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Shiv Shankar Tripathi

August 23rd, 2010

Hyderabad


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The least of things with a meaning is worth

more in life than the greatest of things

without it

Carl Gustav Jung


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Building a Brand: Factors to be considered

Source: David Jobber


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Why Brand Positioning

As consumers, we are all influenced by the effects of apowerful brand positioning-"brainwashed," so tospeak-to have preference for one versus another. Buttoday there are so many choices for consumers thatthis term has a secondary derivation-"whitewashing."

The brand choices are so varied and the differentiation

so minimal in terms of product functionality that we'refaced with a sea of indiscernible offerings. This is whyit is critical for a brand to be well positioned anduniquely differentiated.


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Brand Positioning defined Positioning means owning a credible and profitable

position in the consumers mind, either by gettingthere first, or by adopting a position relative tocompetition, or by repositioning the competition.

- Al Ries and Jack Trout in Positioning: The

battle for your mind

Examples: Cinni fans, Tata, Exide, Lifebuoy, Colgate.


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Brand positioning: Perceptual Map

Brands can be positioned against competing brands on aperceptual map.

A perceptual map defines the market in terms of the waybuyers perceive key characteristics of competing products.

The basic perceptual map that buyers use maps products interms of their price and quality, as illustrated on the next

slide:


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The Brand Building Perceptual Map


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The Brand Positioning ProcessUnderstandingall stakeholder

needs anddesires

Brand

Architecture

Opportunity

Modelling

Brand

Platform

Brand

Identity

Continuousevaluation

anddevelopment


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1. Understanding all stakeholder needs and

desires Consumers needs

Corporate Need

Shareholders/Investors needs Channel Partners need

Example: P&G - Tide and Ariel

Mahindra, Jaguar or Land Rover

Volkswagen - Beatle


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2. Opportunity Modelling for Positioning

Relevance

Differentiation

Credibility Stretch


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Successful Brand Stretch of Dove

Source: Brand Stretch by David Taylor


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3. Brand Platform: Taking up a position in

the market


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4. Brand Identity: Reflecting Brand positioning in

the name

Descriptive: Kingfisher Airlines, IBM

Associative: Bajaj Pulsar, TVS Scooty, Outlander

Abstract: Kodak, Accenture, Lemon Mobiles


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5. Brand Architecture: Organise to deliver value

Brand architecture creates value through clarifying alllevels of branding based on:

The needs and priorities of target audiences Expressing the depth and breadth of the offering

Generating economic efficiencies

Extending and transferring brand equity between

corporate and product and sub-brands Making brand strategy credible


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Brand Architecture Structures1. Freestanding BrandStandalone brands, little or no connection with parents. E.g. Garnier2. Endorsed BrandParent (Source) brand provides credibility, personal relevance of thebrand may not be clear. E.g. Maruti cars

3. OverbrandIndividual business units or brands operate under a strong parent, dualcommunication with unique positioning by leveraging the credibility ofthe source. E.g. Hyundai i10, i20, i30, SUVs like Tata Safari, MahindraScorpio, Mitsubishi Outlander, Ford Fortuner.

4. MasterbrandA single brand spans a set of offerings that operate only with descriptiveofferings, continual product innovation, new releases and so on. E.g. TajHotels, Kingfisher Airlines, Kerala Tourism.


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6. Continuous Evaluation and Development

Take decisions regarding improving upon the POPs(Points of Parity) and PODs (Points of Difference).

Brand extensions Line/Category extensions Category memberships Loyalty Programs


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Case I: Walt Disney Few brands are better defined than Disney. The company's success is measured by

no less than a 610 percent growth in the last decade, according to its most recentannual report. Nearly half of that growth came from new business areas, some thatbear the Disney name and some that do not. Here is a company that not onlyunderstands its vision and meaning but clearly understands its parameters ofrelevance. What is the Disney story?

Walt Disney was a visionary. And his vision for the Disney Company was not tocrank out cartoons or build theme parks, but "to make people happy." I think Ican safely say that virtually everyone in the developed nations of the world is crystalclear about what the Disney brand stands for: imagination, wholesomeness,fun.Whether we picture in our minds a theme park for children, adventure and

learning vacations for the whole family (Disney Institute), a movie or a co-brandingeffort, the Disney promise is aligned with our expectations. Its branding decisionsmake sense.


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Case II: Microsoft Microsoft, a company that was started in a hotel room by a

couple of college dropouts with one compelling vision: acomputer on every desk and in every home.It may have been abrazen idea 20 years ago, but it has guided Microsoft ever since,giving it uncontested dominance in the desktop software market

and making Bill Gates a very rich man. Microsoft today is hardly what we would call a simple company.

It employs more than 30,000 people and designs and sells a vastarray of software programs in 60 countries; having a net incomeof more than $2 billion. But as much as it has grown, it has never

lost sight of its original vision. Everything about Microsoft-itsproducts, its marketing and, most important, its brandpositioning-is still driven by the idea of a computer on every deskand in every home.
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BaselineOur ground work takes you sky high

Headline: Helping another Indian chart the global skies
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Brand Extension and Brand Stretching Marketers have long recognised that strong brandnames that deliver higher sales and profits (i.e. those

that have brand equity) have the potential to worktheir magic on other products.

The two options for doing this are usually calledbrandextensionand brandstretching.

Brand extension Brand extension refers to the use of a successful brand

name to launch a new or modified product in a samebroad market.

A successful brand helps a company enter new productcategories more easily.

Brand stretching Brand stretching refers to the use of an established

brand name for products in unrelated markets.


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Brand Extension and Brand Stretching

When done successfully, brand extension can haveseveral advantages: Distributors may perceive there is less risk with a new

product if it carries a familiar brand name. If a newfood product carries the KISSAN brand, it is likely that

customers will buy it Customers will associate the quality of the established

brand name with the new product. They will be morelikely to trust the new product.

The new product will attract quicker customer

awareness and willingness to trial or sample theproduct Promotional launch costs (particularly advertising) are

likely to be substantially lower.


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Conclusion

To conclude: Companies who build their corporate names or any of

its products a successful brand never lose their originalvision.

They keep on innovating continuously so that theirbrand stays relevant, desirable and consistentlyprovides value to the customers besides creating brandequity for the company.

The brand becomes mature when not the companybut customers start taking ownership of the brand anddrive the company.


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Further Reading/References

Batey, Mark, Brand Meaning, Routledge, New York.

Clifton, Rita Et al., Brands and branding, Economistbooks.

Taylor, David, Brand Stretch, John Wiley & Sons. DAllasandro, David F, Brand Warfare 10 Rules for

building a killer brand, McGraw Hill Publications.

Knapp, Duan E, Brand Promise, McGraw HillPublications.

SuperBrands India

Images Retail magazine.


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Thank You.

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