Rethinking Marketing

Retailers are eliminating brands

• The India's biggest retailers are wrestling with having too many types of brand-namev products. At the same time, shoppers are buying less and looking for bargains.

• Unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand.

• Market research firm expects, BiG Bazar and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.

Consumers’ Demand of Change

Too many brands & too many line extensions

• The feeling is that as these companies keep extending their [product] lines, it's only causing confusion for shoppers and not really driving them to buy more products.

Consumers’ Demand of Change

Consumers are saying “enough is enough”

As a consumer, "Do I really need to decide between 15 different types of detergent when I go to a store?"

Easy access to information and friction- free purchasing is making consumers ever more agile—and less loyal.

Consumers’ Demand of Change

The new consumer buzzwords “functional & simple”

• Captures the phenomenon of simple, small and/or cheap products and services;

• Smaller and/or limited number of features, to keep prices low.

• Simpler, or easier to use, for inexperienced consumers.

• Energy efficient (or not using any traditional energies at all) and/or easy to repair and/or waste-reducing.

• Robust, as some of them are used in rugged conditions.

• Well-designed.

Consumers’ Demand of Change

II. Traditional Vs New Rules of Marketing Engagement

Marketers are wondering

Traditional Vs New Rules of Marketing Engagement

What do we do now?

Yet some brands are doing very well

Traditional Vs New Rules of Marketing Engagement

Because they focus on the customer

Traditional Vs New Rules of Marketing Engagement

While others only focus on price

Traditional Vs New Rules of Marketing Engagement

Which in turn decreases the value of the brand

Traditional Vs New Rules of Marketing Engagement

So today, what’s more important ?

Traditional Vs New Rules of Marketing Engagement

Profitability

Market Share

Old metrics are being replaced

Traditional Vs New Rules of Marketing Engagement

Profitability

Market Share

III. The Transition and Expected Challenges

The Transition

The Transition and Expected Challenges

Product Driven to Customer Driven

Product Manager Driven Brand

Customer Driven Brand

Transition

The Transition…And the Customer driven organization

Customer

CRM

Market Research

R&D

Customer Service

The Transition and Expected Challenges

The TransitionAnd all this is spearheaded by the……

Customer

CRM

Market Research

R&D

Customer Service

The Transition and Expected Challenges

Chief Customer Officer

Chief Customer Officer

An Executive that provides the comprehensive and authoritative view of the customer

and creates corporate and customer strategy at the highest levels of the company to

maximize customer acquisition, retention, and profitability.”

Responsibilities include:

• Drive profitable customer behavior

• Create a customer-centric culture

• Delivering and demonstrating value to the CEO, the Board, peers, and employees.

The Transition and Expected Challenges

Expected ChallengesLIKE any other organizational transformation, making a product-focused company fully customer centric will be difficult.

• People Change Management:

• IT group will want to hang on to CRM.

• R&D is going to fight hard to keep its relative autonomy.

• Traditional marketers will battle for their jobs.

The changes requires overcoming entrenched interests, it won’t

happen organically. Transformation must be driven from the top

down. But however daunting, the shift is inevitable. It will soon

be the only competitive way to serve customer.

The Transition and Expected Challenges

Conclusion – A Glimpse of Future Organization

The changes requires overcoming entrenched interests, it won’t happen organically. Transformation must be driven from the top down. But however daunting, the shift is

inevitable. It will soon be the only competitive way to serve customer.

The Transition and Expected Challenges

The best marketing in the world is not going to save your company orbrand if you can’t execute and put the customer at the center of

everything you do.

Peter Drucker was right “The aim of marketing is to know andunderstand the customer so well the product or service fits him

and sells itself”