Assignment
THE PROBLEM
Significant businesses and celebrities have joined and embraced NFTs, which started as an experiment in the new blockchain technology and later became a platform for artists to take ownership of their work and manage its worth. NFTs are generated as a technique to safeguard digital data that ensures ownership and establishes scarcity.
Nonfungible.com, a website that records NFT transactions on well-known markets, reports that most days in April and May of 2021 saw 1,000 to 3,000 different wallets purchasing NFTs. These transactions amounted to about 30,000 unique purchasers overall in April and nearly 25,000 in May. It was an increase in purchasers compared to 2020, when most months had less than 10,000 individual customers. This is a minor decrease from the 39,000 unique buyers during March.
According to Abhay Agarwal, founder and CEO of Colexion, the largest blockchain-based NFT marketplace in Asia, India has long been a creative and talent powerhouse. NFTs give artists the right platform and easy access to display their work digitally and on a much larger scale. This is great for entrepreneurial opportunities for artists and digital creators. But, regarding brand loyalty, only 2% of Indians are loyal, and discounts don't keep them hooked. NFTs are a way to build an online identity, as per one's wish. Many brands have started creating unique digital-art NFTs and selling them to customers. MTV has launched its "Fully Faltoo" token collection, which is available for customers to buy. A few months ago, Make- My-Trip sold its vacation NFTs for Rs14,999 each on a first come, first serve basis.
However, the brands are still on an exploratory stage with this technology. They have faced many challenges in collaborating with NFTs as most of the population is still confused about the whole concept.
Consider an "ABC" brand from the FMCG sector that is trying to enter and establish its unique NFTs. It is a well-established brand in the market. The brand follows "Branded House" architecture. ABC brand portfolio comprises of 22 brands including cola, chips, fruit juices etc.
MARKET SEGMENTATION
ABC has a multi-segment positioning strategy and, as a result, simultaneously markets to many consumer segments with various product or service offerings. For instance, Cola is promoted as a soft drink with a wonderful flavour and a refreshing effect. Because of their high sugar content, Cola is not marketed to consumers worried about the health effects of consuming carbonated soft drinks. Diet cola, which ABC markets as a carbonated soft drink with less sugar than Cola and other soft drinks, is available for this client demographic.
TARGET MARKET
Teenagers, young adults, and customers in the early middle years of adulthood are the target markets for cola in the US and abroad. Overall soft drink consumption increased during the COVID epidemic. They were consuming the same number of soft drinks or more than they had previously. Customers who use ABC's products tend to be young adults (13 to 35), from lower middle class to high class, who have active, contemporary lives. Because of this, their costs remain accessible to millennials from various socioeconomic backgrounds.
POSITIONING
ABC focuses on the common traits of brand positioning within its portfolio when defining its target consumer category. Within the ABC portfolio, certain variations across the brands in terms of their nutritional content, cost, packaging, etc., affect how each brand is positioned. ABC has positioned itself as a brand representing youthful enthusiasm, evident in all of its marketing and advertising initiatives.
THE QUESTION
Considering the growth of NFTs, ABC is trying to integrate their unique designs into NFT. Some competitors, like Coca-Cola, have already launched their unique digital art tokens on NFTs.
How do you think the brand should strategize its entry? You have to make a complete plan of action for the same. While answering this question, remember to cover the following sub-parts:
a) Provide the situational analysis of Company ABC.
b) Write the positioning statement for Company ABC?
c) Do the customer journey mapping for company ABC.