Brand Strategy: The Redefinition of Value
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Transcript of Brand Strategy: The Redefinition of Value
![Page 1: Brand Strategy: The Redefinition of Value](https://reader034.fdocuments.us/reader034/viewer/2022042614/55a0dad11a28ab325a8b45eb/html5/thumbnails/1.jpg)
The Redefinition
of ValueWhat does value mean to today’s
consumer
A Presentation by: Anya C. Gonzales
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How Does Your Brand Provide
Value?
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Many Brands Do Not Know
Or Think That Value Only
Equals Money
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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
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BUT…
Simply offering discounts is
not enough
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Why?
Consumers are
spoiled.
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Let’s Look At
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When They Changed Their Strategy
From
Frequent
Discounts
Everyday Low
Prices
Their Sales
Flopped!
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Why
?
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The Take-Away?
JC Penney created
the value of “a good
find”
Change of
strategy
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What can we learn from JC Penney?
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Brands need to find more
ways to offer value.
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Value Can Stand For
• convenience
• being inexpensive by comparison
• greater choice
• peace of mind
• quality
• an amazing experience
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CONVENIENCE
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Which One Is Cheaper?
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Consumers Pay More For Pods
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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
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Which Room Looks Better?
PodsLiquid
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INEXPENSIVE BY
COMPARISION
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Addiction Central
The biggest legal addiction in the world is: Coffee
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The Average American Spends $1000. Per
Year On Coffee
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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
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Keurig Cups
Cost = $1.00 a cup
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Consumers want affordability and
indulgence
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GREATER CHOICE
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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
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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
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Wendy’s Value Menu Offers
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PEACE OF MIND
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Have You Ever Been Late For Flight?
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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.
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Pay More Upfront but Get More Peace
of Mind
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QUALITY
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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.
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Why Do Consumers Enjoy Greek
Yogurt
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EXPERIENCE
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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.
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Tasty Burger Offers An Experience
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Food And Fun Creates An Experience
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What Can We Learn?
Consumers are of two
minds:
They are more budget
conscious
BUT want to purchase
value-added products
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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.
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THANK YOU
Any Questions or Comments?