Brand Kya Hota Hai?

You & Me Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it Origin: Brandr

Brand ki zaroorat kya thi?

One Consumer One Need MANY PRODUCTS Kiss ko choose karun -- Confusion!

Ek Friday. Doh Filmein!

Comedy vs. Comedy Two Star vs. Two Star Govinda vs. Tushar Kapoor

Which one will you go for?

Brand Govinda: Comedy Associations

Brand has
Name, Symbol or Logo Brand Purpose: Positioning Values & Personality: Image Bundle of Benefits: Promise

Consumer: Value Maximiser

Brand: Biggest Value Driver! Cap Rs. 50/ Cricket Team Cap Rs. 500/ Team Cap used by Tendulkar Rs. 5000/-

Brand Value

IMAGE DRIVER

CONVENIENCE

RISK REDUCTION PROMISE MEANS OF IDENTIFICATION

Kya brand ho sakta hai?

Gaadi Doodh Atta

Namak
Kya nahin brand ho sakta hai?

Brands kya reality mein better hote hain?

Is Mercedes the best car? Is IIM Ahmedabad the best b-school? Maybe, maybe not! Perception!

Sounds easy!
One NIKE. 1000 FAILED NIKE! Biggest challenge for a Marketer 3C Challenge
Cash Consistency Clutter

Brand Equity
Concept & Its Importance

The Challenge
More Products More Competitors More Media Same Consumers Same Needs GROWTH MANTRA?

MANTRA #1

Price
Sales Promotions Price Wars Short-Term

Mantra #2

Brand Building
Distinctive Sustainable Long-Term

What is Brand Equity?

BE is a set of brand assets / liabilities linked to a brand, its name or symbol that add to or subtract from the value provided by a product or service to a customer

Components of Brand Equity

Awareness: Name & Symbols

Perceived Quality Brand Associations Brand Loyalty Other Proprietary Brand Assets

Awareness: Name & Symbols

Recognised vs. Unknown Brand

Familiarity drives perception

Familiar = Reliable + Good Quality

Unknown only a push option

Brand Associations
People, situations, moods, needs that consumers relate a brand to/with Helps the brand occupy a distinct mindspace Drives purchase

Perceived Quality
Consumers are not engineers! Quality is based on perception and not specifications Brands drive perception of quality Perception drives purchase, premium justification and ease of extension

Brand Loyalty
Cost of acquiring new customers is 10 times the cost of retaining old ones! Products are non-living but brands arent Customers associate themselves with brands (preservance/enhancement) Difficult to break-away to competition

Other Proprietary Assets

Trademarks
Patents Channel Relationships

CBBE
Consumer Based Brand Equity

Case for Building a Brand

Improved Product Perceptions Greater Loyalty Insulation from Competition Higher Margins Inelasticity to Price Cooperation from Channel Effective Marketing Communication Leverage through Extensions

Million Dollar Questions

What makes a strong brand? How to build one?

The 4 Fundamental Questions

Who are you? (Brand Awareness) What do you do? (Brand Knowledge) What do I think about you? (Brand Attitude) What about you and me? (Brand Relationship)

Brand Awareness

Recognition & Recall Depth: How easily do they recall?

TOM: McDonalds

Breadth: In what all situations do they recall?

Usage Occasions: Tropicana

Brand Knowledge

Performance: Attributes & Benefits

Ingredients: KFC Consistency: McDonalds Durability: Tata Serviceability: Maruti Service Efficiency: Dominos Style & Design: Swatch User Profile: Harley Usage Situation: I-Pill Personality: Tata Values & Beliefs: Johnie Walker

Imagery

Should be strong, favourable & unique

Brand Attitude

What consumers think and feel about the brand

Brand Judgments: Opinion / Evaluation Brand Feelings: Emotional Responses / Reactions

Brand Attitude

Brand Judgments

Quality: Smirnoff Credibility: Apple Consideration: Sony Superiority: Intel

Brand Attitude

Brand Feelings

Warmth: Archies Fun: Disney Excitement: MTV Security: SBI Social Approval: Mercedes Self-Respect: RbK

Brand Relationship

Association with the Brand

Behavioral Loyalty: Fair & Lovely

Attitudinal Attachment: Budweiser

Sense of Community: Saab Active Engagement: Enfield

Term Project: Phase I

Understand the Current CBBE amongst the Target Market FGDs / DIs Users / Lapsers Define it as given in the subsequent slide

CBBE for Amazon

BRAND RELATION

Loyalty, Community, Engagement Smart Shopper Good Value / Credibility For Every Internet User Conv., Variety, Low Prices Books, Music & Videos

BRAND ATTITUDE

BRAND KNOWLEDGE

BRAND AWARENESS

Defying Newton

What is a declining brand?

A brand which has over a period of time been losing both market share and mind share amongst its target consumers

Top 10 Reasons for Declining of Brands

Cause #1
Decline in quality
Cost-cutting (Maruti 800) Increasing volumes (IIMs) Relaxation in QC Measures (Caf Coffee Day) Perceptual Decline: Price, Channel, Sensorials, Advertising, Packaging

Cause #2
Resistance to Change
Product Oriented (Robin Blue) Need Oriented (Nirma Detergent) Consumer Oriented (Dabur Chavanprash)

Why resistance?
Investment Product Orientation Tried & Tested Complacency

Cause #3
Single Product (Ambassador)
No portfolio No extensions

Problem?
Visibility Stature Decline in segment Decline in product

Cause #4
Excessive Pricing (Daewoo Cielo)
Premium pricing High margins Entry of Competition Feeling of being cheated Private Labels

Cause #5
Wrong extensions (Pune Mirror)
Bad products Crowded categories Lower image products / segments

Cause #6
Communication (Kelvinator)
Low levels of communication Wrong message Low impact Brand Ambassador Production values

Cause #7
Channel management (CrossWord)
Attitude of Sales Team Margins No push Emergence of alternate channel

Cause #8
Ageing (HMT Watches)
Old age No makeover (Product / Communication) Perceived as Not for me

Cause #9
Lack of differentiation (Acer Computers)
Cluttered market No USP No competitive advantage Me Too Branding

Cause #10
Tough Consumer
Less emotional Lowering levels of loyalty Flirtatious attitude More knowledge driven Connected via media

Exercise: Failed Indian Brands

Weikfield Jelly Maruti Zen Estillo Yamaha RX-100 Roohafza Margo Soap Kinetic Scooter Fiat (Ageing) Moti Soap Savlon Milkfood

Revitalising the Brand

Why revitalise?

Brand still has high awareness Brand still has some values with consumer Product still selling

Cost of building a new brand is far higher

Ways to Revitalise

#1: Increase Usage

Getting existing customers to use more of your product

Frequency of Use (Shampoo)

Reminder Communication Positioning for frequent use Make the use easier Provide incentives Reduce undesirable consequences of frequent use Use at different occasions

#1: Increase Usage

Getting existing customers to use more of your product

Quantity of Consumption (Chips)

Incentives on high use Creating larger servings Removing undesirable consequences of high consumption Positive associations

#2: Finding New Uses

Finding a new functional use for the brand

Omni Cargo
Observe usage of current customers Sponsor new use contests Use of competitions product Potential market Feasibility & Cost Competitive reaction / takeover of the use

How to find new uses?

When to adopt a new use?

#3: Entering New Markets

Move into a new market area having growth potential

New Segment (Pepsi A.M. / Bacardi Breezer) New Geography (Honda City / Gits)

#4: Repositioning the Brand

Existing positioning not relevant Lacking appeal amongst TG Reposition the brand on a new platform

Lifebuoy (Koi Darr Nahin) Fair & Lovely

#5: Augmenting the Product

Providing features / services not expected by the consumer

Must be things the consumer values Linked to the product Nestle Coffee Shaker Titan Eye Free Eye Testing

Drive consumer delight

#6: Obsoleting Existing Products

Kill the existing product and introduce a new technologically advanced product

Bajaj: Scooters to Motorcycles Gillette: Stainless Steel Blades Intel: Self Destruction Windows Vista: Windows 7

Risky as there has been investment in the existing product which will go waste

#7: Extending the Brand

Take the brand into products which have a brighter future

Dettol Soap Mcdonalds: Salads & Yoghurt Crest: Beyond cavities! Relevant Sustainable

Extension must be

What if nothing works?

Option #1: Milking

Minimising investments, maximising cash flows

Hold Milking Strategy: Pepsodent G

Sufficient Investment

Fast Milking Strategy: Ambassador

Pulling out of investment Raising of prices in certain cases

Option #2: Divestment or Liquidation

Exit out of a brand

HUL Denim Lee Cooper

Last Resort

Rapid sales decline Milking also unprofitable with price pressures Weak brand position Exit barriers can be overcome

Brand Extensions
Why? When? How?

What is a Brand Extension?

Established brands are assets Marketers try and leverage these assets The process of using the brand name on another product is known as extension

Line Extensions (Lifebuoy Liquid Soap) Category Extensions (Nokia Laptops) Stretch Extensions (Intel Celeron)

Why Brand Extensions?

New products a driver of growth for a company Developing and launching requires millions Yet 9 out of 10 new products FAIL Brand not launching new products are also at times perceived as old and staid Overdependence on any one brand could be dangerous Parent brand may only appeal to a segment Brand is seen as boring and lacking variety Allows the competition to flank

Why Brand Extensions?

Brand extensions helps cut down costs Also increases the chances of success as the consumer already has a favourable image Rejuvenates parent brand Reduces overdependence on a single product Category/Stretch extensions help bring in new users Line extensions cater to different needs of segments or provide variety to existing users Can also be a tool for blocking competition

How do consumers evaluate?

Fit between Parent & Extension Fit in terms of Core Differentiation FIT: Coke & Diet Coke (Taste) MISFIT: Pepsi & Crystal Pepsi (Colour) Extension must remain true to the core values of the parent brand

How much to extend?

Extend to the extent where there is an equal borrow & build with the parent brand Harley: Clothing, Tatoos but not Energy Drink FAL: FAL for Men but not Perfect Radiance Pepsodent: Cavity, Plaque but not Fresh Breath Drivers

Frame of Reference (McDonalds Fast Food) POD (Oral-B Toffee) RTB (Gits Pasta)

Moving Down

Why?

Competition Private Labels

Challenge

Protecting the Brand Distinguish the Extension

Sub-Branding Product

Moving Up

Why?

Potential User Base Higher Margins

Challenge

Managing Credibility Sub-Brand with a Descriptor (Kodak GOLD)

Risks in Extension

Line Extension: Overchoice & Confusion Dilution of Parent Equity: New Maggi, Coke Vanilla

Use of Sub-Brand gives cushion: Sony Walkman

Cannibalisation of Parent (Space & SOM)

Extensions in Portfolio

Cannibalisation
Distinct Role Incremental Share Different Needs

Key Questions

Positioning of Parent Brand? What am I using from the positioning? Is that valued by the consumer in the new category in which I am extending? Does the consumer see a connect with the parent? What will be the impact on the parent?