What's Paramount ?

I was reading a magazine on marketing a few days back and I came across an article on Paramount arlines. I have heard of this player in the airline industry and could even recognize its blue signature color, but what I didnt know was that it caters to only the premium segment. It only serves the business class and has no provision for economy class at all.

Well, this strategy may be the USP of the brand as none of its competitors has ever served just the business class. The USP of a brand helps attain the competitive advantage that is sustainable (Sustainable Competitive Advantage). Of course, this unique targeting of business consumers has given the airlines an edge, which is evident from the fact that the Paramount airlines has captured 27% market share in Southern Indian within a span of less than 3years. The airlines has ambitious plans to extend its services to north and north east India. Also, the airlines plans to go international after 2011, when it completes 5years of operation in the domestic market.

As such, Paramount has sucessfully been able to use its unique targeting strategy as its USP, but I guess the utility of this strategy is subjective than being objective. When the market was booming and economy was doing well, Paramount could have expected to extract the maximum out of its space or seat utility. But in times of recession, when the companies are into cost cutting, even the executives who are the target customers of Paramount airlines may travel in economy class.

Airlines sector is the one which is most badly hit by recession. The giants like Kingfisher and Air India have suffered huge losses. Kingfisher is trying to compensate for its losses through its low cost variant, Kingfisher Red and even Air India is seriously considering revision of its pricing policies.

As such, the unique targeting isn't a USP of Paramount airlines as USP helps you gain long term advantages, which hasn't been the case. USP isn't subject to subjectivity, rather it is objective which helps a brand to get out of adversities by differentiating from the competition.

When companies build brands, there are several criteria that must be kept in mind. The brand elements and associations must have six elements including memorability, meaningfulness, likability, tranferabilty, adaptability and protectability. The first three elements are offensive in nature and help in building brand equity while the latter three are defensive that help in maintaining brand equity.

I guess the offensive criteria for brand building are in place for Paramount which is evident from its growth figures, but I really suspect the defensive critera. The brand lacks the elements of tranferabilty and adaptability in the gross era of recession. I think Paramount airlines has missed on this Paramount part of a successful business strategy.

Let us just wait and watch and see how Paramount countinues to grow or move towards downfall.

What is that consumer buys?

Yesterday I was talking to one of my friends who was pretty disappointed by the ruthless behavior of one of her friends. I said to her not to worry about such people in life because the existence of these people in life is transient. Such people would come and go but the only person who would be with you is your own self. I may sound like a narcissist, but this the fact of life. Human beings love themselves the most, more than their most valuable possessions.

Lets apply the principle of self love in consumer marketing. What do you think a customer buys every time he purchase your offerings? If you say that a customer buys your product or service, then you need to get into the depth of the consumer psyche. Superficially it seems that they buy your offerings but actually, they buy the benefits you offer to them.

Consumers generally ask a question to the marketers "Whats in it for me?" If you are able to answer this through your offerings, you are successful in meeting the objective of your business. Here lies the concept of augmented product. Your offering is termed as the core product and the benefits offered by the product make the augmented product. Marketers generally get caught with just the core product, which is referred to as marketing myopia.

Anyways, enough of fundas, the crux of the post lies in the fact that customers don't care what your product is. They care only about the benefits it offer and that is what can be used to as a Point of Difference (POD) to attain Sustainable Competitive Advantage (SCA).

Ponder for a While...

Marketers know how to tap in each and every emotion of consumers. One such powerful emotion is that of parents' inability to say no kids' wishes which marketers refer to as pester power. 

Parents are well aware of harmful effects of burgers loaded with  fats or chocolates loaded with calories, but still they fall helpless before young kids. They finally give them whatever they want. Marketers do understand the force of kids in buying certain products and they have well capitalized on it. All they did is allured these young kids and thereby used pester power to sell their products.

Let me come to the crux of this post. I was thinking of a strategy to reposition Rasna which has almost enervated in terms of its image and also sales. You must be thinking why Rasna. Actually Rasna came to my college a few days back for placements. The profile was that of sales. Sales can be enhanced by sales promotion, otherwise there is no differentiation in the product. Kids do not want it anymore. So I was just thinking what can be done to enhance sales.

Well, here the primary target are kids and secondary target are mothers. The product is meant for kids and as such they are the primary target. Mothers are the buyers of the product but may not be consumers of it, hence they are the secondary target.

Now how do you think pester power would work for Rasna? The major point is there is no Point Of Difference (POD) for the product. As such, product must be differentiated to lure kids and then use pester power.

Can you suggest some ways to differentiate the product to gain Sustainable Competitive Advantage (SCA)? Your comments are awaited and would be much appreciated.