2.
The most challenging aspect of the market today is
the degree and intensity of competition.
In category after category new entrants, international
brands, even new categories and new retail formats
are changing the competitive landscape rapidly.;
more significantly so for consumer products.
Thursday, February 6, 2014
Claudia D'souza
3. CONSUMER PRODUCTS
The term consumer products or FMCG (Fast
Moving Consumer Goods) is used to describe
a whole range of products that are ‘consumed’
by consumers in some form or the other.
The products here range from the lowly salt to
exalted perfumes, from wheat flour to
shampoos, and from soaps to pickles.
Thursday, February 6, 2014
Claudia D'souza
4. By definition,
Consumer products are bought by consumers
at regular intervals almost like clockwork.
Also, products differentiation is the least in
the case of consumer products.
In the case of consumer products, our brand
equation will probably read as:
Brand = Product + Images + Experiences
Thursday, February 6, 2014
Claudia D'souza
5.
Consumer products advertising is probably
the most researched form of advertising.
It also makes eminent sense to research it
thoroughly since in no other product does
advertising comprise such a large part of
investment.
However, it is necessary to research
advertising for consumer products with a lot
more sensitivity.
Often we are dealing with ‘feelings’ and human
emotions.
Thursday, February 6, 2014
Claudia D'souza
6. Today, a large part of consumer
product advertising is on television.
Thursday, February 6, 2014
Claudia D'souza
8. How does one define what is a
consumer durable? How is it
different from a consumer product
FMCG?
In
Price
In longevity
In involvement
Thursday, February 6, 2014
Claudia D'souza
9.
Consumer products are bought by consumers
at regular intervals.
Cigarettes are purchased daily, soaps are
probably bought monthly, and so on.
As a result the consumer goes to make her
purchases, she can change the brand.
In effect, brand loyalty is under test everyday,
every week, every month.
No doubt, because of this constant choice
opportunity, the maximum amount of ‘brand’
studies have been done in consumer products.
Thursday, February 6, 2014
Claudia D'souza
10.
Unlike consumer products, consumer durables by
definition are not bought at short periodic intervals.
Often the replacement cycle can run into years.
In the case of some products, like cars, it could even
be a decade.
Given this long lock-in period, the role of the
‘brand’ becomes somewhat different.
Further, the value of the purchase is often counted in
terms of the number of months of salary is spent on
it.
In the case of consumer durables, the equation of the
brand is:
Brand = Product + Images
Thursday, February 6, 2014
Claudia D'souza
11. By their nature,
Consumer durables like TV’s, refrigerators,
washing machines, two-wheelers, music
systems, etc., are all high value purchases.
Every purchase is preceded by several
mandatory processes varying with the type of
product and the socio-economic class of the
consumer.
Thursday, February 6, 2014
Claudia D'souza
12.
Typically consumers have more questions to ask
when it comes to choosing durables.
Some of the questions they as themselves, towards building
their confidence in brands, are:
Heard of the brand? Used it earlier?
Know anyone using it? What do they say?
Where is it available? Where else?
Which are the leading brands? Model options?
What after-sales service is needed? Who offers the best?
What features do we need? Any others?
What financing options are available? Cash discount?
What is the price? Any extras?
What is the expected life? Resale value?
Do I really need it now? Is it the right brand?
Did I take the right decision? Any assurances?
Thursday, February 6, 2014
Claudia D'souza
13.
Advertising with respect to consumer
durables has to play several roles from
building awareness, to demonstrating the
product, creating aspirational values, etc.
In addition, advertising plays the role of
reassuring consumers who have the brand,
that they have made the right choice, and
reducing post-purchase dissonance.
Thursday, February 6, 2014
Claudia D'souza
14. Does this mean that all consumer
durables advertising has to be packed
with data and be very rational and
very direct?
Thursday, February 6, 2014
Claudia D'souza
15. If we layer the requirements of consumer durables
advertising with what advertising is, some answers may
emerge.
Advertising by its very nature is intrusive.
So to be visible advertising has to:
Sound and look unique
Be relevant to the target consumer
Be believable
Over and above all this, advertising has to be
‘likeable’.
Increased likeability increases brand recall and brand
preference.
Thursday, February 6, 2014
Claudia D'souza
16. Model for consumer durable advertising
Specific Offers: Guarantees
News about the Model: New features
Model Specific advertising message:
Look; Feel; How to; Demo
Thursday, February 6, 2014
Brand Oriented Advertising Message:
Tone and Manner; Style; Execution
Claudia D'souza
