01-how To Convert A Commodity Into Brand

How to Convert a Commodity into Brand Assignment-01 of Marketing Management-I

Let us suppose a Commodity named ‘XYZ Mobile’ and we have to relaunch and establish it in the market as a Brand. So before proceeding further, we must know something about commodity and brand.

What is Commodity? Commodities are usually bought and sold based on price.

What is Brand? A distinguishing symbol, mark, logo, name, word, sentence, or a combination of these items that companies use to distinguish their product from others in the market.

Now the question arises that; Why do you need to define your brand? • to ensure that you have a fresh product in competitive proposition . • to ensure that your brand works strongly at an emotional as well as at a rational level • to ensure that your brand can deliver consistent and better performance. •In more detail..... •Brands need to provide customers with a consistent, compelling experience in order not to confuse them, as confusion leads to doubt.

Key Action Points Your brand should be defined according to the following dimensions: •

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central organising thought – The organisation ‘XYZ’ is manufacturing mobile for each and every class of people. • Its slogan – Use my product for once & you’ll suggest even others forever. • Its personality – It is of light weight and obviously a latest gadget.

Key Action Points (Cont.) • Its values – It can be used for everything as per your requirement from a mobile. • Its appearance – Ultimate and single in its segment. • Its emotional benefits – It is what you’ll fill after experience. • Its hard benefits – Again the ultimate one in its price and features.

Central organising thought Slogan:- Slogan Identify the Brand •The personality of the brand •To whom you have to sell your brand, which type of personality he is having? We must consider these things before defining the brand. •  •The values of the brand •What does the brand stand for? What does it believe in? What would it make a stand on? •

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Appearance •What does the brand like? What does it look like? What does it wear? How does it speak? •Emotional benefits •What does the brand do for its customers emotionally? •These can usually be classified into: • Avoids pain • Reduces pain • Gives pleasure •

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What is Commodity Branding? Today what rules? A single word “BRAND". Brand not only is a differentiator but also a value creator for a product. It creates a space in the minds of the customer which has been blocked & clogged with various desires, wants and means. Brand has been like a light-house in the ocean of in-differentiable products giving rays of assurance of quality, dependability and value. It also acts as a direction provider for the customers to choose the right path in obtaining value for money. •

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Today's world is moving towards lesser and lesser differentiation in the products due to technological developments. This development has reduced the competitive advantage of various companies who earlier had a concept of power brands. Day by day we are moving towards a world which is in-differentiable product rules with the only parameter of differentiation price. •

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We have been living in a world dominated by brands like Nokia, Samsung, Apple, Motorola, HTC, etc. •

Corporate Strategy A fundamental responsibility of corporate management in a commodity product business is to continuously position the enterprise to exploit the changing market environment. Management must monitor and asses the dynamics of the market place. •Following are the various analyses that we need to do to arrive at a better competitive strategy:•

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Customer Analysis: •To establish a strategic edge over its competition must define the broad market it intends to serve, segment the market and identify the specific segments it intends to concentrate upon. The customer analyses are essential for the complete competitive strategy development and it includes Defining the market place, Market Segmentation. •

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Competitive Analysis: •The competitive analysis begins with an examination of the structure of the industry. This structural overview provides insight into the attractiveness of an industry and the competitive rivalry. •

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Internal Analysis: •A critical assessment of a company's strengths and weakness can be a painful process for management. It forces managers to identify things as they are in terms of Performance analysis. •

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Environmental Analysis: •Environmental analysis is concerned with identifying trends, opportunities, threats and limitations that will affect and influence a firm's strategic position. •

The decision making process: • • • • • • • • • •

Decision making process by the consumers

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Pricing strategy: •A price strategy can be either demand, cost, or competitive in orientation. In demand-oriented pricing, the retailer sets prices based on consumer desires. The top of this range is called the demand ceiling; the maximum consumer will pay for a product. •Cost oriented pricing sets a price floor, the minimum price acceptable to a retailer so that he can obtain a specified profit goal. •With Competitive oriented pricing, the retailer sets prices in accordance with competitors. •

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Brand Identity •The identity is a brand's unique fingerprint that makes it one of a kind. Brand identity lives entirely in the minds of the consumers. An identity is not what the marketers create but what the consumers perceive has been created. •The two most crucial variables that dictate a brand's identity in commodity product market are: •How a brand is “positioned” within the minds of the consumers and prospects, and •What kind of living personality the brand projects into the market place. •Let us try and discuss the above stated crucial variable like "Brand positioning", brand positioning is the strategic genesis of the marketing mix. The strategic personality is the set of external qualities of each brand, its public face, which is a direct extension of its positioning. •

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Thank You