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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 l.jpg
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 l.jpg
Brand ki zaroorat kya thi?

  • One Consumer

  • One Need


  • Kiss ko choose karun -- Confusion!

Ek friday doh filmein l.jpg
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 l.jpg
Brand has…

  • Name, Symbol or Logo

  • Brand Purpose: Positioning

  • Values & Personality: Image

  • Bundle of Benefits: Promise

Consumer value maximiser l.jpg
Consumer: Value Maximiser

  • Brand: Biggest Value Driver!

  • Cap – Rs. 50/-

  • Cricket Team Cap – Rs. 500/-

  • Team Cap used by Tendulkar – Rs. 5000/-

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Brand Value…






Kya brand ho sakta hai l.jpg
Kya brand ho sakta hai?

  • Gaadi

  • Doodh

  • Atta

  • Namak

  • Kya nahin brand ho sakta hai?

Brands kya reality mein better hote hain l.jpg
Brands kya reality mein better hote hain?

  • Is Mercedes the best car?

  • Is IIM Ahmedabad the best b-school?

  • Maybe, maybe not!

  • Perception!

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Sounds easy!

  • One NIKE. 1000 FAILED NIKE!

  • Biggest challenge for a Marketer

  • 3C Challenge

    • Cash

    • Consistency

    • Clutter

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Brand Equity

Concept & Its Importance

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The Challenge

  • More Products

  • More Competitors

  • More Media

  • Same Consumers

  • Same Needs


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  • Price

  • Sales Promotions

  • Price Wars

  • Short-Term

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Mantra #2

  • Brand Building

  • Distinctive

  • Sustainable

  • Long-Term

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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”

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Components of Brand Equity

  • Awareness: Name & Symbols

  • Perceived Quality

  • Brand Associations

  • Brand Loyalty

  • Other Proprietary Brand Assets

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Awareness: Name & Symbols

  • Recognised vs. Unknown Brand

  • Familiarity drives perception

  • Familiar = Reliable + Good Quality

  • Unknown only a push option

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Brand Associations

  • People, situations, moods, needs that consumers relate a brand to/with

  • Helps the brand occupy a distinct mindspace

  • Drives purchase

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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

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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

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Other Proprietary Assets

  • Trademarks

  • Patents

  • Channel Relationships

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Consumer Based Brand Equity

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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

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Million Dollar Questions

  • What makes a strong brand?

  • How to build one?

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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)

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Brand Awareness

  • Recognition & Recall

  • Depth: How easily do they recall?

    • TOM: McDonald’s

  • Breadth: In what all situations do they recall?

    • Usage Occasions: Tropicana

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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

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Brand Attitude

  • What consumers think and feel about the brand

    • Brand Judgments: Opinion / Evaluation

    • Brand Feelings: Emotional Responses / Reactions

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Brand Attitude

  • Brand Judgments

    • Quality: Smirnoff

    • Credibility: Apple

    • Consideration: Sony

    • Superiority: Intel

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Brand Attitude

  • Brand Feelings

    • Warmth: Archies

    • Fun: Disney

    • Excitement: MTV

    • Security: SBI

    • Social Approval: Mercedes

    • Self-Respect: RbK

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Brand Relationship

  • Association with the Brand

    • Behavioral Loyalty: Fair & Lovely

    • Attitudinal Attachment: Budweiser

    • Sense of Community: Saab

    • Active Engagement: Enfield

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Term Project: Phase I

  • Understand the Current CBBE amongst the Target Market

  • FGDs / DIs

  • Users / Lapsers

  • Define it as given in the subsequent slide

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Loyalty, Community, Engagement


Smart Shopper

Good Value / Credibility


For Every Internet User

Conv., Variety, Low Prices


Books, Music & Videos

CBBE for Amazon

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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

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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

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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

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Cause #3

  • Single Product (Ambassador)

    • No portfolio

    • No extensions

  • Problem?

    • Visibility

    • Stature

    • Decline in segment

    • Decline in product

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Cause #4

  • Excessive Pricing (Daewoo Cielo)

    • Premium pricing

    • High margins

    • Entry of Competition

    • Feeling of being cheated

    • Private Labels

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Cause #5

  • Wrong extensions (Pune Mirror)

    • Bad products

    • Crowded categories

    • Lower image products / segments

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Cause #6

  • Communication (Kelvinator)

    • Low levels of communication

    • Wrong message

    • Low impact

    • Brand Ambassador

    • Production values

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Cause #7

  • Channel management (CrossWord)

    • Attitude of Sales Team

    • Margins

    • No push

    • Emergence of alternate channel

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Cause #8

  • Ageing (HMT Watches)

    • Old age

    • No makeover (Product / Communication)

    • Perceived as ‘Not for me’

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Cause #9

  • Lack of differentiation (Acer Computers)

    • Cluttered market

    • No USP

    • No competitive advantage

    • ‘Me Too’ Branding

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Cause #10

  • Tough Consumer

    • Less emotional

    • Lowering levels of loyalty

    • Flirtatious attitude

    • More knowledge driven

    • Connected via media

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Exercise: Failed Indian Brands

  • Weikfield Jelly

  • Maruti Zen Estillo

  • Yamaha RX-100

  • Roohafza

  • Margo Soap

  • Kinetic Scooter

  • Fiat (Ageing)

  • Moti Soap

  • Savlon

  • Milkfood

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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

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#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

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#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

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#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

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#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)

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#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

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#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

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#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

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#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

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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

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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

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Brand Extensions

Why? When? How?

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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)

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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

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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

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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

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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)

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Moving Down

  • Why?

    • Competition

    • Private Labels

  • Challenge

    • Protecting the Brand

    • Distinguish the Extension

      • Sub-Branding

      • Product

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Moving Up

  • Why?

    • Potential User Base

    • Higher Margins

  • Challenge

    • Managing Credibility

    • Sub-Brand with a Descriptor (Kodak GOLD)

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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)

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Extensions in Portfolio

  • Cannibalisation

  • Distinct Role

  • Incremental Share

  • Different Needs

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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?