2. what is a commodity? Commodity products which are undifferentiated and consumers buy these products on the basis of their price. Price is the most critical factor that determines the choice of purchase of commodities. - Harish .B
3. Why should one brand a commodity? It is a way to escape from competing on volume and price help to differentiate products enhance their value beyond their functional attributes build preferences versus competing products create long-term sustainable competitive advantage
5. Major challenges Moving away from the price It isn’t easy to convince the customers to make choices independent of price Marketer’s task: show more value to justify the premium paid strong promotional campaigns & very relevant value additions
6. Differentiation most important determinant of a successful commodity branding It is not easy - constraint of cost Marketer’s task : a meaningful & relevant differentiation Quality most used key differentiator
7. Brand promotion Need to be invested heavily in branding & promotion Marketer’s task: use the various brand elements to the maximum The colour, brand name, logo, mascots have significant impact Packaging also plays a significant role Ex: Pillsbury, Aashirvaad
8. Success stories Tata Salt was a pioneer in branding salt one of 1st iodised salt brands - iodine - a great value addition coincided with the Government of India’s initiative to promote iodised salt positioned on the basis of purity & trust
9. Nightingale A highly successful brand in the highly fragmented Notebook/Diary category brand built on innovation It introduced - theme based notebooks & Diaries
10. conclusion branding provides an escape from commoditization as it moves the buying decision away from solely price factors therefore can generate a strong return on investment and long-term sustainable advantage. Reference: (www.adclubbombay.com/index.php?...branding-a-commodity) http://www.brandchannel.com/features_effect.asp?pf_id=114
