MAM

Brand building and innovation paramount amidst price wars

MUMBAI: For a couple of years now, consumers have been subjected to the ongoing price war between the detergent and shampoo brands of Hindustan Lever Limited (HLL) and Proctor & Gamble (P&G). Keeping these rigorous price wars in mind, the first day of the India Brand Summit held in Mumbai on 30 October saw a session on 'Role of brands in the wake of price wars.'

 

The session was chaired by Reliance Infocomm head marketing and branding Sanjay Behl and the panelists included Monginis Foods chairman Zoher Khorakiwala, UDV India Ltd director marketing Santosh Kanekar and The Times of India Group executive president Bhaskar Das.

 

 

Behl kicked off the session by naming various companies like HLL, P&G and Reliance, which had cut costs of their products and hence increased competition in the market. "HLL and P&G indulged in bloodied price wars of their products a couple of years back. Phone calls from Reliance were cheaper than post cards. And factor this; Philips is going to roll out a mobile handset, which will cost less than Rs 1000. The company has set a 2007 launch target but my guess is that it will be rolled out in the next six months," he said.

 

 

Posing a question as to whether price was the only real differentiator left for brands in the market and in the wake of this how do brands manage themselves; Behl opened the floor to the panelists.

Khorakiwala set the mood of the audience by saying that the world's oldest profession was prostitution wherein women provided the same services but the prices they charged were different based on the quality of their services. "That's how branding was born," he said.

Laying down the ground realities of what initiated the brand wars, Khorakiwala said, "Brand wars were created by owners, market forces, customer and technology. Generally it is a new entrant that creates these price wars to generate trails and thus poses a challenge to the leaders in the space. Another reason would be to expand the category and also to prevent a new entrant from succeeding."

He went on to say that in order for a product to survive in the wake of the price wars, brand building was paramount. "The higher the brand equity, the lower is the resistance to price. The brand has to create a value positioning statement and there has to be product differentiation. Your product has to stand for 'something' and not for 'everything' in the consumer's mind space. Finally, price as a sole positioning platform does not create a competitive advantage in the long run," he said.

DAs, on his behalf said that the concept of price wars was highly over estimated. Citing the example of Jumbo Vada Pav, which copied the McDonald model albeit a much cheaper one, DAs said, "There is a huge process that is involved in low cost operations. One has to keep the value proposition of the brand in mind and the same time figure out how to handle low costs. With all the choices that are today available in the market, the challenge for brands is to be strategically different and know your target audience. One has to apply fluid knowledge and not crystallised knowledge to stay ahead in the game because while price is transparent, value is opaque."

Bhel closed the session by saying that the changing paradigm of innovation was what was going to be the trigger for survival in the competitive market.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/intel_0.jpg?itok=FG-hC3Co
Intel CEO Brian Krzanich resigns over relationship with employee

Intel Corporation CEO and member of board of directors Brian Krzanich today announced his resignation for a breach of company policy involving a relationship with an employee.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/philli%5Bpe.jpg?itok=i_OqetJp
Louis Philippe launches new ad campaign #RiseAboveTheRes

One of the India’s leading menswear brand Louis Philippe, from Aditya Birla Fashion and Retail, has come up with a unique ad campaign 'Rise Above The Rest', showcasing that true leadership is about taking decisions that leave a lasting impact.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Taco_Bell.jpg?itok=Z6U0LWrp
Taco Bell wants to make potato great again with new campaign

MUMBAI: Taco Bell is set to make its way into the hearts of potato lovers across India. The brand has just launched a unique potato centric take on the traditional taco. The all new Crispy Potaco will give this much-loved vegetable a new identity where it will no longer play the sidekick in most...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Hewlett-Packard.jpg?itok=WAfcwLQA
HP urges people to use original ink in new campaign

MUMBAI: Information technology company HP (Hewlett-Packard) has launched a digital film Chikloo, as a part of the on-going initiative to promote its original ink and cartridges.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/22/Oyo_Rooms.jpg?itok=VkrFCVy8
Oyo expands footprint in China

MUMBAI: Indian budget hotel company Oyo Rooms has forayed into China to cater to the country’s burgeoning hospitality industry. Oyo Rooms. The Softbank-backed Oyo in China will have 11,000 exclusive-franchise or merchandised rooms across 26 cities. The service will be available in Xiamen, Kunming,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/johnson.jpg?itok=DKeojJYF
Johnson's celebrates 125 years with new campaigns

American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company, Johnson’s recently completed 125 years in the baby care products category in India.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/itc.jpg?itok=cX8Y1slV
Team ITC makes India proud ,Wins a Silver Lion at the Young Lions Marketers Competition at Cannes

Two young women managers from ITC made India proud by winning the Silver Lion at the very competitive & prestigious Young Lions Competition at Cannes. The team comprised Raisa Chakravarty and Anupama Sharma from ITC's Personal Care Products Business. They had earlier won the India Challenge....

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/walmart.jpg?itok=iUQSOmvw
Walmart sells $16 billion worth of bonds for Flipkart acquisition

American multinational retail corporation, Walmart, has decided to sell $16 billion worth of bonds to help finance its investment in Indian e-commerce giant Flipkart.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/Greenscape.jpg?itok=PAtWgjGE
Greenscape gets insects to tweet & spread awareness about e-waste

MUMBAI: Most people dump their e-waste just like their regular waste. This results in e-waste ending up in dump yards and landfills. To discourage people from doing this, Greenscape, India’s leading IT waste disposition company, joined hands with Dentsu Webchutney to launch #TinyBugsTweet campaign...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories