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7761872 Brand Concepts Strategy


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  • 1. Brand Concepts & Strategy IGTC 2003
  • 2. Structure
    • What is a Brand?…. Product vs Brand
    • Brand Identity … Developing a Brand Framework
    • Brand Strategies … Extension & Revitalization
  • 3. What is a Brand?
  • 4. Essence of a Brand : Aaker
    • “ A company’s brand is the primary source of its competitive advantage and a valuable strategic asset.”
    • “ The challenge for all brands is that they have distinct clear image that matters to customers and truly differentiates from the rest.”
    • The key step is to create a broad band vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed.
  • 5. Product vs B rand
    • A product is made in a factory… A Brand is bought by the customer.
    • A Product can be copied… A brand is unique
    • A Product is quickly outdated…A Brand is Timeless
  • 6. Product vs Brand
    • Brands differentiate Products
    • Fairness Creams: Fair & Lovely vs Ponds Dream Fairness
    • Coconut Hair Oil: Parachute vs Dabur Vatika
    • Cola: Coca Cola vs Pepsi
    • Products largely undifferentiated: Product choice function of Convenience / Availability / Price.
    • Petrol : BPCL vs IBP vs ….
    • ATM : HDFC vs HSBC vs ….
    • Mineral Water : Bisleri vs Bailey vs Kinley …
  • 7. Product Levels : Kotler
    • Core Product : Core Benefit or service
    • Tangible Product : Brand Name, Packaging, Features, Quality, Styling
    • Augmented Product : After sale service, Installation, Delivery & credit, Warranty
    • Eg: Consumer Goods … Products extending Services … Asian Paints: Painting Homes; Surf: Laundry
  • 8. Brand Image vs Brand Associations vs Brand Personality
    • Brand Association
    • Personality Based on:
    • Expression of self or User Imagery
    • Eg: Nike – Achivement Performance
    • User/Customer – Brand Relationship Eg: McDonalds- Fun Family
    • Functional Benefit – Association Based Eg: Gujarat Ambuja- Strong Man
  • 9. Identity vs Image Brand Image Consumer Market, Competition, Media Brand Identity Noise Strategic Vision, Business Needs Corporate
  • 10. What is Brand Identity?
    • Simply put: What does a Brand stand for?
    • Heart and Soul of the Brand: Brand Constitution, Brand Framework
    • Provides Strategic Vision – Direction, meaning, purpose to the brand
    • Combination of Brand Vision, Purpose, Values & Associations
    • “… is a set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the Brand stands for and imply a promise to customers from the organization members” - Aaker
  • 11. What is not Brand Identity : Traps
    • Brand Image Trap: Eg: Denim: Macho
      • Based on consumer perception. Tactical, Reactive
      • Lacks Strategic Future Perspective
    • Brand Position Trap: Eg: Elle 18 : Teenagers
      • Based on Competitive Advantage. Relates to current market scenario, consumer needs. Communication captures only a particular aspect of the Brand
      • Limited Scope. May not be applicable in the Future
    • External Perspective Trap: Eg: Tata: Trusted Quality
      • Customer centric, lacks employee buy-in
    • Product –Attribute Fixation Trap: Eg: Britannia Biscuits
      • Based on Product Attributes, Product Benefits
      • Limits the expansion of the Brand... Open to threat as it equates the Product to the Brand
  • 12. Brand Concepts Brand Image , Personalities, Associations BRAND Brand Framework Product Framework PRODUCT/S What it does? RECEIVER SENDER How it does?
  • 13. How? – Strategic Brand Analysis
    • Processes: Semiotics- Image Study: Factor Analysis- Attribute Rating, Perceptual Map, Cluster Analysis- Profiling
    Consumer Company Competitor Image Needs Trends Performance Image Heritage SWOT Relationships Image Positioning Communication SWOT
  • 14. Brand Identity Systems: Aaker
          • Brand as an ORGANISATION
          • Extended Identity
          • Brand as Brand as
          • PRODUCT PERSON
          • (Peripheral Support Values)
          • Brand as Symbol
    SUPPPORT VALUE PROPOSITION Functional + Emotional + Self Expressive Benefits Core Identity
  • 15.
          • Efficient Service, Hygienic, Clean , Smart
          • Service
          • American Ronald
          • Fun
          • Ronald, Happy Meals, Parties
    Tasty, VFM Burgers, Fries & Drinks Create environment to provide fun & entertainment For family and kids VFM, Hygiene, Happy Family McDonald’s Brand Identity System VFM, Tasty, Quality, Burgers & Fries, Happy Meal Promos Fun, Happy, Friendly, Family, Warm, Outgoing Ronald, Happy Meals. Clean Environment, Efficient Srvice
  • 16.
    • Guides Brand Strategy
    • Strengthens Brand Memorability, Communication, Associations
    • Provides Brand Extension possibilities
    • Assists Portfolio Reorganization
    • Improves Competitive Advantage
    • Adds Value to organization – Market Value
    • Gives a sense of direction to employee
    Why ? – Leveraging Brand Identity
  • 17. When? – Change vs Consistency
    • Need to change Identity Position Communication:
      • Poorly Conceived Mismatch: Digen Verma
      • Obsolete: Philips… Innovation
      • Shrinking Audience: Ponds … Oil Control
      • Not Contemporary: Lakme… Fashion
      • Fatigue: Britannia… Health & Nutrition … Intelligence
  • 18. Need For Consistency
    • Brand Building takes time:
      • Amul girl & Utterly Butterly Delicious Amul
      • Marlbro Rough Cowboy
    • Results in Cost Efficiencies
    • Organizational Pressures to change:
      • “ Change” a solution to all problems
      • “ Facelift” to fight Boredom
      • “ Self-Promotion”
    • BRAND
    • ENGINE
    Business Potential Brand Value Segmentation Target Positioning Marketing Mix Product/Pkg Price Place Promotion Mktg Plan Sales Plan
  • 20. Brand Strategies To Fuel the Brand Engine
    • Strategy 1:- Extension- Giving birth to new product brands
    • Strategy 2 :- Revitalization- Injecting life to the existing brand
    • Revitalization:- Injecting life to same brand, energizing a mature brand
    • Need to inject life into the Mature Brand
    • “ Facelift” … Recharging the Brand Batteries
  • 21. Brand Decisions: Leveraging Brand Identity
    • Brand Extension Strategy
    • Brand Revitalization / “Restage”
  • 22. Simply Put…
    • Brand Identity: What does a Brand mean / stand for
    • Brand Extension: What would you like (enjoy, love, admire) the brand to do for you.
    • Brand Revitalization: How would you like to see the Brand tomorrow (Future Expectations).
    • Brand System / Architecture: What are the important Relations that the Brand has
    • Brand Limitations: What would you dislike (hate, anger, shame) the Brand to do.
  • 23. Brand Extension Strategy
  • 24. Need for Brand Extension
    • Brand Growth
      • Mature brand : provide fillip to stagnating sales
      • Threat of new entrants: Protect Market Share
      • Strengthen franchise
    • Enhance Brand Image
      • Strengthen Brand Identity
      • Revive core values
      • Reposition core values
  • 25. Ways in which a Brand can be Extended
    • Line Extension
    • Brand Extension
    • Multiple Brands
    • New Brands
  • 26. Line Extension Strategy
    • Extend existing brand name to existing product category: Identify & occupy different segments of the market – “ market fragmentation ”
      • Pack variants: shampoos: sachets to economy packs… tubes to jars, bottles to cans : differentiate uses
      • Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive: differentiate user groups… Parachute Uttam (differentiate markets)
  • 27. Line Extension Strategy
    • Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin type, user groups: Differentiate user needs
    • … Colgate Gel, Maggi Chinese Noodles
    • Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs
    • … Head & Shoulders… ZPTO, Menthol
  • 28. Brand Extension Strategy
    • Extend the brand name to a new Product Category: Brand fit in a new business area
      • Supplementary Categories: BPL TV to Washing machines, Maggi soups & sauces, Lakme lipsticks to perfumes
      • Complementary Categories: Colgate toothbrush & toothpaste
      • Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-shirts
      • Diverse Categories: Similar core values: Britannia biscuits to dairy products. Dabur Chavanprash to Vatika
  • 29. Multiple Extension Strategy
    • New Brand names in the same product category “market saturation”
    • Expensive strategy: Leading corporates… often through acquisitions… economies of scale
      • HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy, Dove, Pears
      • P&G Detergents: Ariel, Tide
      • Coca Cola: Coca Cola, Thums Up…
      • Lakme: Elle 18, Orchids
      • Nescafe, Sunrise
  • 30. New Brand Strategy
    • New Brand Name for a product category: poor brand fit but business potential
      • Kotex to Kleenex
      • Huggies to Depend
      • Thums Up to Gold Spot, Pepsi to Mirinda
      • Lakme to Elle 18
  • 31. Stretching the Brand Vertically
    • Understanding the terms:
    • Vertical stretch: Technically a Line extension since it is the introduction of Price Variants of an existing Brand in the existing Product Class
    • Stretching Up: Extending the Brand to a Higher Priced Segment
    • Eg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at Rs 60
    • Stretching Down: Extending the brand to a Lower Priced Segment
    • Eg: From Ariel Washing Powder to Ariel Gain Washing Powder
    • Note: Both products co-exist at 2 different Price Points under the same brand
  • 32. Brand Stretch & Market Segments EXISTING BRAND STRETCH DOWN STRETCH UP Market Potential Brand Image
  • 33. Brand Extension Horizons Line Extension Horizon 1 Brand Extension Horizon 2 Brand Extension Horizon 1
  • 34. Effect of Brand Extensions
    • More Good: Extension enhances Brand name.
    • Good: Extension aids Brand Name
    • Bad: Extension fails to help Brand Name
    • Ugly: Extension Damages Brand Name
    • More Ugly: Brand Name is Forgone
  • 35. Post Mortem
    • Colgate Gel : More Good
    • Rexona Does : More Good
    • Close Up Whitening : Good or Bad ? (credibility?)
    • Amul Pizza : Good or Bad (price?)
    • Britannia Cheese, Ghee … More Good
    • Sunsilk Hairoil : Bad (Identity or product?)
    • Diet Coke : Bad… Good?? (Identity… Market evolution)
    • Frooti Apple Drink : Ugly (Identity?)
  • 36. Note…
    • Good understanding of the Brand Identity… may or may not lead to the Success of the Brand Extension.
    • But a poor understanding of Brand Identity will definitely lead to the failure of the Brand Extension… & may also damage the existing Brand.
  • 37. Brand Revitalization
    • Inject life into a Mature Brand = Facelift
    • Enhance Brand equity: improved recognition, enhanced perceived value, changed associations, an expanded consumer base & or increased loyalty
    • Movement from milking Cash Cows to Brand Restage (External Stars), ina competitive context
    • Recognition of the Power of Old Brands vs the Expense & Risk of Creating New Brands
  • 38. Brand Revitalization/ Rejuvenation Efforts to extend the Brand Life Cycle SALES TIME Prevent further Decline, retain sales growth
  • 39. Today’s need: Continuous Process of Revitalization Revitalization: Starts at an early stage before a brand shows a decline in Sales Sales Time
  • 40. Ways to Revitalize Increased Usage New Markets Extensions Obsolescing Product Augmenting Product Repositioning New Users
  • 41. Increased Usage
    • Increased Salience: Dettol
    • Increased Frequency/Regular Use: Shampoos : Head & Shoulders, economy pack, travel pack
    • Incentives/Promotions: Filmfare, Frequent Flier Programs
  • 42. New Uses
    • New Gifting Solutions: Tiffany’s & Cadbury’s
    • Festive Occasions: Asian Paints
    • Multiple Functional Uses: Milkmaid recipes
    • Behavioral shifts: Moov – Sprains to Back Aches
  • 43. New Markets
    • Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults
    • Growth in new segments: Personal Computers
  • 44. Repositioning the Brand
    • Image Upgrade: Philips “Lets make things Better”
    • Revive Image: Lakme, Dettol
    • Change Association: Britannia from biscuits to healthy food
  • 45. Augmenting the Product
    • Packaging Upgrade: Crocin, Shampoo, fliptops
    • Product Upgrade: New improved Lux
    • Increased Customer Involvement: Wills & Cricket, Sunsilk & Parlours, Surf & Laundry Service
  • 46. Obsolescing the Product
    • Fashion Products: Colour cosmetic range, Revlon, Designer Watches- Titan
    • Technology Products: Sony Music… mobiles… Windows
    • Dying Categories: Pond’s vanishing cream – Oil Balanced Formula
  • 47. Restage Vs Re-engineer
    • Restage: Maintain the Star Status of a product through constant innovation & activity to CONTINUOUSLY enhance the brand equity salience over a period of time
    • Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs risk…. multiple changes to be orchestrated in conjunction ….. Recognizing & Leveraging the core identity
  • 48. Remember… If you don’t, someone else will
    • What Iodex did not do, Moov did.
    • What HMT did not do, Titan did.
    • What Indian Airlines did not do, Jet Airways did.
  • 49. Brand Exercise
    • Develop a Benefit Ladder for the product Category based on Consumer needs / Motivation
    • Create a perceptual map for the leading 3-4 brands in the Category
    • Outline the Brand Image (from consumer research & Brand Values assuming the role of the Company)
    • Give 3 possibilities of Brand extension, Line extension and Brand Revitalization
    • Develop a brand Positioning Statement
    • Identify a consumer insight which you can use in your communication
  • 50. Motivation Perception Image Insight…. Question Bank
    • How would you describe Hit as a person vs Raid vs Baygon?
    • Imagine 10 years from now, where would you see these people… (individually)
    • Can you describe their family members
    • Which animal would you associate with the following brands?
    • Which Car would you associate with eash of the above brands?
    • Which celebrity / sport person would you associate with each of the above brands?
    • Which kind of person do you think will use the above brands?