9512060 brand-management-part-1-understanding-branding

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9512060 brand-management-part-1-understanding-branding

  1. 1. What is the Territory of the Brand? Six inches wide Grey and wet Mysterious
  2. 2. Contents <ul><li>Presentation Objective </li></ul><ul><li>Understanding Branding </li></ul><ul><ul><li>From Products to Brands </li></ul></ul><ul><ul><li>Brand Attributes </li></ul></ul><ul><ul><li>Brand Management </li></ul></ul><ul><ul><li>Brand Architecture </li></ul></ul><ul><ul><li>Exercise </li></ul></ul><ul><li>Brand Building </li></ul><ul><ul><li>Brand Audit </li></ul></ul><ul><ul><li>Connection Triangle </li></ul></ul><ul><ul><li>Big Idea </li></ul></ul><ul><ul><li>Evaluating Advertising </li></ul></ul>
  3. 3. Presentation Objective <ul><li>To understand the facets / issues involved in branding </li></ul><ul><li>To develop a framework for building a brand </li></ul>
  4. 4. Presentation incorporates learnings from <ul><ul><ul><li>India’s Branding School, founded by Reliance: MICA </li></ul></ul></ul><ul><ul><ul><li>Personal Work Experience </li></ul></ul></ul><ul><ul><ul><li>Al Ries & Laura Ries: The 22 Immutable Laws of Branding </li></ul></ul></ul>Al Ries, David Ogilvy & Ambani
  5. 5. Contents Branding Process Brand Building Understanding Branding
  6. 6. Module 1 Understanding Branding Understanding Branding Brand Building
  7. 7. Module 1 Understanding Branding <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management <ul><ul><ul><li>Attributes </li></ul></ul></ul><ul><ul><ul><li>Products to brands </li></ul></ul></ul>Understanding Branding Brand Building
  8. 8. Module 1 Understanding Branding <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management <ul><ul><ul><li>Attributes </li></ul></ul></ul><ul><ul><ul><li>Products to brands </li></ul></ul></ul>Understanding Branding Brand Building
  9. 9. Module 1 - Stage 1 From Products to Brands Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  10. 10. Module 1 - Stage 1 From Products to Brands <ul><li>A brand is more distinctive than a product </li></ul><ul><li>It is first of all a name, a means of identification </li></ul><ul><li>Secondly it s a set of added values offering both functional and psychological benefits </li></ul>Brand v/s. Product Above all ‘ a brand is a promise’ Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  11. 11. Module 1 - Stage 1 From Products to Brands A Brand is a Promise “ … A seller’s promise to deliver consistently a specific set of features, benefits and services to buyers. Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  12. 12. Module 1 - Stage 1 From Products to Brands …… .a short-hand that communicates powerfully & reduces uncertainty
  13. 13. Fevicol Case
  14. 14. Fevicol Case
  15. 15. Fevicol Case
  16. 16. Brand as an Asset <ul><li>“ If Coca Cola lost everything except for ‘the formula’ and its brand name , it could walk into any bank in the world and get $100 billion loan to start from the scratch” </li></ul><ul><ul><li>Fortune Magazine </li></ul></ul>
  17. 17. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management <ul><ul><ul><li>Attributes </li></ul></ul></ul>Products to brands Understanding Branding Brand Building
  18. 18. Module 1 Understanding Branding <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management <ul><ul><ul><li>Attributes </li></ul></ul></ul>Products to brands Name Logo Colours Essence Understanding Branding Brand Building
  19. 19. Module 1 - Stage 2 Attributes Immutable Law of Name In the long run the brand is nothing more than a name
  20. 20. Module 1 - Stage 2 Attributes <ul><li>Brand Name </li></ul><ul><li>Short </li></ul><ul><ul><li> Kodak, Fuji </li></ul></ul><ul><ul><li>CNN an AOL Time Warner Company </li></ul></ul><ul><li>Distinctive </li></ul><ul><ul><li>Toyota’s Lexus is distinctive.Toyota’s Luxury commonplace </li></ul></ul><ul><ul><li>Orange was a striking name in a world of tel and coms </li></ul></ul><ul><li>Not mean anything rude or silly in another language </li></ul><ul><ul><li>Big Macs( McDonald’s) is a slang for big breasts in Canada </li></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  21. 21. Module 1 - Stage 2 Attributes <ul><li>Brand Name </li></ul><ul><li>Avoid generic / line extended names </li></ul><ul><ul><ul><li>Xerox as opposed to Haloids Paper Master </li></ul></ul></ul><ul><ul><ul><li>Xerox (Copier) is powerful. Xerox Computer is not </li></ul></ul></ul><ul><li>Changing your name will not overcome a bad strategy </li></ul><ul><ul><ul><li>“ Monday” (Price Waterhouse Coopers ) </li></ul></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  22. 22. Module 1 - Stage 2 Attributes A brand’s logotype should be designed to fit the eyes. Both eyes Immutable Law of Shape
  23. 23. Module 1 - Stage 2 Attributes Name Logo Colours Essence <ul><li>Brand Logo </li></ul><ul><li>Simple logo, designed to fit both eyes </li></ul><ul><ul><li>Mercedes three star </li></ul></ul><ul><li>Logos with a horizontal bias </li></ul><ul><ul><li>Logo with a horizontal bias is esp. useful for retail brands </li></ul></ul><ul><li>Logo font has to be clear and legible </li></ul><ul><ul><li>A housewife does not buy Ariel because it is written in a specific font </li></ul></ul>Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  24. 24. Module 1 - Stage 2 Attributes
  25. 25. Module 1 - Stage 2 Attributes A brand should use a colour opposite of its rival Immutable Law of Colour
  26. 26. Module 1 - Stage 2 Attributes The Cola Wars: Energy Vs. Peace
  27. 27. Module 1 - Stage 2 Attributes <ul><li>Brand Colours </li></ul><ul><li>Colours have meanings </li></ul><ul><ul><ul><li>Purple means royalty </li></ul></ul></ul><ul><ul><ul><li>Red is energetic </li></ul></ul></ul><ul><ul><ul><li>Blue is peaceful </li></ul></ul></ul><ul><li>Opposite colours can differentiate </li></ul><ul><ul><ul><li>Coke is red, Pepsi is blue </li></ul></ul></ul><ul><ul><ul><li>Kodak is yellow, Fuj i is green </li></ul></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  28. 28. Module 1 - Stage 2 Attributes <ul><li>Brand Colours.. </li></ul><ul><li>Colours can help you stand out </li></ul><ul><ul><ul><li>FedEx ’s orange and purple packet stands out in corporate blue </li></ul></ul></ul><ul><li>Logo and colours help, but the power of the brand </li></ul><ul><ul><ul><li>Essentially in the meaning of the brand name in consumer’s mind, its essence </li></ul></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  29. 29. Module 1 - Stage 2 Attributes Most important thing for a brand is its single mindedness. Immutable Law of Singularity
  30. 30. Module 1 - Stage 2 Attributes Single-mindedness means consistency. Fresh and interesting manifestations of a single idea.
  31. 31. Module 1 - Stage 2 Attributes <ul><li>Brand Essence </li></ul><ul><li>A brand must “leverage a compelling truth” </li></ul><ul><ul><ul><li>Linux stands for freedom as opposed to Microsoft’s monopoly </li></ul></ul></ul><ul><li>A brand should mean a single powerful thing: the essence </li></ul><ul><ul><ul><li>Essence of Volvo is Safety </li></ul></ul></ul><ul><ul><ul><li>Essence of Tata is trust </li></ul></ul></ul><ul><ul><ul><li>Essence of Fevicol is bonding </li></ul></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  32. 32. Module 1 - Stage 2 Attributes <ul><li>Brand Essence </li></ul><ul><li>A brand should also be clear of what is not its essence </li></ul><ul><ul><ul><li>In India, STAR NEWS is not a channel of the masses unlike STAR PLUS </li></ul></ul></ul><ul><li>A brand should drive single mindedly its essence </li></ul><ul><ul><ul><li>Volvo has been selling safety for 35 years </li></ul></ul></ul><ul><ul><ul><li>Raymond has been selling the complete man for over 2 decades </li></ul></ul></ul><ul><ul><ul><li>Essence of Dettol is protection against germs </li></ul></ul></ul><ul><li>A brand loses its essence if it starts meaning a lot of things </li></ul><ul><ul><ul><li>What is Miller :A regular,light,draft,cheap, expensive beer </li></ul></ul></ul>Name Logo Colours Essence Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  33. 33. Module 1 - Stage 2 Attributes A brand should try to own a word in consumer’s mind Immutable Law of Word
  34. 34. Module 1 - Stage 2 Attributes
  35. 35. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management Products to brands Management Understanding Branding Brand Building
  36. 36. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Products to brands Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Management Management
  37. 37. Module 1 - Stage 3 Management <ul><li>Co-Brand </li></ul><ul><li>Brands need to address a similar need segment </li></ul><ul><ul><ul><li>Kellogg's Pop-tarts with Smuckers Jam </li></ul></ul></ul><ul><li>Brands with complementary strengths: Seen often on the Net </li></ul><ul><ul><ul><li>NY Times gives Amazon credibility </li></ul></ul></ul><ul><ul><ul><li>Amazon makes NY Times look modern. </li></ul></ul></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  38. 38. Module 1 - Stage 3 Management <ul><li>Stealth Brand </li></ul><ul><li>Brand building that attracts customer attention but not of rivals </li></ul><ul><ul><ul><li>Home-to-home, word of mouth / PR, internet community building </li></ul></ul></ul><ul><ul><ul><li>Krispy Kreme relies only on PR </li></ul></ul></ul><ul><li>Good option when unsure of a new medium/market </li></ul><ul><ul><ul><li>Little promotion for Maytag website as opposed to a buy.com. Maytag sold 1000s of Neptune washers on web </li></ul></ul></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  39. 39. Module 1 - Stage 3 Management <ul><li>Fighting Brand </li></ul><ul><li>Pricing led branding option. Works as a competitive response. </li></ul><ul><ul><li>Smirnov (Heublein) Case </li></ul></ul><ul><ul><ul><li>Smirnov attacked by W’schmidt @ $1 less </li></ul></ul></ul><ul><ul><ul><li>Heublein raised the price of Smirnov </li></ul></ul></ul><ul><ul><ul><li>Heublein introduced Reiska(fighting brand) at the same price point as W’schmidt </li></ul></ul></ul><ul><ul><ul><li>Heublein added Popov lower than both </li></ul></ul></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  40. 40. Module 1 - Stage 3 Management <ul><li>Fighting Brand </li></ul><ul><li>Built as new, independent brand </li></ul><ul><ul><li>Prevents dilution of the leading brand </li></ul></ul><ul><ul><ul><li>HLL introduced Wheel to fight Nirma </li></ul></ul></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  41. 41. Module 1 - Stage 3 Management There is a time and place to launch a second brand Immutable Law of Siblings
  42. 42. Possibly even a third or a fourth brand..
  43. 43. Module 1 - Stage 3 Management <ul><li>Multi Brand </li></ul><ul><li>Key to a multi-brand approach is to give each sibling a unique identity </li></ul><ul><ul><ul><li>Time, Fortune,Life, Money, People </li></ul></ul></ul><ul><li>Tempting to mash the brands and top it with corporate frosting </li></ul><ul><ul><ul><li>Tata Salt,Tata Tea </li></ul></ul></ul><ul><li>Second brand risks diluting equity </li></ul><ul><li>Is Kingfisher Mild drinker more likely to be from Kingfisher or from Fosters? </li></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  44. 44. Module 1 - Stage 3 Management <ul><li>Multi Brand.. </li></ul><ul><li>Common product area focus </li></ul><ul><ul><li>Shampoos: Clinic Plus, Ayush, Sunsilk </li></ul></ul><ul><li>Single attribute segmentation </li></ul><ul><ul><li>Price:Maruti 800, Zen, Esteem </li></ul></ul><ul><li>Sibling creates a new category </li></ul><ul><ul><li>Herbal Anti-Dandruff category by Ayush </li></ul></ul>Co-Brand Stealth Brand Fighting Brand Multi-Brand Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  45. 45. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management Products to brands Architecture Understanding Branding Brand Building
  46. 46. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Management Products to brands House of Brands Endorsed Brand Sub Brand Branded House Understanding Branding Brand Building Architecture Architecture
  47. 47. Module 1 - Stage 4 Architecture Immutable Law of Contraction A brand becomes stronger when you narrow its focus
  48. 48. Module 1 - Stage 4 Architecture The Economist is red and daring. Provocative, brutally honest and non-conformist
  49. 49. Module 1 - Stage 4 Architecture <ul><li>House of Brands </li></ul><ul><li>Often dictated by corporate strategy. Core competence of the firm is marketing / branding </li></ul><ul><ul><li>P&G is the prime example. Its “big” with the channel </li></ul></ul><ul><li>Multiple independent brands allows company to fill each niche </li></ul><ul><ul><li>Helps brand focus </li></ul></ul><ul><li>Gives an opportunity for the company to focus on each brand and contract its scope. </li></ul>Products to brands House of Brands Endorsed Brand Sub Brand Branded House Understanding Branding Brand Building Exercise Architecture Management Attributes
  50. 50. Module 1 - Stage 4 Architecture <ul><li>Endorsed Brand </li></ul><ul><li>Endorsement used as a device to transfer brand assets from one brand(corporate) to another </li></ul><ul><ul><ul><li>Titan from TATA, transferring trust </li></ul></ul></ul><ul><li>Danger of diluting the equity of endorsing brand </li></ul><ul><li>Best as a transitional strategy </li></ul><ul><ul><ul><li>Gain, from makers of Ariel </li></ul></ul></ul>Products to brands House of Brands Endorsed Brand Sub Brand Branded House Understanding Branding Brand Building Exercise Architecture Management Attributes
  51. 51. Module 1 - Stage 4 Architecture Immutable Law of Expansion Brand’s power inversely proportional to scope.
  52. 52. Module 1 - Stage 4 Architecture The Volkswagen bus ad, talked only about ‘plenty of room’
  53. 53. Module 1 - Stage 4 Architecture <ul><li>Sub Brand </li></ul><ul><li>Inside out branding.Company pushes core brand in different directions </li></ul><ul><li>Sub-branding can destroy what branding builds </li></ul><ul><ul><li>Donna Karan menswear, DKNY, DKNY menswear, DKNY kids </li></ul></ul>Products to brands House of Brands Endorsed Brand Sub Brand Branded House Understanding Branding Brand Building Exercise Architecture Management Attributes
  54. 54. Module 1 - Stage 4 Architecture Immutable Law of Company Brands are brands, companies are companies. There is a difference.
  55. 55. Module 1 - Stage 4 Architecture <ul><li>Branded house </li></ul><ul><li>Consumers buy brands, not companies </li></ul><ul><li>Danger of branded house, being many things to one group of people </li></ul><ul><ul><li>Virgin? Does “Virgin trains” work? </li></ul></ul><ul><li>May motivate trade, so might be useful for PR purposes with trade/other stakeholders </li></ul><ul><ul><li>P& G way </li></ul></ul>Products to brands House of Brands Endorsed Brand Sub Brand Branded House Understanding Branding Brand Building Exercise Architecture Management Attributes
  56. 56. Module 1 Understanding Branding Attributes <ul><ul><ul><li>Exercise </li></ul></ul></ul>Architecture Management Products to brands <ul><ul><ul><li>Exercise </li></ul></ul></ul>Understanding Branding Brand Building
  57. 57. Module 1 Understanding Branding <ul><li>Two brand positioning within the same brand family?How do we reconcile the two positions? </li></ul><ul><li>The options available to us </li></ul><ul><ul><ul><li>Single brand </li></ul></ul></ul><ul><ul><ul><li>Stand Alone New Brand </li></ul></ul></ul><ul><ul><ul><li>Transfer of Brand Assets from an existing brand </li></ul></ul></ul><ul><li>What are the pros and cons of each option ? </li></ul>Exercise
  58. 58. Module 1 Understanding Branding Attributes Architecture Management Products to brands Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building <ul><ul><ul><li>Exercise </li></ul></ul></ul><ul><ul><ul><li>Exercise </li></ul></ul></ul>
  59. 59. Module 1 - Stage5 Exercise <ul><li>Single Brand Family </li></ul><ul><li>‘ Stand-alone’ New Brand </li></ul><ul><li>Transfer of Brand Assets ‘x from y’ </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  60. 60. Module 1 - Stage5 Exercise <ul><li>Option : Single Brand family </li></ul><ul><li>Constant values / different products </li></ul><ul><ul><li>Dettol antiseptic / soap / hand wash </li></ul></ul><ul><ul><li>Crest toothpaste / Mouth wash (But not chewing gum) </li></ul></ul><ul><li>Differentiate on product usage </li></ul><ul><ul><li>IBM Value Point - Entry level purchase </li></ul></ul><ul><ul><li>Gillette Good News Line - Disposables </li></ul></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  61. 61. Module 1 - Stage5 Exercise <ul><li>Option : Single Brand family </li></ul><ul><li>Use as umbrella branding </li></ul><ul><ul><li>TATA Trust </li></ul></ul><ul><ul><li>SONY Electronic technology </li></ul></ul><ul><ul><ul><li>But Taj from TATA for Performance segments </li></ul></ul></ul><ul><li>Difficult for a single brand to straddle Performance and Price segments </li></ul><ul><ul><li>Surf entry in popular segment with Surf Easywash. Withdrew after 2 yrs </li></ul></ul><ul><ul><li>Gap changed Gap Warehouse to Old Navy Clothing due to perceived brand erosion </li></ul></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  62. 62. Module 1 - Stage5 Exercise <ul><li>Option : Single Brand family </li></ul><ul><li>Learnings </li></ul><ul><li>+ Cheaper than creating a new brand </li></ul><ul><li>- Difficult to stretch brands across Price and Performance </li></ul><ul><li>- Risk of eroding present position </li></ul><ul><li>- Lose opportunity of creating a new segment </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  63. 63. Module 1 - Stage5 Exercise <ul><li>Option : ‘Stand-alone’ New Brand </li></ul><ul><li>Levers enters popular segment successfully with Wheel as opposed to Surf Easywash </li></ul><ul><li>Levers use of brand-wise differentiation of brand values and attributes to target consumer segments- Surf / Rin / Wheel / OK detergents </li></ul><ul><li>Toyota launches Lexus to enter the Premium Auto segment credibly </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  64. 64. Module 1 - Stage5 Exercise <ul><li>Option : ‘Stand-alone’ New Brand </li></ul><ul><li>Learnings </li></ul><ul><li>+ Clear brand identity, values and assets </li></ul><ul><li>+ Create new opportunity of a range possibility in Popular segment </li></ul><ul><li>+ Leave present brand secure </li></ul><ul><li>- Expensive to build brand assets </li></ul><ul><li>- Difficult to build trial as a stand-alone Brand </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  65. 65. Module 1 - Stage5 Exercise <ul><li>Option: Transfer of Brand Assets ‘x from y’ </li></ul><ul><li>Titan (from Tata’s) </li></ul><ul><ul><li>Worked well for Titan </li></ul></ul><ul><li>Sonata (from Titan) </li></ul><ul><ul><li>Eroding equity of Titan </li></ul></ul><ul><li>Gain (from the makers of Ariel) </li></ul><ul><ul><li>Apparently a ‘Transitional Strategy’ </li></ul></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  66. 66. Module 1 - Stage5 Exercise <ul><li>Option: Transfer of Brand Assets ‘x from y’ </li></ul><ul><li>Learnings </li></ul><ul><li>+ Cheaper than developing a new brand </li></ul><ul><li>+ Can be used as a ‘Transitional Strategy’ </li></ul><ul><li>- Still a risk of eroding present image </li></ul><ul><li>- Possible mix of values and assets </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  67. 67. Module 1 - Stage5 Exercise <ul><li>Branding Options: Conclusion </li></ul><ul><li>‘ Single Brand family possible if: </li></ul><ul><ul><li>Different products / similar values </li></ul></ul><ul><ul><li>Differentiate on end use </li></ul></ul><ul><li>‘ Stand-alone ‘New Brand’ best option to straddle values - however it is expensive to create a new Brand </li></ul><ul><li>‘ Transfer of Brand assets ‘x from y’’ possible, especially as a transitional strategy - still a risk of eroding present values and mixing values and assets </li></ul>Options Single Brand Family Stand Alone Brand Transfer of Brand Assets Understanding Branding Brand Building Exercise Architecture Management Attributes Products to brands
  68. 68. www.mastersungroup.com http://strategy-execution.blogspot.com [email_address]

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