Brand Strategy: The Redefinition of Value
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The document discusses how consumer definitions of value have expanded beyond just price. It provides several examples of brands that have found success by offering additional values like convenience, choice, peace of mind, quality, and experience. Specifically, it highlights how Tide Pods, Keurig cups, Wendy's value menu, JetBlue's flight packages, Greek yogurt, and Tasty Burger's dining experiences provide consumers value through these expanded definitions rather than just lower prices. The key challenge for brands is helping consumers feel they are getting value-added products while still watching their budgets.
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Brand Strategy: The Redefinition of Value
- 1. The Redefinition of Value What does value mean to today’s consumer A Presentation by: Anya C. Gonzales
- 2. How Does Your Brand Provide Value?
- 3. Many Brands Do Not Know Or Think That Value Only Equals Money
- 4. This Mindset is Understandable -Unemployment is still high at 7.6% -58% of consumers are budgeting more than they did in the previous year, up 6% from 2 years ago -19% of consumers follow a strict weekly/ monthly budget for clothing up 15% from July 2010 -28% of consumers follow a strict monthly/weekly budget for food as of Feb 2012 up from 23% in July 2010
- 5. BUT… Simply offering discounts is not enough
- 6. Why? Consumers are spoiled.
- 8. When They Changed Their Strategy From Frequent Discounts Everyday Low Prices Their Sales Flopped!
- 9. Why ?
- 10. The Take-Away? JC Penney created the value of “a good find” Change of strategy
- 11. What can we learn from JC Penney?
- 12. Brands need to find more ways to offer value.
- 13. Value Can Stand For • convenience • being inexpensive by comparison • greater choice • peace of mind • quality • an amazing experience
- 14. CONVENIENCE
- 15. Which One Is Cheaper?
- 16. Consumers Pay More For Pods
- 17. Convenience Proof Points Consumers are willing to pay more for this product because it gives them the value of convenience. For the brand, Tide pods has generated $31 million in sales from the time it first appeared in March 2012 to June 2012. For P&G, it's been a breakout hit that rocketed to $500 million in U.S. sales in only about a year
- 18. Which Room Looks Better? Liquid Pods
- 20. Addiction Central The biggest legal addiction in the world is: Coffee
- 21. The Average American Spends $1000. Per Year On Coffee
- 22. The Price of Coffee -The average cup of coffee at a shop costs $2.45 -Home-brewed coffee costs about .37 cents a cup -BUT, there is a middle ground
- 23. Keurig Cups Cost = $1.00 a cup
- 24. Consumers want affordability and indulgence
- 25. GREATER CHOICE
- 27. Which Brand Offers The Best Deal? -MacDonald’s value menu only offers about ten items for $1.00 = CHOICE -Burger King offers a lot of options but the prices are high compared to other value menus = SAVINGS -Wendy’s offers the most choice for the cost of their value menu items = CHOICE+SAVINGS
- 28. But Even Wendy’s Needed To Burn To Learn Start of year: They advertised the value menus Later on: They decreased advertising but sales slowed In the end: They returned to promoting the value menu
- 29. Wendy’s Value Menu Offers
- 30. PEACE OF MIND
- 31. Have You Ever Been Late For Flight?
- 32. People Want Less Traumatic Air Travel JetBlue’s Grab and Go Pack -Base fare for 10 nonstop, one-way flights -You can book a flight up to 90 minutes before travel -You can lock in on low ticket fares for an extended period of time.
- 33. Pay More Upfront but Get More Peace of Mind
- 34. QUALITY
- 35. Let’s talk about Greek Yogurt Greek yogurt is about 40¢ more than standard yogurt BUT It Is the only growth driver in the category.
- 36. Why Do Consumers Enjoy Greek Yogurt
- 37. EXPERIENCE
- 39. Why Talk About Tasty Burger -Consumers are dining out less to save money -Food service brands need to find ways of offering “something extra” that consumers are not likely to find at home. -How? Through special event nights or sponsoring a celebrity chef etc.
- 40. Tasty Burger Offers An Experience
- 41. Food And Fun Creates An Experience
- 42. What Can We Learn? Consumers are of two minds: They are more budget conscious BUT want to purchase value-added products
- 43. What Are The Challenges and The Opportunities The challenge & opportunity: Help consumers reconcile the competing mindsets of wanting to save in a shaky economy and still wanting to indulge.
- 45. THANK YOU Any Questions or Comments?
Editor's Notes
- Warranty of customer’s loyalty is broken
- So what else can value stand for?
- -Even though the pods are more expensive they add value to the consumers life because they don’t have to deal with messy measuring and worry about tipping in to much detergent. -Consumers are willing to pay more for this product because it gives them the value of convenience, and, for the brand, Tide pods has generated $31 million in sales from the time it first appeared in March 2012 to June 2012. -For P&G, it's been a breakout hit that rocketed to $500 million in U.S. sales in only about a year