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1. Product and Brand Management
6

2. Brand Strategy
• By definition, a branding strategy is a long-term plan
for the development of a successful brand in order to
achieve specific goals.
• A well-defined and executed brand strategy affects all
aspects of a business and is directly connected to
consumer needs, emotions, and competitive
environments.

3. • Branding consists of a set of complex branding decisions.
Major brand strategy decisions involve ,
• brand positioning,
• brand name selection,
• brand sponsorship
• brand development.

5. Co Branding
• Co-branding is a marketing strategy that utilizes
multiple brand names on a good or service as part of a
strategic alliance.
• Also known as a brand partnership, co-branding (or
"cobranding") encompasses several different types
of branding collaborations, typically involving
the brands of at least two companies.

6. Co Branding
• In a special partnership with Ferrari, ICIC Bank recently
introduced the Ferrari Signature Credit Card.
• The card offers special discounts on fan merchandise
through Ferrari's online store. Additionally, users can
access a 15% discount on entry tickets to Ferrari World in
Abu Dhabi.
•

8. • Before going into the four branding decisions, also called
brand strategy decisions, we should clarify what a brand
actually is.
• A brand is a company’s promise to deliver a specific set of
features, benefits, services and experiences of consistently
to buyers.
• However, a brand should rather be understood as a set of
perceptions a consumer has about the products of a particular
firm. Therefore, all branding decisions focus on the consumer.
•

9. • A brand must be positioned clearly in target
customers’ minds. Brand positioning can be done at
any of three levels :
• on product attributes
• on benefits
• on beliefs and values.

10. • At the lowest level, marketers can position a brand on product
attributes. Marketing for a car brand may focus on attributes
such as large engines, fancy colours and sportive design.
• However, attributes are generally the least desirable level for
brand positioning. The reason is that competitors can easily
copy these attributes, taking away the uniqueness of the brand.
• Also, customers in developed countries are not interested
in attributes as such. Rather, they are interested in what
these attributes will do for them. That leads us to the next
level: Benefits.

11. • A brand can be better positioned on basis of a desirable benefit. The
car brand could go beyond the technical product attributes and
promote the resulting benefits for the customer: quick transportation,
lifestyle and so further.
• Yet, the strongest brands go beyond product attributes and
benefits. They are positioned on beliefs and values. Successful
brands engage customers on a deep, emotional level. Examples
include brands such as Mini and Aston Martin, BMW and
Mercedes
• These brands rely less on products’ tangible attributes, but more
on creating passion, surprise and excitement surrounding the
brand. They have become “cool” brands.

12. Multi Brand Portfolios
• Many companies have multiple brands within the same category . For a
multi-brand portfolio to be successful, each brand must be targeted to a
specific segment and must embody a unique selling proposition (USP).
• Consider Procter & Gamble’s laundry detergent portfolio in the United
States some time ago. To keep things simple for the purposes of this
exposition, assume P&G had only the following four brands with the
respective USPs:
• Tide, positioned as a complete family detergent
• Era, positioned as a stain fighter
• Cheer, positioned as protecting colors
• Gain, positioned as clothes that come out smelling clean

13. Multi Brand Portfolios
• The advantage of a multi-brand portfolio is that it allows
the company to cover all the different needs in a given
category, especially when some of those needs are
perceived by customers as being negatively correlated
with other needs.
• For instance, it would be hard to convince customers that
a laundry detergent protects colors from fading while also
being a stain fighter.

14. Multi Brand Portfolios
• A well-designed brand portfolio can cover the entire scope of
preferences in a category and, thereby, deny competitors any
opportunity to establish themselves. As a result, sales from a
multi-brand portfolio should be greater than if the company
were trying to cover the entire category with a single brand.
• Unfortunately, managing multi-brand portfolios, particularly
within the same product category, is not easy. The overlapping
positioning of brands in a portfolio results in cannibalization of
sales and unnecessary duplication of effort. Also, marginal
brands consume a disproportionate amount of company
resources.

15. Challenge in Multi Brands
• Let me use an analytical analogy to demonstrate the management
challenge. Imagine there is a beach, 100 meters long, with
beachgoers distributed evenly across this stretch.
• If one were to set up a single hot dog stand, the optimal location
would be at the 50-meter mark. This would minimize the total
distance that consumers in aggregate would travel.
• As a result, total sales would be maximized. Now assume that to
increase sales by improving consumer accessibility, it is decided to
set up two identical stands. Clearly, these stands should be located at
25 and 75 meters.
•

16. Challenge in Multi Brands
• To manage the two stands, one would need a person to run each stand.
These two — let’s call them managers — would be compensated through
the profits and sales from their respective stands.
• In the absence of location restrictions, both managers would be tempted
to move their stands slightly towards the center as that would allow them
to encroach on the other stand’s territory.
• Without strong central governance, both stands would ultimately end up
next to each other at the 50-metre line. No additional sales, only
additional costs!
•

17. Brand Creep
• In my experience, this ‘brand creep’ from their original
intended USPs is a trap that multi-brand portfolios find
hard to avoid.
• It requires strong management above the individual brand
managers to keep each brand consistent with its intended
strategy.
• Otherwise, over time brand overlaps are inevitable. Under
some conditions, slight overlap may be functional. But,
the frustration of continuously having to engage in
boundary management is usually not worth it.

18. Alternative to Multiple Brands –
Launching Sub Brands
• As an alternative to multiple brands, other approaches can
be deployed to achieve the objective of reaching different
segments.
• These include sub-brands and observable product
differentiation. Sub-brands can take many forms from
Diet Coke and Coke Zero to the BMW 3, 5, and 7 series.
• Mahindra XUV 500, 300, and 100

19. Alternative to Multiple Brands –
Launching Sub Brands
• When Mercedes introduced the A class car, which was going to be priced
substantially below any of the prevailing models of C, E and S class.
• The fear was that the A class would drag down the entire Mercedes brand.
• But one only had to look at the A class to know that it would not be confused
with the other models (and thus limit any cannibalization).
• In addition, it was explained that the brand would not suffer because the
positioning of Mercedes (as having the best car in each segment) was
enhanced by the A class. The A class was positioned as the best and most
expensive small car.
•

20. When can company think of
launching Multibrands
• Companies usually introduce another brand in the portfolio only
as a last resort since the associated management hassles are
usually not worth it.
• Resources are also required , A strong multi brand-governance
mechanism should be in place to ensure the brands are
continuously monitored against unintended brand creep.
• The cost of managing the two brands is less than the profits from
the additional sales generated by having two brands.
•

21. Brand Rejuvenation
• Brand rejuvenation involves adding value to an existing brand
by improving product attributes and enhancing its overall
appeal.
• It is intended to re-focus the attention of consumers on an
existing brand. Brand rejuvenation helps overcome the
consumer’s boredom in seeing the same product on the shelves
year after year.
• A consumer’s psychological desire for changing and
changing consumer needs and taste are key factors behind
brand rejuvenation.

22. Brand Rejuvenation
• Quite often, we see ongoing brands appearing as; ’new’, ‘super’,
‘special’ ‘premium,’ deluxe, ‘extra strong’ and ‘fresh’
• They appear in new shapes, new pack sizes, new containers, new
colors and flavors. Basically what happens here is an updating of
brands.
• Corn Products reintroduced Rex jam with pieces of fruit in it
and packed them in new containers. Cadbury’s 5 star chocolate
bar received a fill up through a new creamier and smoother
version.

23. • New Burnol: Burnol became ‘New’ and appeared in a new
pack.
•
New Horlicks : HMM its New Horlicks the New Horlicks
claimed more nourishment through additional protein and
calcium, eight essential vitamins and iron.
•
New Nescafe: Nestle rejuvenated Nescafe and brought in the
New Nescafe. New Nescafe was made using the new
agglomeration coffee process, instead of the fine powder form
and the coffee now came in small round goblets.
•

24. • New Bournvita: To give a push Bournvita, Cadbury’s came
out with New Bournvita, with extra glucose in a new packing
• .
New Vicks Vapour: P&G’s 100 year old Vicks Vaporub has
almost become a generic name for cold cure. Still P&G does
not keep quiet. New packages appear, new promotion
campaigns are launched and improvements in product
formulation area also made.
• In late 1990s, the brand received one such facelift and
appeared as New Vicks Vaporub.
•

25. Objectives of
rejuvenation are:
Rejuvenation aims at revival of brand. The intention is to
breathe some new life into a brand that may be showing signs
of decline.
Even healthy, successful brands may need occasional
rejuvenation. Because of competition, some re-formulation
and refinement become necessary from time to time.
The brand has to be updated. It ensures the steady success of
the going brand.
It helps keep the brand live and in focus.

26. • Some companies are constantly playing the rejuvenation game.
Cadburys, Procter & Gamble and Hindustan Lever are
examples of companies which believe in giving their products
the occasional facelift through rejuvenation.
• They have a strong R&D base and are constantly striving
to improve their existing brands. Hindustan Lever tops the
list. It keeps updating most of its brands – Surf, Close up,
Lux, Rexona, the list in fact is long.
• Even the 100 year old Lifebuoy got a facelift; it came in new
75 gm ‘rural pack’ as ‘New’ Lifebuoy. HLL conducts 15 to 20
rejuvenation programs, spread over its 30 major brands in
various product categories every year.
•

27. Brand Turaround
• When your brand faces poor external results with a
decline in sales, shrinking market share, and lower profit
margins due to lower prices or rising costs,
the brand leader needs to create a turnaround plan that
will fix it. From my experience with a brand
turnaround, you will need both a short-term and long-
term fix.

28. Brand Turaround
• Turnaround strategy means to convert, change or
transform a loss-making company into a profit-
making company.
• It means to make the company profitable again. The
main purpose of implementing a turnaround
strategy is to turn the company from a negative point
to a positive one.

29. DELL
• Dell is the best example of a turnaround strategy. ...
Then in 2007, Dell withdrew its direct
selling strategy and started selling its computers
through the retail outlets and today it is the second
largest computer retailer in the world.
•

30. • There are five stages in the turnaround process:
• Management Change,
• Situation Analysis,
• Emergency Action,
• Business Restructuring,
• Return to Normality.
•

31. LEGO
• In the late '90s, LEGO became obsessed with expanding their
brand via new, innovative product designs. And while that
might have sounded good in theory, in practice it meant
manufacturing thousands of new, unique pieces, and promoting
action figure-esque toys that had little connection to the classic
LEGO brick systems.
• LEGO felt the repercussions of this strategy decision in
2003, when the company lost $300 million on the year and
projected a loss of $400 million for the following year.
Turns out all those crazy new designs LEGO created had
never actually resonated with their target audience: kids.
•

32. • So when Jorgen Vig Knudstorp took over as CEO in 2004, he
took a new approach to LEGO product design: Ask the
kids what they want.
• And as LEGO discovered, kids didn't want to play with
pre-built, LEGO-branded action figures. They wanted
to build.
• So LEGO got rid of all those new, super-fancy pieces they had
introduced in the late '90s, and had their marketing team (who
had done extensive research) work with the product designers
to make sure they were creating LEGO lines that kids actually
wanted.

33. LEGO
• In 2006, LEGO commissioned the agency Blattner Brunner
to create a campaign that reflected this new direction.
"Imagine" got back to LEGO basics by showing classic
bricks casting shadows that resembled more complex
objects, imitating how kids use their imaginations when
building with LEGO.
• This Cannes Lions award-winning campaign signaled LEGO's
incredible comeback.
• In 2015, which LEGO declared its best year ever, the
company brought in $5.2 billion in revenue, making LEGO the
second biggest toy company in the world.

34. • In the autumn of 2015, in its 103rd year in the country, Nestle
India Ltd was a house demolished.
• Maggi Two-Minute Noodles, a brand it built over three
decades in India and loved by hikers, hostellers and
housewives alike, had crumbled.
• That June, the national food safety regulator had banned the
sale of Maggi noodles and directed Nestle to withdraw the
product. As the flagship product went up in flames—38,000
tonnes, literally—Maggi-branded jams, ketchups and
beverages too took the heat.
• From commanding 80% share of India’s noodles market, (as
estimated by Nomura Securities in May 2015) Maggi went
down to zero in just a month.

36. • From commanding 80% share of India’s
noodles market in May 2015, Maggi
went down to zero in just a month.

37. Suresh Narayanan, chairman and
managing director of Nestle India, was parachuted in from Philippines a year
earlier to put out the noodle fire.

38. • What started as Plan-B of staying afloat without
Maggi noodles finally shaped up as a three-year
strategy that Nestle would follow in India—a market
that fetched less than 2% of its 2015 global revenue of
88.7 billion Swiss franc despite a century of doing
business here.

39. • However, according to Narayanan, the company is
looking at entering new business segments. That’s some
change for the company, which stepped out of its comfort
zone last in 1990 when it launched chocolates.
• Between 5 June and 1 September 2015, Nestle had to
recall 38,000 tonnes of Maggi noodles from millions of
retail shelves, destroy them, tackle regulators and other
government authorities to establish that Maggi was safe.
• It was a body blow.

40. Turaround strategy
• Enter new categories,
• build a balanced portfolio to reduce dependence on a single
product,
• focus on health and nutrition,
• increase penetration in top towns,
• beef up advertising, and, most importantly,
• communicate much more with the consumers directly
• that was the crux of what Narayanan returned with from
Vevey, in his meeting with Nestle Top brass

41. • Our actions for the next four years
would set the tone for the next few
decades- Suresh Narayanan
• Over the coming quarters, Nestle will enter a few of the
five new product categories.

42. • These are: Nespresso (a coffee machine),
• Dolce Gusto (a coffee capsule system),
• pet care, healthcare and skincare.
• In August last year, it entered the cereals market with
kids breakfast cereal Nestle Ceregrow.
• Its India portfolio has been crying out for expansion—
out of its global bouquet of about 20,000-odd brands, it
sells only a paltry 20 in India.

43. • Unlike Maggi noodles, it won’t be a volume game
anymore. The Swiss company wants to quickly leverage
India’s rapid urbanization, tap the educated middle class
and working women, as well as benefit from rising health
awareness.
• All this, with an eye on maintaining profitability.

44. • Nestle’s products are relevant to a particular lifestyle,
income group, and are urban-centric. Rapid urbanization
is a huge opportunity as is the increasing participation of
women in decision-making.
• We need more products that are convenience-based,
nutrition-based and some in the on-the-go category. We
need to bring products relevant for every segment," says
Narayanan.

45. • This top-down approach has other reasons as well. First, it’s easier to
convey the message and convince the (educated) middle class
through marketing communications, advertising and social media
campaigns.
•
• Plus, there’s better scope for “premiumization". Nestle India is no
longer doing what it has been doing well for the past few decades;
rather, it needs to look at doing things that it has not done before.
“Selectively seed them (products in new categories) in order to grow
other frontiers of business, is what we are looking at.
• That’s why we are entering new categories and new businesses," says
Narayanan.