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7761872 Brand Concepts Strategy
 

7761872 Brand Concepts Strategy

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    7761872 Brand Concepts Strategy 7761872 Brand Concepts Strategy Presentation Transcript

    • Brand Concepts & Strategy IGTC 2003
    • Structure
      • What is a Brand?…. Product vs Brand
      • Brand Identity … Developing a Brand Framework
      • Brand Strategies … Extension & Revitalization
    • What is a Brand?
    • 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.
    • 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      • A Product is quickly outdated…A Brand is Timeless
    • 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 …
    • 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
    • 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
    • Identity vs Image Brand Image Consumer Market, Competition, Media Brand Identity Noise Strategic Vision, Business Needs Corporate
    • 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
    • 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
    • Brand Concepts Brand Image , Personalities, Associations BRAND Brand Framework Product Framework PRODUCT/S What it does? RECEIVER SENDER How it does?
    • 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
    • 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
            • 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
      • 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
    • 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
    • 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-WAGON
      • BRAND
      • ENGINE
      • BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEGY
      Business Potential Brand Value Segmentation Target Positioning Marketing Mix Product/Pkg Price Place Promotion Mktg Plan Sales Plan
    • 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
    • Brand Decisions: Leveraging Brand Identity
      • Brand Extension Strategy
      • Brand Revitalization / “Restage”
    • 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.
    • Brand Extension Strategy
    • 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
    • Ways in which a Brand can be Extended
      • Line Extension
      • Brand Extension
      • Multiple Brands
      • New Brands
    • 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)
    • 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
    • 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
    • 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
    • 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
    • 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
    • Brand Stretch & Market Segments EXISTING BRAND STRETCH DOWN STRETCH UP Market Potential Brand Image
    • Brand Extension Horizons Line Extension Horizon 1 Brand Extension Horizon 2 Brand Extension Horizon 1
    • 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
    • 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?)
    • 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.
    • 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
    • Brand Revitalization/ Rejuvenation Efforts to extend the Brand Life Cycle SALES TIME Prevent further Decline, retain sales growth
    • Today’s need: Continuous Process of Revitalization Revitalization: Starts at an early stage before a brand shows a decline in Sales Sales Time
    • Ways to Revitalize Increased Usage New Markets Extensions Obsolescing Product Augmenting Product Repositioning New Users
    • Increased Usage
      • Increased Salience: Dettol
      • Increased Frequency/Regular Use: Shampoos : Head & Shoulders, economy pack, travel pack
      • Incentives/Promotions: Filmfare, Frequent Flier Programs
    • 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
    • New Markets
      • Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults
      • Growth in new segments: Personal Computers
    • Repositioning the Brand
      • Image Upgrade: Philips “Lets make things Better”
      • Revive Image: Lakme, Dettol
      • Change Association: Britannia from biscuits to healthy food
    • Augmenting the Product
      • Packaging Upgrade: Crocin, Shampoo, fliptops
      • Product Upgrade: New improved Lux
      • Increased Customer Involvement: Wills & Cricket, Sunsilk & Parlours, Surf & Laundry Service
    • 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
    • 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
    • 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.
    • 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
    • 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?