Sunday, January 18, 2009
INDIAN RETAIL MARKET TO TOUCH 18.1 TRILLION BY 2010..!!
The country’s retail market will grow to Rs.18.1 trillion ($395 billion) by 2010 as organised retail is expected to be 13 percent of the total market, according to a report.”The organised retail market, which is expected to grow at 45 percent, will be worth Rs.230,000 crore (Rs.2.3 trillion) by 2012,” said the India Retail Report 2009, released by the New Delhi-based research group Images F&R Research.“This will require investments in real estate alone of over $50 billion, much of which will be FDI spurring the balance of the trade,” it added.“The consumer spending in India has increased by an impressive 75 percent in the last four years and will quadruple in the next 20 years, even when this quarter has seen some decline in spending on account of inflation,” the report added.This will trigger the growth of this sector.Food and grocery dominated the retail segment with 59.5 percent share valued at Rs.7.92 trillion, followed by clothing and accessories with a 9.9 percent share at Rs.1.31 trillion.However, the report said the market for specialised retail, especially the luxury retail, will grow significantly in the next few years.“Even when the metros and tier II cities will get the major share of organised retail, emerging cities like Chandigarh and Jaipur, which have a growing cosmopolitan population and high purchasing power, will emerge as new centres for the global luxury brands,” it added.The report has contributions from over 100 think tanks in the retail industry.“However, to enable this sector to realise its full potential FDI restrictions will have to be relaxed further and retail rentals will need to go some degree of rationalisation,” it added.Commenting on the report, Commerce and Industry Minister Kamal Nath said: “India retail model needs to go beyond the urban shopping malls and create an attractive retail environment where a large number of rural population can also find products and services.”
SLOWING ECONOMY MAY OFFER RESPITE TO RETAIL SECTOR..!!
Inflation may be eating into consumers’ wallets, but domestic retailers are not giving up just yet,as it has came down . Retail rentals are showing signs of fatigue after soaring multi-fold until recently. A slowing economy, hardened home loan rates and liquidity crunch indicate rental rates will soon fall in a manageable range. As of now, rentals have dropped by 5-10 % and are set to see a further fall of 15-20 % in the next few months. Even older deals are being renegotiated towards lesser per sq foot cost. Currently, lease rentals account for 15-25 % of retailers’ revenues in India and constitute the second-largest cost head, next only to merchandise cost. Salaries & wages and energy bills are next in line. Given the fact that operating profits of major retailers range from 5-10 % of their net sales, small savings on lease rentals can have a dramatic influence on their profitability. For instance, Pantaloon Retail’s rental cost for FY07 was Rs 209 crore, which was 6% of its net sales. The 80% growth in rental costs, compared to the 73% increase in sales, has hit operating margins. Though a part of the rise in rentals can be attributed to the company’s rapid expansion, the effect of soaring realty prices last year can’t be ignored. However, one cannot help miss the savings in the total operating cost. Even if we were to consider that rentals will stabilise at current levels, it will help Pantaloon Retail’s operating margins as the company continues to grow its revenues.
The scenario is quite similar for Shopper’s Stop with rentals bills at Rs 101 crore for FY08, comprising 8% of the company’s turnover. Here also, the rental growth has doubled vis-a-vis the increase in retail sales. If rentals were to decline by an average of 10% at the current sales level, the company would have ended FY08 with a positive bottomline. EMERGING TREND: The domestic retail industry is following in the footsteps of its international counterparts. Having attained a decent geographic reach, players are experimenting with various formats to suit their respective business models. This is done keeping in mind the needs of the catchment area as well. Another important trend that has emerged from this drop in rentals is the co-existence of the revenue-sharing model in the domestic retail sector. In this system, there is no fixed monthly rent. Instead, there is a minimum guarantee amount, plus a revenue-sharing percentage between the landlord and the retailer. For instance, a typical co-existence deal will consist of the minimum guarantee of Rs 20-25 per month per sq ft with about 5% of revenue, compared to the Rs 70-110 per month per sq ft rent for an anchor tenant.
In the current scenario, this model works well for the bigger players rather than the smaller players, as it is difficult to keep track of their ,sales. Big Bazaar, Shopper’s Stop, Provogue and Vishal Retail are going ahead with their expansions as planned. Some of these players have already worked out deals on a revenue-sharing basis. Online retailing or e-tailing is another format which is fast catching up with the conventional brick and mortar form of retailing. The fact that products can be delivered anywhere makes it a seamless form of shopping. Retailing through mobile phones, though a very recent phenomenon, is also catching up. GLOBAL VS INDIAN: Typically, international retailers pay just 3-4 % of their sales as rentals. Moreover, it is during similar downturns that global retail majors like Wal-Mart , Carrefour and Tesco increased their store presence, as rentals were low. Till not too long ago, real estate developers in India were not ready to negotiate prices, as there was ample demand for any mall located in a good catchment area. As retailers went on an expansion spree to attain geographical reach, it was a seller’s market. However , things have changed now. Not only have these organised retailers realised the importance of a sizeable reach, but they also know that good mallmanagement is important for a thriving business. Internationally, good facility management seems to be the key differentiating factor for the success of any mall. In India, too, it is now being recognised as an important deciding factor. As they say ‘customer is king’ ; it will be the customers who can make or break this entire euphoria about the retail industry’s success.
The scenario is quite similar for Shopper’s Stop with rentals bills at Rs 101 crore for FY08, comprising 8% of the company’s turnover. Here also, the rental growth has doubled vis-a-vis the increase in retail sales. If rentals were to decline by an average of 10% at the current sales level, the company would have ended FY08 with a positive bottomline. EMERGING TREND: The domestic retail industry is following in the footsteps of its international counterparts. Having attained a decent geographic reach, players are experimenting with various formats to suit their respective business models. This is done keeping in mind the needs of the catchment area as well. Another important trend that has emerged from this drop in rentals is the co-existence of the revenue-sharing model in the domestic retail sector. In this system, there is no fixed monthly rent. Instead, there is a minimum guarantee amount, plus a revenue-sharing percentage between the landlord and the retailer. For instance, a typical co-existence deal will consist of the minimum guarantee of Rs 20-25 per month per sq ft with about 5% of revenue, compared to the Rs 70-110 per month per sq ft rent for an anchor tenant.
In the current scenario, this model works well for the bigger players rather than the smaller players, as it is difficult to keep track of their ,sales. Big Bazaar, Shopper’s Stop, Provogue and Vishal Retail are going ahead with their expansions as planned. Some of these players have already worked out deals on a revenue-sharing basis. Online retailing or e-tailing is another format which is fast catching up with the conventional brick and mortar form of retailing. The fact that products can be delivered anywhere makes it a seamless form of shopping. Retailing through mobile phones, though a very recent phenomenon, is also catching up. GLOBAL VS INDIAN: Typically, international retailers pay just 3-4 % of their sales as rentals. Moreover, it is during similar downturns that global retail majors like Wal-Mart , Carrefour and Tesco increased their store presence, as rentals were low. Till not too long ago, real estate developers in India were not ready to negotiate prices, as there was ample demand for any mall located in a good catchment area. As retailers went on an expansion spree to attain geographical reach, it was a seller’s market. However , things have changed now. Not only have these organised retailers realised the importance of a sizeable reach, but they also know that good mallmanagement is important for a thriving business. Internationally, good facility management seems to be the key differentiating factor for the success of any mall. In India, too, it is now being recognised as an important deciding factor. As they say ‘customer is king’ ; it will be the customers who can make or break this entire euphoria about the retail industry’s success.
Thursday, January 1, 2009
Cannibalization...????
In marketing,cannibalization implies to a reduction in the sales volume,sales revenue,or market share of one product as a result of the introduction of a new product by the same producer.
For example,when Coca Cola introduced a similar product,like Diet Coke,this new product took some of the sales away from the original Coke which was already doing well in the market.Cannibalization is a key consideration in product portfolio analysis.If company fails to understand the concept of cannibalization it would land in the "NO MAN'S LAND".After this blunder mistake of coke its whole investment for the diet coke went in vain.....!!!
A second common case of cannibalization is when companies, particularly retail companies, open outlets too close to each other. Much of the market for the new outlet could have come from the old outlet. The potential for cannibalization is often discussed when considering companies with many outlets in an area, such as McDonald's.
Company's management should be aware of the effect of cannibalization, as this could lead to under cover losses.So the new product launching strategies must be implmented after considering cannibalization.
In project evaluation----implies when new implemented project's benefit is calculated,the profit earned from the product or project must be reduced in accordance with the profit and sales loss of other existing project.
For example,when Coca Cola introduced a similar product,like Diet Coke,this new product took some of the sales away from the original Coke which was already doing well in the market.Cannibalization is a key consideration in product portfolio analysis.If company fails to understand the concept of cannibalization it would land in the "NO MAN'S LAND".After this blunder mistake of coke its whole investment for the diet coke went in vain.....!!!
A second common case of cannibalization is when companies, particularly retail companies, open outlets too close to each other. Much of the market for the new outlet could have come from the old outlet. The potential for cannibalization is often discussed when considering companies with many outlets in an area, such as McDonald's.
Company's management should be aware of the effect of cannibalization, as this could lead to under cover losses.So the new product launching strategies must be implmented after considering cannibalization.
In project evaluation----implies when new implemented project's benefit is calculated,the profit earned from the product or project must be reduced in accordance with the profit and sales loss of other existing project.
Monday, December 29, 2008
"Think Global & Act Local"...Inspired by Prof.Javed.(Marketing Faculty)
Dedicated to Prof.Javed..........by Akash Manwani
Currently in India, the national economy and marketplace are undergoing rapid changes and transformation,as economic pressure is increasing vulnerably A large number of reasons could be attributed to these changes. One of the reasons in these changes in the Indian Market is Globalization, and the subsequent and resulting explosive growth of global trade and the international competition.
The other reason for these changes, in the Indian market is the continuous technological changes. This is an important factor because, the technological competitiveness is making, not only the Indian market, but also the global marketplace more and more competitive.
In the Indian Marketing Scenario, the market success goes to those companies that are best matched to the current environmental conditions and moving ahead as the situation demands. Those companies that can deliver, what the people want and can delight the Indian customers are the market leaders.--------as ultimately CUSTOMER IS THE KING…!!
In order to win, the companies are coming out with various new and evolving strategies because, the Indian market is also changing very fast. It is to capture the Indian market, that the Indian and the Multi National Companies are using all of their resources.
The Indian market is no longer a sellers market. The winner is the one who provides value for money……..I mean who delights the end user………..!!!.As we see, in pune itself that large number of companies like TATA.GM,HERO-HONDA,BAJAJ have huge idle capacities, as they have wrongly calculated the market size in this recession time and installed huge capacities . This has further contributed to converting the Indian market into a buyers market.
The Indian Market is one of the biggest consumer markets and that is precisely the reason why India has attracted several MNC’s………….take it from me-----IF NOT DONE BUSINESS IN INDIA, THAN IT SIMPLY MEANS YOU HAVE NOT DONE BUSINESS AT ALL.As we are the emerging economy which is fruitful for MNC’c. These large Multi National Companies have realized that to succeed in the Indian market-place they need to hire Indian representative who are much more aware of the Indian economic, political, legal and social realities. In the Indian Market,it is the MADE FOR INDIA marketing strategies that work…..
That is why Think Global and Act Local………..!!!!!
Currently in India, the national economy and marketplace are undergoing rapid changes and transformation,as economic pressure is increasing vulnerably A large number of reasons could be attributed to these changes. One of the reasons in these changes in the Indian Market is Globalization, and the subsequent and resulting explosive growth of global trade and the international competition.
The other reason for these changes, in the Indian market is the continuous technological changes. This is an important factor because, the technological competitiveness is making, not only the Indian market, but also the global marketplace more and more competitive.
In the Indian Marketing Scenario, the market success goes to those companies that are best matched to the current environmental conditions and moving ahead as the situation demands. Those companies that can deliver, what the people want and can delight the Indian customers are the market leaders.--------as ultimately CUSTOMER IS THE KING…!!
In order to win, the companies are coming out with various new and evolving strategies because, the Indian market is also changing very fast. It is to capture the Indian market, that the Indian and the Multi National Companies are using all of their resources.
The Indian market is no longer a sellers market. The winner is the one who provides value for money……..I mean who delights the end user………..!!!.As we see, in pune itself that large number of companies like TATA.GM,HERO-HONDA,BAJAJ have huge idle capacities, as they have wrongly calculated the market size in this recession time and installed huge capacities . This has further contributed to converting the Indian market into a buyers market.
The Indian Market is one of the biggest consumer markets and that is precisely the reason why India has attracted several MNC’s………….take it from me-----IF NOT DONE BUSINESS IN INDIA, THAN IT SIMPLY MEANS YOU HAVE NOT DONE BUSINESS AT ALL.As we are the emerging economy which is fruitful for MNC’c. These large Multi National Companies have realized that to succeed in the Indian market-place they need to hire Indian representative who are much more aware of the Indian economic, political, legal and social realities. In the Indian Market,it is the MADE FOR INDIA marketing strategies that work…..
That is why Think Global and Act Local………..!!!!!
My Personal Study "Venus Drugs and Cosmetics"
Venus Drugs and Cosmetics is a FMCG company, situated in khopoli in the state of Maharashtra.It is export oriented company---This is a brief introduction.
Rest you can go through.........!!!
FAILED IN INDIA………ACHIEVING GREATER HEIGHTS ABROAD….!!!!
It was long time back when company started its business of cosmetics in india,but failed.The reasons were unknown,mystery was unsolved,lot of efforts and hard work went in vain…..no hopes were alive.Company struggled from the time of incorporation,and various measures were taken to look after it.Than a ray of hope risen for the company and they decided to go for vertical integration, in foreign market.Guess what????..........it striked and company became the first ever Indian company to launch its official website in France which also got registered by their government.
The cloudy days changed…………..company striked back, a single decision brought them on fast track.They started exporting the cosmetics which led to the success of the company,continuing till date.Today company exports in 7 countries and has a huge turnover in the industry…………..the days are back again and company is ready to go extra-mile in near future with its well thought expansion plan in the pipeline,to achieve the best in the industry..!!!
Hope you all liked it...!!
Rest you can go through.........!!!
FAILED IN INDIA………ACHIEVING GREATER HEIGHTS ABROAD….!!!!
It was long time back when company started its business of cosmetics in india,but failed.The reasons were unknown,mystery was unsolved,lot of efforts and hard work went in vain…..no hopes were alive.Company struggled from the time of incorporation,and various measures were taken to look after it.Than a ray of hope risen for the company and they decided to go for vertical integration, in foreign market.Guess what????..........it striked and company became the first ever Indian company to launch its official website in France which also got registered by their government.
The cloudy days changed…………..company striked back, a single decision brought them on fast track.They started exporting the cosmetics which led to the success of the company,continuing till date.Today company exports in 7 countries and has a huge turnover in the industry…………..the days are back again and company is ready to go extra-mile in near future with its well thought expansion plan in the pipeline,to achieve the best in the industry..!!!
Hope you all liked it...!!
Sunday, December 28, 2008
Marketing is "NOT" Sales...!!
Marketing and Sales are the two important components of business.They are the two sides of the same coin, so one must remember that both should not be mixed but they are used interchangeably.They are similar but not same.
Marketing creates an environment where Sales can thrive.
Marketing is the tool to push sales,as it markets the product to make the targeted group aware of it and than sales can take motion....!!
keep reading..!!!!
Marketing creates an environment where Sales can thrive.
Marketing is the tool to push sales,as it markets the product to make the targeted group aware of it and than sales can take motion....!!
keep reading..!!!!
Taste of Branding...!!!
Standing out amid a massive chorus of competitors is a challenge for any company in today’s business climate. You people want evidence? Look at any magazine, TV show or surf the Internet. The number of offers and sales pitches one receives on a daily basis is simply staggering and increasingly ineffective. It’s no wonder, then, why businesses are seeking new and more effective ways of increasing the influence of their brand strategy in the global marketplace today. A strong brand strategy can increase the awareness of a company and its offerings in such a way that establishes strong feelings and reactions and a favorable view towards the company as a whole. To create this sort of “brand awareness” in global market, it takes skillful Brand Strategy management.
Successfully out-branding your competitors is a continuous battle for the hearts and minds of your customers. The proposition your brand strategy makes must be very compelling, attractive and unique among competitive offerings as no market is enjoying monopoly. The proposition must also be consistently reinforced throughout all phases of an organization, from senior executives to customer service, research and development, business development and even your business partners as well as stakehoders.
What entails a comprehensive and effective “Brand Strategy” process……. That cannot be defined in brief as it distinguishes from industry to industry….!!!!!!!
Brand Strategy—what’s the big deal?
Brand Strategy is nothing new to us its being managed from the very beginning. Yet, the expectations consumers have for a product or service they buy is stronger than it’s ever been. This is why companies interested in long-term success must create the most promising, targeted brand experience possible ever.
Whether companies know it or not, each of them already have a brand, and their customers are having a “brand experience” when they interact with company, whether it be with their products and services or the people in their company. In order to craft this “brand experience” in a calculated way that is beneficial for the company, companies must have a strong understanding about what exactly a brand is.
Brand is the Alpha and Omega………………….!!!
In other words, brand is the totality of company and its business.
“A brand is the sum of the good, the bad, the ugly and the off-strategy,”. “It is your best and worst product. It is your best and worst employee. It is communicated through award-winning advertising as well as those ads that somehow slipped through the approval cracks and sank anything riding on them. It is your on-hold music and the demeanor of the receptionist who puts that valued client or prospect on hold. It is the carefully crafted comments by a CEO as well as negative buzz by the water cooler or in chat rooms on the Internet. Brand is expressed through written, audio and visual content. It is interpreted through emotional filters every human being has—where anything can happen. Ultimately, companies cannot control their brand. They can only hope to guide it.”
The Road to Branding Success…..
Building on the inherent values of a brand should be the core of any branding strategy. If they’re not clear, get a good grip on them first. Is the brand about honesty or integrity?????? Quality???????????? How about excellent communication and customer satisfaction…………?
Knowledge of a company’s values, at least in a literal context, is typically an internal matter; yet, those values become evident to everyone in contact with the company, from customers and prospective customers to business-to-business relationships and employee relations sort employee relationship management. Consistency is the key here. If members of the organization are not accurately representing the values of the brand, steps must be taken to rectify the chink in the armor. And unlike a brand’s key business proposition, values should never change even though the landscape in which the company operates and even its products may.
Winning brand strategies starts with top-notch research….
With values fully set, a brand proposition is ready to be established. Objective and comprehensive branding research are the keys here. At a minimum, both must be done to establish clarity on the brand’s strengths and weaknesses, the target audience and the competition. If possible, branding research should also be done on the brand’s industry, its history, the status of the market and possibilities for future expansion as business would always like to grow with changing environment and passage of time.
Target customer will determine your success….
If it’s only possible to do one body of brand research, discover as much as possible about your target customer. Find out who they are and what their needs and desires are. Make it your mission to get as detailed information as possible on their age, gender, income, shopping habits (online and off) and anything else of relevance you can determine. If you are targeting a business market, these criteria will differ, depending on the industry. Understanding your target market and what they want is key to developing a winning brand. Knowing these things should also give you an idea for what communication medium and content would work to engage your market in a better way.
Other research you might want to do is find out who are your comprtitors, what your competitors’ offerings are like. How do your offerings stack up? What can a customer get from your product that they cannot get from anyone else amongst your competitors? Find out these things, and you have the seeds for a winning branding strategy, and an innovative fodder for advertising campaign…………………………………….!!!!!
What is brand promise?
The brand statement, often called the brand promise or proposition, is a derivative of branding research. It states the benefit of buying and using your company’s products or services. For clothing, it could be about style or comfort and latest. For a car, it could be about safety or reliability. Whatever it is, it must be clear, engaging and presented in a context relevant to the customer. One example of an effective brand promise is that of BMW’s. It’s stated right in the company’s tagline: The Ultimate Driving Machine.
Promise should be golden…..
If company’s products and service don’t live up to their brand promise, new customers will become lost customers and loyal customers might leave, too. Simply put,deliverable,what ever that is, must follow through on the promise—in fact, it would be best if it actually over-delivered.
Promise should be unexpected, but welcome……
Never ever reuse something a competitor has already promised even if it works for your product or service, and don’t be vague in trying to position your company favorably against your competitors (such as saying you are “the best coffee in town.”). Be specific because specific is exponentially more memorable. Besides, people expect you to be good. Otherwise, they wouldn’t give you their business.
Rule…….Hearts and minds first, wallets later…!!!
Creating a positive emotional association in your market for your product or service is key. It can create want and desire by the mere mention of your brand, product or service name. Needless to say, that’s powerful. For instance, the mere mention of Ben & Jerry’s conjures up images of numerous unique premium ice cream flavors and with the anticipation for your favorite. Such positive emotional associations are built over time through good branding practice and a time-tested relationship between you and your customer based on intrigue, trust, understanding and support.
To create a brand promise that creates such emotional connections, it should be:
1. Grounded in the brand’s core values
2. Clearly relevant and engaging to your target market
3. Able to create some sort of positive emotional attachment beyond just being “good”
4. Repeated internally and externally within your organization
5. Adaptable to the business climate
6. Continually reinforced
7. Consistent across advertising and marketing mediums
8. Known and echoed by business partners and many more……
This would help you people, to understand branding in detail with major decisions required to adopt the branding strategy.
I hope you people enjoyed it…..isn’t it..!!!!!!!!!!
Successfully out-branding your competitors is a continuous battle for the hearts and minds of your customers. The proposition your brand strategy makes must be very compelling, attractive and unique among competitive offerings as no market is enjoying monopoly. The proposition must also be consistently reinforced throughout all phases of an organization, from senior executives to customer service, research and development, business development and even your business partners as well as stakehoders.
What entails a comprehensive and effective “Brand Strategy” process……. That cannot be defined in brief as it distinguishes from industry to industry….!!!!!!!
Brand Strategy—what’s the big deal?
Brand Strategy is nothing new to us its being managed from the very beginning. Yet, the expectations consumers have for a product or service they buy is stronger than it’s ever been. This is why companies interested in long-term success must create the most promising, targeted brand experience possible ever.
Whether companies know it or not, each of them already have a brand, and their customers are having a “brand experience” when they interact with company, whether it be with their products and services or the people in their company. In order to craft this “brand experience” in a calculated way that is beneficial for the company, companies must have a strong understanding about what exactly a brand is.
Brand is the Alpha and Omega………………….!!!
In other words, brand is the totality of company and its business.
“A brand is the sum of the good, the bad, the ugly and the off-strategy,”. “It is your best and worst product. It is your best and worst employee. It is communicated through award-winning advertising as well as those ads that somehow slipped through the approval cracks and sank anything riding on them. It is your on-hold music and the demeanor of the receptionist who puts that valued client or prospect on hold. It is the carefully crafted comments by a CEO as well as negative buzz by the water cooler or in chat rooms on the Internet. Brand is expressed through written, audio and visual content. It is interpreted through emotional filters every human being has—where anything can happen. Ultimately, companies cannot control their brand. They can only hope to guide it.”
The Road to Branding Success…..
Building on the inherent values of a brand should be the core of any branding strategy. If they’re not clear, get a good grip on them first. Is the brand about honesty or integrity?????? Quality???????????? How about excellent communication and customer satisfaction…………?
Knowledge of a company’s values, at least in a literal context, is typically an internal matter; yet, those values become evident to everyone in contact with the company, from customers and prospective customers to business-to-business relationships and employee relations sort employee relationship management. Consistency is the key here. If members of the organization are not accurately representing the values of the brand, steps must be taken to rectify the chink in the armor. And unlike a brand’s key business proposition, values should never change even though the landscape in which the company operates and even its products may.
Winning brand strategies starts with top-notch research….
With values fully set, a brand proposition is ready to be established. Objective and comprehensive branding research are the keys here. At a minimum, both must be done to establish clarity on the brand’s strengths and weaknesses, the target audience and the competition. If possible, branding research should also be done on the brand’s industry, its history, the status of the market and possibilities for future expansion as business would always like to grow with changing environment and passage of time.
Target customer will determine your success….
If it’s only possible to do one body of brand research, discover as much as possible about your target customer. Find out who they are and what their needs and desires are. Make it your mission to get as detailed information as possible on their age, gender, income, shopping habits (online and off) and anything else of relevance you can determine. If you are targeting a business market, these criteria will differ, depending on the industry. Understanding your target market and what they want is key to developing a winning brand. Knowing these things should also give you an idea for what communication medium and content would work to engage your market in a better way.
Other research you might want to do is find out who are your comprtitors, what your competitors’ offerings are like. How do your offerings stack up? What can a customer get from your product that they cannot get from anyone else amongst your competitors? Find out these things, and you have the seeds for a winning branding strategy, and an innovative fodder for advertising campaign…………………………………….!!!!!
What is brand promise?
The brand statement, often called the brand promise or proposition, is a derivative of branding research. It states the benefit of buying and using your company’s products or services. For clothing, it could be about style or comfort and latest. For a car, it could be about safety or reliability. Whatever it is, it must be clear, engaging and presented in a context relevant to the customer. One example of an effective brand promise is that of BMW’s. It’s stated right in the company’s tagline: The Ultimate Driving Machine.
Promise should be golden…..
If company’s products and service don’t live up to their brand promise, new customers will become lost customers and loyal customers might leave, too. Simply put,deliverable,what ever that is, must follow through on the promise—in fact, it would be best if it actually over-delivered.
Promise should be unexpected, but welcome……
Never ever reuse something a competitor has already promised even if it works for your product or service, and don’t be vague in trying to position your company favorably against your competitors (such as saying you are “the best coffee in town.”). Be specific because specific is exponentially more memorable. Besides, people expect you to be good. Otherwise, they wouldn’t give you their business.
Rule…….Hearts and minds first, wallets later…!!!
Creating a positive emotional association in your market for your product or service is key. It can create want and desire by the mere mention of your brand, product or service name. Needless to say, that’s powerful. For instance, the mere mention of Ben & Jerry’s conjures up images of numerous unique premium ice cream flavors and with the anticipation for your favorite. Such positive emotional associations are built over time through good branding practice and a time-tested relationship between you and your customer based on intrigue, trust, understanding and support.
To create a brand promise that creates such emotional connections, it should be:
1. Grounded in the brand’s core values
2. Clearly relevant and engaging to your target market
3. Able to create some sort of positive emotional attachment beyond just being “good”
4. Repeated internally and externally within your organization
5. Adaptable to the business climate
6. Continually reinforced
7. Consistent across advertising and marketing mediums
8. Known and echoed by business partners and many more……
This would help you people, to understand branding in detail with major decisions required to adopt the branding strategy.
I hope you people enjoyed it…..isn’t it..!!!!!!!!!!
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