That’s a question marketing pundits would love to debate, discuss and discard to the bin, as quickly as it is raised. Classical marketing theory suggests that a brand is built by offering value that exceeds the price of its products. By this logic, if a product is priced at zero, then any positive value created for the consumer should sit in well with the pundits. But many would believe that it’s not an open and shut case and that’s the crux of this deliberation.

Imagine a brand that offers its product for free to consumers. Now as long as the product offers real value on consumption, consumers would not be averse to patronizing such a brand. The next obvious question that arises is: Does the ‘Free’ label dilute the brand equity over time? The answer to this is simple: as long as the brand keeps adding value to its Free offering, consumers would continue to lap it up with glee. And the brand in question, slowly but steadily gets built.

Let’s consider a real life example. A couple of months ago, an online brand called Lucky Stars, fashioned on the “free” premise, made its entry into the market.

Lucky Stars is a mobile app for both Android and iOS, whereby consumers can “Win Gifts For Free” through lucky draws held practically everyday. It’s a free to download app and participation in the lucky draws too is absolutely free. What’s more, the gifts won are couriered or delivered to the winners for free. So, it’s absolutely free, right through and no purchase of any kind is required to be made.

Since launch 3 months ago, the brand has successfully garnered over 50,000 app downloads, with over 500 happy winners who have won gifts for free. What’s pertinent to note here is that the gifts are by no means small in value – a Vespa scooter, LED TVs, I-Phones, Guitars, Music systems, Fitness watches, Wrist watches, Amazon gift cards and many, many more. Big value for free!

Mr. Hetin Sakhuja, MD, Interactive Max Tech (IMT), the company that conceptualized, designed and developed, had this to say: “Lucky Stars is a unique and innovative brand that is fast becoming popular, across cities and towns in India. We’re ramping up quickly to provide even better value for our users, so stay tuned in for big things to come”.

Coming back to the discussion of the premise of Free, it’s very clear that consumers are happy to climb on to this bandwagon and benefit from it. Free works well as long as it continues to drive value when consumed.

To get in touch with us, visit http://www.luckystarsapp.com