The Hindu Business Line : Cave & save vs Rave & wave

IN today's India there are two categories of brands. One which I call `cave and save brands' and the second category which I call `rave and wave brands.' Indian consumers today behave differently and brand marketers pave the way towards cave and save brands before they can graduate consumers to aspirational rave and wave brands.

What do I mean by cave and save brands? These are brands which are basic and functional, figuratively having a similarity to the consumer who, like a caveman, would just look at the sheer utility of a product without an augmentation. The cave brand is a brand which meets the most primary needs and consumers do not expect more than that. A bed and breakfast hotel would fall in that category. Similarly, a simple meal served and churned out with great frequency for a mass of consumers would also fall in the cave category. Basic transportation whether though air, sea or land, could also come under the cave category.

To my mind, the save category would include brands which are discounted, offer freebies, constantly reduce prices and keep offering savings to consumers whether on a temporary or permanent basis.

Cave and save brands are those which cater to the basic needs and have offerings which meet the basic requirements and provide an incentive to the consumers to get a lower price tag.

This category is emerging and growing in India. I would be looking at and analysing the reasons for the growth of the cave and save brands in recent times. But before that let us look at the other categories of the brands which are at the premium end - the rave and wave brands which basically are upscale, expensive and have consumers raving about them as well as riding a wave of trends and fashion fuelling aspirational desires and moving consumers up to the next rung of the ladder.

The cave and save brands have their own market and so do the rave and wave brands. The customer segmentation is distinct and fortunately for India, there is a large enough market for both segments. While Deccan Air gets launched in the cave and wave brands category, a Louis Vuitton gets launched in the rave and wave brands category. Both categories co-exist in this wonderful country called India.

Now let me analyse as to why the cave and save brands are being launched and are growing. Also, why many companies having rave and wave brands are now participating in the cave and save brands category with new brands. For example, the Taj Group, originally under the rave and wave brands category, is now also launching a brand in the cave and save brands category called IndiOne.

It is sensible for companies to participate in both the cave and save brands category and the rave and wave brands category but with distinct brands.

According to me, there are five reasons the cave and save brand categories are growing so fast.

Evolution

As the market evolves, the penetration of various products and services increases. People who used to walk to work want to now move towards taking a bicycle. People with bicycles want two-wheelers. People with two-wheelers want to fly. Maruti, the market leader in cars, targets people with two-wheelers and those travelling in public transport. This helps cave and save brands to find a fertile ground to grow.

Solution

Every consumer has needs to be fulfilled. They are looking for solutions. In my opinion, they do not sacrifice the good for the idle. They are happy with the needs being met and a solution being provided. This too gives an opportunity for cave and save brands to be launched.

Dilution

There has been a dilution in the purchasing power of the Indian consumer over the years because the real value of money has gone down due to inflation. This has opened the market for consumers to look at cave and save brands.

Pollution

There is huge noise pollution and clutter of brands and advertising. Brands can either pull consumers through image or value. The value-conscious consumers are able to hear and listen to the cave and save brand offerings over the din of noise pollution.

Revolution

There are many upper class and SEC A1 and A2 consumers who occasionally use cave and save brands mainly for their supporters or people who work for them. This revolutionises those brands in being able to move forward and give impetus both from the top and bottom layers.

Finally, I would like to say that cave and save brands are here to stay and will not only co-exist and survive with rave and wave brands but also thrive in the Indian environment. Happy brand building! Three cheers to the Indian consumers!

(The author is Managing Director, Samsika Marketing Consultants.)

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