Commodity branding allows companies to differentiate their products and compete on attributes other than just price. It helps build brand preference and long-term competitive advantage. Major challenges include moving customers' focus beyond price and meaningfully differentiating products with constraints on cost. Successful commodity brands invest heavily in branding, promotion, and relevant value additions like quality or innovation to justify premium prices over competitors. Examples that achieved this include Tata Salt through iodization and purity, and Nightingale notebooks through theme-based innovation.

1. Commodity brandingPresented by V.DurgadeviMBA-II year DMS,SOM, Pondicherry University

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 pricehelp to differentiate productsenhance their value beyond their functional attributesbuild preferences versus competing productscreate long-term sustainable competitive advantage

4. Welcome to the world of commodity branding

5. Major challengesMoving away from the priceIt isn’t easy to convince the customers to make choices independent of priceMarketer’s task: show more value to justify the premium paidstrong 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 promotionNeed to be invested heavily in branding & promotionMarketer’s task: use the various brand elements to the maximumThe colour, brand name, logo, mascots have significant impactPackaging also plays a significant role Ex: Pillsbury, Aashirvaad

8. Success storiesTata Salt was a pioneer in branding saltone of 1st iodised salt brands - iodine - a great value additioncoincided with the Government of India’s initiative to promote iodised saltpositioned on the basis of purity & trust

9. Nightingale A highly successful brand in the highly fragmented Notebook/Diary categorybrand built on innovationIt introduced - theme based notebooks & Diaries

10. conclusionbranding 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