Understanding brand identity & brand positioning in cement industry a case study

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Brand Identity is the way the customers percieve a brand. A ca

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Understanding brand identity & brand positioning in cement industry a case study

  1. 1. Background• Study focusing on a Cement Industry in certain region in India• Objectives of the Study • Determining brand image of four brands : Brand A , Brand B, Brand C and Brand D • Understanding of brand relationships• Study conducted with Influencers (Engineers), Dealers, Distributors/Promoters & End-Customer (Individual House Builders – IHB) www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  2. 2. INFLUENCER’S POINT OF VIEWON THE BRANDS www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  3. 3. Decision Making Process of Influencers• Influencers of three categories covered  Structural Engineers  Civil Engineers  Architects Structural engineers have a biggest & fairly direct influence Structural engineers have a biggest & fairly direct influence www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  4. 4. Cement in Overall Construction Decisions• Raw material decisions come after ‘designing’ decisions• Designing decisions include  Aesthetics which is responsibility of architect  Structural designing responsibility of structural engineers• Raw materials- construction materials include  cement, steel, wood, sand, metal, finishing items (plumbing, flooring, plastering, light fittings)• Cement and steel considered the most critical input into construction  Cement is the binding agent Cement, the most critical decision Cement, the most critical decision www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  5. 5. Influencers : Key Findings• Perceived difference in quality between cement from mini- plants & big brands• Surrogate indicators like ISI, ISO used to distinguish one mini- plant brand from other  “If mini-plants have ISI mark then it really does not matter”• Quality of the big brands is similar  “all are big plants”  “the q-test would show similar strength”• Decision process different for the two types of clients  IHB for their own house/ bungalow  Big clients- Builders/Contractors for residential complexes www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  6. 6. Influencer’s Interaction with IHB Segment• IHB Clients depend more on structural engineer/ architect- since do not have technical know-how• IHB want the best without any compromise• Architects/ engineers ‘play it safe’ suggest 3-4 brands• Brand B perceived to be salient amongst IHB• Change of brand during construction due to lack of proper planning Influencers recognize brand pull,refuse to take a stand in IHB segment Influencers recognize brand pull,refuse to take a stand in IHB segment www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  7. 7. Influencer’s Interaction with Builders• Builders have a technical knowledge,• Not much difference in brand’s quality• A 2-3 rupee per bag amounts to a considerable saving in overall project• Will not take kindly non-availability since this would lead to delays in project Price & Availability Critical Price & Availability Critical www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  8. 8. Brand Personality: Brand CINFLUENCERS•Modern, Confident Celebrity •UP TO DATE WITH THE LATEST •KNOWS HIS MIND- WILL DEFINITELY PROGRESS•Doesn’t need us, we don’t need him either •DOES NOT MIX WITH EVERYBODY, DOES NOT LET US IN •PERSONALLY A STRANGER •LIVING IN A FARMHOUSE- ISOLATED•Self Obsessed :Sonia Gandhi, Shahrukh Khan www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  9. 9. Brand Personality: Brand AINFLUENCERS•Friendly • APPROACHABLE, TAKES EVERYBODY ALONG •MILANSAAR,NO EGO•Mature, Self Made •SELF- MADE- WORKED HIS WAY UP •HAS EXPERIENCE,MATURE•Veteran, not the first : L..K. Advani www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  10. 10. Brand Personality: Brand BINFLUENCERS•Respected, Trusted •PRAISEWORTHY •MOST RESPECTED,MOST TRUSTED•Young & Affluent •IN HIS 30s, RESIDES IN A POSH AREA •RELIABLE,FULFILS A PROMISE•Not a Bum Chum •SOMEWHAT EGOISTIC www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  11. 11. Brand Personality: Brand DINFLUENCERS•Down to Earth •HUMBLE •STRAIGHT- NO PRETENSIONS•Has Potential • PROGRESSIVE •IMPROVING •HAS POTENTIAL www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  12. 12. RETAILER’S POINT OF VIEW ONTHE BRANDS www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  13. 13. Customer Profile• All classes- 1 bag to 500 bags• Come through business/ personal contacts• IHB : Small construction work• Contractors :Big work for IHB, Builders www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  14. 14. Stocking Pattern• Cannot over-stock cement  Requires go-down space  Unlike bricks/sand, cement needs shelter• Stock as and when we require  Big companies can reach us by evening if we order in the morning• Purchasing strategy ,key to success  Route of purchase  Certain brands allow for diversion of non-trade material into trade segment  Type of brands  Mini plant brands allow for credit. The money generated is used to pay advance for big brands  Two companies/sister outfits stocking competitive brands Purchasing Strategy key to Profitability Purchasing Strategy key to Profitability www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  15. 15. Brand Pull• Most customers know their mind.• If they want a brand that I don’t stock  Contact somebody /sister company who stocks the brand demanded• Demand of brand of cement varies by area  Pockets existing due to earlier strong network of dealers• Builder generally perceived to want the cheapest brand Recognize the criticality of brand pull Recognize the criticality of brand pull www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  16. 16. Margins• Keeping the investment in mind; can’t settle for less than Rs. 5 as margin• Actual margins are in other building material; not in cement  Cement like a loss leader.Pulls other material along with it  Margins in building material up to 25%• Price fluctuations  Cannot avail full benefits of any scheme.Price fluctuations & policies lead to confusion. Feel cheated www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  17. 17. On Distributors/Promoters• Brand B stands out, but only just  Brand B waala zyaada aate hain….structural engineer aate hain…customer impress hota hai• No perceived differences in behaviour of distributors of different brands.• Distributor perceived as company’s man• Cat & Mouse game with distributor  Sometimes they win,sometimes we win No love lost for Distributor No love lost for Distributor www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  18. 18. Trade ,Non-Trade • Current system biased towards Non-Trade • Leads to anti-contractor/builder feelings  Have no asset, no standing in market; yet get cement at a cheaper rate  We pay deposit. They may be fly-by-night operators • Feel the pressures of meeting targets leads to these practicesLong term relationship with company not rewarded Long term relationship with company not rewarded www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  19. 19. Stocking brands• No brand can pressurize us to stock just theirs except Brand B  We stock others but not on the counter  If Brand C says, why stocked this… we say…oh this is of our friend…he did not have space…just for today• Exclusive Dealership of a brand is not liked  Have to chase targets  Binds us without any benefits  One of the respondents stocking 8 brands- without dealership of any one brand. Is very happy.• RAJASTHAN- GUJARAT BRANDS  Rajasthan brands are lesser quality,lower priced  Have limited targets in Gujarat- not too interfering Exclusive relationship, a loss making proposition Exclusive relationship, a loss making proposition www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  20. 20. Brand Personality: Brand C RETAILERSINFLUENCERS •Young & Robot Like•Modern, Confident Celebrity • FORMAL, DISTANT, BUSINESS LIKE •UP TO DATE WITH THE LATEST •Healthy & Stout •KNOWS HIS MIND- WILL DEFINITELY PROGRESS •HEALTHY,STOUT EXTERIOR- TIRED INTERIOR (SURRENDERED TO BIRLA)•Doesn’t need us, we don’t need him either •DOES NOT MIX WITH EVERYBODY, DOES NOT LET US IN •One Sided Relationship •NOT A BENEFICIAL RELATIONSHIP •PERSONALLY A STRANGER •HAVE TO SNATCH YOUR RIGHT •LIVING IN A FARMHOUSE- ISOLATED•Self Obsessed :Sonia Gandhi, Shahrukh Khan www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  21. 21. Brand Personality: Brand AINFLUENCERS RETAILERS•Friendly • APPROACHABLE, TAKES EVERYBODY ALONG •Mature & Elderly •MILANSAAR,NO EGO •SAMAJHDAAR,52 YEARS, LIKE AN ELDER FAMILY •CAN RELATE TO HIM LIKE A GRANDSON•Mature, Self Made •SELF- MADE- WORKED HIS WAY UP •Out of Touch with Times •HAS EXPERIENCE,MATURE •LISTEN TO HIM BUT DO NOT IMPLEMENT •IS NOT VALUED ANYMORE (KADAR NAHIN)•Veteran, never the first : L..K. Advani •HAS LOST TOUCH OF OUR REALITY •FEEL CANT RELY ON HIM www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  22. 22. Brand Personality: Brand BINFLUENCERS RETAILERS•Respected, Trusted •PRAISEWORTHY Young & Strong •MOST RESPECTED,MOST TRUSTED •20-25; EAGERNESS TO WORK IN FUTURE•Young & Affluent •Reliable •IN HIS 30s, RESIDES IN A POSH AREA •Beneficial Relationship •RELIABLE,FULFILS A PROMISE •ONE IS LIKELY TO BENEFIT, NEVER LOSE•Not a Bum Chum •SOMEWHAT EGOISTIC •Higher Status,Not Easy to Approach •DOMINATES •ONE NEEDS TO PAY A PRICE FOR MAINTAINING FRIENDSHIP WITH SOMEBODY HIGHER THAN SELF www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  23. 23. Brand Personality: Brand DINFLUENCERS RETAILERS •Female, Brand A’s Sibling•Down to Earth •SISTER OF Brand A •HUMBLE •HAS COME BACK FROM IN-LAWS PLACE •STRAIGHT- NO PRETENSIONS •A Liability on Brand A•Has Potential •BURDEN ON Brand A • PROGRESSIVE •ALL HER LIFE HAS TAKEN FROM EVERYBODY •IMPROVING •NO FUTURE •HAS POTENTIAL •WILL AFFECT Brand A NEGATIVELY www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  24. 24. IHB POINT OF VIEW ON THEBRANDS www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  25. 25. Views About ‘Cement’• Construction of house is a high involvement process and a logistical nightmare  ‘Pareshaani-bahut kaam; Logon ko, material ko ikaththa karo’• For a ‘ghar’, main considerations are:  Economical use of space  Should be strong- last more than a lifetime  More so after the earthquake• Cement, bricks and steel considered the main things for construction www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  26. 26. Role of Cement• Cement, considered most important because it’s the binding agent  “Pakar banata”• Cement, unlike Bricks & Steel, provides plethora of choices  Quite a few brands in the market  Available in grades• No compromise on material• Once in a lifetime decision No room for compromise. Low Price Sensitivity No room for compromise. Low Price Sensitivity www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  27. 27. Decision Process For Cement• Cement considered an area where intricacies of how product works not known  This considered a handicap  Further makes people risk-averse  “how do we know how it sets and makes everything strong..’  “Just for a house one will not go to a lab to test”• A lot of consideration- search for information  Survey amongst those who have already built a house  “Discussed with a business colleague”  “Bhai sahab, unhone do mahine pahle hi ghar banaya tha”  Consult the ‘experts’  “Architect ya engineer se bhi poochte hain..” Little knowledge & high involvement makes people risk averse Little knowledge & high involvement makes people risk averse www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  28. 28. Decision Process For Cement• Most people have already formed an opinion on what is the best  Word of mouth, advertising play a key role  View of others taken just to confirm self view• A little skeptical of ‘expert’ view  “Unka to kaam hi yahi hai….Humne to ek baar banana hai..”  “Told us to use different grade for roof…walls…i did not”  Few take the expert advice of ‘choosing amongst the four brands’ seriously• The salient brand wins Own belief about the ‘best cement’ that wins Own belief about the ‘best cement’ that wins www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  29. 29. Decision Process for Cement• Notion of it being a little expensive is all the more assuring  “Abhi chaar- paanch rupaye ke liye samjhauta thori karenge”• Proximity of shop not an issue  Home delivery  Contractor can hunt for the shop• Retailer’s influence non-existent Expensive=Reassuring. Availability & Push, not an issue Expensive=Reassuring. Availability & Push, not an issue www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  30. 30. SUMMARY OF BRAND IDENTITY& POSITIONING www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  31. 31. Brand Personality: Brand C INDIVIDUAL HOUSE BUILDER •Stands Out,Respected •MATURE •GOOD PERSONALITY •NOT A COMMONER •Formal Relationship •NOT MUCH FRIENDLY •PURELY PROFESSIONAL •JUST A HI-HELLO FRIEND RETAILERSINFLUENCERS •Young & Robot Like•Modern, Confident Celebrity • FORMAL, DISTANT, BUSINESS LIKE •UP TO DATE WITH THE LATEST •Healthy & Stout •KNOWS HIS MIND- WILL DEFINITELY PROGRESS •HEALTHY,STOUT EXTERIOR- TIRED INTERIOR (SURRENDERED TO BIRLA)•Doesn’t need us, we don’t need him either •DOES NOT MIX WITH EVERYBODY, DOES NOT LET US IN •One Sided Relationship •NOT A BENEFICIAL RELATIONSHIP •PERSONALLY A STRANGER •HAVE TO SNATCH YOUR RIGHT •LIVING IN A FARMHOUSE- ISOLATED•Self Obsessed :Sonia Gandhi, Shahrukh Khan www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  32. 32. Brand Personality: Brand A INDIVIDUAL HOUSE BUILDER •Old,Common Man •Mature,Not Listened to •SPEAKS THE RIGHT THING- PEOPLE ARE NOT TRUSTING HIM •Stranger •NOT MUCH AFFECTION FOR HIM- DON’T KNOW IF IT ALSO CARES •Mutually Indifferent RelationshipINFLUENCERS RETAILERS•Friendly • APPROACHABLE, TAKES EVERYBODY ALONG •Mature & Elderly •MILANSAAR,NO EGO •SAMAJHDAAR,52 YEARS, LIKE AN ELDER FAMILY •CAN RELATE TO HIM LIKE A GRANDSON•Mature, Self Made •SELF- MADE- WORKED HIS WAY UP •Out of Touch with Times •HAS EXPERIENCE,MATURE •LISTEN TO HIM BUT DO NOT IMPLEMENT •IS NOT VALUED ANYMORE (KADAR NAHIN)•Veteran, never the first : L..K. Advani •HAS LOST TOUCH OF OUR REALITY •FEEL CANT RELY ON HIM www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  33. 33. Brand Personality: Brand B INDIVIDUAL HOUSE BUILDER • Sumo Wrestler in Thirties •STRONG,FRIENDLY,HEALTHY •Bodyguard •WILL PROTECT US •Lasting Relationship, Very Reliable •GIVE ALL TASKS TO HIM; AND BE CAREFREE •Good Future •WILL BE MOST SUCCESSFUL •BEST WISHES AND AFFECTIONINFLUENCERS RETAILERS•Respected, Trusted •PRAISEWORTHY Young & Strong •MOST RESPECTED,MOST TRUSTED •20-25; EAGERNESS TO WORK IN FUTURE•Young & Affluent •Reliable •IN HIS 30s, RESIDES IN A POSH AREA •Beneficial Relationship •RELIABLE,FULFILS A PROMISE •ONE IS LIKELY TO BENEFIT, NEVER LOSE•Not a Bum Chum •SOMEWHAT EGOISTIC •Higher Status,Not Easy to Approach •DOMINATES •ONE NEEDS TO PAY A PRICE FOR MAINTAINING FRIENDSHIP WITH SOMEBODY HIGHER THAN SELF www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  34. 34. Brand Personality:Brand D INDIVIDUAL HOUSE BUILDER • Confusing Imagery •OLD- VERY MATURE •A GIRL –YOUNG, INNOCENT, •A NEWCOMER •Brand A Association •SAME COMPANY AS Brand AINFLUENCERS RETAILERS •Female, Brand A’s Sibling•Down to Earth •SISTER OF Brand A •HUMBLE •HAS COME BACK FROM IN-LAWS PLACE •STRAIGHT- NO PRETENSIONS •A Liability on Brand A•Has Potential •BURDEN ON Brand A • PROGRESSIVE •ALL HER LIFE HAS TAKEN FROM EVERYBODY •IMPROVING •NO FUTURE •HAS POTENTIAL •WILL AFFECT Brand A NEGATIVELY www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.
  35. 35. Contact Or VisitSarvajeet Chandra¥ +91 9920803060,sarvajeet@sapphirez.in, sarvajeetchandra@gmail.comVisit Us¥ www.mastersungroup.com¥ www.facebook.com/strategyexecution www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.

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