Download - Hmt watch
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Brand Kya Hota Hai?
• You & Me
• Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it
• Origin: Brandr
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Brand ki zaroorat kya thi?
• One Consumer
• One Need
• MANY PRODUCTS
• Kiss ko choose karun -- Confusion!
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Ek Friday. Doh Filmein!
• Comedy vs. Comedy
• Two Star vs. Two Star
• Govinda vs. Tushar Kapoor
• Which one will you go for?
• Brand Govinda: Comedy Associations
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Brand has…
• Name, Symbol or Logo
• Brand Purpose: Positioning
• Values & Personality: Image
• Bundle of Benefits: Promise
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Consumer: Value Maximiser
• Brand: Biggest Value Driver!
• Cap – Rs. 50/-
• Cricket Team Cap – Rs. 500/-
• Team Cap used by Tendulkar – Rs. 5000/-
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Brand Value…
MEANS OF IDENTIFICATION
PROMISE
RISK REDUCTION
IMAGE DRIVER
CONVENIENCE
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Kya brand ho sakta hai?
• Gaadi
• Doodh
• Atta
• Namak
• Kya nahin brand ho sakta hai?
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Brands kya reality mein better hote hain?
• Is Mercedes the best car?
• Is IIM Ahmedabad the best b-school?
• Maybe, maybe not!
• Perception!
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Sounds easy!
• One NIKE. 1000 FAILED NIKE!
• Biggest challenge for a Marketer
• 3C Challenge– Cash– Consistency– Clutter
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Brand Equity
Concept & Its Importance
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The Challenge
More Products More Competitors More Media Same Consumers Same Needs GROWTH MANTRA?
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MANTRA #1
Price
Sales Promotions
Price Wars
Short-Term
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Mantra #2
Brand Building
Distinctive
Sustainable
Long-Term
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What is Brand Equity?
“BE is a set of brand assets / liabilities
linked to a brand, its name or symbol
that add to or subtract from the value
provided by a product or service to a
customer”
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Components of Brand Equity
Awareness: Name & Symbols
Perceived Quality
Brand Associations
Brand Loyalty
Other Proprietary Brand Assets
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Awareness: Name & Symbols
Recognised vs. Unknown Brand
Familiarity drives perception
Familiar = Reliable + Good Quality
Unknown only a push option
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Brand Associations
People, situations, moods, needs that consumers relate a brand to/with
Helps the brand occupy a distinct mindspace
Drives purchase
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Perceived Quality
Consumers are not engineers! Quality is based on perception and
not specifications Brands drive perception of quality Perception drives purchase, premium
justification and ease of extension
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Brand Loyalty
Cost of acquiring new customers is 10 times the cost of retaining old ones!
Products are non-living but brands aren’t Customers associate themselves with
brands (preservance/enhancement) Difficult to break-away to competition
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Other Proprietary Assets
Trademarks
Patents
Channel Relationships
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CBBE
Consumer Based Brand Equity
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Case for Building a Brand
Improved Product Perceptions Greater Loyalty Insulation from Competition Higher Margins Inelasticity to Price Cooperation from Channel Effective Marketing Communication Leverage through Extensions
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Million Dollar Questions What makes a strong brand?
How to build one?
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The 4 Fundamental Questions
Who are you? (Brand Awareness)
What do you do? (Brand Knowledge)
What do I think about you? (Brand Attitude)
What about you and me? (Brand Relationship)
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Brand Awareness Recognition & Recall
Depth: How easily do they recall? TOM: McDonald’s
Breadth: In what all situations do they recall? Usage Occasions: Tropicana
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Brand Knowledge Performance: Attributes & Benefits
Ingredients: KFC Consistency: McDonald’s Durability: Tata Serviceability: Maruti Service Efficiency: Domino’s Style & Design: Swatch
Imagery User Profile: Harley Usage Situation: I-Pill Personality: Tata Values & Beliefs: Johnie Walker
Should be strong, favourable & unique
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Brand Attitude What consumers think and feel about the
brand
Brand Judgments: Opinion / Evaluation
Brand Feelings: Emotional Responses / Reactions
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Brand Attitude Brand Judgments
Quality: Smirnoff Credibility: Apple Consideration: Sony Superiority: Intel
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Brand Attitude Brand Feelings
Warmth: Archies Fun: Disney Excitement: MTV Security: SBI Social Approval: Mercedes Self-Respect: RbK
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Brand Relationship Association with the Brand
Behavioral Loyalty: Fair & Lovely
Attitudinal Attachment: Budweiser
Sense of Community: Saab
Active Engagement: Enfield
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Term Project: Phase I Understand the Current CBBE amongst the
Target Market
FGDs / DIs
Users / Lapsers
Define it as given in the subsequent slide
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CBBE for Amazon
Books, Music & VideosBRAND AWARENESS
Conv., Variety, Low Prices
For Every Internet UserBRAND KNOWLEDGE
Good Value / Credibility
Smart ShopperBRAND ATTITUDE
Loyalty, Community, Engagement
BRAND RELATION
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Defying Newton
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What is a declining brand?
• A brand which has over a period of time been losing both market share and mind share amongst its target consumers
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Top 10 Reasons for Declining of Brands
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Cause #1
• Decline in quality– Cost-cutting (Maruti 800)– Increasing volumes (IIMs) – Relaxation in QC Measures (Café Coffee Day)– Perceptual Decline: Price, Channel, Sensorials,
Advertising, Packaging
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Cause #2
• Resistance to Change– Product Oriented (Robin Blue)– Need Oriented (Nirma Detergent)– Consumer Oriented (Dabur Chavanprash)
• Why resistance?– Investment– Product Orientation– Tried & Tested– Complacency
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Cause #3
• Single Product (Ambassador)– No portfolio– No extensions
• Problem?– Visibility– Stature– Decline in segment– Decline in product
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Cause #4
• Excessive Pricing (Daewoo Cielo)– Premium pricing– High margins– Entry of Competition– Feeling of being cheated– Private Labels
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Cause #5
• Wrong extensions (Pune Mirror)– Bad products– Crowded categories– Lower image products / segments
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Cause #6
• Communication (Kelvinator)– Low levels of communication– Wrong message– Low impact– Brand Ambassador– Production values
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Cause #7
• Channel management (CrossWord)– Attitude of Sales Team– Margins– No push– Emergence of alternate channel
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Cause #8
• Ageing (HMT Watches)– Old age– No makeover (Product / Communication)– Perceived as ‘Not for me’
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Cause #9
• Lack of differentiation (Acer Computers)– Cluttered market– No USP– No competitive advantage– ‘Me Too’ Branding
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Cause #10
• Tough Consumer– Less emotional– Lowering levels of loyalty– Flirtatious attitude– More knowledge driven– Connected via media
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Exercise: Failed Indian Brands
• Weikfield Jelly• Maruti Zen Estillo• Yamaha RX-100• Roohafza• Margo Soap• Kinetic Scooter• Fiat (Ageing)• Moti Soap• Savlon• Milkfood
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Revitalising the Brand
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Why revitalise?
Brand still has high awareness
Brand still has some values with consumer
Product still selling
Cost of building a new brand is far higher
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Ways to Revitalise
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#1: Increase Usage
Getting existing customers to use more of your product Frequency of Use (Shampoo)
Reminder Communication Positioning for frequent use Make the use easier Provide incentives Reduce undesirable consequences of frequent use Use at different occasions
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#1: Increase Usage
Getting existing customers to use more of your product Quantity of Consumption (Chips)
Incentives on high use Creating larger servings Removing undesirable consequences of high consumption Positive associations
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#2: Finding New Uses
Finding a new functional use for the brand Omni Cargo
How to find new uses? Observe usage of current customers Sponsor new use contests Use of competition’s product
When to adopt a new use? Potential market Feasibility & Cost Competitive reaction / takeover of the use
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#3: Entering New Markets
Move into a new market area having growth potential
New Segment (Pepsi A.M. / Bacardi Breezer)
New Geography (Honda City / Gits)
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#4: Repositioning the Brand
Existing positioning not relevant
Lacking appeal amongst TG
Reposition the brand on a new platform Lifebuoy (Koi Darr Nahin) Fair & Lovely
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#5: Augmenting the Product
Providing features / services not expected by the consumer Must be things the consumer values Linked to the product
Drive consumer delight Nestle Coffee Shaker Titan Eye Free Eye Testing
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#6: Obsoleting Existing Products Kill the existing product and introduce a new
technologically advanced product Bajaj: Scooters to Motorcycles Gillette: Stainless Steel Blades Intel: Self Destruction Windows Vista: Windows 7
Risky as there has been investment in the existing product which will go waste
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#7: Extending the Brand
Take the brand into products which have a brighter future Dettol Soap Mcdonald’s: Salads & Yoghurt Crest: Beyond cavities!
Extension must be Relevant Sustainable
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What if nothing works?
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Option #1: Milking
Minimising investments, maximising cash flows Hold Milking Strategy: Pepsodent G
Sufficient Investment
Fast Milking Strategy: Ambassador Pulling out of investment Raising of prices in certain cases
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Option #2: Divestment or Liquidation Exit out of a brand
HUL Denim Lee Cooper
Last Resort Rapid sales decline Milking also unprofitable with price pressures Weak brand position Exit barriers can be overcome
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Brand Extensions
Why? When? How?
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What is a Brand Extension?
Established brands are assets Marketers try and leverage these assets The process of using the brand name on
another product is known as extension Line Extensions (Lifebuoy Liquid Soap) Category Extensions (Nokia Laptops) Stretch Extensions (Intel Celeron)
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Why Brand Extensions?
New products a driver of growth for a company Developing and launching requires millions Yet 9 out of 10 new products FAIL Brand not launching new products are also at times
perceived as old and staid Overdependence on any one brand could be
dangerous Parent brand may only appeal to a segment Brand is seen as boring and lacking variety Allows the competition to flank
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Why Brand Extensions?
Brand extensions helps cut down costs Also increases the chances of success as the
consumer already has a favourable image Rejuvenates parent brand Reduces overdependence on a single product Category/Stretch extensions help bring in new users Line extensions cater to different needs of segments or
provide variety to existing users Can also be a tool for blocking competition
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How do consumers evaluate?
Fit between Parent & Extension Fit in terms of ‘Core Differentiation’ FIT: Coke & Diet Coke (Taste) MISFIT: Pepsi & Crystal Pepsi (Colour) Extension must remain true to the core
values of the parent brand
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How much to extend?
Extend to the extent where there is an equal borrow & build with the parent brand
Harley: Clothing, Tatoos but not Energy Drink FAL: FAL for Men but not Perfect Radiance Pepsodent: Cavity, Plaque but not Fresh Breath Drivers
Frame of Reference (McDonald’s – Fast Food) POD (Oral-B Toffee) RTB (Gits – Pasta)
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Moving Down
Why? Competition Private Labels
Challenge Protecting the Brand Distinguish the Extension
Sub-Branding Product
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Moving Up
Why? Potential User Base Higher Margins
Challenge Managing Credibility Sub-Brand with a Descriptor (Kodak GOLD)
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Risks in Extension
Line Extension: Overchoice & Confusion Dilution of Parent Equity: New Maggi, Coke Vanilla
Use of Sub-Brand gives cushion: Sony Walkman Cannibalisation of Parent (Space & SOM)
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Extensions in Portfolio
Cannibalisation
Distinct Role
Incremental Share
Different Needs
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Key Questions
Positioning of Parent Brand? What am I using from the positioning? Is that valued by the consumer in the new
category in which I am extending? Does the consumer see a connect with the
parent? What will be the impact on the parent?