Strategy for Durables

In the category of durables, a different approach may be required to make use of the basic CDM model. Information search stage (for categories with which consumers are familiar) is an important stage, especially for those which provide value or which provide new features. LG and Samsung in televisions (and LG in refrigerators) used the print media extensively to highlight the new features offered in their brands. This is one of the reasons for their ‘above- average’ performance in these categories.

The information search stage is also important for certain categories such as microwave ovens and electric cookers for which the needs may have been created by the brands over the last decade (niche markets). This stage provides the consumers with specific benefits and ‘pulls’ them towards the ‘purchase’ stage. It may be a good idea for a brand of microwave oven or electric cooker to make use of the ‘information search stage’ in conjunction with the ‘purchase’ stage. The ‘purchase’ stage occurs when consumers are ‘pulled’ to retail outlets through the information provided by the brand. Demonstration is vital at the ‘purchase’ stage as this provides heightened motivation for purchase. (Some consumers may also be impressed by the brand and may tuck it away in their minds for later reference.)

It is to be emphasized at this stage that for any ‘new-concept’ product to succeed (especially durables), good word-of- mouth publicity is required at the post-purchase stage. A satisfied consumer of a brand of microwave oven would be an opinion leader among prospective target segments. This kind of opinion leadership has a tremendous amount of credibility associated with it. Another important aspect with regard to ‘new to market’ durables is the after-sales service at the post- purchase stage. A company would do well to allocate an exclusive team to look into/follow up with consumers who are about ‘six-months-old’ with regard to the product (the team should make frequent visits/phone calls to these consumers until they are familiar with regard to the usage, features and benefits and a period of six months is recommended as ‘usage warm-up’ time). This would be an investment for a brand though it could lead to higher overheads in the short run. A fully satisfied buyer (within the ‘usage warm-up’ period) is likely to become an advocate of the brand.

Akai’s approach – Providing value at the information search stage could also take the shape of a high visibility campaign for conventional durables such as TVs and refrigerators. Akai had phenomenal success (though the period of success was limited due to a variety of reasons) in the colour television category when the brand entered the Indian context. The ‘value’ was the exchange scheme provided by the brand taking into consideration the scope and potential for second-hand TVs. There was huge potential for such TVs in the semi-urban markets and urbanites had the need to replace their sets. Akai successfully used the ‘need’ aspect of these segments along with a high visibility campaign to capture a sizable chunk of the market during a short time. It should also be noted that the brand came out with campaigns that reassured consumers about the quality of components used in the brand and this ensured there was no post-purchase dissonance after purchase. CDM models offer several alternatives that marketers could explore.

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Which Stage to Target?
The Role of The Brand

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