New brands in no mans land

NEW BRAND HICK-Ups (LED TV Brands) in Consumer Electronics by Haranath.K

In this article, whatever findings, analysis I have mentioned are summarised out from my own industry experience and contacts. ? This article is for information purpose only which can help the new comers to improve their understanding about Consumer Electronics Industry. Foreword

In through out my career I have worked in various assignments with different brands. ? But one question always remained a mystery why new brands struggle measurably in market and meet their unlikely fate at the end. ? As per the observation done at various retail stores, channel partners and feedback from numerous professional from industry, I have tried to find out answer for this.

? Lets try to see the situation from different view point of trade about a new brand. Hick-Ups...........

1. New Brands will manoeuvre the strategy as per the manpower comfort. ? They prefer to hire experienced manpower to gain access to big counters based on the rapport of manpower because they believe less in their product strength. ? They get entry at the cost of their Brand future. ? Especially most of the new brands do this mistake at the initial phase of launch of their brand in market because they lack the inputs of realistic market research. Hick-Ups...........
2.  First they intend to seek product from big OEMs to have reasonable quality assurance. ? But they compromise on the vital aspects of the products which are important to differentiate the product from competition. ? And they test their product in lab conditions not on the shop floor conditions. ? And resort to technical team to get the feedback about the product but they miss the main individual who sells their product on shop floor after it gets launched. Hick-Ups...........
3. They always remain in the notion that trade will always look for new cheaper product to sell fast to make primary volumes faster. ? They always fear about the competition that if they try to launch product at higher price for providing quality product with better features, may not be accepted by trade. ? Because Trade will compare with top brands and start negative selling of this new product. Hick-Ups...........
4. Before they finalise the product they finalise the selling price to trade, for example if I want to sell this product at this price what should be my expenses and landing price. ? All the above mentioned views pointing out to only stance i.e., they want to launch a product but not a Brand. ? Knowing or unknowingly their entire efforts were concentrated to live short, thinking it is big but they lack long term vision to grow big. Hick-Ups...........
5. Few brands will come like an advertisement in our daily soaps, some new companies get few containers on LC from China and try to sell at lower price to make quick bucks and wants to rotate cash to payoff dues to bank. ? They try to catch big retail chains to sell off entire stock to make quick returns even though at thin margin. ? Even retailer chains need cheap products to use them like crowd pullers to attract more walk-ins. Hick-Ups...........
6. These cheap brands will create temporary volatile situation in market and few brands will react to this and try to follow the same route to climb market share ladder. ? In this game of Snakes and Ladder, new brands wants to climb this brand share ladder very fast and ignore the presence of snakes. ? When you don’t have healthy respect towards your brand why the market will give respect. Hick-Ups...........
7. Every time when new Brand meets failure it results in following...... ? Unpaid Dues ? Unsold Stocks ? Unresolved Claims ? Serious Service issues ? Poor Quality ? Poor BTL Activities ? Poor Selection of Channels to sell products ? Promising monopoly to single distributor/Retailer in market for short term volumes. ? Every Department will blame each other i.e., Sales/Marketing/Finance/Service etc with out analysing actual reasons. Hick-Ups...........
8. EVOLUTION.............
9. New start-ups who are intend to join this Consumer Electronics Industry should get evolve from their mundane understanding about the market. ? They should come out with a brand which promises to live long and also provide secured margins to trade to get well accepted. ? Consistency of the brand availability is the main concern nowadays. ? I have derived few main aspects which normally any sales person will try to find/ relate when he wants to sell any new LED TV brand. ? When your sales man is confident about the product our half battle is won. Need To Evolve
10. The Main aspects which normally most of the promoters will perceive when they want to sell new LED TV product to consumer. ? Physical Aesthetics ? Picture Quality ? Touch and Feel of the Remote ? Shortcut functions on Remote menu ? User Friendly Menu screens ? Presentation of Menu Screens ? Clear Volume at higher decibels ? After Sales Service (TAT) Need To EvolveTHANK YOU