LCD TVs – A BCM based LCD TVs – A BCM based studystudy

Pradipto Kolay- 2006044Aditya Trivedi-2007002Himanshu Sahani – 2007023Rajesh Goli - 2007044

Why LCD TVWhy LCD TVLCD 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.

LCD TV landscape in IndiaLCD TV landscape in IndiaSony 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

ObjectivesObjectivesTo study the brand consensus

maps of two brands – one leader, one follower.

To recommend to the follower brand strategies based on the study.

LadderingLadderingInterviewed 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

ConstructsConstructs

MappingMappingRespondents 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.

Ads : SamsungAds : Samsung

Ads: Sony – bouncing ballsAds: Sony – bouncing balls

AggregationAggregationDone 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”

Second StepSecond StepIdentify the core associations directly

linked to the brand◦ Frequency of the first order mention ◦ Sub-ordinate connections◦ Super-ordinate connections

Third StepThird Stepidentify 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.

Fourth and Fifth StepFourth and Fifth StepIn 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.

Brand consensus map for Brand consensus map for SonySony

Sony

ProductQuality

BrandValue

TechSuperiority

NOT valueFor money

Picture/SoundQuality Technical

Features

SocialFactors

TrustworthyBrand

LuxuryProductStyling

ProductReliability

Brand consensus map for Brand consensus map for SamsungSamsung

Samsung

ProductQuality

BrandValue

PreviousBrand

Experience

ValueFor money

PictureSound

Quality

TechnicalFeatures High

OnFeatures

ServiceQuality

Luxury

ProductStyling

ProductReliability

TrustworthyBrand

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.

Target Segment - SonyoSony 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.

Psychographics of respondentsNot rigorously tested with

inventory! Judicious mix of achievers,

innovators, strivers and makers.

Crucial differences between Crucial differences between Sony and Samsung Brand Sony and Samsung Brand consensus mapsconsensus mapsSony 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.

Characteristics of memory Characteristics of memory associations : A consumer based associations : A consumer based brand equity perspective 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.

Sony

BrandValue

TechSuperiority

TechnicalFeatures

SocialFactors Trustworthy

Brand

Luxury

ProductStyling

ProductReliability

Samsung

ProductQuality

PreviousBrand

Experience

ValueFor money

PictureSound

Quality

HighOn

FeaturesServiceQuality

Some strategic implication for SamsungReduce 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.

Associations of interest for SamsungHigh on features (unique for

Samsung)Value for money (negatively

associated with Sony and strongly with Samsung)

Service QualityGood experience with the brand

in the past (sample bias?)

Brand Associations: Positioning decision

Additional benefits from Additional benefits from ZMETZMETThe 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

RecommendationsRecommendations 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

RecommendationsRecommendations 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.

RecommendationsRecommendations 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.

Thank YouThank You