India's cultural and social diversity as well vast diaspora offer tremendous opportunities for marketeers. There are plenty of markets within markets that can be tapped. Its about finding the perfect balance between the common thread that holds things together (National), as well as the unique strands that make up the thread (Regional)
Sunday, August 1, 2010
Second could yet win the race
Wonder in general why brands especially in the consumer electronic business are always in a hurry to be the first to introduce a product into the market just for the sake of being the 'First' hoping they could be market leaders, without thoroughly testing their launches for glitches and problems.
A customer is keen to get his hands on the snazzily marketed new 'first' that promises the best specs, game changing user experiences ,cutting edge design, etc and then ...once its out and, after the initial euphoria he notices that there are quite a few glitches that just dampen the ownership experience. Its no more a special feeling. It does affect one's trust with the brand and, in some cases could lead to brand rejection.The potential fall out of which is negative word of mouth publicity with his peer group.
At times its better to be patient,sort out the chinks in the armour and offer a robust,stable and memorable brand experience that builds not only trust but brand affection.Second could be first!
A customer is keen to get his hands on the snazzily marketed new 'first' that promises the best specs, game changing user experiences ,cutting edge design, etc and then ...once its out and, after the initial euphoria he notices that there are quite a few glitches that just dampen the ownership experience. Its no more a special feeling. It does affect one's trust with the brand and, in some cases could lead to brand rejection.The potential fall out of which is negative word of mouth publicity with his peer group.
At times its better to be patient,sort out the chinks in the armour and offer a robust,stable and memorable brand experience that builds not only trust but brand affection.Second could be first!
Saturday, July 31, 2010
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 ?
What is branding?
Often I meet potential clients who think they understand branding and most of them limit their understanding to a Brand Identity (logo), a tagline and well advertising. Their understanding is right to an extent.
My take - "A brand is best described as the sum of perceptions and feelings it evokes in a consumer's mind It's the mental picture they have about the business, what it means or says to them and what kind of value it does or does not offer.It's about the perceptions they have about its products, services, people and functioning.Its about how the brand will make things easier for them or about creating trust"
"Branding is about all the activities that the business undertakes both intrinsically and extrinsically that is focussed towards communicating, expressing and allowing the consumer to experience the brand"
"Branding is about all the activities that the business undertakes both intrinsically and extrinsically that is focussed towards communicating, expressing and allowing the consumer to experience the brand"
Lower prices don't always pay
I recently met a friend who was getting into a new venture and I got curious.
Me - "Wow that's great. Have you given branding a thought? "
Him -"yes, I already have a NAME for it..its called..............."
Me - "Great!! So what's so different about your band from so many others out there in the same sector?"
him - "We will be cheaper than the other options?"
Me - "How will you be cheaper?"
Him - "Our prices will be lower cause we will keep lower margins, lower input costs,lower......"
There ended our brief meeting as we both had to go our separate ways.
Why did I want to write about this? Well because I think there is a great lesson in this for those interested in setting up a business or venture.
If low prices and better quality and value, are going to be your USP in a business that is highly competitive both on pricing and supply, you better have a Walmart like market share that can be leveraged to arm twist suppliers for lower input prices.
The second aspect of lowering one's margin to provide value in terms of lower pricing is beneficial in the short term but in the long term can be killing. One may attract a lot of bookings and initial excitement but, pursuing such a strategy can be killing especially in the reality sector and in the long term. Why ? Competitors who already have ready to occupy inventory and better brand equity would then just reduce their prices and effectively neutralise the startup's strategy.
Secondly in such a scenario your brand would then have to lower its prices further to keep up and that's not a great feeling when you don't, have deep pockets and a considerable pricing/profit margin!
So what does one do? Well a cluttered, crowded, monotonous market always offers immense opportunity for differentiation and value through creating a niche offering or tapping a segment that has not been catered to, that would offer better margins and help build a reputation and differentiation in a crowded market
Me - "Wow that's great. Have you given branding a thought? "
Him -"yes, I already have a NAME for it..its called..............."
Me - "Great!! So what's so different about your band from so many others out there in the same sector?"
him - "We will be cheaper than the other options?"
Me - "How will you be cheaper?"
Him - "Our prices will be lower cause we will keep lower margins, lower input costs,lower......"
There ended our brief meeting as we both had to go our separate ways.
Why did I want to write about this? Well because I think there is a great lesson in this for those interested in setting up a business or venture.
If low prices and better quality and value, are going to be your USP in a business that is highly competitive both on pricing and supply, you better have a Walmart like market share that can be leveraged to arm twist suppliers for lower input prices.
The second aspect of lowering one's margin to provide value in terms of lower pricing is beneficial in the short term but in the long term can be killing. One may attract a lot of bookings and initial excitement but, pursuing such a strategy can be killing especially in the reality sector and in the long term. Why ? Competitors who already have ready to occupy inventory and better brand equity would then just reduce their prices and effectively neutralise the startup's strategy.
Secondly in such a scenario your brand would then have to lower its prices further to keep up and that's not a great feeling when you don't, have deep pockets and a considerable pricing/profit margin!
So what does one do? Well a cluttered, crowded, monotonous market always offers immense opportunity for differentiation and value through creating a niche offering or tapping a segment that has not been catered to, that would offer better margins and help build a reputation and differentiation in a crowded market
Wednesday, April 1, 2009
Thought
It never ceases to amaze me at the number of opportunities out there to be a successful entrepreneur. What is difficult though is taking the plunge. The fear of failure itself is one of the biggest deterrents.
Tuesday, March 31, 2009
Random branding 'gyaan'
Whether we like it or not, branding in a larger sense plays a critical role in our professional and personal lives. Knowingly or unknowingly it guides our decision making and the choices we make.
As humans we all share a fair amount of aversion to do something that is unknown or unfamiliar and in the process worry about adverse consequences. The degree of this aversion obviously varies and changes from person to person and depends on numerous factors including familiarity, frequency, and one’s risk appetite. However, we try to find ways to minimize the risk. More often than not, we tend to decide our course of action or choices after thorough consideration of alternatives, past experiences, repercussions, opinions and recommendations of people we trust and respect for their knowledge, experience and expertise.
Even in our personal relations, we associate ourselves with people who we relate to, in terms of values, outlooks, opinions and interests. Over a period of time through regular and positive interactions the acquaintances could blossom into friendships. In the process what have we done? We have developed trust and the same behaviour is exhibited with products (brands) that we buy frequently.
We even brand people and their personalities based on aspects such as appearance, behaviour, friendliness, knowledge, outlook, beliefs, attitudes, etc. and as an extension we look up to famous personalities and brands who share these values and inherently want to be seen in the same light.
People generally associate branding with visual or tangible aspects such as the ‘cool’ looking logo, the colours, the product packaging, advertising or the design. While they are important, and are tools meant for identification, communication and expression of the concept of branding, the actual exercise of branding is that portion of the iceberg which is unseen and hidden.
As a start up, do not ignore branding. It has and will continue to be a sustainable differentiator that will set you apart from the competition and over time drive sustainable competitive advantage, earning you goodwill, loyalty and ultimately profits.
If branding is ignored in a world that is ultra competitive, you increase the chances of your disappearance. The problem with most SMEs is that they wake up to branding as a last resort and by then it’s too late.
Unless your offering is completely unique, pioneering, not substitutable, impossible to economically replicate and of course can satisfy a need, the chances that there are more than a handful of competitors, vying for the consumer’s share of wallet is rather very high.
As a start up brand, look hard at your potential customers; understand their needs, concerns, perceptions and pain points. Identify ways in which your business can add incremental value in the short run, but redefine value in the long run. Become one with your customer.
In a larger sense identify a cause or a collection of causes that you can work towards, that will ultimately win you loyal consumers and profits. Ensure that this cause or set of causes are your guiding lights in every transaction, interaction, communication, agreement, partnership, and recruitment that you enter into. Every time you approach a rocky shoreline, these causes should guide you through safely.
Today, most consumer durable brands, luxury fashion labels outsource manufacturing. Are we even concerned about who actually manufactures them? What we are ultimately bothered of is that we bought into what ‘Levis’, ‘Nike’, ‘Louis Vuitton’, ‘Apple’ , etc stand for and how they make us feel. Remember winning brands have from their inception strived towards being singularly customer centric and in turn brand centric. At a basic level they satisfy a physical/tangible need or utility, but more importantly they satisfy an emotional need. Iconic brands have successfully achieved this consistently.
Today’s consumers are tech savvy and leverage the world wide web to research brands and their offerings, prices, customer opinions and experiences and in a sense these also play a role in shaping their perceptions of brands. As an entrepreneur one must not ignore this facet, as your brand is what the customer thinks it is, even if you say it isn’t. Customers are an intelligent lot and know what they want and would trust another customer’s opinion more than an advertisement.
It is critical to ensure that there is a brand centric coherence in all your decisions, actions and communication that is in line with your brand’s promise and cause. This should flow through the organization and be demonstrated at every customer touch point consistently.
Ever increasing demand across categories has led to numerous products or services that vie for the customer’s attention and then hopefully, his or her spend. It’s got so severe that brands compete just to be seen on store shelves!
So how will you influence the customer to buy your product or service from the multitude of choice? Is advertising the answer? Is marketing the answer? Is price the answer? Is the product the answer? Or is there something else? I’m afraid each one is not an answer on its own. However the combination of these factors could give an answer. Why do I use the word ‘could’ you wonder? A winner will emerge only if the product, the positioning,F the advertising, the marketing and customer servicing is in sync with the bigger idea of the cause and will realize into sales only when it’s ‘in sync’ with the cause (needs, concerns, problems) of the person who wants to spend his/her hard earned money.
It’s about working on every aspect of the business model to drive coherence across operations, to ensure that they are all aligned at each and every stage with the ultimate cause, vision and mission of the organization and its brand. This according to me is branding and brand strategy. Though it sounds simple, it requires a sustained and focused effort consistently over time.
Organisations, to succeed in a world where learning curves are getting shorter at a faster rate than in the past, will have to be collectively passionate about their brands and customers. They will have to be collectively creative and agile in finding solutions to meet specific demands. Every employee will have to be a ‘brand champion’ in its truest sense, with his ear to the ground and an eye on the horizon.
To sum it all up, I would like to quote a few lines from Subroto Bagchi’s book The High Performance Entrepreneur - ‘A brand is often what you leave behind. Products change, services change, methodologies, processes, tools, people – everything changes, but it is the brand that lives on to attract customers, employees and suppliers over time and help create value.’
As humans we all share a fair amount of aversion to do something that is unknown or unfamiliar and in the process worry about adverse consequences. The degree of this aversion obviously varies and changes from person to person and depends on numerous factors including familiarity, frequency, and one’s risk appetite. However, we try to find ways to minimize the risk. More often than not, we tend to decide our course of action or choices after thorough consideration of alternatives, past experiences, repercussions, opinions and recommendations of people we trust and respect for their knowledge, experience and expertise.
Even in our personal relations, we associate ourselves with people who we relate to, in terms of values, outlooks, opinions and interests. Over a period of time through regular and positive interactions the acquaintances could blossom into friendships. In the process what have we done? We have developed trust and the same behaviour is exhibited with products (brands) that we buy frequently.
We even brand people and their personalities based on aspects such as appearance, behaviour, friendliness, knowledge, outlook, beliefs, attitudes, etc. and as an extension we look up to famous personalities and brands who share these values and inherently want to be seen in the same light.
People generally associate branding with visual or tangible aspects such as the ‘cool’ looking logo, the colours, the product packaging, advertising or the design. While they are important, and are tools meant for identification, communication and expression of the concept of branding, the actual exercise of branding is that portion of the iceberg which is unseen and hidden.
As a start up, do not ignore branding. It has and will continue to be a sustainable differentiator that will set you apart from the competition and over time drive sustainable competitive advantage, earning you goodwill, loyalty and ultimately profits.
If branding is ignored in a world that is ultra competitive, you increase the chances of your disappearance. The problem with most SMEs is that they wake up to branding as a last resort and by then it’s too late.
Unless your offering is completely unique, pioneering, not substitutable, impossible to economically replicate and of course can satisfy a need, the chances that there are more than a handful of competitors, vying for the consumer’s share of wallet is rather very high.
As a start up brand, look hard at your potential customers; understand their needs, concerns, perceptions and pain points. Identify ways in which your business can add incremental value in the short run, but redefine value in the long run. Become one with your customer.
In a larger sense identify a cause or a collection of causes that you can work towards, that will ultimately win you loyal consumers and profits. Ensure that this cause or set of causes are your guiding lights in every transaction, interaction, communication, agreement, partnership, and recruitment that you enter into. Every time you approach a rocky shoreline, these causes should guide you through safely.
Today, most consumer durable brands, luxury fashion labels outsource manufacturing. Are we even concerned about who actually manufactures them? What we are ultimately bothered of is that we bought into what ‘Levis’, ‘Nike’, ‘Louis Vuitton’, ‘Apple’ , etc stand for and how they make us feel. Remember winning brands have from their inception strived towards being singularly customer centric and in turn brand centric. At a basic level they satisfy a physical/tangible need or utility, but more importantly they satisfy an emotional need. Iconic brands have successfully achieved this consistently.
Today’s consumers are tech savvy and leverage the world wide web to research brands and their offerings, prices, customer opinions and experiences and in a sense these also play a role in shaping their perceptions of brands. As an entrepreneur one must not ignore this facet, as your brand is what the customer thinks it is, even if you say it isn’t. Customers are an intelligent lot and know what they want and would trust another customer’s opinion more than an advertisement.
It is critical to ensure that there is a brand centric coherence in all your decisions, actions and communication that is in line with your brand’s promise and cause. This should flow through the organization and be demonstrated at every customer touch point consistently.
Ever increasing demand across categories has led to numerous products or services that vie for the customer’s attention and then hopefully, his or her spend. It’s got so severe that brands compete just to be seen on store shelves!
So how will you influence the customer to buy your product or service from the multitude of choice? Is advertising the answer? Is marketing the answer? Is price the answer? Is the product the answer? Or is there something else? I’m afraid each one is not an answer on its own. However the combination of these factors could give an answer. Why do I use the word ‘could’ you wonder? A winner will emerge only if the product, the positioning,F the advertising, the marketing and customer servicing is in sync with the bigger idea of the cause and will realize into sales only when it’s ‘in sync’ with the cause (needs, concerns, problems) of the person who wants to spend his/her hard earned money.
It’s about working on every aspect of the business model to drive coherence across operations, to ensure that they are all aligned at each and every stage with the ultimate cause, vision and mission of the organization and its brand. This according to me is branding and brand strategy. Though it sounds simple, it requires a sustained and focused effort consistently over time.
Organisations, to succeed in a world where learning curves are getting shorter at a faster rate than in the past, will have to be collectively passionate about their brands and customers. They will have to be collectively creative and agile in finding solutions to meet specific demands. Every employee will have to be a ‘brand champion’ in its truest sense, with his ear to the ground and an eye on the horizon.
To sum it all up, I would like to quote a few lines from Subroto Bagchi’s book The High Performance Entrepreneur - ‘A brand is often what you leave behind. Products change, services change, methodologies, processes, tools, people – everything changes, but it is the brand that lives on to attract customers, employees and suppliers over time and help create value.’
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