Brand Kya Hota Hai?

• You & Me

• Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it

• Origin: Brandr

Brand ki zaroorat kya thi?

• One Consumer

• One Need

• MANY PRODUCTS

• Kiss ko choose karun -- Confusion!

Ek Friday. Doh Filmein!

• Comedy vs. Comedy

• Two Star vs. Two Star

• Govinda vs. Tushar Kapoor

• Which one will you go for?

• Brand Govinda: Comedy Associations

Brand has…

• Name, Symbol or Logo

• Brand Purpose: Positioning

• Values & Personality: Image

• Bundle of Benefits: Promise

Consumer: Value Maximiser

• Brand: Biggest Value Driver!

• Cap – Rs. 50/-

• Cricket Team Cap – Rs. 500/-

• Team Cap used by Tendulkar – Rs. 5000/-

Brand Value…

MEANS OF IDENTIFICATION

PROMISE

RISK REDUCTION

IMAGE DRIVER

CONVENIENCE

Kya brand ho sakta hai?

• Gaadi

• Doodh

• Atta

• Namak

• Kya nahin brand ho sakta hai?

Brands kya reality mein better hote hain?

• Is Mercedes the best car?

• Is IIM Ahmedabad the best b-school?

• Maybe, maybe not!

• Perception!

Sounds easy!

• One NIKE. 1000 FAILED NIKE!

• Biggest challenge for a Marketer

• 3C Challenge– Cash– Consistency– Clutter

Brand Equity

Concept & Its Importance

The Challenge

More Products More Competitors More Media Same Consumers Same Needs GROWTH MANTRA?

MANTRA #1

Price

Sales Promotions

Price Wars

Short-Term

Mantra #2

Brand Building

Distinctive

Sustainable

Long-Term

What is Brand Equity?

“BE is a set of brand assets / liabilities

linked to a brand, its name or symbol

that add to or subtract from the value

provided by a product or service to a

customer”

Components of Brand Equity

Awareness: Name & Symbols

Perceived Quality

Brand Associations

Brand Loyalty

Other Proprietary Brand Assets

Awareness: Name & Symbols

Recognised vs. Unknown Brand

Familiarity drives perception

Familiar = Reliable + Good Quality

Unknown only a push option

Brand Associations

People, situations, moods, needs that consumers relate a brand to/with

Helps the brand occupy a distinct mindspace

Drives purchase

Perceived Quality

Consumers are not engineers! Quality is based on perception and

not specifications Brands drive perception of quality Perception drives purchase, premium

justification and ease of extension

Brand Loyalty

Cost of acquiring new customers is 10 times the cost of retaining old ones!

Products are non-living but brands aren’t Customers associate themselves with

brands (preservance/enhancement) Difficult to break-away to competition

Other Proprietary Assets

Trademarks

Patents

Channel Relationships

CBBE

Consumer Based Brand Equity

Case for Building a Brand

Improved Product Perceptions Greater Loyalty Insulation from Competition Higher Margins Inelasticity to Price Cooperation from Channel Effective Marketing Communication Leverage through Extensions

Million Dollar Questions What makes a strong brand?

How to build one?

The 4 Fundamental Questions

Who are you? (Brand Awareness)

What do you do? (Brand Knowledge)

What do I think about you? (Brand Attitude)

What about you and me? (Brand Relationship)

Brand Awareness Recognition & Recall

Depth: How easily do they recall? TOM: McDonald’s

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

Brand Knowledge Performance: Attributes & Benefits

Ingredients: KFC Consistency: McDonald’s Durability: Tata Serviceability: Maruti Service Efficiency: Domino’s Style & Design: Swatch

Imagery User Profile: Harley Usage Situation: I-Pill Personality: Tata Values & Beliefs: Johnie Walker

Should be strong, favourable & unique

Brand Attitude What consumers think and feel about the

brand

Brand Judgments: Opinion / Evaluation

Brand Feelings: Emotional Responses / Reactions

Brand Attitude Brand Judgments

Quality: Smirnoff Credibility: Apple Consideration: Sony Superiority: Intel

Brand Attitude Brand Feelings

Warmth: Archies Fun: Disney Excitement: MTV Security: SBI Social Approval: Mercedes Self-Respect: RbK

Brand Relationship Association with the Brand

Behavioral Loyalty: Fair & Lovely

Attitudinal Attachment: Budweiser

Sense of Community: Saab

Active Engagement: Enfield

Term Project: Phase I Understand the Current CBBE amongst the

Target Market

FGDs / DIs

Users / Lapsers

Define it as given in the subsequent slide

CBBE for Amazon

Books, Music & VideosBRAND AWARENESS

Conv., Variety, Low Prices

For Every Internet UserBRAND KNOWLEDGE

Good Value / Credibility

Smart ShopperBRAND ATTITUDE

Loyalty, Community, Engagement

BRAND RELATION

Defying Newton

What is a declining brand?

• A brand which has over a period of time been losing both market share and mind share amongst its target consumers

Top 10 Reasons for Declining of Brands

Cause #1

• Decline in quality– Cost-cutting (Maruti 800)– Increasing volumes (IIMs) – Relaxation in QC Measures (Café Coffee Day)– Perceptual Decline: Price, Channel, Sensorials,

Advertising, Packaging

Cause #2

• Resistance to Change– Product Oriented (Robin Blue)– Need Oriented (Nirma Detergent)– Consumer Oriented (Dabur Chavanprash)

• Why resistance?– Investment– Product Orientation– Tried & Tested– Complacency

Cause #3

• Single Product (Ambassador)– No portfolio– No extensions

• Problem?– Visibility– Stature– Decline in segment– Decline in product

Cause #4

• Excessive Pricing (Daewoo Cielo)– Premium pricing– High margins– Entry of Competition– Feeling of being cheated– Private Labels

Cause #5

• Wrong extensions (Pune Mirror)– Bad products– Crowded categories– Lower image products / segments

Cause #6

• Communication (Kelvinator)– Low levels of communication– Wrong message– Low impact– Brand Ambassador– Production values

Cause #7

• Channel management (CrossWord)– Attitude of Sales Team– Margins– No push– Emergence of alternate channel

Cause #8

• Ageing (HMT Watches)– Old age– No makeover (Product / Communication)– Perceived as ‘Not for me’

Cause #9

• Lack of differentiation (Acer Computers)– Cluttered market– No USP– No competitive advantage– ‘Me Too’ Branding

Cause #10

• Tough Consumer– Less emotional– Lowering levels of loyalty– Flirtatious attitude– More knowledge driven– Connected via media

Exercise: Failed Indian Brands

• Weikfield Jelly• Maruti Zen Estillo• Yamaha RX-100• Roohafza• Margo Soap• Kinetic Scooter• Fiat (Ageing)• Moti Soap• Savlon• Milkfood

Revitalising the Brand

Why revitalise?

Brand still has high awareness

Brand still has some values with consumer

Product still selling

Cost of building a new brand is far higher

Ways to Revitalise

#1: Increase Usage

Getting existing customers to use more of your product Frequency of Use (Shampoo)

Reminder Communication Positioning for frequent use Make the use easier Provide incentives Reduce undesirable consequences of frequent use Use at different occasions

#1: Increase Usage

Getting existing customers to use more of your product Quantity of Consumption (Chips)

Incentives on high use Creating larger servings Removing undesirable consequences of high consumption Positive associations

#2: Finding New Uses

Finding a new functional use for the brand Omni Cargo

How to find new uses? Observe usage of current customers Sponsor new use contests Use of competition’s product

When to adopt a new use? Potential market Feasibility & Cost Competitive reaction / takeover of the use

#3: Entering New Markets

Move into a new market area having growth potential

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

New Geography (Honda City / Gits)

#4: Repositioning the Brand

Existing positioning not relevant

Lacking appeal amongst TG

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

#5: Augmenting the Product

Providing features / services not expected by the consumer Must be things the consumer values Linked to the product

Drive consumer delight Nestle Coffee Shaker Titan Eye Free Eye Testing

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

technologically advanced product Bajaj: Scooters to Motorcycles Gillette: Stainless Steel Blades Intel: Self Destruction Windows Vista: Windows 7

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

#7: Extending the Brand

Take the brand into products which have a brighter future Dettol Soap Mcdonald’s: Salads & Yoghurt Crest: Beyond cavities!

Extension must be Relevant Sustainable

What if nothing works?

Option #1: Milking

Minimising investments, maximising cash flows Hold Milking Strategy: Pepsodent G

Sufficient Investment

Fast Milking Strategy: Ambassador Pulling out of investment Raising of prices in certain cases

Option #2: Divestment or Liquidation Exit out of a brand

HUL Denim Lee Cooper

Last Resort Rapid sales decline Milking also unprofitable with price pressures Weak brand position Exit barriers can be overcome

Brand Extensions

Why? When? How?

What is a Brand Extension?

Established brands are assets Marketers try and leverage these assets The process of using the brand name on

another product is known as extension Line Extensions (Lifebuoy Liquid Soap) Category Extensions (Nokia Laptops) Stretch Extensions (Intel Celeron)

Why Brand Extensions?

New products a driver of growth for a company Developing and launching requires millions Yet 9 out of 10 new products FAIL Brand not launching new products are also at times

perceived as old and staid Overdependence on any one brand could be

dangerous Parent brand may only appeal to a segment Brand is seen as boring and lacking variety Allows the competition to flank

Why Brand Extensions?

Brand extensions helps cut down costs Also increases the chances of success as the

consumer already has a favourable image Rejuvenates parent brand Reduces overdependence on a single product Category/Stretch extensions help bring in new users Line extensions cater to different needs of segments or

provide variety to existing users Can also be a tool for blocking competition

How do consumers evaluate?

Fit between Parent & Extension Fit in terms of ‘Core Differentiation’ FIT: Coke & Diet Coke (Taste) MISFIT: Pepsi & Crystal Pepsi (Colour) Extension must remain true to the core

values of the parent brand

How much to extend?

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

Harley: Clothing, Tatoos but not Energy Drink FAL: FAL for Men but not Perfect Radiance Pepsodent: Cavity, Plaque but not Fresh Breath Drivers

Frame of Reference (McDonald’s – Fast Food) POD (Oral-B Toffee) RTB (Gits – Pasta)

Moving Down

Why? Competition Private Labels

Challenge Protecting the Brand Distinguish the Extension

Sub-Branding Product

Moving Up

Why? Potential User Base Higher Margins

Challenge Managing Credibility Sub-Brand with a Descriptor (Kodak GOLD)

Risks in Extension

Line Extension: Overchoice & Confusion Dilution of Parent Equity: New Maggi, Coke Vanilla

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

Extensions in Portfolio

Cannibalisation

Distinct Role

Incremental Share

Different Needs

Key Questions

Positioning of Parent Brand? What am I using from the positioning? Is that valued by the consumer in the new

category in which I am extending? Does the consumer see a connect with the

parent? What will be the impact on the parent?