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Premium for everyone: Two factors that reinforce the trend towards premiumization
GroupAn international brand expansion targeting only the top segment of the income pyramid or exclusively the rapidly growing mid-range segment misses a good opportunity to tap additional purchasing power in the emerging markets. Buyers there are increasingly opting for more expensive premium products, which in the truest sense of the word leads to an appreciation of numerous product categories. Barilla, one of the market leaders in the international pasta industry, reports, for example, that the effect of premiumization is already responsible for the increase in demand for pasta in emerging markets. Premiumization is a general market phenomenon and by no means limited to the existing premium markets. According to various market researchers, it is now a common and nationwide phenomenon in many growth markets. There are two important factors in particular:
Change behavior and win new customer groups through experiential marketing
GroupThe basic idea of “Experiential Marketing” is that this approach is not primarily about selling something, but about showing how a brand can enrich the customer’s life. Generally speaking, it is a kind of customer-centered marketing activity in the form of staged, experience-oriented events and points of contact, through which a multi-sensual and emotional connection to the target group is established. Experience marketing has long been known in the developed markets of industrial nations. But the concept has a unique significance for emerging markets. This is not only true for premium markets, but for practically every market segment.
The Disruptions Triad – Your source of power for the digital transformation
ServiceplanYou’re probably sick of hearing it again and again. This buzz word that’s always mentioned in the same breath as the digital transformation. Sometimes the disruption takes the form of a threatening scenario, sometimes as a utopia of unlimited possibilities – depending on who takes on the topic or for whom the message is intended. This is almost always accompanied by the urgent plea that we must step things up at the forefront of the digital transformation. The basic tenet is that we require more disruptive technologies. We require more disruptive business models. So let’s get on with it! Come on all you corporations, medium-sized businesses and startups!
Divide and conquer: Flooding product categories to market leadership
GroupIn major growth markets, the mid-price market segments are growing at practically the same pace as incomes. In order to capture larger market shares in dynamically growing product categories, an increasing number of companies are relying on a strategy known as “category flooding”. They aim at several target groups at the same level of the income pyramid, but also address other levels of the income pyramid. By offering more than one brand in the same category, they can achieve greater market share. You know: who only uses one single brand cannot increase sales above a certain level. The main reason for this natural “cap effect” is that consumers have different psychological needs and expectations compared to their preferred brand. Since brands also have a kind of personality, there are correspondingly many people who do not want to commit themselves to a certain brand.
The inside story x 3: eSports: Entertainment giants instead of entertainment for nerds
Mediaplus, Plan.NetIn the series The inside story x 3, experts from the Plan.Net group regularly explain a current topic from the digital world from different perspectives. What does it mean for Granny, and for an agency colleague? And what does the customer – in other words, a company – get out of it?
Addressable TV, the new hyper-effective medium – but does it actually work?
MediaplusTV (ATV) promises to increase campaign impact by supplementing high-reach TV advertisements with targeted, controllable advertising media. However, the test campaign period is now at an end. ATV will experience a significant growth spurt in 2018, making it possible to cover ranges, which will enable ATV to play an important role in campaign planning for certain target groups. A smart moving image strategy will harness the capabilities of Addressable TV, which include programmatic control and TV retargeting. And the next stage of development is already on the starting blocks, with the HbbTV 2.0 television standard set to drastically transform television as an advertising medium.
“Branded House” or “House of Brands”: The role of the corporate brand in international brand building
GroupIncreasing competition, escalating advertising costs and rapidly growing product categories are confronting marketing managers in major growth markets with the challenge to design the best brand architecture. Depending on the choice, it can help a company grow in the fastest and most profitable way. First, it is important to analyze the circumstances in the target market and the brand status of your own company in this market. A company must then select the strategy that suits it best. If the company brand, usually the company name, already has a high degree of recognition and a high reputation or a larger country of origin bonus, it makes sense to take full advantage of this value.
The most relevant SEO News for August 2018
Plan.NetAt last, summer is here. But artificial intelligence doesn’t take summer off, so it can be the ideal babysitter in the car, especially when stuck in a traffic jam. That is, as long as the language assistant actually has something to say. That’s what our SEO News for the month of August is all about. And of course, we can’t avoid the notorious silly-season monster.
Horizontal brand stretching: Using the brand image for other product categories
GroupIn recent years, offering very different product categories under one brand umbrella has become increasingly popular. Xerox expanded its core brand from copiers to computers. General Electric also sells financial services. We can book rooms in luxury Versace hotels, or surf the Internet with Ferrari notebooks. We can even wear shoes or watches from Caterpillar, Porsche or Jeep.
Exploiting the full potential: Separate brands for separate markets
GroupIn order to increase sales, many international companies are building up a differentiated brand portfolio in the major growth markets, consisting of a brand for the upper market and separate brands for medium and lower segments. This strategy, which is based on many brands, is mainly found in the consumer goods sector and has proven to be very effective if properly implemented. In countries such as China, where regulations often require joint ventures in the development of domestic brands, companies are occasionally forced to develop additional brands for political reasons.