In the competitive world when whole world is shifting there manufacturing bases to low cost country . Is it possible that i can charge Price Premium .. Lot of mix reactions come for this .. Let us take example of Brands those are made in Premium demanding countries as Japan , Sweden or Europe .. As always lets get back to consumer electronics industry... can Sony charge premium on Samsung .. or LG on price .. sometime the ATL and BTL has its strong effect.
Brands such as Sony can still charge premium to an extent in countries where people are very Brand conscious, but in markets or products where samsung or Sony have same technology and resources how can Sony sustain its Prices ..
Here comes a very good stage to analyze that ''What is my Purpose to be in business and what are my future action to maximize my revenues ''. I believe although many things are talked about but Profits are the main purpose of any business..
So if my customer has become very educated and he knows what he wants and is able to differntiate or relate any type of technology of the product that he wants then Premium should be charged only for Technology that is innovative new not on the ''Made In Country'' premium.
Because even if it is made in japan but is providing me the same type of fuctions and quality that a brand is non - made in Japan ..why should i pay premium.
We have to realize that ''Value Addition is what can be charged in present world''
There is nothing left and marketing has its huge role to play.
With the changing technology and customer awareness it is the wholesome task of marketing to communicate the value addition clearly to customer.. it is what we are charging premium for ..
sometime the communication talks about the technology only.. if my camera is having xyz rays and abc projections what does it mean to customer .. Pictorial description should also be very to the point and clear , Pictorial presentation can be interperated in many ways. it should be crystal clear and also supported with text.
Thus i think it is Technology or Innovation that should be charged premium not the country of origin.
Monday, 21 April 2008
Saturday, 12 April 2008
Inflation - Growth - Marketing
Marketing as i have always believed has a very clear dependence on the economics of the market.
Now lets see what is happening in India.
Inflation is highest in last 3 years. It did touch high last year but it was different,because
1> It was the growth with inflation
2>World economy was fairly stable
3>Dollar was not this weak.
This time the inflation is high at the time when Indian economy is slowing down a bit.Thats worry.
{I am making basis for Marketing Discussion :) }
Throughout the world economies and world banks are cutting interest rates so that investor confidence is maintained and in India RBI might increase the rated on 26th this month.This is not only signal that we are doing something different but also that the corporate world in India is looking at something else.
Indian corporate is still upbeat but inflation has hit them hard.Particularly brands that are into low margin business such as consumer electronics would be hit most,This is because that the cost of a unit production or procurement has gone up but the final price has to be maintained as the competition is tough. This is the point where a corporate see its break down and it all starts with reduced marketing budgets , then comes to jobs , and finally eats up the business.
Marketing Budgets that are small in this type of situation has to be most effectively used.The money wasted at this point can cost company a lot.
India been free economy have all the big brands and also local brands that serve the market.Problem comes when my production cost is almost double of yours and i also have to maintain a substantial budget for marketing as i am a global brand and u are local.This point needs immediate attention , it is important to educate consumer what are the USPs of my brand in place of local brand.
Why in this increasing cost environment consumer should pay 10$ more than the local brand.
India is a very interesting case study for Marketing because there are extremes in marketing .
One segment fully relies on celebrities and other fully depend on creativity.
Now let me link it to economics .In the environment when prices are skyrocketing the impact of celebrity would be less as compared to creative communication.this is because the celebrity usp is that consumer aspires to be him and get related to brand ,but when the share of pocket is down , moral is down thus the aspiration.
So economics will certainly measure the extent of importance of communication and marketing in a particular market.
Cheers!!
Edward Bulwer-Lytton:
"Talent does what it can; genius does what it must."
Now lets see what is happening in India.
Inflation is highest in last 3 years. It did touch high last year but it was different,because
1> It was the growth with inflation
2>World economy was fairly stable
3>Dollar was not this weak.
This time the inflation is high at the time when Indian economy is slowing down a bit.Thats worry.
{I am making basis for Marketing Discussion :) }
Throughout the world economies and world banks are cutting interest rates so that investor confidence is maintained and in India RBI might increase the rated on 26th this month.This is not only signal that we are doing something different but also that the corporate world in India is looking at something else.
Indian corporate is still upbeat but inflation has hit them hard.Particularly brands that are into low margin business such as consumer electronics would be hit most,This is because that the cost of a unit production or procurement has gone up but the final price has to be maintained as the competition is tough. This is the point where a corporate see its break down and it all starts with reduced marketing budgets , then comes to jobs , and finally eats up the business.
Marketing Budgets that are small in this type of situation has to be most effectively used.The money wasted at this point can cost company a lot.
India been free economy have all the big brands and also local brands that serve the market.Problem comes when my production cost is almost double of yours and i also have to maintain a substantial budget for marketing as i am a global brand and u are local.This point needs immediate attention , it is important to educate consumer what are the USPs of my brand in place of local brand.
Why in this increasing cost environment consumer should pay 10$ more than the local brand.
India is a very interesting case study for Marketing because there are extremes in marketing .
One segment fully relies on celebrities and other fully depend on creativity.
Now let me link it to economics .In the environment when prices are skyrocketing the impact of celebrity would be less as compared to creative communication.this is because the celebrity usp is that consumer aspires to be him and get related to brand ,but when the share of pocket is down , moral is down thus the aspiration.
So economics will certainly measure the extent of importance of communication and marketing in a particular market.
Cheers!!
Edward Bulwer-Lytton:
"Talent does what it can; genius does what it must."
Saturday, 5 April 2008
Todays Customer - How to impress!!
Customer these days are not only well informed but also know exactly what they need. This era will witness the development and birth of innovative ways to impress consumer. The trend says it all.
Now if you see successful advertisements you will feel the touch of emotions.
S-Kumar was one of the first to start with its communication being targeted to Family of S-Kumar.Everyone in family wears S-Kumar.
Now a days . Airtel is the frontrunner's in such advertisements, recent communication of them which shows how a father at work helps her daughter to draw signifies the relation that a customer shares with Airtel Network.. In whole advertisement Airtel comes at the last. This is where world is heading today.
Customer will not get impressed by the technical accomplishment of brand as all the brands will offer same but the connectivity to customer emotion is very important.I personally admire the creativity that has to do with emotions.
Now as coming from the consumer durable marketing background i feel lot of it is still not harnessed in proper way.There was a time in india when Whirlpool title song of ''whirlpool whirlpool '' was every home rhyme but now the instant impression and connection has become the rule of game.
Few suggestions can be :
1> Setting : Home
key players : Mother , Daughter
Script : Mother when comes from office see all her clothes washed and tries to find how it is possible and finds out that her daughter has done it for her.
Impression : Product - Washing Machine
2> Setting : Home
Key players : Father , Son
Script : Father is taking his son to school and tries to shield him from all the dust so that he is safe .When he comes home he is comfortable .
Imprssion : Product Ac , Message - New abc AC takes care of all the dust in the home and you need not worry about the health of your loved ones.
There can be numerous advertisements like this and can create all the impression that is required. Although the Market also defines the nature of communication. For example in a very price sensitive market for short term goals the communication can be fully pricing communication. But one must not forget that the brand image and the value that a brand add to a customer has its own importance and can not be ignored.
Lot of the times we only concentrate on the pricing differential which can be detrimental for a brand in ling run.
This is important that marketers think about it and make their decisions not only based on short term goals but also looking at the total future of the BRAND.
Now if you see successful advertisements you will feel the touch of emotions.
S-Kumar was one of the first to start with its communication being targeted to Family of S-Kumar.Everyone in family wears S-Kumar.
Now a days . Airtel is the frontrunner's in such advertisements, recent communication of them which shows how a father at work helps her daughter to draw signifies the relation that a customer shares with Airtel Network.. In whole advertisement Airtel comes at the last. This is where world is heading today.
Customer will not get impressed by the technical accomplishment of brand as all the brands will offer same but the connectivity to customer emotion is very important.I personally admire the creativity that has to do with emotions.
Now as coming from the consumer durable marketing background i feel lot of it is still not harnessed in proper way.There was a time in india when Whirlpool title song of ''whirlpool whirlpool '' was every home rhyme but now the instant impression and connection has become the rule of game.
Few suggestions can be :
1> Setting : Home
key players : Mother , Daughter
Script : Mother when comes from office see all her clothes washed and tries to find how it is possible and finds out that her daughter has done it for her.
Impression : Product - Washing Machine
2> Setting : Home
Key players : Father , Son
Script : Father is taking his son to school and tries to shield him from all the dust so that he is safe .When he comes home he is comfortable .
Imprssion : Product Ac , Message - New abc AC takes care of all the dust in the home and you need not worry about the health of your loved ones.
There can be numerous advertisements like this and can create all the impression that is required. Although the Market also defines the nature of communication. For example in a very price sensitive market for short term goals the communication can be fully pricing communication. But one must not forget that the brand image and the value that a brand add to a customer has its own importance and can not be ignored.
Lot of the times we only concentrate on the pricing differential which can be detrimental for a brand in ling run.
This is important that marketers think about it and make their decisions not only based on short term goals but also looking at the total future of the BRAND.
Subscribe to:
Posts (Atom)