Session ISYLLABUS {low to establish brand positioning and the point of 2. How to build a relevant brand difference? 3. How to build a brand house? 4How to build a brand key? 5 How to develop brand positioning template? 6 How to design brand essence? How to design brand manifesto? 8 How consumers are related to the frame of reference in which your brand 1s competing” 9 How to develop category insights? 10 How to develop brand identity? 11. How to develop brand personality? 12. How to create brand values? 13 How to build customer based brand equity? 14Hovw to develop brand awareness, brand recall, and brand recognition How to develop brand vision? How to develop brand touch points? How to develop brand name, logo, and value statement? How to manage brand architecture? How to manage lusury brands? How to manage rebranding ané repositioning? How to do brand valuation How to manage brand love and brand hate? ‘How to manage PLC? How to manage product portfolio? How to manage supply Chain in branding? How to balance profit and sustainability?WHAT SHOULD YOU KNOW FOR LEARNING THIS COURSE - Needs and motivations (Theories of motivation) + Consumer behavior and cousumer insights + Rational and the irrational behavior + How do brands choose the person or group of people (segmentation)? + How do your prejudices impact segmentations? + Understanding of -why do people do what do they do? + Articulating value proposition + The competitive frame of reference + Point of difference, point of parity, and reason to believe + Positioning, perceptual map, and positioning statement + Product categoriesLEARNING OBJECTIVES + Develop mastery in broad and diverse toolkit of product and brand management + Become expert in the language ofa brand + Understand the rational and emotional elements behind brands + Think strategically when building brands + Understand how brands behave in the real world + Understand how people interact with brands + Assess how people live the brandEVALUATION a End Term Application based Quiz 10 Two best outof three Individual (no negative marking) Class participation 10 Assignments and Q/A Individual submissions BrandPRO simulation 20 15- competition and Group report and (competition) project 5- presentation presentation Live Project 30 Involves market research Group report and Develop a brand strategy and presentation ‘brand identity for the brand PataGROUP FORMATION * Team of six « Start from serial no 1 + Applicable for BrandPRO simulation and LIVE case + Equal mark to every member in groupDRANVE RYU SUVLULA LION COMPETITION + BrandPRO is web-based Brand management simulation software + BrandPRO allows participants to experience the power of targeting and brand positioning + BrandPRO participants have to develop strategies for their two brands over five simulated years + Itwill help youleam to move from product management to brand management mindset + Purpose of this simulation is to understand all elements of the branding strategy identify and choose target markets for your brands develop a value proposition for each brand (incl. product development decisions) refine positioning for each brand implement defined branding strategy move from product management to brand management mindsetHOW BRANDPRO WORKS? + https.//vimeo.com/151364181 + Your objective is to maximize the value of your company as represented by its Share Price Index (SPD) + The SPI evolves over time according to your yearly decisions. + The SPI value is based on multiple indicators including net contribution generated, product market share, revenue growth, and ete + Your company SPI is equal to 100 at the beginning of the simulation. + A final value greater than 100 means that you have created value overtthe 5 years. Otherwise, you have destroyed value ‘Your marks for BrandPRO simulation will depend on your group ranking for SPTPRESENTATION + Only one presentation + Tentative date- 17" sessionLIVE PROJECT- DEVELOP A BRAND STRATEGY AND BRAND IDENTITY FOR OM + ANT group (a group of entrepreneurs at Prayagraj) has recently launched A garbatti (incense sticks) and Dhoopbatti/Dhoop in local markets of Uttar Pradesh + ANT has launched these products under the mother brand name, "OM" + Products are launched in VFM (value for money) market. + They compete with products like Tiranga incense sticks and Dhoopbatti (attps://www tirangaagarbatti.comy/), and with economy range of large players like ITC. + The initial consumer response to their products has been good. + ANT is looking for answers to some questions. + You are expected to develop a brand strategy and brand identity for OM.PLAN + Work on five different aspects: 1 The brand segmentation- who is the core consumer segment the ‘OM’ brand is positioned for? The brand positioning- prepare a positioning statement, and a positioning map based on data (use MDS method). Include target customers, frame of reference, point of parity, point of difference, and reasons to believe. The brand house- the blueprint for everything that you will communicate about the ‘OM’ brand The brand manifesto- describe why this organization exists, its purpose, and why people should care about the “OM’ brand sidentity brand touch logo, the name, the colour, the font,, the typography, overall look and feel, and the photographANSWERS TO FOLLOWING QUESTIONS OF ANT GROUP 1 1. In the nest five years, what all related products they should have ia ther product portfolio. (e.g products like Sambrani ete. are tins Hedy Consiibeatcn) Wat chotid Sethe brand chests fate gohan nee OP 2, Currently OMincease sticks have only two variants, In range pack two diferent kinds of agerbatt remixed viz. sandal and ‘Honersconso Hapinace Velion puck as seis wi loban Masthace an flower cons Laplace Sans combaions of ‘Hagrapce ormige and yeliow packs of Dhoop also const. What other vanants they cancome up within er ture? They are Sounidaang asimane aud roseltingrance anni Aaty is td Sal packs Le Ges tase Should be is pct of taacy pack” Should hey eT 2 mnoathly tk or Shnily pack? Cusresty mom’ faaady packs of competion are avilable sa the mage of Re. 3550. 3. Theis two variants of incense sticks are available in two different colow packs, Do they need to change the colow of packs i per the Cann or tabonld remain constaat®? What colour combssaton Sali be good far thems meen 4, Currently Sambrani is availabe in large packs Somnational players. Ia Rs. 70-85/-« Samabrani pack of 12 comes. Can th citer mallee packs? a rave m o 5, What all schemes they should offer to retailers and distrisutore to promote their prodscts? 6. What promotion activities they can carry cut atlocal level to sell these products? 7. Forsowscing of good quality pesfuumes what all markets they should rely upon? 8, Should they start selling thei products through Amazon” If yes itshould be inthe economy segment or premium segment? ied eel beta same hey ilaaid ccbercnlate noma ace YSsemererrs ®PRESENTATIONS- LIVE PROJECT + First presentation- Three minute each -14* Oct + Second presentation- Three minute each -11% Nov + Third presentation- Ten minute each - 19 and 20" sessionWINNER TEAM + Marks * Cash prize + CertificateCLASS PARTICIPATION + Each group will be provided one case + Present the case and solution to class + Other groups will be evaluated on basis of QA + Only group leaders of other group to ask questions (group leader will be on rotation basis for each case for CP) + Other criteria- Attendance.TIVO CASE + Behavioural factors: When do they decide to buy our product? when do they actually buy your product? what is the time to take the purchase decision? do they buy in store or online? how often do they buy? whet quantities do they buy and how often? are they buying only for promotional schemes? are they loyal customers? are they advocates of your brand and alot more that you can imagine to ask! + Motivational: What is it that motivates a person to take a particular action say. why click onan. online advertisement of your product? why spend x amount of time browsing? Why walk into your store? whet is the motivation to buy your product? Why be an advocate of your brand?THE ORIGIN AND HISTORY OF BRANDING + Branding is ancient concept + itis referred to a mark of ownership made by branding + The branding term derives from the Old Norse (the ancient North Genmanic language) word ‘brandy’ or “to burn,” + It refers to the practice of branding livestock, which dates back to the Indus Valley + Cave paintings from the Stone Age suggest that early man might have marked cattle with symbols drawn im paint and tarBRAND AS MAKER fg 5. og IDENTIFIER = + Brands were started to be used to identify goods from a particular makers + Archaeologists have many unique potters’ marks in use during the first three centuries of the Roman Empire + Pottery makers from various countries (China, India, Greece, Rome etc) had used different engravings to identify the maker of ceranuc goods the type of material usedTHE BIRTH OF CORPORATE BRANDS + In 1901, a man named “James Walter Thompson’ published “The Thompson Blue and Red Books of ‘Advertising’ and explained the concept of trademark advertising + hitps:/hvww jwt.comv/histo + In the 1950s, several leading consumer packaged goods companies-including Procter & Gamble, General Foods, and Unilever-developed the concept of brand management ~ Companies started intro dicing slogans, mascots, and radio jingles to promote her brands, no ust thet + Gradually, the branding advanced from just putting 2 logo on a product to giving the company a strategic personality and putting a human face on the brand + P&G - Ivory Snow - My Mommy Needs Soap - Vintage Commercial - 1950s - 1960s + hitps/hvww youtube.com/watch?v=u5j0Q8i__4o + VINTAGE 1960 TIDE DETERGENT COMMERCIAL. + hitps/hvww youtube com/watch?v=0U-Ks9vwiSQSOME OLD BRANDS ARE STILL IN EXISTENCE * Tate & Lyle Sugars- withits gree-and-gold packaging- having remained almost unchanged sinceWHAT IS A BRAND? +A brandis an intangible concept. “It is a way to create difference +A way to connect emotionally with customers *People fall in love with brands, trust them, and believe in their superiority +A brandis a promise that is reflected in a customer’s experience with a company +A brandis a set of associations linked to the name, mark, or symbol associated with a product +A brand is present in the minds and hearts of customers +A brandis built ané protected by the whole organization +A brand has a history +A brand is reflected in everything the company does ‘Your brandis what other people say about you when youre not in the room Jeff Bezos (Amzon)ASSOCIATIONS + A brandis all the things you think when you see a name, mark, or symbol + When you see Apple, you might think innovation, simplicity, and design. You might thunk of the late Steve Jobs and his distinctive black turtleneck. + When you see Caterpillar, you might think tough, mgged, big, and construction. + When you see Tata, you might think relicbility, efficiency, and values. You might think of the Ratan Tata and and his dedication. + Brandis often reflector of its leader (Reliance, Tesla, Tata, Patanjali, Microsoft) + It reflect its leader’s thinking, values, personality, and relationships.BRAND SALIENCE + It is the propensity for a brand to be noticed and thought ofin buying situations’ + Salience is much more than simple top-of-mind awareness (TOMA) + Itis a more general reflection of the network of associations with the brand in a buyer’s memory + The larger and ‘fresher’ this network of memories is, the greater the chance that the brand will be noticed across different buying situations. + This depends on the quantity and quality of those associations + The quality comes from distinctive and consistent icons, imagery and experiences that are relevant to the brand and the buying contexts. + These associations are built using experiential clues that send a consistent and strong messages (built around the brand’s core values) to the minds of customers and prospects, maximizing the signal and minimizing the noise that reaches consumers.BRAND ASSOCIATIONS MAY NOT ALWAYS BE POSITIVE + A brand is nmuch like a reputation and it may not always be positive + Many brands have amix of positive and negative associations + Coke (as well McDoanld) has positive associations, including refreshing, tasty, and happiness, along with negative associations around health. + Uber has positive associations around ease, value, ad practicality, and negative associations from a sexist corporate culture + Malaysia Airlines developed associstions of tragedy and danger after two tragic crashes. + Facebook has developed negative associations around abuse of privacy. + Trump (gs well as Modi is either a positive brand associated with fresh thinking, toughness, and disruption, ora ‘brand with negative associations, such as distrust, polarization, and greed.BON RANMA NEES DN Ps NY SA NB KN LUXURY ITEMS OR CONSUMER PACKAGED GOODS? + Medical and pharmaceutical companies have built strong brands (Apollo, Viagra, Lipitor, and the Mayo Clinic) + Business-to-business companies have established exceptionally powerful brands (McKinsey, Goldman Sachs, and Baker McKenzie) + Entertainers have developed strong brands with clear sets of associations (Taylor Swift, Rhianna etc) - Nonprofit organizations and religious groups are brands too (SOS Children’s Villages, Save the Children, Greenpeace, the Sierra Club, Amnesty Intemational, etc)IS A BRAND PERSON LIKE YOU AND ME? + A brand is the totality of perceptions - everything you see, hear, read, know, feel, think, ete. - about a product, service, or business. + Abrand holds a distinctive position in customer’ s minds based on past experiences, associations and future expectations + Abrand isa short-cut of attributes, benefits, beliefs and values that differentiate, reduce complexity, and simplify the decision-making process + Brands cannot be built by merely creating some fancy advertising + Building successful brands is about building availability: physical availability in the marketplace and ‘mental availability in the mind Brand is a promise that we make to society and trust they put in youDO PERCEPTIONS MATTER MOST FOR BRAND? + Consumers rarely see only a product or service, they see the product together with the brand + How cousumers perceive the product is shaped by the brand. + The question generally isn’t which product or service is best; the question is which product or service people think is best. v Is Google the best search engine in the world? v Is AitIndia the worst airlines in india? v Does Tesla make the finest electric cars? v Does McKinsey do the best strategic thinking?BRANDS HAVE THREE PRIMARY FUNCTIONS + Navigation: Brands help consumers a choose from a bewildering array of / choices. + Reassurance: Brands communicate the intrinsic quality of the product or service and reassure customers that they have made the right choice. Reassurance + Engagement: Brands use distinctive imagery, language, and associations to encourage customers 10 identify with the brand.SOME TESTIMONIALS: INTERVIEW EXCERPTS + Customer 1: “Forme a brandis to be comfortable buying a product and to trust it, to trust the product, and to trust the brand at the end’ + Customer 2: “4 brandcan be what a consumer thinks of a, once she or he listens the name of the brand. What tupe of promise this brand is making to a consumer and what benefits it can provide to them’ + Customer 3: ‘4 brand could be like a sort of promise a company makas to you, or maybe also an experience you enjoy when you buy any specific product’ + Customer 4: ‘prefer buying a brand because if the product doesn't workwell, there's going to be a company that's going to provide a solution or replace the product ifnecessary" + Customer 5: think that it helps very much difference, some products from other one. And Ithink brand: also provides credibility’WHY DO YOU NEED A BRAND? + A strong brand provides rational and emotional benefits + A brand provides the tmist to consumers + A brand makes customer feel comfortable + A brand provides familiarity to customers + A brand provides the credibility of consistency + A brand helps achieve recognition + A brand helps in setting the expectations + A brand is source of differeatiation + A brand commands price premium, + A strong brand is capable of building loyalty + A brand generates referrals + A brand is great medium of WoM publicity as people love to tell others about the brands they like + A brand provides recognition to firm + A brand provides motivatioa, clarity, and direction to employees + A strong brand creates value by generating a strategic assetHOW TO BUILD A BRAND ®iasessieseat nctal aces ‘that affect customer perception and @ Business Description experience through: What we do. J te cetbasness we are in shoud defn cterings and indcat who the competitors ae @ Positioning Statement/ Eee can ett v STP a benefits the client) get from Value Proposition niaeing with thebrard, The way the «Competitive frame of How we do what we do. brand addresses client stay awake issues. reference The target customer, the customer benefits and REASONS TO BELIEVE v POP and POD the brand's key differentiating attributes that are Proof points enablers that support V_ Reasons to believe Used to deliver he promised benefits the claimed cen: benefits. V 4PeTPs . W Identity elements @ Character/Personality VY Vision and purpose V Core values Who we are. Key atiributes, personality, descriptors as if brand were a person. Brand Promise Brand Identity Messaging Matrix What audiences get as Voice, communication _Specific messages for a resultof arelationship style, tone, sound, each audience and media with the brand. look and feel, visuals eBRAND POSITIONING + The positioning articulates how the company would like consumers to think about a brand + The positioning is done by framing the brand in terms of a familiar way of achieving a goal POP) and highlighting a basis of superiority (POD) relative to other alternatives in the frame (CFOR) + A brand’s positioning strategy can be summarized in a formal positioning statement that includes four elements: a target, a frame of reference, a point of difference, and a reason to believeTHE BRAND POSITION STATEMENT NG A brand positioning statement answers the question, “How do we want targeted consumers to think about the brand in relation to other brands?” For [target market] who [target market need], [your brand name] provides [competitive frame of reference/category] that [POD] because [reason to believe] “Apple ‘For consumers who want to feel empowered by the technology they use regardless of their level of skill, Apple offers electronic devices that make you feel smarter because they incorporate leading-edge technology that i sophisticated, yet mtuitive to use. -Lite Beer from Miller For 21-to-34-year-old males with blue-collar occupations, Lite is the great-tasting beer that lets you dink more without feeling filled up because it has wer calocies thansegular beer. ‘The rergern me appl posttonmg zatonentts deterded terms oft Denetoralcharetrinics (ecnoogie! Skil), wheraas he wrgrin the Liteposizoning statement described in wras of demographic characterisFRAME OF REFERENCE + The most common way to represent a brand’s fiame of reference is to specify the category in which it holds membership + In order to be credible when claiming membership in an established category, a brand mustshare key features (“points of parity”) with other category members. Ex Apple + The frame of reference can also be conveyed by comparing the brand to a different category whena brand pioneer a new category EX- Uber When the iPhone launched in 2007, the brand name and advertising focused on announcing the brand’s frame of reference: a phone. This was important because at the time Apple was known for making computers, not phones Uber used an alternative category (toxi) as a frame of reference when it pioneered the ride-hailing concept Lyfi, which followed Uber into the category, relied on consumers” understanding of ride-hailing and used that category rather than taxis as its frame of referenceCOKE ZERO SUGAR + What should be its competitive frame of reference? + flagship Coke brand or Diet Coke brand + Taste and diet ery ee, fe) aoe 6 )POINT OF DIFFERENCE + Specify benefit that serves as a point of difference from competition. + Benefits are abstract concepts, such as tasty, healthy, empowering, convenient, safe ete + The benefit selected should be important to consumers and one that the brand can own + A brand’s ownership of a benefit is enhanced when it is supported by a reason to believe, = Reason to believe is concrete proof that gives credence to the claim that a brand has the benefit Apple will make the consumer smarter Louis Vuitton’s luggage is superior Perrier is the most refreshing sparkling mineral water eREASON TO BELIEVE + Apple will make the consumer smarter is the series of cutting-edge products the company has prodnced—Pod, iPhone, iPad, and Macintosh computers + Louis Vuitton’s luggage is superior because of the brand’ s travel heritage + Perrier is the most refreshing sparkling mineral water because it comes from a spring in ‘Vergéze, France + Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials because of Nike's commitment to innovation and investment in the latest technologies.HOW TO SUSTAIN A BRAND’S POSITION OVER TIME? + 1)Depict your brand ina contemporary context....Ex healthy diet positioning of Grape-Nuts cereal + https/www grapenuts com/our-story! + 2)Switch from an attribute reason to believe (that is no longer new to consumers) to an image reason to believe a brand benefit..Ex Surf excel .. the focus changed fiom cleaning to community, hamony, and sharing + bttps:.//www youtube.com/watch?v=SK0aF hkyka8 + 3) Laddering up method. ..relate the brand to increasingly abstract and enduring consumer goals. Ex Volvo’s commitment to safety + Volvo present the enhanced protection as abstract goal, which in turn implies the emotional benefit of peace of mind. + This emotional benefit I the basis for implying the brand’s essence, which is “Volvo is the brand for people who embrace life.”+ How can... [brand]... make a bigger difference in the lives of our consumers in a way that makes sense coming from this brandCATEGORIES OF BRANDS « Manufacturer brands (also called national brands) developed and marketed by manufacturers of the product- Ex- Levi's, Danone and BMW + Own-label brands (also called private label brands , store or dealer brands)- developed and marketed by wholesalers or retailers. There is no link between the manufacturer and the brand. Ex- STOP of Shoppers! Stop; ‘Westside’ brand of Westside; Golden Harvest of Big Bazaar, Byford of Pantaloons; St Michael of Marks & Spencer, UK. + Generic brands- indicate the product category. In fact, the concept isa contradiction in terms. Generics are in fact brand-less products. They are usually sold at the lowest prices Ex- pharmaceutical productsBRAND STRATEGIES ‘Cannibatication is inevitable, but it?s much better to steal market share from yourself than to sit back and let somebody else do it?LINE EXTENSION + Sticking to existing product categories and using the same brand name for all new product introductions in a product category iscalled line extension + Ex- Amul vanilla ice-cream, Amul chocolate ice-cream, Amul hazelaut ice-cream; Lux gulab, Lux sandal; Kellogg’s K Chocolate delight , Kellogg’s K Fruit & Yoghuct cereals + Line extension improves the competitive position of the brand by offering consumers more variety + Marketers use line extension to expand the variety of their offerings. try to accommodate the needs of new ‘consumer segments, react to successful competitive products, crowd the product space and deter competitive entry. enhance the image ofthe parent brand or ty to command more shelfspace fiom retailers + There is strong spillover effects from advertising the line extension on choice of the parent brand. + There is isk that original brand may lose its meaning and clear positioning + Also, thenew product may cannibalize the company’s other products instead of taking market share away from the competition + Too many line extensions can lead to over choice, confusing consumers about which option would be ideal for them (called CHOICE-OVERL OAD)BRAND EXTENSION (BRAND STRETCHING) + when an existing brand is used to market products in a different product category, Ex. Harley Davidson footwear and perfume, Armani underwea, Godiva ice cream and Nesquick cereals + It is more effective than new brand introductions + It limits the risk of failure of new product introductions by capitalising upon the image and reputation of a successful existing brand + It also saves the huge advertising expenses of launching a totally new brand. + The ricks is also high because in case brand image does not fit well the new product category or the new © market segments, the new introduction may not be successful... Ex- Harley Davidson perfume; Colgate; B underwear. + Sufficient advertising support is required to overcome this problem. + Another risk is of brand dilution , This occurs when the brand name is used for so many different product categories that the brand personality becomes fuzzy and the brand’ Value deteriorates + An abstract characteristics of brand origin is required to overcome this problem (Ex- Virgin for fun, hip and subversive) https: //sloanreview.mit.edwarticle/understanding-and-managing-the-brand-space!CORPORATE BRANDING + The name of the company is used for all the company’s products. + This strategy is often used by service companies like banks and insurance and by high technology products. for which the reputation and the endorsement of a reliable company is very important + Ithas same advantages and disadvantages + Moreover, itis relatively inflexible as it can not be used to target a specific niches that are not associated with the corporate reputation + Ex. Samsung got rid of Wiseview app, Tantus Tv and YeppMULTI-BRANDINC + In it different brands are used for products or product ranges in the same product category + This is frequently used by companies like Procter & Gamble, Unilever, Mars ete. + However, the traditional multi-branding companies also use brand stretching. Ex-, Fairy and Dreft are brands used in both dishwashing liquids and laundry detergents + This strategy permits finer segmentation and positioning as each brand is fully capable of building its own personality and perceived benefit and of appealing to the specific segment it is targeted at + Disadvantage of this strategy is that individual brands cannot benefit from the leveraging effect of existing brands + Companies use this strategy when they introduce a product in a new product category. But when none of the company’s brands is suitable for use in the new product category. For instance, Toyota established a new name for its luxury carrange, the Lexus.BUILDING GLOBAL BRANDS + When a company introduces a product abroad, it can also choose between an extension or a ‘new brand’ strategy + Global brands can range from being globally consistent to locally adapted + Most of the global brands has global reach, but pursues a localisation strategy + Ex- Coca-Cola, Nike Gillette, McDonald ete + McDonald’ is locally adapted: it does use the same logo and colours, but adapts its service and products to fi t local needs. + Gillette 1s consistent around the world because men’s shaving needs are, world wide, more or tess the same. + YouTube can be situated in the middle of the continuum: it has globalreach, but pursues a localisation strategy because it realises that people sharing the same culture will be more likely to share content.LOCAL BRANDS + Local brands oft en have a long tradition in specific countries and are often market leaders in their home country. Ex- Thumbs Up is the leading coft drink in India leaving Coca-Cola behind; Valentine is a more powerfull paint brand in France than Dulux + Local brands provide following benefits: + (1) the deep-rooted and powerful bond that has been established with local consumers (ie. consumers often buy the brand their parents bought), + (2) being perfectly adapted to unique local tastes or needs, + G) local operational and logistical advantages and + @) strong community-ties + These local brands are very attractive for global companies, and more and more global companies extend their brand portfolio with local brandsDUAL BRANDING STRATEGIES + Three categories of dual strategies can be distinguished 1. endorsement branding 2. ingredient branding 3. co-brandingENDORSEMENT BRANDING + In it two brand names of the same company are used, + The main brand serve as a quality label or endorsement + This strategy is situated somewhere between an extension and a multi-brand strategy + Ex-Kellogg’s (Comfl akes, Rice Krispies, Coco Pops, etc.)INGREDIENT BRANDING + Init a brand of a basic ingredient of the product is mentioned next to the actual product’s brand name + Ex. Examples are Intel (Intel inside) .., Nutrasweet, Woolmark, Tetrapak ete + A prerequisite for ingredient branding is that the ingredient has to be essential, differentiating and of consistently high quality. = The advantages are that both brands can benefit from the synergy effects of combining the two strong brands. + Furthermore, communications costs can be shared.CO-BRANDING + Init two or more brands are simultaneously presented on one product. - Co-branding can range from advertising multiple brands in one ad (e.g. featuring Shell and Ferrari together) to co-developing a product (e.g. Braun and Oral B launching an electric toothbrush). + Itmay be used: 1. to leverage positive brand equity of the partner brand (¢.g. LG worked together with Prada to launch an exquisitely designed phone), 2. to share or decrease advertising or development costs (e.g. Coca-Cola and Heinz Plant Bottle partnership m which Coca-Colais partly reumbursed for its development costs of the Plant Bottle whereas Heinz can use the bottle without having any development costs) 3. to gain access to new markets or distribution channels (e.g. the Belgian women’s magazine Libelle which asked the apparel retailer ES to launch joinfly a women’s collection, giving Libelle access to the fashion market and to the outlets of E5)BRAND STRATEGIES ‘Cannibatication is inevitable, but it?s much better to steal market share from yourself than to sit back and let somebody else do it?BRAND ARCHITECTURE + Itis the organizational structure of a company’s portfolio of brands, products, and/or services. + It provide clarity around the organization of your offerings and how they are understood by consumers + It also influences customer behavior by maximizing the transfer of equity between your brands and sub-brands + Brand architecture is ultimately about managing perception of consumers about your businessYOUR CUSTOMER’S MENTAL ORGANIZATION + The key to brand architecture is your customer’s mental organization—how they conceptualize your business and its portfolio of offerings, and how each offering satisfies their needs. + An effective brand architecture includes an integrated system of names, symbols, colors, and visual vocabulary informed directiy by the consumer thought process + Ifa customer has an existing relationship or positive association with a master brand, for example, they are much more likely to try one of its sub-brands. + For your internal customers, it can serve as a valuable tool for optimizing marketing efficiency and performanceBRAND ARCHITECTURE TYPES 1. Branded house, House of brands, 3. Endorsed, 4 Hybrid + A branded house includes a strong master brand with divisions + A house of brands includes a collection of distinct, familiar brands under a parent brand + In an endorsed architecture, there is a parent brand and associated sub-brands + ahybrid brand architecture comprises some combination of the aboveBRANDED HOUSE (BRAND EXTENSION + it includes a strong master brand d. divisions that feature the master brand name alongside a product or service + Ex-FedEx, Apple, John Deere, Harley Davidson, Virgin, Google + Positive and negative spillovers FedEx. Oimek eaia seHOUSE OF BRANDS (MULTI-BRANDING + Tt includes a collection of distinct, familiar brands under a parent brand that customers may or may not be aware of, + Ex: Procter & Gamble, Unilever, Nestle, General Motors + Specialized value propositions for specific segment needs- tailor different features that appeal to different consumersENDORSED ARCHITECTURE (ENDORSEMENT BRANDING) «In it there is a parent brand and associated sub-brands, all of which have unique market presences + The sub-brands benefit from their associztion with, or endorsement from, the parent. + Ex. Kellogg, Ralph Lauren, Caterpillar, Honda, Mariott e a, PROTER HOTELS. Residence JW MARRIOTT. art D DELTA arrott ee Mores yg aEttett |. COURTYARD — a Marriott. ure thane o- seen AOU NN. Se SI i DITICN !HYBRID BRAND ARCHITECTURE + It is a combination of the two andit is often more of an ad-hoc approach borne from mergers and acquisitions, rather than a proactive brand strategy. + Itis very complex + Ex- Alphabet, Google is allowed to operate in search and advertising, while smaller brands, like Nest, Sidewalk Labs, and Calico operate as individual companies in their own specialized verticals. + Ex: Alphabet,Coca-Cola, Microsoft, Amazon askville == buyvip Aishelfari 5 «weet! Ba oe twanteccom Mit ean ad cong sour. LOVEFILME pet Al pa, Som ON AOROLE OF EFFECTIVE BRAND ARCHITECTURE + Target the needs of specific customer segments + Clear positioning and messaging + Considerably reduce marketing costs + Facilitate growth and bolster stakeholder confidence + Enhance customer awareness + Build and protect brand equity (intangible value)BRAND PORTFOLIO + A brand portfolio is defined as the set of all brands and brand lines that a ‘company possesses 1. Bastion brands 2. Flanker brand 3. Fighter brands 4. Prestige brands + Purposes are 1 tomaximise market coverage to serve different market segments 2. To minimize brand overlap so that brands do not compete among themselves 3. Everybrand in the brand portfolio can add value to the company. Criteria used for selecting brands 4. brand appeal , - how well the brand meets the expected consumer needs over five toten years, 2 prospects for sustained growth ,- indicate brand potential to justify significant investments in technology. innovation and brand communicationsBASTION BRANDS + They provide most profit for the company, + They often follow a premium price strategy + They are characterized by a high level of psycho-social meaning + They are generally considered as high-performance brands + To protect bastion brands, flanker, fighter or prestige brands can be introduced + Ex- Procter & Gamble’s shampoo bastion brand is Panténe, while Head & Shoulders can be considered as a flanker brand+ A flanker brand is meant for niche segment , follows a high price-profit ratio as the bastion brand, characterized by a high psycho-social meaning and perceived performance level, but usually appeals to a different, smaller market segment (niche). Ex- Gold plated iPhone + Fighter brands are sold at a lower price, situated between the price of the bastion and discount brands. Their quality perception is usually lower than that of the bastion and flanker brands. + Prestige brands are high-quality, Iuxury brands targeted at a smaller segment, looking for status and high psycho-social meaning, Ex + P&G introduced Cheer to protect Tide laundry detergent. + Philip Moris introduced Basic as a fighter brand to protect Marlboro, + the Volkswagen Group acquired Seat and Skoda to safeguard Volkswagen. + Toyota and Nissan have Lexus and Infinity as prestige brandsBRAND PERSONALITY + Brand personality is the collection of emotional, intellectual, and behavioral patterns unique to abrand that is consistent over time + (Jennifer Acker, The Journal of Marketing Research, 1997) + Just like people, brands have recognizable traits + The authenticity and consistency of these tmits is what separates a strong brand from a weal one. + Five distinct dimensions of brand personality: sincerity, excitement, competence, sophistication, and ruggedness + Each dimension is further defined by traits + The combination of these traits makes a brand distinct and recognizableAAKER’S BIG FIVE BRAND PERSONALITY Encitement- Brands with the traits of daring, energetic, imaginative, and cutting-edge. Ex- Nike, MTV, Disney, GoPro, Red Bull 2. Competence- When brand is reliable, intelligent, and successful. Ex- UPS, Volvo, Microsoft 3. Sophistication- When brand is characterized by tuaits like refined, luxurious, and chaning Ex- Hermes, American Express, Apple, Mercedes, Nescafé 4. Sincerity. Brands with the traits of wholesome, honest, cheerful, and down-to-earth Ex-Campbell’s Soup, Hallmark, Pampers, 5. Ruggedness- When brand traits include adventurous, outdoorsy, and tough. Ex-Jeep, Levi's, Jack Daniels, CaterpillarCASE HOW HYUNDAI BUILT A STRONG BRAND? + In its early days, Hyundai was perceived as a lower-quality brand. + Taking Japanese automakers as an example, Hyundai seriously invested in quality and kept making its cars better and bettar + In the late 1990s, Hyundai surprised the industry by offering the best automobile wamanty in the industry, a safety net that created consumer confidence + Hyundai introduced Hyundai Assurance Plus early in 2009 + While other brands were competing on price discounts, Hyundai offered its customers peace of mind. ~ Hyundai's Assurance Plus assured the customers that if they lose theirincome, Hyundai would make instalment payments forthree months while they got back on their feet. + After the introduction of Assurance Plus, Hyundai’ sales were up 14% as compared with the same period one year before + Also, in the following years Hyundai made sure to keep on investing in quality and innovative designs, leading to a consistent inerease in brand value+ Brand associationsBRAND ASSOCIATIONS + Brand associations is defined as “anything linked in memory to a brand + According fo the assocative-network memory theory, consumer nowledge ofa brandis represented conceptually as a nenwork (schema) of stored information nodes in consumer memory + These nodes are interconnected by links, referred to as associations. + Whenever a node is primed, it becomes a potential source of activation of all other nodes in consumer memory through a process of spreading activation + If enough nodes are activated across the network to break the recall threshold, recall occurs + Itis these sets of brand associations in consumer memory that are reflective ofa brand’s equityHOW DO BRAND ASSOCIATIONS DIFFER IN FEATURES? 1. Strength - Associations have different strengtis, that is, they have stronger or weaker links to the brand’s node in memory (exposure to marketing messages) 2. Favorability- Associations differ in temns of favorability, Le. have differences in hiow them associations are evaluated, positively or negatively 3. Uniqueness- Some associations are more unique than others (differentiation ) 4. Number of associations. Number of brand associations influence brand awareness, and the effectiveness of advertising activities 5. Relevance- The relevance of the association is defined as how much people perceive the association as a valuable, important, and purchase decision driving feature for a brand within the product category. Successfil branding is founded on creating distinctiveness in manner that are meaningful and relevant to customers.EX + Core associations for Nike v innovative technology, v high quality/stylish products, V joy and celebration of sposts, v maximum performance, v self-empowennent and inspiring, v locally and regionally involved, and v globally responsible. Starbucks Mental Map sophisticated Seattle me Ne golors// _- coffee { Vn consistent Low convenient/everywhere / whole relaxing — Ss | comfortable — predatory treat/reward — peaty S27 ~~ fadaish/trendy \ ~~ snobbish/pretentious, hol N\DEVELOPMENT OF BRAND ASSOCIATION MAP + Tt consists of five main steps Determine the competitive set. Generate free associations Collect response latency data for strength of associations. ‘Measure uniqueness, relevance, and favorability of associations Construct the strategic brand association mapsDETERMINE THE COMPEIIIIVE SET + Done with a set of four to six competitive brands within the same category. + Brands can be chosen either by consumers using the category as a prompt, or, the marketer can identify four to six brands for inclusion =Ex- list the brands of Shampoo for which you were familiarGENERATE FREE ASSOCIATIONS + Participants are cued with each brand name and asked to give the first four associations that come to mind (think about the brand name afier each response) =give the first four associations that come to mind « This process can result in several hundred associations « The associations are highly personal to a particular respondent, e.g. “the brand my sister uses,” and should be dropped as they do not represent the market's view of the brand + Other associations are close in meaning and should be combined. For example, “smells good” and “nice smell” would be combined into “smells good.”COLLECT RESPONSE LATENCY DATA FOR STRENGTH OF ASSOCIATIONS. + Nowa large list of associations are generated using those brand names as prompts + Participants engage in a response latency task in which they will simply respond “yes” or “no” to each brand/association pair. + Their response (yes or no) as well as their speed of response (response latency) is recorded (with help of stop watch/manual or software) =respond “yes” or “no” to each brand/association pair. + (practice trials can be done to familiarize participants and to get their motor skill component to a fairly constant rate) + Categorize each brand/association pair as ether “strong” (Yop 25 percent of response times), “met Hum (middle 50 percent of response times) or “weak” (bottom 25 percent of response times)UNIQUENESS, RELEVANCE, AND FAVORABILITY MEASURES + Participants rate each association on favorability, relevance, and uniqueness using a seven-point Likert type scale + (Bx: not favorable, neutral, or favorable; not relevant, neutral, or relevant) + The association scores on favorability, relevance, uniqueness, and strength scales are then categorized into one of three groups (low, medium, or high) based on a quartile analysis of the mean score for each associationCONSTRUCTING THE BRAND MAPS + Each brand is presented as the center of a constellation of associations + Each of the features of brand associations is represented in this brand map. + Strength of association is represented by the thickness of the line between each association and the brand node + Favorability of association is represented by the color of the circle + Uniqueness. Distance from the brand represents association uniqueness. ( Associations close to the brand are highly unique and associations far from the brand have low uniqueness) + Relevance- Circle size depicts relevance. Relevant associations have a larger figure than less relevant associationsEX- BRAND MAP OF REESE’S PEANUT BUTTER Source: Till et al. (2011), p. 96+ Do you think that associating the Paper Boat with sel£concept useful? Why?SELF—BRAND CONNECTION = Self—brand connection capture the extent to which a consumer feels thata brand can be linked to his or her self-concept + Consumers form “self-brand connection” based on the congruency between the individual’s ‘selfimage” and the “brand-image + Consumers use specific brands as a narrative text ro communicate who they are + Ex: individuals primed with the “Apple” brand, tend to display more creative motivations.DEVELOPING DEEP RELATIONS + Selfbrand connection theory posits that consumers develop a deep relationship with the brand because they incorporate brand associations into their self-concept + When choosing brands, consumers especially prefer products that are congruent with their + Consumers use brands to construct their self-concept and express their self-identity, which enables them to form a psychological bond with the brands + Brands are often used and consumed by consumers to identify and communicate who they are, suggesting that brands have rich symbolic benefits for consumersSELF-BRAND CONNECTION MEASURES + This brand reflects who Iam + Ican identify with this brand + I feel a personal connection to this brand + Luse this brand to communicate who I am to other people + I think this brand helps me become the type of person I want to beSELF—-BRAND CONNECTION APPLICATIONS + Teenagers start to incorporate brands into their self-concepts and use them to define and commminicate their sense of self as well as judge others + Brand communities exist whereby users of a particular brand forge feelings of communal solidarity and cutture through their shared experiences and interactions + Brands provide “cultural capital” to brand communitiesBRAND KEY FRAMEW@8 A positioning toolEX- DOVE BRAND KEYFAVORABILITY, STRENGTH, AND UNIQUENESS OF BRAND ASSOCIATIONS « Favorability of brand associations- The success of a marketing program is reflected in the creation of favorable brand ‘associations. + Strength of brand associations Strength is a function of both the amount or quantity and nature or quality of the processing the information + Uniqueness of brand associations- The essence of brand positioning is that the brand has a sustainable competitive advaniage or "unique selling proposition" Jnstill a belief in customer that the brand ha attributes and benefits that satisfy their nee¢ and want Quantity (Le, how much a person thinks about the information) and quality (ie. the manaer in which a person thinks aboat the information) USP gives consumers a compelling reason for buying that particular brand (These differences may be communicated explicitly by making direct compsrisons with competitors or may be highlighted implicitly without stating a competitive point of reference )DIMENSIONS OF BRAND ASSOCIATIONS 1. Product attributes, 2. Product benefits, and 3. attitudesPRODUCT ATTRIBUTES + Product-related attributes are defined as the ingredients necessary for performing the product or service function sought by consumers (product's physical composition or a service's requirement) + Non-product-related attributes are defined as external aspecis of the product or service that relate to its purchase or consumption, basically 1. _ price information/ packaging/product appearance information user imagery (ie, what type of person uses the product or service) 3. usage imagery (ie., where and in what types of situations the product or service is used). + Personality deseriptors/associations with a product arise most often asa result of inferences about the underlying user or usage situation. - Brand personality attributes may also reflect emotions or feelings evoked by the brandPRODUCT BENEFITS + Benefits are the personal value consumers attach to the product or service attributes-that is, what consumers think the product or service can do for them, - Benefits can be distinguished into three categories based on the underlying motivations: 1. Functional benefits (Linked to physiological and safety needs) 2. Experiential benefits (satisfy experiential needs such as sensory pleasure, variety, and cognitive stimulation) Symbolic benefits (relate to underlying needs for social approval or personal expression, self-esteem, prestige, exclusivity, or fashion-ability, socially visibility)BRAND PYRAMID + Abrand pyramid is a framework that helps to answer most, of the following fundamental questions in a diagram that can be easily shared and communicated across an organisation ‘The sen of your brn ane of band in human characters + 1. How would you describe your business in one sentence? + 2. What customer problem are you solving? What’s the benefit? + 3. What's the emotional value of your produc’? How should the customer feel after using your product? + 4, What are your core values? + 5. What's the essence of your brand? What's the core idea you're trying to communicate? Nos dsingustabi product ribtes/Tetres + 6 What’s your company’s mission and vision?COMPUONEN 1 PYRAMID Features and attributes: This describes what the product is designed to do and how it does it. UF DRKRAND Functional benefits: This section helps provide clarity around the customer problem the product tries to solve. Why do customers use the product and what kind of results do they expect? Emotional benefits: How do customers feel after using the product? Customers aren't just interested in your product features; they want you to tell them a story. They want your product to make them feel a little bit better. Brand or product persona: If your brand were a person. how would you describe him or her? What are the values that are important to this person and to your company? How does everything you do — from product development to customer service — reinforce these core values? Brand idea: Your brand essence, or the underlying reason why customers care about your brand. For example, Apple's brand essence is “empowering people through technology”. Brand essence is your brand's DNA, what your company stands for and what differentiates it from your competition.BRAND ATTITUDES + Brand attitudes are defined as consumers’ overall evaluations of a brand + Brand attitudes are multiplicative fimction of the associated attributes , benefits , and beliefs held about brand Ex- consumer’s opinion about how good or bad the brand has some attributes or benefits) + Attitudes can also be formed by less thoughtful decision making on the basis of simple heuristics and decision rules Ex-infer product or service quality on the basis product appearance such as color or scentSECONDARY ASSOCIATIONS + Secondary associations may arise from primary attribute associations related to + (1) extent of identification with the a company (branded house/endorsement) + () the country of origin (French wines, German automobiles, and Japanese electronic) + G) the distribution channels (intensive/selectivelexclusive) + @)a celebrity spokesperson or endorser of the product or service, or + (5) an event (sports-vivo/oppo)MEASURE THE CHARACTERISTICS OF BRAND ASSOCIATIONS + Asking "who, what, when, where, why, and how" types of ‘questions about the brand + Projective techniques (sentence completion, picture interpretation, and brand personality descriptors) + Experiments (blind test- Comparing the responses of the ‘two groups) + Surveys + Conjoint or tradeoff analysis Fhe hi of Mik, hor cones foming? Mabe Se son ovo? Contant pede anataes Speen pct eo 3 90 User Protea er of ike nko denogroptes ond fen) = hen won or os Nite? (stor occasion ad wood) end poss Fosigs al expions {see Nite wh nd ofeting does bse?FRAMEWORKSBRANDS VS COMMODITIES- BRAND LADDER + Brands compete on intangible attributes in brand ladder + Commodities compete on tangible attributes, price or convenience Intangible benefits are higher order benefits in brand ladder Eg- emotional and symbolic benefits (Ex- good feelings, Happiness, self-esteem in Dove, self-worth and status in Audi) Tangible benefits are functional benefits (Ex-moisturizing in Dove, hassle free driving in Audi),BEYOND BRAND VISION + Brand Manifesto + Brand Purpose + Brand essence+ A brand manifesto states: + ‘who we are and what we believe in and why you should care and rally to us’ + Abrand purpose statement answers the question, + “Why does the brand exist (beyond the goal of financial gain)?” A brand essence statement is about. the single intangible attribute that differentiates the your brand from competitive brands as perceived by the publicee Brand ManifestoKITCHENAID | otchenadstneacam/trard.mantesto) » Bsn | nnn EE Su.APancts uRORAMARNES —SOMORT” senusaEoUTFO90 avons QD So TEE, Tite ata BRAND MANIFESTO Retund Hany SurNeete PrmaRlaneO Cala ad eric Raut BRAND MANIFESTO Reisen sowioneteest una apie enter te wepunentenovesegeionPAVING EPMINI SAIN TESA itd USAIN LE ‘NRSIVSE SE ie tanec ood cmon seston Enon Se ivuuns arsed emetbenescoatr poo an reece Sb Cann nao et erat Abou US pe eae AMRUTANJAN BRAND MANIFESTOREPUBLIK — CREATIVE AGENCYBRAND FPURPOSE- ANSWERING WHY + A brand purpose statement answers the question, “Why does the brand exist (beyond the goal of ‘financial gain)?” + Answer to the “why” question reflects the beliefs and values of the organization + It goes beyond the positioning statement’s focus on a particular target + Itadd sses the concerns that cover other stakeholders, such as employees and investors + Ithighlights the value-based goal How can... [brand] ..make a bigger difference in the lives of our consumers in a way that makes sense coming from this brand.+ Ex + Always is a brand of feminine hygiene pads and panty liners produced by P&G + The product attributes of leak-free, comfortable fit, and absorbency provide the emotional benefit of enabling young women to feel confident in coping with the new experience of menstruation + Always has extended this equity to present the brand’s yur pose—helpit young women feel confident in the aecetne teeheeEX sHoney Maid graham crackers are positioned as a nuttitious saack because they are made with wholesome ingredients, including whole grains and real honey. «Honey Maid’s brand purpose is linked to its equity by elevaang “wholesome” to celebrate and honor familtes of alt stripes, colors, and definitions. -Honey showcase LGBTQ and racial inclusivity in specifying what it means to be a wholesome ‘family. ‘Dove is positioned as moisturizing bar, not as soap ‘Dove's brand purpose is linked to its campaign for “Real Beauty’ ‘Dove has been working to make beauty a source of confidence, not anxiety: In a world in which girls are too often held back by low self-esteem and anxiety about their lookDKRAND FURPOSE VS DRAND nvAal SLO Miener-order mission Brand purpose- What a company will do for society Brand vision- Whata company can achieve/ its potential SG Walmart>< VISAEX OF COMPANIES OPERATING ON ITS PURPOSE + Walt Disney started his company in 1923 to “bring happiness to millions.” + Robert Wood Johnson started Johnson & Johnson in 1886 “to alleviate pain and disease.” + In the 1890s William Hesketh Lever (founder of Lever Brothers wrote following purpose of his company: “To make cleanliness commonplace; to lessen work for women; to foster heaith and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products.”SOME OUTCOMES OF PURPOSE DRIVEN COMPANIES 1. Majority of leading companies are puspose driven and that they grew three times faster than the competition (based onresearch study using the Brand Z database of 50,000 brands) 2. Ina sesearch, overa 10-year period, companies that were operating with purpose beat the S&P by ‘an 8-to-1 margin (based on work of David Wolfe, Jagdish Sheth, and Rajendra Sisodia) 3. Companies that has a central element of their success as “sense of purpose beyond just making money.”, they outperformed the financial markets 15 to 1 (Jim Collins and Jerry Porras) 4. 80 percent of companies that overperform on revenue growth link everything they do to purpose (insights2020 study) 5. Inits 2016 Putting Purpose to Work report, PricewatechouseCoopers (PwC) found that 83 percent of ‘employees say that puspose in the workplace adds meaning to day-to-day work, and 53 percent say it energizes them, 5. Deloitte found that 73 percent of employees who report working for a puspose-driven company say they are engaged in their work TRIPLE BOTTOM LINEBRAND ESSENCE + Brand essence serves asthe foundation pon which all ther brand elements are bul (ep Logo, tagline, personality + Brand essence is considered as the “soul” of a brand, one to three words describing its fundamental nature or raison dere + Brand essence is the single intangible attribute that differentiates the your brand from competitive brands as perceived by the public + Brand essence concept is an overarching concept and core of any brand + Brand essence a single thought that captures the soul of the brand, and this is linked to all of the core elements of the brand's ideniity, Brand essence is derived with help of brainstorming session.EX “Volvo - Safety sJeep- Adventurous +Harley Davidson- Liberating “3M. Innovative *McDonald- Consistency ‘Visa- Everywhere ‘FedEx. Safe *SBI- Modern and progressive “Dove- Real beauty sTATA- Values and Ethics *Apple — Think Different *Nike — Authentic Athletic Performance ‘Hallmark — Caring Shared “Walt Disney World — Magical Maintain Brevity- Extract your brand’s “soul” into a couple of wordsBRAND RELEVANCE + Brand relevance is from customers’ perspective + A brandis reflected as relevant when buyer include it in consideration set + Category or Subcategory Relevance- The brand must carry all key characteristic of the category or subcategory of which it is a part (POP) + Nisibility and Energy Relevance’ The brand, pasticularly when establishing or entering a new category or subcategory, needs to have visibility — it needs to come to mind when the product category or subcategory is selected. + Brands that are tired, lack personalities, are uot associated with innovation, and are simpl minteresting may not make to the consideration set even though they are known and credibleZALTMAN METAPHOR ELICITATION TECHNIQUE (ZMET)- BRAND IMAGE + Itis a research method to explore people's thoughts and feelings through use of set of pictures + Ithelps in understanding consumers’ interpretations of brand image + Images can be thought of in terms of product features or attributes that yield consequences, + ZMET methodology relies on visual and other sensory images to elicit customers! metaphors and constructs. Procedure: Remit a group of 20 or so individuals to participate in a research study that requires ‘them to take photographs and/or collect pictures that indicate what the brand means to them, Performa oue-to-one interview as a guided conversation using the following steps: storytelling. missed images. sorting task, construct elicitation. the most representative picture, opposite images, sensory images, mental map, summary image. Vignette. Identify key themes or construets, code the data, and assemble a consensus map, involving the most important constructs.BA- WHAT DORS TUE MEAN LO YOu? iMENTAL MAP OF "TIDE"THE GOLDEN CIRCLE FRAMEWO Z / Why = The Purpose + 100% of all organizations now WHAT they do....(products | How = The Process and features) \ Jes ote hy + Some know HOW they do it...(differentiation) \ J What = The Result What? 7 Mt deo eet yt + Very few know WHY they do what they do....(what do you believe) Simon Sinek + The framework answers four critical identity questions: ‘Whom does the brand seek to strat? Why does the rand exiet? ‘What does the brand promise? How does the trand coms to life in he marketplace (2, tounlity of advertising, peckaging, logo)!EX- APPLE The "Why" - Everything we do, we believe in challenging the status quo, we believe in thinking differently. The "How" -We make products that are beautifully designed and user friendly "The What” - We just happen to make great computers - wanna buy one?IS IT TIME TO RECONSIDER YOUR BRAND VALUES? + Do you have a clear view of who you are as a brand, and who you want to be in the future? + Can we use our brand proposition to build a story that makes us different from others? + Isit credible because it reflects who you are? + Is it relevant to your stakeholders? + Are your customers concerned for the better things your product can do for people and environment? + IF NO...then... May be...Itis time to reposition or rebrand The society always evaluates a brand on the basis of promises made and deliveredREPOSITIONING AND REBRANDING + In certain circumstances may require the repositioning of a brand, which may involve changing the frame of reference or reframing + For ex- repositioning can occur when the initial position failed to gain traction + For example, Apple introduced its first-generation watch as a fashion item. However, the ‘Apple Watch never gained traction asa fashion accessory. This position was reframed a year later as a functional device for those interested in health and fituess, + Rebranding is done to appeal to a new audience, to convey innovation, progression, adaptability, inclusiveness, creative thinking, dynamic, future-oriented etc + Ex- SBI, Deccan Herald, ITC Wills Lifestyle e. OSBI ©SUCCESSFUL EXAMPLES ee + Dabur- ‘bold & beautiful campaign’ dedicated to women fighting the rough battle against cancer. hips. yoube com watch?v=OomaNyfiavg + India Post- to break the stereotypical image of being a slow and lethargic goverament India Pt organization, they transformed their Logo alongside a fresh tagline saying “Giving Wings to ‘Your Dreams” to present itself as a vibrant and dynamic organization with a modern approach. eels) + tps afags cm bewslalvartsing 2293) india pos goes in fr ap-imagemaksover + Zomato- Zomato rebranded Gold program (membership program) as 'Zomato Pro! to make it tobe more inclusive to a wider variety of restaurant businesses DECCAN&&HERALD & + ITC Wills Lifestyle-_All of WLS' garments will be made of cotton. linen, silk: or woollen EC 7 AN: HE] EALDG LD, materials and will be fully biodegradable. It is rebranded as WLS. Ithasa new logo called ‘Tattva' that promises to be a coniluence of the elements. + Deccan Herald - has announced rebranding efforts with new design and revamped content in ‘order to appeal to a younger audience to provide a more immersive and satisfying reading Ais experience.REPOSITIONING IS DOUBLE EDGE SWORD...IT MAY NOT ALWAYS SUCCEED ai Case of Old Nav ositioning for youth + Old Navy was a brand for value-oriented families interested in purchasing casual clothing. + Old Navy’s reason to believe was the unusually wide selection of T-shirts, jeans, khakis, and other casual attire. + When a new chief marketing officer was hired, a line of trendy but inexpensive clothing was introduced with the goal of appealing to young, fashion-conscious women. = However, the space allocated to the trendy items reduced the breadth of selection that was central to Old Navy’ s position and frustrated its core consumers, + Old Navy sales declined dramatically —over 20 percent in several months. Case of JCPenney- Repositioning as fashion-forward tg + New CEOs at JCPenney and Lands’ End attempted to reposition those brands as mar i fashion-forward. + Existing customers were not impressed, and not enough new customers were attracted to offset the defecting old customers LANDS’ END lsCUSTOMER LIFETIME VALUE (CLV) + The discounted cumulative cash flows (profits) that a customer brings to the fim. over the entire duration of the relationship with the company (Kumar 2006) + It emphasizes relationships, not transactions + Every customer is different- Do not treat every customer equally + It allows firms to assess the true worth of customers and to target their marketing efforts to the most profitable customersRFM + A method used for analyzing customer value + Itis commonly used in database marketing and direct marketing + It determine quantitatively which customers are the best ones + It segments customers based on when their last purchase was, how often they've purchased in the past, and how much they've spent overall + REM method: + Recency: time since last purchase + Frequency: number of purchases within a given time period; + Monetary value: average purchase amount per transaction; + Based on RFM customers may be segmented into various categories + For Ex- Champious/Loyalist, Potential Loyalists, New Customer, At Risk Customers, eteMETHOD « Assign weights to R, F, and M and then calculate the value of each customer; rank customers by value; + Only available for historical customer data; « Sensitive to the specification of the weights used;EXAMPLE RFM ANALYSIS Purdase L(mats sxe Rpsins Weigit Weehed2 7 — Fpeing Weight Weighed FM Mpins Weight Wetted RM sumier st pus) ork pins

ae High functionally (2) a invested fully invested 8g Be 32 tow 3) 7 sé uninvested emotionally investedFUNCTIONALLY INVESTED BRAND CONNECTIONS + Quadrant (1) + High functional but low emotionally connected consumers are functionally invested to brands. = Hence, they are satisfied with the brand in terms of performance (that is, functional connection) but shop around (that is, emotionally not connected). + They are not as price sensitive as ‘uninvested’ consumers (as they appreciate the brand in a fimctional way) + But if there is a better deal in terms of value proposition (price vs. functionality). they might switch, + In this case, consumers see the brands as a ‘ colleagne ” Ex: Enide batteryFULLY INVESTED DRAND CONNECTIONS + Quadrant (2) + Consumers with high functional and high emotional connections to brands are those who are‘ fully invested ’ in brands + In this relationship, consumers ‘ love ’ their brand and positive outcomes can occur such as high brand loyalty, an extreme positive world of mouth like brand evangelism, or tuming a blind eye after service failures. + Consumers with such relationship investments with brands are more loyal, switch less likely to other brands, are willing to pay a price premium or are less price sensitive and have higher brand forgiveness + In this case, consumers see the brands as ‘ family * and/or part of themselves. Ex. iPhoneUNINVESTED BRAND CONNECTIONS + Quadrant (3) + Low functional and low emotional connected consumers are “ uninvested ° in brands, and consumers see brands as ‘ acquamtance ’ + They exhibit no brand loyalty and they are mostly price sensitive, and brands are subject to the competitive environment. + Price premiums are hardly possible + Those brands have a high risk of brand switching from consumers, and brands need either to fulfill consumers’ function or emotional needs to deepen their connection to consumers. Ex: Bottled Water, Bread, Milk, Candies, Salt, Mobile oilEMOTIONALLY INVESTED BRAND CONNECTIONS + Quadrant (4) + Consumers with a low functional but high emotional connections to brands are those who are ‘ emotionally invested ’ in brands - They like the brands mostly for affective reasons even if the brand does not perform compared to what consumers need or want, or the brand performs less well than competitor brands. + In this case, the brand does not have all the functions or features consumers are looking for or need. + In some instances, the consumer can forgive these functional shortcomings, or the consumer is willing to have less functionality. + In this case, the emotional needs compensate for the functional limitations. + However, this ‘ emotional invested’ relationship might last only fora while, and brands need to address these functional shortcomings. + Consumers see the brands as a ‘friend’, but this friendship can end pas either a committed relationship or a ‘family’ or transit to a relationship with low emotional connection if frustrations of functional limitation occur over time, or the relationship will even be terminated or ‘divorced’ Ex- Nokia, Kodak, Motorola ©BRAND FEELING MATRIX + This matrix classifies the different concepts of consumer brandrelationships + It group them into the strengths of relationships (weak vs. strong) and the consumers’ feeling toward the brand (negative vs. positive). Strengths of Brand Relatonship Weak Strong 2 @ aL 2 Posiive rand Love 38 Brend Satisfaction Brand Passion is es 4 é ) S Negative Brand Hate Brand Avoidance Beane FateQUADRANT 1 + In Quadrant 1, consumers have a weak or loose brand relationship but yet positive feeling toward a brand. + Concepts such as brand satisfaction fall into this quadrant. + Also brand satisfaction precedes brand trust and brand loyalty. It does not necessary lead to brand commitment. Ex- Lenovo laptop + Many consumers can be satisfied with a product or service brand, but do not become committed 10 this brand emotionally. rena of Brond Reaborship Weak song a 2 = rose — | carson | Bran Lowe 28 Brand aston # ‘i 2s « é ® rancHate Negative | Brand Avoidance: backend eQUADRANT 2 + In Quadrant 2 , consumers have a strong brand relationship and a strong and positive emotional feeling for a brand. + Concepts such as quadrant. nd Jove (Batra et al. , 2012) or brand passion (Bauer et al. , 2007) fall into this + Brand love includes long-term commitment to the brand in addition to emotion and passion. Thus, loving a brand (and not mere satisfaction) is a step towards loyalty. Ex- Apple - Brand passion is defined as extremely positive attitude toward a specific brand that leads to emotional attachment and influences relevant behavioral factors.” Ex- Oneplus Sunes of o ° @ Brora HatQUADRANT 3 + In Quadrant 3 are concepts that deal with negative brand relationship and weak feelings consumers have for brands. + Concepts such as anti-consumption and brand avoidance fall into this quadrant. + Anti-consumption happens when consumers resist consuming specific products. Ex- ‘Non-green consumption + Brand avoidance happens consumers reject specific brands in order to avoid adding undesired meaning to their life. The brand avoidance focuses more specifically on the deliberate rejection of brands. Ex- Tata Nano Suonas Brand Reborn wo 2 z rore — | nccanan | Btettow 3 Eesti — | rernance |eQUADRANT 4 + In Quadrant 4 the consumers have a strong and negative feeling toward brands + Concepts such as brand hate, anti-branding paper, and brand divorce fall into this quadrant + Brand hate concept is naturally linked to intense or extreme negative emotions and emotional response Ex- Tanishq Ad Controver + Brand avoidance can oceur due to product failure, level of service provided, poor performance, and unplezsant store environment. + These negative emotions may result into consumer patronage reduction or cessation, complaining or even boycotting actions Ex-Nike for poor workang condition in Bangladesh svar ler ie Ered sattcton | Ed tow 2 Soi Brant anceFORMING IDENTITY AND CHOOSING ELEMENTS + How does brand identity form? + How to choose brand elements?BRAND IDENTITY + All elements with which a brand can be identified + Brand identity is a tool to create perception: what people think, and what you might want them to think + Brand Identity reflects the personal identity of its participants. + Brand identity is intangible and appeals to the senses. + Cadbury - distinctive purple colour for packaging milk chocolate. + Nestlé -distinctive four-finger shape of Kit Kat + Christian Louboutin - distinctive red soles of the shoes + Tiffany - distinctive egg shell Ulue packagingKAPFERER BRAND IDENTITY PRISM {enema crs rented wih Be help of external stimuli KAPFERER’S 1. Physique BRAND IDENTITY RSM PICTURE OF SENDER 2. Relatioaship 3. Reflection [internal]- developed from intemal stimuli-psychological Physique Personality 1. Personality 2 Culture 3. Self-image Relationship Couture ExXTERNALISATION INTERNALISATION + Given by J. Kapferer in 1986 + Explore and illustrate the deep inner inspiration of the brand fefecton Sethinaee + Hexagonal prism with 6 facets PICTURE OF REGPIENT ©INTERNALIZATION (PSYCHOLOGICAL) ONALITY- Imagining brand as a living persot (A lot of work goes into developing a personality for a brand. Ex- Rebel personality of Harley Davidson -CULTURE- Set of values and prineiples a brand stand for. Ex- Toyota for Japanese culture and values such as “kaizen” or “continual improvement”, Mercedes-Benz, or BMW for German engineering, precision, and punctuality. “SELF-IMAGE: How would a customer perceives himself by using the brand? Ex- consumers who use Dove products see themselvesas beautiful, confident and optimistic; User of iPhone versus MicromaxEXTERNALIZATION -PHYSIQUE- Physical characteristics and all identity elements (colors, logo. packaging). Ex- ‘MeDonald’s golden “M’; iPhone as elegance, style, minimalistic, and aesthetics; shape of a sports car +RELATIONSHIP- Expected relationships of a brand with its consumers (great buying experience, excellent customer service, guaranteed quality lifetime warranty, memberships ete). sREFLECTION: The ideal consumer of the brand (demographics and other profile/characteristics) Ex- young fim loving consumers for Coke, innovative, forward looking, technology lovers for iPhone)KAPFERER’S BRAND PRISM EXAMPLE BRAND IDENTITY PRISMBRAND IDENTITY PRISM PICTURE OF SENDER Physique Personality Rapid reaction, high Corker mare, fonbay mart shah agree cnentaton unpeterious 2 Relationship Culture 2 _Trstwormy, quali tai European Spanish, 3 crcrange of ave imematona ood : rolaonshp wth k E i Reflection Self-Image Sty, indvduaiom Corfdrt. ashonabi, unique, PICTURE OF RECEIVERKAPFERER’S BRAND PRISM EXERCISE + Harley DavidsonBurbary + Physique: high quality, excellent services, Proudly British, Iconic check and logo + Personality: cool, sophisticated, classic. + Relationship: trust & dependability, exclusiveness, consistent. + Culture: British; tom from a trench, coat; heritage; tradition with modem; ambitions. + Reflection: prestigious, disceming, pioneering + Self image: elite, understated success, + GUCCI + Physique: good quality, able, imovative, trendy designs «+ Personality: confident, sophisticated, classy, trendy, sexy, glamorons, + Relationship: personal touch, empathy, influencing yet not imposing + Culture: fashionable, modem, outgoing, elegant, successful, achiever + Reflection rich, outward, modem, fashionable, high status, + Self image: high income segment, contident, unique, - — Hatley, Uys, SVidson eae copies Personally ete dese * americas + Gomer = ina “tate power ernes ee 1 pte decent Beri treat cure & sred ales & Values peeey, Community “jetntn Live the Cruiser |" mnjomen ics sere Lifestyle + Tay notor «oat enone Noble Purpose ‘Asplational Se ere ott open rad Image bey alsCOMMON CONCERNS + Too many topics in the course + Too many case studies + Case discussion in class + Solution to case + Presentations by students + Tutorial on BrandPro + Reading material and books (download option) + Product managementPRODUCT LIFE CYCLE FACTORS Detnton Typlallengh Examples Need Basic underlying requirement Indefinite Transportation, calculating Demand Specific solution to aneed Very tong Car, computer Technology Current state-of-the-art Short Composite engine, 16-bit computer Product Product with specifictechnology Shorter 4-wheel drive car, 16-bit PC Productform Variant of product Veryshort Open-top-4-wheel drive, 16-bit notepad PC Brand Manufacturer's offer Long Honda Civic, IBM PC Doyle (1999)THREE LEVELS OF PRODUCT (source: Kotler, 1989)DRIVERS WHICH OBSOLETE THE PRODUCT 0 The changing requirements of customers O The strategies of competitors. 0 The attractiveness of the market to new competitors. 0 The emergence of new technologies which can replace existing solutions 0 The performance and power of those companies supplying resources, raw materials and components to the businessMANY OF THE WORLD’S BEST-KNOWN BRANDS ARE COMPANIES RATHER THAN SPECIFIC PRODUCTS + Objective differencas are important but maintaining an objective difference is difficult = In blind usage tests, people find it difficult or impossible to discriminate between cola drinks, breakfast cereals, instant coffees, soaps, detergents and so on + Thus subjective or perceived difference assumes a major role in product strategy + For new products, the advantage of objective difference is short-lived. + Need of other means of distinguishing. Associations with the brand in the buyer’s mind prove a major differentiator + Branding has the ability to convert otherwise undifferentiated or low involvement goods into shopping/speciality or high involvement goods Coca-Cola, Microsoft, IBM, GE, Intel, Toyota, Disney, Marlboro, McDonaldCHALLENGES IN NPD (INNOVATION) + Objective difference- In today’s competitive environment the achievement and maintenance of objective differences is becoming increasingly difficult to sustain + Shor life- As per research estimates, any new technology is fully understood within 18 months of its first appearance so that competitors are able to benchmark the new product and establish the basis of its technological advantage + Protecting IP- Given the nature of international competition, the protection of intellectual property rights through patents has become increasingly difficult and copying has become commonplace + Marketing significance- Marketing has assumed high importance in saturated and highly competitive markets (because... it is only through branding, positioning, the provision of service and availability through location and distribution advantages that the great majority of firms can differentiate themselves and survive)PRODUCT ADOPTION MODELS(HIERARCHY-OF-EFFECTS MODELS) iz SCT a COU a ek Conative Action Purchase Adoption Purchase processes (motive) Conviction Trial Affective Desire Preference Evaluation Evaluation (emotion) Search Cognitive Interest Liking Interest (thought) Awareness Knowiedge ‘Awareness Awareness Problem recognition UnawarenessDIFFUSION Early adopters Early Innovators. = 20 x Zh% 3% majority | majority Late x! x a a Rogers (1962) LaggardsGROWTH VECTOR MATRIX Product Present New P Market Product resent “ penetration development Market . ee New Mission Igor Ansoff (1965)LIFE CYCLES AND LUVUTS LO GROW Ih OF PRODUCT —_ a \ in Growth Time Brice Henderson (HBR, 1989)THE RELATIONSHIP BETWEEN MARKET SHARE AND PROFITABILITY Profitability doubles for every 15% increase in market share 50 Return on investment (96) 0 10 20 30 «40 «5060 Absolute market share (%) PIMS study-Buzzell and Gale (1987)THE BUYGRID ANALYTIC FRAMEWORK FOR B2B BUYING SITUATIONS Buy classes ayy New | Modified | Straight phase task rebuy | rebuy 1. Anticipation or recognition of a problem Ineed) oné 8 general solution 2. Determination of charact {quality of needed item tice and 3. Description of characteristics anc ‘quantity of needed tom 4. Search for and qualification of potential 5. Acquisition and analysis of proposals 4, Evaluation of proposals and selection of supplierts) 7. Selection of an order routine 8. Performance feedback and evaluation Robinson et al., (1967)MARKETING MIX STRATEGIES FOR PRODUCTS re Price Distribution Promation Undifferentiated (cost leadership] ‘Standardized Low Intensive Mass, Differentiated Different foreach What the market Extensive Targeted by market segment —_ will bear segment Concentrated {focus} Customized Premium Highly selective DirectFIVE BASIC STRATEGIES FOR COMPETING THROUGH PRODUCTS Competing through product proliferation (Launch many new products simultaneously; Ex- Honda launched 113 models against Yamaha’a 37 models) Competing through value (Offering high quality at low cost, Ex-IKEA offering excellent design and product quality backed up by strong customer service and a liberal return policy forits range of self-assembly furniture) Competing through design (Designing products tat are aesthetically appealing, safe and pleasing to touch and use, immediately intelligible and easy to operate, easy to install, handle, store, clean, and maintain, easy and economical to manufacture, Ex- IBM, Sony, Harley-Davidson) Competing through innovation-incremental or breakthrough (new enabling technologies and new proprietary product concepts, Ex- Black & Decker, DuPont, 3M) Competing through service (see services as adding value rather than cost)THE PROCESS OF PRODUCT INNOVATION U Time to market/ Time-based strategy (faster, more efficient product development) 0 Development focus on quality and other non-price factors (eg tastes and preferences) 0 Emphasis on corporate flexibility and responsiveness to customer needs and industry trends 0 Customer focus at the forefront of strategy 0 Strategic integration with primary suppliers 1 Electronic data processing strategies 0 Policy of total quality controlWHY IS “TIME TO MARKET’ IMPORTANT? + There 1s no known market research technique which can guarantee 100% accuracy in predicting how an intended market will actually respond to a new product + According to research by McKinsey, a firm bringing a new product to market on budget but six months late would forfeit up to 50% of its profit potential (based on some assumptions) + By contrast, a product brought to market on time but 50% over budget would forfeit only 4% of its profit potential + It follows that the firm which launches a less than perfect product, but which has the capability to respond quickly and effectively to customer reactions and feedback, may well outperform. the ‘perfectionist’ organization ... which takes much longer to get to the marketINSIGHTS IN NPD + Consumers will continuously search for new and better ways of satisfying their needs + Thus, innovation and introducing new products to the marketplace is important for survival and growth + Products developed from customers’ ideas and/or with their collaboration are much more likely to succeed than products which lack such inputs (Co-creation) + More radical the new product, ie. the more it differs from the current, accepted solution to a need, the greater the resistance it will meet and the longer it will take to be taken up or diffuse (Ex- driverless car)THE ‘STRETCHED’ PLC IntroductionCHARACTERISTICS OF LIFE CCL STAGES Berto ead or) Roy Pr characteristics Sales Low Fest Slow to dectine Dectining Profits Negligite Peak levels Begin to decline Cash flow Negative Moderate High Customers, Early adopters Mass market Mass market Laggards Competitors Few Growing Many me too" rvals Taking market Key actions strategy Expand market Market penetration Defend share Productivity Marketing costs High High [dectining %) Felling Low Marketing emphasis Product awareness Brandpreference Brandloyalty Image maintenance Pricing igh Maintain Maintainfincrease Rising Distribution Patchy Iniensve Iniensve Selective Product Basic Improved Broaden position Rationalize Product development Resegment 3+ Brand life +> > Generic life >> > Doyle (1976)WHEN TO CUT ONE’S LOSSES AND WITHDRAW/KILL THE PRODUCT For new products to use exponential (Sigmoid) rather than linear forecasting sales models (PLC) Linear sates torecast Zone of ‘over-performance PLC oF exponential forecas Sales Zone of “Under=pertormance Time + For minor product improvements (incremenial) in frequently purchased items of lowunit value, one would expect fairly early indications as to the acceptability of the new product, + Butin the case of radical innovations, one would anticipate a fairly protracted introductory phase, possibly e extending over several yearsTIME FROM INVENTION TO COMMERCIAL EXPLOITATION Allow sufficient time for market penetration of new product Electric motor 65years WV S2years Vacuum tube 33years Zip-fastener 30years X-ray tube 18years Frozen foods 15years Nuclear reactors 10years Radar 5years Solar batteries SyearsFADS AND FASHIONS PLC Time Time Inverted-U-shaped curve Fad product PLC Fashion product PLC + No introductory phase + Withdraw the ‘new” product at a sales peak to make way for yet another product + Prevents its competitors from benchmarking or copy-catting its products + Help developing a reputation as an industry leader rather than a followerNEW PRODUCT AND PROCESS DEVELOPMENT + As aresult of technological innovation even the most successful of products will become obsolescent and displaced by new and better ways of serving a particular need + A firm must not become a victim of market myopia + The firm needs to pursue simultaneously the strategies of 1. market penetration (selling more of the existing product to existing users), 2. market development (finding new customers in new geographic regions with similar needs to one’s existing customers) 3. product development (improving and changing the product both to keep up with the changing wants of one’s existing customers, and to attract new customers whose needs were not satisfied by the original product)EMPHASIS FROM TRANSACTION TO RELATIONSHIP + It costs five to six times as much money to create a customer as it does to keep one + Best ideas for new products are generated by customers who identify means of improving or changing existing products so that they will perform better + The tendency for customer is to prefe supply (subjected to satisficing behavior) + Thus, anticipate the customers’ needs .peat purchase fom a known and proven source of + Developa range or portfolio of products designed to match changing needs and situations of customersPRODUCT PORTFOLIO + Marketers nmst select measures for assessing the actual or potential contribution of individual products to the portfolio + Such measures may be objective (such as sales, profitability ormarket share) or subjective (such as competitive strength, perceived risk, or stage in the product life cycle) + When measuring sales it is necessary to ensure apple to apple comparison(avoid mixing manufacturers’, wholesalers’ and retailers’ prices, as well as making sure that data cover the same time period) + The BCG growth-share matrix (market growth and market share)- question mark, star, dog, cash cow + Tn recent years more attention has been given to managing products in the decline phase of the life cycle, leading to the conclusion that dog products may also be cash positive if properly managed. The resultant term is the cash-dog.SHELL’S DIRECTIONAL POLICY MATRIX (DPM) Prospects for sector profitability Unattractive Average _—Attractive Cisinvest Phased Doutle or withdrawal quit ‘Three basic criteria are Weak 9 ‘ 3 identified for Custodial company’s competitive 4 bili 8 1 Mist position : Phased Custodial Try harder Prodncon = withdrawal 2. Production capability i 3 5 2 3. Product research and é development § growth a Cash Growth Leader é generation § Strong 7 4 1 LeaderNEW PRODUCT DEVELOPMENT MODET Company objective Exel oration Booz, Allen and Hamilton (1982)ANALYSIS OF THE NPD PROCESS Stage of development J} Information needed for stage; Sources of ee el enti Td ei) 1. Expleit statement Preliminary market and technical Generated aspartof Identification of market INB. of new product analysis: company objectives continucus MIS and not product oppertunties straiegy, budget corporate planning _tobe exploited bynew allocation products 2. Idea generation Customer needs andtechnical Inside company Body ofinitislly acceptable {or gathering) developments in previously salespeople, technical ideas Isentifed markets functions, Outside ‘company: customers, competitors, inventors, ete. 3. Screening ideas: Assessment of whether there is@ Main internal Ideas which are acceptable finding those with ‘market for this ype of product, function: for further development most potential ‘andwhether thecompanycan’ = R&D make it Assessmentof financial - Sales implications: merket potential — Marketing and costs. Knowiedge of company - Finance seals and assessment of ft = Production based on Booz, Allen and Hamilton (1982)plat assessment of custemer needs to appraise market potential. xplicte2aezoment bf teznnica snd design Fequirements Fllestinfermation thus far. ~* detiteg market analysie = explicitiechrical feasibility SEs = producton implications > Exrporate objectives Customer research with praduct Production infermation to check. “makeabiliy of product or service design Profi of rew product performance in ight of Competition, pramotion and ‘marketing mix variables Test market results and report Inka esearch with customers) Input thorn merlin and techniea functions ain internal functions Customers Customers Proucion Market research; production, sales, marketing, technical people ‘As for test market based on Booz, Allen and Hamilton (1982) dentiicatn ct key atirbutesthatneedto be incerporeted inthe product, imaer tecnnicst cons, eign, target markats and potenti Major go-no ge decision: company needs te bs sure theventire is worthwhile ee Explicit marketing plans Final go-no goforlsunch Incremental changes to testlaunch Full-scale lourchTHE INNOVATION DEVELOPMENT PROCESS ro yeWHAT IS A NEW PRODUCT IDEA? + Ideas, from the outset, must relate to the eventual benefits they will deliver to a set of specified potential customers + https:/www.youtube.com/n + An idea not related in any way to customer benefits is likely to face a much tougher joumey towards a successful launch3000 raw ideas = 1 commercial successCRITERIA FOR DESIGNING AND MANUFACTURING USABLE CONSUMER PRODUCTS 1 Functionality involves the creation of synthesized solutions in the form of progucs that satisfy users” yerceived needs through the mapping of functional requirements (trigger Word technique, checklist technique, ramstorming technique etc) East of operation product is user ftiendly. physically comfortable, and not mentally stressful (ultidimensional scaling (MDS) can be used to study product seinantics in product desiga) Esthetics-product may create a sense of high fashion, image, and pride of ownership (Kansei engineering (KE) translates consumers” feelings and image of a product ito design elements) Reliability- probability that product will perform satisfactorily for a specified period of time under the stated set of conditions (Mean time to failure, the average of mean lifetime, contimuous improvement in materials, product design, manufacturing processes, and use environment) Servicesbility and maintainability- product can be repaired or serviced easily and quickly (Maintenance can be either preventive or breakdown maintenance) Environmental friendliness- product that has minimal or no harmful effects during mamufactuse, use, and disposal (Life-cycle assessment (LCA) tools analyze and compare the environmental impact of various Recychobility and disposability Safety -absence of hazards or minimal exposure to them Customizability- Desiga for mass customizability (DFMC) is anew approach catering to an increasing variety of customer requirements without 2 comespondimg increase in cost and lead tune (develop a mass-customizstion-oriented product family architectuse (PF A))QUALITY FUNCTION DEPLOYMENT (QED Drape and process design. + QED is a method of translating customer + The QED technique uses the concept of the “house of quality.” It links customer need to design attributes or ‘engmeering measures’ of a product. + It translates customer views/needs systematically into key engineering characteristics, planning requirements, and finally production operations + This is achieved through four key documents: the product planning matrix, product deployment matrix, component deployment matrix, and the operating instruction sheet 1. Product planning matrix- rank customer needs and translate customer requirements into important design features. 2. Product deployment matrix- depicts the extent to which the relationship between component and product characteristics is critical and affordable 3. Component deployment matrix - expands the list of components or the exact parameters required to design a complete component 4. Operating instruction sheet-defines operator requirements as determined by the actual process requirements, process checkpoints, and quality control points eQUALITY FUNCTION DEPLOYMENT- THE HOTISE OF OMIATITYV Z\ Read graphics text ore than ene person || 1 Noeye _Easy to read text stain Flicker notnoticeable || & Comfortable eye evel between customer needs design atrbutes Design Customer needs {200-300 in nierarehy 5 ” Clarity Crisoness of ines Distinguish detait 2 Relationships [ l NET NEC 18M Customer perceptions. Importances Costs and feasbilty Engineering’ measures Hauser and Clausing (1988)DIFFERENCE BETWEEN PRODUCT MANAGEMENT AND PRODUCT DEVELOPMENT « The term product may refer to both products and services + Product management is the holistic job of product managers, including planning, forecasting, and marketing products or services + Product development is a corporate process of designing and commercializing new products « Product management is a matrix organizational structure (in which a product manager is charged with the success of a product or product line but has no direct authority over the individuals producing and selling the product) + Much of the work of a product manager is through various departments and cross-functional teams, almost as if the product manager were operating a business within a business. A matris organization is one m which people report direcily toa specific function area, but report indirectly (through a “detted-Iine” relationship) to other fnctional areas ©A PRODUCT MANAGER « The product manager is a generalist who must rely on numerous functional specialists to develop and market the product line. + A product manager is typically a middle manager charged with managing and marketing existing products (and developing new products) for a given product line, brand, or service + Other job titles could include brand manager, industry manager, or customer segment manager. « Product managers oversee a set of defined products or services that face different competitors and different customer constraints « The product manager must necessarily interact with the various operational units of a companySKILLS NEEDED IN A PRODUCT MANAGER + Frequently cited traits looked for in product managers include an entrepreneurial attitude, leadership, and self-confidence. + Acquired abilities should include organizational, time-management, and communication skills. + Sales proficiency and technical competence are also important in many industries. + The importance of prior experience depends on the particular needs of the product management position. + If highly technical, engineering-oriented knowledge is required, a background in engineering is appropriate. + Ifan understanding of customer applications desired, a sales background in the industry is appropriate. + knowledge of large-market wends and competitive positioning is important, marketing research and/or advertising experience are desirablePROJECTS AND PROCESSES + On an ongoing basis, product managers exchange information with the sales force. + Product managers represent the voice of the customer at internal meetings on the product line in question. + Product managers need to plan for current and future product activities that benefit the company as a whole + A product manager needs a broad nowledge of virtually all aspects of a company along with very focused knowledge of a specific product or product line and its customers. + Product managers manage not only produets, but projects and processes as well + Product management is generally most suecessfill for companies with several products having similer manufacturing but different marketing requirements + The ultimate goal of the product manager is customer satisfaction obtained by being a cross-functional leader in the firmAPPLICATION OF PRODUCT MANAGEMENT + Product management is applied in all types of companies from consumer packaged goods(P&G) to services (such as banks/insurance/Fls) to industrial companies (such as original equipment manufacturers (OEMs), component suppliers) to nonprofit organizations (such as hospitals/‘tniversities) + More than being simply champions for their brands, product managers are viewed in some ways a3 running their own little businesses. + They not only oversee product development, but also monitor advertising and promotion, as well as negotiate to obtain shelf space from retailers = With current product proliferation, manufacturers acknowledge that there are few lasting competitive advantages from which to attain market dominance. + Therefore, sensitivity, intelligence, and int these battles ion are important traits for product managers facingREAL CHALLENGE FOR PRODUCT MANAGERS + The real challenge of the job for product managers is often simply getting the product onto shelves. + A flood of new products has made retailers reluctant to open shelf space without nerous inducements from manufacturers + The inducements include paying for in-store displays, fees for mentioning the product in store advertising circulars, and compensation for the increased processing costs of warehousing the new products + As aresult, the proportion of consumer-products budgets for trade and consumer promotions has risen from less than half to as much as three-fourths, with the balance going to advertisingDAY-TO-DAY ACTIVITIES OF PRODUCT MANAGER + Maintain a product fact sheets data on the company and its products in a concise and clear format (to highlight key competencies and achievements) + Motivate the sales force and distributors. + Collect marketing information, including competitive benchmarks, trends and opportunities and customer expectations. + Act as a liaison between sales, manufacturing, research and development (R & D), and so on. + Control the budget and achieve sales goals.SHORT-TERM ACTIVITIES OF PRODUCT MANAGER + Participate in annual marketing-plan and forecast development. + Work with advertising departments/agencies to implement promotional strategies. + Coordinate trade shows/conventions. + Initiate regulatory acceptance + Participate in new-product development teams. + Predict and manage competitors’ actions. + Modify product and/or rednce costs to increase value + Recommend line extensions. + Participate in product-elimination decisions.LONG-TERM ACTIVITIES OF PRODUCT MANAGER + Create a long-term competitive strategy for the product. + Mentify new-product opportunities. + Recommend product changes, enlancements, and introductions + As a ‘Global Product Manager’ look for similarities across different world markets, standardizing whenever possible and customizing whenever necessary + Embedding both domestic and international standards into products and services at the point of design, not as afterthoughts. + Meeting world standards even before seeking foreign markets, while simultaneously acknowledging national differences and local norms + Consider the needs of major markets right at the start, rather than having to retrofit a product developed for one national market.PLATFORM DESIGN FOR PRODUCTS + Design the largest possible standardized core, while allowing for necessary customization at the same time. + The main goal of the product- development process is not to develop a standard product or product line but to build adaptability into products and product lines to achieve worldwide appeal. + This can be achieved by standardizing the core product or large parts of it, while customizing peripheral or other parts of the product. + Ex- Honda chasis + Today products are being designed to ensure that a wide variety of models can be built on the same basic platfomnBENEFITS OF PLANNING AT THE PRODUCT LEVEL «First. product managers are better able to develop products with specifications compatible on a global scale. «Second, they are able to more effectively and efficiently adapt products to local needs. «Third, they are able to respond more quickly to competitive moves of global companiesCOMPANIES EXPRESSING PROBLEMS WITH THE PRODUCT MANAGEMENT CONCEPT (PMC) + Following observations based on researcht 1 Product managers spent too much time on day-to-day matters and not enough on planning and searching for new opportunities Product managers were not sufficiently entrepreneurial Product managers did not have enough authority over the sales department and had poor communication with the sales force (the most frequently mentioned responses) There was poor understanding of product manager role Product managers were inexperienced There was an authority-responsibility mismatchWHY B2B IS DIFFERENT ‘Complex and long process of decision making (ex- Gatekeepers, Decision Makers, Influencers, & Blockers) Specialized products/specifications Need for information is high and customer seek detailed content Lengthy buying cycle, but often repetitive purchase Big ticket purchase. Relatively infrequent purchase in bulk Few buyers and suppliers /smaller audience Relationship (CRM) more important than brand Important me mm for communication are personal selling /email marketing /direct phone calls B2B customers focus on ROI and they are more rational, planned, and logicDECISION- MAKING UNIT (DMU) OF A BUYING ORGANIZATION ‘Many ‘buying center’ in B2B as compared to B2C 1. Initiators: users or others in the organization who request that something be pur- chased. 2. Us those who will use the product or service. In many cases, the users initiate the buying proposal and help define the product requirements. 3. Influencers: people who influence the buying decision, often by helping define speci- fications and providing information for evaluating alternatives. 4. Deciders: people who decide on product requirements or suppliers. 5. Approvers: people who authorize the proposed actions of deciders or buyers. 6. Buyers: people who have formal authority to select the supplier and arrange the pur- chase terms. Buyers may help shape product specifications, but they play their major role in selecting vendors and negotiating. 7. Gatekeepers: people who have the power to prevent sellers or information from reaching members of the buying center (e.g. purchasing agents, receptionists, tele- phone operators who may help or prevent salespersons from contacting users or deciders).B2B BRANDS + Top brands- GE, IBM, Intel, Microsoft, and HP + Other brands having substantial revenue from B2B markets: + Cisco, Oracle, SAP, JP Morgan, UPS, HSBC, Goldman Sachs, Thomson Reuters, Citi, Accenture, Siemens, Morgan Stanley, Axa, Xerox, Allianz, Caterpillar, Credit Suisse, Barclays, UBS, 3Mand Zurich + The valve of these B2B brands is greater than higher profile consumer brands (B2C) such as Starbucks, Harley Davidson, and CampbellsARE B2B BRANDS NECESSARY? + An early assumption was that brands did not matter in B2B markets + Only price and product innovation were important for B2B markets + The B2B customer was expected to be less emotional and much more analytical in their purchasing decisions + But highly visible and widely-admired brands have assumed market leadership in a wide variety of B2B categories: + Ex: technology (IBM), manufacturing (Boeing), information (Dow Jones), financial services (Goldman Sachs), consulting (McKinsey), as well as in highly diversified B2B companies (GE).SOME OBSERVATIONS/FINDINGS + B2B brands are prominent in the high technology and financial services sectors (Ref. Interbrand) + Industral firms have comparatively less brand value as a proportion of intangible asset valne than. did consumer goods firms (Simon and Sullivan, 1993) + Average brand value as a proportion of market capitalization is about 37% (Madden et al., 2006). + Average value of the top five BZB brands (GE, IBM, Intel, Microsoft, aud HP) 1s only 19% of market capitalization (Madden ct al., 2006).BRANDS DO MATTER IN B2B MARKETS + Brands do matter in B2B markets especially for companies whose business offers are complex and whole-solutions-focused + It matters less for companies selling simple discrete products (for example agricultural prodnets) or services (for example traditional telephony) that are easily commoditized. + The absence of exact product or service parity in industries like enterprise software or aerospace engineering creates opportunities for brands to add valueBLURRED DIVISIONS BETWEEN B2B AND B2C FIRMS + Some B2B brands such as Cisco, Xerox, and Caterpillar that do not have the end-consumer as their primary customer are also meaningful to consumer segments + These firms use the brand equity created in one channel to leverage their business in other channels + Thus, the traditional divisions between B2B and consumer brand (B2C) firms are blurredSUBTLE BRANDING DIFFERENCES IN B2B + Emphasis on corporate rather than product branding and more emphasis on risk reduction + Dimension of customer feelings towards a brand are less relevant to B2B brands + Less application of the emotional and self-expressive dimensions to B2B branding + The meaning of the term brand equity is much wider in B2B branding and includes: Brand equity (linking brands and consumers), channel equity (links with resellers), reseller equity Gesellers' links with the end customes) which together create market-place equity.BENEFITS OF B2B BRANDING + Better information efficiency for buyers particularly with complex products or services (branded products make information gathering easier) + Reduce the chances ofa poor purchase decision and reduce business risk + Brands enhance the experience for the purchaser (image benefit) + B2B brands provide functional benefits to the selling firm, such as reliable eamings, intemal identification for inventory purposes, more profitable business relationships, legal protection through trademarks etePSYCHOLOGICAL ASPECTS OF Ihr BUYING DECISION + Once physical performance criteria are met. big ticket industrial buying decisions are largely based on psychological factors + Therefore, successful industrial marketing should include more emphasis on the psychological aspects of the buying decision + Buyer concerns over uncertainty in future developments are important + Ex Gordon et al. (1993) found that a range of factors influence the choice of distributor Meeting deadies, price, and relationship were most important followed by brandBRANDING AS PER RBV (RESOURCE-BASED VIEW) THEORY + RBV states that resources are valuable to firms if they have value, are rare and not able to be imitated or substituted + Brands satisfy this resource criteria as they have value, are unique to the selling firm and are not easily substituted + As afirm resource, brands influence external business relationships and enhance shareholder performance + For B2B marketers brands function as a resource tie between suppliers and customers + Thus, brands are important market-based (intangible) assets which help build external relationships in the market-placeBRAND AS AN OPERANT RESOURCE + An operant resource 1s one that firms can use to act on other resources + The service dominant (S-D) logic views the brand as an operant resource (Vargo and Lusch, 2004) + It considers brand as a collaborative, value co-creation activity of companies + The industrial buyer co-creates value with the seller before the purchase through providing purchasing specifications or supplier briefings + This brand value may be confirmable through direct experience of the brand or indirectly through interaction or communication with other stakeholdersB2B BRAND EQUITY + Brand equity is the differential advantage of the branded product compared to the identical unbranded product. + This differential is known as brand knowledge and consists of brand awareness and brand image (Keller, 2008) + Strong brands have a rational as well as an emotional appeal and the result of this brand building effort is customer attachment or loyalty to the brandBUILDING THE B2B BRAND + The basic principles for managing B2B corporate brands are the same as for consumer brands. + Basic requirements are: + Positioning, or ‘brand promise + Clear naming architecture + Consistent communication + Integration of marketing commmnications across: logo, taglines, worldwide advertising, websites, events and trade shows, and customer service interactionsanaes aes ame ees BRANDS ARE THE SAME AS FOR QNSUMER BRANDS oc aneastrcome emt + The basic principles for managing B2B corporate =———e™_SEe eee ae + The brand needs to be built around a positioning, or “brand promise’, that is simple and clear, is relevant to the brand’s customers, and is aligned with the company’s business strategy + The brand needs a clear naming architecture that links different products, services, and divisions to the company’s master brand and reflects how closely linked these divisions, and their customers, are + The brand needs to be consistently communicated across all communication channels. + This requires integration of marketing communications on a scale that can be quite challenging for global corporate brands. + The many communications touch-points that need to be integrated inelude: Jogo, taglines, worldwide advertising, websites, events and trade shows, and customer service interactions.MODELS FOR BUILDING THE B2B BRAND + To capture the value creation process for brands, Keller and Leman (2003) has devised the brand value chain + Kotler and Pfoertsch (2006) has suggested using Kevin Keller's customer-based brand equity (CBBE) model to explain the B2B branding process + Some B2B brand researchers suggest to apply Erdem and Swait's B2C frameworks which focuses on the credibility of the brand signal sent to prospective customers (the signal consists of a brand's perceived quality, risk of purchase and information gathering costs)BRAND VALUE CHAIN FOR B2B Market Marketing program Customer mindset performance Shareholder vale Price premiums Produc Awareness] Communications Azocatone| Pros eaststes ‘Sock price Tex ‘tices! Markt shae| | PI rato] Empoyec| ‘Atachmont Expansion suciess | Markotcaptalzain| Proftaaty “Ld Multis = “Channel supporERDEM AND SWAIT'S B2C FRAMEWORKS arard create ron) CSS SE a ~BRINGING DIFFERENTIATION + Differentiation is Biggest challenge + Frame Value Perceptions (high benefits, low cost) + total cost of ownership/lower life- cycle cost + Superior/high value of the delivery'logistic services « Improve customers” time to market + Emphasize uon- product- related associations (¢g- Firm Imagery -aggressive/immovative/matket leadertwell- respected fim/user- friendly/forward-looking) + Superior post-sales service support + Detailed product information about existing/new products in amore direct or face- to- face manner + Shifted your attention away from business having low profit poteniiaVfinancially unattractive/ minimally attractive + Uncover selevant emotional asocistions forthe Brand (Security- Reducing risk to improve customers: sense of secunity Social approval: top firm ensures peer approval and personal recognition wsthm the organization Self- respect: satisfaction denived by vistue of Working With fop organizations and brands)B2B BRANDING GUIDELINES (KELLER AND KOTLER, 2012) + If the firm decides to invest in stronger branding, it should employ the following branding guidelines: 1. Internal merketing- Ensure the entire organization understands and supports branding and brand. management, Brand architecture- Adopt a corporate branding strategy if possible and create a well- defined brand hierarchy; 3. Frame value perceptions; 4. Linkrelevant non- product: related brand associations; Find relevant emotional associations for the brand; 6. Segment customers carefully and develop tailored marketing programs10, uL. B 4 15. 16, Brand history/fanctions/ categories of brands Brand positioning ané differentiation, brand positonmg temphite Brand meaning Brand salience Brand identity Self-brand connection Brand associations Brand evohution Building brand relevance Brand purpose Brand metrics Brand house Brand resonance Brand values Brand architecture Brand portfolio SNOW ewe BRESe 14, 15 16. 17. 18, Brand strategies Brand key Brand essence Brand manifesto Brand personality Brand metaphors and personifications ZMET and the brand association map Brand semiotics Brand ladder Brand pyramid Brand touch points Brand vision Brand awareness, brand recall, and brand recognition Rebranding and repositioning Application of RFM, PCV, SOW and CLV in branding Simon Sinek’s branding framework Product category management Brand equity MOU RYE 10 u 2 ‘Customer based brand equity Brand asset vahnater model (BAV) BAV Model Power Grid Brand Value Chain ‘Consumer Brand Relationships Brand connection matrix Product management and product category development Launching new product/brand development Brand valuation Designing Brand identity elements BOB branding Future of Branding and Post-Covid Brand relevance