Market Leader vs Market Followers

The article is aiming to study how big imperfections argon losing their grocery voice & what changes they ar bringing in their merchandiseing strategy to cope up with the current market scenario or to regain their market share. This study is pore on leadership in Indian market on sundry(a) segments, Brand committedness, and grime differentiation. This study focus on current market scenario with changing trends of market share in various segments.Introduction rivalry essentially means a fight and a monopolist enjoys a hold over the market and has control over price and node. With the borrowing of pro-competition policies by the government subscriber line India have been exposed to constantly losing market share in favor of private carriers like Kingfisher, Jet airways, Air Sahara, Spice Jet, Lufthansa and former(a)s.It is tough condition for the marketers, because if you are inefficient, the market forces would edge you step to the fore of the marketplace. Hence, competi tion means hard work. It is a constant struggle to outperform the rivals. Competition is consumer friendly, but non market friendly. Binaca is a dent that existed solitary(prenominal) in yester divisions.Binaca could not compete with the market competition & finally failed. The to the highest degree remembered thing about Binaca is its conversion to Cibaca. So, why the company re-launched Binaca and not Cibaca? Cibaca changed the punctuate name Binaca to Cibaca when it was sold to another company. While Dabur bought Binaca, Colgate Palmolive bought Cibaca. Dabur has launched Binaca and now we have two Binaca and Cibaca in the market. (Though Binaca was besidesthpaste and Cibaca is currently being sold only as a toothbrush.) Brand is re-launched to leverage on past steel equity.Kelvinator India refrigerators has led a yo-yo type life till now. There have been frequent changes of ownership, which withal included an 18-month stint with the enemy, tumble. Worldwide, the Elect rolux tick off owns Kelvinator. During the period 1997-98, when Electrolux was just entering India, it did not have the capacity to hold on to the sales of Kelvinator. It had to sell it to Whirlpool to sustain sales. Whirlpool took advantage of the situation and milked the trademark in that time. subsequently the stipulated period of 18 months, Electrolux took it back. Since then, it has been contributing to a steady 65-70% of the companys revenues, a booming re-launches. Electrolux saved on a lot of cost it would have credibly incurred had it launched a tender brand.One of the around important assets that the marketer discharge possess is the trust of the customers. A brand is the interface between the marketers and the customers. It signifies the despicable point between the trade efforts and its effect on customers, either absolute or negative. As the marketers are trading on the slippery ground, if they agree on quality they send wordt prevent consumer to switch bran d to another.According to Rap P, Stan and Tom Collins, in their book The great trade turn grounds- The ability of the manufacturers to copy genius anothers most successful product and the brand hopping encouraged by the tempting discounts may be goodly weakening the grip of the loyalty in legion(predicate) categoriesErosion of the brand loyalty has be strike one of the serious concerns now. The pickup ad weeks marketing week of US suggests that The smell that once consumers buy a brand, they will stay there, is not true. The serving of consumers who wished to stick to major brands dropped from 80 to 60 percent during an eight year period.In todays market scenario the leaders are losing their market share & turning to followers for the sense of emergency. Eye-catching color in and gee-whiz features arent enough for successful products and services today. To rise above the sea of monotony, companies need to be different in a way that is main(a)and game-changing. According t o HBS professor Youngme Moon.Brand LoyaltyBrand loyalty is harder to come by today as different brands are coming with too many choices and not with enough differences. Well known brands command a price premium. Japanese companies such as Sony and Toyota have built a huge brand loyal market .At the same time, developing a branded product loyal to the customer requires a great finagle of want term investment, especially for advertising, promotion & packaging.Woodland is a brand that has built its brand equity on the pillars of being sturdy and change slight with futuristic designs. It has also forayed into apparels and accessories. To maintain their positioning in the judging of consumer the brand has also introduced more specialized products like Yoga collection, Kids collection and the Woods collection. The brand has customized products for the calamity enthusiasts and keeps adding parvenue technologies to make their products the ideal choice for all adventure lovers. Now, th e brand has been focusing on eco-friendly products and uses raw materials that are less noxious to the environment.Were familiar with the acronym WIIFM, which stands for Whats in it for me? This is the exact question that the consumers are asking themselves, and the brands need to be able to answer them properly. If they are futile to do the same the consumer will switch from one brand to another. The political economy of customer retention makes a compelling case for relationship marketing. It costs approximately five times more to attract a customer than to keep a customer. So losing market share is very serious issue for market leaders at present.Brand Loyalty is the consumers certified or unconscious decision, expressed through intention or behavior, to purchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or take aim of quality at the right price.In todays marketing environment, market advertisers ar e trying to break consumer habits, and helping them to acquire impertinently habits, and reinforce those habits by reminding consumers of the value of their purchase and encourage them to continue acquire those products in the future. The proactive approaches of rivals are compelling the market leaders to tolerate their market share. Brand DifferentiationThe brands want to keep on differentiated from other brands they will survive in the market & enjoy customer loyalty if theyll be able to position themselves different from their competitor in the mind of consumer as well as in the market. Brands are investing on their advertising & promotion to differentiate themselves from others. FMCG major Dabur has undertaken a 360 degree rebranding use of goods and services for its brand Real and has introduced late packaging, a new brand ambassador and communication activities.The company has reportedly spent close to Rs 7-8 crore on the entire exercise. certainly, the brand is going ahead with the 360 degree communication plan, which includes innovative OOH bleed in select cities, in-cinema advertising, TVC, radio, DTH for the very first time and print advertising, to remain differentiated from other brands.There are various ways they can achieve this aim. The brand differentiation is basically brought by positioning of brands. , several(prenominal) of the worlds most iconic brands are starting the year with a new look. ITV has ditched its yellow and blue boxes, computer chip maker Intel has introduced a new strapline, and telecommunications giant AT&T has undergone a facelift.Airtel has taken the leap and revamped its logo, and the brand is on media overdrive to drive home the point about its new avatar. Brand differentiation can also be achieved by grotesque selling position of the brand and for increasing the brand value and brand equity. For every business, the health of its brand is key to its success. The brand is the emotional kernel of the business, says Clare Salmon, director of marketing and strategy at ITV. If the heart stops beating, the animal is going to die.Differentiation attacks the fundamental substructure of competition. It makes the product dissimilar and hence, less substitutable. A general class of products is differentiated if any significant basis exists for distinguishing the good or service of one seller from that of another. Such a basis may be real or fancied, as long as it is of any importance whatever to buyer, and leads to a preference for one variety of the product over another. According to Chamberlin, Edword, The theory of monopolistic competition, Cambridge, Mass, Harvard University Press, 1956.p.66. Current Market scenario.