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MODULE-3

Strategic Brand Frameworks2

Prof. Anand Narasimha


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In this Module we will learn about


Portfolio Planning- McKinsey PDM
Brand Growth- defining source of business, Ansoffs matrix
Value-Creation & Delivery- value propositions, extra-value propositions
Competitive Advantage- generic strategies, differentiation drivers,
competitive strategies
Perceptual/Positioning Map
Brand Planning Steps, BRANDSNAP
Developing Brand Strategy Guidelines- SPINZ case study

Product & Market


Frameworks

Portfolio Planning

McKinsey- Portfolio Decision Matrix (PDM)

Sales Objective

Brand Beneficiaries

Niche products

Brand Consolidators

Med-volume products

Brand Builders

Opportunity to stimulate sales

Hi-volume products

Opportunity to build image

Brand Contribution

SPINZ: PDM
Sales Objective

Brand Beneficiaries

Brand Builders: Deo, Body Wash, Hair Color


Brand Consolidators: Talc
Brand Beneficiaries:

Niche products

Brand Consolidators

Med-volume products

Brand Builders

Opportunity to stimulate sales

Hi-volume products

Opportunity to build image

Brand Contribution

Hi-volume: Talc
Med-volume: Deo, Body Wash
Niche: Hair Color

SPINZ : Portfolio Mapping


Opportunity to stimulate sales

Opportunity to build image

Optimum Position

Brand Opportunity

Deos
Body Wash

Hair Color

Talc

Sales Opportunity

Weak Position

SPINZ : Portfolio Strategy 2009-10

Opportunity to build image

Opportunity to stimulate sales


Optimum Position
Invest- Drive Image +
Innovation

Brand Opportunity

Deos
Body Wash

Support- Drive Image

Hair Color

Talc

SupportDrive price-value
Sales
Opportunity

Divest
Weak Position

SPINZ : Portfolio Strategy 2010-12

Opportunity to build image

Opportunity to stimulate sales


Optimum Position
Invest- Drive Image +
Innovation

Brand Opportunity

Deos
Body Wash
Hair Color

Support- Drive Image

Hair Color

Talc
Talc
SupportDrive price-value
Sales
Opportunity

Divest
Weak Position

Present the McKinsey PDM


for a brand portfolio of your choice

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Brand Growth Objectives


Source of Business

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Brand Growth Objectives Source of Business

Brand Growth

Get new users

Maintain existing
users

Tap/develop
new segments

Prevent share erosion


by competitors

Stimulate brand
switch
from competitors

Develop / maintain
brand loyalty

Increase
frequency
of usage

Change
unit of sale

Create new
ways of
using the brand

Reducing
Price

Get existing users


to consume more

Extend usage
occasions

Change mode of
Purchase
(impulse to regular)

Give an example for each of the above objectives.


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Ansoffs Product-Market Matrix

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Value Creation & Delivery

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Value Creation & Delivery


Customer Delivered Value
The difference between total customer value and total customer cost of
a brand marketing offer. Profit to the customer.

Product Value

Service Value

Personnel Value

Total Customer Value


Total Customer Cost

Monetary Cost

Time Cost

Energy Cost

Image Value

Customer
Delivered
Value

Psychic Cost
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Value Proposition

The full mix of a brands benefits at a price, that delivers customer value
5 Winning Value Propositions for a brand

Price
More

Benefits

More

Same

Less

More for
More

Same

Less

More for
Same

More for
Less

Same for
Less

Less for
Much less

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Value Propositions

More for More


Offering upscale products/services, delivering higher value at a higher cost.
Rolls Royce. Mont Blanc.
Rolex.

More for Same


Offering superior products/services, delivering higher value at the same cost.
Fogg. Vodafone.

Same for Less


Offering similar product/services, delivering the same value at a lower
cost.
Walmart.
Amazon.

Less for Much Less


Offering no-frills product/services, delivering a lower value at a much lower cost.
Low cost
airlines. Store Brands.

More for Less


Offering superior
delivering
a higher
value at a lower cost.
What are product/services,
the Value Propositions
of some
other Brands?
Micromax. Intel.

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Extra Value Propositions (EVPs)


From USP

to EVP

Adding a layer of extra benefits around the core product


to enhance its value and differentiation.
Wrapping a service around a product :
Product servicization Prodice (Product + Service)
Dr.Cerelac Helpline. Asian Paints Colour Matching. Surf Excel Wash
Advisory. ACC Cement Helpline. Lakme Beauty Saloons.

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Extra Value Propositions


Wrapping a layer of
extra services around
the product
Installation
Packaging
Delivery
&
Credit

Brand
Name

Core
Benefit

Quality

Warranty

After
FeaturesSales
Service
Design

EVP
Augmented
Product
Actual
Product
Core Product

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Develop and present an idea for an EVP


for any brand of your choice
Spell out the strategy/consumer insight behind the
idea
and how it enhances brand value over the
competition

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Competitive Advantage
& Strategies

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Generic Strategies for Competitive


Advantage
Porter's Model

Strategic Target
Broad

Strategic Advantage
Low Cost

Focus

Competitive
Advantage

Narrow

Differentiation

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Generic Strategies Porters Model

Strategic Advantage

Broad
Narrow

Strategic Target

Low Cost
Broad Cost

Differentiation
Broad
Differentiation

IVORY SOAP
AMERICAN AIRLINES

Focus Cost

Focus
Differentiation

LA QUINTA
CRAY RESEARCH

Give an example for each of the above Generic Strategies.


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Points of
Differentiation
Product Differentiation: based on physical product attributes like design, quality, features, performance,
durability.
Bose. Purdue Chickens.

Service Differentiation: based on augmented product services like delivery, installation, warranty, customer care / guidance, after sales service.
Caterpillar. Nordstrom.

Channel Differentiation: based on distribution channels like coverage, expertise, efficiency, experience/ambience.
Dell. Tupperware.

People Differentiation: based on the quality & expertise of people servicing the customers.
Singapore Airlines. McKinsey

Image Differentiation: based on company / brand image and personality


Nike. Pepsi.
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Competitive Strategies
Type of
Company
Market Leader

Market
Challenger

Definition

Strategies

No.1 brand, largest


market share, leads the
market

Expand total Market:


new users, new uses, more usage
Protect market share:
create entry barriers, constantly innovate,
stay ahead.
Expanding market share:
dominate category, attack competition
aggressively.

Runner-up, aggressively
challenges the leader

Full frontal attack:


direct head-on, across the marketing mix,
on the competitors strengths.
Indirect attack:
on the competitors weaknesses/gaps,
changing the rules/ shifting the
battleground.
Judo Marketing:
converting the competitors strength
into a weakness.
Ambush Marketing:
usurping/hijacking a competitors initiative
to your advantage.
Guerilla Marketing:
tactical, selective attacks with element of

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Competitive Strategies

Type of
Company

Definition

Strategies

Market
Follower

Runner-up. Content on
holding-on to its
position

Follow closely:
Just behind the leader, almost
copying his strategies.
Follow at a distance:
Fairly behind the leader, developing
its own strategies.

Market Nicher

Serves small, niche


segments, others
ignore. Specialist who
dominates that
segment. High margins
(v/s high volumes).

Exclusively serve a niche:


Based on customers, market, pricequality, service
Multiple Niching:
Serving 2 or more niches.

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Rule Makers
Incumbents who built the
industry

Rule Takers
Pay homage to the
leaders

Rule Breakers
Overturn the order

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Perceptual/Positioning Map

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Identifying Market Gaps for Product Opportunities

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Identifying Repositioning Opportunities

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Identifying Repositioning Opportunities

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