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MARKETING
Could Discontinuity Be Your Next USP?You've always done it this way. All your competitors do exactly the same
thing. And your customer has drop a discontinuity that discounts all these. And frees
trapped value. A rule-breaker's guide.
By Nanda
Majumdar
- Suddenly, India's pioneer compact-detergent brand, Procter
& Gamble's Ariel, dispenses with the classic end-user-the female home-maker-in its
advertising, and depicts a man, using the vernacular in English dailies.
- Suddenly, PepsiCo India stops positioning its mango drink,
Slice, as a beverage that competes with other soft drinks, and changes its
value-proposition to turn it into a snack-albeit liquid.
- Suddenly, Consolidated Coffee takes its upmarket,
strictly-urban coffee brand, Tata Kaapi, into the hinterland, trying to convert rural
tea-drinkers and using a sachet packaging as its entry vehicle.
"Where a
discontinuity is involved, asking the consumer for preferences does not always work."
R. Bakshi
CEO, Cadbury India |
Suddenly, companies are prising open established
paradigms and introducing discontinuities into them. Suddenly, brands are breaking away
from the very expectations that they have assiduously built up over the years. Suddenly,
marketing strategists are reworking the product-propositions, introducing new value, new
genres of benefits, new usage-occasions-in short, demolishing the entire context of
consumption in which the brand operated, and creating a new one.
As Thomas Puliyel, 43, Managing Director, Research
International, puts it: ''A discontinuity questions the consumer's ingrained beliefs and
attitudes towards a category or a brand.'' That's the objective with which Oriflame and
Avon stole into a market fettered by traditional over-the-counter retailing systems, and
introduced the customer to a new way of buying cosmetics. Not having imagined before that
she could purchase global quality cosmetics right at home, the user began to attach value
to the convenience of purchase, tilting the scales away from brands to buy which she had
to travel to the store.
It was for this reason-introducing a new dimension of value,
instead of merely claiming to outperform competing brands on the traditional
parameters-that Hindustan Lever Ltd (HLL) introduced, with Surf Ultra, the
hitherto-unknown concept of a detergent that removes stains. Once again, customers found
their assumptions about what a product category-in this case, detergents-can do for them
being shattered by a new brand.
What these companies did was to effect a discontinuity that
moved either the customer, or the brand, or both, out of the existing paradigm.
Questioning ingrained beliefs-those of the company as well as of the customer-they
reconfigured the brand's identity, thus releasing enormous hidden value. This extreme form
of differentiation is not about rewriting the rules of the game; it's about changing the
game itself.
What Is A Discontinuity? How Do You Define
It?
"A discontinuity
can stem from addressing a different audience, or conveying through a different
channel."
L. Bawa
Vice-President,
Marketing, Oriflame |
A discontinuity concerns the revolutionary-not the
mundane: it is the big idea that rebuilds the brand, the new technology that enables the
company to deliver an all-new product-offering, and the unusual marketing mix that
sharpens market-penetration. Explains M.S. Banga, 45, Senior Vice-President (Strategy),
Unilever PLC: ''A discontinuity is anything that shifts the current paradigm of
business-essentially, an orchestration of products, marketing-mixes, and delivery
mechanisms. When any of these is changed substantially, a discontinuity occurs.''
Only, it does not happen everytime a marketer tinkers around
with any of these elements. At the core of a discontinuity must lie unmatched insights
into the customer's needs. Agrees Asit Mehra, 38, Director (Strategic Planning), Ammirati
Puris Lintas: ''From the consumer's perspective, the revolutionary discontinuity is where
she gets a benefit that she wanted, but wasn't getting.'' In effect, the concept of
discontinuities is closely allied to the Boston Consulting Group's theory of breaking
compromises.
Write the firm's George Stalk Jr., David Pecaut, and Benjamin
Burnett in a monograph on the subject: ''A compromise happens when an industry imposes its
own operating constraints on the customer...By focusing on compromises, a company can
continuously uncover fresh opportunities and, thus, sustain growth over time.'' Growing by
breaking compromises restricts companies to overcoming operational and regulatory
constraints to offer customers products and services that they always wanted; leveraging
discontinuities for growth requires companies to cater to customer needs that are often
latent.
Catering to unexpressed needs, though, is just a bit more
difficult than catering to expressed ones. Seconds Harish Manwani, 46, Director (Personal
Products), HLL: ''Any change that satisfies the consumer is good, but evolutionary. But a
revolutionary that delights the consumer is a breakthrough. Conveying a superior
brand-benefit through a current brand or a new proposition is a discontinuity.'' But doing
this isn't easy.
Why do you Need A Discontinuity? And When?
"For the customer,
a revolution is where she gets a benefit without changing her habits."
A. Mehra
Director (Strategic
Planning) APL |
The allure of the discontinuity is strongest for the
marketer trying to break into an already-crowded product-category. Akai, for instance,
needed to orchestrate an entry that would help it hog mindshare and create a positioning
it could call its own. The discontinuity it used: get the customer to view buying a new TV
as a deal, not a purchase. It worked.
Another TV brand, Onida, used a discontinuity to extricate
itself from a trap of its own making: an advertising property that had, through the
repeated use of the Devil, become the brand's core property. Ad agency Ogilvy & Mather
(O&M), which inherited the languishing brand in 1998, revisited its core identity
using a proprietary brand audit system.
The finding? The use of the Devil to highlight Onida's
premium positioning lacked conviction in a market whose contours had been redefined by
transnationals. Details Sumanto Chattopadhyay, 32, Associate Creative Director, O&M:
''The Devil was increasingly becoming an irritant for most consumers; they would switch
off when they saw the Devil, refusing to absorb any further communication about the
product.'' The recommended solution: bury the Devil.
Onida's discontinuous advertising strategy appears to be
working: the brand had increased its marketshare from 10 per cent at the beginning of 1998
to 12 per cent at the end of the year. But the new-look advertising was just part of a
larger strategy. Mirc Electronics (the company that owns the Onida brand) revamped the
brand's advertising only after it was ready to launch 4 new models. Thus, while
advertising created a discontinuity and revived customer interest, the new range gave
customers enough reason to buy the brand.
But a discontinuity isn't just a technique to position or
reposition a brand. It may well be the vehicle that can provide the brand a way out of a
strategic cul-de-sac. After years spent in the belief that a breakfast cereal is a
breakfast cereal is a breakfast cereal, Kellogg India altered the paradigm with a
discontinuity. A breakfast cereal, the company told the consumer, could now be a biscuit.
The obvious benefit? Volumes, as children prefer biscuits to
breakfast cereals. The not-so-obvious benefit? The company now had a strong enough basis
to claim the breakfast nutrition platform as its own. Says Denis Avronsart, 48, former
Managing Director, Kellogg India: ''By transplanting Kellogg's values of nutrition and
taste into a popular delivery form, we can latch on to a much larger customer base.''
Agrees Kamini Banga, 44, Managing Director, Dimensions
Qualitative Research & Strategic Consultants: ''A brand should be wedded to a set of
transferable benefits or values-not to a product form.'' The caveat: the discontinuity
needs to leave the brand's core values intact, but can reconfigure almost every other
element of the marketing mix.
Discontinuities are easily recognised; but not quite as
easily created. And the typical customer may not really be able to help. Points out Rajeev
Bakshi, 44, CEO, Cadbury India: ''Where a discontinuity is involved, asking the customer
for preferences does not always work. A typical customer will play back her existing sets
of beliefs.''
Monodonic research can play a role in helping a company
identify a discontinuity. Traditional research requires companies to offer consumers
paired options. Monodonic research just tests the absolute for negatives. The marketer
identifies an attribute or a set of attributes which can, by offering an all-new benefit,
create a discontinuity. In the next step, the consumer is asked whether she likes these
attributes. Or not. The tenet: decide what's good for the customer, but just check with
her once.
How Do You Manage A Discontinuity?
Once a company has identified a discontinuity, it needs to
identify a vehicle for it. This could be an existing brand, an extension, or a new brand.
Marico Industries' Parachute Hair Oil first responded to the threat of contemporary
offerings, like Dabur's Vatika and HLL's Clinic Plus, through extensions like Parachute
Amla and Parachute Herbal. Both flopped; in the mind of the consumer, Parachute stood for
coconut oil, nothing more.
To overcome this problem, the company decided to use the
mother-brand as the vehicle for discontinuity. An advertising campaign tried to ally the
brand with the benefits of coconut; a design initiative bestowed the brand with a
contemporary logo; and subsequent extensions like Parachute Lite and Parachute Nutrisheen
reinforced the discontinuity. The brand had successfully dissociated itself from the
oil-tag without hurting its core property: the goodness of coconut.
But all discontinuities need not begin with the mother brand.
When Cadbury India wished to widen the market-canvas for its mainstay, Cadbury's Dairy
Milk (CDM), it sought to do so through a discontinuity which used a brand-extension as its
vehicle. The result was Cadbury's Gold, a chocolate whose premium perch was reinforced by
a quirky advertising campaign (and supported by the Rs 15 price-tag as opposed to Rs 10
for CDM) that featured a female voyeur.
In both cases, the companies had clear objectives. Marico's
objective was to fight competition through contemporary offerings; Cadbury's was to
increase marketshare by using a brand-extension. Advocates Rajesh Jejurikar, 34, General
Manager (Marketing,) Marico Industries: ''A discontinuity must be guided by clear
objectives. Only these can provide a roadmap for execution.'' And, whatever the
objectives, they require the brand to strike a different relationship with the customer.
This could take the form of product attributes, delivery
systems, or even sales and distribution mechanisms. Explains Lajinder Bawa, 37,
Vice-President (Marketing), Oriflame: ''A discontinuity can stem from addressing a
different target audience, or by just conveying your proposition through a different
channel.'' In the traditional business model for cosmetics, advertising generates the
interest and desire and in consumers, who find the product in retail outlets. Oriflame
followed the first step of this process, and advertised. But the company, then, engendered
a discontinuity by using multi-level-marketing to target individual consumers.
To work, a discontinuity needs to be supported by product
cues. Traditional detergent powders do not remove stains. HLL tried to build a
discontinuity around this by creating the famous Dhoondte Reh Jaoge ad for a
brand-extension, Surf Ultra, but the company was not able to back the claim with any
product cues. So, when it launched Surf Excel, HLL backed the communication with palpable
product add-ons, like the perfume and the tub-packaging.
What Are The Limitations Of Discontinuities?
Granted, for every brand that has successfully leveraged a
discontinuity, there is one that has failed to do so. Warns Ammirati Puris Lintas' Mehra:
''At the core of a discontinuity lies continuity. The marketer needs to give the consumer
a distinctly superior product, as well as a distinct benefit-without forcing her to change
her habits.'' Thus, when marketers in the US launched shower gels-a discontinuity that was
based on a delivery system-they didn't take off. Only when the marketers offered
lufers-sponge-scrubs-along with the gel did the consumers evince any interest.
Nor does every discontinuity deliver. After all, the change
it offers may hold no value at all for the customer. Arvind Mills, for example, had
launched Ruf-And-Tuf Ready-To-Stitch (RTS) jeans-kits which were targeted at rural
consumers-introducing an all-new way to look at a product which was, in its very essence,
an off-the-shelf, high-cost apparel.
The ploy ran into heavy weather on 2 counts. One, the RTS
jeans failed to sport the same look as the readymade jeans that the urban youth sported.
Two, a slew of low-cost imitators entered the market. But, instead of destroying the
brand's equity, Arvind Mills ported the core values of low cost and rural reach into a
readymade version. And because the brand had planted those propositions in its earlier
avatar, it is thriving today.
Admittedly, today's discontinuity may become tomorrow's de
facto standard. Once customers have become used to the post-discontinuity proposition of
the brand, even as competitors jump in to imitate the trailblazing leader's improvisation,
the first one in will have to ensure that the gap isn't closed. Warns V. Ravi, 38,
Executive Director, Indica Research: ''The real issue is sustaining the advantage
created.'' That may mean stepping onto a treadmill of bringing about continuous change.
And, yet, brands that want to stay ahead of the others may
have no choice but to do so. The time when a brand could draw its strength from the sheer
immutability of its value-proposition may be gone. For, their world is changing so rapidly
that customers are being forced to change their demands of the products that they consume
equally rapidly. That's why, spotting the opportunity for introducing a discontinuity-and
then taking the lead in creating it-may well be the only road to longevity for a brand in
the future.
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