MMA Winning Equation 4.0

MMA Guest Lecture - Pond’s Levers Veterans Series
A Winning Equation for Consumer Businesses – 17th Oct

2020
OPENING COMMENT BY ME
Our pix shown

But most important are each of you audiences
You have shown the keenness to learn and also ambition
Both are key and all the best
Context setting…Various frameworks to enable growth
#1
4Ps of Marketing
#6 Grow mkt, #2
Grow share, Grow ARPU Innovation Funnel
#5 #3
BCG Growth Matrix Perceived Value > Price
#4 Ansoff model –
New/Old, Cust/Prod
Copyright @ Pankaj Seith 2
A Winning Equation
Perceived Value > Price
5 minutes 3
A Winning Equation

Winning customers via greater Perceived Value
Deliver more quantity eg more mileage of bike, more GB in plan
Deliver higher performance eg better network, better emotional payoff
Deliver newer add-on features eg camera in phone, fragranced detergent
….do the above without increasing price
5
Put some quotes of
Bezoz, Elon Musk…..
6
A Winning Equation

Winning customers via lower Price
Lower overall price eg lower price vs competition, zero cost 3 yr service
Lower outlay each time eg EMIs, sachet
Lower compulsory price eg “Freemium model” on web-series, returns policy
Lower total cost of ownership eg Cars TCO, Buy 3-for-2
….do the above without lowering customer value
Copyright @ Pankaj Seith 8

10 minutes
Put some quotes of
The example of Pond’s Talcum Powder
DELIVERING DELIVERING
“PERCEIVED VALUE” “LOWER PRICE”
10
More attractive fragrance – PDF Magic

More emotional connect – PDF TV ads
New feature/packaging – PDF Magic X 2
New feature/ingredient – Sandal Talc
11
Lower price - PDF 50g/20g pack

Lower price - PDF 40% price cuts due to tax cuts
Lower price - PDF sachet 8g (didn’t succeed )
Lower TCO - PDF 400g – price ~2.5X of popular 100g
12
Building a consumer business via this Winning
Equation
Deliver more quantity Lower overall price
Deliver higher performance Lower outlay each time
Deliver newer add-on features Lower compulsory price
Lower total cost of ownership
….Important to keep the other side constant, when touching one side
13
The example of Indian mobile phone market
14
You have all seen this journey
Think thru’ some examples….in 60 seconds
15
More performance of network – reach, speed

New features via hardware – camera, dual SIM
New features via software – new co. apps, old co. apps
New features via paid-for services eg Zomato Gold, Music
16
18 minutes
Lower price – incoming free

Lower price – lower charges for voice/data
Lower outlay each time – pre-paid
17
Put some quotes of
18
B2B business via this Winning
Building a consumer
y Equation
19
Building a consumer
Equation
y
Can this equation be used to plan growth in a B2B growth business ?
What is your opinion ?
Take 30 seconds and think thru’ your vote for a YES or a NO.
20
Building a consumer
Equation
y
….including permutations and combinations of the above
21
The B2B example of Hindustan Times
CONTEXT SETTING
Revenue model is essentially B2B in print/digital media
Advertising revenues is over 75% of total revenue
22
Put some quotes of
25 minutes 23
VALUE TO ADVERTISERS
More audience reached Del Del+Mum
New feature for more impact  Advtg + Events
New feature for more impact  Print + Digital
New features options  Glazed jackets
24
LOWER PRICE FOR ADVERTISERS

Lower cash outlay via Ads-for- Equity barter
Lower price via Geo-Targeting eg Top 3 metros only
Lower price via automation eg Programmatic advtg
Lower price via Ads in Supplements
25
Building a consumer business via this Equation
Deliver newer/better features Lower compulsory price
26
Presentation Flow
PRESENTATION BY PANKAJ SEITH
• A Winning Equation  COVERED
• A Winning Equation – Some examples  COVERED
• Useful tools for applying this successfully  LETS SEE THESE
PERSPECTIVE SHARING BY C K VENKATARAMAN

• A Winning Equation – the success mantra of Titan EyePlus & Tanishq
PERSPECTIVE SHARING BY RAHUL VARMA

• A Winning Equation – How companies use research to achieve this balance
27
#1….INNOVATION “FUNNEL” NOT INNOVATION
“TUNNEL”
SHARED BY ME
FDV – Feasibilty, Desirability, Viability
or
CCC – Company, Customer, Cash
If one doesn’t work, don’t drop but re-work
28
30 minutes
Put some quotes of
29
#2….MAP YOUR 20/80 SUCCESS PLAN
Thought starter – Map your +20/+80
https://www.kumaralok.com/wp-content/uploads/2016/02/Pareto.jpg 30
Presentation Flow
• A Winning Equation
• A Winning Equation – Some examples
• Useful tools for applying this successfully

LEARNINGS SHARED BY VENKAT
PERSPECTIVE SHARING BY RAHUL VARMATitan EyePlus = Expertise + Empathy
• A Winning Equation – How companies
Tanishq = Modern design
use research + Age-old
to achieve local
this reln + Phygital now
balance
Customer obsession of co. – every employee, every function
31
32
33
Presentation Flow
LEARNINGS SHARED BY RAHUL
Behaviour is subject to
• A Winning Equation – the success mantra
a) of Titan biases
Cognitive EyePlus & Tanishq
b) Emotions
c) Social infludences
34
“Irrational” Decision Making: The Example of the
Psychology of Price
Boundedly rational choices, made due to limits in our thinking processes, especially those we make as
consumers, are illustrated well in Dan Ariely’s popular science book Predictably Irrational.
In the top 20% of In the bottom 20%

social security Experiment # 1 of the Social
numbers security number
Were willing to pay three times

Anchoring
Dan Ariely is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke
University 35
“Irrational” Decision Making: The Example of the
Psychology of Price
Boundedly rational choices, made due to limits in our thinking processes, especially those we make as
consumers, are illustrated well in Dan Ariely’s popular science book Predictably Irrational.
Free chocolate vs 14 1 cent chocolate vs Experiment # 3

cent chocolate Experiment # 2 15 cent chocolate
To a ‘rational’ economic decision

maker, a price difference of 14 cents Finally, price is often taken as an
should always provide the same indicator of quality
magnitude of change in incentive to
choose the product
Dan Ariely is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke
University 36
The psychology of homo economicus—a rational and selfish individual with
relatively stable preferences—has been challenged (Thaler & Sunstein,
2008). Behavior is subject to cognitive biases, emotions, and social
influences
37
“Consumer Research” : The Methodology to
Wither the impact of Irrational Decision making
Conjoint Analysis - Prioritization of features basis their appeal to the end user. Features would be
evaluated as a complete feature package in a competitive scenario to be able to factor the affect of
cognitive biases, emotions, and social influences
CBCisisaatechnique
CBC techniquethat decomposesthe
thatdecomposes theoverall
overalljudgement
judgementofofconsumers
consumersinto
intothe
the
valuethey
value theyattach
attachtotoindividual
individualcomponents
componentsofofthe
theproduct
product(For
(Fore.g.
e.g.Speed,
Speed,
AirThrow,
Air Throw,Finish,
Finish,Brand,
Brand,Price,
Price,Number
NumberofofBlades
Bladesetc.)
etc.)
38
Conjoint Stimuli and the Output
Feature 1 Segment 1 : B – Below and B Price premium
Consumer perceived
(Predictive (Tire pressure (Pedestrian (HDC (Hill Individual Optional feature Utility MSRP
price
(Consumer perceived price
- MSRP)
Forward monitoring FEB : Descent
HDC (Hill Descent Control) Off-road 5.32 2,000 2000 -
Collision system) Pedestrians Control) Off- Emergency Stop Signal (ESS) 4.57 600 2000 1,400
Warning Forward road ) Autonomous Driving#1 (single lane) 3.93 6,000 3500 - 2,500
(PFCW) Emergency Forward Collision Warning (FCW) Systems 3.69 2,400 3000 600
Systems) Braking) Blind Spot Warning 3.56 6,000 3600 - 2,400
Lane Departure Prevention 2.79 4,800 3400 - 1,400
Feature 2 Pedestrian FEB : Pedestrians Forward
(Intelligent (Blind Spot (Lane (Intelligent Emergency Braking 2.63 1,200 2500 1,300
Parking Assist) Warning) Departure Cruise Electronic Parking Brake w/ Auto hold 2.08 4,800 3500 - 1,300
Warning) Control) Emergency assist for pedal misapplication 1.93 2,000 2600 600
Apple car play & Android auto 1.14 3,600 3000 - 600
Feature 3 Moving Object Direction (MOD) 0.80 1,800 2500 700
NONE: I
(HDC (Hill (Lane (Emergency (Hill Start Tire pressure monitoring system 0.77 4,000 3000 - 1,000
wouldn't
Descent Departure assist for Assist ) Hill Start Assist 0.73 2,400 2000 - 400
choose any of Traffic Sign Recognition (TSR)
Control) Off- Prevention) pedal 0.25 3,000 2700 - 300
these. Rear cross traffic alert 0.23 3,500 3000 - 500
road ) misapplication
) Around View Monitor 0.20 10,800 5000 - 5,800
Lane Keep Assist -0.24 5,000 3500 - 1,500
Feature 4 Blind spot intervention system -0.45 8,000 3600 - 4,400
(Forward (Rear cross (Lane Keep (High Beam Driver Attention Alert (DAA) Systems -0.77 600 1850 1,250
Emergency traffic alert) Assist) Assist (HBA)) High Beam Assist (HBA) -0.83 2,500 2000 - 500
Braking (FEB)) Backup collision intervention system -1.19 2,000 2500 500
Predictive Forward Collision Warning
(PFCW) Systems -1.22 2,000 2500 500
Feature 5 Lane Departure Warning -1.73 2,500 3000 500
(Tire pressure (Intelligent (High Beam (Driver Full Auto Parking (FAP) -3.40 10,800 5000 - 5,800
Smart Rear View Mirror(SRVM) -3.52 6,000 3100 - 2,900
monitoring Parking Assist) Assist (HBA)) Attention
Forward Emergency Braking (FEB) -3.69 8,400 3500 - 4,900
system) Alert (DAA) Intelligent Parking Assist -3.93 6,000 4800 - 1,200
Systems) Distance Control Assist (Intelligent Pedal) -6.82 7,000 4000 - 3,000
1 2 3 4 5 Intelligent Cruise Control -6.83 14,000 3500 - 10,500
39
Thank You!
40
All the best !
41
40 minutes
Context setting…
There are many aspects that go into making a successful consumer businesses
Many success formulas and frameworks have been used for this
Important to know all and master a few
Plus remember that “Genius is 1% inspiration and 99% perspiration”
42
Presentation Flow


43
Building a consumer business via this Equation
44
#2….BUILD IDEAS THAT ARE
FEASIBLE/DESIRABLE/VIABLE
= “FDV”
45
37 minutes

MMA Winning Equation 4.0

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MMA Winning Equation 4.0

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MMA Guest Lecture - Pond’s Levers Veterans Series

A Winning Equation for Consumer Businesses – 17th Oct

Our pix shown

Perceived Value > Price

Perceived Value > Price

….do the above without increasing price

Perceived Value > Price

….do the above without lowering customer value

Copyright @ Pankaj Seith 8

More attractive fragrance – PDF Magic

Lower price - PDF 50g/20g pack

You have all seen this journey

Think thru’ some examples….in 60 seconds

More performance of network – reach, speed

Lower price – incoming free

Can this equation be used to plan growth in a B2B growth business ?

What is your opinion ?

….including permutations and combinations of the above

LOWER PRICE FOR ADVERTISERS

….including permutations and combinations of the above

PERSPECTIVE SHARING BY C K VENKATARAMAN

PERSPECTIVE SHARING BY RAHUL VARMA

If one doesn’t work, don’t drop but re-work

Thought starter – Map your +20/+80

PERSPECTIVE SHARING BY C K VENKATARAMAN

In the top 20% of In the bottom 20%

Were willing to pay three times

Free chocolate vs 14 1 cent chocolate vs Experiment # 3

To a ‘rational’ economic decision

Important to know all and master a few

Plus remember that “Genius is 1% inspiration and 99% perspiration”

PERSPECTIVE SHARING BY C K VENKATARAMAN

PERSPECTIVE SHARING BY RAHUL VARMA

….including permutations and combinations of the above

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