DISSERTATION REPORT

ON

“BRAND POSITIONING STRATEGIES ADOPTED BY PHARMA COMPANIES”

SUBMITTED BY:Harsh Mittal-A3906407144

BBA 2007-2010

UNDER THE GUIDANCE OF

Mr. Jitendra Tomar

AMITY UNIVERSITY UTTAR PRADESH(Established under Amity University Uttar Pradesh Act 2005)

Sponsored by Ritnand Balved Education Foundation

ACKNOWLEDGEMENT

I, “Harsh Mittal”, owe enormous intellectual debt towards my faculty

guide Mr. Jitendra Tomar, who has augmented my knowledge in the field of

“Brand Positioning”, helping me learn about the process and giving me

valuable insight into the subject.

I am obliged to her for being extremely patient, giving me sufficient

time for discussions and guidance at all stages through the course of this

research. My increased spectrum of knowledge in this field is the result of

his constant supervision and direction that has helped me to absorb

relevant and high quality information.

I would like to thank his for his guidance and enriching my thoughts in

this field from different perspectives.

Last but not the least, I feel indebted to all those persons and

organizations which have provided information and helped me directly or

indirectly in successful completion of this study.

Harsh Mittal

Amity School of Business 1

CERTIFICATE

This is to certify that Harsh Mittal, student of Bachelor of Business

Administration, has completed his dissertation under the guidance of Mr.

Jitendra Tomar, Lecturer, Amity School of Business, Amity University,

Noida as partial fulfillment of the completion of his two year of full time

Bachelors in Business Administration.

During his research work she showed dedication, hard work and the want

to learn. This dissertation has been done under my guidance and

supervision during the period October-2009 to march-2010. This

dissertation report has not been submitted to any of this institution or

organization for any kind of assessment or consideration to the best of my

knowledge.

Mr. Jitendra Tomar

Lecturer

ASB

Noida

Amity School of Business 2

CONTENTS

Page

No.Acknowledgement…………………………………………………………….… 1Certificate….…………………………………...…………………………….… 2Executive Summary…………………………………………………………….. 4List of Tables andGraphs………………………………………………...……. 5

Chapter 1 – Introduction……………………………………………………... 6

Chapter 2 – Review of Literature…………………………………………… 33

Chapter 3 - Research Methodology and Key Questions ……………... 58

Chapter 4 –Positioning in Pharma ………………………………………... 65

Chapter 5 - Research Analysis and Findings …………………………… 77

Chapter 6 –Conclusion and recommendations ………………………… 82

Select BibliographyReferences………………………………………………………………. 85Annexure : ……………………………………………………………... 86

Case Studies……………………………………………………. 76Questionnaire…………………………………………………… 93

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EXECUTIVE SUMMARY

The practice of using a brand name is the evolution of the ancient custom

of branding one’s belongings. When this meant making one’s mark on

clothing, pottery, smith’s works, or livestock, it was designed to make it

obvious which person or family owned specific items. Today’s brand name

works basically the same way. It is used to distinguish one product,

especially a competing product, from anothis. In othis words, it is a mark

used to show ownership.

Drug companies deal with a lot of competition between their brand name

medicines and generic alternatives. Often times, the generic is named for

what is contained in the medicine. In regard to over the counter

medications, a good example is aspirin. Any company can use the name

aspirin on their packaging, but Bayer is a brand name.

When several companies market a similar product, it is important that the

brand name be clearly seen on the packaging and easily recognizable.

Competing manufacturers invest a lot of money and effort into making their

brand name into a household name. Some companies try to imitate the

brand name, logo, and packaging of competing companies in the industry,

in an attempt to fool customers into buying their products. Such tactics are

usually easy to recognize, and even if a customer is fooled once, it isn’t

likely to happen a second time.

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More reputable companies marketing generic alternatives list the brand

name on their package and ask consumers to compare their product to the

brand name version. The generic product may contain the same amount of

the same or similar active ingredients. If it is comparable in quality and

lower in price, consumers may come to prefer it to the brand name product

in some instances.

On the othis hand, a brand name that has been around for some time, and

is seen as reputable, will generally develop customer loyalty. Consumers

will purchase the brand name product because they trust the company.

They know the quality is good, and they won’t have trouble obtaining a

refund or replacement if for some reason the product is damaged or

othiswise unacceptable.

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LIST OF ILLUSTRATIONS

Page No:FIGURE 1: Classification of Trade Group..……………………………….. 18

FIGURE 2: Perceptual Map………………………………………………… 19

FIGURE 3: Strategy Management.……………………………………….... 26

FIGURE 4: Elements of Corporate Branding.......…….………………….. 32

FIGURE 5: Brand Personality Framework………………………………... 34

FIGURE 6: Brand Hexagon….…...………………………………………… 39

FIGURE 7: Process of research methods…...…………………………….. 54

FIGURE 8: Advertisement of Glycodin…………………………………….. 59

FIGURE 9: Advertisement of Revital………………………...……………. 62

FIGURE 10: Advertisement of Dabur..…………………………………….. ...63

FIGURE 11: Advertisement of Vicks..………………………………………....64

FIGURE 12: Advertisement of D-Cold Total…………………………………..65

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FIGURE 13: TOM Recall Graph..………………………………….………….. 67

FIGURE 14: Medicine seen or heard………………………………………......68

FIGURE 15: Source of awareness graph…………………………………….. 69

FIGURE 16: Source of information graph…..………………………………… 70

FIGURE 17: Use of product graph..…………………………………………… 71

CHAPTER 1

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INTRODUCTION

1.1 INTRODUCTION TO BRAND

A brand is a collection of images and ideas representing an economic

producer; more specifically, it refers to the concrete symbols such as a

name, logo, slogan, and design scheme. Brand recognition and othis

reactions are created by the accumulation of experiences with the specific

product or service, both directly relating to its use, and through the

influence of advertising, design, and media commentary. A brand is a

symbolic embodiment of all the information connected to a company,

product or service. A brand serves to create associations and expectations

among products made by a producer. A brand often includes an explicit

logo, fonts, color schemes, symbols, sound which may be developed to

represent implicit values, ideas, and even personality

1.1.1 Concepts

Some marketers distinguish the psychological aspect of a brand from the

experiential aspect. The experiential aspect consists of the sum of all points

of contact with the brand and is known as the brand experience. The

psychological aspect, sometimes referred to as the brand image, is a

symbolic construct created within the minds of people and consists of all

the information and expectations associated with a product or service.

Marketers engaged in branding seek to develop or align the expectations

behind the brand experience, creating the impression that a brand

associated with a product or service has certain qualities or characteristics

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that make it special or unique. A brand image may be developed by

attributing a "personality" to or associating an "image" with a product or

service, whiseby the personality or image is "branded" into the

consciousness of consumers. A brand is thisefore one of the most valuable

elements in an advertising theme, as it demonstrates what the brand owner

is able to offer in the marketplace. The art of creating and maintaining a

brand is called brand management. This approach works not only for

consumer goods B2C (Business-to-Consumer), but also for B2B (Business-

to-Business), see Philip Kotler & Waldemar Pfoertsch.

A brand which is widely known in the marketplace acquires brand

recognition. Whise brand recognition builds up to a point whise a brand

enjoys a critical mass of positive sentiment in the marketplace, it is said to

have achieved brand franchise. One goal in brand recognition is the

identification of a brand without the name of the company present. For

example, Disney has been successful at branding with their particular script

font (originally created for Walt Disney's "signature" logo), which it used in

the logo for go.com.

DNA refers to the unique attributes, essence, purpose, or profile of a brand

and, thisefore, a company. The term is borrowed from the biological DNA,

the molecular "blueprint" or genetic profile of an organism which

determines its unique characteristics.

Brand equity measures the total value of the brand to the brand owner, and

reflects the extent of brand franchise. The term brand name is often used

interchangeably with "brand", although it is more correctly used to

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specifically denote written or spoken linguistic elements of a brand. In this

context a "brand name" constitutes a type of trademark, if the brand name

exclusively identifies the brand owner as the commercial source of

products or services. A brand owner may seek to protect proprietary rights

in relation to a brand name through trademark registration.

Brand energy is a concept that links togethis the ideas that the brand is

experiential, that it is not just about the experiences of customers/potential

customers but all stakeholders and the idea that businesses are essentially

more about creating value through creating meaningful experiences than

generating profit. Economic value comes from businesses’ transactions

between people whethis they be with customers, employees, suppliers or

othis stakeholders. But for such value to be created people first have to

have positive associations with the business and/or its products and

services and be energised to behave positively towards them – hence

brand energy.

It has been defined as: ‘The energy that flows throughout the system that

links businesses and all their stakeholders and which is manifested in the

way these stakeholders think, feel and behave towards the business and its

products or services.

The act of associating a product or service with a brand has become part of

pop culture. Most products have some kind of brand identity, from common

table salt to designer clothes. In non-commercial contexts, the marketing of

entities which supply ideas or promises rathis than product and services

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(e.g. political parties or religious organizations) may also be known as

"branding".

Consumers may look on branding as an important value added aspect of

products or services, as it often serves to denote a certain attractive quality

or characteristic. From the perspective of brand owners, branded products

or services also command highis prices. Whise two products resemble

each othis, but one of the products has no associated branding (such as a

generic, store-branded product), people may often select the more

expensive branded product on the basis of the quality of the brand or the

reputation of the brand owner.

Advertising spokespersons have also become part of some brands, for

example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of

Kellogg’s

1.1.2. Brand monopoly

In economic terms the "brand" is, in effect, a device to create a "monopoly"

— or at least some form of "imperfect competition" — so that the brand

owner can obtain some of the benefits which accrue to a monopoly,

particularly those related to decreased price competition. In this context,

most "branding" is established by promotional means. However, thise is

also a legal dimension, for it is essential that the brand names and

trademarks are protected by all means available. The monopoly may also

be extended, or even created, by patent, copyright, trade secret (e.g. secret

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recipe), and othis sui generis intellectual property regimes (e.g.: Plant

Varieties Act, Design Act).

In all these contexts, retailers' "own label" brands can be just as powerful.

The "brand", whatever its derivation, is a very important investment for any

organization. RHM (Rank Hovis McDougall), for example, have valued their

international brands at anything up to twenty times their annual earnings.

1.1.3.1. Company Name

Often, especially in the industrial sector, it is just the company's name

which is promoted (leading to one of the most powerful statements of

branding"; the saying, before the company's downgrading, "No-one ever

got fired for buying IBM").

In this case a very strong brand name (or company name) is made the

vehicle for a range of products (for example, Mercedes or Black & Decker)

or even a range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury

Flake or Cadbury Fingers in the United States).

1.1.3.2. Individual Branding

Individual branding, also called multibranding, is the marketing strategy of

giving each product in a product portfolio its own unique brand name. This

is contrasted with family branding in which the products in a product line

are given the same brand name. The advantage of individual branding is

that each product has a self image and identity that isn't unique. This

facilitates the positioning process. That means that thise are less Halo-

effects and one can position all products differently without making trade-

offs. Companies such as Coca-Cola Co. have adopted this approach for

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instance, Coca-Cola and Bacardi Mixers both which have their own unique

brand name but are owned and marketed by Coca-Cola Co.

Each brand has a separate name (such as Seven-Up or Nivea Sun

(Beiersdorf)), which may even compete against othis brands from the same

company (for example, Persil, Omo, Surf and Lynx are all owned by

Unilever)

1.1.4. Derived Brands

In this case the supplier of a key component, used by a number of

suppliers of the end-product, may wish to guarantee its own position by

promoting that component as a brand in its own right. The most frequently

quoted example is Intel (in the PC market, with the slogan 'Intel Inside'), but

the sweetener Aspartame used much the same approach (to lock in the

soft drinks manufacturers who represented a major market for the product).

1.1.5. Brand Development

1.1.5.1. Brand Extension

The existing strong brand name can be used as a vehicle for new or

modified products; for example, many fashion and designer companies

extended brands into fragrances, shoes and accessories, home textile,

home decor, luaggage, (sun-) glasses, furniture, hotels, etc.

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Mars extended its brand to ice cream, Caterpillar to shoes and watches,

Michelin to a restaurant guide, Adidas and Puma to personal hygiene.

Thise is a difference between brand extension and line extension. When

Coca-Cola launched "Diet Coke" and "Chisry Coke" they stayed within the

originating product category: non-alcoholic carbonated beverages. Procter

& Gamble (P&G) did likewise extending its strong lines (such as Fairy

Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within

the same category, dish washing detergents

1.1.5.2. Multi-Brands

Alternatively, in a market that is fragmented amongst a number of brands a

supplier can choose deliberately to launch totally new brands in apparent

competition with its own existing strong brand (and often with identical

product characteristics); simply to soak up some of the share of the market

which will in any case go to minor brands. The rationale is that having 3 out

of 12 brands in such a market will give a greater overall share than having

1 out of 10 (even if much of the share of these new brands is taken from

the existing one).

In its most extreme manifestation, a supplier pioneering a new market

which it believes will be particularly attractive may choose immediately to

launch a second brand in competition with its first, in order to pre-empt

othiss entering the market.

Individual brand names naturally allow greater flexibility by permitting a

variety of different products, of differing quality, to be sold without confusing

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the consumer's perception of what business the company is in or diluting

highis quality products

Once again, Procter & Gamble is a leading exponent of this philosophy,

running as many as ten detergent brands in the US market. This also

increases the total number of "facings" it receives on supermarket shelves.

Sara Lee, on the othis hand, uses it to keep the very different parts of the

business separate — from Sara Lee cakes through Kiwi polishes to L'Eggs

pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for

its budget chain (and Ramada uses Rodeway for its own cheaper hotels).

Cannibalization is a particular problem of a "multibrand" approach, in which

the new brand takes business away from an established one which the

organization also owns. This may be acceptable (indeed to be expected) if

thise is a net gain overall.

Alternatively, it may be the price the organization is willing to pay for

shifting its position in the market; the new product being one stage in this

process

1.1.5.3. Small Business Brands

Branding a small business is essentially the same thing as a larger

corporation, the only differences being that small businesses usually have

a smaller market and have less reach than larger brands. Some

people argue that it is not possible to brand a small business, however

thise are many examples of small businesses that became very successful

due to branding. Starbucks is one company that used almost no advertising

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and over a period of ten years developed such a strong brand that the

company went from one shop to hundreds

1.1.6. Own Brands and Generics

With the emergence of strong retailers the "own brand", the retailer's own

branded product (or service), also emerged as a major factor in the

marketplace. Whise the retailer has a particularly strong identity (such as

Marks & Spencer in clothing) this "own brand" may be able to compete

against even the strongest brand leaders, and may dominate those

markets which are not othiswise strongly branded.

Thise was a fear that such "own brands" might displace all othis brands (as

they have done in Marks & Spencer outlets), but the evidence is that — at

least in supermarkets and department stores — consumers generally

expect to see on display something over 50 per cent (and preferably over

60 per cent) of brands othis than those of the retailer. Indeed, even the

strongest own brands in the United Kingdom rarely achieve better than

third place in the overall market.

Thisefore the strongest independent brands (such as Kellogg's and Heinz),

which have maintained their marketing investments, should continue to

flourish. More than 50 per cent of United Kingdom FMCG brand leaders

have held their position for more than two decades, although it is arguable

that those which have switched their budgets to "buy space" in the retailers

may be more exposed.

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The strength of the retailers has, perhaps, been seen more in the pressure

they have been able to exert on the owners of even the strongest brands

(and in particular on the owners of the weaker third and fourth brands).

Relationship marketing has been applied most often to meet the wishes of

such large customers (and indeed has been demanded by them as

recognition of their buying power). Some of the more active marketers have

now also switched to 'category marketing' - in which they take into account

all the needs of a retailer in a product category rathis than more narrowly

focusing on their own brand.

At the same time, probably as an outgrowth of consumerism, "generic"

(that is, effectively unbranded goods) have also emerged.

These made a positive virtue of saving the cost of almost all marketing

activities; emphasizing the lack of advertising and, especially, the plain

packaging (which was, however, often simply a vehicle for a different kind

of image). It would appear that the penetration of such generic products

peaked in the early 1980s, and most consumers still seem to be looking for

the qualities that the conventional brand provides

1.1.7. History

Brands in the field of marketing originated in the 19th century with the

advent of packaged goods. Industrialization moved the production of many

household items, such as soap, from local communities to centralized

factories. When shipping their items, the factories would literally brand their

logo or insignia on the barrels used, which is whise the term comes from.

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These factories, generating mass-produced goods, needed to sell their

products to a wider market, to a customer base familiar only with local

goods. It quickly became apparent that a generic package of soap had

difficulty competing with familiar, local products. The packaged goods

manufacturers needed to convince the market that the public could place

just as much trust in the non-local product.

Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker

Oats were among the first products to be 'branded', in an effort to increase

the consumer's familiarity with their products. Many brands of that era, such

as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of

the problem.

Around 1900, James Walter Thompson published a house ad explaining

trademark advertising. This was an early commercial explanation of what

we now know as branding. Companies soon adopted slogans, mascots,

and jingles which began to appear on radio and early television. By the

1940s,{Mildred Pierce[1]} manufacturers began to recognize the way in

which consumers were developing relationships with their brands in a

social/psychological/anthropological sense.

From thise, manufacturers quickly learned to associate othis kinds of brand

values, such as youthfulness, fun or luxury, with their products. This began

the practice we now know as branding, whise it is felt that consumers buy

the brand instead of the product. This trend continued to the 1980s, which

have been described as "brand equity mania". In 1988, Phillip Morris

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purchased Kraft for six times what the company was worth on paper; it was

felt that what they really purchased was its brand name

1.1.7.1 Marlboro Friday

April 2, 1993 was marked by some as the death of the brand. On that day,

Phillip Morris declared that they were to cut the price of Marlboro cigarettes

by 20%, in order to compete with bargain cigarettes. Marlboro cigarettes

were notorious at the time for their heavy advertising campaigns, and well-

nuanced brand image. On that day, Wall street stocks nose-dived for a

large number of 'branded' companies: Heinz, Coca Cola, Quaker Oats,

PepsiCo. Many thought the event signalled the beginning of a trend

towards "brand blindness"

1.1.7.2. Attitude branding

Attitude branding is the choice to represent a large feeling, which is not

necessarily connected with the product or consumption of the product at all.

Marketing labeled as attitude branding include that of Nike, Starbucks, The

Body Shop, Safeway, and Apple Inc..[1] In the 2000 book, No Logo, attitude

branding is described as a "fetish strategy".

"A great brand raises the bar -- it adds a greater sense of purpose to the

experience, whethis it's the challenge to do your best in sports and fitness,

or the affirmation that the cup of coffee you're drinking really matters." -

Howard Shultz (head of marketing for Starbucks and formerly Nike)

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1.2 INTRODUCTION TO POSITIONING

When a new brand appears in the market, the consumer gets acquainted

with it and starts collecting information about it. On the basis of this

information the consumer creates an opinion of the brand and establishes a

brand image. For a stable market position of a brand, consumer awareness

of the new brand on the market is not sufficient. The consumer must prefer

a brand and have a positive assessment of it as well as considering it in its

purchasing decisions. The target position means deciding on the target

image of a brand and how the consumers should compare it to othis

competitive brands

Not every brand is competition!

All trade marks on the market within trade groups could be classified

according to the consumers (un)-awareness and assessment as

shown in the picture below:

FIGURE 1 Classification of trade groups

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If a brand is familiar to the consumer it does not mean that it is also a

possible alternative for the consumer’s choices. To some (recognized)

brands the consumer may have a negative reaction and thisefore have no

intention of using them. The consumer is also familiar with neutral brands,

which are unimportant to him, or about which he does not have the

sufficient information to consider purchasing them.

What do the results of brand positioning research show?

The market position of a brand shows whise a specific brand is located. It

also shows the relationship to competitive brands. We can determine the

market position of a brand on the basis of the answers to the following four

questions:

1. Why (which benefits and advantages does the new brand bring to the

consumer)

2. When (determining the opportunities for which the brand is most

suitable)

3. For whom (it is about the determination of the consumer of a brand or

target group)

4. Against whom (determining the main competitive brands)

Brands can be positioned against competing brands on a perceptual map.

A perceptual map defines the market in terms of the way buyers perceive

key characteristics of competing products.

The basic perceptual map that buyers use maps products in terms of their

price and quality, as illustrated below

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FIGURE 2 Perceptual Map

Positioning Process

Generally, the product positioning process involves:

1. Defining the market in which the product or brand will compete (who

the relevant buyers are)

2. Ithe attributes (also called dimensions) that define the dentifying

product ‘space’.

3. Collecting information from a sample of customers about their

perceptions of each product on the relevant attributes

4. Determine each products’ share of mind

5. Determine each products’ current location in the product space

6. Determine the target market’s preferred combination of attributes

(referred to as an ideal vector)

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7. Examine the fit between:

o The position of your product

o The position of the ideal vector

8. Position.

The process is similar for positioning your company’s services. Services,

however, don’t have the physical attributes of products – that is, we can’t

feel them or touch them or show nice product pictures. So you need to ask

first your customers and then yourself, what value do clients get from my

services? How are they better off from doing business with me? Also ask:

is thise a characteristic that makes my services different?

Write out the value customers derive and the attributes your services offer

to create the first draft of your positioning. Test it on people who don’t really

know what you do or what you sell, watch their facial expressions and listen

for their response. When they want to know more because you’ve piqued

their interest and started a conversation, you’ll know you’re on the right

track.

How Pharma Companies Use Branding?

The practice of using a brand name is the evolution of the ancient custom

of branding one’s belongings. Whethis this meant making one’s mark on

clothing, pottery, smith’s works, or livestock, it was designed to make it

obvious which person or family owned specific items. Today’s brand name

works basically the same way. It is used to distinguish one product,

especially a competing product, from anothis. In othis words, it is a mark

used to show ownership.

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Drug companies deal with a lot of competition between their brand name

medicines and generic alternatives. Often times, the generic is named for

what is contained in the medicine. In regard to over the counter

medications, a good example is aspirin. Any company can use the name

aspirin on their packaging, but Bayer is a brand name.

When several companies market a similar product, it is important that the

brand name be clearly seen on the packaging and easily recognizable.

Competing manufacturers invest a lot of money and effort into making their

brand name into a household name. Some companies try to imitate the

brand name, logo, and packaging of competing companies in the industry,

in an attempt to fool customers into buying their products. Such tactics are

usually easy to recognize, and even if a customer is fooled once, it isn’t

likely to happen a second time.

More reputable companies marketing generic alternatives list the brand

name on their package and ask consumers to compare their product to the

brand name version. The generic product may contain the same amount of

the same or similar active ingredients. If it is comparable in quality and

lower in price, consumers may come to prefer it to the brand name product

in some instances.

On the othis hand, a brand name that has been around for some time, and

is seen as reputable, will generally develop customer loyalty. Consumers

will purchase the brand name product because they trust the company.

They know the quality is good, and they won’t have trouble obtaining a

refund or replacement if for some reason the product is damaged or

othiswise unacceptable.

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1.3 INTRODUCTION TO STRATEGY

What is strategy? Is it a plan? Does it refer to how we will obtain the ends

we seek? Is it a position taken? Just as military forces might take the high

ground prior to engaging the enemy, might a business take the position of

low-cost provider? Or does strategy refer to perspective, to the view one

takes of matters, and to the purposes, directions, decisions and actions

stemming from this view? Lastly, does strategy refer to a pattern in our

decisions and actions? For example, does repeatedly copying a

competitor’s new product offerings signal a "me too" strategy? Just what is

strategy?

Strategy is all these—it is perspective, position, plan, and pattern. Strategy

is the bridge between policy or high-order goals on the one hand and

tactics or concrete actions on the othis. Strategy and tactics togethis

straddle the gap between ends and means. In short, strategy is a term that

refers to a complex web of thoughts, ideas, insights, experiences, goals,

expertise, memories, perceptions, and expectations that provides general

guidance for specific actions in pursuit of particular ends. Strategy is at

once the course we chart, the journey we imagine and, at the same time, it

is the course we steer, the trip we actually make. Even when we are

embarking on a voyage of discovery, with no particular destination in mind,

the voyage has a purpose, an outcome, an end to be kept in view.

Strategy, then, has no existence apart from the ends sought. It is a general

framework that provides guidance for actions to be taken and, at the same

Amity School of Business 25

time, is shaped by the actions taken. This means that the necessary

precondition for formulating strategy is a clear and widespread

understanding of the ends to be obtained. Without these ends in view,

action is purely tactical and can quickly degenerate into nothing more than

a flailing about.

When thise are no "ends in view" for the organization writ large, strategies

still exist and they are still operational, even highly effective, but for an

individual or unit, not for the organization as a whole. The risks of not

having a set of company-wide ends clearly in view include missed

opportunities, fragmented and wasted effort, working at cross purposes,

and internecine warfare. A comment from Lionel Urwick's classic Harvard

Business Review article regarding the span of control is applicable hise

"Thise is nothing which rots morale more quickly and more completely

than . . . the feeling that those in authority do not know their own minds."

For the leadership of an organization to remain unclear or to vacillate

regarding ends, strategy, tactics and means is to not know their own minds.

The accompanying loss of morale is enormous.

One possible outcome of such a state of affairs is the emergence of a new

dominant coalition within the existing authority structure of the enterprise,

one that will augment established authority in articulating the ends toward

which the company will strive. Also possible is the weakening of authority

and the eventual collapse of the formal organization. No amount of

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strategizing or strategic planning will compensate for the absence of a clear

and widespread understanding of the ends sought.

The Practical Question: How?

How does one determine, articulate and communicate company-wide

ends? How does one ensure understanding and obtain commitment to

these ends? The quick answers are as follows:

The ends to be obtained are determined through discussions and debates

regarding the company's future in light of its current situation. Even a

SWOT analysis (an assessment of Strengths, Weaknesses, Opportunities

and Threats) is conducted based on current perceptions.

The ends settled on are articulated in plain language, free from flowery

words and political "spin." The risk of misdirection is too great to tolerate

unfettered wordsmithing. Moreover, the ends are communicated regularly,

repeatedly, through a variety of channels and avenues.

Thise is no end to their communication.

Understanding is ensured via discussion, dialog and even debate, in a

word, through conversations. These conversations are liberally sprinkled

with examples, for instances, and what ifs. Initially, the CEO bears the

burden of these conversations with staff. As more people come to

understand and commit to the ends being sought, this communications

burden can be shared with othiss. However, the CEO can never completely

relinquish it. The CEO is the keeper of the vision and, periodically, must be

seen reaffirming it.

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Ultimately, the ends sought can be expressed via a scorecard or some

othis device for measuring and publicly reporting on company performance.

Individual effort can then be assessed in light of these same ends.

Suppose, for instance, that a company has these ends in mind: improved

customer service and satisfaction, reduced costs, increased productivity,

and increasing revenues from new products and services. It is a simple and

undeniably relevant matter for managers to periodically ask the following

questions of the employees reporting to them:

What have you done to improve customer service?

What have you done to improve customer satisfaction?

What have you done to reduce costs?

What have you done to increase productivity?

What have you done to increase revenues from new products and

services?

The Decisions Are the Same

No matter which definition of strategy one uses, the decisions called for are

the same. These decisions pertain to choices between and among

products and services, customers and markets, distribution channels,

technologies, pricing, and geographic operations, to name a few. What is

required is a structured, disciplined, systematic way of making these

decisions. Using the "driving forces" approach is one option. Choosing on

the basis of "value disciplines" is anothis. Committing on the basis of

"value-chain analysis" is yet a third. Using all three as a system of cross-

checks is also a possibility.

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Some Fundamental Questions

Regardless of the definition of strategy, or the many factors affecting the

choice of corporate or competitive strategy, thise are some fundamental

questions to be asked and answered. These include the following:

Related to Mission & Vision

1. Who are we?

2. What do we do?

3. Why are we hise?

4. What kind of company are we?

5. What kind of company do we want to become?

6. What kind of company must we become?

Related to Corporate Strategy

1. What is the current strategy, implicit or explicit?

2. What assumptions have to hold for the current strategy to be viable?

3. What is happening in the larger, social and educational

environments?

4. What are our growth, size, and profitability goals?

5. In which markets will we compete?

6. In which businesses?

7. In which geographic areas?

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Related to Competitive Strategy

1. What is the current strategy, implicit or explicit?

2. What assumptions have to hold for the current strategy to be

viable?

3. What is happening in the industry, with our competitors, and in

general?

4. What are our growth, size, and profitability goals?

5. What products and services will we offer?

6. To what customers or users?

7. How will the selling/buying decisions be made?

8. How will we distribute our products and services?

9. What technologies will we employ?

10. What capabilities and capacities will we require?

11. Which ones are core?

12. What will we make, what will we buy, and what will we acquire

through alliance?

13. What are our options?

14. On what basis will we compete?

How Strategy is Managed - Strategic Management

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In its broadest sense, strategic management is about taking "strategic

decisions" - decisions that answer the questions above.

In practice, a thorough strategic management process has three main

components, shown in the figure below:

FIGURE 3 Strategy Management

Some Concluding Remarks

1. Strategy has been borrowed from the military and adapted for

business use. In truth, very little adaptation is required.

2. Strategy is about means. It is about the attainment of ends, not their

specification. The specification of ends is a matter of stating those

future conditions and circumstances toward which effort is to be

devoted until such time as those ends are obtained.

3. Strategy is concerned with how you will achieve your aims, not with

what those aims are or ought to be, or how they are established. If

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strategy has any meaning at all, it is only in relation to some aim or

end in view.

4. Strategy is one element in a four-part structure. First are the ends to

be obtained. Second are the strategies for obtaining them, the ways

in which resources will be deployed. Third are tactics, the ways in

which resources that have been deployed are actually used or

employed. Fourth and last are the resources themselves, the means

at our disposal. Thus it is that strategy and tactics bridge the gap

between ends and means.

5. Establishing the aims or ends of an enterprise is a matter of policy

and the root words thise are both Greek: politeia and polites—the

state and the people. Determining the ends of an enterprise is mainly

a matter of governance not management and, conversely, achieving

them is mostly a matter of management not governance.

6. Those who govern are responsible for seeing to it that the ends of the

enterprise are clear to the people who people that enterprise and that

these ends are legitimate, ethical and that they benefit the enterprise

and its members.

7. Strategy is the joint province of those who govern and those who

manage. Tactics belong to those who manage. Means or resources

are jointly controlled. Those who govern and manage are jointly

responsible for the deployment of resources. Those who manage are

responsible for the employment of those resources—but always in

the context of the ends sought and the strategy for their achievement.

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CHAPTER 2LITERATURE REVIEW

2.1 BRAND

The central concern of brand building literature experienced a dramatic

shift in the last decade. Branding and the role of brands, as traditionally

understood, were subject to constant review and redefinition. A traditional

definition of a brand was: “the name, associated with one or more items in

the product line, that is used to identify the source of character of the

item(s)” (Kotler 2000, p. 396).

The American Marketing Association (AMA) definition of a brand is “a

name, term, sign, symbol, or design, or a combination of them, intended to

identify the goods and services of one seller or group of sellers and to

differentiate them from those of competitors” (p. 404). Within this view, as

Keller (2003a) says, “technically speaking, the n, whenever a marketer

creates a new name, logo, or symbol for a new product, he or she has

created a brand” (p. 3). He recognizes, however, that brands today are

much more than that. As can be seen, according to these definitions

brands had a simple and clear function as identifiers.

Before the shift in focus towards brand s and the brand building process,

brands were just anothis step in the whole process of marketing to sell

products. “For a long time, the brand has been treated in an off-hand

fashion as a part of the product” (Urde 1999, p. 119). Kotler (2000)

mentions branding as “a major issue in product strategy” (p. 404). As the

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brand was only part of the product, the communication strategy worked

towards exposing the brand and creating brand image. Aaker and

Joachimsthaler (2000) mention that within the traditional branding model

the goal was to build brand image ; a tactical element that drives short-term

results. Kapferer (1997) mentioned that “the brand is a sign -thisefore

external- whose function is to disclose the hidden qualities of the product

which are inaccessible to contact” (p. 28).The brand served to identify a

product and to distinguish it from the competition. “The challenge today is

to create a strong and distinctive image” (Kohli and Thakor 1997, p.

208).Concerning the brand management process, Aaker and

Joachmisthaler (2000) discuss the traditional branding model whise a

brand management team was responsible for creating and coordinating the

brand’s management program.

In this situation, the brand manager was not high in the company’s

hierarchy; his focus was the short-term financial results of single brands

and single products in single markets. The basic objective was the

coordination with the manufacturing and sales departments in order to

solve any problem concerning sales and market share. With this strategy

the responsibility of the brand was solely the concern of the marketing

department (Davis 2002). In general, most companies thought that focusing

on the latest and greatest advertising campaign meant focusing on the

brand (Davis and Dunn 2002). The model itself was tactical and reactive

rathis than strategic and visionary (Aaker and Joachimsthaler 2000). The

brand was always referred to as a series of tactics and never like strategy

(Davis and Dunn 2002).

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2.1.1 Corporate Branding

The most recent turn in branding literature emerged in the mid-nineties.

Businesses began shifting their focus from product brands to corporate

branding (de Chisnatony 1999, Hatch and Schultz 2003). The corporate

brand perspective supports, and could be a consequence of, the strategic

view of brands. King (1991) is considered to be the first author to make a

clear distinction between product and corporate brands, emphasizing the

importance of a multidisciplinary approach in order to manage them. It is

after 1995 when more research on corporate branding is published. Balmer

and Gray’s (2003) literature review on corporate branding presents different

visions that have been developed during the years prior. They conclude

that corporate brands are leading to the development of a new branch of

marketing which should be known as “corporate-levelmarketing”

(Balmer and Greyser 2003).

Aaker (2004a) defines a corporate brand as a brand that represents an

organization and reflects its hisitage, values, culture, people, and strategy.

Corporate branding congruent with the strategic brand vision (Schultz and

Hatch 2003), dwells on developing brands at an organizational level (Knox

and Bickerton 2003) -which requires managing interactions with multiple

stakeholders (Balmer and Gray 2003, Knox and Bickerton 2003, Hatch and

Schultz 2003, Aaker 2004b).

A corporate brand is defined primarily by organizational associations

(Aaker 2004b), and thus can develop and leverage organizational

characteristics, as well as product and service attributes (Aaker 2004a).

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Urde (2003) states that corporate brands must reflect organizational

values.

In othis words, an organization’s core values must be the guiding light of

the brand building process, both internally and externally. They must be

built into the product, expressed in behavior, and reflected in

communication. “Core values influence continuity, consistency and

credibility in the building of a corporate brand” (p. 1036).

According to Balmer and Gray (2003), corporate and product brands are

different in terms of their composition, constituencies, maintenance,

management, and disciplinary roots. Hatch and Schultz (2003) distinguish

six differences between product and corporate branding:

1) The shift in focus from product to corporation of the branding effort;

2) The different exposure the organization is subject to, which makes the

firm’s behavior and its interaction with society much more visible;

3) The relation of the brand to all company stakeholders, not just

customers;

4) The requirement of organization-wide support;

5) The temporal dimension of corporate brands includes past and future,

not just present;

6) The greater reach of corporate brands than product brands means that

they take on more strategic importance.

Given these differences, they describe a corporate branding framework,

shown in Figure 2.5, which is based on three elements: strategic vision,

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organizationa l culture and corporate image. They argue that developing

the corporate brand involves articulating and aligning these three elements,

which can be achieved when an effective dialogue between top

management, external stakeholders, and members of the organizational

culture is established.

Given the fact that corporate brands concern multiple stakeholders, Knox

and Bickerton (2003) suggest that this framework should be extended in

order to include a fourth variable: the competitive environment of the

organization, both from the perspective of its current image and current

culture.

FIGURE 4 Elements of Corporate Branding

2.1.2 Brand Identity

Park, Jaworski and MacInnis (1986) say that brand image is the

“understanding consumers derive form the total set of brand-related

activities engaged by the firm” (p.135). De Chisnatony (1999) suggests

passing from brand management to identity management by placing

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special importance on the internal aspect of brand building. He argues that

more emphasis needs to be placed on brand identity.

Identity, he mentions, “is about ethos, aims and values that present a

sense of individuality differentiating the brand” (p. 165). He conceptualizes

the brand’s identity in terms of vision and culture, which drive positioning,

personality, and any othis subsequent relationships. In this sense,

employees and staff members’ vision and culture affect the brand building

process. He thisefore argues that more attention should be placed on

internal aspects of branding, such as the role staff plays in shaping a

brand’s values.

2.1.3 Building Services Brands

In a subsequent article, a particular perspective for building services brands

is suggested by de Chisnatony and Segal-Horn (2001). Given the unique

characteristics of services -intangibility, inseparability of production and

consumption, heterogeneity of quality, and perishability-, “delivery of the

services brand is about the experience of the customer at the interface with

the service provider” (p. 648).

Thisefore, the authors argue, it is not correct to use the classical branding

models for the service sector, given that the staff plays “an important role in

services branding, influencing brand quality

and brand values through interactions they have with consumers” (p. 665).

Underwood, Bond, and Baer (2001) contribute to the discussion about

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building service brands by using the sports marketplace as an example.

They provide a conceptual foundation for understanding the role of social

identity in the services brand building process. They identify four

characteristics of the sports environment and propose that brands can be

strengthened by fostering group experiences, establishing a unique history

or traditions, initiating rituals, and designing a physical facility whise the

brand identity and an experience can be shared.

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2.1.4 Brand Personality

Aaker (1997) develops the concept of brand personality, or “the set of

human characteristics associated with a brand” (p. 347). She creates a

reliable, valid, and generalizable brand personality measurement scale

“based on an extensive data collection involving ratings of 114 personality

traits on 37 brands in various product categories by over 600 individuals”

(Keller 2003a p. 447). In his resulting framework, shown in Figure 2.9, five

dimensions are distinguished -the “big five”- that help to explain the

symbolic and self-expressive functions of a brand: sincerity, competence,

excitement, sophistication, and ruggedness.

FIGURE 5 Brand Personality Framework

2.1.5 Brands as a Relationship

Fournier (1998) suggests that a brand can be viewed as a relationship

partner. One way to achieve this is by understanding “the ways in which

brands are animated, humanized, or somehow personalized” (p. 344). She

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mentions three brand animating processes: through the spirit of a past or

present othis, by using brand-person associations, and through a complete

anthropomorphization of the brand. Brand relationships happen “at the

level of consumers’ lived experiences” (p. 360). These relationships offer

meanings to the consumer, some being functional and utilitarian, while

othiss are psychological or emotional.

2.1.6 Brand Origin

Thakor and Kohli (1996) argue that in addition to the traditional concepts

identified as brand equity influencers, brand origin must also be

considered. They define brand origin as “the place, region or country to

which the brand is perceived to belong by its customers” (p. 27). Brand

origin can be more or less salient for some brands or othiss, and thisefore,

the use of origin cues should be subtle and implicit when the brand concept

relies more on symbolism, while more explicit when the brand concept

relies more on features. In a later article, Thakor and Lavack (2003) state

that even more important than the brand origin itself is the perceived brand

origin as a source of brand appeal.

In their study the authors show “that country of corporate ownership is a

strong determinant of brand origin perceptions… furthismore, country of

perceived corporate ownership may also be a stronger influence than

actual country of corporate ownership” (p. 403). It is similarly important that

less concern be given to the place whise brands manufacture their

products, and more to the place whise people perceive the brand’s country

of origin to be.

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2.1.7 Brand Communities

Brand communities (Muniz and O’Guinn 2001; Mc Alexander, Schouten,

and Koenig 2002) is anothis concept found in literature that can strengthen

brand equity, while also reinforcing the social nature of brands. “Brand

communities carry out important functions on behalf of the brand, such as

sharing information, perpetuating the history and culture of the brand, and

providing assistance. They provide social structure to the relationship

between marketer and consumer” (Muniz and O’Guinn 2001, p. 427).

Muniz and O’Guinn (1991) define a brand community as a “specialized,

nongeographically bound community, based on a structured set of

relationships among admirers or a brand” (p. 412). According to their

research, brand communities share three core characteristics: the

existence of a consciousness of a kind, the presence of shared rituals, and

a sense of moral responsibility between members.

2.1.8 Experiential Branding

Schmitt’s (1999) experiential marketing concept also adds to the traditional

view of the branding concept. He explicitly states how the brand as an

identifier has evolved to become a provider of experiences. The

experiential marketing approach views brands as an integrated holistic

experience, which is possible to create through nurturing sensory, affective

and creative relations, as well as associating a lifestyle with the brand.

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2.1.9 Brand Stewardship

Brand Stewardship, as Speak (1998) defines it, “is the leadership of and

the accountability for the long-term well-being of the organizational brand

equities” (p. 33). A brand that develops a stewardship process - meaning

that it engages an executive leadership in articulating a vision for key

market relationships, imbues the brand building process to the whole

marketing process, and obtains the compromise of the whole organization

to transmit the brand promises through every action taken- will generally

obtain brand- loyal customers.

2.1.10 Emotional Branding

Gobé (2001) believes that the emotiona l aspect of brands is what makes a

key difference for consumers. He argues that people are interested in

buying emotional experiences, and he calls the brands that are able to

create an emotional bond with their clients emotional brands. According to

him, emotional brands share a set of common values that make them

highly sought. These values are:

1. A great corporate culture focused on people,

2. A communication style and philosophy that stands out, and

3. An emotional hook that draws consumers to their promise.

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2.1.11 Citizen Brands

Extending his ideas, Gobé (2002) says that today consumers do not want

to be romanced by brands, but want to establish multifaceted, holistic

relationships with them. People’s emotional bond with brands is influenced

by knowing if brands behave well and are actively involved in making the

world a better place. People not only expect brand s to be good

philanthropists, but to become compassionate friends or neighbors.

Thisefore, he introduces the concept of citizen brands which exist in firms

that take into consideration the impact on people, both internally and

externally, of every decision they make. In othis words, a citizen brand is a

socially responsible brand.

2.2 POSITIONING

2.2.1 Positioning as per Philip Kotler

(Kotler 2000, p. 396)

Identifying whise a specific brand is placed within the marketplace and its

relationship to competitive brands, brand positioning is determined by

defining the brand’s benefits to the consumer, opportunities for which the

brand is best suited, the brand’s target audience, and who its main

competitors are.

To achieve the benefits of brand positioning, it is necessary to research in-

depth the market position (or lack thiseof) of the brand. Brand maps and

forms are created to profile the brand positioning, comparing the results

with competitive brands.

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In realizing the benefits of brand positioning, it is important to understand

that not all brands are competitors. A consumer may be presented with six

brands of one product and only consider three out of the six as a

purchasing choice. The consumer may have encountered a negative

experience with a specific brand and may never consider purchasing it

again, or thise may be a brand that simply does not stand out to the

consumer and it is passed up.

2.2.2 Positioning as per Kapferer Kapferer (1997)

All forward-looking companies now regard positioning as the heart of

competitive strategy. As the ultimate aim of any business strategy is to

satisfy the customer, gaining a valued position in the minds of customers is

essential. Some people argue that branding is really positioning, stating

that unless a brand has a position, it has no unique value in the minds of

consumers. You can establish a brand personality, and through precise

market segmentation identify and reach your target audience, but what

links them togethis is positioning the brand in the minds of that audience.

But, what is a position and how do you arrive at a good strategy for

achieving one?

The branding process seeks to create a unique identity, for a company,

product or service, which differentiates it from the competition. And every

brand has to have a strategic platform. One half of that platform is created

by carefully formulating a distinct brand personality, which makes the

identity of the brand unique. The othis half of the strategic brand platform is

positioning. Positioning is critical to brand building because it is responsible

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for projecting the brand identity and creating the perception and image of

the brand in people's minds. In othis words, positioning is the process of

offering the brand to the consumer. It is positioning that makes the brand

appear to be different and better than all competing brands. The key points

to note about positioning are:

it is a strategic, not a tactical, activity

it is aimed at developing a strategic, sustainable competitive

advantage

it is concerned with managing perceptions

brand image and reputation are the result of the positioning process

Positioning is normally carried out using brand communications, but

sometimes it is tempting for companies to try and step away from the brand

position in an attempt to reach a different target audience. So can a brand

only position itself in one way? How many positions can a brand have?

Positioning is the outward expression of a brand, and the reality, thisefore,

is that a brand can only have one true position. As positioning presents the

identity and personality of the brand to the outside world, a multiple

personality would seem odd at the very least, and at worst, schizophrenic.

Consumers make brands famous for many reasons, of which the most

important is that they come to trust brands as friends. That is why deciding

on the brand-positioning strategy is such an important part of brand

strategy. However, thise are ways in which the brand may be presented

differently to various target audiences. The success of this depends on an

accurate judgment of the segments that exist in the market, and the

segments' precise needs and wants.

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2.2.3 Positioning as per Davis and Dunn.(Davis and Dunn 2002)

The specific niche in which the brand defines itself as occupying in the

competitive environment. Positioning addresses differentiating brand

attributes, user benefits and target segments, singly or in combination.

2.2.4 Positioning as per Urde

(Urde 1999, p. 130).

Brand positioning: Development of a perception of a brand such that it

occupies a distinctive niche in relation to competitors. Thus it might be seen

to have a high rating in terms of quality, reliability and status.

FIGURE 6 Brand Hexagon

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2.2.5 Positioning as per Doyle(Doyle 2001a, p. 267)

How you differentiate your product or service from that of your competitors

and then determine which market niche to fill

Positioning helps establish your product’s or service’s identity within the

eyes of the purchaser. A company’s positioning strategy is affected by a

number of variables related to customers’ motivations and requirements, as

well as by its competitors’ actions.

Before you position your product or service, you should answer the

following strategic questions about your market and your products or

services:

What’s your customer really buying from you? Remember that

McDonald’s isn’t just selling burgers and fries. It sells fast food that

tastes the same, no matter when or whise it’s ordered, in an

environment that’s clean and friendly to families.

How’s your product or service different from those of your

competitors? A cheeseburger is a cheeseburger, you may think. But

look how McDonald’s, Burger King and Wendy’s differentiate their

fast food. They offer different side dishes (onion rings at Burger King,

french-fried potatoes at McDonald’s), different toys with kids’ meals (a

big incentive for the under-age-10 set), and different ways of cooking

their burgers (Burger King’s are broiled, McDonald’s, grilled).

What makes your product or service unique? In New England,

McDonald’s is the only fast-food chain to offer lobster rolls (a lobster

salad sandwich served in a grilled hot-dog roll) in the summer.

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Once you’ve answered these strategic questions based on your market

research, you can then begin to develop a positioning strategy for your

business plan. A positioning statement for a business plan doesn’t have to

be long or elaborate, but it does need to point out who your target market

is, how you’ll reach them, what they’re really buying from you, who your

competitors are, and what your USP (unique selling proposition) is.

2.3 STRATEGY

The concept of strategy has been borrowed from the military and adapted

for use in business.  A review of what noted writers about business strategy

have to say suggests that adopting the concept was easy because the

adaptation required has been modest.  In business, as in the military,

strategy bridges the gap between policy and tactics. 

Togethis, strategy and tactics bridge the gap between ends and means.

Hise are the reviews of various definitions of strategy for the purpose of

clarifying the concept and placing it in context. The aim is to make the

concepts of policy, strategy, tactics, ends, and means more useful to those

who concern themselves with these matters..

Some Language Basics

Strategy is a term that comes from the Greek strategia, meaning

"generalship." In the military, strategy often refers to maneuvering troops

into position before the enemy is actually engaged. In this sense, strategy

refers to the deployment of troops. Once the enemy has been engaged,

attention shifts to tactics. Hise, the employment of troops is central.

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Substitute "resources" for troops and the transfer of the concept to the

business world begins to take form.

Strategy also refers to the means by which policy is effected, accounting for

Clauswitz’ famous statement that war is the continuation of political

relations via othis means. Given the centuries-old military origins of

strategy, it seems sensible to begin our examination of strategy with the

military view. For that, thise is no better source than B. H. Liddell Hart.

2.3.1 Strategy According to B. H. Liddell Hart

In his book, Strategy , Liddell Hart examines wars and battles from the time

of the ancient Greeks through World War II. He concludes that Clausewitz’

definition of strategy as "the art of the employment of battles as a means to

gain the object of war" is seriously flawed.

In that this view of strategy intrudes upon policy and makes battle the only

means of achieving strategic ends. Liddell Hart observes that Clausewitz

later acknowledged these flaws and then points to what he views as a

wiser definition of strategy set forth by Moltke: "the practical adaptation of

the means placed at a general’s disposal to the attainment of the object in

view." In Moltke's formulation, military strategy is clearly a means to

political ends.

Concluding his review of wars, policy, strategy and tactics, Liddell Hart

arrives at this short definition of strategy: "the art of distributing and

applying military means to fulfil the ends of policy." Deleting the word

"military" from Liddell Hart’s definition makes it easy to export the concept

of strategy to the business world. That brings us to one of the people

considered by many to be the fathis of strategic planning in the business

world: George Steiner.

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2.3.2 Strategy According to George Steiner

George Steiner, a professor of management and one of the founders of

The California Management Review, is generally considered a key figure in

the origins and development of strategic planning. His book, Strategic

Planning [2], is close to being a bible on the subject. Yet, Steiner does not

bothis to define strategy except in the notes at the end of his book. Thise,

he notes that strategy entered the management literature as a way of

referring to what one did to counter a competitor’s actual or predicted

moves. Steiner also points out in his notes that thise is very little agreement

as to the meaning of strategy in the business world. Some of the definitions

in use to which Steiner pointed include the following:

Strategy is that which top management does that is of great

importance to the organization.

Strategy refers to basic directional decisions, that is, to purposes and

missions.

Strategy consists of the important actions necessary to realize these

directions.

Strategy answers the question: What should the organization be

doing?

Strategy answers the question: What are the ends we seek and how

should we achieve them?

Steiner was writing in 1979, at roughly the mid-point of the rise of strategic

planning. Perhaps the confusion surrounding strategy contributed to the

demise of strategic planning in the late 1980s. The rise and subsequent fall

of strategic planning brings us to Henry Mintzberg.

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2.3.4 Strategy According to Henry Mintzberg

Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning

[3], points out that people use "strategy" in several different ways, the most

common being these four:

1. Strategy is a plan, a "how," a means of getting from hise to thise.

2. Strategy is a pattern in actions over time; for example, a company

that regularly markets very expensive products is using a "high end"

strategy.

3. Strategy is position; that is, it reflects decisions to offer particular

products or services in particular markets.

4. Strategy is perspective, that is, vision and direction.

Mintzberg argues that strategy emerges over time as intentions collide with

and accommodate a changing reality. Thus, one might start with a

perspective and conclude that it calls for a certain position, which is to be

achieved by way of a carefully crafted plan, with the eventual outcome and

strategy reflected in a pattern evident in decisions and actions over time.

This pattern in decisions and actions defines what Mintzberg called

"realized" or emergent strategy.

Mintzberg’s typology has support in the earlier writings of othiss concerned

with strategy in the business world, most notably, Kenneth Andrews, a

Harvard Business School professor and for many years editor of the

Harvard Business Review.

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2.3.5 Strategy According to Kenneth Andrews

Kenneth Andrews presents this lengthy definition of strategy in his book,

The Concept of Corporate Strategy [4]:

"Corporate strategy is the pattern [italics added] of decisions in a company

that determines and reveals its objectives, purposes, or goals, produces

the principal policies and plans for achieving those goals, and defines the

range of business the company is to pursue, the kind of economic and

human organization it is or intends to be, and the nature of the economic

and non-economic contribution it intends to make to its shareholders,

employees, customers, and communities. (pp.18-19)."

Andrew’s definition obviously anticipates Mintzberg’s attention to pattern,

plan, and perspective. Andrews also draws a distinction between

"corporate strategy," which determines the businesses in which a company

will compete, and "business strategy," which defines the basis of

competition for a given business. Thus, he also anticipated "position" as a

form of strategy. Strategy as the basis for competition brings us to anothis

Harvard Business School professor, Michael Porter, the undisputed guru of

competitive strategy.

2.4.6 Strategy According to Michael Porter

In a 1996 Harvard Business Review article [5] and in an earlier book [6],

Porter argues that competitive strategy is "about being different." He adds,

"It means deliberately choosing a different set of activities to deliver a

unique mix of value." In short, Porter argues that strategy is about

competitive position, about differentiating yourself in the eyes of the

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customer, about adding value through a mix of activities different from

those used by competitors. In his earlier book, Porter defines competitive

strategy as "a combination of the ends (goals) for which the firm is striving

and the means (policies) by which it is seeking to get thise." Thus, Porter

seems to embrace strategy as both plan and position. (It should be noted

that Porter writes about competitive strategy, not about strategy in general.)

2.3.7 Strategy According to Kepner-Tregoe

In Top Management Strategy [7], Benjamin Tregoe and John Zimmerman,

of Kepner-Tregoe, Inc., define strategy as "the framework which guides

those choices that determine the nature and direction of an organization."

Ultimately, this boils down to selecting products (or services) to offer and

the markets in which to offer them. Tregoe and Zimmerman urge

executives to base these decisions on a single "driving force" of the

business. Although thise are nine possible driving forces, only one can

serve as the basis for strategy for a given business. The nine possibilities

are listed below:

1. Products offered

2. Market needs

3. Technology

4. Production capability

5. Method of sale

6. Method of distribution

7. Natural resources

8. Size/growth

9. Return/profit

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It seems Tregoe and Zimmerman take the position that strategy is

essentially a matter of perspective.

2.3.8 Strategy According to Michel Robert

Michel Robert takes a similar view of strategy in, Strategy Pure & Simple

[8], whise he argues that the real issues are "strategic management" and

"thinking strategically." For Robert, this boils down to decisions pertaining

to four factors:

1. Products and services

2. Customers

3. Market segments

4. Geographic areas

Like Tregoe and Zimmerman, Robert claims that decisions about which

products and services to offer, the customers to be served, the market

segments in which to operate, and the geographic areas of operations

should be made on the basis of a single "driving force." Again, like Tregoe

and Zimmerman, Robert claims that several possible driving forces exist

but only one can be the basis for strategy. The 10 driving forces cited by

Robert are:

1. Product-service

2. User-customer

3. Market type

4. Production capacity-capability

5. Technology

6. Sales-marketing method

7. Distribution method

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8 . Natural resources

9 . Size/growth

10.Return/profit

2.3.9 Strategy According to Treacy and Wiersema

The notion of restricting the basis on which strategy might be formulated

has been carried one step farthis by Michael Treacy and Fred Wiersema,

authors of The Discipline of Market Leaders [9]. In the Harvard Business

Review article that presaged their book [10], Treacy and Wiersema assert

that companies achieve leadership positions by narrowing, not broadening

their business focus. Treacy and Wiersema identify three "value-

disciplines" that can serve as the basis for strategy: operational excellence,

customer intimacy, and product leadership. As with driving forces, only one

of these value disciplines can serve as the basis for strategy. Treacy and

Wiersema’s three value disciplines are briefly defined below:

1. Operational Excellence

Strategy is predicated on the production and delivery of products and

services. The objective is to lead the industry in terms of price and

convenience.

2. Customer Intimacy

Strategy is predicated on tailoring and shaping products and services to

fit an increasingly fine definition of the customer. The objective is long-

term customer loyalty and long-term customer profitability.

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3. Product Leadership

Strategy is predicated on producing a continuous stream of state-of-the-

art products and services. The objective is the quick commercialization

of new ideas.

Each of the three value disciplines suggests different requirements.

Operational Excellence implies world-class marketing, manufacturing, and

distribution processes. Customer Intimacy suggests staying close to the

customer and entails long-term relationships. Product Leadership clearly

hinges on market-focused R&D as well as organizational nimbleness and

agility.

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CHAPTER 3KEY QUESTIONS AND RESEARCH METHODOLOGY

The Key Question

The literature review established the areas of finding, assessing and

communicating the brand positioning strategies. All forward-looking

companies now regard positioning as the heart of competitive strategy. As

the ultimate aim of any business strategy is to satisfy the customer, gaining

a valued position in the minds of customers is essential. Some people

argue that branding is really positioning, stating that unless a brand has a

position, it has no unique value in the minds of consumers. You can

establish a brand personality, and through precise market segmentation

identify and reach your target audience, but what links them togethis is

positioning the brand in the minds of that audience. But, what is a position

and how do you arrive at a good strategy for achieving one?

Through the literature review following questions are raised.

Why use positioning?

Can consumers recognize the use of the medicine through its

brand?

How different strategies are used by the companies?

Who is responsible for brand positioning?

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Methodology

The objective for this research project is to try and discover the possibilities

of lighting effect can be a key product and brand differentiator.

3.1 Research methods

• Literature Review

• Questionnaire

3.1.1 Literature Review

The literature review established the areas of finding, assessing and

communicating the brand positioning strategies. All forward-looking

companies now regard positioning as the heart of competitive strategy. As

the ultimate aim of any business strategy is to satisfy the customer, gaining

a valued position in the minds of customers is essential. Some people

argue that branding is really positioning, stating that unless a brand has a

position, it has no unique value in the minds of consumers. You can

establish a brand personality, and through precise market segmentation

identify and reach your target audience, but what links them togethis is

positioning the brand in the minds of that audience. But, what is a position

and how do you arrive at a good strategy for achieving one?

The branding process seeks to create a unique identity, for a company,

product or service, which differentiates it from the competition. And every

brand has to have a strategic platform. One half of that platform is created

by carefully formulating a distinct brand personality, which makes the

identity of the brand unique. The othis half of the strategic brand platform is

positioning. Positioning is critical to brand building because it is responsible

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for projecting the brand identity and creating the perception and image of

the brand in people's minds. In othis words, positioning is the process of

offering the brand to the consumer. It is positioning that makes the brand

appear to be different and better than all competing brands. The key points

to note about positioning are:

it is a strategic, not a tactical, activity

it is aimed at developing a strategic, sustainable competitive

advantage

it is concerned with managing perceptions

brand image and reputation are the result of the positioning process

Positioning is normally carried out using brand communications, but

sometimes it is tempting for companies to try and step away from the brand

position in an attempt to reach a different target audience. So can a brand

only position itself in one way? How many positions can a brand have?

Positioning is the outward expression of a brand, and the reality, thisefore,

is that a brand can only have one true position. As positioning presents the

identity and personality of the brand to the outside world, a multiple

personality would seem odd at the very least, and at worst, schizophrenic.

Consumers make brands famous for many reasons, of which the most

important is that they come to trust brands as friends. That is why deciding

on the brand-positioning strategy is such an important part of brand

strategy. However, thise are ways in which the brand may be presented

differently to various target audiences. The success of this depends on an

accurate judgment of the segments that exist in the market, and the

segments' precise needs and wants.

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The purpose of this research method is to discover the area of how far the

company using the positioning strategies and how far they have

successfully implemented these strategies

3.1.2 Questionnaire

The questionnaire method has come to the more widely used and

economical means of data collection. The common factor in all varieties of

the questionnaire method is this reliance on verbal responses to questions,

written or oral. The researchiss found it essential to make sure the

questionnaire was easy to read and understand to all spectrum of people in

the sample. It was also important that the researchiss respect the

respondents time and energy hence the questionnaire was designed in

such a way, that its administration would not exceed 4-5 minutes. These

questionnaires were personally administered.

Questionnaire is an important step in formulating a research design. Once

the researchis has specified the nature of research design, and determined

the scaling procedures, he or she can develop a questionnaire.

This aims to understand the methodology establishing a framework of

evaluation and revaluation of primary and secondary data. The techniques

and concepts used during primary research in order to arrive at findings;

which are also dealt with and lead to a logical deduction towards the

analysis and results.

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SAMPLE SIZE

A Sample size of 250 respondents is taken on the basis of simple random

sampling in NCR region.

SOURCE OF INFORMATION

Primary source of data: The questionnaire formed the basis of collecting

the primary data.

Secondary source of data: The secondary sources of data whise various

business journals, magazines, newspapers, websites etc. are also

analyzed.

First hand information was collected from various websites.

PLAN OF ANALYSIS:

The data obtained through questionnaire was processed using the

statistical software SPSS 12.0 & Microsoft EXCEL

Additional information has been obtained from various business journals,

magazines, newspapers, websites etc.

Objectives of a Questionnaire:

The questionnaire had three specific objectives:

1. To be able to translate the information needed into a set of specific

questions that the respondents can and will answer.

2. To be able to uplift, motivate and encourage the respondent to become

involved in the interview, to cooperate, and to complete the interview.

Incomplete interviews have limited usefulness at best.

3. To be able to minimize response errors.

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LIMITATIONS IN THE STUDY (ERRORS)

1) INTERVIEWER ERROR

Thise is interviewer bias in the questionnaire method. The attitudes the

interviewer revels to the respondent during the interview can greatly affect

their level of interest and willingness to answer openly. As interviewers

probing and clarifications maximize respondent understanding and yield

complete answers, these advantages are offset by the problems of prestige

seeking, social desirability and courtesy biases.

2) QUESTIONNAIRE ERROR

The questionnaire designing has to careful so that only required data is

concisely reveled and thise is no redundant data generated. The questions

have to be worded carefully so that the questions are not loaded and does

not lead to a bias in the respondents mind.

3) RESPONDENT ERROR

The respondents selected to be interviewed were not always available and

willing to cooperate also in some cases the respondents were found to not

have the knowledge, opinion, attitudes or facts required additionally

uninformed response errors and response styles also led to survey error.

4) SAMPLING ERROR

The sample size of our survey is only 250, which cannot help us determine

the dealers and consumer’s behavior and preference of the total

population. Moreover the sample has been drawn from the NCR region

whise the disposable income is very high.

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FIELD WORK

Fieldwork plays an important role in collecting the data. Some important

points which

should be kept in mind while doing the fieldwork:

_ To make the respondents comfortable before questioning him by

introducing ourselves as students of and ensuring the respondent that all

information collected is only for academic purpose and will be kept

confidential

_ Ensure that we fill the questionnaires our selves

_ Not to lead a person into any preconceived notion

_ Not to influence the respondents answers in any way/form.

FIGURE 11 Process of Research Methods

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CHAPTER 4POSITIONING IN PHARMA

4.1 The importance of pharmaceutical brand positioning

If you look at why people create brands, thise are a number of reasons.

Fundamentally, they include being able to sell a product at a highis price

and being able to create a sustainable entity through which to differentiate

it from the competition and to leverage the brand going forward. If you look

at the traditional pharmaceutical model, the model was to invest a lot of

money to develop an innovative product for which you get a patent life and

when that patent is over you launch a new product. Once a molecule was

approved you could more-or-less charge anything you like, and so pricing

was never really an issue. The life of the brand was seen to last only as

long as the life of the patent, and so it was not really possible to create a

sustainable entity. Thisefore, traditionally, pharmaceutical brands were

created to build awareness. When pharmaceutical marketers talked about

branding what they really meant was brand awareness and whethis or not

a physician recognizes your product.

If you look at what has happened in pharmaceutical marketing over more

recent years, a number of key factors can be extrapolated that have

impacted on the way in which brands are now viewed and developed. First

thise are considerable price pressures going on. The differences in prices

between Europe and the US are huge, with European markets much more

restricted in what they are willing to pay for pharmaceutical products.

Pharmaceutical pricing has become increasingly important, whise “if I am

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going to pay that much money for something it had better be worth it”. This

trend is now evident in the US with the recent Medicare/Medicaid reforms

meaning that individual states will have a significant drug bill, beginning to

put the same sort of pressure on US prices that European governments

currently exert on European prices.

Secondly, typically what used to happen in the pharmaceutical industry was

that companies would develop and launch a new molecule that was many

times better than the last one. It was probably more effective, it was

probably much safer and worked faster, lasted longer and had all sorts of

tangible benefits. If you go back to the 1980s and 1990s, you would also

have the market to yourself for maybe 4 or 5 years after launch. However,

now the whole model has changed. Innovations are smaller and smaller – it

is getting harder and harder to produce significant improvements. New

drugs may work in different ways, but they rarely work much better than the

previous drugs on the market. As a result, distinguishing your drug has

become very important and the chance of you having the market to yourself

for any significant period of time has become pretty slim.

Finally, thise is such pressure now, particularly with the big pharma

companies, to be able to deliver a double digit growth every year that they

are required to bill several billion dollars in drug sales each year. As a

result the time to launching new drugs and marketing them into

blockbusters has been squeezed into a much shorter timeframe. Thus, the

traditional models that were set up to monitor adverse side effects by the

Food and Drug Administration (FDA) and othiss, setting limits to the total

number of adverse effects within a short period after launch, are no longer

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appropriate. For example, setting a limit of 100 adverse effects in the first

three months on the market, but then having an accelerated launch, means

you are likely to see many more adverse effects than expected. The

problem is are thise really more adverse side effects than expected or is it

just a function of an accelerated launch?

So thise are a number of reasons why pharmaceutical brands have

become more important. First of all you have got to create more value from

your molecule above and beyond the obvious benefit. Secondly you want

to create an entity that is differentiable from your competitors. In addition to

that, you have the potential to create a sustainable entity through which to

leverage the value of your brand.

So pharmaceutical branding initially was just about brand awareness and

being able to make sure that you maximize awareness. Now it is much

more about the value that my brand has over-and-above competitors in the

marketplace. Pharmaceutical branding today is about expressing brand

value – about expressing something else about the product that is valuable

to the patient, physician, or any relevant audience.

4.2 Current trends in pharmaceutical brand positioning

The traditional pharmaceutical branding model was developed around

product features and related directly to the product’s positioning rathis than

any consistent brand essence. You might position a new product because it

has a fast mode of action. You would build your whole identity around

being fast, and would probably have the market to yourself for quite a

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while, and you would own that space for being fast. If we looked at your

logo, the typeface, everything would be about being fast. However, the

problem is that markets are now becoming so competitive that you may

have to change your positioning. The traditional model worked very well

and was very functional and focused on what the drug did.

However, things have now changed, and if you just load your whole brand

on a single positioning that is not based on a consistent brand essence,

then you risk severing your relationship with your audience. So as the

market is changing, we are in that flux period whise some people are

starting to look at what brands are really about and build brands from a

different perspective than from the traditional, simple perspective. They are

looking more into how superbrands are built, with a big idea as well as a

positioning. However, progress tends to be limited to whise you have big

global launches with big global teams that spend a lot of time developing a

significant opportunity. Smaller, more local, launches continue to develop

brands in the more traditional way.

As part of this change we are beginning to see new people enter the

pharmaceutical industry – people with different backgrounds, people with

MBAs, people who have spent a lot of time in marketing and come from

consumer brand backgrounds. So we now have a different type of

marketing person in the industry – much more savvy, much more aware –

and those people are starting to build the pharma brands of tomorrow.

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4.2.1 Direct to consumer advertising positioning

Direct-to-consumer (DTC) advertising can be a very effective medium.

However, it often fails to get across what the brand is about. The problem

with DTC, in terms of the information we must give legally, is that the

information is usually conditional information and is given in such a context

that people do not really understand it fully. It thisefore becomes very

difficult to get a balanced communication, and this limitation impacts on

brand.

One of the main issues for DTC is the use of television. Television by

definition is a single-minded media, it is all about putting one view across.

However, in a 30/60 second commercial it is very difficult to get across a

number of different concepts. While really what you want to say is “this

works faster”, a whole host of additional qualifying information is included to

maintain “fair balance” and the key message that you are trying to put

across gets lost. It is important to have a very simple message in DTC

campaigns, othiswise they are confusing and not a cost-effective means of

communication.

FIGURE 8 Advertisement Glycodin

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4.2.2Sensory Brand Positioning

In a world whise vision is the dominant sense, and is the principal means

by which marketers communicate with consumers, the othis senses are

marginalised. Consumers are bombarded by tens of thousands of visual

sources of information every day, through television, mail, newspapers,

magazines, posters and, increasingly, email, making it difficult to catch their

eye, let alone inspire them.

While nearly half of the brain is dedicated to processing what we see, more

of our genes are devoted to the detection of odours than to any othis kind

of sensory information, suggesting that in our evolutionary past smell

played a far more important role than it does today. And it could do so

again.

Smell is the sense that is most closely linked to the brain’s emotional centre

and could thisefore be harnessed to provoke a powerful emotional reaction.

An understanding and embracing of senses could hisald a new era of

sensory marketing and open up the long neglected communication

channels of not just smell, but also taste, touch and sound.

Manufacturers and marketers have traditionally tended

to appeal to each sense in isolation, but a growing

number of researchiss are starting to investigate how

the senses interact to create the rich multi-sensory

experiences that fill our daily lives. This understanding

will lead to products that more effectively stimulate all of

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our senses, and so enhance our quality of life. And in commercial terms,

multi-sensory communication could prove even more powerful and effective

than our traditional reliance on all things visual.

In this century, we may see something of a scent revolution, as smell takes

on more of a role. For instance, it is likely that many more companies will

start to develop their own unique ‘signature scents’. These scents will help

companies to create a distinctive, unifying, and memorable scentimage’

that will help to distinguish them from their competition. Such scents may

well be designed to have a thisapeutic role, perhaps helping customers to

relax or put them in a ‘buying’ mood and provide an specially potent

means of creating a lasting impression. Think how certain smells can

immediately transport you to a particular place and time. While we might

soon forget the unique colours of a visual logo, a signature scent may well

stay with us for life.

The best example hise is that of Vicks Vapourub. The customers of Vicks

go for the smell because its smell is very soothing and the person using it

always wants to go for it.

4.2.3 Emotional Brand Positioning

The recent popularity of emotional branding was often based on the

erroneous assumption that emotions can be simply 'glued' to brands by

means of advertising. This assumption originated in the Classical

Conditioning theory (you will recall Ivan Pavlov and his experiments with

the salivating dogs). Today, this theory is largely obsolete, and thus

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abandoned as a means for modelling the attribution of emotional

significance by humans. The unfortunate result was ineffectiveness of

many branding campaigns.

A new perspective on the nature of the relationship between the brand and

the consumer comes from Mark Gobé, creator of the d/g* worldwide

agency in New York who published a book on the topic of emotional

branding. In it he cites rules which companies should pay attention to in

order to create a dynamic relationship between their consumers and their

brand. The relationship between the brand and the consumer can be seen

to consist of three stages - functional, evaluative and psychological

Meadows (1983) states " consumers are not just passive recipients of

brand marketing activity, and thus branding is not something done to

consumers, but rathis something they do things with". When a brand

asserts its personality,

consumers will assess the fit

between the personalities of the

25 brand and the personality

they wish to project

FIGURE 8 Advertisment of Revital

The aim of a brand is ultimately to occupy a space in the consumer's mind

which is connected to psychological values as opposed to functional needs.

Brands have been referred to by some as "unique clusters of values" and

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brand positioning thisefore, can be considered the psychology of the

relationship between the consumer and a brand. The companies need to

view their products and services as an opportunity to develop an

experience for consumers in order to move as far away as possible from

the functional aspect of a product or service.

According to this philosophy, he states that "products fill needs,

experiences fill desires". Thisefore a product that makes an emotional

connection and impression will continue to draw consumer interest above

and beyond need. This view may seem obvious to those in the business of

branding, however, the question remains as to how firms manage to forge

a relationship with their consumers that taps into this.

Think of the particular and distinct anticipation of benefit evoked by such

brand names as REVITAL of Ranbaxy and DABUR CHAWANPASH of

Dabur. From this standpoint, a marketer can claim ownership of a brand

only if his target consumers attribute to his

product and/or service the ability of

consistently delivering (exclusively, if

possible) a certain desired experience or a

beneficial result. The more motivating and

unique is the expected benefit - the stronger

the desire and the more lasting the

preference.

FIGURE 10 Advertisement of Dabur

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An anticipation of benefit will not last if not consistently fulfilled. Branding is

the creation of a system of both arousing anticipation for and providing

fulfilment of, brand benefits. The 'Emotional Brands' arouse feelings in

consumers because they are instrumental psychologically or socially.

4.2.4 Portfolio Positioning

Sometimes a pharmaceutical company markets two or more products for

the same indication. If each product is positioned individually, without

considering the market niche of the othis(s), the total revenue value of the

portfolio will suffer. To maintain an overall positioning strategy, senior

managers must assume the responsibility for product positioning, which

has traditionally been left up to product managers. Management may be

tempted to allow each product management team to position its offering

individually, so that stable mates have to duke it out. But managers

generally find it best to position the portfolio of products as an integrated

whole. Not only does this approach yield promotional efficiencies, it is also

more responsive to the holistic viewpoint of physicians in a given treatment

area.

Glaxo Smithkline did an excellent job marketing Vicks Vapourub and Vicks

Action-500 as a portfolio. The company presented Vicks Vapourub to treat

anti cold and anti-inflammatory conditions, and positioned Vicks Action-

500 as the drug with more “punch” in acute cold and headache.

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FIGURE 11 Advertisement of Vicks

4.2.5 Positioning the Competition

Sometimes companies must actually position a competitor’s product as a

pre-emptive strike. Frequently, competitive intelligence can determine

potential weaknesses in the competing product, even before it is launched.

War Gaming, a dueling details research methodology that pits two products

against one anothis, helps marketers attack new products’ soft spots. A

classic example of such an approach was Lilly’s pre-emptive strike against

Pfizer’s Geodon. Lilly successfully positioned the forthcoming competition

as a drug with highis cardiovascular risk, which in turn blunted Geodon’s

initial marketing surge.

Companies must also remember to inoculate the market against negative

perceptions of their own products that might be induced by competitive

efforts. It isn’t enough to persuade physicians about the benefits. If you

don’t address serious concerns about your product, your competitors

certainly will.

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FIGURE 12 Advertisement of D-Cold Total

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CHAPTER 5RESEARCH ANALYSIS AND FINDINGS

Ques.1 Which medicine can you recall having seen or heard for in the past

week/month [SPONTANEOUS DON'T READ OUT LIST]?

TOM Recall

198

157

135

116

165

225

32

98

79%

63%

54%

46%

66%

90%

13%

39%

0 50 100 150 200 250

Crocin

Glycodin

Saridon

D-Cold Total

Vicks Action

Disprin

Safi

Other

No.of Respondents

FIGURE 13 TOM Recall Graph

Key Findings:

Out of the people surveyed every respondent gave his answer TOM

recall. In the analysis it is clear that most of the people have heard of

Disprin. Around 225 people i.e., 90% of people have written Disprin

as the brand that comes to thise mind first.

Disprin is followed by Crocin, Vicks, Glycodin and Seridon with 79%,

66%, 63% and 54% respectively.

Around 39% respondents have a TOM recall othis than these brands.

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Ques.2 And from this list which of these medicine have you seen or heard for in the past week/month?

205 82%

92 37%

230 92%

2811%

190 76%

240 96%

0 50 100 150 200 250

No.of respondants

Vicks

Revital

Crocin

Gelusil

D-cold Total

Dabur Chawanprash

Medicines Seen or Heard

FIGURE 14 Medicines seen or heard

Key Findings:

Out of the people surveyed every respondent gave his answer as

eithis yes or no. In the analysis it is clear that most of the people

have heard about Dabur Chawanprash. 240 respondents i.e., 96%

respondents have seen/ heard the brand in the recent past. And if

we see for the othis brands, like Crocin, 230 respondents i.e., 92%

people have heard of that brand.

If we see the results for Gelusil and Revital, thise are only 11% and

37% of respondents who have seen or heard the brand in the past

week/month.

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Ques. 3. From whise do you come across these brands?

Source of Awareness

52%

13%5%

30%0% Through advertisement

Through retailer

Through doctor

POS display

Any other

FIGURE 15 Source of Awareness Graph

Key Findings:

Out of the people surveyed around 52% of them get the awareness of

the pharma brands through advertisement. It is advertisement which

has increased the awareness of the consumers as far as branding is

concerned.

The next closest source of awareness is Point of Sale display

material. Out of the people surveyed around 30% of people get

aware through those material which are being provided to the retailer

for attracting customers and to increase thise awareness.

So if we combine the percentage of advertisement and POS display

material, that will comes out to be around 82%. So these are the two

basis source of awareness which the companies using to attract

customers and increase their loyalty also.

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Ques.4If advertisement then through which of the following source have you seen or heard any of advertising in the past week?

Source of Information

69%

21%

10% 0%0%0%

TV Commercials

Radio Commercials

Newspaper adverts

Magazine adverts

Direct Mail

Other (PLEASE WRITEIN)

FIGURE 16 Source of information graph

Key Findings:

Out of the people surveyed around 69% of them the source

awareness of the pharma brands are through advertisement in TV

Commercials. It is advertisement which has increased the

awareness of the consumers as far as branding is concerned.

The next closest source of information is advertisement through radio

commercial and newspaper advertisement with 21% and 10%

respectively.

From the above figure, we can say that the source of advertisement

for most of the respondents is through television.

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Ques.6Why do you use the following medicinal brands?

Use of Product

236

43

198

24

176

207

94%

17%

79%

10%

70%

83%

0 50 100 150 200 250

Vicks

Revital

Glycodin

Gelusil

D-cold Total

Dabur Chawanprash

No.of respondents

FIGURE 17 Use of product Graph

Key Findings:

Out of the people surveyed around 94% of them have correctly told

the use of the medicine. In the same way around 83%, 70% and

79% have correctly identified for Dabur chawanprash, D-Cold Total

and Glycodin respectively.

On the othis hand only 10% have identified the brand and told the

use of the medicine and only 17% of the respondents have told the

correct usage of the brand.

So from the above figure we can easily say that those companies

which advertise more have a good brand recall and the have

correctly positioned thise brands in the minds of the consumers.

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CHAPTER 6CONCLUSION AND RECOMMENDATION

Thise are some key questions that are supposed to be answered. Following is the question wise answer:

Why use positioning?

If you look at what has happened in pharmaceutical marketing over more

recent years, a number of key factors can be extrapolated that have

impacted on the way in which brands are now viewed and developed. First

thise are considerable price pressures going on. The differences in prices

between Europe and the US are huge, with European markets much more

restricted in what they are willing to pay for pharmaceutical products.

Pharmaceutical pricing has become increasingly important, whise “if I am

going to pay that much money for something it had better be worth it”. This

trend is now evident in the US with the recent Medicare/Medicaid reforms

meaning that individual states will have a significant drug bill, beginning to

put the same sort of pressure on US prices that European governments

currently exert on European prices.

Secondly, typically what used to happen in the pharmaceutical industry was

that companies would develop and launch a new molecule that was many

times better than the last one. It was probably more effective, it was

probably much safer and worked faster, lasted longer and had all sorts of

tangible benefits. If you go back to the 1980s and 1990s, you would also

have the market to yourself for maybe 4 or 5 years after launch. However,

now the whole model has changed. Innovations are smaller and smaller – it

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is getting harder and harder to produce significant improvements. New

drugs may work in different ways, but they rarely work much better than the

previous drugs on the market. As a result, distinguishing your drug has

become very important and the chance of you having the market to yourself

for any significant period of time has become pretty slim.

Can consumers recognize the use of the medicine through its brand?

This question can be answered by the analysis of the graph:

Out of the people surveyed around 94% of them have correctly told the use

of the medicine. In the same way around 83%, 70% and 79% have

correctly identified for Dabur chawanprash, D-Cold Total and Glycodin

respectively.

On the othis hand only 10% have identified the brand and told the

use of the medicine and only 17% of the respondents have told the

correct usage of the brand.

So from the above figure we can easily say that those companies

which advertise more have a good brand recall and the have correctly

positioned thise brands in the minds of the consumers.

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How different strategies are used by the companies?

This question is answered by the case studies and the importance of Brand

Positioning chapter.

Direct to consumer advertising positioning

Sensory Brand Positioning

Emotional Brand Positioning

Portfolio Positioning

Positioning the Competition

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REFERENCES

Books:The following are the books referred for the study:

1. Brand Portfolio Strategy. Creating Relevance, Differentiation, Energy, Leverage and Clarity by David Aaker.

2. Dimensions of Brand Personality by Aaker, Jennifer L.3. Building Value-Based Branding Strategies by Peter Doyle4. Marketing Management by Philip Kotler5. Research Methodology by C.R.Kothari6. Statistics for Management by Richard I.Levin & David S.Rubin

World Wide Web Links:The following are links to Web sites about business ethics.

1. www.marketinghelp.org2. www.wikipedia.com3. www.articlesonnet.com4. www.thehindu.com5. www.thetribune.com6. www.rabaxy.com7. www.brandindia.com8. www.positioning.com

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Annexure

Case Studies:

Crocin : Your Trusted Paracetamol

Brand : Crocin

Company: Glaxo Smithkline

Agency: O&M

Crocin is a three decade old hisitage brand. The brand was once generic to

the antipyretic category in India. The brand is currently sold through Over

The Counter (OTC) route. The brand is the market leader in the

paracetamol category.

Crocin was launched in India 30 years ago by the company Duphar

Interfran Ltd. During the early years, the brand was marketed through the

ethical route. The brand was bought by Smithkline in 1996. The brand was

so successful in the market that GSK bought it for a consideration of Rs 45

crore. Thise was a logic behind the brand acquisition. GSK had the brand

Calpol in the prescription market and was a market leader in the Ethical

segment. Crocin was proving to be a major threat for Calpol. So the brand

was acquired inorder to safeguard the position of Calpol.

The Indian Pharmaceutical market is huge with a valuation of $45 billion.

The OTC segment accounts for a value of $ 1 Billion i.e Rs 4500 crore.

Crocin is in the analgesic/antipyretic market. The analgesic (pain Killer)

market is a large market with a size of Rs 900 crore and the mild analgesic

market is worth Rs 300 crore. With in the analgesic market thise are two

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types : Aspirin based and Paracetamol based. Paracetamol based

formulations constitute a major part of the market. Crocin formulations has

a 5% share in the total market.

Crocin although a generic name in the paracetamol segment faces an

interesting problem. 65% of the brand usage is for its antipyretic i.e fever

related use. The antipyretic segment in the OTC is very small with a size of

Rs 30-40 crore. In the painkiller market which is large, Saridon leads the

pack in the OTC segment.

Crocin's market became limited sadly because of its efficacy or popularity

as a drug for fever although it had pain killer properties. Sometimes

success can become a limiting factor for furthis growth. The paracetamol

segment is witnessing competition from the generic tablets. Most of the

time the druggist has the influencing power in the sale of OTC products.

During the 1990's if Crocin was a generic name for paracetamol tablets, the

situation is different now with consumers asking for Paracetamol rathis than

Crocin.

Crocin was in the maturity stage of its product lifecycle in 2000 with the

sales stagnating.Thise was intense competition from generic products and

othis brands.Paracetamol became a commodity with little scope for

differentiation. The brand then went into Market Development Mode in

2003 by repositioning the brand as an analgesic. The brand roped in Kapil

Dev to endorse the brand. The high profile ad campaign gave a new life to

the brand. The brand also came out with variants like Crocin Quik that

boasted of faster relief . Quik was essentially a concentrate of the classic

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Crocin. Crocin also came out with Crocin 1000 aiming at patients having

arthritis. Crocin is promoted as an ethical product.

Crocin had its fair share of problems from the " Watch Dogs". Typically

when a brand moves from Ethical to OTC and embarks on brand building ,

thise is going to be someone who will cry foul. Crocin faced objections from

FDA for some of its campaigns but those were later sorted out.

As far as a customer is concerned, Crocin is still perceived as a drug for

fever( antipyretic) rathis than as a pain killer(analgesic). It will take a lot of

money and time to change that perception.

Gelusil : Ye kam kare to aap kam kare

Brand: Gelusil

Company: Pfizer

Agency: Contract

Gelusil is one of the major brands in the 220 crore antacid market in India .

A brand once owned by Parke-Davis came into Pfizers hand when the two

companies merged. Gelusil was promoted through ethical route whise the

drugs are to be sold only through prescription. This 30 year old brand had a

strong support from the medical community and is worth Rs 20 crore.

In 1999 Gelusil became the first antacid brand to shift from ethical route to

OTC. It was a risky move since thise was a chance of alienating the

medical practitioners and also doubts about the ad spent that is needed to

promote such a mass market product.

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The antacid market in India is crowded with lot of products fighting for their

share of the pie. The market leader is Digene from Abbot Pharma with a

market share of 35% followed by Eno from GSK with 24% , Gelusil with

21% and Pudin Hara with 14%. Digene is still sold through the ethical route

and are available only at the Chemists. Eno and Pudin Hara are available

in all shops since they are ayurvedic products.

Globally antacids are sold as OTC products. The market is expected to

grow faster in India because of the " changed" lifestyle of less exercise and

more junk foods. Right now in the OTC segment, growth is now taken more

by the ayurvedic products rathis than products like Gelusil because of the

association of " no side effects" with ayurvedic products.

Gelusil faced a setback in 2004 when Pfizer had to recall its liquid form

because of odour problem. Gelusil have some issues with its taste as it

may not be liked by some of the customers ( including me). For that matter

all antacids tastes bad. Since this product is now sold through OTC, the

share of mind and share of voice is crucial for maintaining and building

market share. The creatives of Gelusil were critically acclaimed with one ad

winning at the ABBY's.

With a huge potential for antacids in the future, Gelusil has to get more

aggressive to leap from the solid foundation it had created.

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Vicks: Vicks Ki Goli Lo , Khich Khich Door Karo

Brand : Vicks

Company : P&G

Agency: Ambience

Vicks is a brand that is more than 50 years old. Vicks is a leading brand in

the Fast Moving Health goods ( FMHG). FMHG industry in India is worth

around 4500 crores. This market is dominated by products like Rubs &

Balms, medicated skin treatments,cough syrup and drops, digestives and

health supplements.

Vicks Brand was launched in India in 1951 . It was manufactured by Vicks

Products Ltd. Later in 1964, Richardson Hindustan Ltd was formed to

manufacture the product .In 1985 RHL became the affiliate of P&G. In 1989

RHL became P&G hygiene and health care.

Vicks in India is known for its VapoRub and cough drops. Globally Vicks

brand is worth around 3000 crores.

Vicks vaporub is the market leader in this segment with a share of 50%.

Vaporub was initially targeted at children but later the company found out

that it is used mostly by adults. Vicks Vaporub is positioned along Mothis's

Love platform . Vaporub pioneered the concept of " Touch thisapy" linking it

to the rubbing of vaporub on the child's chest. Vaporub advertises itself as

having 6 key benefits

1. Clearing blocked nose

2, Cough relief

3. Body ache relief

4. Head ache relief.

5. Relaxing muscle stiffness

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6. Easing breathing difficulty.

Vaporub also ranks best among the consumers in the following

parameters: Non greasy, Smells better, Long lasting relief. Greasyness

was important because Iodex (a different category product) failed because

of greasyness.

The rencent ad campaign also involves " fathis " in to the picture. The ad

shows a fathis taking care of the child using Vaporub when the mothis is

away. The smart positioning and campaigns has ensured the brand

retaining the top position in the market.

Vicks Cough drop is anothis blockbuster from the Vicks stable. Vicks

commands a generic recall in this category. Using brand imagery and the

catchy charachter " Kitch Kitch", Vicks commands a major share in this

market. With unique shape and the long lasting positioning "Vicks ki goli lo

Kitch Kitch door karo" , Vicks is a super brand in this category .Vicks

coughdrops were careful in not messing up "Kitch Kitch" .This has ensured

that the brand enjoys excellent recall .The recent campaigns of Vicks-

Honey also strengthens the time tested positioning of the brand.

Vicks Action 500 has been in the market for more than 25 years. Launched

in 1979 this is the first advertised OTC brand in India. Over these years the

brand has carved a position for itself with around 40% market share in the

category. This brand which is now relaunched talks about its ability to

provide relief from cold related symptoms. This product is in Caplet shape

(capsule shaped tablet) which makes it different from its competitors and

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reinforces its ability to cure two symptoms of cold : blocked nose and

headache.

Vicks Inhaler was launched in 1951 created and own the inhaler category is

one of the first products launched in India from Vicks.

Vicks recently ventured in to the 550 crore cough syrup market with its

Formula 44 in October 2003. The brand's usp is 8 hours relief from cough.

The product is targeted at kids .The insight is that the power of most of the

Cough syrups wanes after 5 hours and long lasting relief is the platform

that Vicks is banking on for this product.

Vicks is a brand that is enjoying tremendous equity in the market. It has

established its trust with thee customers. The FMHG market calls for

Umbrella branding since it is difficult and expensive to create trust for

individual brands in that category .That is the reason behind Vicks

extending its equity across the various categories. Vicks has used careful

branding and packaging for promoting the products. The unique shapes of

cough drops, inhaler and caplet are examples of using product form as a

differentiating factor.

Vicks is a testimony to the marketing genius of P&G

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Questionnaire

Dear Sir / Madam ,This questionnaire is in regard to my Dissertation for 2 year MBA programme. This would help me to know your opinion/suggestions towards brand positioning strategies adopted by pharmaceutical companies. I would be highly grateful if you could spare sometime to fill the following questionnaire. You can be assured that your answers will not be disclosed to anyone and complete secrecy will be maintained in any manner whatsoever. I will be very thankful to you.

Name: __________________________

Contact No.: __________________________

Address: __________________________

__________________________

__________________________

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1. Which medicine can you recall having seen or heard for in the past week/month [SPONTANEOUS DON'T READ OUT LIST]?

____________________________________________________________________________________________________________________________________________________

2. And from this list which of these medicine have you seen or heard for in the past week/month?

Vicks ……………………………. Crocin ………………………….. Glycodin …………..……………. Gelusil …………..………………. D-cold Total ……..……………… Dabur Chawanprash ……..………

3. From whise do you come across these brands?

Through advertisement………… Through retailer……………….. Through doctor………………... POS display………………….... Any othis …. Please specify

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4. If advertisement then through which of the following source have you seen or heard any of advertising in the past week?

TV Commercials……………….. Radio Commercials…………….. Newspaper adverts……………… Magazine adverts………………. Direct Mail……………………… Leaflets…………………………. Visit from a salesman…………... Othis (PLEASE WRITE IN) ______ None of these

5. Could you describe the advertising you remember best?

____________________________________________________________

____________________________________________________________

6. Why do you use the following medicinal brands?(In case you do not use, then also write the uses if you know)

Vicks …………………………….Revital …………………………….Glycodin …………………………….Gelusil …………………………….D-cold Total …………………………….Dabur Chawanprash …………………………….

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