what are brands_good_for

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Is an Indispensable

part of modern

business

- Reaches large number of people

- Promise delivery of stated

benefit

- Sets it apart from competitors

Source

of

brand’s

market

power

1. Territorial

Ownership

2. Influencing

ability

This is an era of

information

revolution

which is undermining

the logic of

aggregation

Information rich

environment makes

disaggregation more

efficient

Consumer behavior can

be effectively driven

through two way

communications

1. Consumer Relationship

2. Channel Relationship

3. Organization of brand management

The answer an be

found by

examining…

Consumer

Relationship

Relationship arises when a

brand repeatedly fulfills its

stated promise but these

relationships tend to be

shallow

But with

disaggregation...

• Two way communication possible

• Reduction in communication cost

• Increase in hit rates

• More precise pricing

• Increase in consumer satisfaction

Channel

Relationship

Why is

it

needed?

Because

retailer’s

business is no

longer about

“collecting rent

on shelf prize”

Because brands can’t

afford to be

delisted from

retailers as they

control access to

the consumer

Marketing budget

spent on retailers

=

2x spent on the

end consumer

But this way manufacturers are

feeding their own enemies

Disaggregation provides

manufacture an

opportunity to influence

consumer decisions

which are independent of

retailer

Thus, in channel

relationship too

brand is perceived

as no longer being

the focal pointc

Brand

Management

organization

- Marketing initiatives

developed at brand level

- Brand managers are

foundation of company’s

marketing department

Brand-Management

organization is proving

to be an impediment to

disaggregation

Brand managers are given

choice to put money in the

disaggregation marketing

program or continue using

traditional media

Thus, disaggregate marketing

is just another media choice,

not a different way of doing

business

3 necessary elements

for switching to a

consumer - centric

organization

1 Relationship

building entity and

mechanism

2 targeted

communication

3 obtaining

expertise in new

product and brand

development

We can conclude that

Disaggregation is a different

way of doing business that

challenges brands and brand

based organizational

structures

What, then, are

brands good for

in this new

environment?

• brands are an excellent means of

developing and communicating a

differentiated value proposition

in the market

• brand might even rightfully

aspire to the ultimate prize — a

relationship with the customer

Disaggregated

marketing in

India

Café moments card

- no need to carry cash to Café Coffee

Day outlets

- free beverage on birthdays and many

more such occasions

- additional money every time the card

is loaded

- perfect gift for every occasion

-This kind of marketing strategy is helping

CCD to build a relationship with its

customers

-The offers available with the card attract

the customers

-It also keeps track of the previous orders

and thus the history of the customers

travel with them

- Airtel My Plan is a brilliant

marketing strategy to make

calling experience highly

personalized and consumer

centric

- gives consumers the freedom

to create their own postpaid

plan and share it with their

entire family

- Provides customers the flexibility to

divide their money on internet, calling

and much more according to their

need

- Also provides company with a lots of

data about the preferences of the

customers of different age groups

- Customer feedback and satisfaction

goes hand in hand with this strategy

Customized t-shirts platform is another

classic example of disaggregated marketing

Thus, we can conclude that disaggregated marketing strategy has helped these firms to rise in the Indian market and looking at the growing trend of customization, one-to-one marketing and disaggregation as whole, the future prospects of this strategy seems to be very promising

"These slides were created by Vardaan Bhatia, as part of an internship done under the guidance of Prof. Sameer Mathur (www.IIMInternship.com)"