid segment retail sector and specifically the category he is in is plagued by discount sales and he has no choice but to follow suit as competitors have been doing it and customers who walk in, walk out because they can get  the same item on sale at another store.
 
The category he is in fortunately DOES give him the opportunity  for his brand to differentiate itself from the rest of the pack.  So how does one get out of this rut? A common denominator for this is FOCUS!

Denizen by...... Levis????

While walking around a mall saw a lot of marketing collateral announcing the launch of the Denizen brand with a youth icon Bollywood actor as its brand ambassador (seems like it’s the defacto norm these days).

 From the collateral and communication Denizen comes across as just another apparel brand with a generic youth focus, till I heard a radio jingle that caught my attention to the fact that it was a sub-brand launched by Levis!!  Just like the Signature brand a few years ago, positioned as an affordable alternative for the youth to drive growth and market share.  

Seems like brand Denizen’s focus and idea will be about fit and affordability (very functional and basic differentiators) at least that's what the ads communicate. It is banking big time on leveraging the equity of the brand - Levis to gain attention and traction.How very uninspiring and unimaginative is that? The very fact that the Levis suffix is being beaten aloud just reinforces my belief that the marketers are not very sure of the brand concept with Denizen and are in some way hoping that the Levis association will attract the youth.   

Will this strategy that was tried earlier and failed work again for Levis? Only time will tell but my gut tells me it will not. Hope Levis India has got its research and brand strategy right. It has the potential of diluting Levis’s brand equity.

The way I look at it, the brand Levis in a sense is the gold standard when it comes to premium Jeans/denim wear for India’s aspiration driven and brand conscious youth. It’s the original denim brand with a powerful story that lends authenticity. 

 As a brand conscious and aware undergraduate, I always looked forward to being able to afford my first pair. Nothing else could substitute it. The very fact that I could not afford it added to its appeal and longed for the day I’d own one or be gifted one.  I am pretty sure it still evokes the same emotional appeal from today’s youth. So why would one want to be seen in what is considered a poorer and functional child of the gold standard? Would it evoke the same aspirations and premium feel that a pair of Levis would? 

Fastrack

It’s one Indian retail brand that I admire for its focus and brand communication effort. It has so far successfully stuck to extending its product line from watches to other product lines that resonate with its core TG, the college going youth who aspires for a brand that screams out hip, international, and is in sync with the fast and active urban lifestyle of today. 

The idea of getting into eye wear and the timing of it was brilliant and the communication was right on target  because there wasn’t any national or international brand of repute that offered affordable yet stylish eyewear targeting the middle class college going youth, who was keen on exhibiting a young, stylish, and international side of him.  Most eyewear brands and watch brands that focussed on the TG were international brands such as Swatch and Ray Ban which were out of reach of the pocket money dependent middle class teenager.

I just hope they continue with their focus without over extending their product lines or over stretching their communication theme or over doing their discount sales.

Services Brading - It's all about the experience and moments

A decade or  more ago while still in college, debit cards had just appeared on the scene and were making inroads into the urban  banking space in India. I wanted to be an early adaptor (B'lore and New York were the first cities that the Debit card was being trialled out in) and try out the whole Any time money aspect of Banking.

The promise of not having to wait long lines at banks, deal with unfriendly clerks,specific timings, was good enough for me.I got myself a citibank card  and put it the princely savings of Rs.500 into it.  If I recall correctly a few years later apart from citi the only other bank that was aggressively expanding its ATM network across B'lore was Corporation Bank. It had its ATMs at  key locations across the city and I decided getting a debit card from Corpn Bank would be a good idea.

However the thought of transacting with a 'PSU' bank and aspects such as indifferent officers, unfriendly attitudes,never ending procedures,etc  did give me second thoughts. In any case I decided to to give it a shot. As I walked in, the place it didn't actually feel like a PSU bank! There was a positive buzz, the staff were courteous, attentive, and for the most part they all had smiles on their faces as they interacted with colleagues or customers alike. Was I in the right place? Was this a PSU bank. The procedure was hassle free, the service experience was unexpectedly great and I was happy. Here was a brand that actually functioning like a Pvt. Sector Bank.

A few days back, I walked into the same Branch after five years (my second or third visit ever) and was eager to see if the environment was still the same as it was in those days. The staff had changed, so had the interiors and the equipment, but what had not changed was the friendly attitude and efficient  service.

A lady customer was being attended to like she was a relative or close friend, there was friendly banter and smiles, another clerk happily asked me if I needed any assistance and willingly obliged with a smile when I told her my pass book needs to be updated. It was all done in a matter of two minutes and a very pleasant two minutes I must say.I headed back with a positive impression and told myself that I need to bank more often with this Bank and Branch!!

It was such a sea change from UCO bank that I regularly bank with where the staff are indifferent and seem to be functioning in a different era. 

The management and staff at Corporation Bank definitely deserve appreciation for doing the simple things so well, for ensuring a positive and customer focussed service environment is established and is consistently delivered upon, which sets the Band apart from the rest who only tend to refer to friendly service in their ads.

E book pricing

Wonder why electronic versions of books cost the same as the paper versions. Shouldn't the e-versions cost lesser as there's no need for printing, packaging, transportation, shipping, and other associated costs ?