Brand Concepts & Strategy

Structure
• What is a Brand?…. Product vs Brand • Brand Identity … Developing a Brand Framework • Brand Strategies … Extension & Revitalization

What is a Brand?

Essence of a Brand : Aaker
• “A company’s brand is the primary source of its competitive advantage and a valuable strategic asset.” • “The challenge for all brands is that they have distinct clear image that matters to customers and truly differentiates from the rest.” • The key step is to create a broad band vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed.

Product vs Brand
• A product is made in a factory… A Brand is bought by the customer. • A Product can be copied… A brand is unique • A Product is quickly outdated…A Brand is Timeless

Product vs Brand
Brands differentiate Products
• Fairness Creams: Fair & Lovely vs Ponds Dream Fairness • Coconut Hair Oil: Parachute vs Dabur Vatika • Cola: Coca Cola vs Pepsi Products largely undifferentiated: Product choice function of Convenience / Availability / Price. • Petrol : BPCL vs IBP vs …. • ATM : HDFC vs HSBC vs ….

Product Levels : Kotler
• Core Product: Core Benefit or service • Tangible Product: Brand Name, Packaging, Features, Quality, Styling • Augmented Product: After sale service, Installation, Delivery & credit, Warranty Eg: Consumer Goods … Products extending Services … Asian Paints: Painting Homes; Surf: Laundry

Brand Identity

Brand Image vs Brand Associations vs Brand
Brand Association

Personality Based on: • Expression of self or User Imagery Eg: Nike – Achivement Performance • User/Customer – Brand Relationship Eg: McDonaldsFun Family • Functional Benefit – Association Based Eg: Gujarat Ambuja- Strong Man

Identity vs Image
Consum er

Brand Image

Market, Competition, Media

Brand Identity Brand Communication •Activities Strategic Vision, Business

Consumer Research Noise

Corpor ate

Image:
• • • • Consumer Perception: What is vs What can be Awed by Competition : Problem of Imitating Desire to Impress: Lacks genuineness Caught in the Refection: Unable to see True self

What is Brand Identity?
• Simply put: What does a Brand stand for? • Heart and Soul of the Brand: Brand Constitution, Brand Framework • Provides Strategic Vision – Direction, meaning, purpose to the brand • Combination of Brand Vision, Purpose, Values & Associations • “… is a set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the Brand stands for and imply a promise to customers from the organization members” - Aaker

What is not Brand Identity : Traps
• Brand Image Trap: Eg: Denim: Macho
– Based on consumer perception. Tactical, Reactive – Lacks Strategic Future Perspective

• Brand Position Trap: Eg: Elle 18 : Teenagers
– Based on Competitive Advantage. Relates to current market scenario, consumer needs. Communication captures only a particular aspect of the Brand – Limited Scope. May not be applicable in the Future

• External Perspective Trap: Eg: Tata: Trusted Quality
– Customer centric, lacks employee buy-in

• Product –Attribute Fixation Trap: Eg: Britannia Biscuits
– Based on Product Attributes, Product Benefits

Brand Concepts
SENDER BRAND Brand Framework

Product Framework

How it does?

What it does?

PRODUC T/S Brand Image , Personalities, Associations

RECEIVE R

How? – Strategic Brand Analysis
Processes: Semiotics- Image Study: Factor AnalysisAttribute Rating, Perceptual Map, Cluster Analysis- Profiling
Consume r Image Needs Trends Performan ce Image Heritage SWOT Relationshi ps Image Positioning Communicati on SWOT

Company

Competit or

Brand Identity Systems: Aaker
Brand as an ORGANISATION Extended Identity Brand as Core PERSON Identity (Peripheral Support Values)

Brand as PRODUCT

Brand as Symbol VALUE PROPOSITION Functional + Emotional + Self Expressive Benefits SUPPPO RT

McDonald’s Brand Identity Efficient Service, Hygienic, Clean , Smart System
VFM, Tasty, Quality, Burgers & Fries, Happy Meal Promos American Fun Service VFM, Hygiene, Ronald Happy Family Fun, Happy, Friendly, Family, Warm, Outgoing

Ronald, Happy Meals, Parties

Tasty, VFM Burgers, Fries & Drinks Create environment to provide fun & entertainment For family and kids

Ronald, Happy Meals. Clean Environment, Efficient Srvice

• Guides Brand Strategy • Strengthens Brand Memorability, Communication, Associations • Provides Brand Extension possibilities • Assists Portfolio Reorganization • Improves Competitive Advantage • Adds Value to organization – Market Value • Gives a sense of direction to employee

Why ? – Leveraging Brand Identity

When? – Change vs Consistency
• Need to change Identity Position Communication: – Poorly Conceived Mismatch: Digen Verma – Obsolete: Philips… Innovation – Shrinking Audience: Ponds … Oil Control – Not Contemporary: Lakme…Fashion – Fatigue: Britannia… Health & Nutrition… Intelligence

Need For Consistency
• Brand Building takes time:
– Amul girl & Utterly Butterly Delicious Amul – Marlbro Rough Cowboy

• Results in Cost Efficiencies Organizational Pressures to change:
– “Change” a solution to all problems – “Facelift” to fight Boredom – “Self-Promotion”

BRAND-WAGON
BRAND ENGINE
Busines s Potenti al Brand Value Segmentati on Target Positioning
Product/Pkg Price Place Promotion

Marketing Mix

Mktg Plan

Sales Plan

BUSINESS STRATEGY SALES STRATEGY

MARKETING STRATEGY

Brand Strategies To Fuel the Brand Engine
• Strategy 1:- Extension- Giving birth to new product brands • Strategy 2 :- Revitalization- Injecting life to the existing brand Revitalization:- Injecting life to same brand, energizing a mature brand Need to inject life into the Mature Brand “Facelift” … Recharging the Brand Batteries

Brand Decisions: Leveraging Brand Identity
• Brand Extension Strategy • Brand Revitalization / “Restage”

Simply Put…
• Brand Identity: What does a Brand mean / stand for • Brand Extension: What would you like (enjoy, love, admire) the brand to do for you. • Brand Revitalization: How would you like to see the Brand tomorrow (Future Expectations). • Brand System / Architecture: What are the important Relations that the Brand has

Brand Extension Strategy

Need for Brand Extension
• Brand Growth
– Mature brand : provide fillip to stagnating sales – Threat of new entrants: Protect Market Share – Strengthen franchise

• Enhance Brand Image
– Strengthen Brand Identity – Revive core values – Reposition core values

Ways in which a Brand can be Extended
1. 2. 3. 4. Line Extension Brand Extension Multiple Brands New Brands

Line Extension Strategy
• Extend existing brand name to existing product category: Identify & occupy different segments of the market – “market fragmentation”
– Pack variants: shampoos: sachets to economy packs… tubes to jars, bottles to cans : differentiate uses – Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive: differentiate user groups… Parachute Uttam (differentiate markets)

Line Extension Strategy
• Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin type, user groups: Differentiate user needs … Colgate Gel, MaggiChinese Noodles • Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs

Brand Extension Strategy
• Extend the brand name to a new Product Category: Brand fit in a new business area
– Supplementary Categories: BPL TV to Washing machines, Maggi soups & sauces, Lakme lipsticks to perfumes – Complementary Categories: Colgate toothbrush & toothpaste – Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-shirts – Diverse Categories: Similar core values: Britannia biscuits to dairy products. Dabur Chavanprash to Vatika

Multiple Extension Strategy
• New Brand names in the same product category “market saturation” • Expensive strategy: Leading corporates… often through acquisitions… economies of scale
– HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy, Dove, Pears – P&G Detergents: Ariel, Tide – Coca Cola: Coca Cola, Thums Up… – Lakme: Elle 18, Orchids – Nescafe, Sunrise

New Brand Strategy
• New Brand Name for a product category: poor brand fit but business potential
– Kotex to Kleenex – Huggies to Depend – Thums Up to Gold Spot, Pepsi to Mirinda – Lakme to Elle 18

Stretching the Brand Vertically
Understanding the terms: • Vertical stretch: Technically a Line extension since it is the introduction of Price Variants of an existing Brand in the existing Product Class • Stretching Up: Extending the Brand to a Higher Priced Segment Eg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at Rs 60 • Stretching Down: Extending the brand to a Lower Priced Segment Eg: From Ariel Washing Powder to Ariel Gain Washing Powder

Brand Stretch & Market Segments
STRETCH UP Brand Image Market Potential

EXISTING BRAND

STRETCH DOWN

Brand Extension Horizons
Brand Extension Horizon 2 Brand Extension Horizon 1 Line Extension Horizon 1

Effect of Brand Extensions
• More Good: Extension enhances Brand name. • Good: Extension aids Brand Name • Bad: Extension fails to help Brand Name • Ugly: Extension Damages Brand Name • More Ugly: Brand Name is Forgone

Post Mortem
• Colgate Gel: More Good • Rexona Does: More Good • Close Up Whitening: Good or Bad ? (credibility?) • Amul Pizza : Good or Bad (price?) • Britannia Cheese, Ghee… More Good • Sunsilk Hairoil : Bad (Identity or product?) • Diet Coke: Bad… Good?? (Identity… Market evolution) • Frooti Apple Drink: Ugly (Identity?)

Note…
Good understanding of the Brand Identity… may or may not lead to the Success of the Brand Extension. But a poor understanding of Brand Identity will definitely lead to the failure of the Brand Extension… & may also damage the existing Brand.

Brand Revitalization

Brand Revitalization
• Inject life into a Mature Brand = Facelift • Enhance Brand equity: improved recognition, enhanced perceived value, changed associations, an expanded consumer base & or increased loyalty • Movement from milking Cash Cows to Brand Restage (External Stars), ina competitive context • Recognition of the Power of Old Brands vs the Expense & Risk of Creating New

Brand Revitalization/ Rejuvenation Efforts to extend

SALES

Prevent further Decline, retain sales growth TIME

Today’s need: Continuous Process of

Revitalization: Starts at an early stage before a brand shows a decline

Sale s

Time

Ways to Revitalize
Increased Usage Repositioni ng

New Users

Augmenting Product

New Markets Extensio ns

Obsolescing Product

Increased Usage
• Increased Salience: Dettol • Increased Frequency/Regular Use: Shampoos : Head & Shoulders, economy pack, travel pack • Incentives/Promotions: Filmfare, Frequent Flier Programs

New Uses
• New Gifting Solutions: Tiffany’s & Cadbury’s • Festive Occasions: Asian Paints • Multiple Functional Uses: Milkmaid recipes • Behavioral shifts: Moov – Sprains to Back Aches

New Markets
• Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults • Growth in new segments: Personal Computers

Repositioning the Brand
• Image Upgrade: Philips “Lets make things Better” • Revive Image: Lakme, Dettol • Change Association: Britannia from biscuits to healthy food

Augmenting the Product
• Packaging Upgrade: Crocin, Shampoo, fliptops • Product Upgrade: New improved Lux • Increased Customer Involvement: Wills & Cricket, Sunsilk & Parlours, Surf & Laundry Service

Obsolescing the Product
• Fashion Products: Colour cosmetic range, Revlon, Designer WatchesTitan • Technology Products: Sony Music… mobiles… Windows • Dying Categories: Pond’s vanishing cream – Oil Balanced Formula

Restage Vs Re-engineer
• Restage: Maintain the Star Status of a product through constant innovation & activity to CONTINUOUSLY enhance the brand equity salience over a period of time • Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs risk…. multiple changes to be orchestrated in conjunction …..

Remember… If you don’t, someone
What Iodex did not do, Moov did. What HMT did not do, Titan did. What Indian Airlines did not do, Jet Airways did.

Brand Exercise
• Develop a Benefit Ladder for the product Category based on Consumer needs / Motivation • Create a perceptual map for the leading 3-4 brands in the Category • Outline the Brand Image (from consumer research & Brand Values assuming the role of the Company) • Give 3 possibilities of Brand extension, Line extension and Brand Revitalization • Develop a brand Positioning Statement • Identify a consumer insight which you can

Motivation Perception Image Insight…. Question Bank
1. How would you describe Hit as a person vs Raid vs Baygon? 2. Imagine 10 years from now, where would you see these people… (individually) 3. Can you describe their family members 4. Which animal would you associate with the following brands? 5. Which Car would you associate with eash of the above brands? 6. Which celebrity / sport person would you associate with each of the above brands? 7. Which kind of person do you think will use the above brands?

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