In fact more often than not just about anyone who has never stepped in the shoes of a Brand Manager thinks in the same way,
“If A is priced at X, and B is priced at X – 2, and people buy B more often, then why the big hue and cry about branding?”The answer of such a simple question is of course simpler. Its because Brand A is not creating enough value for its customer so that he chooses A with its higher price instead of B, which costs lower. So the solution is not “We dont need any branding” in price conscious markets, but rather “We need more effective branding” in price conscious markets.
What you always knew is wrong! And what i am about to tell you will prove it.
Wrong Idea 1 – Rural people dont buy brands.
1. The lower we go in the socio-economic status, the power and scope of branding must increase incrementally. Meaning – even financial struggling rural audience can be lured by branding. In this regard what Hindustan Lever has done in rural India with Lifebuoy can be a source of great motivation for the rest. This should be taught as a case for unlocking brand power for rural, financially people in all leading universities around the world.
Wrong Idea 2 – Branding does not work in price conscious markets
2. The more price conscious a market is, the brand marketer must put in doubly the effort to create a brand pull. Meaning – Bangladesh is a price conscious value driven market, so the power of branding is more required here than anywhere else. Remember the great Philips ad of the mid 80s? With effective communication, they have captured a big slice of the market and created maximum brand value.
Wrong idea no. 3 – The more commodity oriented the market is the less scope for branding
3. The more commodity oriented the market is, the more there is scope for Branding to create differentiation. Meaning – Even tubewell water in rural Bangladesh can be branded.