science of-differentiation

©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999

Senior Leaders Programme – Branding WorkshopSeven corporations consortium: Genpact, Wipro Ltd., HDFC Bank, Dr.Reddy’s Lab,

Colgate Palmolive, Mahindra & Mahindra and Aditya Birla Group

Shombit Sengupta

01

W H I T E P A P E R

SCIENCE of

Differentiation


I. The science of differentiation comes from the Balance of Cost, Quality & Aspiration at any price point

Although Swatch fashion is available for only $30, its cheeky and good fun to flaunt in front of people.

It has the same aspirational value as the Rado, Tag Heuer, Rolex, Cartier.

Rado $ 7000

Tag Heuer $ 4000

Rolex $ 10000Swatch $ 30

The balance of cost, quality and aspiration at any price point of a product or service is a must for tomorrow’s forward looking marketing. The selling price of a product or service is a big factor for target customers, whether the category is low or high priced. Most people do not flaunt money without having the appropriate result from the product.

An example: Since 1982, Swatch watch has created a new watch cult in the world where the cost is very low but aspirational value is the same as other sophisticated, centuries-old, expensive watches.

Cost Quality Aspiration


Cost Quality Aspiration

Family at Mc

Friendship at the Mc

Youth in Mc

The success of to highly differentiated foriegn brands in India where spiration, quality and cost are balanced.

II. Success of two foreign brands in India in the balance of aspiration, quality and cost with high differentiation

Low priced Outstanding Very High

McDonald’s

The success of McDonald’s needs no explanation. The best example to showcase the giant’s success is the McDonald’s at the 6,00,000 sqft Metro Junction, the only mall in Kalyan, 50km from Mumbai. Its catchment population of 4 million brings in customers into the mall.

United Colours of Benetton has made a mark in India with about 100 stores in the nation already. The brand has significantly reduced prices for India and is doing extremely well with young Indians. UCB is undoubtedly becoming a benchmark for competitors.

03

Price reduced Global Standard

BenettonHigh Style


III. Science of differentiation that made history

Mashed potato

Traditional home made mashed potatoes

Mousline has become a must-have product at home today. This instant branded mashed potatoes in dehydrated form has displaced home made mashed potatoes with its convenience of preparation and excellent taste.

Nestle Mousline

Cream cheese made at home

Cream cheese has been prevalent as a home made product since 1754 in England, and 1850 in France. Cream cheese is not available in the market in the non-branded form.

The first cream cheese in theUS was made in New York in 1872 by American dairyman William Lawrence.

In 1880, ‘Philadelphia’ was adopted as the brand name, and today Philadelphia has become the reference of cream cheese across the world.

Philadelphia cream cheese

CamembertAn unbranded generic product

Very traditional French cheese made by farmers with organic ingredients and sold in the open market. For centuries, the shape of the cheese has been round.

There are 3500 camembert brands, home industry made and industrially made. Of these, Caprice des Dieux is the number one brand.

Bongrain Corporation displaced Camembert from being a traditional home industry product to becoming an industrial branded category with

l A provocative name

l Oval shape packaging

l Guarantee of product consistency in taste and quality.

Today, Caprice des Dieux has become a reference of Camembert cheese consumed by French families every day.

Camembert transformed to Caprice des Dieux (Tantrums of the Gods)

04


IV. Would you love to brand the shit pot?Curiosity: How can this industry work to change the perception of human hygiene for better mind

Observation: by a very innovative Japanese company

Action: This is TOTO who elevated the experience of ablutions, making it heavenly

05

TOTO Ltd. is a leading Japanese manufacturer of plumbing products, and system products like modular bathrooms and system toilets.

The company was incorporated in 1917 as Toyo Toki Company, Ltd., in Kokura, Japan, with assets of¥1 million.

Throughout the company’s first half-century, TOTO’s fortunes paralleled the growth and activity of the Japanese economy as a whole.


NEOREST SERIES/SE

NEOREST SERIES/L

NC SERIES

TOTO’s product range in series:All with thescience of differentiation

TOTO’s product range, by categories:

Washlets

Bidets

Toilets

Faucets

Accessories

ShowersMaterials

Wash basins

Bathtubs

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Intelligent toilet: Daiwa House and TOTOJapanese builder Daiwa House and TOTO have teamed up to develop a bathroom that lets users monitor their health. It analyzes urine samples, measures your blood pressure, and checks your body fat

In its passion for branding, TOTO gets cheeky in the website with its latest ad for washlets

TOTO’s success factorsl Is technological innovations and high quality

standard have made TOTO an iconic and much-loved brand in Japan

l With European consumers demanding an ever-more luxurious and fulfilling bathroom experience, TOTO as the world’s most sophisticated bathroom products, entered the market and elevated the bathroom from the merely functional to the restorative and meditative

l TOTO’s life-enhancing Clean Technology is set to revolutionize Europe

Toto Neorest 600 series, literally meaning new rest, represents the ultimate convergence of design and technology, and helps to transform your bath space into the ultimate spa experience

07

TOTO todayl TOTO is the largest producer of high tech

toilets, worldwide, with a market share of 65%

l Its total revenue in 2008 was USD 5046.2 million with an operating income of USD 173.8 million


UST

I believe

in it!

End customer

TR

This is the non-visible area.The kind of quality initiativean enterprise takes is at its own discretion. That needs to be exposed to make customers understand the scientific value of the delivery

This has high relevance to customer usage and habit

This is about subtletyand aesthetics for allfirst interface areas withthe customer

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RATIONAL FACTOR FUNCTIONAL FACTOR EMOTIVE FACTOR

Auto

Industries

Suspension

Productisation

Intrinsic feltbenefit

Services

Food

Auto

Industries

Gear

Activitycustomisation

Organoleptic andfilling enjoyment

Services

Food

Auto

Industries

Styling

Relationship

Productpresentation

Services

Food

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Shining Consulting Pvt., Ltd. 17, Visveswariya Industrial Area, Mahadevapura 2nd Stage, Bengaluru - 560 048, India.

Tel : 91-80-4127 6999 / 81 Fax : 91-80-4127 6990Email: [email protected]

www.shiningconsulting.com

science of-differentiation

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