Brand management

Who changes first

V.Mohita Marketing LMN

16th January 2013

WHO CHANGES FIRST THE BRAND OR THE CONSUMER

Attempting to answer this question is much like trying to answer the most debated question which comes first the egg or the chicken. When say brand changes first, it attempts to change only after significant research done about the target segment. If we say that the consumer changes and thus influences the brand, the consumer could only change on the basis of the need generation created by the brand.

et us say as a summary of the case that the relationship is indeed symbiotic much like flowers and bees. !he brands are dependent on the consumers to sur"i"e and thri"e and "ice "ersa. As mentioned in the case, for this relationship to sur"i"e it is essential for mutualism to e#ist. Along with the e#amples gi"en in the case few other brands that failed to sur"i"e are primarily due to failure to change of the customer$s dependency such as %ero# which failed to recogni&e the need for portable photocopier system.

!he consumer needs change not only because of the needs created by the brands but also due to factors such as globali&ation, economic needs, purchasing power parity. !his age of awareness has enabled the consumers to make informed decisions about the a"ailability and the compatibility of the brand with consumer need. With the plethora of options being a"ailable it is up to the brand to be head and shoulders abo"e the rest. !his could ideally be achie"ed with instant need gratification and also bridging the gap between the consumer perceptions and reality.

!aking the instant need gratification one step further it is not enough to obser"e the trends of the changing consumer habits. It in"ol"es e#tensi"e '( to be able to track which changing need is a fad and which trend is here to stay. !he brands need to be wise enough to recogni&e where to in"est and for what to in"est in terms of the market research so as to utili&e the full potential of the inno"ation. When )te"e *obs of Apple

says that they gi"e customers not what they demand but what they need+adapting from his famous quote customers don$t know what they want,, it is not without considerable research. !he re"olutionary product I-pod could be considered a step abo"e )ony$s e#isting Walkmans. It could only be successful as Apple recogni&ed the need for eliminating cassettes.

.ow, if we look at the other reasons that brands change- competition tops the list. As mentioned in the case brands often change as a reaction to something changing. It could be other brands or the customers themsel"es. /owe"er the response gi"en to the changing brands without the backbone of the research would only result in a short term profit and reduce the si&e of the cake for e"eryone playing in the same segment.

We should also take note of the point that the brand management also now in"ol"es the concept of customer equity. 0uilding customer loyalty and retention, cross selling and deep selling broadening the product offerings, down gradation as well as up gradation are all means to increase the customer equity.

1or a mutually symbiotic relationship between the brands and consumers to sur"i"e and thri"e, it is essential that they change together. (egardless of the fact that who changes first, it is mandated that the other also respond in the same direction. A successful relation would only reach its mature stage when the parties in"ol"ed become fully aware of each other and gain each other$s trust. 1or a consumer to trust a certain brand, he2she should know that there is mutual benefit from the brands offering. 1or a brand to trust the customer, the brand should make e"ery effort to become aware of him2her and grow for the customer in a way that any plant bends towards light.