Establishing mid premium brand in lower middle income economy: Context Bangladesh

Second International Conference on Business Research, 2016

Rifat bin Salam

Establishing brand in mid premium segment in

lower middle income economy: Bangladesh context

by

Rifat Bin Salam

Consumer Insight Professional

Rifat bin Salam

THE CONTEXT OF THIS RESEARCH

Over the past few years, Bangladesh posted steady growth in GDP

Youth demography

Growing Urban Population

Growing middle class

Huge in flow of remittance

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GROWING MIDDLE CLASS SEGMENT

Evolving middle class group is catalyzing the development.

SEC A

SEC B

SEC C

SEC D

SEC E

2%

5%

14%

20%

59%

1991

4%

7%

26%

31%

32%

2011

5%

10%

35%

35%

15%

2021 (expected)

Source: BBS and Bangladesh Bank

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CONSUMER OPTIMISM CATALYZING BUYING MORE

Rise of middle and affluent class from

7% to 17%

by 2025

Brand in the front

is a leading factor when purchasing followed by

Price & Quality

With the increasing purchasing power; consumers trust on brands, marketers job is to create and sustain the loyalty and trust.

Source: BCG report Oct’15

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THEREFORE, THE HYPOTHES

Upgradation of the

economic stature of

the country makes

consumers shift

from mass products

to mid-premium

products/brands.

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CENTRAL QUESTION –

How to build mid-

premium brand for lower

middle economy like

Bangladesh?

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Economic Pyramid

Brand Pyramid

Need Pyramid

Culture of necessities

Culture of Abundance

Market for the mass level products/brands

Market for the premium products/brands

Affluent Affinity Esteem

Middle income Meet need Social

Lower Middle Different Safety

Lower Awareness Basic

THE FRAMEWORK

BRAND: A product which has clear purpose and positive perception in consumer mind

MID-PREMIUM: Not mass not premium but affordable for the growing middle class.

LOWER MIDDLE INCOME ECONOMY: GNI (gross national income) more than 1,000 USD

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KEY LERANINGS

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MID-PREMIUM MEANS SOMETHING

TANGIBLE TO BANGLADESHI

HOUSEHOLD

“If I pay more for a

detergent it must clean

faster than what I get

from my current

brand.

”

Tangible benefits of

product or services will

be the gateway to

touch middle and

affluent class.

Need for

Visible differentiation

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MASS BRANDS WOULD BE TAKING

UPWARD SHIFT

“Why not trying

something else, when

I have other options.

”

Willingness to buy

better and expansion of

brand and category will

force mass brands to

take an upward shift.

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MID-PREMIUM BRANDS NEED TO

TOUCH ESTEEM OF GROWING

MIDDLE CLASS

“I feel like someone is

there for me to

recognize my efforts

for doing all chores.

”

Touching aspiration is

key. Sense of

superiority

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MORE VARITY WITHIN THE BRANDS

MEANS VIBRANT IMAGERY

“This ice-cream

brand is like an old

man it has very limited

variety

”

Moving up & down

within the brands will

be increasing to see

enhanced value.

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MARKETING GIMMICK WILL BE

CHALLENGED

“TVCs do talk about

anything and

everything but it

doesn’t happen that

way.

”

Access to multimodal

media will increase

consumers to check and

validate before taking

final buying decision.

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> Only milk candies contain fresh milk!

> Amla & coconut are only available in shampoo bottle, not in the tree itself!

> Free talk time, data, SMS & bundle offer are the world’s biggest surprises!

> Fairness cream has the magic of replacing few layers of your skin while sleeping!

> Celebrities, butterflies, football, rose petals very often step out of the LCD television!

> You will find rose petals in washing powder, beauty soap and in body lotion!

> Lemon is everywhere ..soap, soft drinks, detergent, candies and so on!

TYPES OF MKT GIMMICK WE SEE

NOW-A-DAYS..

As if…

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Economic Pyramid

Brand Pyramid

Need Pyramid

Culture of necessities

Culture of Abundance

Market for the mass level products/brands

Market for the premium products/brands

Affluent Affinity Esteem Social

Middle income Lower Middle

Meet need Different Safety

Lower Awareness Basic

CONNECTING THE DOTS

More DI Increasing consumption

Brands in a context when consumers have more economic freedom and continuously

moving up Needs for change in marketing strategy

Social – Extrinsic value base Esteem is intrinsic value

dependent

Thank you!

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