The white paper discusses the science of differentiation through balancing cost, quality, and aspiration. It provides examples of how brands like Swatch watches, McDonald's, and Benetton have found success in different markets by achieving this balance. The document also outlines how traditional products like Camembert cheese and cream cheese were transformed into branded products through differentiation. It profiles the Japanese company TOTO and how they elevated and branded toilet and bathroom products through innovative technology and a focus on quality.

1. W H I T E P A P E R
SC IEN CE ntia
of
tion
fer e
Dif
Senior Leaders Programme – Branding Workshop
Seven corporations consortium: Genpact, Wipro Ltd., HDFC Bank, Dr.Reddy’s Lab,
Colgate Palmolive, Mahindra & Mahindra and Aditya Birla Group
Shombit Sengupta
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2. I. The science of
differentiation comes
from the Balance
of Cost, Quality & Cost Quality Aspiration
Aspiration at any
price point
The balance of cost, quality and aspiration at
any price point of a product or service is a must
Although Swatch fashion
for tomorrow’s forward looking marketing. The is available for only $30, its
selling price of a product or service is a big factor
for target customers, whether the category is low cheeky and good fun to
or high priced. Most people do not flaunt money
without having the appropriate result from the flaunt in front of people.
product.
An example: Since 1982, Swatch watch It has the same aspirational
has created a new watch cult in the world
where the cost is very low but aspirational value as the Rado, Tag
value is the same as other sophisticated, Heuer, Rolex, Cartier.
centuries-old, expensive watches.
Rado Tag Heuer Rolex
$ 7000 $ 4000 Swatch $ 30 $ 10000
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3. II. Success of two The success of McDonald’s needs
no explanation. The best example to
foreign brands in showcase the giant’s success is the
India in the balance McDonald’s at the 6,00,000 sqft Metro
Junction, the only mall in Kalyan, 50km
of aspiration, quality from Mumbai. Its catchment population
and cost with high of 4 million brings in customers into
the mall.
differentiation Benetton
The success of to highly differentiated foriegn Price reduced Global Standard High Style
brands in India where spiration, quality and cost
are balanced.
Cost Quality Aspiration
McDonald’s
Low priced Outstanding Very High
Family at Mc
Friendship at the Mc
United Colours of Benetton has made a mark
in India with about 100 stores in the nation
already. The brand has significantly reduced
prices for India and is doing extremely well with
young Indians. UCB is undoubtedly becoming a
Youth in Mc benchmark for competitors.
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4. III. Science of
differentiation that Camembert
An unbranded
made history generic product
Very traditional French cheese made by farmers with
Mashed organic ingredients and sold in the open market. For
potato centuries, the shape of the cheese has been round.
There are 3500 camembert brands, home industry made
and industrially made. Of these, Caprice des Dieux is the
Traditional home made mashed potatoes number one brand.
Nestle
Mousline
Mousline has become a must-have product at home
today. This instant branded mashed potatoes in
dehydrated form has displaced home made mashed
potatoes with its convenience of preparation and
excellent taste.
Cream Camembert transformed to Caprice des
cheese Dieux (Tantrums of the Gods)
made at Bongrain Corporation displaced Camembert
home from being a traditional home industry product to
becoming an industrial branded category with
Cream cheese has been prevalent as a home made l A provocative name
product since 1754 in England, and 1850 in France.
Cream cheese is not available in the market in the non- l Oval shape packaging
branded form.
l Guarantee of product consistency in taste and
Philadelphia quality.
cream cheese Today, Caprice des Dieux has become a
The first cream cheese in the reference of Camembert cheese consumed by
US was made in New York in French families every day.
1872 by American dairyman
William Lawrence.
In 1880, ‘Philadelphia’ was adopted as the brand
name, and today Philadelphia has become the
reference of cream cheese across the world.
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5. IV. Would you love to
brand the shit pot?
Curiosity: How can this industry work to change
the perception of human hygiene for better mind
TOTO Ltd. is a leading
Japanese manufacturer
of plumbing products,
and system products like
modular bathrooms and
system toilets.
Observation: by a very innovative Japanese
company
The company was
incorporated in 1917 as
Toyo Toki Company, Ltd.,
in Kokura, Japan, with
assets of¥1 million.
Throughout the company’s
first half-century, TOTO’s
Action: This is TOTO who elevated the
experience of ablutions, making it heavenly fortunes paralleled the
growth and activity of
the Japanese economy
as a whole.
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6. TOTO’s product TOTO’s product range, by categories:
range in series:
All with the
science of
differentiation Washlets
Toilets
NEOREST
SERIES/SE
Bidets Faucets
NEOREST
SERIES/L
Accessories
Materials Showers
Wash basins
NC
SERIES
Bathtubs
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7. Intelligent toilet: Daiwa TOTO’s success factors
House and TOTO l Is technological innovations and high quality
standard have made TOTO an iconic and
Japanese builder Daiwa House and TOTO have much-loved brand in Japan
teamed up to develop a bathroom that lets users
monitor their health. It analyzes urine samples, l With European consumers demanding an
measures your blood pressure, and checks your ever-more luxurious and fulfilling bathroom
body fat experience, TOTO as the world’s most
sophisticated bathroom products, entered
the market and elevated the bathroom from
the merely functional to the restorative and
meditative
l TOTO’s life-enhancing Clean Technology is
set to revolutionize Europe
Toto Neorest 600 series, literally meaning new
rest, represents the ultimate convergence of
design and technology, and helps to transform
your bath space into the ultimate spa experience
In its passion for
branding, TOTO gets TOTO today
l TOTO is the largest producer of high tech
cheeky in the website toilets, worldwide, with a market share of 65%
with its latest
l Its total revenue in 2008 was USD 5046.2
ad for washlets million with an operating income of USD
173.8 million
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8. RATIONAL FACTOR FUNCTIONAL FACTOR EMOTIVE FACTOR
Industries Industries Industries
Auto Suspension Auto Gear Auto Styling
Services Productisation Services Activity Services Relationship
customisation
Food Intrinsic felt Food Organoleptic and Food Product
benefit filling enjoyment presentation
r
stome
End cu
T RU S T
ve
elie
I bn it!
i
This is the non-visible area. This has high relevance This is about subtlety
The kind of quality initiative to customer usage and and aesthetics for all
an enterprise takes is at its habit first interface areas with
own discretion. That needs the customer
to be exposed to make
customers understand the
scientific value of the delivery
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