Showing posts from August, 2012

Why is the Transition from Product to Experience Brand Difficult?

Commodities > Products > Brands > Experiences
From a marketing standpoint there has been an evolution of sorts. As customers’ expectations move up, so do the expectation of benefits. To elucidate this further, it would best be explained by a product close to my heart - Coffee. First we had raw green coffee beans which were traded across the world ( and it still is) - a commodity. As the expectation of the customers grew then we had varietals like different types of roasts, monsooned coffee, instant coffee and so on - products. This entered the next phase when the expectations of customers increased along with aspirations. This led to brands for example - Nescafe. In effect these were product specific brands. However as tastes and the expectations evolved further, customers wanted more and hence did not look at just the brand but the whole ceremony around it - Starbucks is an apt example and closer home Cafe Coffee Day.
(While the transition in expectations has happened, it does…