Brand Mgmt Final Ppt Amol

8/3/2019 Brand Mgmt Final Ppt Amol

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Brand Management

Marketing Management


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Contents

Presentation Objective

From Products to Brands

Brand Attributes

Brand Management

Brand Architecture

Brand positioning

Pricing strategy

Brand Equity

Line Extension


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What is Brand?

A name becomes a brand when consumers

associate it with a set of tangible and intangible

benefits that they obtain from the product orservice

It is the sellers promise to deliver the samebundle of benefits/services consistently to

buyers


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Brand Power

Customer will change brands for price reasons

Customer is satisfied. No reason to change

Customer is satisfied and would take pains to get thebrand

Customer values the brand and sees it as a friend

Customer is devoted to the brand


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Presentation Objective

To understand the aspects / issues involved in

branding

To develop a framework for building a brand


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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 Above all a brand is a promise

Brand v/s. Product


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A Brand is a Promise

A sellers promise to deliver consistently

a specific set of features, benefits and services to

buyers.


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Fevicol Case

YearAdspend 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 5.51

191.75 6

138 3.28

156.19 5

77.12 1.7

102.16 2.3

46.02 0.55

Sales Value

( Rs. Crores)

AdSpend

( Rs. Crores)


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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


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Fevicol's Growth Rate

vs. Category Growth Rate

10%8%

55%

16%

0%

10%

20%

30%

40%

50%

60%

1992-95 1995-99

Category Fevicol


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Attributes


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Brand Name

Short

Kodak, Fuji

CNN an AOL Time Warner Company

Distinctive

ToyotasLexusis distinctive. ToyotasLuxury

commonplace Orange was a striking name in a world of telecoms


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Brand Name

Avoid generic / line extended names

Xerox (Copier) is powerful. Xerox Computer is not


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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 aspecific font


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Brand Colours

Colours have meanings

Purple means royalty

Red is energetic

Blue is peaceful

Opposite colours can differentiate

Coke is red, Pepsi is blue

Kodakis yellow, Fuji is green


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Brand Colours

Colours can help you stand out

FedExs 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 inconsumers mind, its essence


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Brand Essence

A brand must leverage a compelling truth

Linux stands for freedom as opposed to Microsoftsmonopoly.

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


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The 6 Immutable laws of Branding


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1.The law of the Word

A brand should strive to own a word in the mind

of the consumerIf you want to build a brand, you must focus your

branding efforts on owning a word in the prospect's

mind. A word that nobody else owns.

Examples: Mercedes = prestige; Volvo = safety;

Kleenex = tissue; Xerox = copier; .


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Federal Express became successful by becoming the

first air cargo carrier to narrow its focus on overnight

delivery thereby owning the word overnight in

customers minds. FedEx has become synonymous

with overnight delivery.


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2. The law of Credentials

The crucial ingredient in the success of any brand

is its claim to authenticity. The best claim is beingthe leading product or service in your category,because consumers assume that if it is a leadingseller, it must be good

Never forget leadership. No matter how small the

market, don't get duped into simply selling thebenefits of the category

There are also the long-term benefits of leadership.Once you get on top, its hard to lose your spot.


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In 1942, Coca Cola launched an Ad Campaign The only things that tastes like Coca Cola is CocaCola Itself. Its the real thing. It has used the realthing slogan over the years to claim its authenticity.


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3. The law of Quality

Quality is important, but brands are not built byquality alone

In fact, most people have no idea as to the "realquality of a product or service.

Is a Rolex really better at keeping time than a

Timex? How do you know?


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Rolex has become the worlds best known andbest selling brand of luxury watches. Does quality

have anything to do with its success? Probably

not. Does Rolex make high quality watches?

Probably. Does it matter? Probably Not.


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4. The law of Consistency

A brand is not built overnight. Success ismeasured in decades, not years


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BMW has been ultimate driving machine for 25years. What's more remarkable is the fact that it

retained its strategy even while changing 3

advertising agencies. Change of agencies usually

signals end of abrands consistency.


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5. The law of Mortality

No brand will live forever. Euthanasia is often thebest solution.


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Film Photography is slowly being replaced by

digital photography. But Kodak refuses to face that

reality. Instead it is trying to save its brand by using

Kodak name on its Digital products.


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6. The law of Singularity

The most important aspect of a brand is its single-

mindedness


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Volvo has been selling safety for over 35 years.In the process it has become the largest sellingEuropean luxury car. In the past decade, it hassold 849,348 cars in the US, outselling BMWand Mercedes Benz.


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Management


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Management

Co-BrandStealth

Brand

Fighting

Brand

Multi

Brand


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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.


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Fighting Brand

Pricing led branding option. Works as a competitive response.

Smirnov (Heublein) Case

Smirnov attacked by Wschmidt @ $1 less

Heublein raised the price of Smirnov

Heublein introduced Reiska(fighting brand) at the same price point asWschmidt

Heublein added Popov lower than both

Built as new, independent brand

Prevents dilution of the leading brand

HLL introduced Wheel to fight Nirma


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Management

There is a time and place to launch a second brand

Immutable Law of Siblings


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Possibly even a third or a fourth brand..


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Architecture


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Architecture

House of

Brand

Endorsed

Brand

Sub Brand BrandedHouse


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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 brandand contract its scope.


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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


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Architecture

Immutable Law of Expansion

Brands power inversely proportional to scope.


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The Volkswagen bus ad, talked only about plenty of room


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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


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Architecture

Immutable Law of Company

Brands are brands, companies are companies.

There is a difference.


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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


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POSITIONING :

The Battle for Your

Mind


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A concept so simple,people have difficulty in understanding

how powerful it is!


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What is Positioning ?

Positioning is owning a piece of consumers mind

Positioning is not what you do to a product

Its what you do to the mind of the prospect

You position the product in the prospects mind

Its incorrect to call it Product Positioning Ries &

Trout


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Examples

Positioning

Colgate

Is

Protection

Gillette

Is

QualityLUX

IsGlamour

AXE

Is

Sexual

Attraction

Ponds DFT

Is

Confidence


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To position a product/service in the minds ofconsumers relative to competitors

Ries and Trout


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A reason to be

The brand has to be distinctive, relevant andappealing to its target audience


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Positioning

Positioning refers to how organizations want their

consumers to see their product

Positioning = Segmentation + Differentiation

Slotting your product in the consumers mind.

Who am I? Why buy me?

Positioning starts with the product.But Positioning is

not what you do to the product. Positioning is what you

do to the mind of the prospect - Ries and Trout


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Why is Positioning Required ?

The assault on our mind

The media explosion

The product explosion

The advertising explosion

So little message gets through that you ignore thesender and concentrate on the receiver

Consumers only accept what is consistent with prior

knowledge or experience Very difficult to change the perception once formed


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How it is done The easy way to get into a persons mind is to be first

Xerox, Kodak, Polaroid, Sun TV, The Hindu

If you didnt get into the mind of your prospect first, then youhave a positioning problem

Better to be first than be best

Even if you are not first, be the first to claim a unique positionin the mind of the consumer

Miller Litefirst litebeer and Becks Beer first beerpopular in Germany

In the positioning era, you must, however, be first to get intothe prospects mind


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How it is done

The basic approach is not to create something new ordifferent, but manipulate whats already in the mind

To find a unique position, you must ignore conventional

logic

Conventional logic says you find concept inside product

Not true; look inside prospects mind

You wont find an uncola idea inside 7-up; you find itinside cola drinkers head


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The 3Cs of Positioning

Be Crystal clear

Be Consumer-based Be relevant and credible to the consumer Write in consumer language and from consumers

view point

Be Competitive Be distinctive Focus on building brand elements into powerful

discriminator Be persuasive Be sustainable


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Focus of Positioning

Attributes and benefits of the product

Competition

Product user

Product use or application

Product class

Cultural symbols


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Positioning Strategies

Product Attribute or Benefit approach

Price-Quality approach

User approach

Product category approach

Competitor approach


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Product Attribute or Benefit

approach Volvo stands for safety

BMW for performance

Mercedes for luxury

Dermi Cool (prickly heat powder that cools)


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USER APPROACH PRICE QUALITY APROACH Loreal with Aishwarya Rai,

Revlon with Cindy Crawfordetc.

The Marlboro Man, Thums upis also trying to reinforce itsfor grown ups image byusing a macho celebrity

route (Akshay Kumar).

Baja Auto:Value-for-money, for years

Zenith Computers:MNC quality, Indian price


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PRODUCT CATEGORY APPROACH COMPETITOR APPROACH

Diet beers (from kingfisher)

and ice beers (from United

Breweries) as against the

regular beer.

Captain Cook (free flow vs.

Tata Salt)

Savlon (does not sting vs.Dettol)


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Pricing Decisions &

Strategies

M k i Mi 4 P


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Marketing Mix : 4 Ps

Product Price

Place

Promotion

Pricing is a very important strategic issue, as it isdirectly related to product positioning.

Pricing affects other marketing mix elements such as

product features, Channel decisions and promotion.

S P i P d


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Steps to Price a Product

(Not always same) Develop Marketing Strategy

Market Analysis, Segmentation, Targeting and Positioning

Marketing Mix Decision

Define the Product, Distribution and Promotional strategies

Manage Demand curveDemand Price relation


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CostAll fixed and variable cost is calculated

Environmental FactorsPEST

Set Pricing ObjectiveProfit maximization, Revenue maximization, Pricestabilization

Determination of PriceUse one or combination of the above factors and make apricing structure, give discounts etc.


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Pricing Objectives

Current Profit Maximization

This stresses on Current profits, taking into account revenue

and costs

Current Revenue Maximization

Stresses on increasing the Current revenue, and not profits.

The motive is to maximize market share and gain profits in

long term.


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Maximize Quantity

This stresses to maximize the number units sold to decreaselong-term costs as the experience curve predicts

Maximize Profit Margin

Stresses to increase the profit margin per unit, as, number of

unit being sold may be low.

Quality Leadership

Use price to signal high quality, to position the product as

quality leaders.


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Partial Cost Recovery

Organization which has other revenue sources may seekpartial cost recovery.

Survival

Incase of market decline or overcapacity, the emphasis may

be on to the survival in the market only and to cover thecosts.

Status Quo

Price Stabilization to avoid price wars and maintain stablelevel of profits

Ski P i i


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Skim Pricing

Skimming is the strategy used to pursue the objective ofProfit Margin Maximization.


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Skimming is most Appropriate ..

Demand is expected to be relatively inelastic, ie. The

customers targeted are not highly price sensitive.

Large cost savings are not expected at high volumes orit is difficult to predict the cost savings that can be

achieved at high volumes.

The company does not have the resources to finance thelast capital expenditure for high volume production

with initial low profit margins.

P t ti P i i t


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Penetration Pricing, most

appropriate Objective is to maximize the quantity by lowering theprices.

Demand highly elastic, ie. Customers are price

sensitive, the demand increases as the price decreases.

Economies of scale

The product should be of mass appeal.

Major threat by competition.

Pricing Methods


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Pricing Methods Cost Plus Pricing

Set the price at the production cost adding a certain profit margin.

Target Return Pricing

Set the price to achieve a target return on investment.

Value Based Pricing

Base the price on the effective value to the customers which isrelative to the alternative product.

Psychological Pricing

Base the price on psychological factors of the consumer.

Price Discounts


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Price Discounts

Quantity Discounts

Offer to customers who purchase is large quantities.

Cumulative Quantity Discount

A discount that increase as the cumulative quantityincreases.

Seasonal Discount

Based on the time when the purchase is made.


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Cash Discount

Extended to customer who pay there bill before aspecified date.

Trade Discount

A functional discount offered to channel members forperforming there roles.

Promotional DiscountA short term discounted price, offered to stimulatesales.

Brand Extensions


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Brand Extensions

Using an existing brand name to promote a product in a

different category, is Brand Extension

The key difference between line and brand extension is

the product category.

In line extension the product Category remains constantwhereas in brand extensions product category is a

variable.

Example


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Example

Ponds - Cold cream, Toilet soap Shampoo, Tooth paste,

Moisturizing lotion, Talc & Face wash.

LGTelevision, Refrigerators, Computer monitors,

Microwaves, Air Conditioners, Washing Machines &

Mobile phones.

Park AvenueShirts, Shaving cream, Jeans, Belts,

Perfumes, Soap & Razor.

S b B di S


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Sub-Branding Strategy

Using a new brand name in conjunction with a family

brand name to introduce new products.

Examples: Panasonic Viera , Samsung LED TV


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Why Brand Extension?


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Why Brand Extension?

Cost of New launches

Promotional Efficiency

Consumer Benefits

Feedback effects

Returns

Types of Extensions


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Types of Extensions Product form extensionA product launched in a

different form usually means line extension, but if a

different product form constitutes an entirely different

product category.

Example:

Amul MilkAmul

CondensedMilk

Real Juices Real JuiceConcentrate

Types of Extensions


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Types of Extensions

Companion ProductThe idea here is to capitalizeon product complementarily. The consumer may

view both the products jointly.

Example :

Colgate DentalCream

ColgateTooth Brush

GilletteRazors GilletteShave forms GilletteAfter Shave

Brand Image or Prestige


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Brand Image or Prestige

A brand extension may involve a foray into unrelated productcategories based on a brands exclusive image or prestige value.

Example

Tata steel , Watches, Software development(TCS), Tata power

B d E i i k


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Brand Extensions is not an easy task

Extensions are not simple as they appear to a layman.

Consumers reject extensions when they do not make

sense.

Therefore, it must begin with exploring the brand in a

prospects mind.

Brand extension is not a physical act of merging two

products.

Brand Mgmt Final Ppt Amol

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