Strategic brand management

Strategic brand management vim liquid In1993 Vim Bar was launched. This product had many benefits including better clean, ease of handling and easy storage. Vim Bar was re-launched in 1997 with an improved formulation and new communication, which tackled economy and performance. Much appreciated by the mass market, it resulted in conversions not just from powder users, but also from proxy users who did not upgrade to powders but preferred to use Vim Bar instead. Vim Dishwash Bar is the market leader with 60 per cent share in the Rs 400 crore branded dishwash market The brand has grown significantly registering strong double-digit growths in both volume and value terms. Vim Bar was relaunched a second time in 2002, with a unique “Stain Cutter” formulation that removes the toughest stains such as burnt milk and ghee stains. This new formulation evolved through research and is now setting benchmarks in tough stain removal. New Vim offers the consumer a superior performance at a great value. . New Vim with its contemporary packaging illustrates dynamism and swift stain cutting powers. HLL is focused on research and development for consistent delivery of superior products. Thus, New Vim has been developed with a unique stain-cutter formulation that removes the toughest stains such as burnt milk and ghee stains. New Vim offers the consumer a superior performance at a great value”. The new Vim has a totally new mix, right from the packaging to the formulation of the product. New Vim with improved formulation that solves the housewife’s yet unsolved problem of tough stain removal of burnt milk/ghee stain. Vim is the market leader in the dishwash category. Today Vim is available in powder, bar and liquid form. Vim continuously strives to innovate its products to enhance the lives of its consumers. Whether it be through its new 'Stain Cutter' formula in its Vim Bar or it's the stain busters in its powders, Vim stands for the best quality in dishwash products. Vim as a Brand 480060066040Vim, among Hindustan Lever's 30 power brands, is looking at scouring the competition further. Though the brand — led by the flagship Vim bar — remains the market leader in the overall 1,000-crore dishwashing market, HLL `complete kitchen cleaner' Vim (utensil cleaner), which is ranked the fourth most preferred brand in urban market, doesn’t find a place in the top ten in the rural market On brand equity ranking. Though it was a market leader Vim Dishwash Bar is the market leader with 60 per cent share in the Rs 400 crore branded dishwash market The brand grown significantly registering strong double-digit growths in volume and value terms Hll planned for brand extension Another brand extension was planned is that of an `applicator', to be priced at parity with nylon scrubbers. Currently, Scotchbrite is the only branded applicator in the market, priced at a premium. HLL has projected a Rs 260-crore turnover for Vim this year, which translates to a 21 per cent growth over the previous year. Vim bar, which accounts for over three-fourths of the Vim brand's sales, is expected to be the key driver of growth. "Of the projected Rs 260 crore, we expect Vim bar to be a Rs 240-crore brand by the year-end, with Vim detergent powder and Vim liquid accounting for the remaining Rs 20 crore," the official sa Vim liquid, meanwhile, would continue to be a slowburn brand. Vim also planned to extend the brand by introducing Detergent liquids . detergent liquids is a small, though emerging market and has a limited presence of brands such as Vim, Teepol and Pril. The market is estimated at 600 tonnes, or roughly Rs 200 crore. Vim liquid was rolled out recently in cities and towns with 10-lakh-plus population. Market Size: The total size of the dish wash market, estimated at Rs1,000-crore, recorded a 40 per cent growth over last year. Over 60 per cent of the market is dominated by bars, while dish wash powders accounts for 32 per cent. The penetration levels are, however, still very low. Estimates show that nearly 50 per cent of the urban population and 80 per cent of the rural one still use proxy products like ash and other cheap detergents for dishwashing purposes. HLL is the leading player, with its Vim Bar. MARKET SHARE: Of the overall Rs 1,000-crore diswashing market, the branded sector accounts for Rs 400 crore. According to AC Nielsen data, within the dishwashing bar segment, Vim's market share is estimated at 82 per cent share. Competitors: The brand faces tough competition from Nirma (in the North and West), Odopic (in the West) and Sabena (in the South) it was the strongest in maharashtra. Swot analysis 
STRENGTHSStrong brand portfolioPrice quantity & VarietySolid base of the CompanyInnovative AspectsUSP’S High quality ManpowerReach of the ProductsSocial responsibility of the CompanyCompetitive advantagesSuccess of the slogans- DIRT IS GOODOpportunitiesLarge Domestic Market.UntappedWEAKNESSStrong CompetitorsHigh price of the productSubstitute of the productPolicy of spending for the social responsibilityLack of control in the marketsLack reliability of dataLack of competitive strength Threats Tax & Regulatory Structure.Mimic of Brands.New Entrants.Increasing cost
STRATEGIC BRAND MANAGEMENT PROCESS OF vim liquid Steps key concepts Identifying and establish brand positioning and values Point of parity among to brands Stain removal Both vim and pril are focusing on the stain removal Emotional appreal Both companies following emotional appeal Pril Focusing on housewives and cause marketing for charity by hiring celebrities but not focusing on product and performance Vim Focusing on housewives and their learning process and to highlight the basic performance (stain removal) of their product. Clean and shine Both the diterrgent companies are focusing on the shine and cleaniless Packaging and sizes Both are available in same size and packaging Point of difference among brands Bleach content Pril has a larger content of bleach in its formula that is better for cleaning of all kinds of utensils ultimately giving it a more shiny and clean look. Vim is formulated with high quality phosphate builders and multi active surfactant to deliver superior cleaning in addition this formulation is further fortified with color safe bleach system and enzymes for superior stain removal from utensils. Whereas pril came up with their unique process for cleaning greases similar to that of vim but positioned differently thereby utilizing half the water as compared to other dish wash liquids as advertised in their ads Vim has become a generic name Vim has psychological advantage over any of its competitors as pril has achieved the level where pril has become a generic name for dishwasher category ,thereby creating association in mind of its consumer. Market/ Consumer Trends The trend has shifted from Powder to Bars and now its moving to Liquid dish wash The emerging category in dish wash market is the liquid dish wash. Pril from Henkel commands this market with a share of 70%. The other players are Vim, Teepol, Godrej Marketers believe that over a period of time, consumers will shift to Liquid since it offers more economy and convenience. But there is a problem with this category: Liquid dishwash is targeted at urban upper middle class home makers and here the users are home maids rather than home makers. It will be difficult to teach house maids to use the liquid efficiently. But if you see recently there was a article in Business Line – Influence Sells, where Henkel has targeted the maids as they are influencer like a mechanic for car spare parts. Henkel undertook an intensive study, which involved talking to housewives about their dish-washing patterns and learnt that as products like Pril were expensive, they were reluctant to give it to maid servants to use and preferred scourers with an abrasive action While dishwash liquids do work efficiently against grease, consumers prefer scourers with an abrasive action to clean grease There is high sale of 400gm Vim in first week as compared to rest of weeks, as the wife has disposable income at the start of the monthly. Subsequently she may go for 200 or 100 gm as per requirement Planning and implementing brand marketing program After the identifying it was found that the consumer used aluminum vessel to cook their food this made the company to change their entire communication. Earlier the company use to communicates as, “apka chehra bhi dekha ga saf”. Now seeing that the consumers were using aluminum vessel. It was a challenge for the marketers to appeal and communicate the product to the rural consumer and as it wont be sensible to communicate them with the same communication or base line. To come with new communication or tag line which the rural consumer can relate with their usage and behavioral pattern. Target consumer Target consumer for “vim” were Households wives Restaurants Shops and hotel that offer cooked food products Advertisement: HLL to advertise the vim used both medium of communicating that formal as well as informal. Formal advertising was done through: Newspapers and magazines Television Radio Cinema Outdoor advertisement through: Signboards Wall painting Local bus boards Product display boards between villages 6) Point of purchase used were Streamers Tinplates Hangings Promotion strategy This strategy was used at village to village basis Use of audio- video vans Door to door marketing Mohalla’s Retail contact Central location The formal media used to communicate the product was T.V, radio cinema ,print proportionately depending upon their reach and their influence on masses. The informal promotion strategy was formulated. The first step was the usage of audio- visual publicity vans. This publicity vans were covered by beautiful banners, this banners were embossed with the product photos, the base or tagline of the product and colorful picture that can attract the consumer. The audible material used were a tunes of current filmy songs, which were composed with new lyrics, this lyrics gave the special features about the vim. This step was used as an introduction of the product vim in rural markets. The second step in the promotion strategy was to do Door-to-door marketing. This step was very well designed. To do Door- to- door marketing the marketer employed the young local youths who can communicate with rural people in the local language. The Door-to-door marketing step was complementary to other step that involved the participation of the rural housewives, which contained games. This games were strategically designed so as to position the product and the price of the product in the minds of consumer. The games used were Spotting the right price. Match the pairs. Turn the wheel This games were used to entice the people and pull them to “mohalla” the small place between the houses so as to do mass marketing as much as possible. This all was done as process of mass marketing. The fourth step in promotion was Retail contact In this step the marketers gave scratch coupons to the consumers who came to purchased vim with incentive packages (i.e. packages one for two). The price given were on the. The prizes distributed to whom so ever won was 12months soaps. Prizes were distributed on the spot so to create better perception of the company and product in the mind of the consumer. The same was made applicable for the retailers on the bulk purchase. This retailers were also given special discount on their bulk purchase. The final step was that all the people were invited to the central location. This central location was usually a place were all the village people assembled so that becomes easy to communicate at large to the masses. The activity undertaken at the central location was cleaning up the sweet makers vessels, which was the toughest to do. It was communicated as “ Saf kare mitaheewale ki kadai” This exercise of promoting the product was one of the best as when it was proved in front of the consumer as vim cleaned “ the mitaheewale ki kadai” without living any greasiness. The advantages of the Vim were also shown to them. The advantages of vim were that it relieved from the hardship of scrubbing the vessel, which was done with ease with the help of “vim”. The other advantage was that it would certainly save their lot of time, which can be utilized effectively for some other work. This created a clear perception about the product. This process was used again and again in capturing different markets. Pricing Initially Vim bar was priced at Rs 14 for 400 gm. An entry-level Rs 200-gm Vim bar priced at R s 7 also exists. But with the launch of new vim it was priced at Rs 13 for a 400 gms pack and Rs 6.50 for a 200 gms pack. But with their foray into the rural areas the price was changed to Rs4 for 200gm and Rs7.50 for400gm. The prices were revised by keeping the consumer behavior, income, and consumption pattern of rural people. Liquid Dish Wash for Rs. 45 to 55 for 500ml (Private Labels are cheaper and run attractive schemes like 2+1 with MRP of Rs. 45). But there are some imported brands like Good Maid Bio is for Rs. 150 for 1000ml. Vim liquid comes in 150 and 225 gms for Rs. 15 and 25 respectively Vim powder is for Rs. 25 for 1Kg Packaging The rural customers are usually daily wage earners and they don’t have monthly incomes like the ones in the urban areas have. So the packaging was done in smaller units and lesser-priced packs that they can afford given their kind of income stream. Another important factor is Convenience. Since many households don’t have proper bathrooms and only have a window or things like that to keep such things . The packaging of “ VIM” done keeping in mind the expectations of people. The paper wrapped to vim bar was in yellow colors showing the brand name vim and containing the picture of lime clearly to show that it got lime contents in it. The colures used are red, yellow and green. This sort of packaging what made vim to be the market leader in the dish wash market . Grow and sustain brand equity BRAND PRODUCT MATRIX Vim was the first dish wash brand in the local market and has given Sri Lankan consumers a superior dish washing experience thorough its product range. Being the market leader with over 90% market share, Vim has become a household name in Sri Lanka. Vim offers you the only solution for grease and grime making your dishwashing experiences a pleasurable one. With Vim you could easily clean away the grease, grime and tough stains, and the lemon fragrance will make your dishes and utensils smell clean too. Vim offers you dishwashing solutions through dish wash bars, powders and liquids Key facts Vim dish-wash delivers a superior clean over proxy products such as soap, and is considered the only solution for dirt and grime Vim is the leading dish-wash brand in the local market with over 90% market share Vim was the first dish wash product in the local market and has now become a generic name, i.e. people refer to dish-wash bars in general as Vim Vim dish-wash products are available in bar, powder and liquid form and come with a lemon fragrance In 2004, Vim introduced a multi-surface cleaner, thereby extending its portfolio Did you know that….. Vim dishwash bars offer the grease removing power of 2 limes In 2004, Vim introduced the Vim Multi-Surface cleaner. This liquid cleaner with a pleasant fragrance can be used to clean floors, sinks, cookers and host of other surfaces in the house and even helps you to remove invisible dirt on these surfaces In 2005, over 3 million households in Sri Lanka used Vim dishwash products Vim Liquid gives excellent results in dishwashers Vim engages in demonstrations and sampling activities to give you the experience of the effectiveness of washing with a dish-wash product. Dishwash Bar Multi Surface Cleaner Dishwash Liquid Dishwash Powder Brand expansion strategy The company handed over the marketing for vim to O&M in Maharashtra and Andhrapradesh .O&M rural marketers adopted unique strategy in the initial stages to market the product in rural areas Maharashta and Andhrapradesh. As the marketers knew that it was the initial stage in rural areas and to provide a niche in the rural markets was difficult as the product itself was not available in this areas. First to target the market in rural areas they saw to it that the market which they are targeting was in the 2 to 3 km range from the highways because they knew it wont create sense to market the product in those areas which are away from the high ways as the product was not available in those areas. The overall marketing was based on district-to-district level. They had thought to enter in other areas beyond the 2to3km range after making the product available to the initial targeted market. So that it becomes easy for the marketers to introduce, as the product was available in the neighboring villages and the product becomes familiar to the people. CBBE Model: How To Build A Strong Brand Strong brands are important. The challenge is to build a brand that is strong, unique and favourable – a brand that evokes positive, emotional feelings. A brand where customers react and experience positively to the brand’s product/services/ideas/people. We need to create a brand that evokes the desired positive knowledge structures: thoughts, feelings, images, perceptions, attitudes. But how do we build one? Building a brand isn’t as easy as it sounds, but there is a marketing model providing guidance for brand building, called the customer-based brand equity model (CBBE model). The basic premise of the CBBE model is that the power of a brand resides in the minds of its customers. The CBBE model acts as a branding ladder, or building blocks to guide a firm’s marketing programs. Below is a diagram of the Customer-Based Brand Equity Model (CBBE model): CBBE: Customer-Based Brand Equity Model SALIENCE- LOGO,HISTORY,FIRST BUYER CHOICE ,LESS EXPENSIVE PERFOMANCE- GOOD SERVICE,LOW ON SAFETY,CONTEMPORARY,DIFFERENT SEGMENT,SUITABLE TO INDIAN ROAD IMAGERY- ONE TIME INVESTMENT,AVAILABLE,TRUSTWORTHY,LOYAL JUDGEMENT-MEDIOCRE QUALITY,GOOD UNDERSTANDING OF NEED,SATISFACTORY VALUE FEELINGS-MEDIOCRE RESPECT,SOCIAL APPROVAL RESONANCE- LOYALTO AN EXTENT,DO NOT GO OUT OF THEIR TO BUY IT Target consumer Target consumer for “vim” were Households wives Restaurants Shops and hotel that offer cooked food products Advertisement: HLL to advertise the vim used both medium of communicating that formal as well as informal. Formal advertising was done through: Newspapers and magazines Television Radio Cinema Outdoor advertisement through: Signboards Wall painting Local bus boards Product display boards between villages 6) Point of purchase used were Streamers Tinplates Hangings Strengths of marketing program It is effective and well-targeted to the consumers. The life spans of the ads are relatively shorter and they come up with new ads frequently to keep the interest of the consumers. Selection of clever brand elements and characters which are cost effective. Associations with the bigger and better events in India and abroad Weakness of the marketing program They do not have any associations with celebrities. Consumers get confused with the use of several new ads on just one product. Frequency of the ads in between programs is low which does not help in brand/product recall CBBE PYRAMID Start from the base of the pyramid and work your way up, building the blocks of a strong brand. Step 1: Salience - talks about Brand Awareness (depth and breadth) Identity – Ensure customers can identify the brand and can associate the brand with a specific product class or need. Depth of brand awareness: how likely the brand will spring to mind (recognition and recall) much the customer knows your brand when they see/hear about it Breadth of brand awareness: when the customer thinks about your brand, and the range of purchase/usage situations in which the brand comes to mind. Step 2a. Performance (2, 3, 3, 2, 1) Meaning – Establish meaning to the brand so that when customers think of the brand, they strategically link both tangible and intangible brand associations with the brand. Performance dimensions: 1a primary characteristics 1b secondary features 2a product reliability 2b durability 2c serviceability 3a service effectiveness 3b service efficiency 3c empathy 4a style 4b design 5 price Step 2b. Imagery User profiles, purchase and usage situations, personality and values, history, heritage and experiences. - usually intangible aspects of the brand - can be formed directly; via own experiences - can be formed indirectly; via external marketing communications, advertising, word-of-mouth 4 Main Intangibles: 1. User profiles: person (demographic such as age, gender, race, income; psychographic such as careers, attitudes towards life, social issues) or organisations (size and type e.g. “caring”) 2. Purchase and usage situations: channel type (department store, online, boutique); location (inside or outside home), activity during usage (formal or informal, dine-in or takeaway) 3. Personality and values: brand acts like a person e.g. modern, sophisticated, angry like Hungry Jack’s angry Angus Burger. Consumers often choose brands that they perceive and aspire themselves to be like so the brand personality is consistent with their own self-concept; otherwise, consumers who are “self-monitors” will be sensitive to how others see them, so will more likely choose brands whose personalities fit the consumptiong situation. 4. History, heritage and experiences: brands may use associations to relate to consumers’ recollections of personal or shared experiences. Brands can become iconic by using these experiences to tap into consumers’ hopes and dreams. Step 3a. Judgment Responses – Gauge customer responses to the brand identification and brand meaning. Brand judgments are personal opinions and evaluations about the brand. Judgment dimensions: quality, credibility, consideration, superiority Step 3b. Feelings (strong and favourable) Feelings dimensions: warmth, fun, excitement, security, social approval, self-respect Step 4. Resonance (intense and active) Relationships – Convert the brand response to create intense, active loyalty relationship between the customer and the brand. Loyalty, Attachment, Community, Engagement

Strategic brand management

by sukesh gowda on Apr 27, 2011

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