Monday, September 2, 2013

Challenge of growth in mature markets-Series 1

When products get matured and markets gets matured creating brand valuation becomes a struggling activity. In my research I have come across where certain steps were taken by some companies across the globe that made a remarkable foot mark on matured markets in brand creation. The first steps which I have witnessed are that to move from a pattern of low-volume use to a pattern of potentially higher-volume user segment. Building per capita volume of consumption. Understanding the consumption pattern and its bottle necks are the primary part of the research for launching products into the market. We have found that products are now being sold in supplementary format rather than single format so that sales and brand valuation grows mutually and exclusively together.

For example coca-cola, Pepsi and other soft drinks are sold in KFC, McDonald, and Pizza Hut etc. The benefit of selling soft drinks with these channels is that each food outlet has its own preference and choices of customers but while coming to drinks it remains the same despite of different culture of foods. This leads to increase in per capita brand consumption. Coca-cola or Pepsi is being sold as an ancillary product which is consumed with different types of food items being sold at different outlets. Over here the customer don’t have to go for an second thought for consumption of soft drinks, it becomes a supplementary product. People are compelled to go for the soft drinks and hence the brands of the drinks get a constant loyal customer automatically generated from the food shops. Well this part of the story is being termed as micro marketing which is the second part of increasing brand valuation. Moreover specific marketing plans are devoted to specific situations such as lunch and dinner, breakfast and evenings.

Another way which I have come across is by identification of the barriers to consumption of brand. Identifying the barriers of consumption and relieving them was a service not only to clients but also to profitability. But it is first necessary to understand the very specific circumstances and motivations of consumers in each cell. To increase a specific type of behavior requires behavioral segmentation, then an in-depth understanding of those in each of these behavioral segments. Geographical differences and cultural differences needs to figure out so that products gets proper brand valuation. For example Pizza Hut, KFC may not be famous in a remote village but plain simple foods like Dosa, Sambar, Dal Rice etc could be of great importance. Now if coca-coal or Pepsi is available over their also then calculate the brand valuation which is being available even in Pizza hut and in a small shop in a remote village. Brands helps to bridge the cultural gaps and also segments the market and creates value in different market segments. Further I find that one needs to identify the barriers of consumption of brand by analyzing who are they? Why don’t they consume more? Is it a taste problem, a satiety problem, a price problem, a format problem, a packaging problem, an insufficient variety of line extensions distribution problem?


Advertising companies plays a significant role while designing the brand valuation of an product. In today’s globalised world we consume a particular situation and it is this situation that defines the brand’s competitiveness. Today we already find stupendous growth and changed advertisements where specific situations are created so that the consumer can have a better understanding of the product usage and its brand value. 

The situation is the brand’s true battleground. Each situation is associated not only with a different subset of competitors, but also with expectations, needs, volumes, and growth and profitability rates. For example the advertisement of Horlicks which caters to every segment of the society is an wonderful brand value creation advertisement followed with product diversification. Whether it’s a matured market or an underdeveloped market judicious mix of strategies would create the brand value which finally leads to the success of an product life cycle. In my next article I will depict the story of product life cycle death and how it can be revived or saved.

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