the best and why

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THE BEST AND WHYTHE BEST AND WHYAlex Cherian K, Gayatri Deshpande, Samprita

Sinha, Manish Jairath, Paaji Lassiwaala



IntroductionIntroduction

Brand is one of the most valuable assetsaccounting for about a third of shareholder valueon average

Brands play a significant role in decision makingprocess

Importance of brands stretches acrossgeographies and across sectors

BrandZ, Interbrand help to measure the strengthof the brand by comprehensive analyses andbrand valuation techniques



ObjectiveObjective

To understand the Top Global and Indianbrands and what distinguishes them from others

To understand the levers through which brandvalue is created in order to identifyopportunities to grow the value of the brandand business

To understand how companies get financialreturns through brand strategy and marketinginitiatives



TOP GLOBAL BRANDSTOP GLOBAL BRANDS

BrandZTM Top 10 Global Brands InterBrand Top 10 Global Brands

BrandZ 2010 ranking - http://c1547732.cdn.cloudfiles.rackspacecloud.com/BrandZ_Top100_2010.pdf

Interbrand 2010 raniking - http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx



MethodologyMethodology

Measured by three basic Criterion

Financial Performance

Branded Earnings

Brand Strength



FINANCIAL PERFORMANCEFINANCIAL PERFORMANCE

NOPAT WACCEconomic Profit



Branded EarningsBranded Earnings

Economic Profits Role of Brands

Branded Earnings



Brand StrengthBrand Strength

A measure of what amount of future profits will be contributed bythe brand.

Measured by 10 parameters COMMITMENT

PROTECTION CLARITY

RESPONSIVENESS

AUTHENTICITY

RELEVANCE

UNDERSTANDING

CONSISTENCY

PRESENCE

DIFFERENTIATION



Brand ContributionBrand Contribution

It is the proportion of financial

value that is driven purely by

brand equity

It measures how effectively thebrand has connected with the

customers

As per the BrandZ report, this is

dominated by luxury brands, sinceconsumers do not mind paying

a high premium for their value



Apple INC.Apple INC.

Apple embodies strong brand equity, huge promise of the brand to

deliver high value

Apple's product strategy is to create innovative products and services

aligned with a "digital hub" strategy

Apple Macintosh computer products function as the digital hub for

digital devices, including the Apple iPod, personal digital assistants,

cellular phones, digital video and still cameras, and other electronic

devices

Apple has a branding strategy that focuses on the emotions

Apple brand personality is about

Lifestyle

Imagination

liberty regained

simplicity



Contd.Contd.

The price premium on an apple product contributedlargely to its brand development

Customer Experience

All touch points reinforce the Apple brand Entered into strategic alliances with other companies to

co-brand or distribute Apple's products and services

Apple has increased the accessibility of iPods through

various resellers that do not currently carry AppleMacintosh systems

Has increased the reach of its online stores.



What could have been betterWhat could have been better

Failure to provide perfectly functioning new products.

This year, iPhone 4·s reception glitches followed by a

public apology from Steve Jobs lead to public criticism.

Apple could also improve its corporate citizenshipprofile, which remains neutral



Mcdonald·sMcdonald·s

Objectives of Mc Donald's Brand Strategy

Widening customer base

Re-inventing its brand image

Stressing on the value aspect of the consumer

Expansion of food items



Widening Customer BaseWidening Customer Base

Mc Donald's, all over the world, mostly attract theupper or upper-middle class consumer segment.

Generally, the middle income customer group shies

away from the Mc Donald's joints due to aperception of high range food products.

Mc Donald's is trying to tap this market segment byoffering

Low priced food Family oriented environment where a person could chill

out with his/her family.



ReRe--invention of Brand Imageinvention of Brand Image

Mc Donald's has brought change in its traditional

colour composition for re-inventing its brand image

Restaurants of Mc Donald's are re-designed to 3

segments in accordance with target audience

Linger Zone

Flexible Zone

Grab and Go Zone



Stress on the Value aspect ofStress on the Value aspect of

ConsumerConsumer

Primary goal of this strategy is to woo the middle

class families which itself is a huge market in the

developing countries

Mc Donald's has started offering food articles which

are relatively cheap

Here ,in India, they have termed this ad campaign as

"value-for-money promiseµ



Expansion of food ItemsExpansion of food Items

Mc Donald is extending its food item base in

accordance with the special needs of women and

children

Women are offered premium salads

Skimmed milk and sliced apples for children



GoogleGoogle

Everything about Google is simple and clear



DettolDettol



Brand Equity·s Best Indian BrandsBrand Equity·s Best Indian Brands

Top 10 Service Brands

1 Vodafone

2 BSNL3 State Bank Of India

4 Life Insurance Corporation

5 Tata Indicom

6 Big Bazaar

7ICICIBank

8 Bank of India

9 Hindustan Petroleum

10 Bharti Airtel

Top 10 Most Trusted Brands



MethodologyMethodology

Methodology

The following were the criterion considered

Always maintains a high level of trust

Is worth the price it commands

Is a brand I would surely consider if I have to buy the

product

Has been a popular brand for many years

Has something that no other brand has

Evokes a feeling of confidence and pride among its users

Is very special brand with unique feelings associated to it



NokiaNokia

Nokia has always been a consumer-centric company

and a consumer award for ¶trust· is the pinnacle of

all awards

Understands the needs of the evolving Indian

consumer and connects with them

¶Made in India, Made for India· handsets

Services such as Nokia Life Tools Extensive retail and care networks



ColgateColgate

Use a ¶targeted approach· strategy

There is a product for everyone

They have a strong distribution network They have developed a trust amongst their users by

slowly weaning them away from tooth powders and

more indigenous oral care methods



LuxLux

Unique brand which has maintained it·s longevity byhaving a consistent communication and positioningstrategy

Tag line ² ´If it·s good enough for a film star, then it·s

good for you too to Play with beautyµ Consistent evolution - be it the soap colour, packaging

or new variants

Expanded the range of products (shower gels, liquid

soaps, moisturizing bars, etc.) which keeps customersexcited and competition on it·s toes

Hires only those celebrities who have attained highstature in order to product a similar image of the brand

the best and why

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