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.
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The very fact that a marketer of a white goods corporation has his life based on an excel sheet shows that no matter how hard a company tries to differentiate its brand by using jargons, like you said, the customer is intelligent enough to look through the gas and make an informed decision.
and this is when a white good, which involves high customer involvement during purchase is deteriorated to something similar to an FMCG product.
So in-effective has the company become in being more innovative about their brands. and why not? why should they invest in a whole lot of R&D when their margins are razor thin (that run in single digits)
And even where the company does innovate, the effort sometimes is never rewarded by the customer truly... take the case of the playstation 3. it is today by far the best console in the world. you may call it a semi-super-computer. there is NO game, till date, that has been able to truly harness the power of the PS3. but when the playstation 3 was launched, it bombed big time, since it was at an inasne price, but the experience it gave was probably worth the money. the PS3 prices have been reduced thrice after launch. sad no?
This means innovation is out of the window.. or rather over-innovation..
Then lets shift to design.. even in terms of design, the companies havent been able to make a breakthough in almost all white goods, and even if there is a design, it must have sadly gone unnoticed. I mean, think about it.. If painting the back of an LCD TV with stark red can be called a design by LG for its LCD TVs, then how pathetic would the importance of 'design' would be in the white goods market.
so innovation didnt really help out, design amendments dont seem to convince the customer.. gas marketing (made in... or xyz rays.. or abc projection) is perhaps the only way to sustain that image of the company.
or else, go through a fierce fight like you had between Blu-ray(supported by Sony) and HD-DVD and come out as a winner.
White goods fall under the category of destructive innovation.. and for all i know, in a highly competitive environment, with margins getting lower, a company can either do geographic or demographic expansion, else reduce the speed of the cycle of that destructive innovation.
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