Contents Presentation Objective Presentation Objective ... Clinic Plus, Ayush, Sunsilk ... The Volkswagen bus ad, talked only about ‘plenty of room

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What is the Territory of the Brand? What is the Territory of the Brand?

Contents

Presentation Objective

Understanding Branding

From Products to Brands

Brand Attributes

Brand Management

Brand Architecture

Exercise

Brand Building

Brand Audit

Connection Triangle

Big Idea

Evaluating Advertising

Presentation Objective

To understand the facets / issues involved in branding

To develop a framework for building a brand

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Contents

Brand Building UnderstandingBranding

Module 1


UnderstandingBranding

Brand Building

Module 1


ExerciseArchitecture

Management

Attributes

Products to brands


Brand Building

Module 1



Management

Attributes

Products to brands


Brand Building

3

Module 1 - Stage 1

From Products to BrandsUnderstandingBranding

Brand Building


ManagementAttributes

Prod

ds

Products to brands

Module 1 - Stage 1


A brand is more distinctive than a product

It is first of all a name, a means of identification

Secondly it s a set of added values offering both functional and psychological benefits


Brand Building



Prod

ds

Products to brands

Brand v/s. Product

Above all ‘a brand is a promise’

Module 1 - Stage 1

From Products to BrandsUnderstandingBranding

Brand Building



Prod

ds

Products to brands

A Brand is a Promise

“ …A seller’s promise to deliver consistently a specific set of features, benefits and services to buyers.

Module 1 - Stage 1


…….a short-hand that communicates powerfully & reduces uncertainty

4

Fevicol Case

Year Adspend as % of Sales

92-93 1.2%93-94 2.2%94-95 2.3%95-96 2.4%96-97 3.2%97-98 3.6%98-99 3.1%

151.68 5.51191.75 6

138 3.28156.19 5

77.12 1.7102.16 2.3

46.02 0.55

Sales Value ( Rs. Crores)

AdSpend ( Rs. Crores)

Fevicol Case

Fevicol's Market Share of Synthetic Adhesive Category

10%

31.43%

42%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1991 1994 1999

Fevicol CaseFevicol's Growth Rate vs. Category Growth Rate

10% 8%

55%

16%

0%

10%

20%

30%

40%

50%

60%

1992-95 1995-99

Category Fevicol

Brand as an Asset

“If Coca Cola lost everything except for ‘the formula’ and its brand name , it could walk into any bank in the world and get $100 billion loan to start from the scratch”Fortune Magazine

5

Attributes

Module 1



Brand Building


Management

Attributes

Products to brands

Module 1



Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

Module 1 - Stage 2

Attributes

Immutable Law of Name

In the long run the brand is nothing more than a name

Module 1 - Stage 2

Attributes

Brand Name

Short

Kodak, Fuji

CNN an AOL Time Warner Company Distinctive

• Toyota’s Lexus is distinctive.Toyota’s Luxury commonplace

• Orange was a striking name in a world of tel and coms Not mean anything rude or silly in another language

Big Macs( McDonald’s) is a slang for big breasts in Canada


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

6

Module 1 - Stage 2

Attributes

Brand Name

Avoid generic / line extended names

• Xerox as opposed to Haloids Paper Master

• Xerox (Copier) is powerful. Xerox Computer is not

Changing your name will not overcome a bad strategy

• “Monday” (Price Waterhouse Coopers )


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

Module 1 - Stage 2

Attributes

A brand’s logotype should be designed to fit the eyes.

Both eyes

Immutable Law of Shape

Module 1 - Stage 2

AttributesUnderstandingBranding

Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

Brand Logo

• Simple logo, designed to fit both eyes

• Mercedes three star

• Logos with a horizontal bias

• Logo with a horizontal bias is esp. useful for retail brands

• Logo font has to be clear and legible

• A housewife does not buy Ariel because it is written in a specific font

Module 1 - Stage 2

Attributes

7

Module 1 - Stage 2

Attributes

A brand should use a colour opposite of its rival

Immutable Law of Colour

Module 1 - Stage 2

Attributes

The Cola Wars: Energy Vs. Peace

Module 1 - Stage 2

Attributes

Brand Colours

Colours have meanings• Purple means royalty

• Red is energetic

• Blue is peaceful

Opposite colours can differentiate• Coke is red, Pepsi is blue

• Kodak is yellow, Fuji is green


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

Module 1 - Stage 2

Attributes

Brand Colours..

Colours can help you stand out

• FedEx’s orange and purple packet stands out in corporate blue

Logo and colours help, but the power of the brand

Essentially in the meaning of the brand name in consumer’s mind, its essence


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

8

Module 1 - Stage 2

Attributes

Most important thing for a brand is its single mindedness.

Immutable Law of Singularity

Module 1 - Stage 2

Attributes

Single-mindedness means consistency. Fresh and interesting manifestations of a single idea.

Module 1 - Stage 2

Attributes

Brand Essence

A brand must “leverage a compelling truth” Linux stands for freedom as opposed to Microsoft’s monopoly

A brand should mean a single powerful thing: the essence Essence of Volvo is Safety

Essence of Tata is trust

Essence of Fevicol is bonding


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

Module 1 - Stage 2

Attributes

Brand Essence

A brand should also be clear of what is not its essence In India, STAR NEWS is not a channel of the masses unlike STAR PLUS

A brand should drive single mindedly its essence Volvo has been selling safety for 35 years Raymond has been selling the complete man for over 2 decades Essence of Dettol is protection against germs

A brand loses its essence if it starts meaning a lot of things What is Miller :A regular,light,draft,cheap, expensive beer


Brand Building


Management

Attributes

Products to brands

Name Logo

Colours Essence

9

Module 1 - Stage 2

Attributes

A brand should try to own a word in consumer’s mind

Immutable Law of Word

Module 1 - Stage 2

Attributes

Attributes

Module 1



Brand Building


Management

Products to brands

Management

Attributes

Module 1



Brand Building


Products to brands

ManagementManagement

Co-Brand Stealth Brand

Fighting Brand Multi-Brand

10

Module 1 - Stage 3

Management

Co-Brand

Brands need to address a similar need segment– Kellogg's Pop-tarts with Smuckers Jam

Brands with complementary strengths: Seen often on the Net

– NY Times gives Amazon credibility

– Amazon makes NY Times look modern.


Brand Building


Management

AttributesProducts to brands



Module 1 - Stage 3

Management

Stealth Brand

Brand building that attracts customer attention but not of rivals

• Home-to-home, word of mouth / PR, internet community building

• Krispy Kreme relies only on PR

Good option when unsure of a new medium/market

Little promotion for Maytag website as opposed to a buy.com. Maytag sold 1000s of Neptune washers on web


Brand Building


Management




Module 1 - Stage 3

Management

Fighting Brand

Pricing led branding option. Works as a competitive response.

• Smirnov (Heublein) Case

Smirnov attacked by W’schmidt @ $1 less

Heublein raised the price of Smirnov

Heublein introduced Reiska(fighting brand) at the same price point as W’schmidt

Heublein added Popov lower than both


Brand Building


Management




Module 1 - Stage 3

Management

Fighting Brand

Built as new, independent brand

• Prevents dilution of the leading brand

HLL introduced Wheel to fight Nirma


Brand Building


Management




11

Module 1 - Stage 3

Management

There is a time and place to launch a second brand

Immutable Law of Siblings

Possibly even a third or a fourth brand..

Module 1 - Stage 3

Management

Multi Brand

Key to a multi-brand approach is to give each sibling a unique identity

Time, Fortune,Life, Money, People

Tempting to mash the brands and top it with corporate frosting Tata Salt,Tata Tea

Second brand risks diluting equity

Is Kingfisher Mild drinker more likely to be from Kingfisher or from Fosters?


Brand Building


Management




Module 1 - Stage 3

Management

Multi Brand..

Common product area focus

Shampoos: Clinic Plus, Ayush, Sunsilk

Single attribute segmentation

Price:Maruti 800, Zen, Esteem

Sibling creates a new category

Herbal Anti-Dandruff category by Ayush


Brand Building


Management




12

Attributes

Module 1



Brand Building


Management

Products to brands

Architecture

Attributes

Module 1



Brand Building

ExerciseManagement

Products to brands

ArchitectureArchitecture

House of Brands

Endorsed Brand

Sub Brand Branded House

Module 1 - Stage 4

Architecture

Immutable Law of Contraction

A brand becomes stronger when you narrow its focus

Module 1 - Stage 4

Architecture

The Economist is red and daring. Provocative, brutally honest and non-conformist

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Module 1 - Stage 4

Architecture

House of Brands

Often dictated by corporate strategy. Core competence of the firm is marketing / branding • P&G is the prime example. Its “big” with the channel

Multiple independent brands allows company to fill each niche• Helps brand focus

Gives an opportunity for the company to focus on each brand and contract its scope.


Brand Building



Products to brands

House of Brands

Endorsed Brand


Module 1 - Stage 4

Architecture

Endorsed Brand

Endorsement used as a device to transfer brand assets from one brand(corporate) to another

Titan from TATA, transferring trust

Danger of diluting the equity of endorsing brand

Best as a transitional strategy

Gain, from makers of Ariel


Brand Building



Products to brands

House of Brands

Endorsed Brand


Module 1 - Stage 4

Architecture

Immutable Law of Expansion

Brand’s power inversely proportional to scope.

Module 1 - Stage 4

Architecture

The Volkswagen bus ad, talked only about ‘plenty of room’

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Module 1 - Stage 4

Architecture

Sub Brand

Inside out branding.Company pushes core brand in different directions

Sub-branding can destroy what branding builds

• Donna Karan menswear, DKNY, DKNY menswear, DKNY kids


Brand Building



Products to brands

House of Brands

Endorsed Brand


Module 1 - Stage 4

Architecture

Immutable Law of Company

Brands are brands, companies are companies. There is a difference.

Module 1 - Stage 4

Architecture

Branded house

Consumers buy brands, not companies

Danger of branded house, being many things to one group of people

• Virgin? Does “Virgin trains” work?

May motivate trade, so might be useful for PR purposes with trade/other stakeholders

• P& G way


Brand Building



Products to brands

House of Brands

Endorsed Brand


Attributes

Module 1



Brand Building


Management

Products to brands

Exercise

15

Module 1


Two brand positioning within the same brand family?How do we reconcile the two positions?

The options available to us

1. Single brand

2. Stand Alone New Brand

3. Transfer of Brand Assets from an existing brand

What are the pros and cons of each option ?

Exercise

Attributes

Module 1



Brand Building

Architecture

Management

Products to brands

ExerciseExercise

Options Single Brand Family

Stand Alone Brand

Transfer of Brand Assets

Module 1 - Stage5

Exercise

Single Brand Family

‘Stand-alone’ New Brand

Transfer of Brand Assets ‘x from y’


Brand Building

Exercise

Architecture


Products to brands


Stand Alone Brand


Module 1 - Stage5

Exercise

Option : Single Brand family

Constant values / different products

• Dettol antiseptic / soap / hand wash

• Crest toothpaste / Mouth wash (But not chewing gum)

Differentiate on product usage

• IBM Value Point - Entry level purchase

• Gillette Good News Line - Disposables


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

16

Module 1 - Stage5

Exercise


Use as umbrella branding TATA Trust SONY Electronic technology

But Taj from TATA for Performance segments

Difficult for a single brand to straddle Performance and Price segments Surf entry in popular segment with Surf Easywash. Withdrew after 2 yrs Gap changed Gap Warehouse to Old Navy Clothing due to perceived

brand erosion


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

Module 1 - Stage5

Exercise


Learnings

+ Cheaper than creating a new brand

- Difficult to stretch brands across Price and Performance

- Risk of eroding present position

- Lose opportunity of creating a new segment


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

Module 1 - Stage5

Exercise

Option : ‘Stand-alone’ New Brand

Levers enters popular segment successfully with Wheel as opposed to Surf Easywash

Levers use of brand-wise differentiation of brand values and attributes to target consumer segments- Surf / Rin / Wheel / OK detergents

Toyota launches Lexus to enter the Premium Auto segment credibly


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

Module 1 - Stage5

Exercise

Option : ‘Stand-alone’ New Brand

Learnings

+ Clear brand identity, values and assets

+ Create new opportunity of a range possibility in Popular segment

+ Leave present brand secure

- Expensive to build brand assets

- Difficult to build trial as a stand-alone Brand


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

17

Module 1 - Stage5

Exercise

Option: Transfer of Brand Assets ‘x from y’

Titan (from Tata’s)• Worked well for Titan

Sonata (from Titan)• Eroding equity of Titan

Gain (from the makers of Ariel)• Apparently a ‘Transitional Strategy’


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

Module 1 - Stage5

Exercise

Option: Transfer of Brand Assets ‘x from y’

Learnings

+ Cheaper than developing a new brand

+ Can be used as a ‘Transitional Strategy’

- Still a risk of eroding present image

- Possible mix of values and assets


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

Module 1 - Stage5

Exercise

Branding Options: Conclusion

‘Single Brand family possible if:

Different products / similar values

Differentiate on end use

‘Stand-alone ‘New Brand’ best option to straddle values - however it is expensive to create a new Brand

‘Transfer of Brand assets ‘x from y’’ possible, especially as a transitional strategy - still a risk of eroding present values and mixing values and assets


Stand Alone Brand



Brand Building

Exercise

Architecture


Products to brands

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Documents

Contents Presentation Objective Presentation Objective ... Clinic Plus, Ayush, Sunsilk ... The Volkswagen bus ad, talked only about ‘plenty of room