Create brands that offer 10% more value than promised to customers: Narayana Murthy

economictimes.indiatimes.com:

Infosys founder N R Narayana Murthy on Friday shared a piece of advice with entrepreneurs seeking to build successful consumer brands saying they must focus on creating products that come embedded with 5-10% more value than promised in their ads.

“Brand is a mark of trust,” the veteran entrepreneur said during the annual conference of Venous Association of India in Mysuru.

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Murthy, who built Infosys with a team of six cofounders in the early 1980s, stressed that price is what a buyer pays, while value is what he sees, and that everyone who goes shopping makes a simple computation of value divided by price.
“If you want to increase the price of a product, you have the responsibility to make sure that the buyer experiences a much higher value so that the ratio of value over price is higher,” he said. “The ratio of value over price is the basis for all purchasing decisions.”

Owner's pride

Sharing a personal experience, Murthy said he once met a person who showcased his refrigerator prominently in the drawing room as a mark of ‘owner’s pride’. «People think if they have a certain phone or watch, it gives them a certain stature, prestige among people around them,» he explained to convey the consumer’s mind space that marquee brands occupy.
Drawing on from another experience, the Infosys founder said he found the doctors in his Jayanagar area of South Bengaluru the best. «They may not be doing the most advanced procedures