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EXECUTIVE SUMMARY ―What‘s in a name?

A rose is a rose and would smell as sweet even if called by any other name‖ These famous words uttered by Shakespeare‘s Juliet sends us into raptures, but marketers and consumers would not respond to this reasoning favorably. Brands rule over the marketer and consumers‘ minds. Enormous resources, time and energy are spent in building and nurturing brands. Why? A brand distinguishes the products and services offered by one seller from another. A company may be armed with all the statistics and facts as to why their product or service is superior - but if it doesn‘t have an image, a personality for the audience to connect with - their message falls flat. What you are selling is always more than the product/service. It's a personality, a face with which your target customers want to do business. Thus, the success of branding lies in truly understanding who you are and who your target audience is. The cigarette brand Charms‘ pack has a unique indigo blue print, like faded jeans fabric. The package design was intended to strike a cord with young customers who identified with ‗freedom‘, because jeans symbolized freedom. Marketers use ―slender tall‖ bottles to communicate feminine qualities. What is an athletic shoe with a ‗swoosh‘ logo on it? ‗Swoosh‘ is a concept- it is all about winning and action. Brands create a perception in the mind of the customer that there is no other product or service on the market that is quite like yours. A brand promises to deliver value upon which consumers and prospective purchasers can rely to be consistent over long periods of time.

CHAPTER .1 Introduction to Brand Building
Branding today is a blend of art and science and the topic is of interest to both academics and practitioners. Huge amount of money is being spent by marketers to develop brands, with a conviction that brand building, will create brand differentiation. While the intrinsic value with regard to functionality, is created by the marketer through the offering, consumer psyche plays a vital role with regard to short and long term effects of brand associations. Besides brand associations, cultural dimensions plays an important role with regard to both branding associations and how consumer’s mind adapts to the development of brand associations.

2010 Ranking 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Brands Nokia Mobile Phones Colgate Lux Dettol Britannia Lifebouy Clinic Plus Pond’s Fair & Lovely Pepsodent 2009 Ranking 1. 2. 3. 5. 9. 4. 15. 16. 18. 8.

Why do companies such as Coca-Cola, Microsoft, IBM and Disney seem to achieve global marketing success so easily? Why does it seem such an effort for others? Why do we, as consumers, feel loyal to such brands that the mere sight of their logo has us reaching into our pockets to buy their products?

1.1 The meaning of brands
Brands are a means of differentiating a company’s products and services from those of its competitors. There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important. Macdonald sums this up nicely in the following quote emphasising the importance of brands: “…it is not factories that make profits, but relationships with customers, and it is company and brand names which secure those relationships” Businesses that invest in and sustain leading brands prosper whereas those that fail are left to fight for the lower profits available in commodity markets. A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the descriptive verbal attributes and concrete symbols such as a name, logo, slogan, and design scheme that convey the essence of a company, product or

service. Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary. A brand is a symbolic embodiment of all the information connected to a company, product or service. A brand serves to create associations and expectations among products made by a producer. A brand often includes an explicit logo, fonts, color schemes, symbols and sound which may be developed to represent implicit values, ideas, and even personality. The key objective is to create a relationship of trust. The brand, and "branding" and brand equity have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies". rather than product and services (e.g. political parties or religious organizations) may also be known as "branding".

One definition of a brand is as follows: “A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors”. Interbrand - a leading branding consultancy - define a brand in this way: “A mixture of tangible and intangible attributes symbolised in a trademark, which, if properly managed, creates influence and generates value”. Three other important terms relating to brands should be defined at this stage: Brand equity “Brand equity” refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other “intangible” assets such as patents,

trademarks and channel relationships. Brand image “Brand image” refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off. Brand extension “Brand extension” refers to the use of a successful brand name to launch a new or modified product in a new market. Virgin is perhaps the best example of how brand extension can be applied into quite diverse and distinct markets.

1.2 Brands and products
Brands are rarely developed in isolation. They normally fall within a business’ product line or product group. A product line is a group of brands that are closely related in terms of their functions and the benefits they provide. A good example would be the range of desktop and laptop computers manufactured by Dell. A product mix relates to the total set of brands marketed by a business. A product mix could, therefore, contain several or many product lines. The width of the product mix can be measured by the number of product lines that a business offers.

1.3 Types of brand
There are two main types of brand – manufacturer brands and own-label brands. Manufacturer brands Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer loyalty (think about the manufacturer brands that you feel “loyal” to). Own label brands Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as “distributors”. Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands. The major supermarkets (e.g. Tesco, Asda, Sainsbury’s) are excellent examples of this. Own-label branding – if well carried out – can often offer the consumer excellent value for money and provide the distributor with additional bargaining power when it comes to

negotiating prices and terms with manufacturer brands.

BUILDING BRAND’S : What factors are important in building brand values? Professor David Jobber identifies seven main factors in building successful brands, as illustrated in the diagram below :

QUALITY Quality is a vital ingredient of a good brand. Remember the ―core benefits‖— the things consumer expect. These must be delivered well, consistently. The Branded washing machine that leaks, or the training shoe that often falls apart when wet will never develop brand equity. Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability that their inferior competitors.

Competitors — drawn to the high growth and profit potential demonstrated by the ―market-mover‖ — will enter the market and copy the best elements of the leader‘ s brand (a good example is the way that Body Shop developed the ―ethical‖ personal care market but were soon facing stiff competition from the major high street cosmetics retailers. Communication Communications also play a key role in building a successful brand. In terms of brand development. FIRST MOVER ADVANTAGE Business Strategies often talk about first-mover advantage. We suggested that brand positioning is essentially about customer perceptions — with the objective to build a clearly defined position in the minds of the target audience. packaging and the way in which it is delivered. successful positioning usually requires a combination of these things. product guarantees. service standards. REPOSITIONING Repositioning occurs when a brand tries to change its market position to reflect a change in consumer‘s tastes. defined the markets they operate in and continue to lead. There is plenty of evidence to support this. Another would be the changing styles of entertainers with above-average longevity such as Kylie Minogue and Cliff Richard. This is often required when a brand has become tired. However. perhaps because its original market has matured or has gone into decline. often unique position in the target market. Strong brands have a clear. then to develop the brand personality and reinforce the perception. Coca Cola and Sellotape that. in many ways. by ―first-move?‘ they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. Initially. The repositioning of the ¡Jççg4de brand from a sweet drink for children to a leading sports drink is one example. Positioning can be achieved through several means. image. All elements of the promotional mix need to be used to develop and sustain customer perceptions. Infact .POSITIONING Positioning is about the position a brand occupies in a market in the minds of consumers. the challenge is to build awareness. including brand name. . Think of some leading consumer product brands like Gillette. being first into a market does not necessarily guarantee long-term success.

By this we mean that the whole business should understand the brand values and positioning. The two options for doing this are usually called ―brand extension‖ and ―brand stretching‖ BRAND EXTENSION 1. hotel and retail sectors. For example. 4. BRAND STRETCHING Brand stretching refers to the use of an established brand name for products in unrelated markets. It is likely that your favourite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty. ( those that have brand equity )have the potential to work their magic on other products. Theçq4çbrandhas undergone a very successful brand extension from children‘s health drink to an energy drink and sports drink. A successful brand helps a company enter new product categories more easily. Brand extension refers to the use of a successful brand name to launch a new or modifying product in a same broad market. Think of the brands that you value in the restaurant. Building customer awareness. important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. INTERNAL MARKETING Finally. Fairy (owned by Unilever) was extended from a washing up liquid brand to become a washing powder brand too. . This means that management must ―invest‖ in a brand. perhaps at the expense of short-term profitability.LONG TERM PERSPECTIVE This leads onto another important factor in brand-building: the need to invest in the brand over the long-term. 3. management should ensure that the brand is marketed ―internally‖ as well as externally. communicating the brand‘s message ad creating customer loyalty takes time. BRAND EXTENSION AND BRAND STRETCHING: Marketers have long recognised that strong brand names that deliver higher sales and profits. 2.

All products have a series of ―core benefits‖ — benefits that are delivered to all consumers. When done successfully. The new product will attract quicker customer awareness and willingness to trial or sample the product 4. pianos and sports equipment. 3. They will be more likely to trust the new product. A brand is created by augmenting a core product with distinctive values that distinguish it from the competition. If a new food product carries the Heinz brand.For example the move by Yamaha (originally a Japanese manufacturer of motorbikes) into branded hi-fi equipment. it is likely that customers will buy it 2. For example: 1. Watches tell the time 2. CD-players play CD‘s 3. Garages dispense petrol. Customer loyalty Businesses that operate successful brands are also much more likely to enjoy higher profits. Toothpaste helps prevent tooth decay 4. brand extension can have several advantages: 1. Promotional Launch costs (particularly advertising) are likely to be substantially lower. WHY SHOULD BUSSINESS TRY TO BUILD THEIR BRANDS? There are many advantages to businesses that build successful brands. . Consumers are rarely prepared to pay a premium for products or services that simply deliver core benefits — they are the expected elements of that justify a core price. Customers will associate the quality of the established brand name with the new product. Higher prices 2. Higher profit margins 3. This is the process of creating and value. Better distribution 4. These include: 1. Distributors may perceive there is less risk with a new product if it carries a familiar brand name.

These added values enable the brand to differentiate itself from the competition. Alternatively.Successful brands are those that deliver added value in addition to the core benefits. Porsche or Timberland do this. Sony or Microsoft can offer this reassurance or guarantee. When done well. A brand can usefully be represented in the classic ―fried-egg‖ format shown below. where the brand is shown to have core features that are surrounded (or ―augmented‖) by less tangible features. . like Mercedes. the customer recognizes the added value in an augmented product and chooses that brand in preference. For example. the consumer may be looking for the brand to add meaning to his or her life in terms of lifestyle or personal image. a consumer may be looking for reassurance or a guarantee of quality in a situation where he or she is unsure about what to buy.

iv. vi.Event marketing: Many automobile companies make an event out of introducing their new car models. knowledge & interest. v. vii.Social cause marketing: Brands can achieve a following by donating money to charitable causes. Public facilities: Perrier. dramas. Now. or a celebrity personality. They are busy on their computers or engaged in recreational activities.BRAND BUIDING TOOLS A common misconception is that brands are basically built by advertising. .Public relations & press releases: Brands can gain a lot of attention from well-placed newspapers & magazine stories.Clubs & consumer communities: Brands can form the center of a customer community. x. It is true that TV stations & people watched the comedies.Trade shows: trade show creates a great opportunity to built brand awareness.Factory visits: Hershey‘s & Cadbury‘s. Marketers are therefore turning to other tools for attracting attention to their brands. ii. can create positive affect for a brand. In fact many more are simply not watching TV.Founders or celebrity personality: A colorful founder. have built theme parks at their factories & they invite visitors to spend a day. ix. Ben & jerry‗s ice cream turns over 7% of its profits to charity.Sponsorship: Brands are frequently promoted in sponsored events such as world famous bicycle & car races . Among the most important are:i. such as Richard Branson. Examples include IKEA & southwest airlines. the bottled water company. & ads with almost equal interest. such as Harley-Davidson motorcycle owners or Bradford plate collectors. viewers may be watching one of the dozens of TV stations & many are zapping or ignoring the commercials. two candy companies. such as Michael Jordan.High value for the money: Some brand creates positive word of mouth by offering exceptional value for the money. etched its identity in the public parks to promote healthful lifestyles. iii. etc. viii.

CHAPTER. The live interaction process facilitates communication between the clients and the audience. Events have therefore also been termed as experiential marketing. . The following figure is the graphical representation of the above definition. specially gathered target audience by providing a complete sensual experience and an avenue for two-way interaction. The population of the target audience that the event is exposed to is called the reach for the event. It is evident from the model that an event is a package so organized as to provide. This process strengthens the possibilities of mutually beneficial transactions occurring in tune with the desired objectives for the event. reach and live interaction between the target audience and the client to achieve the desired impact. 2 BRAND BUILDING THROUGH EVENTS  A COMPREHENSIVE NEW DEFINITION An event is a live –multimedia package carried out with preconceived concepts. customized or modified to achieve the clients‘ objectives of reaching out and suitably influencing the sharply defined.

however. .HIERARCHY OF EVENTS The hierarchy of effects normally follows a gradual pattern: What makes it complicated. are the other competing communication: Therefore it is important to keep a healthy share of voice for the event-specific communication to achieve the desired objectives. or if there is any chance of an ambush marketer breaking-in. The need increases if there are multiple sponsors of the event.

target audience for the specific communication. An increase in off-take is normally the end result of any element of a marketing communication-mix. a] Brand awareness b] Creating excitement around the brand c] Association with the cause of the event to find acceptance within the TG d] Trial of the brand . and a measurable communication-objective. the short-term measurable objectives may vary. AN IDEAL EVENT-ASSOCIATION PROCESS: Objectives: This would include clarity on the marketing objective. However.

a brand so distinctively Indian. has been a part of our lives for nearly five decades now and still is able to touch a chord in our hearts. and has now become a critical success factor in the very existence and growth of a movement that started way back in the pre-independence India.3 Stories of Different Brands A Brand Story of Introduction Amul – The Taste of India.CHAPTER . . As a brand Amul has grown from being merely a differentiating factor to protect the interests of producers and consumers.

The difficulty in registration stemmed from the fact that the cooperative had to prove enough sales and advertisements before this common word could be established as a brand name of a dairy product. As an Indian name. could be substituted by AMUL. the brand Amul was registered only in 1957. an area in the Kaira district of Gujarat. Although not the Cooperative‘s true name it unmistakably conveyed the desired meaning. So the very basis of competition became high quality value-for-money products. It initially started a as means to balance the fluctuating milk supply and grew at a phenomenal rate as a liquid milk supplier. as a cooperative movement to empower the milk producers. It could also serve as an acronym for the organization – the unusable KDCMPUL (Kaira District Cooperative Milk Producer‘s Union Limited) taken from Kaira Cooperative‘s full name. However Polson‘s products were not the reason that led to the rise of Amul. standing for Anand Milk Union Limited. it was its exploitative practices that started the cooperative revolution. It was under such circumstances that the foundations of Amul were laid. The name Amul was most probably suggested by a quality control expert in Anand. It was derived from ”amulya”.The Genesis Amul sprung from the seeds sown in the black soil of Charotar. At that time Polson Dairy was the biggest buyer of the milk being produced in Kaira. and implies matchless excellence. The milk producers‘ cooperative formed in Gujarat was in response to the monopoly that existed since the time of colonial India. Gujarati and many other Indian languages. When the need of a brand name for the Kaira Cooperative was felt initially. The challenge that lay before the milk cooperative was not only to upstage Polson‘s monopoly on the supply side. the word was circulated in Anand (the birth place of Amul) among friends and cooperative members. The . ―Polson‖ was in fact a brand as synonymous with butter as ―Xerox‖ is with photocopy. However under the leadership of Verghese Kurien the brand name Amul was formally adopted. Polson indeed played the role of Goliath to Amul‘s David. it associated itself with pride in swadeshi goods. memorable and easily pronounced. Even though Amul products have been in use in millions of homes since 1946. For several years the Kaira cooperative supplied milk and allied products without a formal distribution network leave alone a brand name. which in Sanskrit. The Growth Era Amul came into being as a consequence of a revolution and it has continued to be revolutionary in every stage of its life. but also to capture the booming milk products market with a their own brand. means priceless. The beginning of the journey this brand embarked upon is itself quite unique and needs greater scrutiny. Polson was built on the basis of providing superior quality products to up-market consumers. a striking contrast to the English sound of Polson. The name was short.

539. As district unions multiplied. However by the 1950s it was amply clear that the future lay in manufactured dairy products. Amul added sweet buttermilk powder.86 billion litres. 100 crore which grew to Rs. There are other people too. Amul responded by embarking on a wide range of dairy processing activities. From her second floor flat she can see her neighbours on the road. Sheela Mane. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about.000 tonnes a year in 1997. The Amul Butter Girl The moppet who put Amul on India's breakfast table Edited from an article by Mini Varma published in The Asian Age on March 3. During 1966-1970.Kaira Union began pasteurizing milk for the Bombay Milk Scheme in 1948. involving new technologies. It challenged the established Polson brand in butter manufacturing. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. and then moved on to sweetened condensed milk in direct confrontation with the international giant Nestle. but widening the range. 1996 50 years after it was first launched. On all of these occasions Amul not only displayed feats of resilience but in fact came out much stronger than ever before. 2745. The crowd seems to be growing larger by the minute.70 crore.28 million producer members with a total milk collection in 2002-03 being 1. In 1974 the Amul Milk Chocolate was released commercially and was followed by several varieties of chocolates and chocolate confectionaries. Cheese powder was released commercially in the early 70s. a 28-year-old housewife is out in the balcony drying clothes. Kaira Cooperative recognized the benefits of a marketing federation and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973. In 1978-79 it registered a turnover of Rs. Mrs. Bombay: Summer of 1967. Amul realized it as early as late 1960s that the only way it could increase the share of the market was by maintaining the reasonable prices of its products. GCMMF commenced marketing on April 1. In 2002-03 the turnover stood at Rs. She expects the worst but can see no signs of an accident. No other brand comes even close to it. 1974 under the single brand name of Amul. a second brand of baby food (Amulspray) and a high protein weaning food (Balamul). Nutramul. Also. It is her four-year-old . a malted cocoa beverage was launched in 1976. At present GCMMF has 2. The success rate has been to the extent that GCMMF has now become India's largest food products marketing organization. and by expanding its processing facilities. It also locked horns with Glaxo over the production of baby food in India. Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25.67 crore in 1987-89.

" Call her the Friday to Friday star. "It was the first Amul hoarding that was put up in Mumbai. Round eyed. A Final Word Amul is an amazing and inspiring story of how a milk producers‘ cooperative movement created a brand so powerful that it has not only lasted for five decades but has grown into a giant in the food industry. winking at you. With roots well established in the domestic market Amul is all set to fight in the global arena. "People loved it. Complete List of Products Marketed under Amul Brand Breadspreads: • Amul Butter • Amul Lite Low Fat Breadspread • Amul Cooking Butter Cheese Range: • Amul Pasteurized Processed Cheddar Cheese • Amul Processed Cheese Spread • Amul Pizza (Mozarella) Cheese • Amul Shredded Pizza Cheese • Amul Emmental Cheese • Amul Gouda Cheese • Amul Malai Paneer (cottage cheese) Frozen and Tinned • Utterly Delicious Pizza Mithaee Range (Ethnic sweets): . dressed in her little polka dotted dress and a red and white bow. How often have we stopped. With the commitment it has shown in the past it will not be too long when Amul emerges a winner on all fronts.who draws her attention to the hoarding that has come up overnight. She is the Amul moppet everyone loves to love. shy Madhuri. It has risen from Indian soil and it remains Indian in every sense. I remember it was our favorite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation. holding out her favourite packet of butter. from strategically placed hoardings at many traffic lights. a bold sensuous Urmila or simply as herself. looked." recalls Sheela Mane. chubby cheeked. chuckled at the Amul hoarding that casts her sometime as the coy.

Chhattisgarh's political leader in an alleged corrupt deal . Saffron. Cardamom) • Amul Amrakhand • Amul Mithaee Gulabjamuns • Amul Mithaee Gulabjamun Mix • Amul Mithaee Kulfi Mix Amul’s Priceless Baby 1.• Amul Shrikhand (Mango. Question paper leakage of Common Admission Test (CAT) for seats to the Indian Institutes of Management 2. Almond Pistachio.

3. . Pun on the storyline (the fashion world meets the Underworld) of the hyped up Bollywood film `Boom' 4. Air India pilots strike due to SARS scare 5.

By highlighting factors such as hygienic production. packaged salt in India began with Tata Salt back in 1983. nutrition and salt as a soldier in the battle against iodine deficiency. 6. vacuum . Tata Salt sowed the seeds of. and set the .evaporated. This pioneering brand created a market for high-quality branded salt in the country and defined the attributes that consumers now demand in the product. On difficulties in obtaining college admissions  Brand Story of TATA SALT The history of iodised . purity.Nisha Sharma refused to marry her groom-to-be after additional dowry demands were made on the wedding day.

A survey conducted across the country‘s urban ac showed that 90% of respondents had tried Tata Salt at least once (Source: ACNielsen Brand Track 2002/03). 10 billion. a new category in the food additives segment. .000 metric tonnes of its product through 1.standards for.mighty multinationals and domestic giants included . March 2004). This is the highest for the category and ahead of the brand‘s nearest competitor by a factor of nearly two.entering the field and challenging it for shelf space and market share. This is the highest for the category and ahead of the brand‘s nearest competitor by a factor of nearly two. ACNielsen ranked Tata Salt as the Most Trusted Food Brand. with a penetration of more than 53 million Indian households every month. The brand has stayed ahead of the competition despite a plethora of players . being first in its listing of the 20 Most Trusted Food Brands in India and placed it eighteenth globally in its Winning Brands Global Database (2002/03). with Tata Salt commanding a sales share of 2.280.000 retail outlets (Source: ORG MARG Project Premium. Tata Salt fashioned a market where none had existed and capitalized on its first-mover advantage by first establishing a leadership position and then consolidating it. According to the latest IRS data (2003/04) Tata Salt ranks number one in reach to households in urban India and number three on an all-India basis.1 billion or 21% of the market. Tata Salts sells a monthly average 35. A survey conducted across the country‘s urban centres showed that 90% of respondents had tried Tata Salt at least once (Source: ACNielsen Brand Track 2002/03). The market for pre-packaged iodised salt in India is estimated to be worth Rs.

The company‘s turnover for the financial year ended was Rs. Kapil Ram Vakil. 1.2 (in 2002/03). it enhances and accentuates the flavour of vegetables and meats and it protects food safety by retarding the growth of micro-organisms. Tata Salt is produced at the Tata Chemicals facility in Mithapur haut on the Western coast of Gujarat. Mithapur. This success is remarkable given tint salt has all along been a commodity. Four years later the company launched Tata Salt.97 billion. established the Okhamandal Salt Works. . Tata Salt is manufactured by Tata Chemicals. which is at least twice as much as its closest competitor. Tata Salt was ranked fourth and in the following year it came in sixth.07 billion with net profits of Rs. which was founded in 1939. In the 2002 edition of the survey. developed a salt works at its complex in 1979.making plant is part of an inorganic chemicals complex which is the largest and most integrated in India. Tata Salt plays an important role in India‘s public health campaign against iodine-deficiency disorders. a chemical engineer who had studied at Manchester University. Salt and salt-based products were then the virtual monopoly of foreign companies. 17. the starting raw material for almost all the 27 basic chemicals that the company manufactures. The quest for salt plant began before the Tatas came on the scene. Tata Chemicals. He later set up a soda ash plant at the site. the city of salt. is the mother of India‘s heavy chemical industry. a valued member of the Tata Group and India‘s largest producer of soda ash. In the late 1920s.On the ACNielsen-Brand Equity scale. The salt. Additionally. which identifies India‘s loo most trusted brands. Tata Salt has the unique distinction of being the only Indian brand to figure for two consecutive years in The Economic Times Brand Equity-ORG-MARG survey of the Top Most Trusted Brands in India. Tata Salt has all the good qualities of traditional salt: it is an essential nutrient. The Mithapur salt works are spread over 60 sq km and can generate over two million tonnes of solar salt.5 (in 2003/04) and 7. which imported ordinary salt from Aden for India‘s consumption. Tata Salt has maintained a rating of between 6.

Not just any old filmstar. the soap brand is still clearly the leader in its category and among the Rs 1. tells us why. . has been working on the Lux brand for two years now. With a 14. for filmstars and ordinary Indians. Zeenat Aman. Aishwarya Rai and Priyanka Chopra now. home care & skin cleansing. Wahida Rehman. Vim. and sustaining the Lux brand now and taking it to the next level is his biggest challenge. Karisma Kapoor in the 1990s. In the past. Wheel. As the brand gained traction. The first ever Lux ad featured Leela Chitnis promising smooth skin all the way back in 1929. Simi Grewal in the 1960s and 70s. and sitting inside the new 13-acre steel-and-glass HUL Mumbai campus. Juhi Chawla. Brand Story of LUX The Beauty Soap of 'The' Filmstars. Parveen Babi. Vats. Sudhanshu Vats. Domex and even been HUL's vanguard for modern trade. he has nurtured and grown brands such as Lipton." says Vats. Saira Banu.7% market share in terms of value and 14. Kareena Kapoor. a marathon runner in his own words.000-crore plus luminaries in HUL's Top 5 brand quiver. However. VP. Rati Agnihotri in the 1980s. Poonam Dhillon. Madhuri Dixit. Hema Malini. 'the' filmstars that truly matter.2% volume share. yet they don't change. the challenge for any market leader is to never get complacent. it never lost sight of its Bollywood connect — Madhubala in the 1950s. Rani Mukherji. For 81 years now. Sridevi. Going the distance is not new to him. Lux has been one of India's most endearing brands. The 43-year-old has been with Levers for 18 years of his life. "The beauty of big brands is that they change.

Vats says that whenever he travels to the hinterland." says Vats. the brand promise has shifted with growing affluence. After all every 20 years. Even the current Abhishek Bachchan-Aishwarya Rai campaign." he quips. The current fruity fragrances seem to complement the mood of the times. "For example. where Abhishek is trying to get hold of Aishwarya and her soft skin. represents this new playful theme with a game of blind man's buff. So far. While the overarching Lux message has remained more or less intact over the years.Recently. from a teenager to a 60-year-old. The challenge is to sell it not just across the rural-urban chasm. On a recent sales visit to Barabanki in UP. "Heritage is important but you can never rest on your laurels. instead the core SKUs are strawberry and peach with lotus as the third variant. The formulation of the soap has been shifting gears since the 1990s. he sees consumers demanding a Rs 10 Lux. only 30% of the companies remain in Fortune 500. In a price sensitive market like India. the brand experimented with Bollywood actors — Shahrukh Khan and Abhishek Bachchan. the marathon man has been able to keep the brand relevant and contemporary but as he himself agrees. used as mobile caller tunes. accessible currency price points act as both convenience and affordability levers. despite the northbound affluence curve. "Now that sentiment is shared across the country and ingrained in the psyche of village folk. It is no longer the standard white and rose bars that the company hawks. but to consumers that use the brand from SEC-A to SEC-E. So the 2005 campaign with Shahrukh Khan featured him in the foreground but flanked by a bevy of Bollywood hotties who had featured in Lux ads over the years — to commemorate 75 years of the brand's existence. Despite the obviously feminine campaigns that agency JWT dished out for Lux over the years. big is beautiful in Punjab. Vats was caught by surprise at the popularity of the Abhi-Ash jingle in the ad campaign." adds Vats. "As the consumer evolves. played on local radio stations and blaring on loudspeakers. when floral notes like jasmine and lavender held sway. explaining why the Rs 65 Lux SKU does so well up North as a 125 gm x 4 pack. How can relevance thrive in such disparity? Vats and his team do the thinking by scouting the length and breadth of the country with a nose for nuances." . his or her preference for fragrance changes from basic to more complex notes. Soap bars have kept up too. The brand has also kept up with the times by graduating from soap bars to shower gels and has emerged as the leading brand in the body wash segment. the usage of the brand actually showed a gender split. the brand today has been made available at more accessible price points to drive sales in rural markets." says Vats. And while the urban consumer laps up these developments. Vats sells about 100 crore Lux cakes every year. "You can't leave it at rose because it's too accessible. Lux was the first to introduce soap bars with fruit bits in them.

it is understandable that decision processes and organizational structures used to make and implement brand decisions also may need reexamination. Firms face difficult trade-offs between the increased importance of coordinating brand activities. who is responsible for all the business activities that relate to ensuring the success of a specific brand. thereby reducing one of the weaknesses of traditional brand management.This emerging trend represents a more away from a system focuses on the individual brand manager. and the pressures to decentralize decision making and eliminate entire layers of management in the hope of curtailing costs. They note that brand management has proves quite adaptable to differing firm and marketing environments over its existence.3 Challenges and Opportunities of Brand Management and Brand Equity  Abstract Today. Oxydol. Given dramatic changes in the competitive nature of product-markets and technology and their consequences in the evolving role of both distributors and facilitating organizations. Low and Fullerton (1994) comment that category management also affords the opportunity for more experienced executives to involve themselves with the brand management function. both within and outside the organization. They provide an important historical perspective for many of the issues affecting brand management today. Branding identifies five major environmental forces affecting market behavior and suggests their implications for brand management. The traditional Approach to brand management is changing and their has been shift towards a new paradigm in the marketing organization .The original logic for the brand manager system in the multibrand firm rested on the belief that competition internally for resources would improve efforts on behalf of each brand. and Tide detergents for P & G) often competed as ruthlessly with one another as they did with counterparts from competing firms. the brand manager may even become part of cross-functional teams. As the modern corporation increasingly incorporates horizontal coordination structures. We pay some attention to interrelations among these forces and the proactive nature of brand management itself in helping shape them. with other firms either following or actively studying the possibility.CHAPTER. brands and other tangible assets represent a significant proportion of a company‘s enterprise value. Bold. Low and Fullerton (1994) trace the evolution of brand management from the origins of the first national brands to the present. But managers for multiple brands in the same product category (such as Cheer. Zenor (1994) argues that a category form of brand management organization seems . The difficulty in coordinating marketing programs for each brand and demands for a more coherent approach to managing an entire category of products on the part of the trade led firms such as P & G recently to centralize decision making at the category level.

in part. successful marketers must dare to be different.inherently justified by an improved ability to coordinate pricing and other marketing efforts for a firm‘s different products and brands. Brands often must thrive globally to survive locally. to market changes are likely to be more successful if actions are guided by knowledge of the forces shaping market behavior and insights that enable the development of sustainable competitive advantages. Throughout this paper. the globalization of the world economy can present daunting challenges. which profits from its own past successes and is given new impetus with globalization and increased competition and represents another factor contributing to blurred product market boundaries. SLR cameras. An innovative product or program loses its competitive edge and the ability to command price and/or share premiums as soon as competitors are able to duplicate or counter its capabilities. They must deal with the fuzziness of product-market boundaries aided by increased deregulation and competitive initiatives. Brand managers must realize that how competently they respond depends. and over 60% of the top ten brands.  Introduction Marketers must create competitive advantage by constantly adapting to and instigating change. we highlight the special contributions and identifies several research opportunities this perspective efforts. perfumes. Japanese manufacturers have had unrivaled successes in the motorcycle and consumer electronics markets. These forces affect buyer expectations and opportunities and by so doing impact back upon themselves. as appropriate. the structure of a system refers to the specified set of relationships.Brand management changes and competitive advantage: model elaboration A systems model of brand management will be presented in the spirit of Meade and Nason (1991) in the marketing literature. An increasing pace of technological change. The importance of this lies in the identification of potential interdependence among the components. bread makers. the growing power and independence of the channels of distributions as intermediate customers. and cash flows and thus benefit from cost reduction. with respect to this. in part due to associations with quality and reliability. Hence. on how they leverage new capabilities and options presented and that their actions affect the very forces to which they respond. and pressure from investors to produce more predictable growth in revenue. that is. which has the creation of new products / services and the lowering of costs as principal benefits. the influence that one or more sets of relationships may have upon the others (Dixon. In each category. profits. were foreign. This attack from global competitors accounts for many sleepless nights for brand managers.  Globalization of Competition and Greater Openness of Markets: For an increasing number of cases. rack stereos. often made possible by advances in information technology. the top rated brand. The December 1993 issue of Consumer Reports carries brand name ratings in six product categories: pocket knives. 1991). given varying degrees of crossbrand price elasticity in the market. Estimates of gain can be compared with the costs of implementing a category management structure to decide if such a move is beneficial. He demonstrates that the success of category management is enhanced when competitors are organized similarly. His research uses a game theoretic model to estimate the magnitude of profit advantage that category management affords. and miniature televisions. creating change. A system can be defined in terms of structure and. The model presented in this paper attempts to identify levels of interdependence in the brand management system to then identify . Brand managers must address the exigencies of the evolving needs of buyers within a market increasingly populated by global competitors and the opening of territorial markets.

The expansion into Europe was comparatively easy from a cultural standpoint. reflect these findings. strategic alliances with certain suppliers. and therefore rewards. The strength of global challenges encourages domestic competitors to form alliances and creates pressures for changes in antitrust regulation to make the alliance feasible. For many firms. The model will be elaborated in detail below. companies may seek greater opportunity in the global arena. Ford‘s Citibank MasterCard. The central idea of the modal is that brand management is a holistic system: it receives information from internal sources. as pointed out by Miller (1987) when he related the variables of strategy. It should be noted that the changes occurring in brand management mirror those at the corporate level. The existing research has revealed that external environmental changes (Shocker. domestic firms may seek alliances with foreign competitors. distributors. Global alliances may provide a way of weakening antitrust restraints. and specifically brand management system. There are feedback loops which permit the system to receive information from a variety of sources so that the system can adapt to changes. for example. This may force new organizational arrangements on the firm. An emerging strategy that seems to be succeeding is to plan globally and act locally. in which activities such as product design are conducted at a global level. even direct competitors can find reasons to collaborate. and even former competitors are a key to future competitive strength. The recent upheaval in marketing organizations. To survive. as well as effects on competitive advantages. structure and environment Miller (1992) further showed that firms which adapt their organizational structures to the environment are best suited to meet the needs of the external environment. Increasingly. This requires new thinking and possibly a split personality for the brand manager. managers must be careful in coping with cultural or language differences. and then develops strategies which should help attain competitive advantage. distribution.  Designing Products for Global Acceptance : There are myriad factors that influence both customer and competitor behavior in foreign markets.  Strategic Alliances In the face of global competition. thus co-opting them and preventing their availability to competitors. they also are forced to share knowledge. but marketing and other transactional activities are customized locally. companies often have to share costs and risks. and subsequently are changing the function of the manager. Finally. Cobranding extends to alliances between the complementary brand names of independent producers. 1994) and company specific variables have caused marketing organization to begin adopting new brand management system. and even capital via strategic alliances that can stretch organizational capabilities and change the nature of brand management. or between manufacturers and their suppliers and distributors. it creates a structure to meet the needs of both internal and external constituents. These changes have led to changes in micro-level brand strategies. As Japan .  Collaborating with competitors : Although alliances between manufacturers with complementary skills. given shrinking margins and profits at home. is natural and understanable. The brand manager must coordinate with counterparts outside the firm as well as traditional contacts within. and then research propositions will be outlined which relate to the inter relationships which exist in the brand management system.hypothesized relationships between variables. Such alliances have become the norm in the auto industry. as he or she cooperates in one domain while possibly remaining competitive in another. Or.

Brand management will be involved actively in seeking out.S. even in mature or stable product categories. greater opportunity and reward brings more players to the table and affects the direction of research efforts. They are both a cause and an effect. direct mail).  Product Innovation : Technological innovation often leads tonew and better ways of solving old problems. The challenge to brand management is sometimes how to adapt proactively to harsh new market realities before the protection afforded by regulation is removed..  Impact of Technologies Change : The pace and nature of technological change is itself affected by the globalization of markets. The brand manager is often in a position of leadership in identifying such opportunities.  The Increasing Openness of Markets : Deregulation often leads to increased competition from outside traditionally defined product – market boundaries.g.. ranging from import / export to telecommunications.g.S. To contain threats. Globalization means larger markets for the products of technology and greater need to coordinate management activities over wider expanses of distance and time. and transportation.g. or creative pricing (e. distribution (e. and U. the cultural differences were larger.  Convergence of product. camcorders replacing 8mm movie cameras). As we look ahead. Technology can be leveraged to gain competitive advantage or technological change can be resisted by entrenched interests to their own detriment. Other impacts of technology on brand management follow. It is worth nothing that competitive forces often precede deregulation. frequent flyer plans) can create differentiation. The effects of deregulation are felt in varied industries. business had more difficulty there. and implementing an array of such options. banks have gone into partnership with airlines and telecommunication companies to offer credit cards with ―frequent user‖ miles. These innovative new products may offer greater functionality at lower costs and can displace existing products (e. Brand managers are challenged to think creatively. U. selecting from. thus providing opportunities for new entrants that may not have been otherwise available. Often innovation in the nonproduct dimensions of service.. simplified programming devices for VCRs). compact discs replacing : .. The brand manager may press for flexible product designs that contain features important to all markets collectively or options that can be added readily to a basic design to satisfy local requirements. Innovations sometime provide additional opportunity for complementary products (e.g. health care. Each of these new competitors are leveraging their established relationships with customers to penetrate the credit card market rapidly. companies will have to adapt to those cultures if they are to succeed in the 21st century. the cultural challenges will be larger still in the rest of Asia – from China to indonesia in Thailand to India – where more than half the world lives. imagery.developed.

and converging markets. As markets become more global. shorter product life cycles. Brand managers acquire greater control. this has led to the recognition that distributors are customers with their own preference functions. as an ingredient or component. Conflict within the channel. or Dupont. with its Stainmaster brand. and (2) managing joint promotions and ensuring that ―partner brand‖ strategies do not adversely affect their own brands. Each product iteration enables a fast-cycle company to apply marketplace learning (e. Whereas in the past.Technological advances sometimes have blurred boundaries between product markets. the relative power . is now seen as a potentially fatal obstacle to the success of the brand. (2) assembling and managing skills of several partners (i. Many industrial producers have discovered the added value that a recognized brand name. products moved in a loosely coupled fashion from manufacturers to wholesalers and retailers to the final consumer. For some manufacturers. Intensifying product market competition also has changed the geographic scope of product market boundaries. The challenges to brand managers include (1) how to utilize skills from one product market in another. can add. time-based competition is becoming increasingly important..  Time-based Competition (Market entry timing) : In an era of rapid technological change accompanied by fast innovation. are attempting to further their influence with manufacturers of personal computers and carpeting.. with its ―Intel Inside‖ campaign. features and functions that customers like or do not want). producers such as Intel. When competitors can leverage similar technologies to doplicate products and services. Regardless of whether it is technology – driven. The advent of the term ―relationship management‖ captures this new awareness of symbiotic interoganizational requirements for delivering customer value. the search for defensible competitive advantage also has extended the boundaries of existing product categories or blurred existing definitions. thereby potentially improving success of the next model. As the relationship between producers and distributors has intensified. all levels of distribution and supply now see the importance of systemwide coordination to improve operating efficiences. ignoring traditional organizational boundaries) in developing and marketing new products and services. Brand managers now recognize the incredible value of global brands – those recognized and admired throughout the world – and the difficult tasks associated with their creation and maintenance. By establishing a credible brand present in the final consumer market.e.g. Harvesting the best customers : Occupying the mental corner store : Developing a reputation for innovation : Shorter order fulfillment cycles : Mass customization:  The Increased Power of Distribution and the Evolution of Channels The new level of competition in many product markets has been abetted by dramatic changes in product distribution and the behaviors of distributors. in the past merely a nuisance. speed is even more important. Companies with shorter product development cycles can close in on potential markets faster. the scope of distribution systems for most firms has broadened as well.

moreover. and it is only when they have not been (because of insufficient time. quality. also has increased. This shift may cause an increase in the importance of corporate brands and bring reward to reapportions that are compatible. Once PC buyers learned that IBMcompatible clones were reliable and used the same components as name brands. The national brand may be forced to concentrate only on flavors or varieties in which the private label does not choose to compete. Brands are symbols that consumers have learned to trust over time. Distributors. and the customer satisfaction engendered by related products and offerings. Managers of large brands can try education to wean trade customers away from promotions through ―everyday low price‖ (EDLP) and other strategies. are demanding. The introduction of Microsoft ―Windows‖ improved the user-friendliness of PCs and drove Apple and IBM – compatible computers. among others (Aaker 1991). They can tell the salesperson what works best – and what does not. and they often signal intangible product qualities (Erdem 1993).  The Usefulness of Brands : The value of a brand name is associated closely with its awareness. interested in profit across brands and product categories (Zenor 1994) and developing their own bonds with consumers. This power shift away from the producers of branded products has led to the welldocumented increase in the use of marketing actions directed at the trade rather than final consumer. This has encouraged brand managers to obtain sound market research information to become better informed in dealing with distributors.of distributors. This has led the brand manager to more consultation with distributors to seek greater understanding of their perspectives. Brand management is challenged to understand the dynamics of changing markets and manage brand association. store managers can respond quickly by examining the impact of promotions. manufacturers‘ products for their own private label and store brand purposes. especially retailers. are prone to play manufacturers against one another. patent . often can be copied readily by competitors. This signal is often based on ―experience attributes‖ such as perceived reliability. and getting access to. creating difficulties for sales and brand managers. Such intangibles often lead to more defensible advantages for the firm relative to search attributes‖ (physical features and prices that are readily comparable across brands via inspection or information search) because consumer learning time and experience opportunities are limited. The brand manager must become ever more sensitive to these possibilities. Now. In many cases. Corporate downsizing and corresponding reduction in in-house purchasing expertise may imply increased importance for intangible ―product‖ components such as the service and relationship dimensions. retailers. Search attributes. Both customers and competitors learn and adapt. they refused to pay hefty price premiums for IBM or Compaq. closer together and made each more vulnerable to price competition from the other. quality perception.  Changing Consumer Markets : It is at the product – market level that broad environmental forces are transformed into specific competitive threats and opportunities that require new and creative brand management responses. The rapid diffusion of electronic scanner systems has contributed to the shift in information power from manufacturers to retailers. and safety (Nelson 1970) that products and related marketing programs afford.

 Measuring market change : Because it is inherently individual and multidimensional. that they also contribute to brand equity.  The value imperative : Buyers across product-markets have always demanded ―value but defined it by the behaviors of competitors. Tougher economic times increase sensitivity. managers have found that satisfied customers often have many desirable characteristics – they by more. The rise of cable. Each has strengths and weaknesses and must be evaluated in light of brand management‘s purposes. Managers of brands still face a need to provide an orchestrated message to customers. Often historical data for a product category are immediately available to the manager when the need for them arises. and increased reliance on sales promotions relative to advertising. incur lower sales and service costs. distributors. Each of these has made the development of a strong and consistent brand image more difficult to achieve. but it also makes it more expensive to reach potential customers. With added market alternatives available. Although hardly an innovative concept. fragmented nature of media. Focus on value requires a paradigm shift – from a price-quality relationship in which high quality could be assumed to lead high prices to one in which companies must produce high-quality products and services at ever lower and even an appropriate measure can depend on user purpose. the value of time. starting with the desired price point and image and then designing the product and program to achieve it. its importance evaluated against the back ground of previous experience with the brand. brand equity can be difficult to measure. This has spurred brand managers to focus on customer satisfaction as a measure of operational success. and the consequent decline of network television represents media response to increasing fragmentation of audiences. Buyer differences in such factors as concern for the environment. has had a major effect on how brand management decisions are made. Consequently. the goal of integrated marketing communications has been driven by the increasing feasibility of direct marketing activities. and provide referrals. The increase in market share for private labels suggests consumers may be less willing to apy hefty price-premiums for the ―image‖ component of national brands. This latter strategy has resulted in the ―backwards‖ development of new products. more and better decision aids have been created to . they are now demanding high product quality and good customer service at reasonable prices. or creative promotion). Increasingly. Such research data are more objective and can be collected and processed in a timely fashion. proprietary production and distribution processes. and health and nutrition also provide scope for differentiation. Relationships put any single action in perspective. A variety of measures have ben proposed in the literature of offered as the proprietary products of market research and advertising firms. particularly from scanner technology at the retail level. The brand manager gains understanding of the relative contribution of product attribute perceptions and nonattribute imagery to the brand equity for different segments and enables valuation of a brand‘s extension to different product lines and other markets. Markets also are becoming fragmented by the growing differences in tastes that accompany increasing cultural and economic diversity. Broniarczyk and Alba (1994) provide empirical support for this signaling interpretation of brand equity. The rapid increase in market information for managing brands. Some distributors have adopted an EDLP strategy or have added ―value products‖ to their lines. Customer satisfaction and ―relationships‖ with a brand provide it protection from competition. emergence of more sophisticated and efficient telecommunications. with its offer of myriad channels. are willing to pay more. and other publics in the form of ―one voice marketing‖.

for example. teenagers have been the change agent in every society. to compete with them for mastery of their virtual worlds. ease of use. and the vulnerability of the brand to competitive actions. India is the most populous . In addition to the products that teens buy for themselves and/or consume themselves (food. with an area of 1. ad exposure. celebrity endorsement. entertainment. That‘s a total purchasing/influencing power of $600 billion this year. the brand name should be able to trigger a series of expectations not only about the product. Next to China. this is the first generation to have grown up with online chat and multiplayer online games as part of their milieu. and shopkeeper behaviour. personality issues. in the often. Today‘s teens are also masters of multitasking. companies need to adapt to the fast changes in a way that sets branding apart from the rest of the competition.. but also cool image. is the largest democratic country in the world. Most companies have tried to harness this power of the teen market. parental influence. music. The paper would also try to analyze the shopping and spending patterns at the retail level and will make an effort to provide an insight into the media that usually appeal to their psyche. in situations in which a parent makes a purchase taking into account kids‘ tastes. the impact of a brand‘s strategy on competitors. powerful and influential as ever in almost all areas. emotional issues. Historically.making process and the vital factors that influence teenage behaviour.analyze such data. Some of these issues discussed: teenage demographics.26 million square miles (3.‖ And they indirectly influence another $300 billion per year.4 Branding for 21st Century Teenagers Teenagers . and listen to music . Therefore. This generation uses the Internet not just to find things out or to connect with friends from their neighborhoods or from school. Although earlier generations have grown up with computers and computer games. watch TV. This generation uses the Net to make new friends from all over the world. Teens also influence an additional $150 billion per year globally with ―pester power. surf the Net. psychological issues.4 percent of the global land area. but also about what the product stands for in the mind of teenager. and to co-create new communities and planets. The different strengths of data collected at the household (micro) and store (macro) levels might be combined to offer the brand manager more detailed information about brand preferences and socioeconomic characteristics of buyers (and segments). Branding. They are able to do their homework. etc. talk on the phone with friends. India is one third the size of the United States and occupies most of the Indian subcontinent in south from the age of 13 to 19 . The country has about 16 percent of the world‘s total population and 2.currently spend $150 billion per year globally. Today‘s teenagers are not only a powerful segment but also probably the most profitable. This paper is an attempt to gain an insight in to the decision. chat online. CHAPTER.all at the same time. There is also being longer term returns in brand loyalty as teenagers of today become the buyers of tomorrow. its quality. along with information regarding the sensitivity of the market to price promotions. peer pressures. The paper is an honest endeavor which will throw light on the significant aspects that the marketer can afford to ignore only at his own risk. teens actually influence adults‘ purchases of a large variety of products. clothing. etc.29 million kilometers). electronics.very few have succeeded in harvesting the rewards of teenage brand-loyalty. To acquire the teenage market.freckle world of teenagers.  Introduction India. therefore not only represents the company or product.).

as teenagers today become the buyers of tomorrow. with a 1995 population of 950 million. branding to Indian teenage customers is easier said than done.specific brands in in the world. Since there are not many teenage. India‘s urban population accounts for 28 percent of the country‘s total population.6 million inhabitants of Bombay were homeless. the literacy rate is significantly lower for females than males. Teenage consumers have now become a growing force in almost all global markets. The 1995 infant mortality rate was per 1. Since the Indian teenager has always been different from their counterparts abroad. The paper will touch upon some important aspects like Teenage demographics Issues that appeal Psychological issues Personality issues Emotional issues Peer pressures An understanding of the above issues would definitely help a marketer to better analyze the shopping and spending patterns to teenage customers. Bombay. the working age group (15 to 64) was 69 percent. browsing through the latest magazines on fashion before entering the lee‘s showroom. living on the streets or in squatters‘ camps built on putrid landfills. giving a natural annual growth rate of 1. The immense potential of this segment has made it even more important for marketers to arrive at the correct methodology at the earliest.357 persons. The birthrate was twenty-eight per 1. with schooling compulsory to age 14. to buy a pair of low cut jeans and a matching bottle red top and then using the latest model of a Motorola cell.Phone to send pictures of himself to some close friends. India‘s most populous city. increasing not only in number.189 persons. It is not uncommon to see a teenage customer spending money to buy the latest album of Sonu Nigam. The 1995 age distribution showed that 36. The 1995 life expectancy at birth for males was 58 years and for females 60 years. The 1993 literacy level was estimated at about 50 percent. Most companies have tried to harness this power of the teen market.000 live births. . and the aged population (65 and over) was about 4 percent.000 population. one third of the 12. This paper is an honest endeavor to gain an insight into the decision making process and the driving factors that influence teenage buying behavior.000 males. to play on his MP3 compatible play-station. there by helping a marketer to take advantage of long term payoffs in brand loyalty. Purview of this Paper Today‘s teenagers are not only a more powerful segment but probably one of the most profitable. India has one hospital bed per 1. The sex ratio showed 929 females to 1. to address the burgeoning Indian teenage customers.very few have succeeded in reaping the rewards of teenage brand loyalty.8 percent of the populations were under 15 years of age.8 percent.000 people per square kilometer. and one physician per 2. and come out with long-term wining strategies. most strategies have been adopted from foreign foreign countries.000 populations and the death rate ten per 1. but more importantly also in spending power. In 1991. has 100.

 Paradigm shift Top 10 Favourite Brand 1 2 3 4 5 6 7 8 9 10 Among Chief Wage Earner House Wife Young Adult Males Young Adult Females Nokia Mobile Phones Lifebuoy Lux Dettol Colgate Britannia Close Up Pond's Pepsodent Bournvita Fair & Lovely Colgate Nokia Mobile Phone Lifebuoy Dettol Lux Clinic Plus Pond's Pepsodent Rin Nokia Mobile Phones Colgate Hero Honda Lux Britannia Dettol Clinic Plus Vodafone Pepsodent Maaza Nokia Mobile Phones Lux Colgate Britannia Pond’s Clinic Plus Dettol Pepsodent Maggi Amul .

pop singers • A lot of people study abroad. don‘t care to rely on husband. and dare to express themselves. spent time and money collecting brand names. forests.more facilities. make up (women) • More travel. try to follow fashions closely. to the beaches. women don‘t just want to please their husband. own budget for spending • Now in marriage. Believe what we see and hear • Now more variety of occupations • Housework easier . not family • People more ambitious now. . actresses. and body. worries shared with friends. tourism. micro-wave. mountains. nature • Religion in bad shape. match what one‘s friends are wearing. Influences • Fashion center – US. but also want to be themselves Changing Attitudes • Take care of health. but value the truth. can buy readymade food • More working women. have their own salary. • Influenced by TV. Scientific approach/beliefs more effective • Don‘t just believe what you are told.Materialistic Values • Teens. and bring back influences Changes • Higher standard of living • More educational options available with private colleges (High School teacher) • New techniques in education. • Well known brands last longer. Care about food intake. washing machine. on the other hand. concerns. look modern. "They are braver today" said a higher school teacher. leaders behave badly • Not afraid of sinning • Problems. affluent • Today teenagers dress up more.

like a pop star or actress on TV.pack clothes and change after tuition class • Children less confident now. want to avoid conflict • Parents feel if they are too strict. even after midnight • Dress a certain way . more efficient and capable than men • Men and women will be more equal . less time spent with kids. think only of themselves Today's heroes • Today‘s teens want to be popular.can‘t control them. there will be too much pressure on the kids. more self involved. can‘t live without the acceptance of friends • Talk for a long on the telephone. affecting their education / mind. only guide them.• Both parents work. confident • Nicole is a very important symbol for the creative teenager . closer to friends • They copy friends.someone who is creative. so many shopping malls nowadays • Kids don‘t know the concept of saving • Parents blame more and more people are living as nuclear families • 10 years ago.she is smart and energetic • Radio DJ important source for problem solving . can‘t scold children. model . more respectful.someone to talk to. etc • May have to accept changes . people were more gentle. more tension at home • Mothers compensate by giving their children money or buy them things • Material things substitute for love • Things are easy to buy. 2010: Men vs Women • Women will be working more. otherwise will do something and not tell you • Children hide things from their parents .to be accepted by the group • Used to live in large extended families with grandparents . Now they are more aggressive now.

won‘t marry too soon. will like to shock people. will want to be independent first. people will do a double take • Unisex. • Live together and have many partners to try out. kids will study harder • Education will be open to all. no animal testing. • Preserve the forests. not just those with money 2010: Fashion • Outrageous fashions. A screen will come up. will get into your bloodstream faster . just order what you want • Chilled drinks without refrigeration • Unusual foods. • Hope that people will be judged by their ability. don‘t gain weight • Concentrated nutrition so you don‘t have to eat a lot • More natural foods.• Thai ladies will be leaders in decision making • People will live alone more. not by their looks or personality 2010: Education • Lots more competition. want look at each other • Men will wear lip gloss 2010: Eating Out • No restaurants. 2010: Morals and Values • Teenagers too bold. get food from vending machines • No waitresses.

don‘t have to wait a year . No time wasted searching o Catalogues for the future season on the websites o Home pages with prices and where available • Services – Banks o Monthly interest.which lasts 1-2 days o Will have masks. all in one • Internet: o The world will be smaller. especially skin treatment • Wont need doctors you don‘t have to look old any more • 1 medicine for all diseases • See the results immediately. Can see and buy everything on the internet o Can stay in bed and wait until they deliver a mask .2010: Health Care • Surgery . 2010: Product/Service Suggestions • Hair Care: (Men) o Driven by convenience o Shampoo with no water needed o Use shampoo and it lasts for 1 month • Hair Care: (Women) o Shampoo for wavy hair. will have medicines with no side effects • Genetically modified products.don‘t need to go to the salon • Skin Care: o spray on lotion o spray or apply on tan . wont need to use make up any more o 2-in-1 : cancer prevention and sunscreen. for straight hair o Do it yourself .

a marketer needs to adapt to the rapid changes in a way that sets the brand apart from the rest of the competition. etc.. This coupled with an increased awareness of all things (thanks . However. To tap this teenage market. part-time jobs. the brand name should be able to trigger a series of expectations not only about the product. though considered important • Health and personal care not as important nor expected to change much What we have learned • Some optimism. Lets us throw light on some important indicators of what influences the teenage customer.o Micro-chip credit cards same as car key. the weird teens transform into disciplined. some a bar code in the body o On line transactions from home. but also its ―cool‖ image to the teenagers. Branding. there is little doubt • Teenagers are following the textbook . can see the teller‘s face o Transactions on the telephone. summer jobs.  Teenage Customers Today‘s teenage customers have emerged as big-time spenders. therefore not only represents the company or product. their independence from their parents • Almost magically. ease of use. its quality. branding is more than creating an awareness of a particular brand. who not only have a good amount of pocket money but also know how to supplement the same by means of internships. In order to appeal to teenagers. but also about what the products stands for in the mind of the teenager. give cash without leaving the house Pace of Change • Both fashion and technology expected to change rapidly • Food is usually slower to change in all Asian countries • Banking a notable exception.using dress to express their biological coming of age. ID card . socially attuned young working adults  Branding Branding is an important tool to create brand consciousness within the target audience. some concerns about the future • That there will be significant changes.

the data on the spending of teenagers on clothing for the year 2003.mainly to internet) and a voice which speaks out what they want.  Teens As Influencers . Just to give an idea of the kind of spending that teenage customer would do. is reproduced below. makes this segment a most desirable one from the marketer‘s point of view.

These can be classified as: Search for an identity Improved cognitive power Changing sexuality Growing importance of self-esteem Higher mobility Gender differences Increasing need for independence Increasing buying power Increasing pester power Let us examine each issue in greater detail. become a lucrative market because of certain characteristics which are not to be found in any other target segment. before using them to create a brand that will be valued and accepted by teenage customers.  Search for an Identity The age group of 13-19 years is a group searching for its identity. They are no longer content .The teenagers therefore.

. like organized sports. The hormonal balance is at best an unsteady one and may change radically. The need for a healthy self-esteem is a crucial driving factor. The stage between 13-15 years is marked by the development of their abstract thinking abilities. where they are fairly comfortable with the biological.searching and trying to figure out their own identity. the brain is almost fully developed. psychological and physiological change. but want to be recognized for what they are. between 16-19 years is marked by more remarkable changes in their ways of thinking and analyzing data. over short periods. This experimentation and acceptance may not just be limited to complex thinking process but also includes group activities. The group activities may take the form of just ‗hanging out‘ together or may even manifest itself in the form of physical activity. as the question itself. Improved Cognitive Power Teenagers go through two phases in building and honing their cognitive powers. This brings in the ability to empathize. the early teens stage is marked by rapid and sometimes un-nerving changes taking place in the hormonal levels. The need to use abstract thinking to solve complex puzzles/ problems appeals to them and helps them in further building their identity. which the teenager is not geared to handle. is the hormonal change resulting in changing sexuality. They are just learning to deal with their own ego and ask themselves questions like ―who am I?‖ The role of acceptance. In this process of experimentation. finding acceptance from their peer group is critical factor in creating their identity. Higher Mobility Teenage customers are also moving away from the place where they spent their childhood. The next stage.being somebody‘s son/daughter. This creates an imbalance. This brings in a certain amount of maturity in their sexuality. Changing Sexuality One of the most important and radical change that takes place in a teenager. This stage also poses questions in their minds like ―who am I‖? This is not very easy to deal with or answer and can create a intricate chain of thoughts. which could be as complex in nature. love and success is very important in their building a healthy ego and identity. to control impulsive reaction and metacognition. Again. They are very open to experimentation and trying to figure out what works for them. By this time. The earlier capabilities of abstract thinking now become full-fledged ability to reason and reflect. Importance of Self-Esteem The early teen is a stage where they go through a lot of soul. The late teens (between 16-19 yrs) is marked by a settling down of the changes in the hormonal levels and the teenager being able to better understand and control the change that has taken place.

This provides them with additional sources of income. teenage customers are known to spend not only objects that they desire but also for the basic needs. This means that moving into a place which is unfamiliar. This means that there will be fewer teenagers per adult in the age group 20-49 years. . This need for independence may be exhibited in the form of taking decisions without the inputs (or inference) from parents and other adults. some of major components of brand equity that a marketer needs to keep in mind for creating the right mix in the mind of the teenage customer. As we have seen above. Today. This translates into a direct increase in the amount of money available to a teenager.let us look at what lessons a marketer can learn from these for branding a product successfully to the teenage customer. Now that we have seen the factors which influence and effect the decision of the teenage custromer. In their need to create a familiar surrounding for themselves. Teenagers are also increasingly open to taking up short term project and summer projects. Increasing Buying Power The amount of money available to teenagers today is much more than what was available a decade or so ago. Increasing need for Independence The beginning of the teens also marks a significant increase in the need to be independent. Gender Differences Gender is also a major differentiator in the amount spent and the pattern of spending. that females spent almost 22% more than males. It was also found in the same research that the items rated at top three were very different amongst male and female teenage customers. This is usually displayed by the teenager in the form of going for shopping on their own or more likely with their own peer group.usually for higher studies. which gives them the feeling of lack of pressure and hence greater independence. in this new place. It was found on comparing the typical spending by a teenage customer. the population of teenagers is shrinking whereas the population in the age group 20-49 is rapidly increasing. Several such differences have made marketers understand that preferences among male and female teenage customers are likely to be very disparate. this spending becomes a mechanism to overcome the shock associated in moving to an unfamiliar place. Somehow. which again translates into extra spending.

However. they not only speak their mind. even to the extent of irritating or pestering them. but increasingly adopt pressure tactics to get things their way. so that the association becomes a long-time association. today. The 80‘s were marked by the teenager accepting. It may sometimes even take the shape of ―so what if you did it for me‖ type of attitude. Teenagers are not unknown to putting pressure on their parents through constant reminders. This is what is meant by ―pester power‖. Brand Loyalty By creating an identity for the product which fits in with the identity that the teenager is trying to create for him/herself. Pester power is one of the powerful considerations that a marketers need to understand and leverage. . the final decision made by the parents. to a very large extent. does not take into consideration what could be possible constraints on the part of parents. Loyalty created in such a manner will definitely help the marketer reap future benefits. because the teenage customer of today will most likely be the loyal adult customer of tomorrow. usually. The brand loyalty must also allow the teenage customer to peg his individuality on it. This pester power. Increasing Pester Power The teenagers today are quite vocal about what they like and dislike what they want and don‘t want.

NIL has also introduced with taste and product line in Sauces and Soup Market under Maggi to catch new segment.7 billion market worth in 1. Maggi Noodle had till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle.7 billion in 2003. Maggi Brand of products sustained recession in 2000 and 2001 in India by introducing economy packets. Though NIL tried to extend to other ready to eat products like pickles. .Maggi also became successful in sauces. In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market in the Noodles Category. NIL had introduced sauces. cooking aids and paste.CASE STUDY The Maggi Brand in India Brand Extension and Repositioning Case Background Nestle India Limited is the market leader in Indian Noodle Market with it‘s Maggi Brand of Noodles which was pioneer brand launched in 1983 in the packaged food market of India. revitalize brand. compete with other producers and fulfill expectation of customers. It appropriate realization of target segment.7 billion from 1. ketchups and soups under Maggi brand to reap benefit of brand popularity and image and contribute to financial gains by 1990. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta and Maggi Sauce is market leader with almost 37% of market share in 2005 in 1. In 2005 Maggi brand worth was 3. ketchups and soups Market in India. It took the challenge and established Maggi in Indian market considered to be conservative and typical about food consumption. Knorr has taken over Maggi in Soup market recently. It was unsuccessful so dumped those products. To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made different attempts by introducing new formulation to new taste but customers resisted change and Maggi had to reintroduce Maggi Noodles in same taste. effective positioning and effective promotion and sales made Maggi to Noodles in India as Xerox it to photocopier. In 2006 in compliance with NIL target to be ―health and Wellness Company‖ Maggi repositioned it as health and taste food products.8 billion market of India.

Kissin Sauces and Ketchup. How to continue NIL capability to Maintian Point of Difference ( POD) and Point of Party (POP) while bradn extension and repositioning. Top Ramen. ITC. Heinz are competing with their corresponding brand on the product category. Indo Nissan. NIL‘s positioning and repositioning strategy to catch market and consumer expectation. Maggi‘s challenge to protect it‘s market leader position in situations where there is emergence of competitors like Hindustan Lever Limited. Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of products and variants Key Issues      How Nestle India Limited is ahead in Noodles Market with brand Maggi since 1982 How NIL extended it‘s brand and line of products to leverage the brand and established Maggi as family brand. . Dabur India. Knoor Soups.Maggi is competing with Heinz Sauces and Ketchup.

Nestle symbolization of warm. SWOT Analysis of Maggi as Brand Strengths         Established Family Brand Strong Global Corporate Brand ( NIL ) Specialization in food processing category marketing and distribution in Urban market Presence of other product segments of food category : Dairy Products. Research and Development Division in India New Noodles Plant in Uttarnchal Weakness     Generic Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food category Brand Proliferation . Sauce.STARS : Maggi Noodles is the market leader with 80 % market share in Noodles Market and Maggi Sauces and Ketchup is leader with 37 % market share. Chocolate. family & shelter. The Market is growing by 15 % in the Product Category of Noodles. QUESTIONS ? : Maggi Soups is the category which is in Question mark as the market is growing and the brand as less market share then market leader Knorr brand of Hidustan Lever Limited. The products are producing cash for the company consistently. There are more chances for Maggi Soups to go to dog it does not stay competitive and increase market share in the category. Infant foods Pioneer and Leader so 1st mover advantage in Noodles. Ketchups and Soup market.

. Single product focused competitors like Heinz sauce and Wai Wai Noodles. Less Entry Barriers in the Market segment for product category ITC‘s strong base in Indian Market. Opportunity to be substitute to other snacks category of food products. Increase the Usage of Maggi Brand Products: Since Maggi Noodles and Maggi Sauce is market leader it has to adopt strategy to increase the usage of the product to protect it‘s market share. It is the way it could increase it‘s volume of sales. As it cannot further grow sales drastically in the same segment.Opportunities     Growing package and canned food market in India by 15% annually. Lunch Health Awareness Promotion Campaign : NIL should launch Health Awareness campaign to educate consumers about the benefits of health food. Heinz Sauce and ketchups of Heinz Indian. It could sponsors health camps. only way is to increase product usage like Noodles for breakfast Ketchups in biscuits. Chips and Ready to Eat Market still unexplored. Threats       Competitors with long history in product category Internationally like. Top Ramen in Noodle and Knorr Soups. High brand awareness of Indian consumer Other product category like Biscuits. Possible Alternatives Strengthen and use the Distribution : NIL should focus on distribution channels and use of the distribution channel to expand it‘s market to Rural India with products targeted to the market. Substitute Product to Product Segment. publish health information.

. As India is growing. It makes others possible product category vulnerable if lunched under Maggi. chips and snacks category. and as Indian being more aware of their culture and large segment being typical and conservative about their culture. there care more chances that NIL would be successful if it create a brand close to Indian culture in wording to positioning. It would spread economies of scale to customers in the form of price. Maggi being taken as generic to Noodles is hampering other extended product category. Maggi though has been able to differentiate itself from other Noodles. NIL should enlarge it‘s product segment. BEST COURSE OF ACTION Introduce different new brand or acquire emerging brand in biscuits. other competitors are coming up with more Indianized brand of products. So to avoid proliferation of brand and introduce new products to capture opportunities in other snacks and ready to eat product category NIL has to introduce new branding strategy. Old Indian Brands are also regaining momentum worldwide. As Indian Market is Brand conscious. Chips and Snacks with New Brand : To enlarge it‘s domain. As pasta of ITC has been seen as products capturing the market of noodles and Maggi failing to lunch pasta under Maggi brand also support the argument for new brand introduction by NIL.Enter into other product category like Biscuits. Competitors have high grounds to capture the market differentiating then from being Maggi. NIL could catch the trend of market.

The different components of a brand. newspaper. sales promotion and also to choose proper media channel as per demographic pattern to reach each and every customers.A brand is a name. expectations. Brands may expand coverage. Fifth would be to choose proper communication media like TV. Eight is to make promise to customers to fullfill all their needs. term. and so on are brand elements. or fulfill a variety of other roles for the Firm. parle products . symbol or design or some combination of these elements intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. national. The key to branding is that consumers perceive differences among brands in a product category. Seventh is to position the brand properly in to these condition and to make promise to customers to ving promising product as per their expectation with proper pricing strategy. extend an image. How is it different from other products hi tile crowded market place? The answer would be firstly to look after USP(Unique selling proposition) and to think simple but powerful brand name inorder to catch customer as such braid name that could be easily remember by the consumer like Amul.brands can maximize coverage and minimize overlap and thus optimize the portfolio. The starting point in the brand game is tile product. logos. symbols. provide protection. adio. Secondly to segment the market as per demographic hi order to classify market and customer and to fulfill different customer needs and expectations. international markets. product as per quality. Bisleri . Brands are valuable intangible assets that need to be managed carefully. Liberty shoes that create distinct image in customers mind. state. Sixth would be segment the market and customers as per region. package designs. Brands can play a number of different roles within the brand portfolio. In that way . Brands offer a number of benefits to customers and firms. Brand names. Fourthly to choose a proper media mix like advertisement . . sign.personal selling. Each brand name product must have a well-defined positioning. Thirdly to move the product from generic to a brand through skillful manipulation of the 4ps and blend them with current additional 4p‘s as per market and situation.

Maggi. . The challenge lies not only in becoming successful but also in staying successful. There is no rooni for complacency in market scenario. To come up with new idea about product and create a brand with distinct and different product range and maintain quality like jumboking. Amul. Tenth to innovate the product idea by adapting all these strategys . Brands are not immortal as they are vanished with lack of marketing mix and lack of maintaining proper marketing strategy.Ninth is to create brand image by keeping promising product available in the market with stable and regular supply.