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BRANDS. Brand Kya Hota Hai?. You & Me Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it Origin: Brandr. Brand ki zaroorat kya thi?. One Consumer One Need MANY PRODUCTS Kiss ko choose karun -- Confusion!. Ek Friday. Doh Filmein!. Comedy vs. Comedy

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brand kya hota hai
Brand Kya Hota Hai?
  • You & Me
  • Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it
  • Origin: Brandr
brand ki zaroorat kya thi
Brand ki zaroorat kya thi?
  • One Consumer
  • One Need
  • MANY PRODUCTS
  • Kiss ko choose karun -- Confusion!
ek friday doh filmein
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
brand has
Brand has…
  • Name, Symbol or Logo
  • Brand Purpose: Positioning
  • Values & Personality: Image
  • Bundle of Benefits: Promise
consumer value maximiser
Consumer: Value Maximiser
  • Brand: Biggest Value Driver!
  • Cap – Rs. 50/-
  • Cricket Team Cap – Rs. 500/-
  • Team Cap used by Tendulkar – Rs. 5000/-
brand value
Brand Value…

IMAGE DRIVER

CONVENIENCE

RISK REDUCTION

PROMISE

MEANS OF IDENTIFICATION

kya brand ho sakta hai
Kya brand ho sakta hai?
  • Gaadi
  • Doodh
  • Atta
  • Namak
  • Kya nahin brand ho sakta hai?
brands kya reality mein better hote hain
Brands kya reality mein better hote hain?
  • Is Mercedes the best car?
  • Is IIM Ahmedabad the best b-school?
  • Maybe, maybe not!
  • Perception!
sounds easy
Sounds easy!
  • One NIKE. 1000 FAILED NIKE!
  • Biggest challenge for a Marketer
  • 3C Challenge
    • Cash
    • Consistency
    • Clutter
brand equity

Brand Equity

Concept & Its Importance

the challenge
The Challenge
  • More Products
  • More Competitors
  • More Media
  • Same Consumers
  • Same Needs
  • GROWTH MANTRA?
mantra 1
MANTRA #1
  • Price
  • Sales Promotions
  • Price Wars
  • Short-Term
mantra 2
Mantra #2
  • Brand Building
  • Distinctive
  • Sustainable
  • Long-Term
what is brand equity
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”

components of brand equity
Components of Brand Equity
  • Awareness: Name & Symbols
  • Perceived Quality
  • Brand Associations
  • Brand Loyalty
  • Other Proprietary Brand Assets
awareness name symbols
Awareness: Name & Symbols
  • Recognised vs. Unknown Brand
  • Familiarity drives perception
  • Familiar = Reliable + Good Quality
  • Unknown only a push option
brand associations
Brand Associations
  • People, situations, moods, needs that consumers relate a brand to/with
  • Helps the brand occupy a distinct mindspace
  • Drives purchase
perceived quality
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
brand loyalty
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
other proprietary assets
Other Proprietary Assets
  • Trademarks
  • Patents
  • Channel Relationships
slide23

CBBE

Consumer Based Brand Equity

case for building a brand
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
million dollar questions
Million Dollar Questions
  • What makes a strong brand?
  • How to build one?
the 4 fundamental questions
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)
brand awareness
Brand Awareness
  • Recognition & Recall
  • Depth: How easily do they recall?
    • TOM: McDonald’s
  • Breadth: In what all situations do they recall?
    • Usage Occasions: Tropicana
brand knowledge
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
brand attitude
Brand Attitude
  • What consumers think and feel about the brand
    • Brand Judgments: Opinion / Evaluation
    • Brand Feelings: Emotional Responses / Reactions
brand attitude30
Brand Attitude
  • Brand Judgments
    • Quality: Smirnoff
    • Credibility: Apple
    • Consideration: Sony
    • Superiority: Intel
brand attitude31
Brand Attitude
  • Brand Feelings
    • Warmth: Archies
    • Fun: Disney
    • Excitement: MTV
    • Security: SBI
    • Social Approval: Mercedes
    • Self-Respect: RbK
brand relationship
Brand Relationship
  • Association with the Brand
    • Behavioral Loyalty: Fair & Lovely
    • Attitudinal Attachment: Budweiser
    • Sense of Community: Saab
    • Active Engagement: Enfield
term project phase i
Term Project: Phase I
  • Understand the Current CBBE amongst the Target Market
  • FGDs / DIs
  • Users / Lapsers
  • Define it as given in the subsequent slide
cbbe for amazon

BRAND RELATION

Loyalty, Community, Engagement

BRAND ATTITUDE

Smart Shopper

Good Value / Credibility

BRAND KNOWLEDGE

For Every Internet User

Conv., Variety, Low Prices

BRAND AWARENESS

Books, Music & Videos

CBBE for Amazon
what is a declining brand
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
cause 1
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
cause 2
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
cause 3
Cause #3
  • Single Product (Ambassador)
    • No portfolio
    • No extensions
  • Problem?
    • Visibility
    • Stature
    • Decline in segment
    • Decline in product
cause 4
Cause #4
  • Excessive Pricing (Daewoo Cielo)
    • Premium pricing
    • High margins
    • Entry of Competition
    • Feeling of being cheated
    • Private Labels
cause 5
Cause #5
  • Wrong extensions (Pune Mirror)
    • Bad products
    • Crowded categories
    • Lower image products / segments
cause 6
Cause #6
  • Communication (Kelvinator)
    • Low levels of communication
    • Wrong message
    • Low impact
    • Brand Ambassador
    • Production values
cause 7
Cause #7
  • Channel management (CrossWord)
    • Attitude of Sales Team
    • Margins
    • No push
    • Emergence of alternate channel
cause 8
Cause #8
  • Ageing (HMT Watches)
    • Old age
    • No makeover (Product / Communication)
    • Perceived as ‘Not for me’
cause 9
Cause #9
  • Lack of differentiation (Acer Computers)
    • Cluttered market
    • No USP
    • No competitive advantage
    • ‘Me Too’ Branding
cause 10
Cause #10
  • Tough Consumer
    • Less emotional
    • Lowering levels of loyalty
    • Flirtatious attitude
    • More knowledge driven
    • Connected via media
exercise failed indian brands
Exercise: Failed Indian Brands
  • Weikfield Jelly
  • Maruti Zen Estillo
  • Yamaha RX-100
  • Roohafza
  • Margo Soap
  • Kinetic Scooter
  • Fiat (Ageing)
  • Moti Soap
  • Savlon
  • Milkfood
why revitalise
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
1 increase usage
#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
1 increase usage54
#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
2 finding new uses
#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
3 entering new markets
#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)
4 repositioning the brand
#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
5 augmenting the product
#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
6 obsoleting existing products
#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
7 extending the brand
#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
option 1 milking
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
option 2 divestment or liquidation
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
brand extensions

Brand Extensions

Why? When? How?

what is a brand extension
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)
why brand extensions
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
why brand extensions67
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
how do consumers evaluate
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
how much to extend
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)
moving down
Moving Down
  • Why?
    • Competition
    • Private Labels
  • Challenge
    • Protecting the Brand
    • Distinguish the Extension
      • Sub-Branding
      • Product
moving up
Moving Up
  • Why?
    • Potential User Base
    • Higher Margins
  • Challenge
    • Managing Credibility
    • Sub-Brand with a Descriptor (Kodak GOLD)
risks in extension
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)
extensions in portfolio
Extensions in Portfolio
  • Cannibalisation
  • Distinct Role
  • Incremental Share
  • Different Needs
key questions
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?