8.

Launching
the
bRAND 1
 BM 8 : Learning Objectives

• An appreciation of the brand launch

mechanics

• The role of brand names in brand

management

• The procedures brand managers follow to

launch/re-launch a brand
2
 bRAND Launch
What do the following bRANDS have in common?
Citi
Chase
Cartier
Colgate
China mobile
Coca Cola
Chevrolet
Cadillac
Chanel
Chase

3
bRAND Launch … the birth of a power bRAND
All new products do not become bRANDS

YOU START A bRAND..

..YOU GET A Brand
While launching a new bRAND,
1. Decide on the intangible values, as well as
2. The product, at the same time
4
bRAND Launch statistics
• 95% of all new products launched in USA
fail
• 90% of all new products launched in
Europe fail

• Out of 1,000,000 new products launched

in a 10 -year period,
1. Less than 200 reached sales of $15m
2. Only a few reached $100m
5
bRAND Launch statistics 2010
Of 25 top Consumer Packaged Goods launches in 2010
in USA

• Only 2% of new lines had sales more than $ 50m

• 1.5% of customers delivered 80% of sales !

• Their repeat purchase rates were also higher

• 42% if these were shifting from other SKUS in the

portfolio – high cannibalization
6
What makes a bRAND, a bRAND ?
• Being the first in the mind, not the market
e.g. Apple

• Who is the first , or Who is the better ?

• Creating a new category and being the first in

that category works
e.g. Marlboro cigarettes for men
Amazon online bookstore
Swatch fashion watch
Rooh Afza red sherbet 7
What makes a bRAND, challenge a leader bRAND ?

• Being different is important

e.g. KFC vs Mcdonalds
BMW vs Mercedes-Benz

• A BIG IDEA based on consumer insight

e.g. Unilever’s “ Dirt Is Good’ campaign

• Innovation
e.g. Touch phones by Apple vs Nokia

8
Businesses With The Best Product-development
Track Record do:
3 Things Better Than Their Less-successful Peers:

1. They create a clear sense of project goals

early on (bRAND Vision)

2. They nurture a strong project culture in

their workplace

3. They maintain close contact with

customers throughout a project’s duration
9
2010 survey at 28 companies across North America and Europe
 bRAND Launch steps

1. Ensure complete internal agreement on the justification of

having a new bRAND
2. Starts with a PRODUCT
3. Treat the launch as a real bRAND PROJECT
4. Write a bRAND VISION
5. Choose a NAME
6. Think of an IDENTITY for the bRAND
7. Write down the intended POSITIONING upfront.
8. Build AWARENESS

10
1. Internal bRAND agreement
 The company has a bRANDING
culture

 All employees are in agreement of

the new bRAND and it’s role in the
company’s profits

 The whole company and all its

functions stand behind the bRAND
11
2. bRAND launch … The Product
 Every bRAND has a flaghip product.

 The flagship product quality has a disproportionately large

role to play in creating a new bRAND

 A new bRAND with an innovation has a far higher chance of

success

 The product quality holds the bRAND in the initial months

before the positioning cements in the minds
There is some truth in the popular perception that quality was dropped after the successful launch.

 It is extremely costly to recover, if at all from botched

launch product perception

12
3. bRAND Project
Treat the new launch as a real project
with agreed
• Timelines
• Budgets
• Jobs to be done
• Benchmarks – quality, distribution etc
• Who does what – responsibilities
• Metrics
13
3. bRAND Project
The launch Project would have 5 phases
1. Understanding Phase
Market and competitor analysis, look for consumer insights

2. Exploration Phase
Check scenarios , it is an iterative process, evaluate different
platforms for the bRAND.

3. Test Phase
Research the ideas , products & positioning elements

4. Strategic Evaluation
Comparison of alternatives, financial analysis, setting the
success criteria
output is the final positioning , the launch platform

5. Implementation & Activation 14

4. bRAND LAUNCH create a bRAND Vision

The Vision is
the STARTING
POINT OF A
NEW bRAND.

Start With A True Vision 15

4. bRAND LAUNCH create a bRAND Vision

The Vision is often

based on some
REAL
CONSUMER

INSIGHT
16
4. bRAND LAUNCH create a bRAND Vision

The new bRAND must:

• Provide some BENEFIT to the

consumers for it to succeed

• Must take on an inspiring ideal

for the consumers and the
company alike
17
5. bRAND LAUNCH new bRAND’S Name

The Name does matter

The name alone can be the primary
reason for a bRAND’s success

18
 5. bRAND LAUNCH new bRAND’S Name
Most bRANDS started as ordinary names e.g.

• Every new product needs a name to be promoted

DALDA (Lever brothers purchased DADA mills)
COCAINE COLA ,
MERCEDES BENZ ( Mr. Karl BENZ married Ms. Mercedez)
ESSO ( Standard Oil)
L U (Lefevre married Mademoiselle Utile)
They became bRANDs later on

• Each new bRAND should start conveying it’s values from

the start to become a big bRAND. e.g. RED BULL
19
5. bRAND LAUNCH new bRAND’S Name
bRANDS distinguish between products . they do not describe
them.
A bRAND is never a product

Avoid the strong tendency to choose descriptive names

EXXON means nothing in 3000 dialects LPERS, TARANG, O’MORE
• CARTE’DOR
• FCUK , FRENCH CONNECTION
• CHILLI MILLI
• Lumia Nokia’s new smartphone in spain ?
• SUPREME , Tea, Foam, Gasoline etc.
• Mondelēz Krafts new snack name "delicious world“ ? 20
 5. bRAND LAUNCH new bRAND’S Name

It has to be unique
Remember bRAND equity is also measured by:
• Top Of Mind Awareness ,
• Prompted & un-prompted recall etc.

I. Be prepared for infringements

II. Register the bRAND name as you start thinking

about it
21
5. bRAND LAUNCH new bRAND’S Name

bRAND Name guidelines

1. It should be simple, short: Pepsi , not Pepsi-cola

2. It should be distinctive: Bata , Shezan, Exxon

3. I should be meaningful: Roohafza,

4. Compatible with the product : Timex , Swatch

5. Be flexible for future growth: Apple, Galaxy

22
6. bRAND LAUNCH chose an Identity
• A new bRAND can have a separate identity , or it
can take the identity of the company

• TARANG by ENGRO FOODS

• MEZAN by PARACHA TEXTILE MILLS
• DALDA Extra Virgin Olive Oil

• Company-named bRANDS have shared values

with the company values
1. NIDO from NESTLE
23
2. COKE ZERO from COCA COLA COMPANY
7. bRAND launch - Positioning
• The desired Positioning for the new brand has to be
written

• The Positionings of all competitors have to be taken

into account to achieve differentiation

• Success of the new bRAND depends upon the

differentiated Positioning only.

• The success of Positioning can be validated through

Market Research, couple of years after the launch

24
8. bRAND launch - Awareness
SET THE OBJECTIVES (the metrics of measuring success)

 Top-of-mind Awareness
 Un-prompted Awareness
 Prompted Awareness
INSIGHT: Consumers have a limited set of bRANDS in
their awareness area.

S.O.V. IS IMPORTANT

First movers advantage is..1st AWARENESS ADVANTAGE !

25
8. bRAND launch - Communication
• bRAND awareness is created through
communication

• Communication success is the easiest to

measure for a new launch.

• The communication has to break the clutter

to be successful

• Personal communication is equally

important to mass communication
26
8. bRAND launch - Communication
• The communication establishes the intended
positioning

• An IBC (Integrated Brand Communication)

plan helps achieve the objective at the lowest
cost

• A launch typically has 2 sets of

communications
1. THEMATIC
2. TACTICAL 27
bRAND launch
THE LAUNCH CEREMONY
Most companies hold big events to launch the product

This is a motivational step for all

 Employees
 Partners
 The Stakeholders

28
bRAND launch - Power bRAND
footprints of a

I. Has an established bRAND ESSENCE

II. Has a strong bRAND IDENTITY

III. Has a clearly defined core activity
IV. Has shown real-time performance
V. Has a clear positioning

VI. Processes a clear vision

VII. Follows a successful bRAND Contract i.e
It Is Seen By The Consumer As Delivering Value
29
bRAND Meaning–what sells a bRAND?
bRANDS that score high on ‘meaning’, ‘difference’
& ‘salience’ :
• Capture 5 times more volume
• Command a 14% price premium
• Are 4 times more likely to grow value share

bRAND bRAND bRAND

Meaning Difference Saliency
30
 bRAND success drivers
To drive volume, a bRAND has
to be 1 Meaningful and then
st

Salient

bRAND bRAND
Meaning Saliency
31
 bRAND success drivers
To justify a price premium a
bRAND has to be 1 Meaningful
st

and then Different

bRAND bRAND bRAND

Meaning Difference Saliency
32
 bRAND success drivers
Coke is one of the most Meaningful bRAND
due :
• Great product delivery
• Meets consumer’s core needs
• Elevates the bRAND into emotional
area through great marketing

bRAND
Meaning
33