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Dr. Mahendra SharmaDean, FMS

Ganpat University

With

National Conference on Emerging Management Perspective - 2010Organized by : Faculty of Management Studies, Ganpat University

SupplyChain

BrandBuilding

Mr. Amit PatelFaculty, V.M.P.I.MGanpat University

Mr. Rajen PurohitFaculty, CMS

Ganpat University

Motivation

SCM as a research subject has remained untouched in the Branding literature

Source : Dibler Ulas & Hatice Calipiner (2008)

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Motivation...SCM as a Branding tool includes all the connection between production and consumption centers, constitutes a vital process of conveying branded goods to the market in optimal time, at optimal cost.

Creation of Brand is related to management strategies, while continuity and quality is possible only by using Supply Chains effectively.

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Promise

Customer

Perception towards

Brand

Positive ImpactNegative Impact

BrandPromise and Delivery

Source : Jesoph Benson, Brand Strategist and Vice President, Sapient Corporation

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Brand Promise and Delivery

It is not important what organization offers but it is important how customer feels

Customers are influenced by buying experience irrespective of marketing communication success and superior product

CustomerOrganization Buying Experience

Therefore, a Brand essentially depends on execution and not only promise

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Supply Chain……is a crucial function of an organization

Eight SCM procedures determined by the members of GSCF (Global Supply Chain Forum)

1. Customer Service Management2. Order Fulfillment3. Demand Management4. Procurement5. Returns6. Manufacturing Flow Management7. Product Development8. Commercialization

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Benefits of applying Supply Chain…(Ozdemir, 2004; Chen et al., 2004)

• An increase in customer satisfaction• Decrease in stocks and stock cost• Standardization in production and shortening

the production process• Increase in quality• Improvement in distribution, payment, order

taking and delivery process• Increase in effectiveness, and• Possibility of entering international market

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Significance of Brand Management• General meaning of Brand and Branding

• Imitating a high quality product is very much possible in most of the cases

• But Branding adds intangible values to high quality product

• The tool used to add these intangible and remarkable values is marketing communication

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Marketing Activities and Supply Chain…must have to work in integrated and synchronized way

“Lack of communication and coordination between Supply Chain and Marketing can generate a Brand frightening”

Example : K-mart

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Foundation of Branding through Supply ChainThe key purpose of business is to make and keep customer and not just to make a sale.

To retain customer, company must offer followings:

• Value,• Excellent service, and• Effective, continuous, relevant, and clear

communication Contd…

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Foundation of Branding through Supply ChainHence, company must incorporate:1. Accountability

Requires internal and external matrices – all relevant to customer in order to manage the delivery of customer value

2. Customer EquityRepresents the lifetime value of a customer, driving

company to focus on customer retention

3. Operational Excellence• Encompasses everything from R&D to PD and support• Necessary to ensure that whatever is promised-gets

delivered

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Foundation of Branding through Supply ChainB2B firms on Branding…

…depends on profitable bond between company and its customer

Make product within the prompt reach• Coca-Cola• Nirma (especially in rural market)

Logistics and Distribution• Powerful distribution channel creates exit barrier (Brand

Loyalty) for customers as well as entry barrier for new comers

• Example : Nirma vs. HLL (Rural market); NOKIA

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Role of SC in Brand Building…It helps to create mutual trust and operational excellence between the members/channel of SC to meet customer’s expectation

In todays era, it is tough to control information compared to the era of Mass Economy (1945-1995) having limited media, competition, and limited C2C communication

If company fails to fulfill customers’ requirement , even the technology enabled C2C communication will ensure that the Brand suffers – no matter how it is ‘positioned’…

In Demand Economy, branding effectiveness will be based on Supply Chain capability, multi-chain unification and relationship capital…hence it is important to support organization’s Brand creation process with SCM.

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Brand Promises

Performance

Style

Confidence

Affiliation

QualitySecurity

Service

Buying Experience

UsingExperience

Customer(Ex.: McDonalds)

Customer

• Hence, Brand and Marketing Executives who neglect the importance of Supply Chain in their Brand building process, they make a risky deal

• It should be kept in center that how influencing force of Supply Chain affects customer’s experience

• A zestful and aggressive customer can be lost due to even a one bad buying experience

• Refer to pictorial representation (Appendix 1)

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Destroys Brand

MARKETING

EFFORTS

SUPPLY CHAIN

MANAGEMENT

POOR

POOR

Negative

Customer Experience

GOOD

EFFECTIVE

Build Brand

Coordination of Good Marketing Efforts and Effective Supply Chain

Management

Positive Customer

Experience

Brand has to Struggle

Lesser

Customer Awareness &

Identity

Decreases Brand Image

Un-fulfilment

of Brand Promise

Appendix 1

Relationships of Supply Chain Management and

Marketing Efforts in Brand Building

QuestionsAny?

YouThank