global brand integration strategy for a car modifier

Masters Programmes

Submitted by: Group 4

Module Title: Global Branding

Module Code: IB846K

Date/Year of Module: 2014-2015

Submission Deadline: March 24, 2015

Company: DC Designs India

"I declare that this work is being submitted on behalf of my group, in accordance with the University's Regulation 11 and the WBS guidelines on plagiarism and collusion. All external references and sources are clearly acknowledged and identified within the contents. No substantial part(s) of the work submitted here has also been submitted in other assessments for accredited courses of study and if this has been done it may result in us being reported for self-plagiarism and an appropriate reduction in marks may be made when marking this piece of work."

Table of Contents COMPANY BRIEF ................................................................................................................................3 SELECTION OF UNITED KINGDOM ..............................................................................................3 BRAND BUILDING BLOCKS .............................................................................................................4

COMPARISON ........................................................................................................................................4 BRAND IDENTITY PRISM .................................................................................................................6

COMPARISON ........................................................................................................................................6 BRAND ELEMENTS .............................................................................................................................8

COMPARISON ........................................................................................................................................8 GENERALIZABLE IMPLICATIONS ..............................................................................................10 APPENDIX ...........................................................................................................................................12

COMPANY BRIEF ................................................................................................................................12 GENERALIZABLE IMPLICATIONS ........................................................................................................12

Insurance Prices ............................................................................................................................12 Target Market ................................................................................................................................12

REFERENCES .....................................................................................................................................14

Company Brief

DC design, founded in 1993 by Dilip Chhabria, is the largest automotive accessory

manufacturer brand in India (Dcdesign.co.in, 2012). The company is well acclaimed in the

market and “…has made more than 600 portfolios for innovative and latest car models or

other vehicles…” that serves as “…a benchmark for the best designs in the world…”

(autoportal.com, 2015). Chhabria launched this brand in the market to serve two purposes.

According to Dcdesign.co.in, first purpose is “…redesigning and modifying mass market cars

to create one-of-a-kind automotive beauties for…” automobile enthusiasts and second caters

to the original equipment manufacturers need by “…offering design and prototyping

services…” (See Appendix).

Selection of United Kingdom

Extending DC’s B2C business to the UK can be supported by various facts. According to a

report on European automotive aftermarket by The Boston Consulting Group (2014), the

industry has observed growth in recent years. This is mainly due to the liberalization of the

automotive aftermarket in the EU in 2010 (Capgemini Consulting, 2010). The report further

highlights that competitors utilizing the new block exemption regulation (BER) 2010 could

achieve growth rates of 5% to 10%, and the highest margins earned are from accessories and

appearance products creating additional opportunities for DC to exploit. Another industry

analysis by MarketLine (2012) shows that one way to enter the EU market is as a completely

new company with major entry barriers being skilled engineers and designers. DC caters both

of these parts by being a completely new company and possessing extremely skilled

designers. Another aspect this market, that favors DC, is that success in the Western Europe

market is mainly attributed to “…high emphasis on specific customer requirements and

customization of services…” (Capgemini Consulting, 2010) is critical to operate in

automotive aftermarket sector around Western Europe. Additionally, a co-operative

agreement with popular brands could be established. Top selling brands in the UK include

Ford, Nissan, Vauxhall, and Volkswagen (SMMT, 2014), few of which have already worked

with DC in B2B segment.

Brand Building Blocks

Brand building blocks ensure identification of the brand with the customers and an

association of the brand in customers’ minds with a specific product class, product benefit, or

customer need (Keller, 2001). The CBBE pyramid, as indicated by Keller, focuses on the four

key aspects of the brand; identity, meaning, responses and relationships. DC as a brand has

struck the right cords in the Indian automotive aftermarket and is one of the only product

developers in the world to do such a modification.

Comparison

Brand Salience is the first building block, defining the identity of the brand. Salience focuses

on the awareness of the brand, its recall, depth and breadth of the brand (Keller, 2001). DC

design is a luxury automotive customizations brand with high awareness more depth in the

product offering and lesser breadth in India. It has the close to 22 standard product offerings

in India and is the most recalled brand in the country (Knowledge@Wharton, 2008). A higher

level of awareness is proposed for the UK luxury market. With respect to India the luxury

cars sale in the UK is higher, so the aim would be make luxurious cars into ultra luxurious

vehicles (Capgemini Consulting, 2010). Collaborative automotive partnership with auto

manufacturers like Ford and Land Rover who already share B2B relations with DC would

help boost awareness in the market (Dcdesign.co.in, 2012).

The next aspect of the CBBE pyramid is the ‘meaning’ of the brand. The pyramid covers two

major aspects under meaning; one is the performance and imagery (Keller, 2001). The

primary aspect of performance is upmarket interiors and exteriors and the supplementary

feature is the state of the art technology (Dcdesign.co.in, 2012). DC Design in India is known

for its specialized serviceability. In the UK, DC is to retain of its Indian performance qualities

making it the first B2C prototyping brand in the UK. In context of imagery, people high on

style, all in one car, elite people, celebrities, CEO’s wanting an all in one purpose vehicle

(Knowledge@Wharton, 2008). In UK, DC would create a similar imagery as its home

country because the target group, who it would cater to in the UK, should also see the brand

as one that creates a stylish and novel imagery.

Moving to the ‘responses’ part of the building blocks, the CBBE pyramid explores judgments

and feelings (Keller, 2001). Brand judgments explores quality in India to be superior, credible

with its benchmark designs (Knowledge@Wharton, 2008) and also known for its highly

innovative designs (Dcdesign.co.in, 2012). In UK, these judgment attributes would be

retained, as, for DC, the target audience in the UK would require similar brand judgments. In

terms of feelings, DC design in India is an exclusive, socially appreciated, self-rewarding,

passionate and higher social class (Dcdesign.co.in, 2012). The brand is private and enduring

in India (Knowledge@Wharton, 2008). Feelings in the UK would be retained adding pride to

the brand making the brand being more socially appreciated and passionate in the long run.

Relationship in the CBBE pyramid explores brand resonance as an attribute that includes

evaluating loyalty, attachments, sense of community and active engagement (Keller, 2001). In

India, DC Design provides strong cords of attachments with its customers when they are

associated to the brand. In the UK we propose to bring a sense of community to build loyalty

and a sense of community by introducing a privilege DC club.

Brand Identity Prism

Kapferer introduced the Brand Identity Prism in 1986. Brand Identity entails the customers’

perception of the brand, the name of the brand, the trademark of the brand, the graphic

representation of the brand, the uniqueness of the brand with respect to its competitors, and

the overall image of the brand (Andreea, 2013).

There exist six aspects of the Brand Identity Prism being Physique, Relation, Reflection,

Personality, Culture and Self Image. These aspects are further categorised into two facets

namely The Constructed Source versus The Constructed Receiver and Externalisation versus

Internalisation (Kapferer, 2009).

Comparison

Physique makes reference to the brand’s physical characteristics that are aroused in the minds

of the people when the brand name is talked about. In India, DC displays iconic design and

cutting edge innovation (Dcdesign.co.in, 2012). Its finesse indicates superior quality. DC

should aim at following the same suit whilst offering a diverse range of products. This is

because the brand identity of DC, as a well-established brand, will aid in the easy acceptance

of the other products being offered as brand extensions of the company (Viot, 2011).

Relationship implies the symbolism of a particular association between people (Kapferer,

2009). DC lounges provide a personalized and exclusive feel creating an emotional appeal

(BS Reporter, 2012). In UK, this feature would be duplicated to provide the similar unique

image.

Furthermore, DC would be working towards converting consumers, who merely prefer this

brand, to consumers who are brand loyalists by making them feel as a part of this distinctive

brand (Raj, 1985).

Reflection of the consumer refers to the stereotypical user of the brand (Kapferer, 2009). Any

automation enthusiast, regardless of age having a creative bent of mind in India would be

DC’s chief user (Dcdesign.co.in). DC, in UK, would aim to target successful people

preferring self-driven vehicles so as to enjoy the divine luxury and comfort offered by these

vehicles.

Personality suggests the brand’s appeal, which assists in the process of communication of the

brand with its customers (Kapferer, 2009). It may take the form a person having particular

traits used to visualize the brand. DC India appeals to the luxurious aspect of the car. In the

UK, DC would focus on converting it into ultra luxurious to take the brand to a higher

pedestal. It should transform from being merely a brand to being a celebrity itself. A celebrity

having a strong personality that immediately makes people develop a rare fondness and

preference towards the brand (Freling, Crosno and Henard, 2010) (Aaker and Fournier, 1995).

Culture is the organization of values and basic principles on the basis of which the brand has

to base its behavior (Kapferer, 2009). It establishes a direct relationship between the brand

and the organization. DC India is based on the values of creativity and innovation providing a

distinctive experience (Dcdesign.co.in, 2012). In UK, DC must work with the purpose of

providing award-winning services. By way of keeping intact the basic ideals of the

organization, dc will able to cater to its homogenous customers worldwide while projecting a

global culture overall (Holt, Quelch and Taylor, 2004).

Self Image indicates the mirror the audience in focus holds up to itself (Kapferer, 2009). In

India, people driving vehicles think of themselves as classy, flamboyant and elite. Replicating

the same in UK, DC is ought to create an overall luxurious experience to the driver of the

vehicle so that it gives him pride while driving. By providing DC consumers in India or the

UK with almost the same experience while driving a dc vehicle, we propose to create an

image of being an integral part of an international brand in the minds of the people (Holt,

Quelch and Taylor, 2004). By way of this, people wish to be associated and connected with

the brand, regarding themselves as global consumers (Steenkamp, Batra and Alden, 2003).

Brand Elements

A comparison of DCs brand elements was done using the six criteria as proposed by Keller

(2013). This also aided in providing a clearer picture of the usability of the existing brand

elements in the developed market. Overall the brand has accomplished a strong associations

and awareness in India’s automotive aftermarket that has provided a strong base to retain

most of the elements.

Comparison

DC Design and dcdesign.co.in as a brand name and URL respectively carries a lot of

meaningfulness and memorability, as “…DC Design is the world’s biggest independent car

design firm by volume…” (Knowledge@Wharton, 2008). DC Design creates a verbal imagery

through its successful positioning as a creator of “…avant-garde art…” (Majumdar, 2014)

that contributes to likability. The adaptability stands low due to the symbolization of Dilip

Chhabria in both the logo and the URL. On the other hand, name and URL are considered

protectable and legal because of its copyrights. Lastly, transferability is limited to geographic,

as the name is associated with automotive aftermarket products only.

In terms of UK, carrying the same brand name and URL would be an appropriate option to

adopt a uniform branding strategy globally. In order to build personalized association and

enhance memorability, a UK version of the same URL ‘dcdesign.co.uk’ is deemed suitable.

The remarkable works of Dilip Chhabria for high-end luxury brands such as Aston Martin,

Renault and GM (Dcdesign.co.in, 2012), while making the adaptability difficult, would

contribute to the likability and meaningfulness. The name and URL can be made protectable

by acquiring copyrights, and can also be used across different geographies including the UK

making them only geographically transferable.

The visual appeal contributes to its likeability due to the logo being highly eye-catching by its

classy font. In terms of India, logo is formed from the initials of the man behind the business

and the only company having “DC” as its logo, which contributes to its meaningfulness. Due

to an already established awareness and association in car customization market, the

adaptability is low. The logo has its copyrights and thus is highly protected. On the other

hand, the transferability is limited due to international existence of a brand name “DC” in

various industries globally such as DC comics, and DC footwear. The logo builds

recognizable traits of the brand resulting in high memorability.

Same brand logo is to be retained due to the already established image in automotive

aftermarket sector enhancing the meaningfulness and memorability. The legal procedures

would make it protected as well. The logo would also have a high likability for the same

reasons stated above. Furthermore, the same logo would still have limited transferability and

low adaptability for the UK market as well.

In India DC lacks a tagline for its brand but a tagline would be suitable for the UK market as

it communicates the brand promise, reminds the firm of their promise and lastly it is

"…customers’ indicator of a future experience…" (Ehret, 2009). The proposed tagline for UK

is “You dream: We Chase”. This tagline depicts the one of missions of Chhabria

(Knowledge@Wharton, 2008), which makes it memorable and meaningful. It also provides a

chance for the customers to attain their dream car through DC, which also coincides with the

brand’s specialty i.e. “…concepts and innovations well ahead of their time…” (Majumdar,

2014) making it likable and transferable. It can evolve as the company establishes itself in the

UK market, making it adaptable. There is no similar tagline for any automotive aftermarket

company making this protected as well.

In India, Dilip Chabbria, as its own brand character, is highly touted for DC designs

(Majumdar, 2014). He, as a brand character is memorable, meaningful, likable and

protectable for the brand as “…every DC creation is a signature extension of the artist’s

personality…” (Dcdesign.co.in, 2012). Further, transferability can be seen to be high as well

by the fact that the artist is not just associated with automobiles but is also known for

designing and refurbishing aircraft interiors. The adaptability stands limited because Chabbria

stands as a focal point of the brand and cannot be replaced. These factors, for a brand

character, would stand appropriate for the UK market as well which makes maintaining the

same brand character the most fitting option.

The packaging of DC cars comprises of the customized parts as well as the outlook of the car.

The packaging is recognized to be benchmark for the rest of the world (Autoportal.com,

2015), hence contributing to memorability, protectability and meaningfulness. The packaging

is focused on developing one-of-a-kind automotive beauties (Dcdesign.co.in, 2012), which

maintains high likability. With its portfolio of 600 products “…for innovative and latest car

models or other vehicles…” (Autoportal.com, 2015) the packaging is deemed adaptable. As

Chabbria is an acclaimed designer by many large automotive manufacturers, his designs are

taken to be transferable across geographic boundaries. The same packaging is also maintained

as the factors already stated hold true for the UK market as well. In addition, Dilip Chabbria

has managed to influence the automotive design market by making his designs accepted by

many different companies. This would make it quite obvious that same packaging should be

maintained, along the inclusion of backward integration due to existing ties with large

automotive manufacturers.

Generalizable Implications

According to the UK Government’s official website “…You must have motor insurance to

drive your vehicle on UK roads…” (Gov.uk, 2015). According to Pidgen (2015) an increased

risk of accidents and theft is caused by changes in vehicle performance and a possibility that

the “…vehicle is broken into or stolen…” (See Appendix). Companies dealing with car

accessories, such as DC design, may affect the insurance price up to 26% for body kits and

16% for interiors. This is an important consideration because in recent times UK automobile

insurance market has seen an overall increase in premiums (Jones and Sanders, 2015) that is

likely to affect the sales of such modifications. A good idea, to cater to this problem, would

be to include functional modifications such as driver aids to reduce the insurance prices (See

Appendix).

For any automotive aftermarket firm entering any fresh market it would be essential to know

which segment of the market buys what kind of modifications for their automobiles.

According to Pidgen (2015), this can be classified by age and gender. In the UK the major

buyers for car modifications is more inclined towards male while female also constitute to a

reasonable size of the market (See Appendix).

When viewing the industry in general, the block exemption regulation of 2010 has reasonably

reduced the power of buyers by inducing more buyers to opt for automotive aftermarket

products (MarketLine, 2010). As mentioned earlier, major entry barriers of this industry

include skilled engineers and designers that deters a lot of brands to enter into the market.

Lastly, one of the major consideration for any brand bringing their manufacturing in the UK

have to cater to strict environmental laws, which could add to their total cost and decrease in

overall efficiency (MarketLine, 2010).

Appendix

Company Brief

These aims can also be looked according to the B2B and B2C markets. According to

Chhabria in an interview with India Knowledge@Wharton (2008), in B2B market, the

services provided by the firm include prototyping work or consultancy for various car

manufacturers such as GM and Ford. On the other hand, in B2C market DC builds special

vehicles. This is segment in which the firm believes that the revenue growth would be

highest. Building special, according to BS reporter (2012) includes “…transforming regular

cars into premium designer vehicles according to the customer's requirements…” for which

the company has a portfolio of 22 standard offerings for various popular models in India.


Insurance Prices

When thinking about vehicle modifications, one has to consider that any changes, when

declared, in the automobile changes the premium charged by the insurance provider while not

declaring it would leave that modification not covered by the company (Petrolprices.com,

2015).

Driver aids such as parking sensors and installation of tow bars can bring down the insurance

prices by 13% and 8% respectively (Pidgen, 2015). This can bring down the overall impact

increased cost to the insurance and also provide added security for the vehicles.

Target Market

The modifications are categorized as functional, and performance and aesthetic where the

former constitutes of elements like engine bodywork and interior, and latter constitutes of fuel

economy and driver aids. Generally males aged 17 to 35 are more inclined towards

performance and aesthetics and 35+ prefer a mix of both types of modifications. On the other

hand, females aged 24+ opt for the same as 35+ males and younger females are more inclined

towards opting for performance and aesthetics.

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Group 4

•  Formed in 1993 •  Offers Design and Prototyping services –  Indian Original Equipment Manufacturer industry –  Customized one off solutions to Individual buyers

•  Cutting edge automotive design •  Modifications include :

–  Luxury interiors –  Attractive Exteriors –  Technology options

DC Design

Source: Dcdesign.co.in (2012)

DC Makes An Ambassador

An Ambierod

Current Product line in India •  Portfolio of 22 standard product offerings. •  Most popular ones include Toyota Innova, Mahindra XUV500

and Volvo coaches. •  DC also produces cars like Avanti, Gaia, Tia, Imperator and

Circa2020. •  Also designs interiors for executive jets, helicopters and

luxury yachts.

Source: BS reporter (2012), Dcdesign.co.in (2012)

•  Industry has observed growth due to liberalization and introduction of Block Exemption Regulation (BER) 2010 in the EU automotive aftermarket sector (Capgemini Consulting, 2010).

•  This has created opportunities for firms to experience up to 10% annual growth.

•  Highest margins in aftermarket sector are earned in accessories and appearance products.

•  DC has the ability to break through EU entry barriers i.e. a completely new company with skilled designers (MarketLine, 2012).

Why The UK Market?

•  Catering to specific customer requirements and customization services critical to operate in Western Europe; both of which are offered by DC (Capgemini Consulting, 2010).

•  DC has already established ties with some of the top selling brands in the UK such as Ford and GM (SMMT, 2014) which would aid in collaboration.

Why The UK Market?

A Rolls Royce Phantom coupé

Can be DC’ed in the UK

Brand Building Blocks

Salience

•  Luxurious to Ultra Luxurious

•  Collaborative automotive partnership boosting awareness

•  Luxury automotive customization brand in India

•  High Awareness •  More depth less

breadth

Source: Dcdesign.co.in (2012), Knowledge@Wharton (2008), Capgemini Consulting (2010)

Performance

•  Fine tuned product •  Upmarket interiors

and exteriors •  State of the art

technology •  Personalized

efficient serviceability

•  First B2C prototyping brand in UK

•  Fine tuned product •  Upmarket interiors

and exteriors •  State of the art

technology •  Personalized

efficient serviceability

Source: Dcdesign.co.in (2012), Knowledge@Wharton (2008)

Imagery

•  Stylish and Novel •  Creating a celebrity

idealization •  Classy Imagery •  Elite

•  Stylish and Novel •  Elite •  Luxurious image •  High style quotient


•  Superior innovation •  Benchmark designs •  Quality excellence

•  Superior quality •  Highly innovative •  Benchmark for the

best designs in the world

Judgements


•  Exclusive •  Divergent •  Self – Rewarding •  Passionate •  Socially appreciated •  Pride

•  Exclusive •  Socially appreciated •  Self – Rewarding •  Passionate •  Higher social status

Feelings


•  Increased association through privileged DC club

•  Strong cords of attachment

•  Strong cords of attachment

Resonance

Source: Dcdesign.co.in (2012)

Concept Land Rovers by DC

Brand IdenIty Prism

PHYSIQUE PERSONALITY

RELATIONSH

IP CU

LTURE

REFLECTION SELF IMAGE

•  Iconic design •  Finesse •  Stands out •  CuRng edge

innovaIon •  Superior quality

•  Iconic design •  Finesse •  Stands out •  CuRng edge

innovaIon •  Superior

quality •  Diverse range

of products

PHYSIQUE

•  DisIncIve •  Dynamic •  AmbiIous •  Luxurious

•  DisIncIve •  AmbiIous •  Ultra Luxurious •  Celebrity

AssociaIon

PERSONALITY

•  PersonalizaIon •  Exclusivity •  EmoIonal appeal •  Trustworthy

•  PersonalizaIon •  Exclusivity •  EmoIonal

appeal •  Trustworthy •  Sense of

superiority

RELATIONSHIP

CULTURE

•  CreaIvity •  InnovaIon •  Experience •  Modern lifestyle •  Pioneer

•  CreaIvity •  InnovaIon •  Modern lifestyle

REFLECTION

•  Youth, Middle aged

•  AutomaIon enthusiast

•  Stylish

•  Youth, Middle aged

•  AutomaIon enthusiast

•  Stylish •  Self driven

vehicle •  Divine luxury

SELF IMAGE

•  High standard of living

•  Classy •  Flamboyant •  Trendy •  PresIgious •  Symbol of being

elite

•  High standard of living

•  Classy •  Flamboyant •  Trendy •  PresIgious

Brand Elements

Brand Elem

ents Brand Name DC Design DC Design

URL www.dcdesign.co.in www.dcdesign.co.uk

Logo

Slogan None You Dream We Chase

Character Dilip Chhabria Dilip Chhabria

Packaging CustomizaBon product

Backward IntegraBon

BRAND ELEMENTS

Criterion Brand Name & URLs

Logos & Symbols Slogan & Jingles Characters Packaging

Memorable Highly Recalled and recognized

High N/A High Unique and

Identifiable

Likability Verbal Imagery Provokes visual appeal N/A High High

Adaptability Low Not adaptable N/A Limited Updatable Flexible

Meaningfulness Highly meaningful High N/A High High

Protectability Protected by Copyrights Excellent N/A Excellent Highly Protected

Transferability Limited – Only

Geographically

Limited N/A High High

BRAND ELEMENTS

Criterion Brand Name & URLs

Logos & Symbols Slogan & Jingles Characters Packaging

Memorable Enhanced High Highly connected in terms of DC High Unique and

Identifiable

Likability High Highly appealing to customers High High High

Adaptability Limited Low Can be somewhat flexible Limited Updatable

Flexible

Meaningfulness High High High High High

Protectability By acquiring copyrights High High Excellent Highly Protected

Transferability Geographically transferrable Limited High High

High with Backward integration

Generalizable Implications •  Product in the UK Market: –  Car Insurance is mandatory in the UK (Gov.uk, 2015). –  One of the major concern in the UK is the insurance price

of modified cars due to change in risk of accident and theft (Pidgen, 2015).

–  Insurance price increase up to 26%with body work modifications.

–  A useful solution would be inclusion of driver aids such as parking sensors and tow bar that reduces the insurance price 13% and 8 % respectively.

•  Target market: –  Male 17 – 35 are more inclined towards performance and

aesthetic. –  36+ adopt a mix of functional, performance and aesthetic

modifications. –  Generally females more inclined towards functional

modifications such as parking sensors.


Source: (Pidgen, 2015)

•  After the liberalization, buyer power in the automotive aftermarket has significantly declined.

•  Highly skilled engineers and designers make up the major entry barriers for the industry.

•  Environmental concerns also make entry more problematic.


Source: (MarketLine, 2015)

THANK YOU

References included in the report.