Building brands


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Building brands

  1. 1. Contributed by members of Building brands EXECUTIVE SUMMARY“What’s in a name? A rose is a rose and would smell as sweet even if called by any othername”These famous words uttered by Shakespeare’s Juliet sends us into raptures, but marketersand consumers would not respond to this reasoning favorably. Brands rule over themarketer and consumers’ minds. Enormous resources, time and energy are spent inbuilding and nurturing brands. Why? A brand distinguishes the products and servicesoffered by one seller from another.A company may be armed with all the statistics and facts as to why their product orservice is superior - but if it doesn’t have an image, a personality for the audience toconnect with - their message falls flat. What you are selling is always more than theproduct/service. Its a personality, a face with which your target customers want to dobusiness. Thus, the success of branding lies in truly understanding who you are and whoyour target audience is.The cigarette brand Charms’ pack has a unique indigo blue print, like faded jeans fabric.The package design was intended to strike a cord with young customers who identifiedwith ‘freedom’, because jeans symbolized freedom. Marketers use “slender tall” bottlesto communicate feminine qualities. What is an athletic shoe with a ‘swoosh’ logo on it?‘Swoosh’ is a concept- it is all about winning and action.Brands create a perception in the mind of the customer that there is no other product orservice on the market that is quite like yours. A brand promises to deliver value uponwhich consumers and prospective purchasers can rely to be consistent over long periodsof time.TY.BMS 1 Project source URL
  2. 2. Contributed by members of Building brands CHAPTER 1TY.BMS 2 Project source URL
  3. 3. Contributed by members of Building brands I TRODUCTIOBranding today is a blend of art and science and the topic is of interest to both academicsand practitioners. Huge amount of money is being spent by marketers to develop brands,with a conviction that brand building, will create brand differentiation. While the intrinsicvalue with regard to functionality, is created by the marketer through the offering,consumer psyche plays a vital role with regard to short and long term effects of brandassociations. Besides brand associations, cultural dimensions plays an important role withregard to both branding associations and how consumer’s mind adapts to thedevelopment of brand associations.Take a look at the list below that shows the world’s top 10 brands in 2002 (as measuredby value):1 Coca-Cola ($69.6)2 Microsoft ($64.1)3 IBM ($51.2)4 GE ($41.3)5 Intel ($30.9)6 Nokia ($30.0)7 Disney ($29.3)8 McDonalds ($26.4)9 Marlboro ($24.2)10 Mercedes ($21.0) Source: Interbrand; JP Morgan Chase, 2008Why do companies such as Coca-Cola, Microsoft, IBM and Disney seem to achieveglobal marketing success so easily? Why does it seem such an effort for others?Why do we, as consumers, feel loyal to such brands that the mere sight of theirlogo hasus reaching into our pockets to buy their products?TY.BMS 3 Project source URL
  4. 4. Contributed by members of Building brands1.1 The meaning of brandsBrands are a means of differentiating a company’s products and services from those ofits competitors.There is plenty of evidence to prove that customers will pay a substantial price premiumfor a good brand and remain loyal to that brand. It is important, therefore, to understandwhat brands are and why they are important.Macdonald sums this up nicely in the following quote emphasising the importance ofbrands:“…it is not factories that make profits, but relationships with customers, and it iscompany and brand names which secure those relationships”Businesses that invest in and sustain leading brands prosper whereas those that fail areleft to fight for the lower profits available in commodity markets.A brand is a collection of images and ideas representing an economic producer; morespecifically, it refers to the descriptive verbal attributes and concrete symbols such as aname, logo, slogan, and design scheme that convey the essence of a company, product orservice. Brand recognition and other reactions are created by the accumulation ofexperiences with the specific product or service, both directly relating to its use, andthrough the influence of advertising, design, and media commentary. A brand is asymbolic embodiment of all the information connected to a company, product or service.A brand serves to create associations and expectations among products made by aproducer. A brand often includes an explicit logo, fonts, color schemes, symbols andsound which may be developed to represent implicit values, ideas, and even personality.The key objective is to create a relationship of trust.The brand, and "branding" and brand equity have become increasingly importantcomponents of culture and the economy, now being described as "cultural accessoriesand personal philosophies".TY.BMS 4 Project source URL
  5. 5. Contributed by members of Building brandsIn non-commercial contexts, the marketing of entities which supply ideas or promisesrather than product and services (e.g. political parties or religious organizations) may alsobe known as "branding".One definition of a brand is as follows:“A name, term, sign, symbol or design, or a combination of these, that is intended toidentify the goods and services of one business or group of businesses and to differentiatethem from those of competitors”.Interbrand - a leading branding consultancy - define a brand in this way:“A mixture of tangible and intangible attributes symbolised in a trademark, which, ifproperly managed, creates influence and generates value”.TY.BMS 5 Project source URL
  6. 6. Contributed by members of Building brandsThree other important terms relating to brands should be defined at this stage:Brand equity“Brand equity” refers to the value of a brand. Brand equity is based on the extent towhich the brand has high brand loyalty, name awareness, perceived quality and strongproduct associations. Brand equity also includes other “intangible” assets such as patents,trademarks and channel relationships.Brand image“Brand image” refers to the set of beliefs that customers hold about a particular brand.These are important to develop well since a negative brand image can be very difficult toshake off.Brand extension“Brand extension” refers to the use of a successful brand name to launch a new ormodified product in a new market. Virgin is perhaps the best example of how brandextension can be applied into quite diverse and distinct markets.1.2 Brands and productsBrands are rarely developed in isolation. They normally fall within a business’ productline or product group.A product line is a group of brands that are closely related in terms of their functions andthe benefits they provide. A good example would be the range of desktop and laptopcomputers manufactured by Dell.A product mix relates to the total set of brands marketed by a business. A product mixcould, therefore, contain several or many product lines. The width of the product mix canbe measured by the number of product lines that a business offers.TY.BMS 6 Project source URL
  7. 7. Contributed by members of Building brandsFor a good example, visit the web site of Hewlett-Packard (“HP”). HP has a broadproduct mix that covers many segments of the personal and business computing market.How many separate product lines can you spot from their web site?Managing brands is a key part of the product strategy of any business, particularly thoseoperating in highly competitive consumer markets.1.3 Types of brandThere are two main types of brand – manufacturer brands and own-label brands.Manufacturer brandsManufacturer brands are created by producers and bear their chosen brand name. Theproducer is responsible for marketing the brand. The brand is owned by the producer.By building their brand names, manufacturers can gain widespread distribution (forexample by retailers who want to sell the brand) and build customer loyalty (think aboutthe manufacturer brands that you feel “loyal” to).Own label brandsOwn-label brands are created and owned by businesses that operate in the distributionchannel – often referred to as “distributors”.Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entireproduct range will be own-label. However, more often, the distributor will mix own-labeland manufacturers brands. The major supermarkets (e.g. Tesco, Asda, Sainsbury’s) areexcellent examples of this.Own-label branding – if well carried out – can often offer the consumer excellent valuefor money and provide the distributor with additional bargaining power when it comes tonegotiating prices and terms with manufacturer brands.TY.BMS 7 Project source URL
  8. 8. Contributed by members of Building brands CHAPTER 2TY.BMS 8 Project source URL
  9. 9. Contributed by members of Building brands2.1 Building brandsWhat factors are important in building brand value?Professor David Jobber identifies seven main factors in building successful brands, asillustrated in the diagram below:QualityQuality is a vital ingredient of a good brand. Remember the “core benefits” – the thingsconsumers expect. These must be delivered well, consistently. The branded washingmachine that leaks, or the training shoe that often falls apart when wet will never developbrand equity.Research confirms that, statistically, higher quality brands achieve a higher market shareand higher profitability that their inferior competitors.TY.BMS 9 Project source URL
  10. 10. Contributed by members of Building brandsPositioningPositioning is about the position a brand occupies in a market in the minds of consumers.Strong brands have a clear, often unique position in the target market.Positioning can be achieved through several means, including brand name, image, servicestandards, product guarantees, packaging and the way in which it is delivered. In fact,successful positioning usually requires a combination of these things.RepositioningRepositioning occurs when a brand tries to change its market position to reflect a changein consumer’s tastes. This is often required when a brand has become tired, perhapsbecause its original market has matured or has gone into decline.The repositioning of the Lucozade brand from a sweet drink for children to a leadingsports drink is one example. Another would be the changing styles of entertainers withabove-average longevity such as Kylie Minogue and Cliff Richard.CommunicationsCommunications also play a key role in building a successful brand. We suggested thatbrand positioning is essentially about customer perceptions – with the objective to build aclearly defined position in the minds of the target audience.All elements of the promotional mix need to be used to develop and sustain customerperceptions. Initially, the challenge is to build awareness, then to develop the brandpersonality and reinforce the perception.First-mover advantageBusiness strategists often talk about first-mover advantage. In terms of branddevelopment, by “first-mover” they mean that it is possible for the first successful brandTY.BMS 10 Project source URL
  11. 11. Contributed by members of Building brandsin a market to create a clear positioning in the minds of target customers before thecompetition enters the market. There is plenty of evidence to support this.Think of some leading consumer product brands like Gillette, Coca Cola and Sellotapethat, in many ways, defined the markets they operate in and continue to lead. However,being first into a market does not necessarily guarantee long-term success. Competitors –drawn to the high growth and profit potential demonstrated by the “market-mover” – willenter the market and copy the best elements of the leader’s brand (a good example is theway that Body Shop developed the “ethical” personal care market but were soon facingstiff competition from the major high street cosmetics retailers.Long-term perspectiveThis leads onto another important factor in brand-building: the need to invest in the brandover the long-term. Building customer awareness, communicating the brand’s messageand creating customer loyalty takes time. This means that management must “invest” in abrand, perhaps at the expense of short-term profitability.Internal marketingFinally, management should ensure that the brand is marketed “internally” as well asexternally. By this we mean that the whole business should understand the brand valuesand positioning. This is particularly important in service businesses where a critical partof the brand value is the type and quality of service that a customer receives.Think of the brands that you value in the restaurant, hotel and retail sectors. It is likelythat your favourite brands invest heavily in staff training so that the face-to-face contactthat you have with the brand helps secure your loyalty..2.2 Brand extension and brand stretchingMarketers have long recognised that strong brand names that deliver higher sales andprofits (i.e. those that have brand equity) have the potential to work their magic on otherproducts.TY.BMS 11 Project source URL
  12. 12. Contributed by members of Building brandsThe two options for doing this are usually called “brand extension” and “brandstretching”.Brand extension1. Brand extension refers to the use of a successful brand name to launch a new or modified product in a same broad market.2. A successful brand helps a company enter new product categories more easily.3. For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to become a washing powder brand too.4. The Lucozade brand has undergone a very successful brand extension from children’s health drink to an energy drink and sports drink.Brand stretchingBrand stretching refers to the use of an established brand name for products in unrelatedmarkets.For example the move by Yamaha (originally a Japanese manufacturer of motorbikes)into branded hi-fi equipment, pianos and sports equipment.When done successfully, brand extension can have several advantages:1. Distributors may perceive there is less risk with a new product if it carries a familiar brand name. If a new food product carries the Heinz brand, it is likely that customers will buy it2. Customers will associate the quality of the established brand name with the new product. They will be more likely to trust the new product.3. The new product will attract quicker customer awareness and willingness to trial or sample the product4. Promotional launch costs (particularly advertising) are likely to be substantially lower.TY.BMS 12 Project source URL
  13. 13. Contributed by members of Building brands2.3 Why should businesses try to build their brands?There are many advantages to businesses that build successful brands. These include:1. Higher prices2. Higher profit margins3. Better distribution4. Customer loyaltyBusinesses that operate successful brands are also much more likely to enjoy higherprofits.A brand is created by augmenting a core product with distinctive values that distinguish itfrom the competition. This is the process of creating brand value.All products have a series of “core benefits” – benefits that are delivered to allconsumers. For example:1. Watches tell the time2. CD-players play CD’s3. Toothpaste helps prevent tooth decay4. Garages dispense petrol.Consumers are rarely prepared to pay a premium for products or services that simplydeliver core benefits – they are the expected elements of that justify a core price.Successful brands are those that deliver added value in addition to the core benefits.These added values enable the brand to differentiate itself from the competition. Whendone well, the customer recognises the added value in an augmented product and choosesthat brand in preference.TY.BMS 13 Project source URL
  14. 14. Contributed by members of Building brandsFor example, a consumer may be looking for reassurance or a guarantee of quality in asituation where he or she is unsure about what to buy. A brand like Mercedes, Sony orMicrosoft can offer this reassurance or guarantee.Alternatively, the consumer may be looking for the brand to add meaning to his or herlife in terms of lifestyle or personal image. Brands such as Nike, Porsche or Timberlanddo this.A brand can usefully be represented in the classic “fried-egg” format shown below,where the brand is shown to have core features that are surrounded (or “augmented”) byless tangible features.TY.BMS 14 Project source URL
  15. 15. Contributed by members of Building brands CHAPTER 3TY.BMS 15 Project source URL
  16. 16. Contributed by members of Building brandsMarketAcross the Indian sub-continent scores of grandmarecipes are available for just about everything. The moreeveryday a problem the greater is the profusion in whichthey can be found. Cuts, nicks and bruises are possiblythe most common situations people are confronted with.From potions, to earth, to sand, to leaves, to juices -remedies come in all medium. Band-Aid, was the firstbrand that took on the challenge of changing the Indianconsumer mindset that believed in treating a wound withlocal help or just leaving it open to heal on its own.Today, after 40 years in the market, Band-Aid hasbecome a byword for a product that not only covers butalso heals and protects cuts, scrapes, wounds and bruises.Figures show that the product is an undisputed leader in the Indian market for adhesivebandages with 59% share in terms of volume and 61% in terms of value (Source: ORG2002). A study conducted by Usage & Attiude (U&A) in 1999 shows that 94% ofconsumers have used Band-Aid at least once.One of the key factors responsible for its mass appeal lies in Johnson & Johnsons (J&J)extensive breadth of distribution. Available in more than 770,000 outlets across thecountry, Band-Aid is within reach of just about any one - even in the remotest corners ofIndia. This is a product that has created its own market and has continuously extended itby making appropriate changes in the offerings. In a fine example of marketing insight,Band-Aid captured the focus of the product: the area of application. It realised that mostpeople dont like to waste a longer strip to cover a small wound. This is the reason whyBand-Aid is available in not just varying sizes but also in varying shapes: strips, patchesTY.BMS 16 Project source URL
  17. 17. Contributed by members of Building brandsand spots. In a further display of rare intuitiveness, the bandage became wash proof, andthen followed up with a turmeric version, in response to the centuries-old Indian belief inthe curative power of turmeric.AchievementsJ&J achieved a breakthrough in the domestic market by responding to the Indianfascination with lal dawa (the red medicine), which typically, is a bottle of tinctureiodine (red in colour) kept in most homes. Band-Aid became popular in India as the laldawa wali patti, a term which turned out to be its USP, making the bandage a householdname.The introduction of Band-Aid Washproof in the 1980s was a landmark indelivering a superior product and an even more significant consumer benefit of stayingon even in water.Apart from product innovations, J&J India is known for its zeal to develop eco-friendlyprocesses that use biodegradable raw materials and reduce solvent emission in theenvironment. J&J India introduced Band-Aid in a user-friendly, cold seal-based primarypackaging - a technology developed for the first time in India.HistoryBand-Aids story dates back to 1920. In a way, it was a newly wed housewife namedJosephine Dickson who was responsible for its invention. Her husband, Earle Dickson,was a cotton buyer at J&J. Josephine could hardly manage making dinner for Earlewithout having several cuts or burns on her fingers. Without an adhesive bandage, shehad no easy way of covering her own cuts. Initially, Earle cut pieces of adhesive tape andcotton gauze and made a bandage for each wound. This happened day after day after day.Finally, after several weeks, of kitchen accidents, Earle hit upon an idea.He sat down and prepared some ready-made bandages by placing squares of cotton gauzeat intervals along an adhesive strip and covering them with crinoline. Now all Josephinehad to do was cut off a length of the strip and wrap it over her wound. Earle told his bossat work about his new invention and soon the first adhesive bandages were beingTY.BMS 17 Project source URL
  18. 18. Contributed by members of Building brandsproduced and sold under the world famous Band-Aid trademark. Earle was eventuallyrewarded with a position as Vice President in the company, where he stayed until hisretirement. Band-Aid bandages made their first appearance on the market in 1921. Made by hand, they were three inches wide and eighteen inches long, and did not exactly take the market by storm.In 1924, J&J introduced the first machine-made adhesive bandages that were completelysterilised. In a couple of years, the product took on a momentum of its own. Thesubsequent decades saw frequent innovations and modifications to the original productuntil it reached a critical mass in both the US and other world markets. Although it wasalready an established global brand before it was launched in India, Band-Aid had tofight for its rightful place in the country, where people believed in leaving wounds openor tying them with a cloth, or at best, applying some liquids - even ink.ProductBand-Aid is available in three variants: fabric(also called regular), washproof and turmeric.The key differentiating factor in the case ofthe first two is the material of the dressing.Band-Aid fabric constitutes the bulk of thetotal sales. The turmeric-medicated padprovides the unique properties of turmeric toheal wounds and is priced at par with thefabric variant. The two major selling variantsalso come in different shapes like spots andpatches to suit different wound positions,sizes and shapes.Band-Aid is the worlds first medicated dressing containing Benzalkonium, which killsgerms and prevents their growth. It is gentle on the skin and acts as a cleansing agent. ItTY.BMS 18 Project source URL
  19. 19. Contributed by members of Building brandsis known to stay on firmly on the wound, enhancing notions of long-lasting protection. Itis the only sterilised medicated dressing in India. Each Band-Aid strip comes in a uniqueeasy peel packaging, which is the only one of its kind in the category.Recent DevelopmentsJ&J has been growing the brand through innovations in market promotion andadvertising. In 2003, it made Virender Sehwag, one of Indias brightest new performers inthe game of cricket, its brand ambassador.This brought in an all-new visibility to thebrand. Innovative promotional activities like the Sehwag Game Book offer became amust-buy for young cricket fans. Efforts like loyalty programmes for major wholesalershave been a big success, with the number of participants rising every year.The brand has launched a new campaign with the theme of Continuous Care, whichunderlines the fact that unlike other treatments medicated dressing continues to work onyour wound and stays on till it is healed.The battle over consumers minds is still not over. Although Band-Aid has establishedand strengthened its reputation, there is a subliminal belief that all adhesive strips are thesame in terms of final effect on the wound. Locally made low-priced products, pushed bytraders, pose a major challenge. While tactical responses to such developments will beone of the preferred options, Band-Aid, like ever before, will take the time-testedstrategic route of constantly innovating and upgrading the product range besideslaunching new variants. This is the route that has always differentiated its products fromthe rest and helped maintain its market leadership.PromotionLaunched in India in 1978, Band-Aid was the first player in the adhesive bandagescategory to air a TV commercial. The challenge was to grow the brand as well as lead incategory develop-ment.TY.BMS 19 Project source URL
  20. 20. Contributed by members of Building brandsThe initial communication was aimed at mothers, with the promise of a superior andconvenient protection for wounds. It focussed on the red pad and the J&J heritage. In anattempt to heighten the emotional appeal of the brand across the childrens segment - itslargest user base - Band-Aid developed a new communication in the mid 1990s, stressingon the innate desire of the child to be active. In essence, Band-Aid was the childssupporter of non-stop fun.2003 was also the year of the Cricket World Cup and for a nation obsessed with cricket,having a brand endorsed by a leading cricketer was a tactical advantage. VirenderSehwag, chosen as Band-Aids brand ambassador, symbolised the very essence of whatthe product stood for: solid, gritty and with a never-say-die attitude under anycircumstance. This tie-up kicked off a series of contests and promotions that included aspecial edition pack featuring the explosive cricketer.Over the years, the challenge for commu-nication has been to shift from passiveprotection to active healing. Band-Aid needed to signal efficacy, demonstrate itsmedicinal side and shift its discourse without losing its core values. The Band-AidGoldfish campaign, launched in 2000, was a real clutter-breaking advertisement, whichelevated the awareness of washproof to new heights. Since early 2003, the brand, with itsnew campaign of ‘Continuous Care’, has tried to reposition itself among the targetaudience. The simple theme is that unlike antiseptic liquids and creams, which wear offafter the initial effect, Band-Aid works on the wound non-stop. Therefore, the core valueof the brand – ceaseless supervision – is emphatically stated in the baseline “Iska asarlagatar”. The Kids Snapshot film is based on this thought.Brand ValuesIt is one of those classic cases of a new product category becoming a generic brand name.The abiding theme is ‘first aid’ for small cuts and wounds, with people reaching forBand-Aid the moment they experience a small cut or wound. Consumers firmly believethat the brand has knowledge and expertise in wound care. Band-Aid took the concept ofaid to greater heights through the washproof variant. While it was innovative as aTY.BMS 20 Project source URL
  21. 21. Contributed by members of Building brandsproduct, the theme was helping people stay active, in whatever they had to do. A strongbrand becomes a word in consumers’ minds. People dont say they need an adhesivebandage, they say they need a Band-Aid. Things you didnt know about Band-Aid 1. Over one hundred billion Band-Aid adhesive bandages have been made to date. 2. About one million Band-Aid strips, patches and spots are manufactured each day. 3. Sachin Tendulkar’s first product endorsement was for Band-Aid. 4. Parents of young babies tape Band-Aid around their thumbs to prevent them from getting into the habit of thumb-sucking. 5. J&J India has developed an indigenous assembly to fabricate Band-Aid dressing that can not only detect defects but also separate them on line at high speed.TY.BMS 21 Project source URL
  22. 22. Contributed by members of Building brandsMarketPeople have worn shoes through much of human history, but organised shoemanufacturing is a relatively young industry in most countries. In India, the credit for thisachievement undoubtedly belongs to Bata.The company has been manufacturing shoes, ‘of choice’ since the 1930s for successivegenerations of Indians.The Indian shoe market is dynamic. Its production capacity is second only to China. TheIMAGES Retail Report in 2002 estimated the market size at Rs. 93 billion. With the riseof the premium segment, the footwear industry that has traditionally been price driven isslowly becoming a quality and fashion conscious market. Bata strides both ends of thisspectrum, and all that comes in between.TY.BMS 22 Project source URL
  23. 23. Contributed by members of Building brandsBata India Limited has established itself as one of Asia’s largest footwear manufacturingcompanies. It has a 35% to 40% market share of the sales reported by shoe-manufacturersbelonging to the organised sector. Of total sales inclusive of the unorganised sectormanufacturing – which dominates the footwear market in India – Bata’s share is around8.5%. Almost 97% of the company’s revenue is from the domestic market while the restis from exports. Bata currently sells over 70 million pairs of shoes annually, and in 2002,it had an annual turnover of Rs. 6.94 billion.AchievementsBy the time Bata had come to India in 1931 it was already recognised as a leading shoebrand. Its manufacturing and marketing operations have heralded the rise and thedevelopment of a modern footwear industry in India. Before Bata, footwear wasproduced primarily in the handicrafts and small enterprise segments.Bata, over the decades, has used the ‘current knowledge’ from its internationalexperience to create adaptive and innovative baseline standards for the shoe businesses inIndia. This philosophy of Bata has enabled many of its initiatives and products to becomecommonplace in the Indian market over the decades; so much so that everybody takestheir indigenous origin for granted.One illustrious story in this regard is the famous ‘Hawai’ class of rubber slippers thatwere originally introduced by Bata in India in the early 1950s. This was a low-pricedfootwear aimed at a market that covered the rural, semi-urban and urban populations.With 95% in market share in the low-priced category ‘Hawai’ was an instant hit. Today,the ‘Hawai’ brand has become generic for like kinds of rubber slippers, the biggest byvolume in Indian shoe industry. Other offerings by Bata India have similarly gone on tobecome icons of the office footwear, casual and sporty footwear, and shoes for schoolgoing children. The brand straddles all product and price points in the Indian shoemarket. There are 1,600 Bata outlets spread across the country. 1,100 of these are directlyowned by Bata and account for over 60% of its sales. In addition, Batas products are alsosold through 30,000 multi-brand stores. This retail network is unmatched by any rival inTY.BMS 23 Project source URL
  24. 24. Contributed by members of Building brandsthe business and is a key factor in Bata’s vision and ability to reinvent itself when facedwith competition and challenges in this dynamic industry.As a good corporate citizen, Bata has developed a high value of commitment to theenvironment, setting an example for the entire leather industry in India.HistoryThe Bata Shoe Organisation was founded in August 1894, by Tomas Bata, in Zlin; asmall town in the erstwhile nation of Czechoslovakia (present day Czech Republic). Inless than two decades, this company was identified with expertise in massmanufacturing of footwear.Today, it is the undisputed global leader in the footwearindustry, with its products having a significant share of the world shoe market.The Bata Shoe Company was set up initially as a small operation in Konnagar (nearCalcutta) in 1931. In January 1934, it acquired a plot of 155 acres from the Calcutta PortTrust and from adjacent landowners. The foundation stone for the first building of Bata’soperation – now called the Bata Clinic – was laid on October 28th 1934. In the years thatfollowed, the overall site was doubled in area. This township is popularly known asBatanagar.It was also the first manufacturing facility in the Indian shoe industry to receive the ISO:9001 certification. Meanwhile, Bata has also created four other large-sized manufacturingplants in different parts of the countryBata produces almost 60% of its footwear in-house. The rest is outsourced to othermanufacturing units who have to meet the strict quality standards set by the company.ProductBatas products meet the entire range of footwear demands of its customers. The brandhas a long established reputation for reliability, quality, as well as being part ofcontemporary fashion trends in footwear. Almost all products offered by Bata have goneonto become icons for specific segments for millions of satisfied customers. Among theTY.BMS 24 Project source URL
  25. 25. Contributed by members of Building brandsnotable success stories in this regard are Ambassador, the classic dress shoes for men;Power, the sports footwear functionally designed for casual athletes; Mocassino, thecomfortable leather formals; and Hush Puppies, which are among the worlds mostcomfortable shoes in the premium segment. Bata has also enjoyed great success withMarie Claire, the range of fashion shoes in vibrant colours for women, Bubblegummers,the fun footwear range exclusively for children, Sandak, the leading plastic all-weatherfootwear range, and Bata Industrials, the industrial and factory footwear that offers greatcomfort with the highest safety standards.Recent DevelopmentsBata keeps reinvigorating its business with innovative technology and the strengtheningof its distribution network. It has created new technology shoes under the Bata Techbrand. This collection of technology shoes includes Wind, Antishox, Flexible andComfort. Wind has an in-built air circulation system that allows the feet to breathe andhence ensures freshness for as long as the footwear is worn. Flexible is probably the mostbendable footwear in the market, with a unique arch-grip system based on the science ofreflexology. Antishox has an in-built impact-free zone that absorbs any shockexperienced by feet while walking. Comfort is specially directed at women and comeswith a unique gel pad that provides an easier walking experience. Towards increasing itsofferings for women, Bata has also introduced the Azaléiá range in the upper premiumsegment.Customers have always identified Bata with the unique identity of its retail stores. Thefrontal layout of white and red creates instant brand-connect and has become ubiquitouslypresent in commercial shopping complexes in most Indian cities and towns. The brandhas revamped its retail practices to facilitate better choice and easier segmentation andoffer a better shopping experience. Batas flagship stores are directed at the premium top-end segment, with a luxurious ambience. These also stock some of worlds other top-of-the-line brands including Lotto, Reebok, Nike and Dr. Scholls. City stores are located inmetropolitan as well as semi-metropolitan locations catering to middle and high-incomegroups in these areas. Family stores are based at commercial locations displaying basicTY.BMS 25 Project source URL
  26. 26. Contributed by members of Building brandsand middle-range footwear. Factory outlets are aimed at driving volume sales at lowerprice-points.PromotionBatas product range offers style, elegance, and durability but at the same time it isaffordable for million of Indians. Affordability and dependability are the two mostimportant elements of the brand Bata. Batas promotions and advertisements haveleveraged those two key factors. In the early 1990s, for instance, Bata came up with awinning promotion titledSuperhit Price Range, aggressively pushing its affordability. Back to school has beenanother successful Bata campaign. Some of the most famous public icons andpersonalities have associated with Bata. The brand has built an enviable reputation forspotting charismatic talent in its promotions. In recent years, some of the most glamorousIndian women such as Ravina Tandon, Rani Mukerji, Bipasha Basu, Celina Jaitley havechosen to endorse the Bata brand at the very beginning of their careers as dream sellers inadvertising and cinema. Through their endorsements, Bata is seen to be respected, trendy,cosmopolitan, modern, stylish, admirable and innovative. Celebrity cricketers - amongthem Kapil Dev and Ravi Shastri - promoted the Power brand, highlighting the brandsassociation with power, aggression and performance.Brand ValuesThe Bata brand evokes deep-rooted trust among customers. It has been a householdname in India for several decades, and has kept meeting every variety of footweardemands among Indian customers. Bata aims to provide shoes of choice to itscustomers for every step in their lives. The brand aims to have explicit leadership in theIndian footwear market by offering the best in product, value-for-money, sales locationsand customer service. It has recorded remarkable success and longevity on most ofthese counts. That is why Bata is rated one of the top ten Indian brands (Source: A&Minternational edition, February 15th, 2002 - Indias Top Brands). Bata was voted TheMost Admired Footwear Company at the Images Fashion Awards 2003.TY.BMS 26 Project source URL
  27. 27. Contributed by members of Building brands Things you didnt know about Bata1. Since it was founded on August 24th 1894 Bata has sold more than 14 billion pairs of shoes - more than the number of pairs of feet that have walked the earth during that time.2. Laid end to end, the shoes Bata has sold would cover a distance greater than 30 times the distance between the earth and the moon.3. Bata founder, Tomas Bata, was a ninth generation shoemaker determined to become the King of Shoemakers. This perhaps explains why the numeral 9 appears in all Bata pricing.4. In 1894, at age eighteen, Tomas Bata broke away from his father.5. In 1896, Tomas Bata made his first shoe SEGALKY" - a light textile shoe with leather soles. The shoe weighed half as much and cost one-quarter or so less than the then current styles.TY.BMS 27 Project source URL
  28. 28. Contributed by members of Building brandsMarketBaking practices were well known to Indian cuisine forthousands of years, but the humble biscuit became afamiliar and commonplace item of diet only during the20th century. The products and marketing strategies ofIndia’s premier food company Britannia IndustriesLimited over the last century have been responsible for thisremarkable dietary acculturation.The entire biscuits’ market is estimated to be 1.1 milliontonnes per annum, and valued at over Rs. 50 billion.The biscuits segment enjoys one of the most developed markets for any item of massconsumption, covering over 90 per cent of the overall potential market. This implies thatover 900 million Indians buy and eat biscuits, withvarying frequency in any year. The market is highly competitive at the supply-side, withthousands of small-scale manufacturers as well as others in the organised, large-scalesector.The strength of the Britannia brand is demonstrated by the fact that it stands far above allin this fiercely competitive market, with over 46 per cent market share, by value (Source:ACNielsen ORG-MARG 2003).TY.BMS 28 Project source URL
  29. 29. Contributed by members of Building brandsAchievementsBritannia is synonymous with the rise and growth of the biscuit industry in India.Throughout this process it has displayed an uncanny intuition about emerging populartastes for biscuits. This foresight, coupled with the will to innovate and evolve newproducts, has been the impetus that has propelled the Britannia brand ahead of the rest.Being the market leader, Britannia Industries operates under an underlying principle ofsetting its own rules and standards that have almost always become the adopted paradigmfor the entire biscuit industry.It brought the health dimension to an industry that was traditionally driven by taste alone.This is reflected in Britannia’s brand slogan, introduced in 1997 that exhorted consumersto ‘Eat Healthy, Think Better’. This was quickly embraced by the entire industry to comeup with similar promotional campaigns showing biscuits to be an epitome of a healthy,happy diet.Going beyond biscuits has been the most difficult challenge and a litmus test for thecompany. Britannia entered the dairy category with the launch of Britannia Milkmanrange of dairy products. With the success of Britannia Milkman Cheese, it achieved aniche for itself in a category that was defined by a competitor that had created thecategory.Britannia’s products retail in over 2 million outlets (Source: ACNielsen ORG-MARG,2003), selling approximately 200 million packs a month. With millions of happyconsumers every month, Britannia is considered to be one of the most trusted food brandsin India (Source: ET Brand Equity Study, 2003). Britannia has also successively madethe Forbes List of 200 Best Small Companies in the world for the years 1999, 2000 and2002.HistoryStarted way back in 1892 with an investment of Rs. 295, biscuits were manufactured in asmall house in central Kolkata. Later, the business was acquired by the Gupta brothersTY.BMS 29 Project source URL
  30. 30. Contributed by members of Building brandsand operated under the name of V.S. Brothers. In 1918, C H Holmes, an Englishbusinessman in Kolkata was taken as a partner and ‘The Britannia Biscuit CompanyLimited (BBCo)’ was launched. The Mumbai factory was setup in 1924 and Peak Freans,UK acquired a controlling interest in BBCo. Biscuits were in big demand during WorldWar II, which gave a fillip to the company’s sales. BBCo celebrated its golden jubilee in1968 and the company name was changed to the current Britannia Industries Limited in1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder. Ten yearslater in 1992, Britannia Industries Limited celebrated its platinum jubilee. The followingyear, the Wadia Group acquired a stake in ABIL, UK and became an equal partner withGroúpe Danone in Britannia Industries Limited.ProductBritannia has restructured its portfolio of products at regular intervals, to constantlyredefine and strengthen the Indian biscuit market. This strategy has enabled it to serve thekey needs of the Indian consumer across age groups and diverse consumption situations,through an optimum range of brands. The success of this strategy enabled Britannia toreduce the number of focus-brands from 24 in 1998, to nine in 2001.All its product offerings derive their premium qualities from the principles of health andtaste. This key premise has led to the evolution of a lifetime menu where a Britanniaproduct exists for every stage in a person’s life. The highest consumption group forbiscuits are children; here Britannia offers Milk Bikis with all the ‘goodness of milk’required by younger kids, while the Tiger brand is aimed at 7-14 year olds and providesthem with the exuberant health required by ‘winners of tomorrow’. Another offering forchildren – Treat, a range of delicious cream biscuits – is meant as a treat for childrenduring fun times.A particularly notable success has been Little Hearts, meant for teenagers and kids, whichhas completely dispelled an erstwhile industry axiom that this target group did not snackon sweet biscuits.TY.BMS 30 Project source URL
  31. 31. Contributed by members of Building brandsMoving on to other age groups, Britannia created 50-50 as a biscuit snack for youngadults with its sweet-salty duality. The savoury Time Pass brand is targetted at the sameage group as well. Britannia MarieGold, is a venerated tea-time offering that is packedwith wheat energy and has found much favour with health conscious urban adults. GoodDay, a cookie filled with rich ingredients is a healthy everyday treat for the entire family.Britannia has a range of bread and cakes entrenched in the fresh bakery segment. Theseproducts allow the consumers to interact with the brand more often and maintaincontinuity of the taste-with-health promise.Recent DevelopmentsA new initiative taken by Britannia, to cater to all the taste fads of the consumer, seeks towiden the range of its snack foods. This will be Britannias biggest challenge in the nextfew years. Meanwhile in existing categories of biscuits and baked products, innovationwill be the key principle.A host of new flavours and food-formats, as never seen before in the Indian market, aredue to enter the market in 2004. Thus, Britannia will continue to define the Indian marketin biscuits and other food products.PromotionThe role of promotions for Britannia is especially important in this highly fragmented andcompetitive market. Today, the company prides itself on communication that isinnovative, yet constantly able to strike a chord in the consumers hearts and minds.Britannias promotions have virtually redefined consumer expectations from thiscategory.To reach out to the Indian consumer, Britannia has successfully leveraged Indias twoprime passions - cricket and movies. Britannia addressed these platforms in a manner trueto its unique innovative style. It capitalised on every Indians dream to watch a cricketWorld Cup match and created the Britannia Khao, World Cup Jao contest in 1999. Itbased itself on instant gratification. All the consumer needed to do was buy packs ofTY.BMS 31 Project source URL
  32. 32. Contributed by members of Building brandsBritannia biscuits, scratch a lucky card and win an all-expenses paid trip to England towatch a World Cup match. This promotion was so successful that it set a trend that hasgot every company scrambling for tickets to take their consumers for the World Cup.This promotion was repeated successfully in 2002/03 with the destination of choice beingSouth Africa. Taking the success further was the promotion of Britannia Khao, CricketerBan Jao that was fuelled by the need of every Indian to be a part of the passion calledcricket. Britannia followed it up with another unique promotion, a vehicle that dealt withIndias other passion - movies.A promotion called Britannia Lagaan Match that revolved around a movie called Lagaanwas based on a cricket match. This promotion gave the consumer a chance to interactwith the film stars and also get to play cricket with them. The match had over 40,000spectators and made the headlines of leading newspapers and news channels.Britannia promotions have proved to the marketing world that promotions per se need notbe only tactical but could also be strategic - used as a tool to further brand equity.Britannia advertising has distinguished itself from competition in terms of imagery andrecall value. The innovation of such communication was exemplified through the launchof Britannias salt-sweet biscuit. The brand name was 50-50 and the consumer was nevertold upfront that the product was salt-sweet. But by just allowing the consumer todecipher the message himself, the company was able to draw the consumer closer anddistinguish the offering from competition.Brand ValuesThe Britannia brand is all about eating healthy, to lead a better life. It advocates valuesthat stand for health, hygiene, family, trust and taste. It reflects the strong link betweenphysical and mental well-being, that is so important to a person, and is typically a resultof what one eats.Today, Britannia, driven by a passion for excellence, manifested by its innovativethinking, has been able to weave itself into the fabric of the consumers everyday life.While Britannia strives to give consumers a healthier life, the consumer on the otherTY.BMS 32 Project source URL
  33. 33. Contributed by members of Building brandshand, has come to expect innovation from Britannias offerings - a huge challenge forthe company. Things you didnt know about Britannia1. Britannia products are sold in over 2 million outlets, reaching millions of consumers who buy approximately 2.4 billion packs each year.2. A small army keeps Britannia going - over 100 stock-keeping units, 3,000 employees, over 1,500 authorised whole sellers, 53 depots and 46 factories.The number of biscuits produced by Britannia in one year, would be the equivalent of one pack of 12 biscuits for every two people in the world.3. Stacked on top of each other, all Britannia biscuits sold in a year would stand 10,000 times taller than Mount Everest.4. Britannia has had a long association with cricket and cricket players. Nearly half the members of the current Indian cricket team serve as its brand ambassadors.5. Launched in 1997, Tiger became the largest selling Britannia biscuit brand in just 4 months of launch. It crossed the Rs. 1 billion sales mark in its very first year and is growing stronger.TY.BMS 33 Project source URL
  34. 34. Contributed by members of Building brandsMarketOne of the most fiercely competitive markets in India is the soap category. There arescores of brands – national, regional, rural – that are vying for the attention of Indias1,100 million users.For an Indian brand, to survive and prosper in a complex, multinational-dominatedmarket doesnt just require staying power; it requires panache. Over the years, soapbrands have proliferated in large numbers in the Indian marketplace, competing for theminds and budgets of increasingly fickle consumers.It is in this extremely demanding and cut-throat market that the 52-year-old Cinthol – theflagship brand of Godrej Consumer Products Ltd. – has not just survived, but prospered.Obviously, with huge income disparities, buying power determines the brand of choice.In a market, therefore, ranging from the urban very rich to the rural very poor, there aresoaps that fill each of the niche needs of audiences in every socio-economic strata.Today, despite the presence of global corporations, the Cinthol brand has carved out aconsumer base of more than 17 million users (Source: NRS 2002). The soap market inIndia is determined to be of the order of Rs. 41.75 billion (Source: ACNielsen - RSA2003) and Cinthol commands a turnover of Rs 1.05 billion (2003/04) with a market shareof 2.5% by value (Source: ACNielsen - RSA 2003).AchievementsWhen needs change, brands need to change as well, to remain contemporary anddesirable. Cinthol has kept pace with evolving markets. It has reinvented and re-jigged itsportfolio without compromising on its core values. Today, Cinthol has entrenched itselfTY.BMS 34 Project source URL
  35. 35. Contributed by members of Building brandsfirmly in well-defined niches that fulfil expectations of the modern consumers needs.One of the hallmarks of Cinthols marketing strategy has been that the brand has not beenafraid to try new things. In its earliest years when the entire world was using soaps madefrom animal fats, Godrej bucked the trend by formulating a soap manufactured fromvegetable oils.It was a fine example of a company having the courage to back its convictions. Thisstrength has helped Cinthol find slots across a broad spectrum of users. CintholDeodorant & Complexion soap, for instance, has not just found acceptance amongstnormal consumers but even with doctors who recommend it to patients with skindisorders. Along with deodorancy and freshness, it also assures overall skin health byhelping remove blemishes and improving complexion. It is very satisfying for a brand todiscover that when loyal users travel abroad they often carry several packs of Cintholwith them.HistoryThe early 1900s was a heady time. A single man had sparked the desire of Indians to befree from colonial rule. Sentiments and tempers ran in tandem. Religious fervour was atits peak. Ardeshir Godrej, a lawyer by profession and a man steeped in principles andideology, made a telling contribution. He created Indias first toilet soap made fromindigenously available vegetable oils instead of imported animal fats. This move won thesupport of the leaders of the Indian Independence Movement. Socially, too, a vegetableoil based soap made more sense since it factored in religious sentiments.The mantle passed on to his nephew, Dr. Burjor Godrej, who was himself a qualifiedmechanical engineer, with a prestigious doctorate in technical chemistry. At that timescientists were frustrated by the fact that while germ-killing ingredients were effective inantiseptics they were unsuitable for use in soaps. The discovery of Hexachlorophenechanged all that. The chemical proved to be stable when used in the manufacture ofsoaps. This led to the birth and launch of Cinthol Deodorant & Complexion soap onTY.BMS 35 Project source URL
  36. 36. Contributed by members of Building brandsIndependence Day of 1952. Enriched with a unique fougere perfume the reception thatthe soap received was truly phenomenal.Over the first three decades of its existence, the brand took the platform of protectionfrom body odour. But the markets were gradually changing. In 1986, in an attempt tomodernise the image, New Cinthol soap was launched with a new-look packaging, shapeand advertising, using celebrities like Vinod Khanna and Imran Khan. Thecommunication campaigns developed strong, confident and active associations withCinthol- attributes that went on to become an essential part of the brand imagery.In 1989, in an attempt to capture a share of the lime soap market, Cinthol Lime waslaunched. The attempt to capture a segment of this developing market was a resoundingsuccess: it grabbed 8% market share in six months. In 1992, Cinthol Cologne waslaunched to extend the brand franchise into a modern and new fragrance.By 1993, Godrej realised that it had to re-jig the brands to keep pace with the changingenvironment. The three variants that had been launched post 1986 were brought under theCinthol International umbrella – Cinthol International Spice, Cinthol International Limeand Cinthol International Cologne.A complete positioning overhaul was undertaken between 1993 and 1995. Shah RukhKhan became the brands new icon. His panache matched the brands new platform:revitalising and re-energising. With the launch of Cinthol Fresh in 1995, the brand wasextended into the popular segment as the first popular segment lime soap. It was arunaway success. It was redefined as a family soap with the famous Tan taaza, mantaaza campaign in 2000.2004 saw the launch of the new variant Cinthol Deo Soap, with the baseline ‘Get ReadyGet Close’ to communicate its positioning. It addresses the need for effective body odourremoval through the unique proposition of deodorant in a soap.TY.BMS 36 Project source URL
  37. 37. Contributed by members of Building brandsProductToday in the market, Cinthol has three distinct variants, borne out of market needs andconsumer studies. Cinthol Deodorant & Complexion soap continues to operate in thehealthy skin category. The soap offers numerous do-good benefits such as total andcomplete skin protection.Cinthol Lime Fresh is a strong player in the freshness category. The lime extractprovides deep cleansing properties and the excellent long-lasting lime fragrance keepsone feeling fresh.Cinthol Deo Soap is the latest offering from the Godrej stables. This new soap-on-the-block is aimed at satisfying a latent problem: hesitation to get close because of bodyodour. It has a unique long lasting deo formula that prevents body odour all day long. Itcomes in two exciting fragrances: Cologne and Spice that keep the user feeling fresh allday. Each of these sub-brands has helped extend the durability and youthfulness of themother brand.Recent DevelopmentsLeveraging Cinthols brand equity, Godrej Consumer Products Ltd. has forayed into othercategories including Talcum Powders (Cinthol International Deodorant Talc and CintholFreshness Talc) and Deo Spray (Cinthol International Perfumed Deodorant). Also, inkeeping with its tradition of providing modern, convenience products to discerningconsumers, the company has launched Cinthol Hand Sanitizers.Sanitizers fulfil the needs of health conscious consumers on the move. Available insandal, lime, spice and cologne variants, they ensure germ-free hands, without having touse soap, water or towel. The product was launched in August 2000 in West Asia. In2003, the sanitizers were exported to the Far East, when the SARS outbreak increasedconsumer concerns about hygiene.TY.BMS 37 Project source URL
  38. 38. Contributed by members of Building brandsPromotionCinthol has been closely identified with innovation, which reflects in its promotions too.It was the first brand in its category to come up with creative offers: gold coins/pendantsin a soap. was also one of the first brands to realise that consumers were increasinglylooking for value-for-money products. Responding to this finding Cinthol was the firstsoap to come up with the consumer offer: Buy 3 Get 1 Free.Cinthol advertising has always had a strong impact, with all the elements being carefullychosen to reflect aspects intrinsic to the brand. No wonder then, the commercialsfeaturing Vinod Khanna, Imran Khan etc. during the 1980s and early 1990s are vividlyrecalled even today.In his heydays, Imran Khans star power was unquestionable. The charisma of the young,handsome Pathan – the heartthrob of a million girls – splashing water and using CintholInternational soap quickly rubbed off on the brand. The energy and confidence that thefilm exuded were closely connected to the properties of the soap. Through the clutter,Cinthol rose in the desirability index.The Vinod Khanna film was shot when the actor was at his peak. The commercialshowing the star riding a horse on the beach exuding vigour and confidence with thewaves of the sea in the background depicted an innate, natural freshness. Vinod Khannaand Cinthol proved to be a perfect match. Even today, years after the commercials havebeen withdrawn, they continue to be recalled. The latest advertising campaigns continueto build on the Cinthol legacy.The Montage film for Cinthol Deodorant & Complexion soap targets audiences in thepriority markets of South India. This is one soap that has appealed to different age groupsof both sexes. The current advertising reinforces this bond and the fact that Cinthol hasprovided skin protection over the years.The Taazgi ka tarana commercial for Cinthol Lime Fresh is based on the key insight thata bath is more than just a cleansing process. It is the time when they rejuvenateTY.BMS 38 Project source URL
  39. 39. Contributed by members of Building brandsthemselves. The ad promotes the latest baseline of the brand ‘Get Ready’ depicting thetransformation of a woman in her bath.The Cinthol Deo Soap commercial has the protagonist joining his friends for a game oftug of war after work. He has no hesitation in getting close to them even at the end of aworking day. This is because his Cinthol Deo Soap keeps body odour at bay all day long,leaving him confident and smelling great.Brand ValuesEver since its launch in 1952, Cinthol has been the perfect embodiment of the expressionconfidence personified. All the campaigns for different variants have captured the subtlechanges in the brand values without straying away from the brand essence: Confidenceand Freshness. These core values have a strong appeal and relevance to both sexes.Hence over the last couple of years, Cinthol has been repositioned on a unisex platform totarget both men and women.It has always closely monitored consumer behaviour, changing attitudes and hastweaked the positioning to suit these emerging needs. All of this has resulted in a brandthat has not aged but grown into an active, vibrant and energetic personality.After 52years, Cinthol, remarkably still evokes a very high degree of trust and respect. Things you didnt know about Cinthol1. The name Cinthol is derived from Synthetic Phenol: Synth+ol.2. The name Godrej is derived from Guderz – an important tribe in Iran.3. Cinthol Deo & Complexion Soap has remained unchanged in design, perfume, shape and packaging since its launch in 1952. Briefly replaced in 1986 it was brought back to its original form in the face of popular demand. The brand boasts of a string of strong loyalists who have stuck to it over decades making it one of the few brands to span generations in a household.TY.BMS 39 Project source URL
  40. 40. Contributed by members of Building brands4. All variants in the Cinthol stable are full Total Fatty Matter (TFM ) soaps (76%- 79%).5. Cinthol boasts of all its variants being classified as Grade I soaps by the Bureau of Indian Standards.6. Cinthol launched Bipasha Basu when it sponsored the Supermodel contest in 1996. It catapulted Bipasha Basu into limelight – and into stardom.TY.BMS 40 Project source URL
  41. 41. Contributed by members of Building brandsMarketThe history of iodised, vacuum-evaporated, packaged salt inIndia began with Tata Salt back in 1983. This pioneering brandcreated a market for high-quality branded salt in the country,and defined the attributes that consumers now demand in theproduct. By highlighting factors such as hygienic production,purity, nutrition, and salt as a soldier in the battle againstiodine deficiency, Tata Salt sowed the seeds of, and set thestandards for, a new category in the food additives segment.The market for pre-packaged iodised salt in India isestimated to be worth Rs. 10 billion, with Tata Saltcommanding a sales share of Rs 2.1 billion or 21% of themarket. According to the latest IRS data (2003/04) Tata Saltranks number one in reach to households in urban India andnumber three on an all-India basis, with a penetration ofmore than 53 million Indian households every month. TataSalt sells a monthly average 35,000 metric tonnes of itsproduct through 1,280,000 retail outlets (Source: ORG-MARG Project Premium, March 2004).A survey conducted across the countrys urban centres showed that 90% of respondentshad tried Tata Salt at least once (Source: ACNielsen Brand Track 2002/03). This is thehighest for the category and ahead of the brands nearest competitor by a factor of nearlytwo.TY.BMS 41 Project source URL
  42. 42. Contributed by members of Building brandsAchievementsTata Salt fashioned a market where none had existed andcapitalised on its first-mover advantage by firstestablishing a leadership position and then consolidating it.The brand has stayed ahead of the competition despite aplethora of players - mighty multinationals and domestic giantsincluded - entering the field and challenging it for shelf spaceand market share.ACNielsen ranked Tata Salt as the Most Trusted Food Brand,being first in its listing of the 20 Most Trusted Food Brands inIndia andplaced it eighteenth globally in its Winning Brands Global Database (2002/03). On theACNielsen-Brand Equity scale, Tata Salt has maintained a rating of between 6.5 (in2003/04) and 7.2 (in 2002/03), which is at least twice as much as its closest competitor.Tata Salt has the unique distinction of being the only Indian brand to figure for twoconsecutive years in The Economic Times Brand Equity-ORG-MARG survey of the Top10 Most Trusted Brands in India. In the 2002 edition of the survey, which identifiesIndias 100 most trusted brands, Tata Salt wasranked fourth and in the following year it came in sixth. This success is remarkable giventhat salt has all along been a commodity.HistoryTata Salt is manufactured by Tata Chemicals, a valued member of the Tata Group andIndias largest producer of soda ash. The companys turnover for the financial year endedMarch 2003 was Rs. 17.07 billion, with net profits of Rs. 1.97 billion. Tata Salt isproduced at the Tata Chemicals facility in Mithapur on the Western coast of Gujarat. TheTY.BMS 42 Project source URL
  43. 43. Contributed by members of Building brandssalt-making plant is part of an inorganic chemicals complex which is the largest and mostintegrated in India.Tata Chemicals, which was founded in 1939, developed a salt works at its Mithapurcomplex in 1979. Four years later the company launched Tata Salt. The Mithapur saltworks are spread over 60 sq km and can generate over two million tonnes of solar salt,the starting raw material for almost all the 27 basic chemicals that the companymanufactures.Mithapur, the city of salt, is the mother of Indias heavy chemical industry. The questfor a salt plant began before the Tatas came on the scene. In the late 1920s, Kapil RamVakil, a chemical engineer who had studied at Manchester University, established theOkhamandal Salt Works. He later set up a soda ash plant at the site. Salt and salt-basedproducts were then the virtual monopoly of foreign companies, which importedordinary salt from Aden for Indias consumption.After a survey of the Western coast, Vakil decided on a point seven miles from Okha,the Western-most tip of India, where the Arabian Sea meets the Rann of Kutch. But hecould not bear the financial burden of running the plant for long and approached theTatas. The then Maharaja of Baroda, Sayaji Rao, in whose territory Mithapur fell, alsowrote to the Tatas suggesting that they might like to assist with this national project.The Tatas saw the potential of the industry and agreed to supplement Vakils effortswith their resources and know-how.ProductTata Chemicals technologically advanced production processes ensure that Tata Saltreaches consumers in the purest possible form. It is manufactured by evaporating seabrine in steam-heated vacuum evaporators and is almost completely free fromextraneous matter. Tata Salt has a fine crystalline structure, dissolves very quickly andis fully sterilised.Tata Salt has all the good qualities of traditional salt: it is an essential nutrient, itenhances and accentuates the flavour of vegetables and meats and it protects food safetyTY.BMS 43 Project source URL
  44. 44. Contributed by members of Building brandsby retarding the growth of micro-organisms. Additionally, Tata Salt plays an importantrole in Indias public health campaign against iodine-deficiency disorders.Recent DevelopmentsDuring 2002/03, Tata Salt took on an aggressive approach in branding, packaging, salesmarketing andsupply-chain management. As a result, the brand has not only achieved primacy ofposition and mind share, but has also grown in volumes. This has helped Tata Saltimprove sales despite operating in a tight market.The new initiatives have helped Tata Salt reach a record market share of 41% in thenational branded salt segment, against 23% for its nearest competitor (Source: ORG-MARG, March 2004), andTY.BMS 44 Project source URL
  45. 45. Contributed by members of Building brandshave enabled the brand to make light of aggressive retail pricing by rivals, negativemarket trends, increases in freight cost and an overall decline in the market.Improving the communities in which it operates has been a cornerstone of the TataChemicals culture of business. This is in keeping with the social development philosophyof the Tata Group. Tata Salt has been playing a key role in sustaining and furthering thisarticle of faith. Since 2002 it has been running the ‘Desh ko arpan’ programme, underwhich – during specific months of the year – a small percentage of the money thataccrues from the sale of every Tata Salt packet is set aside to help disadvantagedchildren. Thanks to this programme, 25,000 children across ten states in India have beenprovided with a year’s education.PromotionIn late 2001 and early 2002, a clutch of players, both domestic and multinational, enteredthe branded salt market. Their marketing tactics were aggressive, their packaging wascolourful and their advertising was high decibel. Tata Salt went head-to-head with thecompetition and, backed by market research, prescient promotions and the in-builtqualities of the product itself, succeeded not only in protecting its turf, but also enhancingit.Consumer research done by Tata Chemicals in June 2002 revealed that consumers werefeeling a deep and latent insecurity that the social fabric of the times was being tested andthat corruption was eating into India’s values. The research pointed to a well ofpatriotism and loyalty that could be tapped.Seizing the initiative at a time of diminished brand differentiation, declining allegiancesand shrinking consumer expenditure, Tata Salt associated itself with an immediatelyidentifiable, universal theme: remaining true to one’s salt and to one’s country.That was the idea behind the memorable tagline of the subsequent advertising campaign– ‘Maine desh ka namak khaya hai’ (loosely translated as ‘I believe in honesty because ITY.BMS 45 Project source URL
  46. 46. Contributed by members of Building brandsowe my allegiance to my nation’). The campaign made heroes of common consumerswhile employing deep-rooted local idioms woven around the salt motif.In a tribute to the vast number of ordinary consumers who use Tata Salt, the newadvertising campaign featured the simple, everyday integrity and honesty of commonIndians. These were stand-up people who rendered crucial service, silently. Reinforcingthe imagery was a series of product commercials, which supported the key qualities ofpurity, saltiness and the values inherent in Tata Salt.The campaign, which began airing on August 14th 2002, the eve of India’sIndependence Day, went straight to the country’s heart. Consumers rated the entireseries of commercials high on persuasion, lack of clutter, integrity and nationalism.The campaign was backed by new packaging that had a delightfully refreshing look,which was accentuated by the use of an enticing food visual. To reassure the consumer,the pack retained the strong values associated with the Tata name. Specialised edibleand industrial salt marketing teams were set up, and a full-fledged sales and marketinginfrastructure with regional teams helped convert the campaign’s popularity into highervolumes.Brand ValuesTata Salt’s greatest strength as a brand is derived from its association with trust. InIndia, salt and integrity have a connection that stretches back to a time much beforeTata Salt was born. Tata Salt’s communication platform of trustworthiness has a strongresonance with its parent, the Tata Group, which has built its equity on the concept ofleadership with trust.Tata Salt has drawn on India’s rich relationship with salt to deliver a product thatembodies reliability, honesty and credibility, qualities that emanate from the Tata creedof business. The trustworthiness synonymous with the Tata name has helped Tata Saltbuild a constituency of consumers who have consistently rated it ahead of every othercompetitive brand in the marketplace.TY.BMS 46 Project source URL
  47. 47. Contributed by members of Building brands Things you didnt know about Tata Salt1. More than thirteen packets of Tata Salt are consumed every second.2. Over 53 million households use Tata Salt each month.3. Mithapur, the location of the Tata Salt plant, is so environment friendly that it has a bird sanctuary where migratory birds fly in from Europe and elsewhere to nest.4. Under Tata Salt’s ‘Desh ko arpan’ programme, which is aimed at helping underprivileged children, over Rs. 11 million was collected and given to Child Relief and You, a non-governmental organisation that works with poor kids.TY.BMS 47 Project source URL
  48. 48. Contributed by members of Building brands CO CLUSIOA brand is a name, term, sign, symbol, or design, or some combination of these elements,intended to identify the goods and services of one seller or group of sellers and todifferentiate them from those of competitors. The different components of a brand. Brandnames, logos, symbols, package designs, and so on are brand elements.Brands offer a number of benefits to customers and firms. Brands are valuable intangibleassets that need to be managed carefully. The key to branding is that consumers perceivedifferences among brands in a product category.Brands can play a number of different roles within the brand portfolio. Brands mayexpand coverage, provide protection, extend an image, or fulfill a variety of other rolesfor the Firm. Each brand name product must have a well-defined positioning. In that way,brands can maximize coverage and minimize overlap and thus optimize the portfolio.The starting point in the brand game is the product. How is it different from otherproducts in the crowded market place? The answer would be firstly to look afterUSP(Unique selling proposition) and to think simple but powerful brand name inorder tocatch customer as such brand name that could be easily remember by the consumer likeAmul , parle products , bisleri , Liberty shoes that create distinct image in customersmind .Secondly to segment the market as per demographic in order to classify market andcustomer and to fulfill different customer needs and expectations.Thirdly to move the product from generic to a brand through skillful manipulation of the4p’s and blend them with current additional 4p’s as per market and situation .Fourthly to choose a proper media mix like advertisement ,personal selling, salespromotion and also to choose proper media channel as per demographic pattern to reacheach and every customers .TY.BMS 48 Project source URL
  49. 49. Contributed by members of Building brandsFifth would be to choose proper communication media like T.V , newspaper , radio .Sixth would be segment the market and customers as per region ,state , national ,international markets .Seventh is to position the brand properly in to these condition andto make promise to customers to giving promising product as per their expectation withproper pricing strategy ,product as per quality . Eight is to make promise to customers tofulfill all their needs ,expectations .Ninth is to create brand image by keeping promising product available in the market withstable and regular supply. To come up with new idea about product and create a brandwith distinct and different product range and maintain quality like jumboking , Amul ,Maggi . Tenth to innovate the product idea by adapting all these strategys . Brands are notimmortal as they are vanished with lack of marketing mix and lack of maintaining propermarketing strategy .There is no room for complacency in today’s market scenario. The challenge lies not onlyin becoming successful but also in staying successful.TY.BMS 49 Project source URL