Wateen’s Strategic Mistake in Product Launch
In this post we take a look at the role of advertising in building brand equity, using the case of Wateen’s recent product launch. Advertising is paid form of marketing promotion in which the sponsor is advertised and the message is controlled. Brand Equity refers to the value built-up in a brand. It is measured on a scale determining the extent of customer awareness. Besides awareness, brand equity is also directly related to the consumer’s experience with the brand itself. This experience finally decides the fate of product in terms of success and brand loyalty or failure within the potential target audience.
Within Marketing Mix i.e. Target market and 4P’s (Product, Price, Placement, Promotion), Product refers to the promise made to the customer or solution provided to the customer. Value is the perceived difference between the costs spent by the customer against achieved benefits. The lower the cost in relation to the benefits the lower is the value.
Hence, marketing communication or advertising during the product launch is a strategic decision and must be handled with care. Launching the product or service aggressively without practically placing it or making it available might bring critically negative impact on brand reputation. Such campaign destroys instead of building a brand. It is just like a promise made to the customer and then not being fulfilled. Such mistake at launch stage, specifically in case of a product like WiMax which still have to struggle a lot in getting mass awareness and with delivery issues, can severely disrupt the company’s and brand’s image within early adaptors of the product.
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