9512060 brand-management-part-1-understanding-branding

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

Six inches wide

Grey and wet

Mysterious

ContentsContents Presentation ObjectivePresentation Objective Understanding BrandingUnderstanding Branding

From Products to BrandsFrom Products to Brands Brand AttributesBrand Attributes Brand ManagementBrand Management Brand ArchitectureBrand Architecture ExerciseExercise

Brand Building Brand Building Brand AuditBrand Audit Connection TriangleConnection Triangle Big IdeaBig Idea Evaluating AdvertisingEvaluating Advertising

Presentation ObjectivePresentation Objective

• To understand the facets / issues involved in To understand the facets / issues involved in brandingbranding

• To develop a framework for building a brandTo develop a framework for building a brand

Presentation incorporates Presentation incorporates learnings fromlearnings from

India’s Branding School, founded by India’s Branding School, founded by Reliance: MICAReliance: MICAPersonal Work ExperiencePersonal Work ExperienceAl Ries & Laura Ries: The 22 Immutable Al Ries & Laura Ries: The 22 Immutable

Laws of Branding Laws of Branding

Al Ries, David Ogilvy & Ambani

ContentsContents

Brand Building Understanding Branding

Module 1Module 1

Understanding Branding Understanding Branding

Understanding Branding

Brand Building

Module 1Module 1


ExerciseArchitectureManagementAttributesProducts to brands


Brand Building

Module 1 - Stage 1 Module 1 - Stage 1

From Products to BrandsFrom Products to BrandsUnderstanding Branding

Brand Building




Brand Building


Brand v/s. Product

A brand is more distinctive than a productA brand is more distinctive than a product It is first of all a name, a means of identificationIt is first of all a name, a means of identification Secondly it s a set of added values offering both functional Secondly it s a set of added values offering both functional

and psychological benefits and psychological benefits

Above all ‘a brand is a promise’



Brand Building


A Brand is a Promise

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


From Products to BrandsFrom Products to Brands

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

Fevicol CaseFevicol 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 CaseFevicol CaseFevicol'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 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 AssetBrand as an Asset ““If Coca Cola lost everything except for ‘the formula’ and its If Coca Cola lost everything except for ‘the formula’ and its

brand name , it could walk into any bank in the world and brand name , it could walk into any bank in the world and get $100 billion loan to start from the scratch”get $100 billion loan to start from the scratch”Fortune MagazineFortune Magazine

Attributes

Module 1Module 1



Brand Building


Module 1Module 1



Brand Building


Name Logo

Colours Essence


AttributesAttributes

Immutable Law of Name

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


AttributesAttributesUnderstanding Branding

Brand Building


Name Logo

Colours Essence

Brand NameBrand Name Short Short

Kodak, FujiKodak, Fuji CNN an AOL Time Warner CompanyCNN an AOL Time Warner Company

DistinctiveDistinctive• Toyota’s Toyota’s LexusLexus is distinctive.Toyota’s is distinctive.Toyota’s Luxury Luxury commonplacecommonplace• Orange was a striking name in a world of tel and comsOrange was a striking name in a world of tel and coms

Not mean anything rude or silly in another languageNot mean anything rude or silly in another language Big Macs( McDonald’s) is a slang for big breasts in CanadaBig Macs( McDonald’s) is a slang for big breasts in Canada



Brand Building


Name Logo

Colours Essence

Brand NameBrand Name Avoid generic / line extended namesAvoid generic / line extended names

• Xerox as opposed to Haloids Paper MasterXerox as opposed to Haloids Paper Master

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

Changing your name will not overcome a bad strategyChanging your name will not overcome a bad strategy• “ “Monday” (Price Waterhouse Coopers )Monday” (Price Waterhouse Coopers )



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

Both eyes

Immutable Law of Shape



Brand Building


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



A brand should use a colour opposite of its rival

Immutable Law of Colour



The Cola Wars: Energy Vs. Peace



Brand Building


Name Logo

Colours Essence

Brand ColoursBrand Colours Colours have meaningsColours have meanings

• Purple means royaltyPurple means royalty• Red is energeticRed is energetic• Blue is peacefulBlue is peaceful

Opposite colours can differentiateOpposite colours can differentiate• CokeCoke is red, is red, Pepsi Pepsi is blue is blue• KodakKodak is yellow, is yellow, Fuj Fuji is greeni is green



Brand Building


Name Logo

Colours Essence

Brand Colours..Brand Colours.. Colours can help you stand outColours can help you stand out

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

Logo and colours help, but the power of the brandLogo and colours help, but the power of the brand Essentially in the meaning of the brand name in consumer’s mind, its Essentially in the meaning of the brand name in consumer’s mind, its

essenceessence



Most important thing for a brand is its single mindedness.

Immutable Law of Singularity



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



Brand Building


Name Logo

Colours Essence

Brand Essence Brand Essence A brand must “leverage a compelling truth”A brand must “leverage a compelling truth”

Linux stands for freedom as opposed to Microsoft’s monopolyLinux stands for freedom as opposed to Microsoft’s monopoly A brand should mean a single powerful thing: the essence A brand should mean a single powerful thing: the essence

Essence of Volvo is SafetyEssence of Volvo is Safety Essence of Tata is trustEssence of Tata is trust Essence of Fevicol is bondingEssence of Fevicol is bonding



Brand Building


Name Logo

Colours Essence

Brand Essence Brand Essence A brand should also be clear of what is not its essenceA brand should also be clear of what is not its essence

In India, STAR NEWS is not a channel of the masses unlike STAR PLUSIn India, STAR NEWS is not a channel of the masses unlike STAR PLUS A brand should drive single mindedly its essenceA brand should drive single mindedly its essence

Volvo has been selling safety for 35 yearsVolvo has been selling safety for 35 years Raymond has been selling the complete man for over 2 decadesRaymond has been selling the complete man for over 2 decades Essence of Dettol is protection against germsEssence of Dettol is protection against germs

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



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

Immutable Law of Word

Attributes

Module 1Module 1



Brand Building

ExerciseArchitectureManagementProducts to brands Management

Attributes

Module 1Module 1



Brand Building

ExerciseArchitectureProducts to brands ManagementManagement

Co-Brand Stealth Brand

Fighting Brand Multi-Brand


ManagementManagementUnderstanding Branding

Brand Building




Co-Brand Co-Brand Brands need to address a similar need segmentBrands need to address a similar need segment

– Kellogg's Pop-tarts with Smuckers JamKellogg's Pop-tarts with Smuckers Jam Brands with complementary strengths: Seen often on the NetBrands with complementary strengths: Seen often on the Net

– NY Times gives Amazon credibilityNY Times gives Amazon credibility– Amazon makes NY Times look modern.Amazon makes NY Times look modern.



Brand Building




Stealth Brand Stealth Brand Brand building that attracts customer attention but not of Brand building that attracts customer attention but not of

rivalsrivals• Home-to-home, word of mouth / PR, internet community building Home-to-home, word of mouth / PR, internet community building • Krispy Kreme relies only on PRKrispy Kreme relies only on PR

Good option when unsure of a new medium/marketGood option when unsure of a new medium/market Little promotion for Maytag website as opposed to a buy.com. Maytag Little promotion for Maytag website as opposed to a buy.com. Maytag

sold 1000s of Neptune washers on websold 1000s of Neptune washers on web



Brand Building




Fighting Brand Fighting Brand Pricing led branding option. Works as a competitive response.Pricing led branding option. Works as a competitive response.

• Smirnov (Heublein) CaseSmirnov (Heublein) Case Smirnov attacked by W’schmidt @ $1 lessSmirnov attacked by W’schmidt @ $1 less Heublein raised the price of SmirnovHeublein raised the price of Smirnov Heublein introduced Reiska(fighting brand) at the same Heublein introduced Reiska(fighting brand) at the same

price point as W’schmidtprice point as W’schmidt Heublein added Popov lower than bothHeublein added Popov lower than both



Brand Building




Fighting Brand Fighting Brand Built as new, independent brandBuilt as new, independent brand

• Prevents dilution of the leading brandPrevents dilution of the leading brand HLL introduced Wheel to fight NirmaHLL introduced Wheel to fight Nirma


ManagementManagement

There is a time and place to launch a second brand

Immutable Law of Siblings

Possibly even a third or a fourth brand..



Brand Building




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

identityidentity Time, Fortune,Life, Money, PeopleTime, Fortune,Life, Money, People

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

Second brand risks diluting equitySecond brand risks diluting equity Is Kingfisher Mild drinker more likely to be from Kingfisher or Is Kingfisher Mild drinker more likely to be from Kingfisher or

from Fosters?from Fosters?



Brand Building




Multi Brand.. Multi Brand.. Common product area focusCommon product area focus

Shampoos: Clinic Plus, Ayush, SunsilkShampoos: Clinic Plus, Ayush, Sunsilk Single attribute segmentationSingle attribute segmentation

Price:Maruti 800, Zen, EsteemPrice:Maruti 800, Zen, Esteem Sibling creates a new category Sibling creates a new category

Herbal Anti-Dandruff category by AyushHerbal Anti-Dandruff category by Ayush

Attributes

Module 1Module 1



Brand Building

ExerciseArchitectureManagementProducts to brands Architecture

Attributes

Module 1Module 1



Brand Building

ExerciseManagementProducts to brands ArchitectureArchitecture

House of Brands

Endorsed Brand

Sub Brand Branded House


ArchitectureArchitecture

Immutable Law of Contraction

A brand becomes stronger when you narrow its focus



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


ArchitectureArchitectureUnderstanding Branding

Brand Building


House of Brands

Endorsed Brand


House of Brands House of Brands Often dictated by corporate strategy. Core competence of the Often dictated by corporate strategy. Core competence of the

firm is marketing / branding firm is marketing / branding • P&G is the prime example. Its “big” with the channelP&G is the prime example. Its “big” with the channel

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

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



Brand Building


House of Brands

Endorsed Brand


Endorsed Brand Endorsed Brand Endorsement used as a device to transfer brand assets from Endorsement used as a device to transfer brand assets from

one brand(corporate) to anotherone brand(corporate) to another Titan from TATA, transferring trustTitan from TATA, transferring trust

Danger of diluting the equity of endorsing brandDanger of diluting the equity of endorsing brand Best as a transitional strategyBest as a transitional strategy

Gain, from makers of ArielGain, from makers of Ariel

Module 1 - Stage 4Module 1 - Stage 4


Immutable Law of Expansion

Brand’s power inversely proportional to scope.



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



Brand Building


House of Brands

Endorsed Brand


Sub Brand Sub Brand Inside out branding.Company pushes core brand in different Inside out branding.Company pushes core brand in different

directionsdirections Sub-branding can destroy what branding buildsSub-branding can destroy what branding builds

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

Module 1 - Stage 4Module 1 - Stage 4


Immutable Law of Company

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



Brand Building


House of Brands

Endorsed Brand


Branded houseBranded house Consumers buy brands, not companiesConsumers buy brands, not companies Danger of branded house, being many things to one group of peopleDanger of branded house, being many things to one group of people

• Virgin? Does “Virgin trains” work?Virgin? Does “Virgin trains” work? May motivate trade, so might be useful for PR purposes with May motivate trade, so might be useful for PR purposes with

trade/other stakeholderstrade/other stakeholders• P& G wayP& G way

Attributes

Module 1Module 1



Brand Building

ExerciseArchitectureManagementProducts to brands Exercise

Module 1Module 1


Two brand positioning within the same brand family?How do we reconcile the two positions?Two brand positioning within the same brand family?How do we reconcile the two positions? The options available to usThe options available to us

1.1. Single brandSingle brand

2.2. Stand Alone New BrandStand Alone New Brand

3.3. Transfer of Brand Assets from an existing brandTransfer of Brand Assets from an existing brand

What are the pros and cons of each option ?What are the pros and cons of each option ?

Exercise

Attributes

Module 1Module 1



Brand Building

ArchitectureManagementProducts to brands ExerciseExercise

Options Single Brand Family

Stand Alone Brand

Transfer of Brand Assets

Module 1 - Stage5 Module 1 - Stage5

ExerciseExerciseUnderstanding Branding

Brand Building


Options Single Brand Family

Stand Alone Brand


Single Brand FamilySingle Brand Family

‘‘Stand-alone’ New Brand Stand-alone’ New Brand

Transfer of Brand Assets ‘x from y’Transfer of Brand Assets ‘x from y’


ExerciseExerciseOptions Single Brand

Family

Stand Alone Brand


Option : Single Brand familyOption : Single Brand family Constant values / different productsConstant values / different products

• Dettol antiseptic / soap / hand washDettol antiseptic / soap / hand wash• Crest toothpaste / Mouth wash (But not chewing gum)Crest toothpaste / Mouth wash (But not chewing gum)

Differentiate on product usageDifferentiate on product usage• IBM Value Point - Entry level purchaseIBM Value Point - Entry level purchase• Gillette Good News Line - DisposablesGillette Good News Line - Disposables


Brand Building




Family

Stand Alone Brand


Option : Single Brand familyOption : Single Brand family Use as umbrella brandingUse as umbrella branding

TATATATA TrustTrust SONYSONY Electronic technologyElectronic technology

But Taj from TATA for Performance segmentsBut Taj from TATA for Performance segments Difficult for a single brand to straddle Performance and Price Difficult for a single brand to straddle Performance and Price

segmentssegments Surf entry in popular segment with Surf Easywash. Withdrew after 2 yrsSurf entry in popular segment with Surf Easywash. Withdrew after 2 yrs Gap changed Gap Warehouse to Old Navy Clothing due to perceived Gap changed Gap Warehouse to Old Navy Clothing due to perceived

brand erosionbrand erosion


Brand Building




Family

Stand Alone Brand


Option : Single Brand familyOption : Single Brand family LearningsLearnings

++ Cheaper than creating a new brandCheaper than creating a new brand- - Difficult to stretch brands across Price and PerformanceDifficult to stretch brands across Price and Performance- - Risk of eroding present positionRisk of eroding present position- - Lose opportunity of creating a new segmentLose opportunity of creating a new segment


Brand Building




Family

Stand Alone Brand


Option : ‘Stand-alone’ New Brand Option : ‘Stand-alone’ New Brand

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

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

Toyota launches Lexus to enter the Premium Auto segment crediblyToyota launches Lexus to enter the Premium Auto segment credibly


Brand Building




Family

Stand Alone Brand


Option : ‘Stand-alone’ New Brand Option : ‘Stand-alone’ New Brand LearningsLearnings++ Clear brand identity, values and assetsClear brand identity, values and assets+ + Create new opportunity of a range possibility in Popular segmentCreate new opportunity of a range possibility in Popular segment+ + Leave present brand secureLeave present brand secure- - Expensive to build brand assetsExpensive to build brand assets- - Difficult to build trial as a stand-alone BrandDifficult to build trial as a stand-alone Brand


Brand Building




Family

Stand Alone Brand


Option: Transfer of Brand Assets ‘x from y’ Option: Transfer of Brand Assets ‘x from y’ Titan (from Tata’s)Titan (from Tata’s)

• Worked well for Titan Worked well for Titan Sonata (from Titan)Sonata (from Titan)

• Eroding equity of TitanEroding equity of Titan Gain (from the makers of Ariel)Gain (from the makers of Ariel)

• Apparently a ‘Transitional Strategy’Apparently a ‘Transitional Strategy’


Brand Building




Family

Stand Alone Brand


Option: Transfer of Brand Assets ‘x from y’ Option: Transfer of Brand Assets ‘x from y’ LearningsLearnings++ Cheaper than developing a new brandCheaper than developing a new brand+ + Can be used as a ‘Transitional Strategy’Can be used as a ‘Transitional Strategy’-- Still a risk of eroding present imageStill a risk of eroding present image-- Possible mix of values and assetsPossible mix of values and assets


Brand Building




Family

Stand Alone Brand


Branding Options: ConclusionBranding Options: Conclusion ‘‘Single Brand family possible if:Single Brand family possible if:

Different products / similar valuesDifferent products / similar values Differentiate on end useDifferentiate on end use

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

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


Brand Building


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9512060 brand-management-part-1-understanding-branding

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