Cave & Save Brands
Rave & Wave Brands
BY JAGDEEP KAPOOR
In today’s India there are 2 categories of brands. One which I call CAVE & SAVE BRANDS and the second category which I call RAVE & WAVE BRANDS. Indian consumers today behave differently and brand marketeers pave the way towards CAVE & SAVE BRANDS before they can graduate consumers to aspirational RAVE & WAVE BRANDS.
What do I mean by CAVE & SAVE BRANDS ? These are brands which are very basic and functional, figuratively having a similarity to the consumer who like a cave man would just look at the sheer utility of a product of service without an augmentation. The cave brand is a brand which meets the most primary needs and consumers do not expect more than that. A bed and breakfast hotel would fall in that category like an inn in the olden times. Similarly a simple meal served and churned out at great frequency for a mass set of consumers would also fall in the Cave category. Basic transportation whether though air, sea or land from one place to another could also be a CAVE category.
To my mind the Save category would be brands which are discounted, offer freebies, constantly keep reducing prices and keep offering savings to consumers, whether on a temporary or a permanent basis, would all fall in the same category.
I am calling this overall category as the CAVE & SAVE BRANDS, which caters to the basic needs and has offerings which meet the basic requirements and provide an incentive to the consumers to get a lower price tag.
This CAVE & SAVE BRANDS category is emerging and growing in India. I would be looking at and analyzing the reasons for the growth of the CAVE & SAVE BRANDS in the recent times. But before that let us look at the other categories of the brands which are at the premium end which I call the RAVE & WAVE BRANDS which basically are upscale, expensive and have consumers raving about them as well as are riding a wave of trends and fashion fueling the aspirational desires of consumers and moving them up to the next rung of the ladder.
The CAVE & SAVE BRANDS have their own market and so do the RAVE & WAVE BRANDS. The customer segmentation is distinct and fortunately for India there is a large enough market for both segments. While one side a Deccan Air gets launches in the RAVE & WAVE BRANDS category on the other hand a Louis Vuitton gets launched in the RAVE & WAVE BRANDS category. Both categories co-exist in this wonderful country called India.
Now let me analyse as to why the CAVE & SAVE BRANDS are being launched and are growing. Also, why many companies having RAVE & WAVE BRANDS are also now participating in the CAVE & SAVE BRANDS category with new brands. For example, the Taj Group which is under the RAVE & WAVE BRANDS category is now also launching another brand in the CAVE & SAVE BRANDS categories called Indione.
It is sensible for companies to participate in both the CAVE & SAVE BRANDS category and the RAVE & WAVE BRANDS category but with distinct brands.
What is the reason that the CAVE & SAVE BRANDS categories are growing so fast? According to me, there are five reasons, while the CAVE & SAVE BRANDS category have more brands being launched, I would like to put five reasons for the growth of this category.
1. Evolution - As the market evolves the penetration of various products and services increases. People, who use to walk to work, want to now move towards taking a bicycle. People with bicycles want to have two-wheelers. People with two wheelers want to avoid being grounded and want to fly. Maruti the market leader in Cars target people with two-wheelers and those traveling in public transport. This helps CAVE & SAVE BRANDS to find a fertile ground to grow.
2. Solution – Every consumer has needs, which need to be met and fulfilled. Consumers are looking for a solution. In my opinion, they do not sacrifice the good for the idle. They are happy with the needs being met and a solution being provided. This too gives an opportunity for CAVE & SAVE BRANDS to be launched.
3. Dilution – There has been a dilution in the purchasing power of the Indian consumer over the years because the real value of money has gone down due to inflation. This has opened the market for consumers to look at CAVE & SAVE BRANDS.
4. Pollution – There is a huge noise pollution and clutter of brands and advertising. Brands can either pull consumers through image or value. The value conscious consumers are able to hear and listen to the CAVE & SAVE BRANDS offerings over the din of noise pollution.
5. Revolution – There are many upper class and SEC A1 and A2 consumers who occasionally use CAVE & SAVE BRANDS mainly for their supporters or people who work for them. This revolutionizes those brands in being able to move forward and give an impetus both from the top and bottom end.
Finally, I would like to say that CAVE & SAVE BRANDS are here to stay and would not only co-exist and survive with RAVE & WAVE BRANDS but also thrive in the Indian environment. Happy Brand Building. Three Cheers to the Indian consumers !
The author is Brand Guru Jagdeep Kapoor, Managing Director of the successful Samsika Marketing Consultancy Pvt. Ltd.
Tel: 022 28477700 / 7701
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