brand kya hota hai?

8/14/2019 Brand Kya Hota Hai?

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Brand Kya Hota Hai?

You & Me

Anything that has a NAME, SIGN, SYMBOL

which has a set of associations related to it

Origin: Brandr


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Brand ki zaroorat kya thi?

One Consumer

One Need

MANY PRODUCTS

Kiss ko choose karun -- Confusion!


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Ek Friday. Doh Filmein!

Comedy vs. Comedy

Two Star vs. Two Star

Govinda vs. Tushar Kapoor

Which one will you go for?

Brand Govinda: Comedy Associations


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Brand has

Name, Symbol or Logo

Brand Purpose: Positioning

Values & Personality: Image

Bundle of Benefits: Promise


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Consumer: Value Maximiser

Brand: Biggest Value Driver!

Cap Rs. 50/-

Cricket Team Cap Rs. 500/-

Team Cap used by Tendulkar Rs. 5000/-


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Brand Value

MEANS OF IDENTIFICATION

PROMISE

RISK REDUCTION

IMAGE DRIVER

CONVENIENCE


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Kya brand ho sakta hai?

Gaadi

Doodh

Atta

Namak

Kya nahin brand ho sakta hai?


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Brands kya reality mein

better hote hain?

Is Mercedes the best car?

Is IIM Ahmedabad the best b-school?

Maybe, maybe not!

Perception!


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Sounds easy!

One NIKE. 1000 FAILED NIKE!

Biggest challenge for a Marketer

3C Challenge

Cash

Consistency

Clutter


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Brand Equity

Concept & Its Importance


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The Challenge

More Products

More Competitors

More Media Same Consumers

Same Needs

GROWTH MANTRA?


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Mantra #2

Brand Building

Distinctive

Sustainable

Long-Term


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What is Brand Equity?

BE is a set of brand assets / liabilities

linked to a brand, its name or symbol

that add to or subtract from the value

provided by a product or service to a

customer


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Components of Brand Equity

Awareness: Name & Symbols

Perceived Quality

Brand Associations

Brand Loyalty

Other Proprietary Brand Assets


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Awareness: Name & Symbols

Recognised vs. Unknown Brand

Familiarity drives perception Familiar = Reliable + Good Quality

Unknown only a push option


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Brand Associations

People, situations, moods, needs that

consumers relate a brand to/with

Helps the brand occupy a distinctmindspace

Drives purchase


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Brand Loyalty

Cost of acquiring new customers is 10

times the cost of retaining old ones!

Products are non-living but brands arent Customers associate themselves with

brands (preservance/enhancement)

Difficult to break-away to competition


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Other Proprietary Assets

Trademarks

Patents

Channel Relationships


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CBBE

Consumer Based Brand Equity


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Case for Building a Brand

Improved Product Perceptions

Greater Loyalty

Insulation from Competition Higher Margins

Inelasticity to Price

Cooperation from Channel

Effective Marketing Communication

Leverage through Extensions


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Million Dollar Questions

What makes a strong brand?

How to build one?

Th 4 F d t l


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The 4 FundamentalQuestions

Who are you? (Brand Awareness)

What do you do? (Brand Knowledge)

What do I think about you? (Brand Attitude)

What about you and me? (Brand Relationship)


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Brand Awareness

Recognition & Recall

Depth: How easily do they recall?

TOM: McDonalds

Breadth: In what all situations do they recall? Usage Occasions: Tropicana


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Brand Knowledge Performance: Attributes & Benefits

Ingredients: KFC

Consistency: McDonalds

Durability: Tata

Serviceability: Maruti Service Efficiency: Dominos

Style & Design: Swatch

Imagery User Profile: Harley

Usage Situation: I-Pill Personality: Tata

Values & Beliefs: Johnie Walker

Should be strong, favourable & unique


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Brand Attitude

Brand Feelings Warmth: Archies

Fun: Disney

Excitement: MTV Security: SBI

Social Approval: Mercedes

Self-Respect: RbK


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Brand Relationship

Association with the Brand

Behavioral Loyalty: Fair & Lovely

Attitudinal Attachment: Budweiser

Sense of Community: Saab

Active Engagement: Enfield


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Term Project: Phase I

Understand the Current CBBE amongst theTarget Market

FGDs / DIs

Users / Lapsers

Define it as given in the subsequent slide


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CBBE for Amazon

Books, Music & VideosBRAND AWARENESS

Conv., Variety, Low Prices

For Every Internet UserBRAND KNOWLEDGE

Good Value / Credibility

Smart ShopperBRAND ATTITUDE

Loyalty, Community,Engagement

BRAND RELATION


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Defying Newton


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What is a declining brand?

A brand which has over a period of time been

losing both market share and mind share

amongst its target consumers


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Top 10 Reasons for

Declining of Brands


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Cause #1

Decline in quality

Cost-cutting (Maruti 800)

Increasing volumes (IIMs)

Relaxation in QC Measures (Caf Coffee Day) Perceptual Decline: Price, Channel, Sensorials,

Advertising, Packaging


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Cause #2

Resistance to Change

Product Oriented (Robin Blue)

Need Oriented (Nirma Detergent)

Consumer Oriented (Dabur Chavanprash) Why resistance?

Investment

Product Orientation

Tried & Tested

Complacency


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Cause #3

Single Product (Ambassador)

No portfolio

No extensions

Problem? Visibility

Stature

Decline in segment

Decline in product


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Cause #4

Excessive Pricing (Daewoo Cielo)

Premium pricing

High margins

Entry of Competition Feeling of being cheated

Private Labels


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Cause #6

Communication (Kelvinator)

Low levels of communication

Wrong message

Low impact Brand Ambassador

Production values


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Cause #7

Channel management (CrossWord)

Attitude of Sales Team

Margins

No push Emergence of alternate channel


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Cause #8

Ageing (HMT Watches)

Old age

No makeover (Product / Communication)

Perceived as Not for me


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Cause #9

Lack of differentiation (Acer Computers)

Cluttered market

No USP

No competitive advantage Me Too Branding


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Cause #10

Tough Consumer

Less emotional

Lowering levels of loyalty

Flirtatious attitude More knowledge driven

Connected via media


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Revitalising the Brand


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Why revitalise?

Brand still has high awareness

Brand still has some values with consumer

Product still selling

Cost of building a new brand is far higher


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Ways to Revitalise


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#1: Increase Usage

Getting existing customers to use more of

your product Frequency of Use (Shampoo)

Reminder Communication Positioning for frequent use

Make the use easier

Provide incentives

Reduce undesirable consequences of frequent use Use at different occasions


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#1: Increase Usage

Getting existing customers to use more of your

product Quantity of Consumption (Chips)

Incentives on high use Creating larger servings

Removing undesirable consequences of high consumption

Positive associations


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#2: Finding New Uses

Finding a new functional use for the brand Omni Cargo

How to find new uses?

Observe usage of current customers Sponsor new use contests

Use of competitions product

When to adopt a new use?

Potential market Feasibility & Cost

Competitive reaction / takeover of the use

i k


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#3: Entering New Markets

Move into a new market area having growth

potential

New Segment (Pepsi A.M. / Bacardi Breezer)

New Geography (Honda City / Gits)

4 R i i i h B d


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#4: Repositioning the Brand

Existing positioning not relevant

Lacking appeal amongst TG

Reposition the brand on a new platform Lifebuoy (Koi Darr Nahin)

Fair & Lovely

#5 A i h P d


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#5: Augmenting the Product

Providing features / services not expected by

the consumer Must be things the consumer values

Linked to the product Drive consumer delight Nestle Coffee Shaker

Titan Eye Free Eye Testing

#6 Ob l ti E i ti


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#6: Obsoleting ExistingProducts Kill the existing product and introduce a new

technologically advanced product Bajaj: Scooters to Motorcycles

Gillette: Stainless Steel Blades Intel: Self Destruction

Windows Vista: Windows 7

Risky as there has been investment in theexisting product which will go waste

#7 E t di th B d


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#7: Extending the Brand

Take the brand into products which have a

brighter future Dettol Soap

Mcdonalds: Salads & Yoghurt Crest: Beyond cavities!

Extension must be

Relevant Sustainable


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What if nothing works?


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O ti #2 Di t t


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Option #2: Divestment orLiquidation Exit out of a brand HUL Denim

Lee Cooper

Last Resort Rapid sales decline

Milking also unprofitable with price pressures Weak brand position

Exit barriers can be overcome


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Brand Extensions

Why? When? How?


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What is a Brand Extension?

Established brands are assets

Marketers try and leverage these assets

The process of using the brand name on

another product is known as extension Line Extensions (Lifebuoy Liquid Soap)

Category Extensions (Nokia Laptops)

Stretch Extensions (Intel Celeron)


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Why Brand Extensions?

New products a driver of growth for a company Developing and launching requires millions Yet 9 out of 10 new products FAIL

Brand not launching new products are also at timesperceived as old and staid

Overdependence on any one brand could be dangerous Parent brand may only appeal to a segment

Brand is seen as boring and lacking variety Allows the competition to flank


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Why Brand Extensions?

Brand extensions helps cut down costs

Also increases the chances of success as the consumer

already has a favourable image

Rejuvenates parent brand

Reduces overdependence on a single product

Category/Stretch extensions help bring in new users

Line extensions cater to different needs of segments orprovide variety to existing users

Can also be a tool for blocking competition


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How do consumers evaluate?

Fit between Parent & Extension

Fit in terms of Core Differentiation

FIT: Coke & Diet Coke (Taste)MISFIT: Pepsi & Crystal Pepsi (Colour)

Extension must remain true to the core

values of the parent brand


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How much to extend?

Extend to the extent where there is an equalborrow & build with the parent brand

Harley: Clothing, Tatoos but not Energy Drink FAL: FAL for Men but not Perfect RadiancePepsodent: Cavity, Plaque but not Fresh BreathDrivers

Frame of Reference (McDonalds Fast Food) POD (Oral-B Toffee) RTB (Gits Pasta)


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Moving Down

Why? Competition

Private Labels

Challenge Protecting the Brand

Distinguish the Extension Sub-Branding

Product


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Moving Up

Why? Potential User Base

Higher Margins

Challenge Managing Credibility

Sub-Brand with a Descriptor (Kodak GOLD)


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Risks in Extension

Line Extension: Overchoice & Confusion

Dilution of Parent Equity: New Maggi, Coke Vanilla

Use of Sub-Brand gives cushion: Sony WalkmanCannibalisation of Parent (Space & SOM)


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Extensions in Portfolio

Cannibalisation

Distinct Role

Incremental Share

Different Needs


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Key Questions

Positioning of Parent Brand?

What am I using from the positioning?

Is that valued by the consumer in the new

category in which I am extending?

Does the consumer see a connect with the

parent?

What will be the impact on the parent?

brand kya hota hai?

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