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Value to the consumer company Easier identification Relationship And Emotional Link Purpose Of The Brand Value to the Repeat Business Aid New Product Introductions Competitive Entry Barrier Maintain Differentiation Against Competition Better Managed Channel Partners
Guide Purchase Decision Reduced Perceived Risk Quality Consistency Guarantee Self- Expression And Social Identity Trust & Assurance Satisfaction And Consumption Pleasure
Command Price Premium Brand Asset Through Investor / Shareholder Confidence Brand Equity Committed & Focused Staff
SELF EXPRESSIVE BENEFITS
FUNCTIONAL AND EMOTIONAL BENEFITS
FUNCTIONAL / EMOTIONAL BENEFITS
Price Differentiation Factor
EXPERIENTIAL APPROACH TO BRANDING
Physical Consumption Physiological Experience
Application- Based Consumption
Non – Reality Consumption
Risk- Free Consumption
Well- Being Experience
• Informed and Savvy Customers (Trust mark & Emotional connect) • Brand Proliferation • Media Fragmentation • Sophisticated and Increased Competition. • Decreasing Brand Loyalty. • Growth of Private Labels. • Increasing Trade Power • Focus on Promotions. • Stress on Advertising Expenditure. • Short- Term Performance Orientation.
VIRGIN - BRAND IDENTITY Brand Essence - Non- Conformist/ Unconventional
• • • • Core Identity - Consistent best- of-category quality delivered with humor and flair Innovation - First with truly innovative, value - added features and services Fun & Entertainment - A fun and entertaining company Value for money - Value in all offerings, not just the high price option.
• • • Underdog Personality Symbol - Innovative & creative offers to counter established firms. - Flaunts rules, Humorous, Outrageous, Competent, Stylish. - CEO led perceived lifestyle approach, Virgin Script Logo.
• • • • Functional Benefits - Quality Value Offering with extras delivered with style. Emotional Benefits- Fun & good Times association, Attitude to serve the best. Self- Expressive Benefits - Be Outrageous against the norms. Relationship - Customers as fun companions.
• • • • • • •
Represents the brand position Communicates with external world. May change / reposition. Confined approach. IBM - Solutions for a small planet Dominos- Hungry Kya Nike - Just do it
• Represents the identity • Communicate & energize internal staff. • Timeless/ Long time proposition • Relevant across markets & products. • IBM - Magic you can trust • Dominos- Guaranteed Delivery • Nike - Excelling
BRAND SUCCESS TRAITS
Excel at Delivering benefits customers truly desire Stay Relevant Pricing Strategy - Customers’ perception of value.
Proper Positioning. Brand Consistency. Brand Portfolio and Hierarchy to be sensible. Build Brand equity on well coordinated marketing activities. Brand Managers awareness of what the brand means to customers. Provide proper and sustained brand support in the long run. Company to monitor the source of brand equity
Brands reduce the Risks in Product Decisions Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
CUSTOMER BASED BRAND EQUITY PYRAMID Relationships (What about you & me?) Resonance Response Judgment Feelings (What about you?) Meaning Performance Imagery (What are you/) Salience Identity (Who are you/) BRAND SCORECARD Your Brand Delivers Benefits Customers Desire Which Means Customer engagement Instance Starbucks Stays Relevant Elements of the Brand Gillette Price based on consumer’s perception of brand’s value Properly Positioned Consistent Product nature i.e. Premium Vs Household Staple P&G Conveys similarity with & Differences against competing brands Consistent Marketing Communications over time Visa Nike .
BRAND SCORECARD Your Brand Sensible fit in the Brand Portfolio Which Means Brands.ROCI Brand Scorecards . Integrated Marketing Managers understand Meanings Receive support Solidified Brand Identity Coke consumer’s different perceptions.ROI Discounted Cash Flows Tracking Studies Predictive Modeling . Gillette Consistent investment in brand awareness. Samsung & LG constantly Monitored brand equity management system. Disney MEASURING BRANDS THREE PATHS Customer –Based Brand Metrics Incremental Brand Sales Market Place Performance Data Branded Business Value Brand Valuation Attitudinal Data Hierarchy of Effects Marketing Mix Modeling . Banana Republic.Logical working Instance Gap. Old Navy.
Trade .P/E Ratio .Cost Structure .Market Share .Brand Contribution .Market Cap.Price Elasticities .Stock Price .Channel Support .Attachment .Risk Profile .Expansion Success .Product .Growth Potential .Communication .Clarity .Competitive Reactions .BRAND AWARENESS Brand Recognition Brand Recognition (At Point of Purchase) (At Point of Purchase) Plus Plus Brand Attitude Brand Attitude Informational Motivation Type Motivation Type (Negative Motivation ) Typical Product Categories ( Brands may Differ) • Aspirin • Light Beer • Detergent • Routine Industrial Products Brand Recall Brand Recall (prior to Purchase) (prior to Purchase) Transformational (Positive Motivation) LOW Involvement (Trial Experience Sufficient) Typical Product Categories ( Brands may Differ) • Candy/ Chocolates • Regular Beer • Fiction Novels Decision Decision Type Type HIGH Involvement (Search & Conviction required prior to purchase • Brand Loyal • Routinized Favorable brand switchers Typical Product Categories (Brand may Differ) • Vacations • Fashion Clothing • Cars • Corporate Image Typical Product Categories (Brands may Differ) • Microwave Oven • Insurance • Home Renovations • Mew Industrial Products • New Category Users • Experimental or Routinized other brand switchers • Other Brand Loyals BRAND VALUE CHAIN VALUE STAGES MARKETING PROGRAM INVESTMENT CUSTOMER MINDSET MARKET PERFORMANCE SHAREHOLDER VALUE .Association .Relevance .Attitudes .Customer Size & Profile .Consistency .Activity .Market Dynamics .Employee .Other .Profitability .Awareness . MULTIPLIER PROGRAM QUALITY MARKETPLACE CONDITIONS INVESTOR SENTIMENT .Distinctiveness .Price Premiums .
Classic. Two horse patch & Red pocket tag. Beliefs & Opinion. Hard Working. Rugged & Masculine Usage Imagery Appropriate for Outdoor Work & Casual Social Situations. Long Lasting & Durable. Functional Benefits High. Shrink-to-fit cotton fabric. Blue Collar. Independent & Universal. Strong. Symbolic Benefits Self. Brand Personality LEVI’S LEVI’ 501 Honest. Traditional.Confident & SelfAssurance Feeling Comfortable fit and Relaxed Wear Experiential Benefits Benefits Benefits BRAND HIERARCHY Nothing Else Beats It Does it Offer Me Something Better Than Others Can It Deliver Does it Offer Me Something Do I Know About It BONDING ADVANTAGE PERFORMANCE RELEVANCE PRESENCE Measures Consumer Attitudes. Product – Related Attributes Blue Denim. Approachable.LEVI’S – BRAND ATTRIBUTE & BENEFIT ASSOCIATION LEVI’ Attributes User Imagery Western. American. Button Fly. Defines the Five Levels of Brand Relationship . contemporary.Quality.
Charge for Activities you Perform – Service Business. THE IDEA IS NOT TO ‘SELL SOMETHING’.Experience Business.THREE LEVELS Installation Augmented Product Packaging Delivery and Credit Brand Name CORE BENEFIT OR SERVICE Product Features AfterCore Sales Product Service Quality Actual Product Design Warranty EXPERIENCE ECONOMY Charge for the Stuff Charge for Tangible Things . .Commodity Business. BUT TO DEMONSTRATE HOW A BRAND CAN ‘ENRICH A CUSTOMER’S LIFE’. – Good Business. Charge for time spent by consumers with you .PRODUCT .
• DIFFERENTIATED VS ALTERNATIVE OPTIONS – Customer buys competing offer. Deliver Benefits. VALUE PROPOSITION – A PROMISE • PROMISE – – An anticipation of VALUE – Set of Promises to target. Economic. Emotional. . VALUE PROPOSITION SHOULD : Solve Consumer Problem. Instinct or guesswork to be avoided). – Competing with yourself ( advanced/ new version sale) • PROMISE EVIDENCE – Physical – Testimonial – Third Party Endorsement. Improve their situation / Impact them Enrich lives. • BENEFITS – Functional.VALUE PROPOSITION Short Specific ( relate to customer) Customer’s Language By the seat of the pants ( Use experience. – Status Quo that customer does not buy at all/ defers. differentiated against Competing simi lar offers backed up by reason to believe.
High Involvement – Invest time & effort . Wide availability. o Different customers may place same product in different classes. Shopping Goods – More Planned and compared. low risk perception. managing ‘me.PRODUCT CLASSIFICATION BASIS The Nature of Consumer Buying Behavior Consumer Goods – Frequently purchased without much deliberations. high risk perception Type of Benefit Functional/ Utilitarian Benefit – Logical. PRODUCT POLICY DECISIONS Product Attributes or Features ? Preferred Trade-off between Product Development Costs Vs Consumer Value delivered ? Post successful product launch.too’ products ? Structure of its New Product Development pipeline ? Preferred Product Mix composition ? Product line/ Brand Extension types? Avoid Brand Dilution ? Product offering prune ? Product line trade down thru cheaper version offer of current pr oduct ? . o Brands in same category may position product at opposite side of spectrum. Specialty Goods – Select Outlets. Inelastic demand with little or no comparison. Involvement Level in Purchase Process Low Involvement – Little deliberations. Rational advantage. Emotional Benefit – Ego Expressive need.
Test equipment. & nutritional labeling. Electronic Eqpt Performance quality. Co-branding. Benefits e. usage m ethods & safety. & expiry. place.Features & Design. . Electronic Equipment need service to support the sale. Tetra Pack with UHT technology for juices are consistent with adverts. Cars. defect free.Audio & video eqpt. Watches. . • Product Support Services : Part of the complete offer to augment the product. Watches. Life Saving eqpt. • Packaging : Primary & Secondary container to protect & market the product as well. Brand sponsor options while the product is launched.Conformance quality i. Line Extension & Brand Extension. Does it need redesigning. open dating( shelf life).e. • Branding : Important part of the product that adds value.g. Computers. Braun)to be competitive. Create sustained competitive advantage thru augmentation.contents. Whether product ideally suited to satisfy the need. Monitor customer satisfaction experience. States unit pricing.Design (Gillette. • Labeling : From Simple tags to complex graphics Identifies maker. Cars. cars. Quality. Cars.PRODUCT DECISIONS • Product Attributes : Define prod. Cell phones. pricing & distribution. PRODUCT POLICY DECISIONS Recognize core customer need intended to satisfy. computers Features to add value & relevance. date of mfr. . Multi brands & New Brands.
POSITIONING POSITIONING MARKET MIX FOR EACH TARGET SEGMENT MARKET POSITIONING POSITIONING TO EACH TARGET SEGMENT SELECT ONE OR MORE SEGMENTS TO ENTER MARKET TARGETING EVALUATE SEGMENT ATTRACTIVENESS EVOLVE SEGMENT PROFILES MARKET SEGMENTATION IDENTIFY SEGMENTATION BASIS POSITIONING STRATEGIES • POSITIONING BY ATTRIBUTE : POSITIONING BY PRICE /QUALITY: POSITIONING BASED ON USE OR APPLICATION : POSITIONING BY PRODUCT USER : POSITIONING BY PRODUCT CLASS: POSITIONING AGAINST COMPETITOR : .
POSITIONING PREMIUM PRODUCTS • • • • • • • • PRODUCT FEATURES PERFORMANCE QUALITY PRODUCT EXCLUSIVITY & STYLE PRODUCT DESIG SERVICE QUALITY PEOPLE QUALITY PACKAGING QUALITY IMAGE QUALITY PRODUCT FAILURES • INCORRECT POSITIONING : • IMPROPER PRICING : • PRODUCT DESIGN FAILURE • UNDERESTIMATING COMPETITION • OVERESTIMATING MARKET SIZE • LACK OF GENUINE SUPERIORITY • LACK OF DISTRIBUTION SUPPORT .
effective & affordable marketing strategy Business Analysis Products meets the profit goal? CATEGORIES OF NEW PRODUCTS New to the world products New product lines Additions to existing product lines Improvements & revisions of existing products Repositioning Cost reductions . A technically & commercially Viable product Yes Concept Dev. & Testing Good concept that consumers may try Marketing Strategy Dev. strategies & Resources Commercialization Are product sales Yes Meeting expectations Market Testing Have product Sales met Expectations? No Modify product or Mktg.NEW PRODUCT DEVELOPMENT DECISION PROCESS Idea Generation Is it worth Considering Idea Screening Idea compatibility with objectives. Cost. program No Send back to product Dev. Product Dev.
usage & repurchase. o More the options. Compatibility o Congruence with lifestyle & Values of potential users. better & earlier the adoption. marketing programs & markets. Product creating new categories/ with novel features need test. Time pressure & resea rch cost. quicker the adoption. High value cosmetics avoid test market. o More the complexity. potential buyers.Demonstrators at dept.INNOVATION ADOPTION CHARACTERISTICS Relative Advantage o Superiority over existing products. Modified products ( imitative) may avoid. o Interest & curiosity for potential users. Valuable info on dealers. Divisibility o Trial ability on small quantity/ limited basis. MARKET TESTING New product introduced into authentic setting. longer the adoption process. . Consumer & Dealer reaction to handling. Complexity o Degree user friendliness. Communicability o Benefits are observably or describable to others. o Greater the degree. stores. High Investment – High Risk Products with failure risk Test Influenced by Investment cost & risk.
All customers not representational target market.TEST MARKETING – BUSINESS GOODS • Expensive / New Technology Products – Alpha Testing ( Inside Org. Ask for purchase intention. • New Industrial Products – Introduce at Trade Shows • Buyer interests recorded. Valuable preference & pricing info in selling atmosphere.) & Beta Testing ( Consumers) – Beta Testing • • • • • • Small numbers of test customers invited. Exposes unforeseen issues on safety/ servicing etc. Observe customer value addition for pricing clues. – Distributor & Dealer Showrooms • • • • Place adjacent to own products/ competitor products. Observe test consumers usage pattern. Ability to handle orders placed. Value Innovating: Four Basic Questions Reduce What factors should be reduced well below the industry standard? Eliminate What factors should be eliminated that the industry has taken for granted? Create Value Innovation What factors should be created that the industry has never offered? What factors should be raised well beyond the industry standard? Raise . Seek test reactions. if any. • Purchase intentions & order placements. • Reaction to features and terms.
debugged product can backfire. Ascertain true market size. Cost of communication media. o A non. o Leadership position. Lesser education effort. Criteria to choose rollout markets VALUE CREATION & DELIVERY Choose The Value Customer Segmentation Market Selection / Focus Value Positioning Strategic Marketing Provide The Value Product Development Service Development Pricing Sourcing Making Distributing Servicing Communicate The Value Sales Force Sales Promotion Tactical Marketing Advertising . Late Entry o o o o Delay launch till competitor entry. firm up distributors & customers.MARKET ENTRY TIMING Market entry on commercialization with three options : First Entry o Enjoys ‘first mover’ advantage. Competitive penetration Influence of this area on other areas. Faults rectified. Parallel Entry o Coincide with competitor entry. o Better interest & enthusiasm in the market . Cost of filling pipeline. Market Potential. Local reputation of the co.
BREAKTHROUGH VS INCREMENTAL Breakthrough Now-to-the-world Performance Features Huge advance in performance Dramatic cost reduction Incremental .Targeted to existing or Adjacent Markets Marketer’s Key Responsibilities - Envision the Market Create Demand Educate the Market .Accommodate Current Demand PRODUCT DEVELOPMENT FUNNEL Customer Needs Concept Generation and Selection Product Design Prototyping and Testing Pilot Production Manufacturing Ramp Up and Release Technological Possibilities .Listen to the Existing Market .Lower Risk - Expensive .Less Expensive - Targeted to New or Existing Markets .Improvement in existing product .Derivative of existing product platform .Exploits existing forms of technology - High Risk .
Launch Business Analysis Post Implementation Review Idea G1 S1 G2 S2 G3 S3 G4 S4 G5 S5 PIR Ideation Preliminary Detailed Development Investigation Investigation (Build Business Case) Testing & Full Validation Production Market Launch .CREATING PROJECT PLANS PROCESS CHANGES PRODUCT CHANGES New Core Process Next Gen Upgrade Tuning/ Incremental New Core Product BREAKTHROUGH Next Gen Product PLATFORM Addition to Product Family Add – ons and Enhancements DERIVATIVES STAGE – GATE MODEL Initial Screen Second Screen Decision on Business Case PostDevelopment Review Pre.
semantics.g. What is a Concept Concept Positioning Statement to answer ‘Who’. distributors etc) Management commitment for investment.PRODUCT CONCEPT GENERATION Translating Customer Needs into Product Features: Customer vocabulary of ‘comfort’. reliability. Positioning. its me aning to customers. Assign metrics for ‘Q F D’ to co-relate among attributes. Product Integrity Extent to which the totality of the product achieves the balance ( Basic functions. Configuration. Product Architecture product changes e. Communicate an Idea ( company. Arrangement & fitment of parts. how will it serve customers. Horsepower etc. Customer feedback assimilation User comfort. add. Varieties desired Performance Levels to be achieved PROTYPING Types of Tests Performed on Prototypes: – Technical Performance Evaluation ( Engineering) – Esthetic features ( Marketing & Industrial Designers) Overall Objectives : Test the feasibility of a concept Physical / Analytical modeling. & economy) and att racts and satisfies customers. ‘What’ and “How’. sturdiness. cost factors. Concept Description as – Speed. Drawings & Models about the performance & Technical featur es. packing. ‘reliable’ ‘ safe’ etc. motor sounds. who they are. suppliers. replacing. insu lations.= Differentiation ( What +How) + Segmentation ( For Whom) Text. wear and tear. Preliminary Specifications may be modified.ons. .. esthetics. Size. upgrade.
design. distribution executed for the right customer at the right time and right pric e. positioning. . .Pilot Production and Launch Pilot Production : Test readiness to ship including assembly. Reaching these segments – Existing Channel Capability & Cost . test. Molds. Manufacturing.PRODUCT DEV MARKETER’ Market Size and probability of acceptance in specific segments.g. MARKETER’S ROLE . Launch : Target segment. operational procedures. Competition profiling. Answers entered into Business Analysis & Revenue . Establishment of basic processes of manufacture.Cost Projections. machines etc to support any anticipated need levels. shipping etc involved. suppliers. Articulation of the value proposition of the new product. first year. Identifying specific customer requirement & How rapidly they cha nge Price Range acceptability to the market. Ramp Up : Develop capability to produce volumes e. product & service combination.
MATCHING DEVELOPMENT PROCESS WITH PRODUCT TYPE Crash Program High Speed at Which Market Window is Closing (Opportunity Cost) Low Low Degree of Technical Innovation Required ( Development Risk) Most Challenging 100 % Right High NEW PRODUCT TYPES Mismatch Breakthrough B re ak Incremental In u ro th gh thr o Su pp lie r’ ug h Inc rem Mismatch cr l ta en m e sP er c ep tio n en ta l ea Br k s Cu m to ’s er pe t ep rc n io .
PRODUCT MIX 1 PRODUCT LINE PRICING: 2 OPTIONAL -PRODUCT PRICING : 3 CAPTIVE -PRODUCT PRICING : 4 BYPRODUCT PRICING : 5 PRODUCT BUNDLE PRICING : STRATEGIES TO ADJUST PRICE 1 DISCOUNT & ALLOWANCE PRICING 2 SEGMENT PRICING 3 PSYCHOLOGICAL PRICING 4 PROMOTIONAL PRICING .PRICING STRATEGY .
REACTION TO COMPETITOR PRICE CHANGES .NEW PRODUCT PRICING A IMITATIVE NEW PRODUCT ( Quality & Price Conscious Buyer Category) High PRICE Low High Premium Good Value QUALITY Over Charging Economy Low PRICE ALTERATIONS 1 PRICE CUTS : 2 PRICE INCREASES 3 BUYER REACTIONS 4 COMPETITOR REACTION 5.
COGS at Lower end. Objective Value Marketing Perceived Value Substitute Pricing Product Price Firm’s Incentive to Sell =( Price – COGS) Cost of Goods Sold Rupee 0 Efforts Consumer’s Incentive to Buy =( Perceived Value.Price) .PRICING THERMOMETER Optimal Pricing Perceived Value at Upper end. mix & substitute products.PRICE CHANGE METHODS To reduce customer sensitivity to price: • OFFER QUALITY PERCEPTION • OFFER LINE EXTENSIONS • UNBUNDLING • OPPORTUNITY PRICING • REPOSITIONING • DISCOUNT REDUCTIONS VALUE . Influenced by TEV by mktg.
increased price/standard – higher margins if competitors do not value follow/risk of losing market share.Hybrid – low cost base and reinvestment in low price and differentiation Option four – Differentiation – (a) without a price premium • • perceived added value by user. Option three . yielding market share benefits perceived added value sufficient to bear price premium – (b) with a price premium • • • • Option five .focused differentiation – perceived added value to a 'particular segment' warranting a pre mium price Option six . Option seven .low price/low added value – likely to be segment specific • • • Option two .Are Products differentiated in any way or merely cost basis Competitive Scope – Does the co.low value/standard price – loss of market share .increased price/low values – only feasible in a monopoly situation Option eight .low price – risk of price war and low margins / need to be a 'cost leader '.PORTER’S GENERIC STRATEGIES COMPETITIVE ADVANTAGE Low Cost SCOPE Higher Cost Broad Overall Cost Leadership Differentiation COMPETITIVE Narrow Cost Focus Differentiation Focus Competitive Advantage . target a wide / narrow market Competitive Advantage – (Cost or Differentiation Advantage ) BOWMAN’S CLOCK • Option one .
Watch Fine Print : Detailed check for quantity/ weight. Bulk Buy: Stock up select product at current prices. Substitution: Trading in petrol vehicle for a diesel.INFALTION Down Trade : Shift to regular petrol. More Demanding : Negotiate hard deals .PRICE POLICY . Package size alterations. .INFLATION Systematic Discounting Promote Multi Unit Buying Improve Efficiency Pass on Costs when justified Detest Trimming Marketing Spends CONSUMER REACTIONS.
Sexy. Influential . No-Nonsense. . Efficient. Pretentious. Active. Athletic. High pricing of life saving drugs. Gentle. o Successful : Leader. Pricing to Undermine Competition : Predatory Pricing : Price Fixing: Price Maintenance: Pricing Principles be subjected to ethical review and an informe d legal review within company prior to implementation . Corporate. o RUGGEDNESS o Outdoorsy : Masculine. Not seeking advantage by unfair me ans. o Intelligent : Technical. Smooth. o Tough : Rugged. Trustworthy. Confident. Serious. Secure. Strong.LEGAL / ETHICAL ISSUES Differential Pricing: Better only when value added. MEASURING BRAND PERSONALITY MEASURING BRAND PERSONALITY o COMPETENCE o Reliable : Hardworking. o SOPHISTICATION o Upper Class : Glamorous.Looking. o Charming: Feminine. Careful. Good. Western. Sophisticated.
Provocative.Uses . Classic.Local Vs Global -Visual Imagery and Metaphors -Brand Heritage . Surprising. Ethical. Lively.Product attributes . o Cheerful : Sentimental. Off. Contemporary. o Up-To-Date : Independent. Artistic.Personality . Flashy.Brand Relationships . Happy. DIMENSIONS – BRAND IDENTITY DIMENSIONS – BRAND IDENTITY BRAND IDENTITY BRAND AS A PRODUCT BRAND AS AN ORGANIZATION BRAND AS A SYMBOL BRAND AS A PERSON .Organizational Attributes . Small Town. Caring.Quality/ Value .MEASURING BRAND PERSONALITY MEASURING BRAND PERSONALITY o SINCERITY o Down –to-Earth : Family Oriented. Adventurous.Trustworthy . . o EXCITEMENT o Daring : Trendy. o Imaginative : Unique. o Wholesome : Original. Friendly. Ageless.Users .Genuine customer concern . OldFashioned. Warm. Aggresive. Thoughtful. Genuine. Outgoing. Blue Collar. Innovative. o Spirited : Cool. Exciting. Real. Conventional.Country of Origin .Innovation.Beat. Fun. Young. Humorous. o Honest : sincere.Product Scope .
DEVELOP BRAND PERSONALITY ◊ SELF. ( Colgate – Dependability. ( Benz owner – Elite with the best car. ( Coke reflects youthful values for both young & old) What the consumer thinks of himself. Tractor Emulsion Paint .EXPRESSION ◊ RELATIONSHIP ◊ FUNCTIONAL BENEFIT BRAND IDENTITY PRISM – SIX FACES ∆ PHYSIQUE The Basis of the brand.Upper Class Look ) ∆ PERSONALITY – ∆ CULTURE - ∆ RELATIONSHIP – ∆ REFLECTION – ∆ SELF. Germany for Precision Engineering. Japan for Consumer electronics) Handshake between brand & consumer. Saffola – Safety) Consumer perception of what the brand stands for. ICICI is Trust) What happens when brand becomes a person.IMAGE - . ( Philips is Technology & Reliability .APPROACHES . Strong Ambuja) Organizational Symbols. ( Macho Marlboro. Country of Origin & Values ( Balsara & Dabur for Traditional Remedies.
CHECKLIST BRAND POSITIONING CHECKLIST • Relevant? • Believable? • Ahead of trend? • Defensible? • Deliverable? BRAND ARCHITECTURE • All Brands • All Sub-brands Brand Portfolio Portfolio Roles • • • • Strategic Brands Linchpin Brands Silver Bullets Cash Cow Brands Product – Market Context Roles • • • • Endorser/ Sub. Association & Efficiency Clarity of Leveraged Offerings Brand Assets Platforms for future growth options .BRAND POSITIONING -.brands Benefit Brands Co – Brands Driver Roles Brand Architecture Brand Portfolio Structure • Brand Groupings • Brand Hierarchy Trees • Brand Range Portfolio Graphics • Logo • Visual Presentation Powerful Brands Optimal Allocation of Brand Building Resources Synergy in creating Visibility.
BENEFITS FEATURES AND ATTRIBUTES Easiest to deliver. Spiritual& Cultural Values being Addressed BELIEFS AND VALUES The Functional or Emotional Benefits provided to customers Features or Processes that must be demonstrated to customers. Hardest to deliver The Emotional. but least meaningful and most easily imitated PRINCIPLES TO DEVELOP BRAND PROMISE PRINCIPLES TO DEVELOP BRAND PROMISE • Understand the Promise from the customer perspective • Translation of Promises into Standards • Fulfill good promises or risk brand damage • Mend bad promises instantly .BRAND VALUE PYRAMID Most Meaningful and most difficult to imitate.
branding Marketing venture with another brand Create a Range brand Stretching Up Stretching Down BRAND HIERARCHY – COLGATE ORAL CARE PRODUCTS COLGATE COLGATE COLGATE TOOTHPASTE COLGATE TOOTHBRUSH COLGATE DENTAL FLOSS COLGATE MOUTHWASH COLGATE FLUORIDE TABLETS PLUS PRECISION CLASSIC YOUTH COLOR CHANGE DIAMOND HEAD ‘THE WILD ONES’ .LEVERAGING THE BRAND LEVERAGING THE BRAND LEVERAGING THE BRAND Line Extensions In the existing product class Brand Extensions In a different product class Vertical Stretch of the brand In the existing product class Co.
BRAND EXTENSION -. • Consumer variety options. • Reduces introduction costs. • Positive associations evoked thru the extensions • Negative associations not transferred • Negative associations not created by the extension . • Packaging and labeling efficiencies. • Reduces developmental cost of new brand. • Reduces customer risk perception • Increases probability of gaining distribution and trial. CUSTOMER EVALUATION OF EXTENSIONS CUSTOMER EVALUATION OF EXTENSIONS • Parent brand awareness & positive association in memory.ADVANTAGES BRAND EXTENSION ADVANTAGES • Brand image improvement. • Increases efficiency of promotional expenditure.
LINE EXTENSION LINE EXTENSION ◊ EXPANDS USER BASE : ◊ PROVIDES VARIETY : ◊ ENERGIZES A BRAND : ◊ INHIBIT COMPETITION : ◊ MANAGE TRUE INNOVATION : LINE EXTENSIONS LINE EXTENSIONS • • • • • • • Customer Segmentation Consumer Desires Pricing Breadth Excess Capacity Short – Term gains Competitive Intensity Trade Pressure .
ISSUES LINE EXTENSIONS ISSUES • Weakens Line Strength • Weaken Brand Loyalty • Stagnant Category Demand • Trade Relations Weaken • Increased Costs EXTENSION EVALUATION BASIS EXTENSION EVALUATION BASIS Brand Concept Resources Fit EXTENSION Relevance Customer Needs Sustainable Advantage Competition .LINE EXTENSIONS -.
CO -. .Branding Co• Image Reinforcement • Composite Brands or Bundling of Brands • Sales Promotions • New product Launches BRAND STRATEGY DIMENSIONS BRAND STRATEGY DIMENSIONS CUSTOMER ANALYSIS • Trends • Motivation • Segments • Unmet Needs COMPETITOR ANALYSIS • Brand Image • Strengths • Weaknesses Strategic Brand Analysis SELF ANALYSIS • Existing Brand Image • Brand Heritage • Strengths/ Weaknesses • Brand Soul • Links to Other Brands.BRANDING CO BRANDING • Usage extension • Ingredient Co.
Presence / Success .Local Vs Global VALUE PROPOSITION OR CUSTOMER RELATIONSHIP CREDIBILITY • Expert • Trustworthy • Likeable INTERNAL CULTURE • Clarity • Buy – In .Concern for Customers .LEVERAGES OF BRAND PROFITABILITY CORPORATE RESOURCES INVESTMENTS Productivity.Environmentally Sensitive .À.Perceived Quality . Image. Liking & Familiarity MARKET • Involvement • Price sensitivity • Buying Criteria PERCEIVED VALUE VIS.Community Orientation . R&D Know How & Patents Level of Objective Quality Cost of Quality COMPETITION • Other Brands • DOB’s • Hard Discount MARKETING INVESTMENTS Forecasting Changes of Consumer Values & Lifestyle Brand Relevance and Adaptation to Present Market DISTRIBUTION INVESTMENTS Proximity.Innovative . Availability and Communications Brand Awareness.VIS COMPETITION SUSTAINABLE PRICE PREMIUM LEVEL INCREMENTAL ATTRACTION & ROYALTY COST ADVANTAGE DUE TO MARKET LEADERSHIP EXTENDED BRAND EQUITY BEYOND IT’S MARKET ORGANIZATIONAL ASSOCIATION THE ORGANIZATION • Culture/ Values • • • • People Programs Assets /Skills Visibility ORGANIZATIONAL ASSOCIATIONS .
TERMS BRAND HIERARCHY TERMS Range Brands Product Line Brand Umbrella Brand Source Brand Endorser Brand BRAND HIERARCHY.BRAND HIERARCHY -.TERMS BRAND HIERARCHY.TERMS Family Brand Sub Brands Modifier Flanker Brand Product Features/ Services .
HIERARCHY GUIDELINES HIERARCHY GUIDELINES • Principle of Simplicity : • Principle of Relevance : • Principle of Differentiation • Principle of Prominence • Principle of Commonality BRAND ROLES BRAND ROLES ENDORSER ENDORSER STRATEGIC STRATEGIC BRANDS BRANDS SUB BRAND ROLES SUB BRAND ROLES DRIVER DRIVER BRAND BRAND ROLES ROLES ••Describe Offerings Describe Offerings ••Structure & Clarify Offerings Structure & Clarify Offerings ••Augment/ Modify Brand ID Augment/ Modify Brand ID ••Exploit Mkt Opportunities Exploit Mkt Opportunities ••Support Extensions Support Extensions SILVER SILVER BULLETS BULLETS BRANDED BENEFITS BRANDED BENEFITS ••Features Features ••Components Components ••Service Programs Service Programs .
CHALLENGES Protect perceived quality associations.BRANDS Distinguishes part of the product line with the brand system Supports the parent brand identity. • Sub Brands: Insulate parent brand even with lower quality • Price Lowering: Price oriented competition & retail power .SUB . Unfavorable information influences perception. and adds value thru : • DESCRIBE OFFERINGS • STRUCTURE & CLASSIFY OPTIONS • AUGMENT / MODIFY IDENTITY THRU ASSOCIATION CHANGE • EXPLOIT MARKET OPPORTUNITIES • SUPPORTS VERTICAL & HORIZONTAL EXTENSION STRETCHING DOWN .
• Lesser versions as options. • Challenge – Accommodate downscale versions not weaken the brand.BRAND– STRETCHING DOWN • Preference for low.cost brand with quality and features. New Competitors and Static Market Emerging Retail Scenario Technological Changes .
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