Marketers should know how to respond to these aspects taking into consideration factors ranging from product development to the timing of a new introduction.

Nature of the category

A cola brand is different from a mobile — while the difference is obvious, the approach of marketers with regard to these two categories would highlight the important aspects of a good marketing strategy. Cola products (brands) have developed what could be a virtual quality, one which has very little to do with the attributes of the product. Fun, enjoyment, social gatherings form the core of the `virtual quality' associated with these products. Over a period of time these qualities develop into a brand personality. For instance, the macho image associated with Thums Up is very much a virtual quality of the brand. Within the acceptable limits of consumers' perception (as long as a cola is not colourless), the brand could be driven with its `virtual quality'. Is it the `virtual quality' which drives a brand of cellular phone service?

Airtel's association may appeal to a cross-section of MTV viewers (the brand has a collaboration with MTV for its promotion) but most of this segment would also want to understand the offering of the brand services, schemes and hence the overall value. Most segments would want to know (there may be a section which is driven only by the `virtual quality' in case a brand attempts this) the offerings/permutations and combinations of the offering in clear terms. This does not seem to be happening in the category. Any brand which pioneers the approach would have a reasonable lead over its competitors. Most brands carry advertising copy which prominently mentions a low fee but the small print reveals very little differentiation. It is difficult to find a brand today which has segmented the market clearly on a product-centric platform. Students, housewives, executives and non-executives are some of the segments, and all of them have varying needs. Are there specific value-based packages for each of these segments? Most of them use similar packages (in terms of features/fee) and the whole service seems to be driven more by the `virtual quality' of the handset (brands offer several features which most may not require).

A good combination of need-based fee and `virtual quality' (to segments which may require it) would result in a win-win situation for both the consumers and brands. A good example of such a combination is Vodafone (125 million customers in 40 countries) which featured David Beckham in developed markets where brands are under pressure both because of competition as well as discerning consumer segments.

Certain categories of durables require to be experienced before the consumer is convinced about their features. In developed markets Whirlpool has retail outlets where consumers can see the action of machines which they are considering to buy. Advertising should be completed by exposing consumers to the experience associated with the brand. A product-centric approach does not just showcase the features of a brand; it also demonstrates how such features are useful to the consumer segment which is interested in the brand.

Even among fast moving consumer products, there seems to be good scope for product-based strategies to work. Gokul is a well-known sandal talcum powder in the Southern markets. The packaging is still the conventional container: the brand does not advertise like a typical MNC brand nor does it frequently run promotional campaigns which are common in the FMCG categories. The brand has a strong following in the market because consumers like the product (perhaps not the urban consumer given her choices, but the semi-urban/rural consumers).

Cinthol developed its brand image through its deodorant qualities. MTR is attempting to create a market for its ready-to-eat items based on taste, freshness and hygiene. Lifebuoy and Dettol are well-known brands and have built up their equity because of the attributes they have been able to offer and sustain. Much before large companies got into the market, the regional brands in the herbal soap category used product attributes to carve a niche for themselves. It may be worthwhile to recall the `gum protection' proposition of Forhans, one of the well-known brands of toothpaste during the Sixties. A brand would have to sustain and adapt itself to the changing environment after it has successfully created a product-centric proposition.

In certain categories, there may be technological advancement in infrastructure required to create a product-centric attribute. Dabur has invested in machinery to provide options of cooking aids which could substitute home-made stuff — again a product-oriented strategy. Maruti created an `economy'-based model to usher in a new era in the car market. Microsoft's offerings have clearly demonstrated how the market could explode with product-centric approaches. Digital watches in the Indian context are another example of such strategies. Titan, after pioneering digital watches, combined the `virtual quality' with its designs and advertisements. Evolution of product categories and brands has clearly shown that product-centric strategies diffuse the brand over a period of time to a larger cross-section of consumers. The meaning of value in today's competitive market is also based on the optimal manner in which product-centric features could be offered to consumers at a price which would create a value perception among consumers.

Changing environment and product-centric strategies

Marketers should be sensitive to changes happening in the environment, both with regard to consumers and competition. This approach should be followed even when a brand is doing well. For example, Robin Blue used to be a household name but the brand introduced the liquid variant only after Ujala created a major `disturbance' with its offering. Colgate introduced its herbal variant long after herbal awareness of consumer products demanded it. Brands such as Bru, Nestle and Coke are expanding their vending machine operations so that the product in its `ready to consume' form would be available to more consumers who may be on the move more frequently than they were a few years ago. Product-centric approach also calls for the right kind of innovation which is timely and add value to consumers.

Television companies promote several kinds of features, an innovative aspect as a result of technology, but the need of the hour, to gain competitive advantage, may be to explore how value addition could be brought around (with innovative features of the TV), which would add value to specific segments. Could there be brands which work with cable operators to customise programmes for specific segments? For example, the programmes which are needed for the youth are very different from those required for the housewives and even this mix for each segment would differ from one geographical area to another.

Besides brand building, advertising revenue is also likely to build up since the focus on the segment would lead to better advertising effectiveness from the advertisers' viewpoint. There is a need to adopt caution when a company is addressing itself to changes in the environment. The passenger car industry has opened up several directions for the car manufacturers. During the mid-eighties, Maruti 800, the no-frills model, was introduced, creating a great degree of discontinuity in the market, completely outshadowing Ambassador and Fiat, the brands which ruled the Indian market for decades. Currently there are various segments in the small car segment such as Indica and Santro, the midsize ones like Indigo and Ikon and multi-utility vehicles like Sumo and Scorpio and the sub-premium segment like Honda City. A company has to decide carefully its own competence in terms of addressing the changes in the environment. For example, Maruti with its headstart in the `no-frills' segment may have a competitive advantage over its rivals besides having huge potential to upgrade about 40 million two-wheeler riders (which is also an aspiration-based environmental change).

(The author is Professor of Marketing, IIM, Bangalore.)

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page