How holistic is your approach to making decisions on the most important marketing lever?
Getting the right pricing strategy is very critical for CPG companies - more so in the alcoholic beverages (AlcoBev) category in India, because AlcoBev is a highly regulated industry subject to high taxes coupled with restrictions on distribution and mass media communications. This renders it very price sensitive and highly competitive. At Diageo India, we have developed an integrated brand pricing framework that encompasses the following dimensions: (i) consumers' current sensitivity to brand price; (ii) behavioural equity measure (total $ value that is the sum of functional and emotional benefits provided to the consumer by the brand, over and above price); and (iii) drivers of equity. This holistic framework enables maneuvering pricing in the market for the short-term while getting the right balance between price and total brand value, as perceived by consumers in the longer run and also driving actionability in terms of building up equity.
Practically all types of industries have started as private business. But only a few have remained absolutely free. The usual case is that certain types of restriction and introduced by trade organisations, by local authorities, or more often, by the state. These restrictions take various forms: - Regulation, so that certain types of behaviour are deemed unlawful; - Control, so that you have to obtain permission to act in a specific way; - Authorisation, so that you have to obtain a permit to operate within a specific trade; - Socialisation, i.e. private business taken over by the state.
In addition to this survey on legal regulations for advertising, the marketing concept is relatively a new branch in Yugoslavia and therefore there are still not any special legal regulations neither for the advertising nor for other respective activities. But these are developed under the specific conditions of the Yugoslav system in which the companies are fully independent in their decision-making and develop the model of a self-governed economy, which seems to be of a growing interest in the West as well as in the East.