Whilst traditionally we used degree-of-satisfaction, or the consumer’s regard for a brand as a key measure of brand health, unprecedented times may cause us to have to work at the other end of the spectrum - degree of dislike - for guidance on retaining consumers…
Incidentally, perhaps this subconscious need of brand owners to explore all growth-avenues is a reason why yesterday’s Birds Eye survey of Top Foods that British Consumers Dislike Eating, attracted our highest readership of the week.
Cost-management as a driver
In the case of a well-known ‘Liver salts’ brand, if the manufacturer still used the original 1930’s ingredients, the product would cost upwards of £3k per tin onshelf, and would probably remain there… Given this escalating cost, the key driver of product innovation was a search for less expensive ingredients that tasted the same and produced the same physical effect on the consumer… i.e. a need to avoid known dis-satisfaction limits for regular users.
On a more personal level, many years ago in the marketing department of a well-known milk-based beverage, we faced similar issues with ingredient-cost and had to search for less expensive substitutes. We fed the ‘revisions’ to our captive audience via the canteen, and I was charged with spending break-times there, monitoring the ‘degree-of-grimace’ on the faces of colleagues as they unknowingly tasted the modified brew…
Whilst we may have risked losing an employee or two, this testing-model ensured that little risk was taken with our precious consumer franchise…
Although we should always aim to delight the consumer by ‘over-delivering’ on performance, perhaps we are in danger of moving beyond satisfying the needs of the consumer if carried to excess... In other words, we are ‘contracting’ with the consumer to deliver a combination of Product-performance, Price, Presentation and Place that compares well with - i.e. is marginally better than- equivalents available in the category.
Delivering significantly more than the consumer is ‘buying’ by ‘over-engineering’ the product runs the risk of confusing the consumer, costing more, and may even make us uncompetitive.
The real issue therefore is to fundamentally understand and manage the expectations of the consumer, thereby releasing resources for communicating the proposition and innovation.
…and if that approach causes us to monitor ‘degree-of-dislike’ of the brand, perhaps it is preferable for us to explore and avoid that point, before the consumers vote with their feet…?
Incidentally, perhaps this subconscious need of brand owners to explore all growth-avenues is a reason why yesterday’s Birds Eye survey of Top Foods that British Consumers Dislike Eating, attracted our highest readership of the week.
Cost-management as a driver
In the case of a well-known ‘Liver salts’ brand, if the manufacturer still used the original 1930’s ingredients, the product would cost upwards of £3k per tin onshelf, and would probably remain there… Given this escalating cost, the key driver of product innovation was a search for less expensive ingredients that tasted the same and produced the same physical effect on the consumer… i.e. a need to avoid known dis-satisfaction limits for regular users.
On a more personal level, many years ago in the marketing department of a well-known milk-based beverage, we faced similar issues with ingredient-cost and had to search for less expensive substitutes. We fed the ‘revisions’ to our captive audience via the canteen, and I was charged with spending break-times there, monitoring the ‘degree-of-grimace’ on the faces of colleagues as they unknowingly tasted the modified brew…
Whilst we may have risked losing an employee or two, this testing-model ensured that little risk was taken with our precious consumer franchise…
Although we should always aim to delight the consumer by ‘over-delivering’ on performance, perhaps we are in danger of moving beyond satisfying the needs of the consumer if carried to excess... In other words, we are ‘contracting’ with the consumer to deliver a combination of Product-performance, Price, Presentation and Place that compares well with - i.e. is marginally better than- equivalents available in the category.
Delivering significantly more than the consumer is ‘buying’ by ‘over-engineering’ the product runs the risk of confusing the consumer, costing more, and may even make us uncompetitive.
The real issue therefore is to fundamentally understand and manage the expectations of the consumer, thereby releasing resources for communicating the proposition and innovation.
…and if that approach causes us to monitor ‘degree-of-dislike’ of the brand, perhaps it is preferable for us to explore and avoid that point, before the consumers vote with their feet…?
3 comments:
Whilst much of what you say is true, especially because brands are thinking this way under the never-ending pressure of EDLP, margin squeeze and ingredient inflation, but surely we are playing into the hands of own label. sure there is always an elasticity to the value we place on brand, experience, taste, etc. vs price but brands surely cannot rest on their laurels and slowly allow brand equity to erode, as that will leave shoppers voting with their feet. Rather brands should look to accentuate the positive (to coin a phrase), look after key differentials, innovate, and work to activate their brand at the point of purchase, and onto shoppers mist and in their mind, which will allow them then to further afford resource for communicating the proposition and innovation - an upward spiral rather than a downward one!
But that said, i do think many are following the degree of dislike thinking, but that path must be far more dangerous.
which is worse, that's a great product but i cant afford it... or it ain't what it used to be, and whilst I can afford it, I no longer like it!!
Thanks for stirring the senses!!
Many thanks David.
I am all for investing in brand equity via a closer alignment with consumer need. After all, this is all a brand has going for it.
As a loyal user, I am very aware of, and sensitive to the 'amount in the tin'
I cannot understand why some brand-owners take the risk of alienating me by reducing the amount of contents without explanation, as their solution to ingredient cost inflation...
Hopefully your namesake (??)will apply the same logic at Tesco over the coming months...
Thanks again
Brian
Hear hear...
I have no doubt that the underlying issue he faces is one of quality vs value.
Post a Comment