Brand Concepts & StrategyIGTC 2003
Structure
• What is a Brand?…. Product vs Brand• Brand Identity … Developing a Brand Framework• Brand Strategies … Extension & Revitalization
What is a Brand?
Essence of a Brand : Aaker
• “A company’s brand is the primary source of its competitive advantage and a valuable strategic asset.”
• “The challenge for all brands is that they have distinct clear image that matters to customers and truly differentiates from the rest.”
• The key step is to create a broad band vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed.
Product vs Brand
• A product is made in a factory… A Brand is bought by the customer.
• A Product can be copied… A brand is unique
• A Product is quickly outdated…A Brand is Timeless
Product vs BrandBrands differentiate Products• Fairness Creams: Fair & Lovely vs Ponds Dream
Fairness• Coconut Hair Oil: Parachute vs Dabur Vatika• Cola: Coca Cola vs Pepsi
Products largely undifferentiated: Product choice function of Convenience / Availability / Price.
• Petrol : BPCL vs IBP vs ….• ATM : HDFC vs HSBC vs ….• Mineral Water : Bisleri vs Bailey vs Kinley …
Product Levels : Kotler• Core Product: Core Benefit or service
• Tangible Product: Brand Name, Packaging, Features, Quality, Styling
• Augmented Product: After sale service, Installation, Delivery & credit, Warranty
Eg: Consumer Goods … Products extending Services … Asian Paints: Painting Homes; Surf: Laundry
Brand Image vs Brand Associations vs Brand Personality
Brand Association
Personality Based on:• Expression of self or User Imagery
Eg: Nike – Achivement Performance• User/Customer – Brand Relationship Eg: McDonalds- Fun Family• Functional Benefit – Association Based Eg: Gujarat Ambuja- Strong
Man
Identity vs Image
Brand Image
Consumer
Market, Competition, Media
Brand IdentityNoise
Strategic Vision, Business Needs
Corporate
What is Brand Identity?
• Simply put: What does a Brand stand for?• Heart and Soul of the Brand: Brand Constitution, Brand
Framework• Provides Strategic Vision – Direction, meaning, purpose to the
brand• Combination of Brand Vision, Purpose, Values & Associations• “… is a set of brand associations that the brand strategist
aspires to create or maintain. These associations represent what the Brand stands for and imply a promise to customers from the organization members” - Aaker
What is not Brand Identity : Traps• Brand Image Trap: Eg: Denim: Macho
– Based on consumer perception. Tactical, Reactive– Lacks Strategic Future Perspective
• Brand Position Trap: Eg: Elle 18 : Teenagers– Based on Competitive Advantage. Relates to current market
scenario, consumer needs. Communication captures only a particular aspect of the Brand
– Limited Scope. May not be applicable in the Future• External Perspective Trap: Eg: Tata: Trusted Quality
– Customer centric, lacks employee buy-in • Product –Attribute Fixation Trap: Eg: Britannia Biscuits
– Based on Product Attributes, Product Benefits– Limits the expansion of the Brand... Open to threat as it equates
the Product to the Brand
Brand ConceptsBrand Image , Personalities, Associations
BRANDBrand Framework
Product Framework
PRODUCT/S
What it does?
RECEIVER
SENDER
How it does?
How? – Strategic Brand Analysis
Processes: Semiotics- Image Study: Factor Analysis- Attribute Rating, Perceptual Map, Cluster Analysis- Profiling
Consumer
Company Competitor
Image Needs Trends
Performance
Image Heritage
SWOTRelationships
Image Positioning
CommunicationSWOT
Brand Identity Systems: AakerBrand as an ORGANISATION
Extended IdentityBrand as
Brand asPRODUCT
PERSON (Peripheral Support Values)
Brand as Symbol
SUPPPORT
VALUE PROPOSITIONFunctional + Emotional + Self Expressive Benefits
Core Identity
Efficient Service, Hygienic, Clean , Smart
Service
American Ronald
Fun
Ronald, Happy Meals, Parties
Tasty, VFM Burgers, Fries & DrinksCreate environment to provide fun &
entertainment For family and kids
VFM, Hygiene, Happy Family
McDonald’s Brand Identity System
VFM, Tasty, Quality, Burgers & Fries,
Happy Meal Promos
Fun, Happy, Friendly, Family, Warm, Outgoing
Ronald, Happy Meals.Clean Environment, Efficient Srvice
• Guides Brand Strategy• Strengthens Brand Memorability, Communication,
Associations• Provides Brand Extension possibilities• Assists Portfolio Reorganization• Improves Competitive Advantage• Adds Value to organization – Market Value• Gives a sense of direction to employee
Why ? – Leveraging Brand Identity
When? – Change vs Consistency
• Need to change Identity Position Communication:– Poorly Conceived Mismatch: Digen Verma– Obsolete: Philips… Innovation– Shrinking Audience: Ponds … Oil Control– Not Contemporary: Lakme…Fashion– Fatigue: Britannia… Health & Nutrition… Intelligence
Need For Consistency
• Brand Building takes time:– Amul girl & Utterly Butterly Delicious Amul– Marlbro Rough Cowboy
• Results in Cost EfficienciesOrganizational Pressures to change:– “Change” a solution to all problems– “Facelift” to fight Boredom– “Self-Promotion”
BRAND-WAGON
BRAND ENGINE
BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEGY
Business Potential
Brand Value
SegmentationTarget
Positioning
Marketing MixProduct/Pkg
PricePlace
Promotion
Mktg Plan
Sales Plan
Brand Strategies To Fuel the Brand Engine
• Strategy 1:- Extension- Giving birth to new product brands
• Strategy 2 :- Revitalization- Injecting life to the existing brandRevitalization:- Injecting life to same brand, energizing a mature brand
Need to inject life into the Mature Brand“Facelift” … Recharging the Brand Batteries
Brand Decisions: Leveraging Brand Identity
• Brand Extension Strategy• Brand Revitalization / “Restage”
Simply Put…
• Brand Identity: What does a Brand mean / stand for
• Brand Extension: What would you like (enjoy, love, admire) the brand to do for you.
• Brand Revitalization: How would you like to see the Brand tomorrow (Future Expectations).
• Brand System / Architecture: What are the important Relations that the Brand has
• Brand Limitations: What would you dislike (hate, anger, shame) the Brand to do.
Brand Extension Strategy
Need for Brand Extension
• Brand Growth– Mature brand : provide fillip to stagnating sales– Threat of new entrants: Protect Market Share– Strengthen franchise
• Enhance Brand Image– Strengthen Brand Identity– Revive core values– Reposition core values
Ways in which a Brand can be Extended
1. Line Extension2. Brand Extension3. Multiple Brands4. New Brands
Line Extension Strategy
• Extend existing brand name to existing product category: Identify & occupy different segments of the market – “market fragmentation”
– Pack variants: shampoos: sachets to economy packs… tubes to jars, bottles to cans : differentiate uses
– Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive: differentiate user groups… Parachute Uttam (differentiate markets)
Line Extension Strategy
• Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin type, user groups: Differentiate user needs… Colgate Gel, Maggi Chinese Noodles
• Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs… Head & Shoulders… ZPTO, Menthol
Brand Extension Strategy
• Extend the brand name to a new Product Category: Brand fit in a new business area– Supplementary Categories: BPL TV to Washing
machines, Maggi soups & sauces, Lakme lipsticks to perfumes
– Complementary Categories: Colgate toothbrush & toothpaste
– Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-shirts
– Diverse Categories: Similar core values: Britannia biscuits to dairy products. Dabur Chavanprash to Vatika
Multiple Extension Strategy
• New Brand names in the same product category “market saturation”
• Expensive strategy: Leading corporates… often through acquisitions… economies of scale– HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy, Dove,
Pears– P&G Detergents: Ariel, Tide– Coca Cola: Coca Cola, Thums Up…– Lakme: Elle 18, Orchids– Nescafe, Sunrise
New Brand Strategy
• New Brand Name for a product category: poor brand fit but business potential– Kotex to Kleenex– Huggies to Depend– Thums Up to Gold Spot, Pepsi to Mirinda– Lakme to Elle 18
Stretching the Brand VerticallyUnderstanding the terms:
• Vertical stretch: Technically a Line extension since it is the introduction of Price Variants of an existing Brand in the existing Product Class
• Stretching Up: Extending the Brand to a Higher Priced SegmentEg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at
Rs 60
• Stretching Down: Extending the brand to a Lower Priced SegmentEg: From Ariel Washing Powder to Ariel Gain Washing Powder Note: Both products co-exist at 2 different Price Points under the
same brand
Brand Stretch & Market Segments
EXISTING BRAND
STRETCH DOWN
STRETCH UP
Market Potential
Bran
d Im
age
Brand Extension Horizons
Line Extension Horizon 1
Brand Extension Horizon 2
Brand Extension Horizon 1
Effect of Brand Extensions
• More Good: Extension enhances Brand name.• Good: Extension aids Brand Name• Bad: Extension fails to help Brand Name• Ugly: Extension Damages Brand Name• More Ugly: Brand Name is Forgone
Post Mortem
• Colgate Gel: More Good• Rexona Does: More Good• Close Up Whitening: Good or Bad ? (credibility?)• Amul Pizza : Good or Bad (price?)• Britannia Cheese, Ghee… More Good• Sunsilk Hairoil : Bad (Identity or product?)• Diet Coke: Bad… Good?? (Identity… Market evolution)• Frooti Apple Drink: Ugly (Identity?)
Note…
Good understanding of the Brand Identity… may or may not lead to the Success of the Brand
Extension.
But a poor understanding of Brand Identity will definitely lead to the failure of the Brand
Extension… & may also damage the existing Brand.
Brand Revitalization
• Inject life into a Mature Brand = Facelift• Enhance Brand equity: improved recognition,
enhanced perceived value, changed associations, an expanded consumer base & or increased loyalty
• Movement from milking Cash Cows to Brand Restage (External Stars), ina competitive context
• Recognition of the Power of Old Brands vs the Expense & Risk of Creating New Brands
Brand Revitalization/ Rejuvenation Efforts to extend the Brand Life Cycle
SALE
S
TIME
Prevent further Decline, retain sales growth
Today’s need:Continuous Process of Revitalization
Revitalization:Starts at an early stage before a brand shows a decline in SalesSa
les
Time
Ways to Revitalize
Increased Usage
New Markets
Extensions
Obsolescing Product
Augmenting Product
Repositioning
New Users
Increased Usage
• Increased Salience: Dettol• Increased Frequency/Regular Use: Shampoos :
Head & Shoulders, economy pack, travel pack• Incentives/Promotions: Filmfare, Frequent
Flier Programs
New Uses
• New Gifting Solutions: Tiffany’s & Cadbury’s• Festive Occasions: Asian Paints• Multiple Functional Uses: Milkmaid recipes• Behavioral shifts: Moov – Sprains to Back
Aches
New Markets
• Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults
• Growth in new segments: Personal Computers
Repositioning the Brand
• Image Upgrade: Philips “Lets make things Better”
• Revive Image: Lakme, Dettol• Change Association: Britannia from biscuits to
healthy food
Augmenting the Product
• Packaging Upgrade: Crocin, Shampoo, fliptops• Product Upgrade: New improved Lux• Increased Customer Involvement: Wills &
Cricket, Sunsilk & Parlours, Surf & Laundry Service
Obsolescing the Product
• Fashion Products: Colour cosmetic range, Revlon, Designer Watches- Titan
• Technology Products: Sony Music… mobiles… Windows
• Dying Categories: Pond’s vanishing cream – Oil Balanced Formula
Restage Vs Re-engineer
• Restage: Maintain the Star Status of a product through constant innovation & activity to CONTINUOUSLY enhance the brand equity salience over a period of time
• Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs risk…. multiple changes to be orchestrated in conjunction ….. Recognizing & Leveraging the core identity
Remember… If you don’t, someone else will
What Iodex did not do, Moov did.What HMT did not do, Titan did.
What Indian Airlines did not do, Jet Airways did.
Brand Exercise
• Develop a Benefit Ladder for the product Category based on Consumer needs / Motivation
• Create a perceptual map for the leading 3-4 brands in the Category
• Outline the Brand Image (from consumer research & Brand Values assuming the role of the Company)
• Give 3 possibilities of Brand extension, Line extension and Brand Revitalization
• Develop a brand Positioning Statement• Identify a consumer insight which you can use in your
communication
Motivation Perception ImageInsight…. Question Bank
1. How would you describe Hit as a person vs Raid vs Baygon?
2. Imagine 10 years from now, where would you see these people… (individually)
3. Can you describe their family members4. Which animal would you associate with the following
brands?5. Which Car would you associate with eash of the above
brands?6. Which celebrity / sport person would you associate with
each of the above brands?7. Which kind of person do you think will use the above
brands?
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