Archive for May, 2009

When consumer go for Brand?

May 22, 2009
Kirit Jasani

Kirit Jasani

 Hi everyone,

Recently i have notice a lot of discussion on and around “when consumer go for a brand instead of commodity”. This hot question inspired me to write down my own view on the subject.

Well there is only one essential thing which forces consumer to go for a brand and not commodity. If you can recall, in recent past Salt was sold equal to the weight of waste of plastics and aluminium or for a minimu price of Rs.2 or so. But today salt is category of FMCG which is doing turnover in thousand crores. We can see major Indian corporate house are having thier presence in field with thier own brand such as ITC, TATA, NIRMA etc. Today people are buying salt for as high price as Rs.9 per kg! and still consumers are happy to buy.

So what is that one thing which changes consumers decision from comodity to Brand?

It’s ‘Perceived Risk’

When consumer had seen perceived risk of Thyroid, they started buying branded salt which contains good amount of iodine. By shifting from commodity to brand consumer had eliminated a risk of iodine deficiency.

Till the time consumer dont see a perceived risk in any product or service he will not go for brand and that is the reason today we are using mineral water which eleminates perceived risk of deficiency of mineral in body!

The day is not too far when someone will point out a perceived risk in buying loose sugar and everyonen of us will start buying a branded sugar!

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