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BRANDS & BRANDING

Differentiation
Session 3 & 4
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Differentiate or die!
Jack Tro t & Ste!e Ri!kin

"earnin# o$%ecti!es
T&is and t&e ne't session ( )nderstandin# t&e i*+ortance of differentiation and re,e!ance in $ i,din# $rands ( )nderstand t&e se of too,s for creatin# differentiation and re,e!ance - t&e Brand Asset .a, ator/ and t&e !a, e ,adder0

Differentiation & Re,e!ance

T&e 2&R Brand Asset .a, atorT3

T&e BA. findin#s

( T&e 4 +i,,ars of a $rand 5 t&e $rand ado+tion *ode, ( T&e en#ine of a $rand ( T&e 6o7er Grid

T&e 4 6i,,ars
Knowledge Esteem Relevance Differentiation
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T&e 4 6i,,ars
Relevance 5 &o7 re,e!ant is t&is distinction to :o r tar#et cons *er0 ;i#& re,e!ance is a f nction of t&e *arketer<s effecti!e *ani+ ,ation of t&e 4 6s 6rod ct/ 6ricin#/ 6,ace and 6ro*otion = to ena$,e t&e $rand to fit easi,: in t&e ,i!es of cons *ers0 Differentiation 5 t&e rea, or +ercei!ed distinction $et7een :o r $rand and :o r co*+etition0 It is a *eas re of &o7 distinct t&e cons *ers +ercei!e a +artic ,ar $rand to $e0 It is t&is difference t&at ena$,es t&e $rands to c&ar#e a +re*i * o!er co**odit: +rod cts0
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T&e 4 6i,,ars
Knowledge 5 T&ere is so*e a++ea, in a $rand t&at *akes :o $e,ie!e t&at :o kno7 t&e $rand as :o 7o ,d a c,ose friend0 2o kno7 its !a, es/ its +rinci+,e and its a*$itions0 ?e ca,, t&is co*+onent of $randin# 5 kno7,ed#e0 Esteem 5 &o7 7e,, does :o r cons *er @res+ect< :o r $rand0 It is a f nction of +ositi!e $rand e'+erience and $rand co** nication and essentia,,: t&e re#ard t&at t&e cons *er &as for t&e $rand0
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T&e 4 6i,,ars BcontdC

( T&e differentiator is t&e dri!er of t&e $rand ( )n,ess t&e offerin# is +ercei!ed $: t&e cons *er as $ein# different fro* t&e co*+etition/ t&ere is ,itt,e sco+e for a $rand ( ;o7e!er/ t&e difference * st $e *ade to $e meaningful and relevance0 T&e cons *er *a: $ : once on an i*+ ,se/ $ t a non5re,e!ant differentiator is not ,ike,: to ,ead to a re+eat + rc&ase

1A

T&e ne7 +aradi#*

Knowledge Brand Stature Esteem Relevance Brand Strength Differentiation
Leading Indicator
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Lagging Indicator

T&e 6o7er Grid

BRAND STRDNGT;

BRAND STAT)RD

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T&e 6o7er Grid

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3 t a, E nds and SBI 3a#n *s B1>>9C

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T&e 6o7er Grid for 3Es

High Brand Stature Mutual Funds Low Low High Brand Strength 11 Bonds Company FD Bank FD US 64

T&e 6o7er Grid for SBI 3a#n *s

High Brand Stature Low th!r Mutual Funds Low High Brand Strength 14 Tata, Birla MFs, Magnums US 64

)S 44 5 T&e 4 6i,,ars
( ;o7 does t&e $rand stack +
High

Low

Di""

#!l!$an%!

&st!!m

'nowl!dg!

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SBI 3a#n *s 5 T&e 4 6i,,ars

( ;o7 does t&e $rand stack +
High

Use SBI parentage; explain how it will benefit the investor in a competitive manner

Low

Di""

#!l!$an%!

&st!!m

'nowl!dg!

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T&e 6o7er Grid

1>

Disc ss so*e e'a*+,es of so*e Indian $rands on t&e +o7er #rid

2A

"etFs ,ook at so*e T. s+ots! ;6 "FGrea, Garnier Er ctis

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Eindin# a re,e!ant differentiator

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H,assica, too,s of differentiation

( )nderstandin# t&e &ierarc&: of c sto*er needs ( 3a++in# t&e cons *er *indset of co*+etiti!e offerin#s a#ainst t&ese needs ( Ga+ ana,:sis 5 is t&ere a !ia$,e $ siness +otentia, in t&at #a+I
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Ha!eat
( In *at re *arkets/ 7it& a ,ar#e !ariet: of $rand offerin#s/ it is n,ike,: t&at c,ear #a+s 7i,, e*er#e ( 3ost *arketers and $rands &a!e a,read: *a++ed o t t&e cons *ers< *inds and fi,,ed in t&e #a+s ( ?it& *ost +rod ct cate#ories de,i!erin# +arit: +rod cts/ t&e searc& for a !ia$,e need #a+ s&o ,d not $e ,i*ited to +rod ct attri$ tes/ $ t e'tended to +erce+tions ( 2o *a: e!en need to rein!ent t&e +rod ct

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D'a*+,e
( 6acka#ed teas in India ( Traditiona,,: se#*ented as
- "on# ,eaf teas - +ri*ari,: in t&e Dast/ and *ore aff, ent/ discernin# drinkers - HTH teas - Nort& and ?est India/ *id *arket drinkers - D st teas - So t& India/ and ,ess aff, ent drinkers
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;o7e!er
( 3an: *arkets &a!e t&eir o7n 7a: of *akin# teas
- G %arat - *asa,a is added 7it& tea to s it t&e +a,ate of ,oca, *arket - Aff, ent r$an drinkers &a!e $eco*e &ea,t& conscio s - t&e: are drinkin# #reen tea/ and not $,ack tea - 3ore discernin# sers drink tea 7it&o t *i,k and s #ar 24

Tata Tea
( ?e,, esta$,is&ed +,a:er ( ;ad ear,ier nderstood c sto*er +references and needs in ter*s of
- T:+es of tea dr nk - Geo#ra+&ica, differences - 6acksiJe +references - E,a!o rs +referred - Bre7in# differences
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Tata Tea
( T&e: &a!e a,so reco#nised t&e ne7er trends of tea drinkin# ( T&e: &a!e ,a nc&ed a n *$er of different !arieties of teas o!er t&e ,ast fe7 :ears ( If a ne7 co*+an: 7ere to enter t&e tea *arket toda:/ t&ere are n,ike,: to $e an: #a+ areas ,eft for t&e* to e'+,oit

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Rein!ent t&e +rod ct

( So*eti*es it is necessar: to rein!ent t&e +rod ct in order to create a re,e!ant differentiation

2>

Inno!ation can $e c ed e!en in t&e treat*ent

; tc& Dski*o T. S+ot

3A

T&e !a, e ,adder

( .a, e ( S $%ecti!e $enefits ( G$%ecti!e $enefits (hat do!s th! produ%t uni)u!ly stand "or How do!s th! produ%t mak! you "!!l (hat do!s th! produ%t do (hat do!s th! produ%t ha$! or %ontain
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( Attri$ tes

;o7 to se
( Start at eit&er end of t&e ,adder ( A,, t&e ste+s in t&e ,adder * st $e ,o#ica, ( Dssentia, to nderstand t&e co*+etitors !er: 7e,, ( 2o can differentiate at an: +oint in t&e ,adder ( 3ake s re t&is differentiation can $e s stained
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T&e !a, e ,adder BAC

( .a, e ( S $%ecti!e $enefits ( G$%ecti!e $enefits
Jet Airways gives you the finest flying experience under Indian skies You experience being cared for in a manner that you have never experienced before You arrive at your destinations totally fresh, as if you never left home You depart on time, you arrive on time, attended by a friendly crew 33

( Attri$ tes

T&e !a, e ,adder - re!isited BBC

( .a, e ( S $%ecti!e $enefits ( G$%ecti!e $enefits
Jet Airways gives you the finest flying experience under Indian skies You experience being cared for in a manner that you have never experienced before You arrive at your destinations totally fresh, as if you never left home You travel in modern aircrafts attended by a highly trained and efficient crew. 34

( Attri$ tes

T&e !a, e ,adder - re!isited BHC

( .a, e ( S $%ecti!e $enefits ( G$%ecti!e $enefits
Jet irways is the best business travel carrier under the Indian s!ies. You experience being cared for in a manner that you have never experienced before You arrive at your destinations totally fresh, as if you never left home You depart on time, you arrive on time, attended by a friendly crew
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( Attri$ tes

G r e'a*+,e s&o7s
( Descri$in# Jet Air7a:s as t&e @$est $ siness carrier< #i!es it a s staina$,e ed#e o!er co*+etition ( Attri$ tes ,ike ne7 aircraft/ 7or,d5c,ass trainin#/ + nct a,it:/ etc can $e co+ied $: ot&ers ( B t Jet can a,7a:s $rin# ne7 t&in#s to its c sto*ers $efore co*+etitors do
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?&ere in t&e !a, e ,adder is Airte, differentiatedI

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?&at 7e &a!e ,earnt

In t&e ,ast t7o sessions ( )nderstandin# t&e i*+ortance of differentiation and re,e!ance in $ i,din# $rands ( )nderstand t&e se of too,s for creatin# differentiation and re,e!ance - t&e Brand Asset .a, ator/ and t&e !a, e ,adder0

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