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Brand Kya Hota Hai?
You & Me
Anything that has a NAME, SIGN, SYMBOL
which has a set of associations related to it
Origin: Brandr
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Brand ki zaroorat kya thi?
One Consumer
One Need
MANY PRODUCTS
Kiss ko choose karun -- Confusion!
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Ek Friday. Doh Filmein!
Comedy vs. Comedy
Two Star vs. Two Star
Govinda vs. Tushar Kapoor
Which one will you go for?
Brand Govinda: Comedy Associations
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Brand has
Name, Symbol or Logo
Brand Purpose: Positioning
Values & Personality: Image
Bundle of Benefits: Promise
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Consumer: Value Maximiser
Brand: Biggest Value Driver!
Cap Rs. 50/-
Cricket Team Cap Rs. 500/-
Team Cap used by Tendulkar Rs. 5000/-
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Brand Value
MEANS OF IDENTIFICATION
PROMISE
RISK REDUCTION
IMAGE DRIVER
CONVENIENCE
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Kya brand ho sakta hai?
Gaadi
Doodh
Atta
Namak
Kya nahin brand ho sakta hai?
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Brands kya reality mein
better hote hain?
Is Mercedes the best car?
Is IIM Ahmedabad the best b-school?
Maybe, maybe not!
Perception!
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Sounds easy!
One NIKE. 1000 FAILED NIKE!
Biggest challenge for a Marketer
3C Challenge
Cash
Consistency
Clutter
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Brand Equity
Concept & Its Importance
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The Challenge
More Products
More Competitors
More Media Same Consumers
Same Needs
GROWTH MANTRA?
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Mantra #2
Brand Building
Distinctive
Sustainable
Long-Term
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What is Brand Equity?
BE is a set of brand assets / liabilities
linked to a brand, its name or symbol
that add to or subtract from the value
provided by a product or service to a
customer
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Components of Brand Equity
Awareness: Name & Symbols
Perceived Quality
Brand Associations
Brand Loyalty
Other Proprietary Brand Assets
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Awareness: Name & Symbols
Recognised vs. Unknown Brand
Familiarity drives perception Familiar = Reliable + Good Quality
Unknown only a push option
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Brand Associations
People, situations, moods, needs that
consumers relate a brand to/with
Helps the brand occupy a distinctmindspace
Drives purchase
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Brand Loyalty
Cost of acquiring new customers is 10
times the cost of retaining old ones!
Products are non-living but brands arent Customers associate themselves with
brands (preservance/enhancement)
Difficult to break-away to competition
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Other Proprietary Assets
Trademarks
Patents
Channel Relationships
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CBBE
Consumer Based Brand Equity
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Case for Building a Brand
Improved Product Perceptions
Greater Loyalty
Insulation from Competition Higher Margins
Inelasticity to Price
Cooperation from Channel
Effective Marketing Communication
Leverage through Extensions
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Million Dollar Questions
What makes a strong brand?
How to build one?
Th 4 F d t l
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The 4 FundamentalQuestions
Who are you? (Brand Awareness)
What do you do? (Brand Knowledge)
What do I think about you? (Brand Attitude)
What about you and me? (Brand Relationship)
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Brand Awareness
Recognition & Recall
Depth: How easily do they recall?
TOM: McDonalds
Breadth: In what all situations do they recall? Usage Occasions: Tropicana
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Brand Knowledge Performance: Attributes & Benefits
Ingredients: KFC
Consistency: McDonalds
Durability: Tata
Serviceability: Maruti Service Efficiency: Dominos
Style & Design: Swatch
Imagery User Profile: Harley
Usage Situation: I-Pill Personality: Tata
Values & Beliefs: Johnie Walker
Should be strong, favourable & unique
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Brand Attitude
Brand Feelings Warmth: Archies
Fun: Disney
Excitement: MTV Security: SBI
Social Approval: Mercedes
Self-Respect: RbK
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Brand Relationship
Association with the Brand
Behavioral Loyalty: Fair & Lovely
Attitudinal Attachment: Budweiser
Sense of Community: Saab
Active Engagement: Enfield
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Term Project: Phase I
Understand the Current CBBE amongst theTarget Market
FGDs / DIs
Users / Lapsers
Define it as given in the subsequent slide
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CBBE for Amazon
Books, Music & VideosBRAND AWARENESS
Conv., Variety, Low Prices
For Every Internet UserBRAND KNOWLEDGE
Good Value / Credibility
Smart ShopperBRAND ATTITUDE
Loyalty, Community,Engagement
BRAND RELATION
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Defying Newton
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What is a declining brand?
A brand which has over a period of time been
losing both market share and mind share
amongst its target consumers
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Top 10 Reasons for
Declining of Brands
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Cause #1
Decline in quality
Cost-cutting (Maruti 800)
Increasing volumes (IIMs)
Relaxation in QC Measures (Caf Coffee Day) Perceptual Decline: Price, Channel, Sensorials,
Advertising, Packaging
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Cause #2
Resistance to Change
Product Oriented (Robin Blue)
Need Oriented (Nirma Detergent)
Consumer Oriented (Dabur Chavanprash) Why resistance?
Investment
Product Orientation
Tried & Tested
Complacency
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Cause #3
Single Product (Ambassador)
No portfolio
No extensions
Problem? Visibility
Stature
Decline in segment
Decline in product
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Cause #4
Excessive Pricing (Daewoo Cielo)
Premium pricing
High margins
Entry of Competition Feeling of being cheated
Private Labels
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Cause #6
Communication (Kelvinator)
Low levels of communication
Wrong message
Low impact Brand Ambassador
Production values
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Cause #7
Channel management (CrossWord)
Attitude of Sales Team
Margins
No push Emergence of alternate channel
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Cause #8
Ageing (HMT Watches)
Old age
No makeover (Product / Communication)
Perceived as Not for me
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Cause #9
Lack of differentiation (Acer Computers)
Cluttered market
No USP
No competitive advantage Me Too Branding
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Cause #10
Tough Consumer
Less emotional
Lowering levels of loyalty
Flirtatious attitude More knowledge driven
Connected via media
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Revitalising the Brand
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Why revitalise?
Brand still has high awareness
Brand still has some values with consumer
Product still selling
Cost of building a new brand is far higher
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Ways to Revitalise
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#1: Increase Usage
Getting existing customers to use more of
your product Frequency of Use (Shampoo)
Reminder Communication Positioning for frequent use
Make the use easier
Provide incentives
Reduce undesirable consequences of frequent use Use at different occasions
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#1: Increase Usage
Getting existing customers to use more of your
product Quantity of Consumption (Chips)
Incentives on high use Creating larger servings
Removing undesirable consequences of high consumption
Positive associations
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#2: Finding New Uses
Finding a new functional use for the brand Omni Cargo
How to find new uses?
Observe usage of current customers Sponsor new use contests
Use of competitions product
When to adopt a new use?
Potential market Feasibility & Cost
Competitive reaction / takeover of the use
i k
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#3: Entering New Markets
Move into a new market area having growth
potential
New Segment (Pepsi A.M. / Bacardi Breezer)
New Geography (Honda City / Gits)
4 R i i i h B d
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#4: Repositioning the Brand
Existing positioning not relevant
Lacking appeal amongst TG
Reposition the brand on a new platform Lifebuoy (Koi Darr Nahin)
Fair & Lovely
#5 A i h P d
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#5: Augmenting the Product
Providing features / services not expected by
the consumer Must be things the consumer values
Linked to the product Drive consumer delight Nestle Coffee Shaker
Titan Eye Free Eye Testing
#6 Ob l ti E i ti
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#6: Obsoleting ExistingProducts Kill the existing product and introduce a new
technologically advanced product Bajaj: Scooters to Motorcycles
Gillette: Stainless Steel Blades Intel: Self Destruction
Windows Vista: Windows 7
Risky as there has been investment in theexisting product which will go waste
#7 E t di th B d
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#7: Extending the Brand
Take the brand into products which have a
brighter future Dettol Soap
Mcdonalds: Salads & Yoghurt Crest: Beyond cavities!
Extension must be
Relevant Sustainable
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What if nothing works?
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O ti #2 Di t t
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Option #2: Divestment orLiquidation Exit out of a brand HUL Denim
Lee Cooper
Last Resort Rapid sales decline
Milking also unprofitable with price pressures Weak brand position
Exit barriers can be overcome
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Brand Extensions
Why? When? How?
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What is a Brand Extension?
Established brands are assets
Marketers try and leverage these assets
The process of using the brand name on
another product is known as extension Line Extensions (Lifebuoy Liquid Soap)
Category Extensions (Nokia Laptops)
Stretch Extensions (Intel Celeron)
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Why Brand Extensions?
New products a driver of growth for a company Developing and launching requires millions Yet 9 out of 10 new products FAIL
Brand not launching new products are also at timesperceived as old and staid
Overdependence on any one brand could be dangerous Parent brand may only appeal to a segment
Brand is seen as boring and lacking variety Allows the competition to flank
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Why Brand Extensions?
Brand extensions helps cut down costs
Also increases the chances of success as the consumer
already has a favourable image
Rejuvenates parent brand
Reduces overdependence on a single product
Category/Stretch extensions help bring in new users
Line extensions cater to different needs of segments orprovide variety to existing users
Can also be a tool for blocking competition
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How do consumers evaluate?
Fit between Parent & Extension
Fit in terms of Core Differentiation
FIT: Coke & Diet Coke (Taste)MISFIT: Pepsi & Crystal Pepsi (Colour)
Extension must remain true to the core
values of the parent brand
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How much to extend?
Extend to the extent where there is an equalborrow & build with the parent brand
Harley: Clothing, Tatoos but not Energy Drink FAL: FAL for Men but not Perfect RadiancePepsodent: Cavity, Plaque but not Fresh BreathDrivers
Frame of Reference (McDonalds Fast Food) POD (Oral-B Toffee) RTB (Gits Pasta)
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Moving Down
Why? Competition
Private Labels
Challenge Protecting the Brand
Distinguish the Extension Sub-Branding
Product
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Moving Up
Why? Potential User Base
Higher Margins
Challenge Managing Credibility
Sub-Brand with a Descriptor (Kodak GOLD)
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Risks in Extension
Line Extension: Overchoice & Confusion
Dilution of Parent Equity: New Maggi, Coke Vanilla
Use of Sub-Brand gives cushion: Sony WalkmanCannibalisation of Parent (Space & SOM)
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Extensions in Portfolio
Cannibalisation
Distinct Role
Incremental Share
Different Needs
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Key Questions
Positioning of Parent Brand?
What am I using from the positioning?
Is that valued by the consumer in the new
category in which I am extending?
Does the consumer see a connect with the
parent?
What will be the impact on the parent?
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