brand concepts & strategy

Brand Concepts & StrategyIGTC 2003

Structure

• What is a Brand?…. Product vs Brand• Brand Identity … Developing a Brand Framework• Brand Strategies … Extension & Revitalization

What is a Brand?

Essence of a Brand : Aaker

• “A company’s brand is the primary source of its competitive advantage and a valuable strategic asset.”

• “The challenge for all brands is that they have distinct clear image that matters to customers and truly differentiates from the rest.”

• The key step is to create a broad band vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed.

Product vs Brand

• A product is made in a factory… A Brand is bought by the customer.

• A Product can be copied… A brand is unique

• A Product is quickly outdated…A Brand is Timeless

Product vs BrandBrands differentiate Products• Fairness Creams: Fair & Lovely vs Ponds Dream

Fairness• Coconut Hair Oil: Parachute vs Dabur Vatika• Cola: Coca Cola vs Pepsi

Products largely undifferentiated: Product choice function of Convenience / Availability / Price.• Petrol : BPCL vs IBP vs ….• ATM : HDFC vs HSBC vs ….• Mineral Water : Bisleri vs Bailey vs Kinley …

Product Levels : Kotler

• Core Product: Core Benefit or service

• Tangible Product: Brand Name, Packaging, Features, Quality, Styling

• Augmented Product: After sale service, Installation, Delivery & credit, Warranty

Eg: Consumer Goods … Products extending Services … Asian Paints: Painting Homes; Surf: Laundry

Brand Identity

Brand Image vs Brand Associations vs Brand Personality

Brand Association

Personality Based on:• Expression of self or User Imagery

Eg: Nike – Achivement Performance• User/Customer – Brand Relationship Eg: McDonalds- Fun Family• Functional Benefit – Association Based Eg: Gujarat Ambuja- Strong

Man

Brand Image

Brand Personality

Identity vs Image

Consumer Research

• Brand Communication•Activities

Image:• Consumer Perception: What is vs What can be• Awed by Competition : Problem of Imitating• Desire to Impress: Lacks genuineness• Caught in the Refection: Unable to see True self

Brand Image

Consumer

Market, Competition, Media

Brand IdentityNoise

Strategic Vision, Business Needs

Corporate

What is Brand Identity?

• Simply put: What does a Brand stand for?• Heart and Soul of the Brand: Brand Constitution, Brand

Framework• Provides Strategic Vision – Direction, meaning, purpose to the

brand• Combination of Brand Vision, Purpose, Values & Associations• “… is a set of brand associations that the brand strategist

aspires to create or maintain. These associations represent what the Brand stands for and imply a promise to customers from the organization members” - Aaker

What is not Brand Identity : Traps• Brand Image Trap: Eg: Denim: Macho

– Based on consumer perception. Tactical, Reactive– Lacks Strategic Future Perspective

• Brand Position Trap: Eg: Elle 18 : Teenagers– Based on Competitive Advantage. Relates to current market scenario,

consumer needs. Communication captures only a particular aspect of the Brand

– Limited Scope. May not be applicable in the Future• External Perspective Trap: Eg: Tata: Trusted Quality

– Customer centric, lacks employee buy-in • Product –Attribute Fixation Trap: Eg: Britannia Biscuits

– Based on Product Attributes, Product Benefits– Limits the expansion of the Brand... Open to threat as it equates the

Product to the Brand

Brand ConceptsBrand Vision

Brand Identity

Brand Proposition

Brand Positioning

Brand Communication

Product Portfolio

Brand Image , Personalities, Associations

BRANDBrand Framework

Product Framework

PRODUCT/S

What it does?

RECEIVER

SENDER

How it does?

How? – Strategic Brand Analysis

Processes: Semiotics- Image Study: Factor Analysis- Attribute Rating, Perceptual Map, Cluster Analysis- Profiling

Consumer

Company Competitor

Image Needs Trends

Performance

Image Heritage

SWOTRelationships

Image Positioning

CommunicationSWOT

Brand Identity Systems: AakerBrand as an ORGANISATION

Extended IdentityBrand as

Brand asPRODUCT

PERSON (Peripheral Support Values)

Brand as Symbol

SUPPPORT

VALUE PROPOSITIONFunctional + Emotional + Self Expressive Benefits

Core Identity

Efficient Service, Hygienic, Clean , Smart

Service

American Ronald

Fun

Ronald, Happy Meals, Parties

Tasty, VFM Burgers, Fries & DrinksCreate environment to provide fun &

entertainment For family and kids

VFM, Hygiene, Happy Family

McDonald’s Brand Identity System

VFM, Tasty, Quality, Burgers & Fries,

Happy Meal Promos

Fun, Happy, Friendly, Family, Warm, Outgoing

Ronald, Happy Meals.Clean Environment, Efficient Srvice

• Guides Brand Strategy• Strengthens Brand Memorability, Communication,

Associations• Provides Brand Extension possibilities• Assists Portfolio Reorganization• Improves Competitive Advantage• Adds Value to organization – Market Value• Gives a sense of direction to employee

Why ? – Leveraging Brand Identity

When? – Change vs Consistency

• Need to change Identity Position Communication:– Poorly Conceived Mismatch: Digen Verma– Obsolete: Philips… Innovation– Shrinking Audience: Ponds … Oil Control– Not Contemporary: Lakme…Fashion– Fatigue: Britannia… Health & Nutrition… Intelligence

Need For Consistency

• Brand Building takes time:– Amul girl & Utterly Butterly Delicious Amul– Marlbro Rough Cowboy

• Results in Cost EfficienciesOrganizational Pressures to change:– “Change” a solution to all problems– “Facelift” to fight Boredom– “Self-Promotion”

BRAND-WAGON

BRAND ENGINE

BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEGY

Business Potential

Brand Value

SegmentationTarget

Positioning

Marketing MixProduct/Pkg

PricePlace

Promotion

Mktg Plan

Sales Plan

Brand Strategies To Fuel the Brand Engine

• Strategy 1:- Extension- Giving birth to new product brands

• Strategy 2 :- Revitalization- Injecting life to the existing brandRevitalization:- Injecting life to same brand, energizing a mature brand

Need to inject life into the Mature Brand“Facelift” … Recharging the Brand Batteries

Brand Decisions: Leveraging Brand Identity

• Brand Extension Strategy• Brand Revitalization / “Restage”

Simply Put…

• Brand Identity: What does a Brand mean / stand for

• Brand Extension: What would you like (enjoy, love, admire) the brand to do for you.

• Brand Revitalization: How would you like to see the Brand tomorrow (Future Expectations).

• Brand System / Architecture: What are the important Relations that the Brand has

• Brand Limitations: What would you dislike (hate, anger, shame) the Brand to do.

Brand Extension Strategy

Need for Brand Extension

• Brand Growth– Mature brand : provide fillip to stagnating sales– Threat of new entrants: Protect Market Share– Strengthen franchise

• Enhance Brand Image– Strengthen Brand Identity– Revive core values– Reposition core values

Ways in which a Brand can be Extended

1. Line Extension2. Brand Extension3. Multiple Brands4. New Brands

Line Extension Strategy

• Extend existing brand name to existing product category: Identify & occupy different segments of the market – “market fragmentation”

– Pack variants: shampoos: sachets to economy packs… tubes to jars, bottles to cans : differentiate uses

– Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive: differentiate user groups… Parachute Uttam (differentiate markets)

Line Extension Strategy

• Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin type, user groups: Differentiate user needs… Colgate Gel, Maggi Chinese Noodles

• Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs… Head & Shoulders… ZPTO, Menthol

Brand Extension Strategy

• Extend the brand name to a new Product Category: Brand fit in a new business area– Supplementary Categories: BPL TV to Washing

machines, Maggi soups & sauces, Lakme lipsticks to perfumes

– Complementary Categories: Colgate toothbrush & toothpaste

– Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-shirts

– Diverse Categories: Similar core values: Britannia biscuits to dairy products. Dabur Chavanprash to Vatika

Multiple Extension Strategy

• New Brand names in the same product category “market saturation”

• Expensive strategy: Leading corporates… often through acquisitions… economies of scale– HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy, Dove,

Pears– P&G Detergents: Ariel, Tide– Coca Cola: Coca Cola, Thums Up…– Lakme: Elle 18, Orchids– Nescafe, Sunrise

New Brand Strategy

• New Brand Name for a product category: poor brand fit but business potential– Kotex to Kleenex– Huggies to Depend– Thums Up to Gold Spot, Pepsi to Mirinda– Lakme to Elle 18

Stretching the Brand VerticallyUnderstanding the terms:

• Vertical stretch: Technically a Line extension since it is the introduction of Price Variants of an existing Brand in the existing Product Class

• Stretching Up: Extending the Brand to a Higher Priced SegmentEg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at Rs

60

• Stretching Down: Extending the brand to a Lower Priced SegmentEg: From Ariel Washing Powder to Ariel Gain Washing Powder Note: Both products co-exist at 2 different Price Points under the same

brand

Brand Stretch & Market Segments

Premium Segment

Popular Segment

Economy Segment

EXISTING BRAND

STRETCH DOWN

STRETCH UP

Market Potential

Bran

d Im

age

Brand Extension Horizons

Line Extension Horizon 1

Brand Extension Horizon 2

Brand Extension Horizon 1

Effect of Brand Extensions

• More Good: Extension enhances Brand name.• Good: Extension aids Brand Name• Bad: Extension fails to help Brand Name• Ugly: Extension Damages Brand Name• More Ugly: Brand Name is Forgone

Post Mortem

• Colgate Gel: More Good• Rexona Does: More Good• Close Up Whitening: Good or Bad ? (credibility?)• Amul Pizza : Good or Bad (price?)• Britannia Cheese, Ghee… More Good• Sunsilk Hairoil : Bad (Identity or product?)• Diet Coke: Bad… Good?? (Identity… Market evolution)• Frooti Apple Drink: Ugly (Identity?)

Note…

Good understanding of the Brand Identity… may or may not lead to the Success of the

Brand Extension.

But a poor understanding of Brand Identity will definitely lead to the failure of the Brand

Extension… & may also damage the existing Brand.

Brand Revitalization

Brand Revitalization

• Inject life into a Mature Brand = Facelift• Enhance Brand equity: improved recognition,

enhanced perceived value, changed associations, an expanded consumer base & or increased loyalty

• Movement from milking Cash Cows to Brand Restage (External Stars), ina competitive context

• Recognition of the Power of Old Brands vs the Expense & Risk of Creating New Brands

Brand Revitalization/ Rejuvenation Efforts to extend the Brand Life Cycle

SALE

S

TIME

Prevent further Decline, retain sales growth

Today’s need:Continuous Process of Revitalization

Revitalization:Starts at an early stage before a brand shows a decline in SalesSa

les

Time

Ways to Revitalize

Increased Usage

New Markets

Extensions

Obsolescing Product

Augmenting Product

Repositioning

New Users

Increased Usage

• Increased Salience: Dettol• Increased Frequency/Regular Use: Shampoos :

Head & Shoulders, economy pack, travel pack• Incentives/Promotions: Filmfare, Frequent

Flier Programs

New Uses

• New Gifting Solutions: Tiffany’s & Cadbury’s• Festive Occasions: Asian Paints• Multiple Functional Uses: Milkmaid recipes• Behavioral shifts: Moov – Sprains to Back

Aches

New Markets

• Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults

• Growth in new segments: Personal Computers

Repositioning the Brand

• Image Upgrade: Philips “Lets make things Better”

• Revive Image: Lakme, Dettol• Change Association: Britannia from biscuits to

healthy food

Augmenting the Product

• Packaging Upgrade: Crocin, Shampoo, fliptops• Product Upgrade: New improved Lux• Increased Customer Involvement: Wills &

Cricket, Sunsilk & Parlours, Surf & Laundry Service

Obsolescing the Product

• Fashion Products: Colour cosmetic range, Revlon, Designer Watches- Titan

• Technology Products: Sony Music… mobiles… Windows

• Dying Categories: Pond’s vanishing cream – Oil Balanced Formula

Restage Vs Re-engineer

• Restage: Maintain the Star Status of a product through constant innovation & activity to CONTINUOUSLY enhance the brand equity salience over a period of time

• Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs risk…. multiple changes to be orchestrated in conjunction ….. Recognizing & Leveraging the core identity

Remember… If you don’t, someone else will

What Iodex did not do, Moov did.What HMT did not do, Titan did.

What Indian Airlines did not do, Jet Airways did.

Brand Exercise

• Develop a Benefit Ladder for the product Category based on Consumer needs / Motivation

• Create a perceptual map for the leading 3-4 brands in the Category

• Outline the Brand Image (from consumer research & Brand Values assuming the role of the Company)

• Give 3 possibilities of Brand extension, Line extension and Brand Revitalization

• Develop a brand Positioning Statement• Identify a consumer insight which you can use in your

communication

Motivation Perception ImageInsight…. Question Bank

1. How would you describe Hit as a person vs Raid vs Baygon?2. Imagine 10 years from now, where would you see these

people… (individually)3. Can you describe their family members4. Which animal would you associate with the following brands?5. Which Car would you associate with eash of the above

brands?6. Which celebrity / sport person would you associate with each

of the above brands?7. Which kind of person do you think will use the above brands?