Thursday, September 24, 2009

Brand appeals in sync with value pricing

The recent recessionary trend show us how big brands succumbed to the pressure and finally tumbled while smaller players survived. Its not that those brands succumbed were bad in strategies but what i feel their brand appeal was not in sync with pricing. Pricing is relative and when we use the term value pricing it can differ more. But what pertinent is how the consumer perceives the price of goods and commodities. So redefining value is very important for companies to sustain in the market. Do not get carried away by value that is defined by lofty advertisements and retail appeal. Get down to the basics and focus on basic brand appeal. Brand appeals needs to be in sync with value pricing. Reduce obscene margins that are typically made and taken for granted in categories. Brands must not distance themselves from customers by creating wall of unfair means. What is more important is mass appeal. You should not sacrifice width and breadth of appeal for mere margins. Bargaining power of consumer is increasing day by day. The awareness level among them is very high now a days. So if you adopt unfair pricing then the customer will definitely say bye bye to you. At the end of the day Brand appeals should sync with value pricing.

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