tan dan case january 2015
TRANSCRIPT
PGDM ELECTIVE
CUSTOMER ACQUISITION
JANUARY 2015
B2B BRANDING CASE
TAN DAN STEEL
HOW MUCH MONEY DOES RAVI NEED TO CREATE A
BRAND AND HOW WILL HE SPEND THE MONEY ?
Which of these things you can brand ?
• Sand
• Bricks
• Steel
• Nails
Ravi Tandon wants to build a brand
But cannot find money to do it
LET US DISCUSS
How much money he will need?
What should he plan to do with that money?
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Nicholas Ind’s Definition
A Known Badge that the brand’s target customers can search for
As a source of consistent satisfaction
“KNOWN” : 1) Promote it (2) Make it promotable (3) Make customers promote it
“BADGE” : Package of symbols, words, sounds, graphics
“TARGET CUSTOMERS” : Designed / Positioned for target customers / applications
“SEARCH FOR ” : to simplify customer’s decision process
“CONSISTENT” : Process and Organization for brand management
“SATISFACTION” : To anticipate / meet target customer’s changing expectations
Brand Investment
Brand Brand
FUNCTIONALFUNCTIONAL
ProductProduct
Features Features
PricePrice
EXPERIENCEEXPERIENCE
Places Places
PeoplePeople
ProcessProcess
Proof Proof
SYMBOLICSYMBOLIC
Logo, Colors, Logo, Colors,
GraphicsGraphics
Target CustomerTarget Customer
Brand Building Steps
• Choose your Target Audience
• Develop the Positioning
• Implement the positioning internally
• Develop the communication program
• Install brand management mechanism
Steel hollow sections (SHS)
Use less material They are strong They can bend
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Used in several verticals
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Decorative
Infrastructure
In spite of being a paradigm shift, SHS did not sell !
It had only 2% of the construction market
PARADIGM SHIFT
Previous : Aesthetics or Strength : Now Both !
Previous : Solidity or Flexibility : Now Both !
Previous : Quality or Cost : Now Both !
SHS Characteristics
• Less steel used – Less Cost
• Hollow structure – Better strength
– Special equipment needed to bend SHS : cannot be easily
done on site as is traditionally done. • Hence SHS needs special bending facility close by.
• Unlike RCC – Pre-fabrication possible
• saving on-site time, on-site supervision and water usage
Reasons
(1) DMU is complex : Architects, engineers,
fabricators and labor
(2) DMU is not aware / reached in earlier part of its
buying journey
Concept Selling
Solution Consultation
Standard selling
Facilitation
Effort was needed at all stages : education, solving problem, application support
Target Customers / Applications Selected
Industrial
• Sheds
• Conveyor Galleries
• Pipe Racks
• Technological Structures
• Cold Storages
Infrastructure
• Telecom Towers
• Railway stations
• Bus Terminals
• Airports - Terminals
• Stadiums
• FOBs
• NHAI
• Bridges
Architectural
• Shopping Malls
• Commercial Buildings
• Office Construction
General Engineering
• Scaffoldings
• Car Park
• Furniture
• Bus Body
• Defence Bunkers
• Rural Housing
• Pre fab shelters / Street Furniture
Value Propositions for various segments
• Architects – You can leave visible stamp of your work for all to see
because you can design dream-like structures and even
your clients will accept because they are cheaper
• Contractors – Less cost, less space for bending bars on site, less time for
RCC curing, less water used, faster completion of work
• Clients – Unique (more salable building) and less cost too
‘Directions’
Focus group discussions with key
Architects/Structural Engineers
Workshops with Business
Development Partners – Sharing of
best practices and Applications
Fabricator Workshops
Technical training tied up with
INSDAG in key consumption centers
across India
Structura Profiles and Updates
Showcasing the usages of Steel
Hollow Sections and Applications
Quarterly and Annual Publications
Targeted over 160 fabricators on
practices of Fabrication – Enabling usage
Reaching out to registered data base of
2000 Architects and Structural Engineers
Establishing and reinforcing connect -
Simultaneously updating on the latest
product developments
Creating Brand Ambassadors – Who
have featured in the publications
Niche : Seminars, Workshops, Publications
A Design competition to create an Architectural and
Engineering symbol for contemporary India
Education and Excitement
The 12 Finalists
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Platform for knowledge dissemination in place
Single window solution : Free design and Structural /Fabrication Support
Connect with all members of value chain : Architect , Engineer , Project Consultant , Material Vendor , Fabricator , End Consumer
Leading to Close relationship with all target groups (Business as well as partnership)
Distributors became Business Development Partners
Launched “Studio”
15 Business Development Partners
Did “Business Creation” and not just “Distribution”
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Product Manager Conducts a Seminar
The look and feel of the studio
Back office of the studio – Bending Facility
Benefits to Airport
Authority of India
Cost effective
Time to complete
Launch of “Early Vendor Initiative” (EVI)
with Airport Authority of India leads to usage at 26 airports
Airports Stadia Railways/Metro
Commercial Bldgs Warehouses Sky Walks
Tsunami Shelters Safe Homes Frame Rural Housing
IMPACT : India’s skyline has transformed ….
Sales Fig’ in Tons
FY’95
Fast Growing brand of TATA STEEL
Turnover of Rs 600 Cr In 2010-11 against Rs 120 Cr in 2005-06..
5 Time Growth in Top Line !
[email protected] +9821046013
All of this is by the external agencies
Logo
Visibility
Appeal
Reputation
Trust
Design
Creativity
Uniqueness
Different Thinking
Location
Attraction
[email protected] +9821046013
[email protected] +9821046013
A Brand Pays for itself
new business possibilities
Others face price comparison with you Rs !!!
margins will be higher Rs !!!
Dealers are keen Rs !!!
Vendors are proud Rs !!!
Investors will invest Rs !!!
Employees will join easily Rs !!! 30
[email protected] +9821046013
Rs !!!
Rs !!!
Rs !!!
Rs !!!
Rs !!!
Rs !!!
Rs !!!
[email protected] +9821046013
Top 5 brands are not consumer brands !
Brand Value in 2004
(Rs 1000 Crores)
Coca-Cola 340
Microsoft 300
IBM 260
GE 240
Intel 180
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2 Tests of a superior brand
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Its Target Customers Know the Brand
you and ask for it by its name
Its Target Customers think the brand
is unique and better than other options
in terms of its ability to satisfy
[email protected] +9821046013
[email protected] +9821046013
Thank You
[email protected] +9821046013
You create a brand; not your agency.