CB Assignment-2

S. Subadesh Kanna(PGP 02 109)

Q2. Discuss implications of figure and ground with the help of a print Ad

Marketers often use this principle of peripheral vision and central vision, which is directly related to the figure and ground concept. Blurring of figure and ground is sometimes done on purpose. The well known Absolut Vodka campaign started 25 years ago, often runs print ads in which the figure (the shape bottle) is poorly delineated against its ground challenging readers to search for the bottle, the resulting audience participation produces more intense scrutiny. As you can see in this Print ad, the figure (people in the form of Absolut Vodka bottle) and ground (the Potemkin steps) are merged together to form this picture

Q1. Describe how marketers can apply their knowledge of differential threshold in packaging, pricing and promotional decisions of chocolate bars and detergents DIFFERENTIAL THRESHOLD It is the smallest detectable difference between a starting and secondary level of a particular sensory stimulus. Webers law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. Manufacturers and marketers endeavor to determine the relevant j.n.d for their products for two very different reasons: Negative changes (e.g. reductions in product size or quality, or increase in product price) are not discernible to the public (i.e. remain below j.n.d.)

Product improvements (e.g. improved or updated packaging, larger size or lower price) are very apparent to consumers without being wastefully extravagant (i.e. they are at or just above the j.n.d)

Chocolates Cadburys Perk, which is a wafer based chocolate was priced equally as Nestles Bar-One (caramel based). After its initial popularity, when people felt Bar-one was more value for money due to its caramel inside, Perk had to improve on the pricing/product/packaging front. Hence, the product was lengthened and 20% extra was shown visibly in the pack cover. This was well above the JND of such a product. Also, the breadth was reduced marginally to make sure the products increased length was well above consumers JND. This led the people to believe Perk has more value for money. Q3. Identify a recent brand extension and discuss how selection, organization and interpretation processes influence effectiveness of brand extension. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity. While there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand image. Park Avenue: Soaps, Shaving cream, Talcum powder, Gels, Belts, Shoes SELECTION & ORGANIZATION: The new category into which a brand extends should be in line with the nature of the parent brand and sometimes even the expertise it represents. Accessories: While extending into accessories, Park Avenue leveraged its expertise in clothing and the association that consumers make with looking good in a corporate/formal environment. Thus we believe that this is a natural extension for the brand to give consumers the full range of formal dressing-right from clothes to belts and shoes. Mens Toiletries: Mens toiletries are an extended part of a mans looks. We believe that there are products in this category which fit in line with the brand Park Avenue. By doing this, they have made an attempt to evolve into a brand that not only cares about your clothing, but rather a brand that stands for complete male grooming. Thus in this category the company is not leveraging its expertise (clothing) but rather is leveraging its image as a classy male grooming brand. INTERPRETATION: A successful brand extension has to ensure that there is consistency in the value perception of the brand in the new category as compared to in the original category.

Accessories: The accessories that Park Avenue sells are premium and elegant due to which they fit in with the values that the brand stands for. The description that we got for their accessories on their website was as follows: Shoes: Crafted from fine European leather and finished with a lustrous shine. Ties: Complete your ensemble with the perfect tie from Park Avenue. These exquisite woven and printed ties come in various designs. These silk ties give a new meaning to the term power dressing. From these descriptions, it is clear that Park Avenue continues to maintain the premium, classy, new age, youthful image that it has built in clothing. Mens Toiletries: The deodorants and perfumes that they sell have a label which reads as followsGenuine French Eau De Parfum with information on the pulse points which act as mini fragrance pumps. The French fragrance again adds uniqueness to the perfume which is in line with the brand values. The logic behind entering perfumes and deodorants was that research showed that there was no major perfume brand in the mens market. Also most international brands were too mild for Indian conditions.