Bargain-Brand fails then you’ll have the added cost and time of cleaning up plus the cost and time to rebuild the Premium-Brand.
It cost GM $15 Billion to launch and maintain the Saturn division. Delta Airlines launched Ted Airlines and lost billions too.
These two elephants didn’t understand their uniqueness nor able to response quickly to market changes. Rather they copied the
competition thinking that would satisfy the market.
On the other hand, fifty years ago, Anheuser-Busch was facing a low-price
assault from regional players which opened up a whole new market category. Anheuser-Busch responded by opening up another company
that was completely separate from the parent company; perhaps you’ve heard of Busch Beer.
Are you looking at your customers or
just your competition?
The famous basketball coach John Wooden won more college basketball championships than anyone else. Part of
his success was to never allow one player to be compared to another. Rather, each player was judged by his own skills, performances,
and productivity. Companies trying to copy Bargain-Brands don’t have the same competencies, people, collective thinking processes,
and experiences like their competition. Look at Steve Jobs and his string of successful products; iPod, iPhone, iTunes, etc.
Therefore, don’t copy your competition, rather seek what is good for the customer and use your uniqueness to develop your product.
Know
thy customer
This is a key time to study your customer to determine their true needs and the perceived value of your offering. Advances in Neuromarketing have discovered that traditional marketing research can fall short in truly understanding how a customer
receives your message. Each year billions of dollars are spent on traditional market research and still 80% of new product launches
fail. Neuromarketing will give you insight on the emotional needs of your audience and how they will perceive your messaging
and marketing.
emotional brain and how past experiences are recalled when we encounter a brand experience. Walk into a Whole Foods Store and you’re
bombarded with a cornucopia of beautiful food, fresh baked bread, brewed coffee, and desserts turned into art. You’re flooded
with emotions of mom, home, security, abundance, and happiness. The experience is frequently joyful and you’re willing to pay
premium prices for their products.
The power of association will engage our senses to recall positive experiences that we will
tie to the brand. Called somatic markers, they represent a total compilation of emotions, negative associations, and positive associations.
When a woman is given a light blue box with a white ribbon, the Tiffany brand and blue color evoke strong feminine emotions. When
we think of a well branded produc t, such as, Coke, Coach, Chanel, Harley Davidson and Tiffany, many of us experience an emotional
and somewhat sensual positive response. A good brand tied to Neuro-marketing should offer:
· A great experience that exceeds customer’s expectations
· A clarification of the value
of the product
· A decision by the prospect to consider purchasing it
How we
associate products with past experiences can determine our purchasing considerations. Mr Lindstrom in Buyology highlighted a few examples
such as;
· Light blue for a woman can be associated with engagement, marriage, babies,
and fertility. Pink is associated with luxury, sensuality, and being feminine.
· Color will increase brand recognition by 80% and represents up to 50% in the decision making process to choose a brand product.
· People will buy more out of love (53%) versus sex (26%).
· Be authentic, transparent,
and real. We buy from people we can relate to.
Don’t let your Bargain-Brand cannibalize the profits of your Premium-Brand.