How to Convert a

Commodity into Brand

Assignment-01
of
Marketing Management-I
Let us suppose a Commodity
named ‘XYZ Mobile’ and we
have to relaunch and
establish it in the market as a
Brand.

So before proceeding further, we

must know something about
commodity and brand.
 What is
Commodity?
Commodities are usually bought and sold
based on price.
 What is Brand?
A distinguishing symbol, mark, logo, name,
word, sentence, or a combination of these
items that companies use to distinguish
their product from others in the market.
Now the question arises that;

Why do you need to define

your brand?
• to ensure that you have a fresh product in
competitive proposition .
• to ensure that your brand works strongly at
an emotional as well as at a rational
level
• to ensure that your brand can deliver
consistent and better performance.
•In more detail.....

•Brands need to provide customers with a

consistent, compelling experience in order

not to confuse them, as confusion leads to
doubt.
Key Action Points
Your brand should be defined according to the
•

following dimensions:
• Its central organising thought – The
organisation ‘XYZ’ is manufacturing mobile
for each and every class of people.
• Its slogan – Use my product for once & you’ll
suggest even others forever.
• Its personality – It is of light weight and
obviously a latest gadget.
Key Action Points
(Cont.)
• Its values – It can be used for everything as per
your requirement from a mobile.
• Its appearance – Ultimate and single in its
segment.
• Its emotional benefits – It is what you’ll fill after
experience.
• Its hard benefits – Again the ultimate one in its
price and features.
Central organising
thought
•Slogan:- Slogan Identify the Brand
•The personality of the brand

•To whom you have to sell your brand, which type

of personality he is having? We must consider

these things before defining the brand.
• 

•The values of the brand

•What does the brand stand for? What does it

believe in? What would it make a stand on?

•

•
•Appearance
•What does the brand like? What does it look like?

What does it wear? How does it speak?

•Emotional benefits

•What does the brand do for its customers

emotionally?
•These can usually be classified into:

• Avoids pain
• Reduces pain
• Gives pleasure
•
What is Commodity
Branding?
•Today what rules? A single word “BRAND". Brand
not only is a differentiator but also a value
creator for a product. It creates a space in the
minds of the customer which has been blocked &
clogged with various desires, wants and means.
Brand has been like a light-house in the ocean of
in-differentiable products giving rays of assurance
of quality, dependability and value. It also acts as
a direction provider for the customers to choose
the right path in obtaining value for money.
•
Today's world is moving towards lesser and lesser
•

differentiation in the products due to

technological developments. This development
has reduced the competitive advantage of
various companies who earlier had a concept of
power brands. Day by day we are moving
towards a world which is in-differentiable product
rules with the only parameter of differentiation -
price.
•

We have been living in a world dominated by

•

brands like Nokia, Samsung, Apple, Motorola,

HTC, etc.
Corporate Strategy
•A fundamental responsibility of corporate
management in a commodity product business is
to continuously position the enterprise to exploit
the changing market environment. Management
must monitor and asses the dynamics of the
market place.
•Following are the various analyses that we need

to do to arrive at a better competitive strategy:-

•
•Customer Analysis:
•To establish a strategic edge over its competition must define

the broad market it intends to serve, segment the market and

identify the specific segments it intends to concentrate upon.
The customer analyses are essential for the complete
competitive strategy development and it includes Defining the
market place, Market Segmentation.
•

•Competitive Analysis:
•The competitive analysis begins with an examination of the

structure of the industry. This structural overview provides

insight into the attractiveness of an industry and the
competitive rivalry.
•

•Internal Analysis:
•A critical assessment of a company's strengths and weakness

can be a painful process for management. It forces managers

to identify things as they are in terms of Performance analysis.
•

•Environmental Analysis:
•Environmental analysis is concerned with identifying trends,

opportunities, threats and limitations that will affect and

influence a firm's strategic position.
 The decision making
process:

•Decision making process by the consumers

•Pricing strategy:
•A price strategy can be either demand, cost, or

competitive in orientation. In demand-oriented

pricing, the retailer sets prices based on
consumer desires. The top of this range is called
the demand ceiling; the maximum consumer will
pay for a product.
•Cost oriented pricing sets a price floor, the
minimum price acceptable to a retailer so that he
can obtain a specified profit goal.
•With Competitive oriented pricing, the retailer
sets prices in accordance with competitors.
•
•Brand Identity
•The identity is a brand's unique fingerprint that makes it

one of a kind. Brand identity lives entirely in the minds of

the consumers. An identity is not what the marketers
create but what the consumers perceive has been created.
•The two most crucial variables that dictate a brand's
identity in commodity product market are: -
•How a brand is “positioned” within the minds of the
consumers and prospects, and
•What kind of living personality the brand projects into the

market place.
•Let us try and discuss the above stated crucial variable like

"Brand positioning", brand positioning is the strategic

genesis of the marketing mix. The strategic personality is
the set of external qualities of each brand, its public face,
which is a direct extension of its positioning.
•
Thank You