LCD TVs – A BCM based study

1. LCD TVs – A BCM based study PradiptoKolay- 2006044 Aditya Trivedi-2007002 HimanshuSahani – 2007023 Rajesh Goli - 2007044

2. Why LCD TV LCD TV segment with a total market share of 6.6% among CTV sold in 08 is expected to grow @100% y/y for next five years. There is no effect of recession – the category grew more than 300% in 08 and is one of the heaviest advertised category in IPL. As purchasing power increases and prices for LCD panels fall, >40mn Indians would enter the target segment in next five years.

3. LCD TV landscape in India Sony • Straddle pricing strategy • Premium brand image • Highest mind share Samsung • Superior technology • Premium pricing • Largest market share LG • Superior quality, service • Aggressive pricing • Heavy advertising • Strong distribution channels

4. Objectives • To study the brand consensus maps of two brands – one leader, one follower. • To recommend to the follower brand strategies based on the study.

5. Laddering • Interviewed three volunteers. • Purpose was to elicit constructs for use in BCM in absence of a ZMET. • Sample ladder we found: Value for money   Big investment   Avoid mistake   meant for family   family belonging

6. Constructs

7. Mapping • Respondents shown the ads of the brand. • Respondents were given 20 cards. • Instructed on the BCM method with the Volkswagen beetle example. • Typically took about 20 minutes to construct map.

8. Ads : Samsung

9. Ads: Sony – bouncing balls

10. Aggregation • Done in five steps • First Step: identify the core associations based on the constructs identified in elicitation stage. • For each of the respondents we coded the constructs and found the “strength of the association” and the “valence of the association”

11. Second Step • Identify the core associations directly linked to the brand • Frequency of the first order mention • Sub-ordinate connections • Super-ordinate connections

12. Third Step identify the linkages between core associations linked to the brand itself (from Step 2) and other core associations identified in step 1 but not connected to the brand itself Method: a matrix was created between the constructs this matrix was populated using markers to identify which individual respondent BCM the association came from.

13. Fourth and Fifth Step • In step 4 we identified non-core to core associations based on the inflection point in step 3 these would be denoted as dotted circles. In this analysis there were no such associations. • In step 5 we ascertain the number of connecting lines (denoting the strength of the association) for each of the association based on the average strength across all maps.

14. Brand consensus map for Sony Tech Superiority Product Styling Luxury Product Quality Picture/ Sound Quality Technical Features Sony NOT value For money Trustworthy Brand Product Reliability Social Factors Brand Value

15. Brand consensus map for Samsung Product Quality Brand Value Previous Brand Experience Product Reliability Picture Sound Quality Product Styling Samsung Value For money Luxury Technical Features Trustworthy Brand High On Features Service Quality

16. Target Segment - Samsung Samsung as a brand caters to people who may not be high on resources but look to Express themselves in new and novel ways, these are the makers. Express achievement through the products and services they consume, who are the strivers. These are the group of people who are trying to have the latest and the best, yet may not have the resources to do so.

17. Target Segment - Sony Sony as a brand caters to people who are willing to pay a premium to consume products and services that they desire. They are people who are motivated to achieve in life and to aspire for and get the best product there is. Sony, therefore targets Innovators and the Achievers.

18. Psychographics of respondents Not rigorously tested with inventory! Judicious mix of achievers, innovators, strivers and makers.

19. Crucial differences between Sony and Samsung Brand consensus maps • Sony has lesser number of associations, but some are very strong. • Samsung has larger number of associations, most are weak. • Quality and the trustworthiness of the brand are prominent for Sony, so is the association with luxury. • Value for money is the key distinguisher for Samsung.

20. Characteristics of memory associations : A consumer based brand equity perspective Large number of associations  interference  possibly lowered memory. Large number of shared associations  brand becomes associated with standard product features. Unique associations are important! Let us look at the shared map of Sony and Samsung.

21. Luxury Product Styling Tech Superiority Previous Brand Experience Technical Features Sony Picture Sound Quality Product Quality Samsung Value For money High On Features Product Reliability Social Factors Trustworthy Brand Service Quality Brand Value

22. Some strategic implication for Samsung Reduce the number of associations and strengthen the ones that you retain. In particular, the group feels that previous brand experiences and High on features could be emphasized. Use the perception of superior value for money in all the marketing mix elements decision Samsung makes as well as in the communication.

23. Associations of interest for Samsung High on features (unique for Samsung) Value for money (negatively associated with Sony and strongly with Samsung) Service Quality Good experience with the brand in the past (sample bias?)

24. Brand Associations: Positioning decision

25. Additional benefits from ZMET The ZMET method explores the unconscious mind of the customer by taking into account that images are and important and integral part of analysis. Potential Insights from ZMET: In case of Samsung a large majority of associations have valence of one. It is therefore unclear as to which core associations to focus on. We anticipate that in this study, ZMET would have helped us assign association strengths (valence) more effectively. Potential usage of ZMET for brand equity: Positioning: analyze and predict potential personal cognitive & affective responses to any brand- related information leading to better positioning strategy. Product: it helps understand personal value and meaning that consumers attach to the brand's product attributes

26. Recommendations • Reduce the number of associations for Samsung as the brand • Luxury (affects Samsung negatively as this is a strong Sony association) • Country of Origin (do not emphasize) • Increase the strength of the existing associations • Value for Money • High on features

27. Recommendations • Use the values obtained from laddering to identify and target appropriate psychographics segments. We feel that these segments are “Strivers” and “Makers” based on the values for Samsung’s association.

28. Recommendations • Use ZMET in conjunction with BCM to ascertain new constructs and the strengths of association more accurately; additionally ZMET can be used to analyze and predict cognitive and affective responses to brand information conveyed by ads. Thereby leading to better product and positioning.

29. Thank You