Thursday, March 01, 2007

Concepts and ideas # 4 : Small is the new big






Customers are becoming more sophisticated and require quality products at affordable prices . In other words people want branded products/services at low prices . Multinationals like Unilever , Motorola and Chanel have realised that a focus on low prices , small sizes and simple to use products/services will pay off big time . Manufacturers acknowledged that smaller and cheaper products/services do not mean less branded .They are now targeting low income customer markets like Brazil , Russia and India . Besides the extra revenues ,building a brand relationship with future big spenders should result in greater revenues in the long term .

In an interesting twist consumers hunt for exclusive goods /services and experiences that are out of reach for most of us . The so called " elite consumers " are willing to pay just anything for status . Marketers have understood that big time , they are now releasing limited edition ( limited numbered edition , collector's item ) products for premium customers . These luxury products have unique features and are manufactured in very small quantities at very high prices . Scarcity is the key here .

These days Marketers are making money and paying respect to future affluent customers !


Miniaturization , sex appeal and usability in action



  • Chanel has created a low cost efficient fragrance for the third world .

  • Unilever has come up with branded , usage adjusted products for low income consumer markets .

  • Whirlpool has developed a reduced capacity washing machine for developing countries like Brazil and China . The washing machine has been adapted to local taste . Whirlpool is now exploring the possibility of bringing the " people's machine " to Europe .

  • Apple's ipod shuffle is the smallest digital music player available at an affordable price .

  • Mercedes Benz produced only 300 SLR's " 722 edition " . Sold out faster than the time taken for the car to be projected from 0 to 100 Km/h .