Post on 11-Jul-2015
The Redefinition
of ValueWhat does value mean to today’s
consumer
A Presentation by: Anya C. Gonzales
How Does Your Brand Provide
Value?
Many Brands Do Not Know
Or Think That Value Only
Equals Money
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
BUT…
Simply offering discounts is
not enough
Why?
Consumers are
spoiled.
Let’s Look At
When They Changed Their Strategy
From
Frequent
Discounts
Everyday Low
Prices
Their Sales
Flopped!
Why
?
The Take-Away?
JC Penney created
the value of “a good
find”
Change of
strategy
What can we learn from JC Penney?
Brands need to find more
ways to offer value.
Value Can Stand For
• convenience
• being inexpensive by comparison
• greater choice
• peace of mind
• quality
• an amazing experience
CONVENIENCE
Which One Is Cheaper?
Consumers Pay More For Pods
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
Which Room Looks Better?
PodsLiquid
INEXPENSIVE BY
COMPARISION
Addiction Central
The biggest legal addiction in the world is: Coffee
The Average American Spends $1000. Per
Year On Coffee
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
Keurig Cups
Cost = $1.00 a cup
Consumers want affordability and
indulgence
GREATER CHOICE
Which Brand Offers The Best Deal?
-MacDonald’s value menu only offers aboutten items for $1.00 = CHOICE
-Burger King offers a lot of options but theprices are high compared to other valuemenus = SAVINGS
-Wendy’s offers the most choice for the cost oftheir value menu items = CHOICE+SAVINGS
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
Wendy’s Value Menu Offers
PEACE OF MIND
Have You Ever Been Late For Flight?
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.
Pay More Upfront but Get More Peace
of Mind
QUALITY
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.
Why Do Consumers Enjoy Greek
Yogurt
EXPERIENCE
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.
Tasty Burger Offers An Experience
Food And Fun Creates An Experience
What Can We Learn?
Consumers are of two
minds:
They are more budget
conscious
BUT want to purchase
value-added products
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.
THANK YOU
Any Questions or Comments?