Luxury Brand Vs Premium Brand

Seth Godin is one of my favorite authors on marketing
but his explanation about Brands that appeared recently on his blog
made me to think. hope you will also like it.

Luxury goods are needlessly expensive. By needlessly, I mean that the price is not related to performance. The price is related to scarcity, brand and storytelling. Luxury goods are organized waste. They say, "I can afford to spend money without regard for intrinsic value."

That doesn't mean they are senseless expenditures. Sending a signal is valuable if that signal is important to you.

Premium goods, on the other hand, are expensive variants of commodity goods. Pay more, get more. Figure skates made from kangaroo hide, for example, are premium. The spectators don't know what they're made out of, but some skaters believe they get better performance. They're happy to pay more because they believe they get more.

A $20,000 gown is not a premium product. It's not better made, it won't hold up longer, it's not waterproof or foldable. It's just artificially scarce. A custom-made suit, on the other hand, might be worth the money, especially if you're Wilt Chamberlain.

Plenty of brands are in trouble right now because they're not sure which one they represent.

HIGH END BIKES IN INDIA

can you imagine a bicycles costs more than a nano? 

a bicycle that is 4 times of an average indian salary per year? 

but there are potential buyers for it? and you got EMI options also 

Cannon Dale, Bianchi, Firefox are some of the examples for it 

somebody has predicted the market size " 7000 bikes per year" 

and growing rate 25% 

targeted at fashion freaks, Fitness Freaks, celebrities, Executives, women 

these bikes are gonna be the next fashion statement of india, and a style fitness mantra. 

i know friends who brought cycles worth Rs.15000

but lets looks at average consumer and the sale brands like Hercules, Atlas, Hercules MTB, Hero Ranger, Ladybirds, which costs you exactly between Rs.1500 to Rs.5000

Citi roads of india still dont have seperate lane for bicyclers...

imagine how could a guy be happy parking his 2 lakh cycle in a shopping complex and that weighs 3 kgs ( easy steal) and do his shopping in india,,,,, no chance.

anyway lets wait and see how market changes.....

Will Mirinda & Coke - Local Concepts in Tamilnadu work?

Coca - Cola has already done a superhit local ad with Tamilnadu famous actor Vijay and it has replicated AMIRKHAN -Train-Blurb ad with Actor Vikram....

but i see suddenly companies trying out local strategies....
Actor vijay is back with Coca-Cola Open Happiness campaign....where in National ad we see Gautham Gambhir...and Hrithik Roshan....

i do like the localisation of Coca-cola ad featuring Vijay....its simple lyrics and visuals replicate the day to day life of tamilnadu...and one line that registers in my mind is " Vaa Thozha....Kudi...Coca-cola" that means " welcome friend....let's drink Coke"

but an ad for MIRINDA with Asin....it hate them all..
first that Typical.....BRIDE scene....come on man South Indians have evolved from asking the bride " DO YOU SING" or " DO YOU DANCE?"

and second in this particular i dont even a single art property that displays the brand color of mirinda (orange). most of them are blue.

but the second ad featuring asin as Vegetable Vendor in a gully market....so pathetic for a brand to stand between vegetables and fruits....the whole miranda brand lost its charm.....
it has truly become local.....

beleive me brothers and sister...i am into advertising for 5 years.....i understood the ad only the third time.....i saw it
as great brand gurus have always said " if you want mass....then forget class"

i directly compare that with FANTA AD featuring Genelia DSOUZA " signal loud....cut adikka allowed"
by luck Fanta has done a stupid ad........but what ever certain done....that stands for the color and brand of Fanta.......

if they have done a classy localised idea....i think miranda might have stopped selling.....
though their distribution is strong...

i think Mirinda will defenitely have to relook at their brand strategy of localising ideas....its good to localise but....think different.....take time to think of a television commercial....but dont stick on to a stupid idea of showing your celebrity as Market vendor....

Customer Funnel Theory - is it working?

I happen to meet a client who is a VP-of india's most recognised tractor brand?

as our meeing went on, he started talking about " HOT PERSPECTIVES"

dont You think HOT associated with Perspective sounds little PORN-type word

and he further explained about FUNNEL THOERY.

i have learnt that in MY MBA, at 2002.

Globalisation. new markets, Niche Markets after all this Jazz ......Is Customer Funnel Theory still working for clients

so i googled for an image of the funnel....it looks quite simple to understand. i think it is time Client look for a new theory....that is really more flat.

let's hope for the next best CUSTOMER THEORY of the world

i think why dont i try?......

Customer Funnel Theory - is it working?

Recession hits Indian Advertising

the last three months for me have been tough...source for new clients, Pitching, Presentations and all that jazz....
k forget it.....

i happen to hear more job shift of my friends, some of them lost job,...some of them thrown out....with out any prior information.

i just tried to analyze Recession and Advertising industry together so that it could help some of my friends and students MBA institiutes


OK....let's get back to basics
Marketing is largely divided into 4 catagories,,,,Product, Price, Place and Promotion.
on recession time....where do you think they can cut costs easily.....on Promotion....just a phonecall to ACCOUNT EXECUTIVE and his following action will reduce their media cost instantly....

advertising comes under promotion ....ya u know it.

then any marketer will get into price , product , place

Promotion (cut media spending) -----Price( reduce price/ Discount price/ Offers) ---Production ( cut cost, sack employees, Produce less) ----Place( forget the distributors bring lesser volume)

but we advertiser will not get affected....instead doing big budget films....we will be doing less budget films, tactical advertising, offer based promotions...

local knowledge of advertising will get more value than branding.....

and atlast....advertising agency will survive.....if they cut cost by reducing people/ getting more freelancers than full time employees....

is there a method to survive this recession....yes the tactics are

shut down computers, send mails.... dont show printouts to the client....let the client understand that we are also suffering because of recession, reduce unwanted browsing and blog updation. ban orkut/ youtube/

Indian Plywood Advertising - analysis and finding

Surprisingly i happen to meet a Plywood manufacturer for a briefing section.....
like every client he also emphasized " my plywood is better than any Plywood in india....and talk about strong, Quality, Longlife, Trust and etc"

as usual i sat on youtube and browsed indian advertising books to find out what's driving Plywood commercial theme
one factors seems to be a great influencing factor in deciding Plywood is Carpenter.

and these are the results i have got
creativity drives the commercial ideas....i liked all of them ...for specimen i have added four links below

Sharon Plywood : http://www.youtube.com/watch?v=tBsDjA_bMI0
Green Ply: http://www.youtube.com/watch?v=uakI_QIQaYs
Century Ply: http://www.youtube.com/watch?v=sIhqCVPnKbk
ArchidPly: http://www.youtube.com/watch?v=rqZAXA76w4Y

three of them based on humor and one based on emotion....

but i believe a slight difference in USP will bring more enquiry for the client

i dont think our great copywriters and strategic thinkers not moving their a@# to find out what is reality...
more than humor and emotion there has to be something that is really close between carpenter and Plywood

or else something that only carpenter knows about the plywood
how the carpenters converse with his assistant or with the house owner....

are we listening to them carefully. i think really great advertising ideas hidden in those conversation...

i am still searching for it ....listening their conversation
i am confident i will get a line that will bring a change in plywood advertising..