What are brands good for? -MIT Sloan Management Review

What is a brand?

• A brand is a name, term, design, or other feature that distinguishes one seller's product from those of others.

Why are brands important?

• Brands help in ‘aggregating’ consumers. They reach large people with a promise to deliver clearly stated benefit.

Promises that attract the customer, reduce the perceived risks..

Tide washes Whiter Volvo is Safety

• Brands are prime platform for building relationship with consumers, reduce the risk of new product launch and gives power in dealing with distributors.

Why Disaggregation?

• In Information rich environment, consumer disaggregation is vastly more efficient and profitable then aggregation.

DisaggregationSharpening the role of brand

Opportunities

Organize the marketing in a way that challenges centrality of brands

Threats

Facts on Disaggregation

1) Consumer relationship is to shift from product brand towards trusted and credible brand.

2) Tactical activities such as competitive reactions, product trial coupons and selective promotions are implemented.

• Advertising and promotions drive sales and traffic volume. 

• Focal point of company’s marketing effort and source of market power

• Information Revolution helps task to be   performed better, less    expensively and more    profitable.

•So what are brands good for in an era of disaggregation?

Consumer Relationships

Companies that employ disaggregate marketing are simply quicker to respond to consumer needs.

Food & Family

• Kraft foods introduced a quarterly magazine called Food & Family.

• Centerpiece to build consumer relations.

                                                         

Consumer Relationship

• Individual product brands focus on communicating and delivering their specific benefits and value proposition.

Channel Relationship

• In recent times, most dramatic change is the rise of retailers. 

•Companies have started implementing, relationship based approach to marketing

Channel Relationship

•Disaggregation provides manufactures with a new medium to influence consumer decision that is independent of retailers.

Channel Relationship

• Brands cannot afford to be delisted from any of the major retailers that now control the access of the consumers.

Channel Relationship

• Loyalty card. It’s retailers who delivers the solution, not the branded goods manufactures.

Brand Management Organization

• In 1931, P&G pioneered an organizational innovation, brand manager, as a means of focusing the firm’s resources on key market opportunities.

Brand Management Organization

Brand Management Organization

Disclaimer:

Prepared by: Sitanshu Gandhi, SIT Pune.

During an Internship by Prof. Mathur, IIMLucknow.www.IIMInternship.com