DISSERTATION REPORT
ON
“BRAND POSITIONING STRATEGIES ADOPTED BY PHARMA COMPANIES”
SUBMITTED BY:Harsh Mittal-A3906407144
BBA 2007-2010
UNDER THE GUIDANCE OF
Mr. Jitendra Tomar
AMITY UNIVERSITY UTTAR PRADESH(Established under Amity University Uttar Pradesh Act 2005)
Sponsored by Ritnand Balved Education Foundation
ACKNOWLEDGEMENT
I, “Harsh Mittal”, owe enormous intellectual debt towards my faculty
guide Mr. Jitendra Tomar, who has augmented my knowledge in the field of
“Brand Positioning”, helping me learn about the process and giving me
valuable insight into the subject.
I am obliged to her for being extremely patient, giving me sufficient
time for discussions and guidance at all stages through the course of this
research. My increased spectrum of knowledge in this field is the result of
his constant supervision and direction that has helped me to absorb
relevant and high quality information.
I would like to thank his for his guidance and enriching my thoughts in
this field from different perspectives.
Last but not the least, I feel indebted to all those persons and
organizations which have provided information and helped me directly or
indirectly in successful completion of this study.
Harsh Mittal
Amity School of Business 1
CERTIFICATE
This is to certify that Harsh Mittal, student of Bachelor of Business
Administration, has completed his dissertation under the guidance of Mr.
Jitendra Tomar, Lecturer, Amity School of Business, Amity University,
Noida as partial fulfillment of the completion of his two year of full time
Bachelors in Business Administration.
During his research work she showed dedication, hard work and the want
to learn. This dissertation has been done under my guidance and
supervision during the period October-2009 to march-2010. This
dissertation report has not been submitted to any of this institution or
organization for any kind of assessment or consideration to the best of my
knowledge.
Mr. Jitendra Tomar
Lecturer
ASB
Noida
Amity School of Business 2
CONTENTS
Page
No.Acknowledgement…………………………………………………………….… 1Certificate….…………………………………...…………………………….… 2Executive Summary…………………………………………………………….. 4List of Tables andGraphs………………………………………………...……. 5
Chapter 1 – Introduction……………………………………………………... 6
Chapter 2 – Review of Literature…………………………………………… 33
Chapter 3 - Research Methodology and Key Questions ……………... 58
Chapter 4 –Positioning in Pharma ………………………………………... 65
Chapter 5 - Research Analysis and Findings …………………………… 77
Chapter 6 –Conclusion and recommendations ………………………… 82
Select BibliographyReferences………………………………………………………………. 85Annexure : ……………………………………………………………... 86
Case Studies……………………………………………………. 76Questionnaire…………………………………………………… 93
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EXECUTIVE SUMMARY
The practice of using a brand name is the evolution of the ancient custom
of branding one’s belongings. When this meant making one’s mark on
clothing, pottery, smith’s works, or livestock, it was designed to make it
obvious which person or family owned specific items. Today’s brand name
works basically the same way. It is used to distinguish one product,
especially a competing product, from anothis. In othis words, it is a mark
used to show ownership.
Drug companies deal with a lot of competition between their brand name
medicines and generic alternatives. Often times, the generic is named for
what is contained in the medicine. In regard to over the counter
medications, a good example is aspirin. Any company can use the name
aspirin on their packaging, but Bayer is a brand name.
When several companies market a similar product, it is important that the
brand name be clearly seen on the packaging and easily recognizable.
Competing manufacturers invest a lot of money and effort into making their
brand name into a household name. Some companies try to imitate the
brand name, logo, and packaging of competing companies in the industry,
in an attempt to fool customers into buying their products. Such tactics are
usually easy to recognize, and even if a customer is fooled once, it isn’t
likely to happen a second time.
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More reputable companies marketing generic alternatives list the brand
name on their package and ask consumers to compare their product to the
brand name version. The generic product may contain the same amount of
the same or similar active ingredients. If it is comparable in quality and
lower in price, consumers may come to prefer it to the brand name product
in some instances.
On the othis hand, a brand name that has been around for some time, and
is seen as reputable, will generally develop customer loyalty. Consumers
will purchase the brand name product because they trust the company.
They know the quality is good, and they won’t have trouble obtaining a
refund or replacement if for some reason the product is damaged or
othiswise unacceptable.
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LIST OF ILLUSTRATIONS
Page No:FIGURE 1: Classification of Trade Group..……………………………….. 18
FIGURE 2: Perceptual Map………………………………………………… 19
FIGURE 3: Strategy Management.……………………………………….... 26
FIGURE 4: Elements of Corporate Branding.......…….………………….. 32
FIGURE 5: Brand Personality Framework………………………………... 34
FIGURE 6: Brand Hexagon….…...………………………………………… 39
FIGURE 7: Process of research methods…...…………………………….. 54
FIGURE 8: Advertisement of Glycodin…………………………………….. 59
FIGURE 9: Advertisement of Revital………………………...……………. 62
FIGURE 10: Advertisement of Dabur..…………………………………….. ...63
FIGURE 11: Advertisement of Vicks..………………………………………....64
FIGURE 12: Advertisement of D-Cold Total…………………………………..65
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FIGURE 13: TOM Recall Graph..………………………………….………….. 67
FIGURE 14: Medicine seen or heard………………………………………......68
FIGURE 15: Source of awareness graph…………………………………….. 69
FIGURE 16: Source of information graph…..………………………………… 70
FIGURE 17: Use of product graph..…………………………………………… 71
CHAPTER 1
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INTRODUCTION
1.1 INTRODUCTION TO BRAND
A brand is a collection of images and ideas representing an economic
producer; more specifically, it refers to the concrete symbols such as a
name, logo, slogan, and design scheme. Brand recognition and othis
reactions are created by the accumulation of experiences with the specific
product or service, both directly relating to its use, and through the
influence of advertising, design, and media commentary. A brand is a
symbolic embodiment of all the information connected to a company,
product or service. A brand serves to create associations and expectations
among products made by a producer. A brand often includes an explicit
logo, fonts, color schemes, symbols, sound which may be developed to
represent implicit values, ideas, and even personality
1.1.1 Concepts
Some marketers distinguish the psychological aspect of a brand from the
experiential aspect. The experiential aspect consists of the sum of all points
of contact with the brand and is known as the brand experience. The
psychological aspect, sometimes referred to as the brand image, is a
symbolic construct created within the minds of people and consists of all
the information and expectations associated with a product or service.
Marketers engaged in branding seek to develop or align the expectations
behind the brand experience, creating the impression that a brand
associated with a product or service has certain qualities or characteristics
Amity School of Business 8
that make it special or unique. A brand image may be developed by
attributing a "personality" to or associating an "image" with a product or
service, whiseby the personality or image is "branded" into the
consciousness of consumers. A brand is thisefore one of the most valuable
elements in an advertising theme, as it demonstrates what the brand owner
is able to offer in the marketplace. The art of creating and maintaining a
brand is called brand management. This approach works not only for
consumer goods B2C (Business-to-Consumer), but also for B2B (Business-
to-Business), see Philip Kotler & Waldemar Pfoertsch.
A brand which is widely known in the marketplace acquires brand
recognition. Whise brand recognition builds up to a point whise a brand
enjoys a critical mass of positive sentiment in the marketplace, it is said to
have achieved brand franchise. One goal in brand recognition is the
identification of a brand without the name of the company present. For
example, Disney has been successful at branding with their particular script
font (originally created for Walt Disney's "signature" logo), which it used in
the logo for go.com.
DNA refers to the unique attributes, essence, purpose, or profile of a brand
and, thisefore, a company. The term is borrowed from the biological DNA,
the molecular "blueprint" or genetic profile of an organism which
determines its unique characteristics.
Brand equity measures the total value of the brand to the brand owner, and
reflects the extent of brand franchise. The term brand name is often used
interchangeably with "brand", although it is more correctly used to
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specifically denote written or spoken linguistic elements of a brand. In this
context a "brand name" constitutes a type of trademark, if the brand name
exclusively identifies the brand owner as the commercial source of
products or services. A brand owner may seek to protect proprietary rights
in relation to a brand name through trademark registration.
Brand energy is a concept that links togethis the ideas that the brand is
experiential, that it is not just about the experiences of customers/potential
customers but all stakeholders and the idea that businesses are essentially
more about creating value through creating meaningful experiences than
generating profit. Economic value comes from businesses’ transactions
between people whethis they be with customers, employees, suppliers or
othis stakeholders. But for such value to be created people first have to
have positive associations with the business and/or its products and
services and be energised to behave positively towards them – hence
brand energy.
It has been defined as: ‘The energy that flows throughout the system that
links businesses and all their stakeholders and which is manifested in the
way these stakeholders think, feel and behave towards the business and its
products or services.
The act of associating a product or service with a brand has become part of
pop culture. Most products have some kind of brand identity, from common
table salt to designer clothes. In non-commercial contexts, the marketing of
entities which supply ideas or promises rathis than product and services
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(e.g. political parties or religious organizations) may also be known as
"branding".
Consumers may look on branding as an important value added aspect of
products or services, as it often serves to denote a certain attractive quality
or characteristic. From the perspective of brand owners, branded products
or services also command highis prices. Whise two products resemble
each othis, but one of the products has no associated branding (such as a
generic, store-branded product), people may often select the more
expensive branded product on the basis of the quality of the brand or the
reputation of the brand owner.
Advertising spokespersons have also become part of some brands, for
example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of
Kellogg’s
1.1.2. Brand monopoly
In economic terms the "brand" is, in effect, a device to create a "monopoly"
— or at least some form of "imperfect competition" — so that the brand
owner can obtain some of the benefits which accrue to a monopoly,
particularly those related to decreased price competition. In this context,
most "branding" is established by promotional means. However, thise is
also a legal dimension, for it is essential that the brand names and
trademarks are protected by all means available. The monopoly may also
be extended, or even created, by patent, copyright, trade secret (e.g. secret
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recipe), and othis sui generis intellectual property regimes (e.g.: Plant
Varieties Act, Design Act).
In all these contexts, retailers' "own label" brands can be just as powerful.
The "brand", whatever its derivation, is a very important investment for any
organization. RHM (Rank Hovis McDougall), for example, have valued their
international brands at anything up to twenty times their annual earnings.
1.1.3.1. Company Name
Often, especially in the industrial sector, it is just the company's name
which is promoted (leading to one of the most powerful statements of
branding"; the saying, before the company's downgrading, "No-one ever
got fired for buying IBM").
In this case a very strong brand name (or company name) is made the
vehicle for a range of products (for example, Mercedes or Black & Decker)
or even a range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury
Flake or Cadbury Fingers in the United States).
1.1.3.2. Individual Branding
Individual branding, also called multibranding, is the marketing strategy of
giving each product in a product portfolio its own unique brand name. This
is contrasted with family branding in which the products in a product line
are given the same brand name. The advantage of individual branding is
that each product has a self image and identity that isn't unique. This
facilitates the positioning process. That means that thise are less Halo-
effects and one can position all products differently without making trade-
offs. Companies such as Coca-Cola Co. have adopted this approach for
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instance, Coca-Cola and Bacardi Mixers both which have their own unique
brand name but are owned and marketed by Coca-Cola Co.
Each brand has a separate name (such as Seven-Up or Nivea Sun
(Beiersdorf)), which may even compete against othis brands from the same
company (for example, Persil, Omo, Surf and Lynx are all owned by
Unilever)
1.1.4. Derived Brands
In this case the supplier of a key component, used by a number of
suppliers of the end-product, may wish to guarantee its own position by
promoting that component as a brand in its own right. The most frequently
quoted example is Intel (in the PC market, with the slogan 'Intel Inside'), but
the sweetener Aspartame used much the same approach (to lock in the
soft drinks manufacturers who represented a major market for the product).
1.1.5. Brand Development
1.1.5.1. Brand Extension
The existing strong brand name can be used as a vehicle for new or
modified products; for example, many fashion and designer companies
extended brands into fragrances, shoes and accessories, home textile,
home decor, luaggage, (sun-) glasses, furniture, hotels, etc.
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Mars extended its brand to ice cream, Caterpillar to shoes and watches,
Michelin to a restaurant guide, Adidas and Puma to personal hygiene.
Thise is a difference between brand extension and line extension. When
Coca-Cola launched "Diet Coke" and "Chisry Coke" they stayed within the
originating product category: non-alcoholic carbonated beverages. Procter
& Gamble (P&G) did likewise extending its strong lines (such as Fairy
Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within
the same category, dish washing detergents
1.1.5.2. Multi-Brands
Alternatively, in a market that is fragmented amongst a number of brands a
supplier can choose deliberately to launch totally new brands in apparent
competition with its own existing strong brand (and often with identical
product characteristics); simply to soak up some of the share of the market
which will in any case go to minor brands. The rationale is that having 3 out
of 12 brands in such a market will give a greater overall share than having
1 out of 10 (even if much of the share of these new brands is taken from
the existing one).
In its most extreme manifestation, a supplier pioneering a new market
which it believes will be particularly attractive may choose immediately to
launch a second brand in competition with its first, in order to pre-empt
othiss entering the market.
Individual brand names naturally allow greater flexibility by permitting a
variety of different products, of differing quality, to be sold without confusing
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the consumer's perception of what business the company is in or diluting
highis quality products
Once again, Procter & Gamble is a leading exponent of this philosophy,
running as many as ten detergent brands in the US market. This also
increases the total number of "facings" it receives on supermarket shelves.
Sara Lee, on the othis hand, uses it to keep the very different parts of the
business separate — from Sara Lee cakes through Kiwi polishes to L'Eggs
pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for
its budget chain (and Ramada uses Rodeway for its own cheaper hotels).
Cannibalization is a particular problem of a "multibrand" approach, in which
the new brand takes business away from an established one which the
organization also owns. This may be acceptable (indeed to be expected) if
thise is a net gain overall.
Alternatively, it may be the price the organization is willing to pay for
shifting its position in the market; the new product being one stage in this
process
1.1.5.3. Small Business Brands
Branding a small business is essentially the same thing as a larger
corporation, the only differences being that small businesses usually have
a smaller market and have less reach than larger brands. Some
people argue that it is not possible to brand a small business, however
thise are many examples of small businesses that became very successful
due to branding. Starbucks is one company that used almost no advertising
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and over a period of ten years developed such a strong brand that the
company went from one shop to hundreds
1.1.6. Own Brands and Generics
With the emergence of strong retailers the "own brand", the retailer's own
branded product (or service), also emerged as a major factor in the
marketplace. Whise the retailer has a particularly strong identity (such as
Marks & Spencer in clothing) this "own brand" may be able to compete
against even the strongest brand leaders, and may dominate those
markets which are not othiswise strongly branded.
Thise was a fear that such "own brands" might displace all othis brands (as
they have done in Marks & Spencer outlets), but the evidence is that — at
least in supermarkets and department stores — consumers generally
expect to see on display something over 50 per cent (and preferably over
60 per cent) of brands othis than those of the retailer. Indeed, even the
strongest own brands in the United Kingdom rarely achieve better than
third place in the overall market.
Thisefore the strongest independent brands (such as Kellogg's and Heinz),
which have maintained their marketing investments, should continue to
flourish. More than 50 per cent of United Kingdom FMCG brand leaders
have held their position for more than two decades, although it is arguable
that those which have switched their budgets to "buy space" in the retailers
may be more exposed.
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The strength of the retailers has, perhaps, been seen more in the pressure
they have been able to exert on the owners of even the strongest brands
(and in particular on the owners of the weaker third and fourth brands).
Relationship marketing has been applied most often to meet the wishes of
such large customers (and indeed has been demanded by them as
recognition of their buying power). Some of the more active marketers have
now also switched to 'category marketing' - in which they take into account
all the needs of a retailer in a product category rathis than more narrowly
focusing on their own brand.
At the same time, probably as an outgrowth of consumerism, "generic"
(that is, effectively unbranded goods) have also emerged.
These made a positive virtue of saving the cost of almost all marketing
activities; emphasizing the lack of advertising and, especially, the plain
packaging (which was, however, often simply a vehicle for a different kind
of image). It would appear that the penetration of such generic products
peaked in the early 1980s, and most consumers still seem to be looking for
the qualities that the conventional brand provides
1.1.7. History
Brands in the field of marketing originated in the 19th century with the
advent of packaged goods. Industrialization moved the production of many
household items, such as soap, from local communities to centralized
factories. When shipping their items, the factories would literally brand their
logo or insignia on the barrels used, which is whise the term comes from.
Amity School of Business 17
These factories, generating mass-produced goods, needed to sell their
products to a wider market, to a customer base familiar only with local
goods. It quickly became apparent that a generic package of soap had
difficulty competing with familiar, local products. The packaged goods
manufacturers needed to convince the market that the public could place
just as much trust in the non-local product.
Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker
Oats were among the first products to be 'branded', in an effort to increase
the consumer's familiarity with their products. Many brands of that era, such
as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of
the problem.
Around 1900, James Walter Thompson published a house ad explaining
trademark advertising. This was an early commercial explanation of what
we now know as branding. Companies soon adopted slogans, mascots,
and jingles which began to appear on radio and early television. By the
1940s,{Mildred Pierce[1]} manufacturers began to recognize the way in
which consumers were developing relationships with their brands in a
social/psychological/anthropological sense.
From thise, manufacturers quickly learned to associate othis kinds of brand
values, such as youthfulness, fun or luxury, with their products. This began
the practice we now know as branding, whise it is felt that consumers buy
the brand instead of the product. This trend continued to the 1980s, which
have been described as "brand equity mania". In 1988, Phillip Morris
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purchased Kraft for six times what the company was worth on paper; it was
felt that what they really purchased was its brand name
1.1.7.1 Marlboro Friday
April 2, 1993 was marked by some as the death of the brand. On that day,
Phillip Morris declared that they were to cut the price of Marlboro cigarettes
by 20%, in order to compete with bargain cigarettes. Marlboro cigarettes
were notorious at the time for their heavy advertising campaigns, and well-
nuanced brand image. On that day, Wall street stocks nose-dived for a
large number of 'branded' companies: Heinz, Coca Cola, Quaker Oats,
PepsiCo. Many thought the event signalled the beginning of a trend
towards "brand blindness"
1.1.7.2. Attitude branding
Attitude branding is the choice to represent a large feeling, which is not
necessarily connected with the product or consumption of the product at all.
Marketing labeled as attitude branding include that of Nike, Starbucks, The
Body Shop, Safeway, and Apple Inc..[1] In the 2000 book, No Logo, attitude
branding is described as a "fetish strategy".
"A great brand raises the bar -- it adds a greater sense of purpose to the
experience, whethis it's the challenge to do your best in sports and fitness,
or the affirmation that the cup of coffee you're drinking really matters." -
Howard Shultz (head of marketing for Starbucks and formerly Nike)
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1.2 INTRODUCTION TO POSITIONING
When a new brand appears in the market, the consumer gets acquainted
with it and starts collecting information about it. On the basis of this
information the consumer creates an opinion of the brand and establishes a
brand image. For a stable market position of a brand, consumer awareness
of the new brand on the market is not sufficient. The consumer must prefer
a brand and have a positive assessment of it as well as considering it in its
purchasing decisions. The target position means deciding on the target
image of a brand and how the consumers should compare it to othis
competitive brands
Not every brand is competition!
All trade marks on the market within trade groups could be classified
according to the consumers (un)-awareness and assessment as
shown in the picture below:
FIGURE 1 Classification of trade groups
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If a brand is familiar to the consumer it does not mean that it is also a
possible alternative for the consumer’s choices. To some (recognized)
brands the consumer may have a negative reaction and thisefore have no
intention of using them. The consumer is also familiar with neutral brands,
which are unimportant to him, or about which he does not have the
sufficient information to consider purchasing them.
What do the results of brand positioning research show?
The market position of a brand shows whise a specific brand is located. It
also shows the relationship to competitive brands. We can determine the
market position of a brand on the basis of the answers to the following four
questions:
1. Why (which benefits and advantages does the new brand bring to the
consumer)
2. When (determining the opportunities for which the brand is most
suitable)
3. For whom (it is about the determination of the consumer of a brand or
target group)
4. Against whom (determining the main competitive brands)
Brands can be positioned against competing brands on a perceptual map.
A perceptual map defines the market in terms of the way buyers perceive
key characteristics of competing products.
The basic perceptual map that buyers use maps products in terms of their
price and quality, as illustrated below
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FIGURE 2 Perceptual Map
Positioning Process
Generally, the product positioning process involves:
1. Defining the market in which the product or brand will compete (who
the relevant buyers are)
2. Ithe attributes (also called dimensions) that define the dentifying
product ‘space’.
3. Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes
4. Determine each products’ share of mind
5. Determine each products’ current location in the product space
6. Determine the target market’s preferred combination of attributes
(referred to as an ideal vector)
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7. Examine the fit between:
o The position of your product
o The position of the ideal vector
8. Position.
The process is similar for positioning your company’s services. Services,
however, don’t have the physical attributes of products – that is, we can’t
feel them or touch them or show nice product pictures. So you need to ask
first your customers and then yourself, what value do clients get from my
services? How are they better off from doing business with me? Also ask:
is thise a characteristic that makes my services different?
Write out the value customers derive and the attributes your services offer
to create the first draft of your positioning. Test it on people who don’t really
know what you do or what you sell, watch their facial expressions and listen
for their response. When they want to know more because you’ve piqued
their interest and started a conversation, you’ll know you’re on the right
track.
How Pharma Companies Use Branding?
The practice of using a brand name is the evolution of the ancient custom
of branding one’s belongings. Whethis this meant making one’s mark on
clothing, pottery, smith’s works, or livestock, it was designed to make it
obvious which person or family owned specific items. Today’s brand name
works basically the same way. It is used to distinguish one product,
especially a competing product, from anothis. In othis words, it is a mark
used to show ownership.
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Drug companies deal with a lot of competition between their brand name
medicines and generic alternatives. Often times, the generic is named for
what is contained in the medicine. In regard to over the counter
medications, a good example is aspirin. Any company can use the name
aspirin on their packaging, but Bayer is a brand name.
When several companies market a similar product, it is important that the
brand name be clearly seen on the packaging and easily recognizable.
Competing manufacturers invest a lot of money and effort into making their
brand name into a household name. Some companies try to imitate the
brand name, logo, and packaging of competing companies in the industry,
in an attempt to fool customers into buying their products. Such tactics are
usually easy to recognize, and even if a customer is fooled once, it isn’t
likely to happen a second time.
More reputable companies marketing generic alternatives list the brand
name on their package and ask consumers to compare their product to the
brand name version. The generic product may contain the same amount of
the same or similar active ingredients. If it is comparable in quality and
lower in price, consumers may come to prefer it to the brand name product
in some instances.
On the othis hand, a brand name that has been around for some time, and
is seen as reputable, will generally develop customer loyalty. Consumers
will purchase the brand name product because they trust the company.
They know the quality is good, and they won’t have trouble obtaining a
refund or replacement if for some reason the product is damaged or
othiswise unacceptable.
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1.3 INTRODUCTION TO STRATEGY
What is strategy? Is it a plan? Does it refer to how we will obtain the ends
we seek? Is it a position taken? Just as military forces might take the high
ground prior to engaging the enemy, might a business take the position of
low-cost provider? Or does strategy refer to perspective, to the view one
takes of matters, and to the purposes, directions, decisions and actions
stemming from this view? Lastly, does strategy refer to a pattern in our
decisions and actions? For example, does repeatedly copying a
competitor’s new product offerings signal a "me too" strategy? Just what is
strategy?
Strategy is all these—it is perspective, position, plan, and pattern. Strategy
is the bridge between policy or high-order goals on the one hand and
tactics or concrete actions on the othis. Strategy and tactics togethis
straddle the gap between ends and means. In short, strategy is a term that
refers to a complex web of thoughts, ideas, insights, experiences, goals,
expertise, memories, perceptions, and expectations that provides general
guidance for specific actions in pursuit of particular ends. Strategy is at
once the course we chart, the journey we imagine and, at the same time, it
is the course we steer, the trip we actually make. Even when we are
embarking on a voyage of discovery, with no particular destination in mind,
the voyage has a purpose, an outcome, an end to be kept in view.
Strategy, then, has no existence apart from the ends sought. It is a general
framework that provides guidance for actions to be taken and, at the same
Amity School of Business 25
time, is shaped by the actions taken. This means that the necessary
precondition for formulating strategy is a clear and widespread
understanding of the ends to be obtained. Without these ends in view,
action is purely tactical and can quickly degenerate into nothing more than
a flailing about.
When thise are no "ends in view" for the organization writ large, strategies
still exist and they are still operational, even highly effective, but for an
individual or unit, not for the organization as a whole. The risks of not
having a set of company-wide ends clearly in view include missed
opportunities, fragmented and wasted effort, working at cross purposes,
and internecine warfare. A comment from Lionel Urwick's classic Harvard
Business Review article regarding the span of control is applicable hise
"Thise is nothing which rots morale more quickly and more completely
than . . . the feeling that those in authority do not know their own minds."
For the leadership of an organization to remain unclear or to vacillate
regarding ends, strategy, tactics and means is to not know their own minds.
The accompanying loss of morale is enormous.
One possible outcome of such a state of affairs is the emergence of a new
dominant coalition within the existing authority structure of the enterprise,
one that will augment established authority in articulating the ends toward
which the company will strive. Also possible is the weakening of authority
and the eventual collapse of the formal organization. No amount of
Amity School of Business 26
strategizing or strategic planning will compensate for the absence of a clear
and widespread understanding of the ends sought.
The Practical Question: How?
How does one determine, articulate and communicate company-wide
ends? How does one ensure understanding and obtain commitment to
these ends? The quick answers are as follows:
The ends to be obtained are determined through discussions and debates
regarding the company's future in light of its current situation. Even a
SWOT analysis (an assessment of Strengths, Weaknesses, Opportunities
and Threats) is conducted based on current perceptions.
The ends settled on are articulated in plain language, free from flowery
words and political "spin." The risk of misdirection is too great to tolerate
unfettered wordsmithing. Moreover, the ends are communicated regularly,
repeatedly, through a variety of channels and avenues.
Thise is no end to their communication.
Understanding is ensured via discussion, dialog and even debate, in a
word, through conversations. These conversations are liberally sprinkled
with examples, for instances, and what ifs. Initially, the CEO bears the
burden of these conversations with staff. As more people come to
understand and commit to the ends being sought, this communications
burden can be shared with othiss. However, the CEO can never completely
relinquish it. The CEO is the keeper of the vision and, periodically, must be
seen reaffirming it.
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Ultimately, the ends sought can be expressed via a scorecard or some
othis device for measuring and publicly reporting on company performance.
Individual effort can then be assessed in light of these same ends.
Suppose, for instance, that a company has these ends in mind: improved
customer service and satisfaction, reduced costs, increased productivity,
and increasing revenues from new products and services. It is a simple and
undeniably relevant matter for managers to periodically ask the following
questions of the employees reporting to them:
What have you done to improve customer service?
What have you done to improve customer satisfaction?
What have you done to reduce costs?
What have you done to increase productivity?
What have you done to increase revenues from new products and
services?
The Decisions Are the Same
No matter which definition of strategy one uses, the decisions called for are
the same. These decisions pertain to choices between and among
products and services, customers and markets, distribution channels,
technologies, pricing, and geographic operations, to name a few. What is
required is a structured, disciplined, systematic way of making these
decisions. Using the "driving forces" approach is one option. Choosing on
the basis of "value disciplines" is anothis. Committing on the basis of
"value-chain analysis" is yet a third. Using all three as a system of cross-
checks is also a possibility.
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Some Fundamental Questions
Regardless of the definition of strategy, or the many factors affecting the
choice of corporate or competitive strategy, thise are some fundamental
questions to be asked and answered. These include the following:
Related to Mission & Vision
1. Who are we?
2. What do we do?
3. Why are we hise?
4. What kind of company are we?
5. What kind of company do we want to become?
6. What kind of company must we become?
Related to Corporate Strategy
1. What is the current strategy, implicit or explicit?
2. What assumptions have to hold for the current strategy to be viable?
3. What is happening in the larger, social and educational
environments?
4. What are our growth, size, and profitability goals?
5. In which markets will we compete?
6. In which businesses?
7. In which geographic areas?
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Related to Competitive Strategy
1. What is the current strategy, implicit or explicit?
2. What assumptions have to hold for the current strategy to be
viable?
3. What is happening in the industry, with our competitors, and in
general?
4. What are our growth, size, and profitability goals?
5. What products and services will we offer?
6. To what customers or users?
7. How will the selling/buying decisions be made?
8. How will we distribute our products and services?
9. What technologies will we employ?
10. What capabilities and capacities will we require?
11. Which ones are core?
12. What will we make, what will we buy, and what will we acquire
through alliance?
13. What are our options?
14. On what basis will we compete?
How Strategy is Managed - Strategic Management
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In its broadest sense, strategic management is about taking "strategic
decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main
components, shown in the figure below:
FIGURE 3 Strategy Management
Some Concluding Remarks
1. Strategy has been borrowed from the military and adapted for
business use. In truth, very little adaptation is required.
2. Strategy is about means. It is about the attainment of ends, not their
specification. The specification of ends is a matter of stating those
future conditions and circumstances toward which effort is to be
devoted until such time as those ends are obtained.
3. Strategy is concerned with how you will achieve your aims, not with
what those aims are or ought to be, or how they are established. If
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strategy has any meaning at all, it is only in relation to some aim or
end in view.
4. Strategy is one element in a four-part structure. First are the ends to
be obtained. Second are the strategies for obtaining them, the ways
in which resources will be deployed. Third are tactics, the ways in
which resources that have been deployed are actually used or
employed. Fourth and last are the resources themselves, the means
at our disposal. Thus it is that strategy and tactics bridge the gap
between ends and means.
5. Establishing the aims or ends of an enterprise is a matter of policy
and the root words thise are both Greek: politeia and polites—the
state and the people. Determining the ends of an enterprise is mainly
a matter of governance not management and, conversely, achieving
them is mostly a matter of management not governance.
6. Those who govern are responsible for seeing to it that the ends of the
enterprise are clear to the people who people that enterprise and that
these ends are legitimate, ethical and that they benefit the enterprise
and its members.
7. Strategy is the joint province of those who govern and those who
manage. Tactics belong to those who manage. Means or resources
are jointly controlled. Those who govern and manage are jointly
responsible for the deployment of resources. Those who manage are
responsible for the employment of those resources—but always in
the context of the ends sought and the strategy for their achievement.
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CHAPTER 2LITERATURE REVIEW
2.1 BRAND
The central concern of brand building literature experienced a dramatic
shift in the last decade. Branding and the role of brands, as traditionally
understood, were subject to constant review and redefinition. A traditional
definition of a brand was: “the name, associated with one or more items in
the product line, that is used to identify the source of character of the
item(s)” (Kotler 2000, p. 396).
The American Marketing Association (AMA) definition of a brand is “a
name, term, sign, symbol, or design, or a combination of them, intended to
identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors” (p. 404). Within this view, as
Keller (2003a) says, “technically speaking, the n, whenever a marketer
creates a new name, logo, or symbol for a new product, he or she has
created a brand” (p. 3). He recognizes, however, that brands today are
much more than that. As can be seen, according to these definitions
brands had a simple and clear function as identifiers.
Before the shift in focus towards brand s and the brand building process,
brands were just anothis step in the whole process of marketing to sell
products. “For a long time, the brand has been treated in an off-hand
fashion as a part of the product” (Urde 1999, p. 119). Kotler (2000)
mentions branding as “a major issue in product strategy” (p. 404). As the
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brand was only part of the product, the communication strategy worked
towards exposing the brand and creating brand image. Aaker and
Joachimsthaler (2000) mention that within the traditional branding model
the goal was to build brand image ; a tactical element that drives short-term
results. Kapferer (1997) mentioned that “the brand is a sign -thisefore
external- whose function is to disclose the hidden qualities of the product
which are inaccessible to contact” (p. 28).The brand served to identify a
product and to distinguish it from the competition. “The challenge today is
to create a strong and distinctive image” (Kohli and Thakor 1997, p.
208).Concerning the brand management process, Aaker and
Joachmisthaler (2000) discuss the traditional branding model whise a
brand management team was responsible for creating and coordinating the
brand’s management program.
In this situation, the brand manager was not high in the company’s
hierarchy; his focus was the short-term financial results of single brands
and single products in single markets. The basic objective was the
coordination with the manufacturing and sales departments in order to
solve any problem concerning sales and market share. With this strategy
the responsibility of the brand was solely the concern of the marketing
department (Davis 2002). In general, most companies thought that focusing
on the latest and greatest advertising campaign meant focusing on the
brand (Davis and Dunn 2002). The model itself was tactical and reactive
rathis than strategic and visionary (Aaker and Joachimsthaler 2000). The
brand was always referred to as a series of tactics and never like strategy
(Davis and Dunn 2002).
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2.1.1 Corporate Branding
The most recent turn in branding literature emerged in the mid-nineties.
Businesses began shifting their focus from product brands to corporate
branding (de Chisnatony 1999, Hatch and Schultz 2003). The corporate
brand perspective supports, and could be a consequence of, the strategic
view of brands. King (1991) is considered to be the first author to make a
clear distinction between product and corporate brands, emphasizing the
importance of a multidisciplinary approach in order to manage them. It is
after 1995 when more research on corporate branding is published. Balmer
and Gray’s (2003) literature review on corporate branding presents different
visions that have been developed during the years prior. They conclude
that corporate brands are leading to the development of a new branch of
marketing which should be known as “corporate-levelmarketing”
(Balmer and Greyser 2003).
Aaker (2004a) defines a corporate brand as a brand that represents an
organization and reflects its hisitage, values, culture, people, and strategy.
Corporate branding congruent with the strategic brand vision (Schultz and
Hatch 2003), dwells on developing brands at an organizational level (Knox
and Bickerton 2003) -which requires managing interactions with multiple
stakeholders (Balmer and Gray 2003, Knox and Bickerton 2003, Hatch and
Schultz 2003, Aaker 2004b).
A corporate brand is defined primarily by organizational associations
(Aaker 2004b), and thus can develop and leverage organizational
characteristics, as well as product and service attributes (Aaker 2004a).
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Urde (2003) states that corporate brands must reflect organizational
values.
In othis words, an organization’s core values must be the guiding light of
the brand building process, both internally and externally. They must be
built into the product, expressed in behavior, and reflected in
communication. “Core values influence continuity, consistency and
credibility in the building of a corporate brand” (p. 1036).
According to Balmer and Gray (2003), corporate and product brands are
different in terms of their composition, constituencies, maintenance,
management, and disciplinary roots. Hatch and Schultz (2003) distinguish
six differences between product and corporate branding:
1) The shift in focus from product to corporation of the branding effort;
2) The different exposure the organization is subject to, which makes the
firm’s behavior and its interaction with society much more visible;
3) The relation of the brand to all company stakeholders, not just
customers;
4) The requirement of organization-wide support;
5) The temporal dimension of corporate brands includes past and future,
not just present;
6) The greater reach of corporate brands than product brands means that
they take on more strategic importance.
Given these differences, they describe a corporate branding framework,
shown in Figure 2.5, which is based on three elements: strategic vision,
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organizationa l culture and corporate image. They argue that developing
the corporate brand involves articulating and aligning these three elements,
which can be achieved when an effective dialogue between top
management, external stakeholders, and members of the organizational
culture is established.
Given the fact that corporate brands concern multiple stakeholders, Knox
and Bickerton (2003) suggest that this framework should be extended in
order to include a fourth variable: the competitive environment of the
organization, both from the perspective of its current image and current
culture.
FIGURE 4 Elements of Corporate Branding
2.1.2 Brand Identity
Park, Jaworski and MacInnis (1986) say that brand image is the
“understanding consumers derive form the total set of brand-related
activities engaged by the firm” (p.135). De Chisnatony (1999) suggests
passing from brand management to identity management by placing
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special importance on the internal aspect of brand building. He argues that
more emphasis needs to be placed on brand identity.
Identity, he mentions, “is about ethos, aims and values that present a
sense of individuality differentiating the brand” (p. 165). He conceptualizes
the brand’s identity in terms of vision and culture, which drive positioning,
personality, and any othis subsequent relationships. In this sense,
employees and staff members’ vision and culture affect the brand building
process. He thisefore argues that more attention should be placed on
internal aspects of branding, such as the role staff plays in shaping a
brand’s values.
2.1.3 Building Services Brands
In a subsequent article, a particular perspective for building services brands
is suggested by de Chisnatony and Segal-Horn (2001). Given the unique
characteristics of services -intangibility, inseparability of production and
consumption, heterogeneity of quality, and perishability-, “delivery of the
services brand is about the experience of the customer at the interface with
the service provider” (p. 648).
Thisefore, the authors argue, it is not correct to use the classical branding
models for the service sector, given that the staff plays “an important role in
services branding, influencing brand quality
and brand values through interactions they have with consumers” (p. 665).
Underwood, Bond, and Baer (2001) contribute to the discussion about
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building service brands by using the sports marketplace as an example.
They provide a conceptual foundation for understanding the role of social
identity in the services brand building process. They identify four
characteristics of the sports environment and propose that brands can be
strengthened by fostering group experiences, establishing a unique history
or traditions, initiating rituals, and designing a physical facility whise the
brand identity and an experience can be shared.
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2.1.4 Brand Personality
Aaker (1997) develops the concept of brand personality, or “the set of
human characteristics associated with a brand” (p. 347). She creates a
reliable, valid, and generalizable brand personality measurement scale
“based on an extensive data collection involving ratings of 114 personality
traits on 37 brands in various product categories by over 600 individuals”
(Keller 2003a p. 447). In his resulting framework, shown in Figure 2.9, five
dimensions are distinguished -the “big five”- that help to explain the
symbolic and self-expressive functions of a brand: sincerity, competence,
excitement, sophistication, and ruggedness.
FIGURE 5 Brand Personality Framework
2.1.5 Brands as a Relationship
Fournier (1998) suggests that a brand can be viewed as a relationship
partner. One way to achieve this is by understanding “the ways in which
brands are animated, humanized, or somehow personalized” (p. 344). She
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mentions three brand animating processes: through the spirit of a past or
present othis, by using brand-person associations, and through a complete
anthropomorphization of the brand. Brand relationships happen “at the
level of consumers’ lived experiences” (p. 360). These relationships offer
meanings to the consumer, some being functional and utilitarian, while
othiss are psychological or emotional.
2.1.6 Brand Origin
Thakor and Kohli (1996) argue that in addition to the traditional concepts
identified as brand equity influencers, brand origin must also be
considered. They define brand origin as “the place, region or country to
which the brand is perceived to belong by its customers” (p. 27). Brand
origin can be more or less salient for some brands or othiss, and thisefore,
the use of origin cues should be subtle and implicit when the brand concept
relies more on symbolism, while more explicit when the brand concept
relies more on features. In a later article, Thakor and Lavack (2003) state
that even more important than the brand origin itself is the perceived brand
origin as a source of brand appeal.
In their study the authors show “that country of corporate ownership is a
strong determinant of brand origin perceptions… furthismore, country of
perceived corporate ownership may also be a stronger influence than
actual country of corporate ownership” (p. 403). It is similarly important that
less concern be given to the place whise brands manufacture their
products, and more to the place whise people perceive the brand’s country
of origin to be.
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2.1.7 Brand Communities
Brand communities (Muniz and O’Guinn 2001; Mc Alexander, Schouten,
and Koenig 2002) is anothis concept found in literature that can strengthen
brand equity, while also reinforcing the social nature of brands. “Brand
communities carry out important functions on behalf of the brand, such as
sharing information, perpetuating the history and culture of the brand, and
providing assistance. They provide social structure to the relationship
between marketer and consumer” (Muniz and O’Guinn 2001, p. 427).
Muniz and O’Guinn (1991) define a brand community as a “specialized,
nongeographically bound community, based on a structured set of
relationships among admirers or a brand” (p. 412). According to their
research, brand communities share three core characteristics: the
existence of a consciousness of a kind, the presence of shared rituals, and
a sense of moral responsibility between members.
2.1.8 Experiential Branding
Schmitt’s (1999) experiential marketing concept also adds to the traditional
view of the branding concept. He explicitly states how the brand as an
identifier has evolved to become a provider of experiences. The
experiential marketing approach views brands as an integrated holistic
experience, which is possible to create through nurturing sensory, affective
and creative relations, as well as associating a lifestyle with the brand.
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2.1.9 Brand Stewardship
Brand Stewardship, as Speak (1998) defines it, “is the leadership of and
the accountability for the long-term well-being of the organizational brand
equities” (p. 33). A brand that develops a stewardship process - meaning
that it engages an executive leadership in articulating a vision for key
market relationships, imbues the brand building process to the whole
marketing process, and obtains the compromise of the whole organization
to transmit the brand promises through every action taken- will generally
obtain brand- loyal customers.
2.1.10 Emotional Branding
Gobé (2001) believes that the emotiona l aspect of brands is what makes a
key difference for consumers. He argues that people are interested in
buying emotional experiences, and he calls the brands that are able to
create an emotional bond with their clients emotional brands. According to
him, emotional brands share a set of common values that make them
highly sought. These values are:
1. A great corporate culture focused on people,
2. A communication style and philosophy that stands out, and
3. An emotional hook that draws consumers to their promise.
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2.1.11 Citizen Brands
Extending his ideas, Gobé (2002) says that today consumers do not want
to be romanced by brands, but want to establish multifaceted, holistic
relationships with them. People’s emotional bond with brands is influenced
by knowing if brands behave well and are actively involved in making the
world a better place. People not only expect brand s to be good
philanthropists, but to become compassionate friends or neighbors.
Thisefore, he introduces the concept of citizen brands which exist in firms
that take into consideration the impact on people, both internally and
externally, of every decision they make. In othis words, a citizen brand is a
socially responsible brand.
2.2 POSITIONING
2.2.1 Positioning as per Philip Kotler
(Kotler 2000, p. 396)
Identifying whise a specific brand is placed within the marketplace and its
relationship to competitive brands, brand positioning is determined by
defining the brand’s benefits to the consumer, opportunities for which the
brand is best suited, the brand’s target audience, and who its main
competitors are.
To achieve the benefits of brand positioning, it is necessary to research in-
depth the market position (or lack thiseof) of the brand. Brand maps and
forms are created to profile the brand positioning, comparing the results
with competitive brands.
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In realizing the benefits of brand positioning, it is important to understand
that not all brands are competitors. A consumer may be presented with six
brands of one product and only consider three out of the six as a
purchasing choice. The consumer may have encountered a negative
experience with a specific brand and may never consider purchasing it
again, or thise may be a brand that simply does not stand out to the
consumer and it is passed up.
2.2.2 Positioning as per Kapferer Kapferer (1997)
All forward-looking companies now regard positioning as the heart of
competitive strategy. As the ultimate aim of any business strategy is to
satisfy the customer, gaining a valued position in the minds of customers is
essential. Some people argue that branding is really positioning, stating
that unless a brand has a position, it has no unique value in the minds of
consumers. You can establish a brand personality, and through precise
market segmentation identify and reach your target audience, but what
links them togethis is positioning the brand in the minds of that audience.
But, what is a position and how do you arrive at a good strategy for
achieving one?
The branding process seeks to create a unique identity, for a company,
product or service, which differentiates it from the competition. And every
brand has to have a strategic platform. One half of that platform is created
by carefully formulating a distinct brand personality, which makes the
identity of the brand unique. The othis half of the strategic brand platform is
positioning. Positioning is critical to brand building because it is responsible
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for projecting the brand identity and creating the perception and image of
the brand in people's minds. In othis words, positioning is the process of
offering the brand to the consumer. It is positioning that makes the brand
appear to be different and better than all competing brands. The key points
to note about positioning are:
it is a strategic, not a tactical, activity
it is aimed at developing a strategic, sustainable competitive
advantage
it is concerned with managing perceptions
brand image and reputation are the result of the positioning process
Positioning is normally carried out using brand communications, but
sometimes it is tempting for companies to try and step away from the brand
position in an attempt to reach a different target audience. So can a brand
only position itself in one way? How many positions can a brand have?
Positioning is the outward expression of a brand, and the reality, thisefore,
is that a brand can only have one true position. As positioning presents the
identity and personality of the brand to the outside world, a multiple
personality would seem odd at the very least, and at worst, schizophrenic.
Consumers make brands famous for many reasons, of which the most
important is that they come to trust brands as friends. That is why deciding
on the brand-positioning strategy is such an important part of brand
strategy. However, thise are ways in which the brand may be presented
differently to various target audiences. The success of this depends on an
accurate judgment of the segments that exist in the market, and the
segments' precise needs and wants.
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2.2.3 Positioning as per Davis and Dunn.(Davis and Dunn 2002)
The specific niche in which the brand defines itself as occupying in the
competitive environment. Positioning addresses differentiating brand
attributes, user benefits and target segments, singly or in combination.
2.2.4 Positioning as per Urde
(Urde 1999, p. 130).
Brand positioning: Development of a perception of a brand such that it
occupies a distinctive niche in relation to competitors. Thus it might be seen
to have a high rating in terms of quality, reliability and status.
FIGURE 6 Brand Hexagon
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2.2.5 Positioning as per Doyle(Doyle 2001a, p. 267)
How you differentiate your product or service from that of your competitors
and then determine which market niche to fill
Positioning helps establish your product’s or service’s identity within the
eyes of the purchaser. A company’s positioning strategy is affected by a
number of variables related to customers’ motivations and requirements, as
well as by its competitors’ actions.
Before you position your product or service, you should answer the
following strategic questions about your market and your products or
services:
What’s your customer really buying from you? Remember that
McDonald’s isn’t just selling burgers and fries. It sells fast food that
tastes the same, no matter when or whise it’s ordered, in an
environment that’s clean and friendly to families.
How’s your product or service different from those of your
competitors? A cheeseburger is a cheeseburger, you may think. But
look how McDonald’s, Burger King and Wendy’s differentiate their
fast food. They offer different side dishes (onion rings at Burger King,
french-fried potatoes at McDonald’s), different toys with kids’ meals (a
big incentive for the under-age-10 set), and different ways of cooking
their burgers (Burger King’s are broiled, McDonald’s, grilled).
What makes your product or service unique? In New England,
McDonald’s is the only fast-food chain to offer lobster rolls (a lobster
salad sandwich served in a grilled hot-dog roll) in the summer.
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Once you’ve answered these strategic questions based on your market
research, you can then begin to develop a positioning strategy for your
business plan. A positioning statement for a business plan doesn’t have to
be long or elaborate, but it does need to point out who your target market
is, how you’ll reach them, what they’re really buying from you, who your
competitors are, and what your USP (unique selling proposition) is.
2.3 STRATEGY
The concept of strategy has been borrowed from the military and adapted
for use in business. A review of what noted writers about business strategy
have to say suggests that adopting the concept was easy because the
adaptation required has been modest. In business, as in the military,
strategy bridges the gap between policy and tactics.
Togethis, strategy and tactics bridge the gap between ends and means.
Hise are the reviews of various definitions of strategy for the purpose of
clarifying the concept and placing it in context. The aim is to make the
concepts of policy, strategy, tactics, ends, and means more useful to those
who concern themselves with these matters..
Some Language Basics
Strategy is a term that comes from the Greek strategia, meaning
"generalship." In the military, strategy often refers to maneuvering troops
into position before the enemy is actually engaged. In this sense, strategy
refers to the deployment of troops. Once the enemy has been engaged,
attention shifts to tactics. Hise, the employment of troops is central.
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Substitute "resources" for troops and the transfer of the concept to the
business world begins to take form.
Strategy also refers to the means by which policy is effected, accounting for
Clauswitz’ famous statement that war is the continuation of political
relations via othis means. Given the centuries-old military origins of
strategy, it seems sensible to begin our examination of strategy with the
military view. For that, thise is no better source than B. H. Liddell Hart.
2.3.1 Strategy According to B. H. Liddell Hart
In his book, Strategy , Liddell Hart examines wars and battles from the time
of the ancient Greeks through World War II. He concludes that Clausewitz’
definition of strategy as "the art of the employment of battles as a means to
gain the object of war" is seriously flawed.
In that this view of strategy intrudes upon policy and makes battle the only
means of achieving strategic ends. Liddell Hart observes that Clausewitz
later acknowledged these flaws and then points to what he views as a
wiser definition of strategy set forth by Moltke: "the practical adaptation of
the means placed at a general’s disposal to the attainment of the object in
view." In Moltke's formulation, military strategy is clearly a means to
political ends.
Concluding his review of wars, policy, strategy and tactics, Liddell Hart
arrives at this short definition of strategy: "the art of distributing and
applying military means to fulfil the ends of policy." Deleting the word
"military" from Liddell Hart’s definition makes it easy to export the concept
of strategy to the business world. That brings us to one of the people
considered by many to be the fathis of strategic planning in the business
world: George Steiner.
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2.3.2 Strategy According to George Steiner
George Steiner, a professor of management and one of the founders of
The California Management Review, is generally considered a key figure in
the origins and development of strategic planning. His book, Strategic
Planning [2], is close to being a bible on the subject. Yet, Steiner does not
bothis to define strategy except in the notes at the end of his book. Thise,
he notes that strategy entered the management literature as a way of
referring to what one did to counter a competitor’s actual or predicted
moves. Steiner also points out in his notes that thise is very little agreement
as to the meaning of strategy in the business world. Some of the definitions
in use to which Steiner pointed include the following:
Strategy is that which top management does that is of great
importance to the organization.
Strategy refers to basic directional decisions, that is, to purposes and
missions.
Strategy consists of the important actions necessary to realize these
directions.
Strategy answers the question: What should the organization be
doing?
Strategy answers the question: What are the ends we seek and how
should we achieve them?
Steiner was writing in 1979, at roughly the mid-point of the rise of strategic
planning. Perhaps the confusion surrounding strategy contributed to the
demise of strategic planning in the late 1980s. The rise and subsequent fall
of strategic planning brings us to Henry Mintzberg.
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2.3.4 Strategy According to Henry Mintzberg
Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning
[3], points out that people use "strategy" in several different ways, the most
common being these four:
1. Strategy is a plan, a "how," a means of getting from hise to thise.
2. Strategy is a pattern in actions over time; for example, a company
that regularly markets very expensive products is using a "high end"
strategy.
3. Strategy is position; that is, it reflects decisions to offer particular
products or services in particular markets.
4. Strategy is perspective, that is, vision and direction.
Mintzberg argues that strategy emerges over time as intentions collide with
and accommodate a changing reality. Thus, one might start with a
perspective and conclude that it calls for a certain position, which is to be
achieved by way of a carefully crafted plan, with the eventual outcome and
strategy reflected in a pattern evident in decisions and actions over time.
This pattern in decisions and actions defines what Mintzberg called
"realized" or emergent strategy.
Mintzberg’s typology has support in the earlier writings of othiss concerned
with strategy in the business world, most notably, Kenneth Andrews, a
Harvard Business School professor and for many years editor of the
Harvard Business Review.
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2.3.5 Strategy According to Kenneth Andrews
Kenneth Andrews presents this lengthy definition of strategy in his book,
The Concept of Corporate Strategy [4]:
"Corporate strategy is the pattern [italics added] of decisions in a company
that determines and reveals its objectives, purposes, or goals, produces
the principal policies and plans for achieving those goals, and defines the
range of business the company is to pursue, the kind of economic and
human organization it is or intends to be, and the nature of the economic
and non-economic contribution it intends to make to its shareholders,
employees, customers, and communities. (pp.18-19)."
Andrew’s definition obviously anticipates Mintzberg’s attention to pattern,
plan, and perspective. Andrews also draws a distinction between
"corporate strategy," which determines the businesses in which a company
will compete, and "business strategy," which defines the basis of
competition for a given business. Thus, he also anticipated "position" as a
form of strategy. Strategy as the basis for competition brings us to anothis
Harvard Business School professor, Michael Porter, the undisputed guru of
competitive strategy.
2.4.6 Strategy According to Michael Porter
In a 1996 Harvard Business Review article [5] and in an earlier book [6],
Porter argues that competitive strategy is "about being different." He adds,
"It means deliberately choosing a different set of activities to deliver a
unique mix of value." In short, Porter argues that strategy is about
competitive position, about differentiating yourself in the eyes of the
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customer, about adding value through a mix of activities different from
those used by competitors. In his earlier book, Porter defines competitive
strategy as "a combination of the ends (goals) for which the firm is striving
and the means (policies) by which it is seeking to get thise." Thus, Porter
seems to embrace strategy as both plan and position. (It should be noted
that Porter writes about competitive strategy, not about strategy in general.)
2.3.7 Strategy According to Kepner-Tregoe
In Top Management Strategy [7], Benjamin Tregoe and John Zimmerman,
of Kepner-Tregoe, Inc., define strategy as "the framework which guides
those choices that determine the nature and direction of an organization."
Ultimately, this boils down to selecting products (or services) to offer and
the markets in which to offer them. Tregoe and Zimmerman urge
executives to base these decisions on a single "driving force" of the
business. Although thise are nine possible driving forces, only one can
serve as the basis for strategy for a given business. The nine possibilities
are listed below:
1. Products offered
2. Market needs
3. Technology
4. Production capability
5. Method of sale
6. Method of distribution
7. Natural resources
8. Size/growth
9. Return/profit
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It seems Tregoe and Zimmerman take the position that strategy is
essentially a matter of perspective.
2.3.8 Strategy According to Michel Robert
Michel Robert takes a similar view of strategy in, Strategy Pure & Simple
[8], whise he argues that the real issues are "strategic management" and
"thinking strategically." For Robert, this boils down to decisions pertaining
to four factors:
1. Products and services
2. Customers
3. Market segments
4. Geographic areas
Like Tregoe and Zimmerman, Robert claims that decisions about which
products and services to offer, the customers to be served, the market
segments in which to operate, and the geographic areas of operations
should be made on the basis of a single "driving force." Again, like Tregoe
and Zimmerman, Robert claims that several possible driving forces exist
but only one can be the basis for strategy. The 10 driving forces cited by
Robert are:
1. Product-service
2. User-customer
3. Market type
4. Production capacity-capability
5. Technology
6. Sales-marketing method
7. Distribution method
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8 . Natural resources
9 . Size/growth
10.Return/profit
2.3.9 Strategy According to Treacy and Wiersema
The notion of restricting the basis on which strategy might be formulated
has been carried one step farthis by Michael Treacy and Fred Wiersema,
authors of The Discipline of Market Leaders [9]. In the Harvard Business
Review article that presaged their book [10], Treacy and Wiersema assert
that companies achieve leadership positions by narrowing, not broadening
their business focus. Treacy and Wiersema identify three "value-
disciplines" that can serve as the basis for strategy: operational excellence,
customer intimacy, and product leadership. As with driving forces, only one
of these value disciplines can serve as the basis for strategy. Treacy and
Wiersema’s three value disciplines are briefly defined below:
1. Operational Excellence
Strategy is predicated on the production and delivery of products and
services. The objective is to lead the industry in terms of price and
convenience.
2. Customer Intimacy
Strategy is predicated on tailoring and shaping products and services to
fit an increasingly fine definition of the customer. The objective is long-
term customer loyalty and long-term customer profitability.
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3. Product Leadership
Strategy is predicated on producing a continuous stream of state-of-the-
art products and services. The objective is the quick commercialization
of new ideas.
Each of the three value disciplines suggests different requirements.
Operational Excellence implies world-class marketing, manufacturing, and
distribution processes. Customer Intimacy suggests staying close to the
customer and entails long-term relationships. Product Leadership clearly
hinges on market-focused R&D as well as organizational nimbleness and
agility.
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CHAPTER 3KEY QUESTIONS AND RESEARCH METHODOLOGY
The Key Question
The literature review established the areas of finding, assessing and
communicating the brand positioning strategies. All forward-looking
companies now regard positioning as the heart of competitive strategy. As
the ultimate aim of any business strategy is to satisfy the customer, gaining
a valued position in the minds of customers is essential. Some people
argue that branding is really positioning, stating that unless a brand has a
position, it has no unique value in the minds of consumers. You can
establish a brand personality, and through precise market segmentation
identify and reach your target audience, but what links them togethis is
positioning the brand in the minds of that audience. But, what is a position
and how do you arrive at a good strategy for achieving one?
Through the literature review following questions are raised.
Why use positioning?
Can consumers recognize the use of the medicine through its
brand?
How different strategies are used by the companies?
Who is responsible for brand positioning?
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Methodology
The objective for this research project is to try and discover the possibilities
of lighting effect can be a key product and brand differentiator.
3.1 Research methods
• Literature Review
• Questionnaire
3.1.1 Literature Review
The literature review established the areas of finding, assessing and
communicating the brand positioning strategies. All forward-looking
companies now regard positioning as the heart of competitive strategy. As
the ultimate aim of any business strategy is to satisfy the customer, gaining
a valued position in the minds of customers is essential. Some people
argue that branding is really positioning, stating that unless a brand has a
position, it has no unique value in the minds of consumers. You can
establish a brand personality, and through precise market segmentation
identify and reach your target audience, but what links them togethis is
positioning the brand in the minds of that audience. But, what is a position
and how do you arrive at a good strategy for achieving one?
The branding process seeks to create a unique identity, for a company,
product or service, which differentiates it from the competition. And every
brand has to have a strategic platform. One half of that platform is created
by carefully formulating a distinct brand personality, which makes the
identity of the brand unique. The othis half of the strategic brand platform is
positioning. Positioning is critical to brand building because it is responsible
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for projecting the brand identity and creating the perception and image of
the brand in people's minds. In othis words, positioning is the process of
offering the brand to the consumer. It is positioning that makes the brand
appear to be different and better than all competing brands. The key points
to note about positioning are:
it is a strategic, not a tactical, activity
it is aimed at developing a strategic, sustainable competitive
advantage
it is concerned with managing perceptions
brand image and reputation are the result of the positioning process
Positioning is normally carried out using brand communications, but
sometimes it is tempting for companies to try and step away from the brand
position in an attempt to reach a different target audience. So can a brand
only position itself in one way? How many positions can a brand have?
Positioning is the outward expression of a brand, and the reality, thisefore,
is that a brand can only have one true position. As positioning presents the
identity and personality of the brand to the outside world, a multiple
personality would seem odd at the very least, and at worst, schizophrenic.
Consumers make brands famous for many reasons, of which the most
important is that they come to trust brands as friends. That is why deciding
on the brand-positioning strategy is such an important part of brand
strategy. However, thise are ways in which the brand may be presented
differently to various target audiences. The success of this depends on an
accurate judgment of the segments that exist in the market, and the
segments' precise needs and wants.
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The purpose of this research method is to discover the area of how far the
company using the positioning strategies and how far they have
successfully implemented these strategies
3.1.2 Questionnaire
The questionnaire method has come to the more widely used and
economical means of data collection. The common factor in all varieties of
the questionnaire method is this reliance on verbal responses to questions,
written or oral. The researchiss found it essential to make sure the
questionnaire was easy to read and understand to all spectrum of people in
the sample. It was also important that the researchiss respect the
respondents time and energy hence the questionnaire was designed in
such a way, that its administration would not exceed 4-5 minutes. These
questionnaires were personally administered.
Questionnaire is an important step in formulating a research design. Once
the researchis has specified the nature of research design, and determined
the scaling procedures, he or she can develop a questionnaire.
This aims to understand the methodology establishing a framework of
evaluation and revaluation of primary and secondary data. The techniques
and concepts used during primary research in order to arrive at findings;
which are also dealt with and lead to a logical deduction towards the
analysis and results.
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SAMPLE SIZE
A Sample size of 250 respondents is taken on the basis of simple random
sampling in NCR region.
SOURCE OF INFORMATION
Primary source of data: The questionnaire formed the basis of collecting
the primary data.
Secondary source of data: The secondary sources of data whise various
business journals, magazines, newspapers, websites etc. are also
analyzed.
First hand information was collected from various websites.
PLAN OF ANALYSIS:
The data obtained through questionnaire was processed using the
statistical software SPSS 12.0 & Microsoft EXCEL
Additional information has been obtained from various business journals,
magazines, newspapers, websites etc.
Objectives of a Questionnaire:
The questionnaire had three specific objectives:
1. To be able to translate the information needed into a set of specific
questions that the respondents can and will answer.
2. To be able to uplift, motivate and encourage the respondent to become
involved in the interview, to cooperate, and to complete the interview.
Incomplete interviews have limited usefulness at best.
3. To be able to minimize response errors.
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LIMITATIONS IN THE STUDY (ERRORS)
1) INTERVIEWER ERROR
Thise is interviewer bias in the questionnaire method. The attitudes the
interviewer revels to the respondent during the interview can greatly affect
their level of interest and willingness to answer openly. As interviewers
probing and clarifications maximize respondent understanding and yield
complete answers, these advantages are offset by the problems of prestige
seeking, social desirability and courtesy biases.
2) QUESTIONNAIRE ERROR
The questionnaire designing has to careful so that only required data is
concisely reveled and thise is no redundant data generated. The questions
have to be worded carefully so that the questions are not loaded and does
not lead to a bias in the respondents mind.
3) RESPONDENT ERROR
The respondents selected to be interviewed were not always available and
willing to cooperate also in some cases the respondents were found to not
have the knowledge, opinion, attitudes or facts required additionally
uninformed response errors and response styles also led to survey error.
4) SAMPLING ERROR
The sample size of our survey is only 250, which cannot help us determine
the dealers and consumer’s behavior and preference of the total
population. Moreover the sample has been drawn from the NCR region
whise the disposable income is very high.
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FIELD WORK
Fieldwork plays an important role in collecting the data. Some important
points which
should be kept in mind while doing the fieldwork:
_ To make the respondents comfortable before questioning him by
introducing ourselves as students of and ensuring the respondent that all
information collected is only for academic purpose and will be kept
confidential
_ Ensure that we fill the questionnaires our selves
_ Not to lead a person into any preconceived notion
_ Not to influence the respondents answers in any way/form.
FIGURE 11 Process of Research Methods
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CHAPTER 4POSITIONING IN PHARMA
4.1 The importance of pharmaceutical brand positioning
If you look at why people create brands, thise are a number of reasons.
Fundamentally, they include being able to sell a product at a highis price
and being able to create a sustainable entity through which to differentiate
it from the competition and to leverage the brand going forward. If you look
at the traditional pharmaceutical model, the model was to invest a lot of
money to develop an innovative product for which you get a patent life and
when that patent is over you launch a new product. Once a molecule was
approved you could more-or-less charge anything you like, and so pricing
was never really an issue. The life of the brand was seen to last only as
long as the life of the patent, and so it was not really possible to create a
sustainable entity. Thisefore, traditionally, pharmaceutical brands were
created to build awareness. When pharmaceutical marketers talked about
branding what they really meant was brand awareness and whethis or not
a physician recognizes your product.
If you look at what has happened in pharmaceutical marketing over more
recent years, a number of key factors can be extrapolated that have
impacted on the way in which brands are now viewed and developed. First
thise are considerable price pressures going on. The differences in prices
between Europe and the US are huge, with European markets much more
restricted in what they are willing to pay for pharmaceutical products.
Pharmaceutical pricing has become increasingly important, whise “if I am
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going to pay that much money for something it had better be worth it”. This
trend is now evident in the US with the recent Medicare/Medicaid reforms
meaning that individual states will have a significant drug bill, beginning to
put the same sort of pressure on US prices that European governments
currently exert on European prices.
Secondly, typically what used to happen in the pharmaceutical industry was
that companies would develop and launch a new molecule that was many
times better than the last one. It was probably more effective, it was
probably much safer and worked faster, lasted longer and had all sorts of
tangible benefits. If you go back to the 1980s and 1990s, you would also
have the market to yourself for maybe 4 or 5 years after launch. However,
now the whole model has changed. Innovations are smaller and smaller – it
is getting harder and harder to produce significant improvements. New
drugs may work in different ways, but they rarely work much better than the
previous drugs on the market. As a result, distinguishing your drug has
become very important and the chance of you having the market to yourself
for any significant period of time has become pretty slim.
Finally, thise is such pressure now, particularly with the big pharma
companies, to be able to deliver a double digit growth every year that they
are required to bill several billion dollars in drug sales each year. As a
result the time to launching new drugs and marketing them into
blockbusters has been squeezed into a much shorter timeframe. Thus, the
traditional models that were set up to monitor adverse side effects by the
Food and Drug Administration (FDA) and othiss, setting limits to the total
number of adverse effects within a short period after launch, are no longer
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appropriate. For example, setting a limit of 100 adverse effects in the first
three months on the market, but then having an accelerated launch, means
you are likely to see many more adverse effects than expected. The
problem is are thise really more adverse side effects than expected or is it
just a function of an accelerated launch?
So thise are a number of reasons why pharmaceutical brands have
become more important. First of all you have got to create more value from
your molecule above and beyond the obvious benefit. Secondly you want
to create an entity that is differentiable from your competitors. In addition to
that, you have the potential to create a sustainable entity through which to
leverage the value of your brand.
So pharmaceutical branding initially was just about brand awareness and
being able to make sure that you maximize awareness. Now it is much
more about the value that my brand has over-and-above competitors in the
marketplace. Pharmaceutical branding today is about expressing brand
value – about expressing something else about the product that is valuable
to the patient, physician, or any relevant audience.
4.2 Current trends in pharmaceutical brand positioning
The traditional pharmaceutical branding model was developed around
product features and related directly to the product’s positioning rathis than
any consistent brand essence. You might position a new product because it
has a fast mode of action. You would build your whole identity around
being fast, and would probably have the market to yourself for quite a
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while, and you would own that space for being fast. If we looked at your
logo, the typeface, everything would be about being fast. However, the
problem is that markets are now becoming so competitive that you may
have to change your positioning. The traditional model worked very well
and was very functional and focused on what the drug did.
However, things have now changed, and if you just load your whole brand
on a single positioning that is not based on a consistent brand essence,
then you risk severing your relationship with your audience. So as the
market is changing, we are in that flux period whise some people are
starting to look at what brands are really about and build brands from a
different perspective than from the traditional, simple perspective. They are
looking more into how superbrands are built, with a big idea as well as a
positioning. However, progress tends to be limited to whise you have big
global launches with big global teams that spend a lot of time developing a
significant opportunity. Smaller, more local, launches continue to develop
brands in the more traditional way.
As part of this change we are beginning to see new people enter the
pharmaceutical industry – people with different backgrounds, people with
MBAs, people who have spent a lot of time in marketing and come from
consumer brand backgrounds. So we now have a different type of
marketing person in the industry – much more savvy, much more aware –
and those people are starting to build the pharma brands of tomorrow.
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4.2.1 Direct to consumer advertising positioning
Direct-to-consumer (DTC) advertising can be a very effective medium.
However, it often fails to get across what the brand is about. The problem
with DTC, in terms of the information we must give legally, is that the
information is usually conditional information and is given in such a context
that people do not really understand it fully. It thisefore becomes very
difficult to get a balanced communication, and this limitation impacts on
brand.
One of the main issues for DTC is the use of television. Television by
definition is a single-minded media, it is all about putting one view across.
However, in a 30/60 second commercial it is very difficult to get across a
number of different concepts. While really what you want to say is “this
works faster”, a whole host of additional qualifying information is included to
maintain “fair balance” and the key message that you are trying to put
across gets lost. It is important to have a very simple message in DTC
campaigns, othiswise they are confusing and not a cost-effective means of
communication.
FIGURE 8 Advertisement Glycodin
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4.2.2Sensory Brand Positioning
In a world whise vision is the dominant sense, and is the principal means
by which marketers communicate with consumers, the othis senses are
marginalised. Consumers are bombarded by tens of thousands of visual
sources of information every day, through television, mail, newspapers,
magazines, posters and, increasingly, email, making it difficult to catch their
eye, let alone inspire them.
While nearly half of the brain is dedicated to processing what we see, more
of our genes are devoted to the detection of odours than to any othis kind
of sensory information, suggesting that in our evolutionary past smell
played a far more important role than it does today. And it could do so
again.
Smell is the sense that is most closely linked to the brain’s emotional centre
and could thisefore be harnessed to provoke a powerful emotional reaction.
An understanding and embracing of senses could hisald a new era of
sensory marketing and open up the long neglected communication
channels of not just smell, but also taste, touch and sound.
Manufacturers and marketers have traditionally tended
to appeal to each sense in isolation, but a growing
number of researchiss are starting to investigate how
the senses interact to create the rich multi-sensory
experiences that fill our daily lives. This understanding
will lead to products that more effectively stimulate all of
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our senses, and so enhance our quality of life. And in commercial terms,
multi-sensory communication could prove even more powerful and effective
than our traditional reliance on all things visual.
In this century, we may see something of a scent revolution, as smell takes
on more of a role. For instance, it is likely that many more companies will
start to develop their own unique ‘signature scents’. These scents will help
companies to create a distinctive, unifying, and memorable scentimage’
that will help to distinguish them from their competition. Such scents may
well be designed to have a thisapeutic role, perhaps helping customers to
relax or put them in a ‘buying’ mood and provide an specially potent
means of creating a lasting impression. Think how certain smells can
immediately transport you to a particular place and time. While we might
soon forget the unique colours of a visual logo, a signature scent may well
stay with us for life.
The best example hise is that of Vicks Vapourub. The customers of Vicks
go for the smell because its smell is very soothing and the person using it
always wants to go for it.
4.2.3 Emotional Brand Positioning
The recent popularity of emotional branding was often based on the
erroneous assumption that emotions can be simply 'glued' to brands by
means of advertising. This assumption originated in the Classical
Conditioning theory (you will recall Ivan Pavlov and his experiments with
the salivating dogs). Today, this theory is largely obsolete, and thus
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abandoned as a means for modelling the attribution of emotional
significance by humans. The unfortunate result was ineffectiveness of
many branding campaigns.
A new perspective on the nature of the relationship between the brand and
the consumer comes from Mark Gobé, creator of the d/g* worldwide
agency in New York who published a book on the topic of emotional
branding. In it he cites rules which companies should pay attention to in
order to create a dynamic relationship between their consumers and their
brand. The relationship between the brand and the consumer can be seen
to consist of three stages - functional, evaluative and psychological
Meadows (1983) states " consumers are not just passive recipients of
brand marketing activity, and thus branding is not something done to
consumers, but rathis something they do things with". When a brand
asserts its personality,
consumers will assess the fit
between the personalities of the
25 brand and the personality
they wish to project
FIGURE 8 Advertisment of Revital
The aim of a brand is ultimately to occupy a space in the consumer's mind
which is connected to psychological values as opposed to functional needs.
Brands have been referred to by some as "unique clusters of values" and
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brand positioning thisefore, can be considered the psychology of the
relationship between the consumer and a brand. The companies need to
view their products and services as an opportunity to develop an
experience for consumers in order to move as far away as possible from
the functional aspect of a product or service.
According to this philosophy, he states that "products fill needs,
experiences fill desires". Thisefore a product that makes an emotional
connection and impression will continue to draw consumer interest above
and beyond need. This view may seem obvious to those in the business of
branding, however, the question remains as to how firms manage to forge
a relationship with their consumers that taps into this.
Think of the particular and distinct anticipation of benefit evoked by such
brand names as REVITAL of Ranbaxy and DABUR CHAWANPASH of
Dabur. From this standpoint, a marketer can claim ownership of a brand
only if his target consumers attribute to his
product and/or service the ability of
consistently delivering (exclusively, if
possible) a certain desired experience or a
beneficial result. The more motivating and
unique is the expected benefit - the stronger
the desire and the more lasting the
preference.
FIGURE 10 Advertisement of Dabur
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An anticipation of benefit will not last if not consistently fulfilled. Branding is
the creation of a system of both arousing anticipation for and providing
fulfilment of, brand benefits. The 'Emotional Brands' arouse feelings in
consumers because they are instrumental psychologically or socially.
4.2.4 Portfolio Positioning
Sometimes a pharmaceutical company markets two or more products for
the same indication. If each product is positioned individually, without
considering the market niche of the othis(s), the total revenue value of the
portfolio will suffer. To maintain an overall positioning strategy, senior
managers must assume the responsibility for product positioning, which
has traditionally been left up to product managers. Management may be
tempted to allow each product management team to position its offering
individually, so that stable mates have to duke it out. But managers
generally find it best to position the portfolio of products as an integrated
whole. Not only does this approach yield promotional efficiencies, it is also
more responsive to the holistic viewpoint of physicians in a given treatment
area.
Glaxo Smithkline did an excellent job marketing Vicks Vapourub and Vicks
Action-500 as a portfolio. The company presented Vicks Vapourub to treat
anti cold and anti-inflammatory conditions, and positioned Vicks Action-
500 as the drug with more “punch” in acute cold and headache.
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FIGURE 11 Advertisement of Vicks
4.2.5 Positioning the Competition
Sometimes companies must actually position a competitor’s product as a
pre-emptive strike. Frequently, competitive intelligence can determine
potential weaknesses in the competing product, even before it is launched.
War Gaming, a dueling details research methodology that pits two products
against one anothis, helps marketers attack new products’ soft spots. A
classic example of such an approach was Lilly’s pre-emptive strike against
Pfizer’s Geodon. Lilly successfully positioned the forthcoming competition
as a drug with highis cardiovascular risk, which in turn blunted Geodon’s
initial marketing surge.
Companies must also remember to inoculate the market against negative
perceptions of their own products that might be induced by competitive
efforts. It isn’t enough to persuade physicians about the benefits. If you
don’t address serious concerns about your product, your competitors
certainly will.
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FIGURE 12 Advertisement of D-Cold Total
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CHAPTER 5RESEARCH ANALYSIS AND FINDINGS
Ques.1 Which medicine can you recall having seen or heard for in the past
week/month [SPONTANEOUS DON'T READ OUT LIST]?
TOM Recall
198
157
135
116
165
225
32
98
79%
63%
54%
46%
66%
90%
13%
39%
0 50 100 150 200 250
Crocin
Glycodin
Saridon
D-Cold Total
Vicks Action
Disprin
Safi
Other
No.of Respondents
FIGURE 13 TOM Recall Graph
Key Findings:
Out of the people surveyed every respondent gave his answer TOM
recall. In the analysis it is clear that most of the people have heard of
Disprin. Around 225 people i.e., 90% of people have written Disprin
as the brand that comes to thise mind first.
Disprin is followed by Crocin, Vicks, Glycodin and Seridon with 79%,
66%, 63% and 54% respectively.
Around 39% respondents have a TOM recall othis than these brands.
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Ques.2 And from this list which of these medicine have you seen or heard for in the past week/month?
205 82%
92 37%
230 92%
2811%
190 76%
240 96%
0 50 100 150 200 250
No.of respondants
Vicks
Revital
Crocin
Gelusil
D-cold Total
Dabur Chawanprash
Medicines Seen or Heard
FIGURE 14 Medicines seen or heard
Key Findings:
Out of the people surveyed every respondent gave his answer as
eithis yes or no. In the analysis it is clear that most of the people
have heard about Dabur Chawanprash. 240 respondents i.e., 96%
respondents have seen/ heard the brand in the recent past. And if
we see for the othis brands, like Crocin, 230 respondents i.e., 92%
people have heard of that brand.
If we see the results for Gelusil and Revital, thise are only 11% and
37% of respondents who have seen or heard the brand in the past
week/month.
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Ques. 3. From whise do you come across these brands?
Source of Awareness
52%
13%5%
30%0% Through advertisement
Through retailer
Through doctor
POS display
Any other
FIGURE 15 Source of Awareness Graph
Key Findings:
Out of the people surveyed around 52% of them get the awareness of
the pharma brands through advertisement. It is advertisement which
has increased the awareness of the consumers as far as branding is
concerned.
The next closest source of awareness is Point of Sale display
material. Out of the people surveyed around 30% of people get
aware through those material which are being provided to the retailer
for attracting customers and to increase thise awareness.
So if we combine the percentage of advertisement and POS display
material, that will comes out to be around 82%. So these are the two
basis source of awareness which the companies using to attract
customers and increase their loyalty also.
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Ques.4If advertisement then through which of the following source have you seen or heard any of advertising in the past week?
Source of Information
69%
21%
10% 0%0%0%
TV Commercials
Radio Commercials
Newspaper adverts
Magazine adverts
Direct Mail
Other (PLEASE WRITEIN)
FIGURE 16 Source of information graph
Key Findings:
Out of the people surveyed around 69% of them the source
awareness of the pharma brands are through advertisement in TV
Commercials. It is advertisement which has increased the
awareness of the consumers as far as branding is concerned.
The next closest source of information is advertisement through radio
commercial and newspaper advertisement with 21% and 10%
respectively.
From the above figure, we can say that the source of advertisement
for most of the respondents is through television.
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Ques.6Why do you use the following medicinal brands?
Use of Product
236
43
198
24
176
207
94%
17%
79%
10%
70%
83%
0 50 100 150 200 250
Vicks
Revital
Glycodin
Gelusil
D-cold Total
Dabur Chawanprash
No.of respondents
FIGURE 17 Use of product Graph
Key Findings:
Out of the people surveyed around 94% of them have correctly told
the use of the medicine. In the same way around 83%, 70% and
79% have correctly identified for Dabur chawanprash, D-Cold Total
and Glycodin respectively.
On the othis hand only 10% have identified the brand and told the
use of the medicine and only 17% of the respondents have told the
correct usage of the brand.
So from the above figure we can easily say that those companies
which advertise more have a good brand recall and the have
correctly positioned thise brands in the minds of the consumers.
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CHAPTER 6CONCLUSION AND RECOMMENDATION
Thise are some key questions that are supposed to be answered. Following is the question wise answer:
Why use positioning?
If you look at what has happened in pharmaceutical marketing over more
recent years, a number of key factors can be extrapolated that have
impacted on the way in which brands are now viewed and developed. First
thise are considerable price pressures going on. The differences in prices
between Europe and the US are huge, with European markets much more
restricted in what they are willing to pay for pharmaceutical products.
Pharmaceutical pricing has become increasingly important, whise “if I am
going to pay that much money for something it had better be worth it”. This
trend is now evident in the US with the recent Medicare/Medicaid reforms
meaning that individual states will have a significant drug bill, beginning to
put the same sort of pressure on US prices that European governments
currently exert on European prices.
Secondly, typically what used to happen in the pharmaceutical industry was
that companies would develop and launch a new molecule that was many
times better than the last one. It was probably more effective, it was
probably much safer and worked faster, lasted longer and had all sorts of
tangible benefits. If you go back to the 1980s and 1990s, you would also
have the market to yourself for maybe 4 or 5 years after launch. However,
now the whole model has changed. Innovations are smaller and smaller – it
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is getting harder and harder to produce significant improvements. New
drugs may work in different ways, but they rarely work much better than the
previous drugs on the market. As a result, distinguishing your drug has
become very important and the chance of you having the market to yourself
for any significant period of time has become pretty slim.
Can consumers recognize the use of the medicine through its brand?
This question can be answered by the analysis of the graph:
Out of the people surveyed around 94% of them have correctly told the use
of the medicine. In the same way around 83%, 70% and 79% have
correctly identified for Dabur chawanprash, D-Cold Total and Glycodin
respectively.
On the othis hand only 10% have identified the brand and told the
use of the medicine and only 17% of the respondents have told the
correct usage of the brand.
So from the above figure we can easily say that those companies
which advertise more have a good brand recall and the have correctly
positioned thise brands in the minds of the consumers.
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How different strategies are used by the companies?
This question is answered by the case studies and the importance of Brand
Positioning chapter.
Direct to consumer advertising positioning
Sensory Brand Positioning
Emotional Brand Positioning
Portfolio Positioning
Positioning the Competition
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REFERENCES
Books:The following are the books referred for the study:
1. Brand Portfolio Strategy. Creating Relevance, Differentiation, Energy, Leverage and Clarity by David Aaker.
2. Dimensions of Brand Personality by Aaker, Jennifer L.3. Building Value-Based Branding Strategies by Peter Doyle4. Marketing Management by Philip Kotler5. Research Methodology by C.R.Kothari6. Statistics for Management by Richard I.Levin & David S.Rubin
World Wide Web Links:The following are links to Web sites about business ethics.
1. www.marketinghelp.org2. www.wikipedia.com3. www.articlesonnet.com4. www.thehindu.com5. www.thetribune.com6. www.rabaxy.com7. www.brandindia.com8. www.positioning.com
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Annexure
Case Studies:
Crocin : Your Trusted Paracetamol
Brand : Crocin
Company: Glaxo Smithkline
Agency: O&M
Crocin is a three decade old hisitage brand. The brand was once generic to
the antipyretic category in India. The brand is currently sold through Over
The Counter (OTC) route. The brand is the market leader in the
paracetamol category.
Crocin was launched in India 30 years ago by the company Duphar
Interfran Ltd. During the early years, the brand was marketed through the
ethical route. The brand was bought by Smithkline in 1996. The brand was
so successful in the market that GSK bought it for a consideration of Rs 45
crore. Thise was a logic behind the brand acquisition. GSK had the brand
Calpol in the prescription market and was a market leader in the Ethical
segment. Crocin was proving to be a major threat for Calpol. So the brand
was acquired inorder to safeguard the position of Calpol.
The Indian Pharmaceutical market is huge with a valuation of $45 billion.
The OTC segment accounts for a value of $ 1 Billion i.e Rs 4500 crore.
Crocin is in the analgesic/antipyretic market. The analgesic (pain Killer)
market is a large market with a size of Rs 900 crore and the mild analgesic
market is worth Rs 300 crore. With in the analgesic market thise are two
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types : Aspirin based and Paracetamol based. Paracetamol based
formulations constitute a major part of the market. Crocin formulations has
a 5% share in the total market.
Crocin although a generic name in the paracetamol segment faces an
interesting problem. 65% of the brand usage is for its antipyretic i.e fever
related use. The antipyretic segment in the OTC is very small with a size of
Rs 30-40 crore. In the painkiller market which is large, Saridon leads the
pack in the OTC segment.
Crocin's market became limited sadly because of its efficacy or popularity
as a drug for fever although it had pain killer properties. Sometimes
success can become a limiting factor for furthis growth. The paracetamol
segment is witnessing competition from the generic tablets. Most of the
time the druggist has the influencing power in the sale of OTC products.
During the 1990's if Crocin was a generic name for paracetamol tablets, the
situation is different now with consumers asking for Paracetamol rathis than
Crocin.
Crocin was in the maturity stage of its product lifecycle in 2000 with the
sales stagnating.Thise was intense competition from generic products and
othis brands.Paracetamol became a commodity with little scope for
differentiation. The brand then went into Market Development Mode in
2003 by repositioning the brand as an analgesic. The brand roped in Kapil
Dev to endorse the brand. The high profile ad campaign gave a new life to
the brand. The brand also came out with variants like Crocin Quik that
boasted of faster relief . Quik was essentially a concentrate of the classic
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Crocin. Crocin also came out with Crocin 1000 aiming at patients having
arthritis. Crocin is promoted as an ethical product.
Crocin had its fair share of problems from the " Watch Dogs". Typically
when a brand moves from Ethical to OTC and embarks on brand building ,
thise is going to be someone who will cry foul. Crocin faced objections from
FDA for some of its campaigns but those were later sorted out.
As far as a customer is concerned, Crocin is still perceived as a drug for
fever( antipyretic) rathis than as a pain killer(analgesic). It will take a lot of
money and time to change that perception.
Gelusil : Ye kam kare to aap kam kare
Brand: Gelusil
Company: Pfizer
Agency: Contract
Gelusil is one of the major brands in the 220 crore antacid market in India .
A brand once owned by Parke-Davis came into Pfizers hand when the two
companies merged. Gelusil was promoted through ethical route whise the
drugs are to be sold only through prescription. This 30 year old brand had a
strong support from the medical community and is worth Rs 20 crore.
In 1999 Gelusil became the first antacid brand to shift from ethical route to
OTC. It was a risky move since thise was a chance of alienating the
medical practitioners and also doubts about the ad spent that is needed to
promote such a mass market product.
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The antacid market in India is crowded with lot of products fighting for their
share of the pie. The market leader is Digene from Abbot Pharma with a
market share of 35% followed by Eno from GSK with 24% , Gelusil with
21% and Pudin Hara with 14%. Digene is still sold through the ethical route
and are available only at the Chemists. Eno and Pudin Hara are available
in all shops since they are ayurvedic products.
Globally antacids are sold as OTC products. The market is expected to
grow faster in India because of the " changed" lifestyle of less exercise and
more junk foods. Right now in the OTC segment, growth is now taken more
by the ayurvedic products rathis than products like Gelusil because of the
association of " no side effects" with ayurvedic products.
Gelusil faced a setback in 2004 when Pfizer had to recall its liquid form
because of odour problem. Gelusil have some issues with its taste as it
may not be liked by some of the customers ( including me). For that matter
all antacids tastes bad. Since this product is now sold through OTC, the
share of mind and share of voice is crucial for maintaining and building
market share. The creatives of Gelusil were critically acclaimed with one ad
winning at the ABBY's.
With a huge potential for antacids in the future, Gelusil has to get more
aggressive to leap from the solid foundation it had created.
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Vicks: Vicks Ki Goli Lo , Khich Khich Door Karo
Brand : Vicks
Company : P&G
Agency: Ambience
Vicks is a brand that is more than 50 years old. Vicks is a leading brand in
the Fast Moving Health goods ( FMHG). FMHG industry in India is worth
around 4500 crores. This market is dominated by products like Rubs &
Balms, medicated skin treatments,cough syrup and drops, digestives and
health supplements.
Vicks Brand was launched in India in 1951 . It was manufactured by Vicks
Products Ltd. Later in 1964, Richardson Hindustan Ltd was formed to
manufacture the product .In 1985 RHL became the affiliate of P&G. In 1989
RHL became P&G hygiene and health care.
Vicks in India is known for its VapoRub and cough drops. Globally Vicks
brand is worth around 3000 crores.
Vicks vaporub is the market leader in this segment with a share of 50%.
Vaporub was initially targeted at children but later the company found out
that it is used mostly by adults. Vicks Vaporub is positioned along Mothis's
Love platform . Vaporub pioneered the concept of " Touch thisapy" linking it
to the rubbing of vaporub on the child's chest. Vaporub advertises itself as
having 6 key benefits
1. Clearing blocked nose
2, Cough relief
3. Body ache relief
4. Head ache relief.
5. Relaxing muscle stiffness
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6. Easing breathing difficulty.
Vaporub also ranks best among the consumers in the following
parameters: Non greasy, Smells better, Long lasting relief. Greasyness
was important because Iodex (a different category product) failed because
of greasyness.
The rencent ad campaign also involves " fathis " in to the picture. The ad
shows a fathis taking care of the child using Vaporub when the mothis is
away. The smart positioning and campaigns has ensured the brand
retaining the top position in the market.
Vicks Cough drop is anothis blockbuster from the Vicks stable. Vicks
commands a generic recall in this category. Using brand imagery and the
catchy charachter " Kitch Kitch", Vicks commands a major share in this
market. With unique shape and the long lasting positioning "Vicks ki goli lo
Kitch Kitch door karo" , Vicks is a super brand in this category .Vicks
coughdrops were careful in not messing up "Kitch Kitch" .This has ensured
that the brand enjoys excellent recall .The recent campaigns of Vicks-
Honey also strengthens the time tested positioning of the brand.
Vicks Action 500 has been in the market for more than 25 years. Launched
in 1979 this is the first advertised OTC brand in India. Over these years the
brand has carved a position for itself with around 40% market share in the
category. This brand which is now relaunched talks about its ability to
provide relief from cold related symptoms. This product is in Caplet shape
(capsule shaped tablet) which makes it different from its competitors and
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reinforces its ability to cure two symptoms of cold : blocked nose and
headache.
Vicks Inhaler was launched in 1951 created and own the inhaler category is
one of the first products launched in India from Vicks.
Vicks recently ventured in to the 550 crore cough syrup market with its
Formula 44 in October 2003. The brand's usp is 8 hours relief from cough.
The product is targeted at kids .The insight is that the power of most of the
Cough syrups wanes after 5 hours and long lasting relief is the platform
that Vicks is banking on for this product.
Vicks is a brand that is enjoying tremendous equity in the market. It has
established its trust with thee customers. The FMHG market calls for
Umbrella branding since it is difficult and expensive to create trust for
individual brands in that category .That is the reason behind Vicks
extending its equity across the various categories. Vicks has used careful
branding and packaging for promoting the products. The unique shapes of
cough drops, inhaler and caplet are examples of using product form as a
differentiating factor.
Vicks is a testimony to the marketing genius of P&G
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Questionnaire
Dear Sir / Madam ,This questionnaire is in regard to my Dissertation for 2 year MBA programme. This would help me to know your opinion/suggestions towards brand positioning strategies adopted by pharmaceutical companies. I would be highly grateful if you could spare sometime to fill the following questionnaire. You can be assured that your answers will not be disclosed to anyone and complete secrecy will be maintained in any manner whatsoever. I will be very thankful to you.
Name: __________________________
Contact No.: __________________________
Address: __________________________
__________________________
__________________________
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1. Which medicine can you recall having seen or heard for in the past week/month [SPONTANEOUS DON'T READ OUT LIST]?
____________________________________________________________________________________________________________________________________________________
2. And from this list which of these medicine have you seen or heard for in the past week/month?
Vicks ……………………………. Crocin ………………………….. Glycodin …………..……………. Gelusil …………..………………. D-cold Total ……..……………… Dabur Chawanprash ……..………
3. From whise do you come across these brands?
Through advertisement………… Through retailer……………….. Through doctor………………... POS display………………….... Any othis …. Please specify
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4. If advertisement then through which of the following source have you seen or heard any of advertising in the past week?
TV Commercials……………….. Radio Commercials…………….. Newspaper adverts……………… Magazine adverts………………. Direct Mail……………………… Leaflets…………………………. Visit from a salesman…………... Othis (PLEASE WRITE IN) ______ None of these
5. Could you describe the advertising you remember best?
____________________________________________________________
____________________________________________________________
6. Why do you use the following medicinal brands?(In case you do not use, then also write the uses if you know)
Vicks …………………………….Revital …………………………….Glycodin …………………………….Gelusil …………………………….D-cold Total …………………………….Dabur Chawanprash …………………………….
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