what are brands good for?

What Are Brands Good For?

Niraj Dawar

What are Brands?

-Sanket. Shah,VJTI Mumbai 2

What are Brands?


Brands attract consumers with promises Volvo Tide


What benefit customers have?

o Reduce risk of buying goods o Easy purchase decision

Why Company bothers building Brand?


Asset Consumer Trust Charge Premium


Why Company bothers building Brand?

How do they build brands?

Advertising

Mass-Media Communication

Consumer mentality

Marketing Efforts


Is Aggregation still efficient ?


Information Revolution Undermines logic of Aggregation


Why is Dis-aggregation more efficient?

Customer Relationship Marketing Direct marketing Information-based marketing Consumer Interaction


Faults with Aggregation?


Mass-Media Communication • One-Way

Communication

• Irrelevant information

• No personal interaction


So, What are Brands Good for?

Let’s Examine Brand management

Consumer Relationship

• Two-Flow Relationship

• Understand Consumer History

• Be more Adaptive and responsive to individual needs


Consumer Relationship They adapted to their customer needs


Consumer Relationship

Understood Consumer’s history


Expected Results Retreat Redundant

Information Avoid Cash burn


Is dis-aggregation marketing new?


Why wasn’t it tried before?


Why use this strategy now?

Business expanded to offer services now-a-days


Why now use this strategy?

Business expanded to offer services now-a-days


So were they wrong till now?

Before Today


So were they wrong till now?

Before Today Segment-Level

domination


Role of Brand Managers

Aggregation Marketing

• Manage Portfolio of brands

• Mass-Media

Communication

Dis-aggregation Marketing

• Manage Consumer Profitably.

• Become team player

rather then individual starts


Channel Relationship


Balance Manufacture, Retail and consumer


What Retailers do?


Why are they important? They focus on Manufacturers’ marketing and sales volume

They have Potential to attract consumer on a local-level


Retailer As Threat


Retailer As Threat

Rival in Consumer Relationship with Manufacturers


Is it possible eliminate it?

Disaggregation can help eliminate


Is it possible eliminate it?

Disaggregation can help eliminate

Manufacturer can influence consumer independent of the retailers


Difficulties to eliminate Customer prefer one to many Retailers aren’t Idle

First mover can endure the competition


Why is difficult to compete with retailers?

Manufacturer sells Brands They sell 40,000 Product stocks


Information driven Marketing

They use customer data to personalised shopping experience -Sanket. Shah,VJTI Mumbai 39

Retailers and Brand Power Retailers use their products as to attract customer

Their products have a trust-quotient among customers


Brand Management Organisation


Brand management removal

Established brands find difficult to change to segment-level and focus on only consumer


Brand management removal

Established brands find difficult to change to segment-level and focus on only consumer

Example like Packaged Goods industries -Sanket. Shah,VJTI Mumbai 44

Why can’t they remove brands?

They treat it as Add-on in Marketing


Why can’t they remove brands?

But this is different approach of marketing


Information Age

Before • Mass Media

Communication was used when no data of consumers was there

Now • Ease of access due to email

and web ad and educated consumers

• Access to customer shopping pattern and data


Disaggregation impact in brand management

Brand management • Success is measure by

Sales volume, product profitability and dollar sales

• Focus is on message development, branding and marketing skills

Disaggregation • Success is measure by

segment-level profitability and depth of customer relationship

• Focus is on developing knowledge of consumers segment and its behaviour


Brands with changing approach


How to change approach?

Target communication such as web newsletter, e-mail, social media to influence consumers

Analysis customer data and interpret it


How to change approach?


Should Brands change?

Mass Media has its benefits for branding as it reaches large customer base

In Internet age also with media segmentation, Brands have flourish till now


Disaggregation or Aggregation?

• Find your brand purpose • Target consumer base • Balance out profit earning–Customer-level or

Brand-level? • Balance out possibility–Aggregation or

Disaggregation marketing?


Thank you!

This slides was created by Sanket. Shah from VJTI, Mumbai during an internship with Prof. Sameer Mathur, IIM- Lucknow


what are brands good for?

Marketing

vjti mumbai

consumer sanket

manufacturers sanket

threat sanket

today sanket

days sanket

channel relationship

consumers history sanket