BRANDS
Brand Kya Hota Hai? <ul><li>You & Me </li></ul><ul><li>Anything that has a NAME, SIGN, SYMBOL which has a set of associati...
Brand ki zaroorat kya thi? <ul><li>One Consumer </li></ul><ul><li>One Need </li></ul><ul><li>MANY PRODUCTS </li></ul><ul><...
Ek Friday. Doh Filmein! <ul><li>Comedy vs. Comedy </li></ul><ul><li>Two Star vs. Two Star </li></ul><ul><li>Govinda vs. Tu...
Brand has… <ul><li>Name, Symbol or Logo </li></ul><ul><li>Brand Purpose: Positioning </li></ul><ul><li>Values & Personalit...
Consumer: Value Maximiser <ul><li>Brand: Biggest Value Driver! </li></ul><ul><li>Cap – Rs. 50/- </li></ul><ul><li>Cricket ...
Brand Value… MEANS OF IDENTIFICATION PROMISE RISK REDUCTION IMAGE DRIVER CONVENIENCE
Kya brand ho sakta hai? <ul><li>Gaadi </li></ul><ul><li>Doodh </li></ul><ul><li>Atta </li></ul><ul><li>Namak </li></ul><ul...
Brands kya reality mein better hote hain? <ul><li>Is Mercedes the best car? </li></ul><ul><li>Is IIM Ahmedabad the best b-...
Sounds easy! <ul><li>One NIKE. 1000 FAILED NIKE! </li></ul><ul><li>Biggest challenge for a Marketer </li></ul><ul><li>3C C...
Brand Equity Concept & Its Importance
The Challenge <ul><li>More Products </li></ul><ul><li>More Competitors </li></ul><ul><li>More Media </li></ul><ul><li>Same...
MANTRA #1 <ul><li>Price </li></ul><ul><li>Sales Promotions </li></ul><ul><li>Price Wars </li></ul><ul><li>Short-Term </li>...
Mantra #2 <ul><li>Brand Building </li></ul><ul><li>Distinctive </li></ul><ul><li>Sustainable </li></ul><ul><li>Long-Term <...
What is Brand Equity? <ul><li>“BE is a set of brand assets / liabilities linked to a brand, its name or symbol that add to...
Components of Brand Equity <ul><li>Awareness: Name & Symbols </li></ul><ul><li>Perceived Quality </li></ul><ul><li>Brand A...
Awareness: Name & Symbols <ul><li>Recognised vs. Unknown Brand </li></ul><ul><li>Familiarity drives perception </li></ul><...
Brand Associations <ul><li>People, situations, moods, needs that consumers relate a brand to/with </li></ul><ul><li>Helps ...
Perceived Quality <ul><li>Consumers are not engineers! </li></ul><ul><li>Quality is based on perception and not specificat...
Brand Loyalty <ul><li>Cost of acquiring new customers is 10 times the cost of retaining old ones! </li></ul><ul><li>Produc...
Other Proprietary Assets <ul><li>Trademarks </li></ul><ul><li>Patents </li></ul><ul><li>Channel Relationships </li></ul>
CBBE Consumer Based Brand Equity
Case for Building a Brand <ul><li>Improved Product Perceptions </li></ul><ul><li>Greater Loyalty </li></ul><ul><li>Insulat...
Million Dollar Questions <ul><li>What makes a strong brand? </li></ul><ul><li>How to build one? </li></ul>
The 4 Fundamental Questions <ul><li>Who are you? (Brand Awareness) </li></ul><ul><li>What do you do? (Brand Knowledge) </l...
Brand Awareness <ul><li>Recognition & Recall </li></ul><ul><li>Depth: How easily do they recall? </li></ul><ul><ul><li>TOM...
Brand Knowledge <ul><li>Performance: Attributes & Benefits </li></ul><ul><ul><li>Ingredients: KFC </li></ul></ul><ul><ul><...
Brand Attitude <ul><li>What consumers think and feel about the brand </li></ul><ul><ul><li>Brand Judgments: Opinion / Eval...
Brand Attitude <ul><li>Brand Judgments </li></ul><ul><ul><li>Quality: Smirnoff </li></ul></ul><ul><ul><li>Credibility: App...
Brand Attitude <ul><li>Brand Feelings </li></ul><ul><ul><li>Warmth: Archies </li></ul></ul><ul><ul><li>Fun: Disney </li></...
Brand Relationship <ul><li>Association with the Brand </li></ul><ul><ul><li>Behavioral Loyalty: Fair & Lovely </li></ul></...
Term Project: Phase I <ul><li>Understand the Current CBBE amongst the Target Market </li></ul><ul><li>FGDs / DIs </li></ul...
CBBE for Amazon Books, Music & Videos BRAND AWARENESS Conv., Variety, Low Prices For Every Internet User BRAND KNOWLEDGE G...
Declining Brands
Defying Newton
What is a declining brand? <ul><li>A brand which has over a period of time been losing both  market share  and  mind share...
Top 10 Reasons for Declining of Brands
Cause #1 <ul><li>Decline in quality </li></ul><ul><ul><li>Cost-cutting (Maruti 800) </li></ul></ul><ul><ul><li>Increasing ...
Cause #2 <ul><li>Resistance to Change </li></ul><ul><ul><li>Product Oriented (Robin Blue) </li></ul></ul><ul><ul><li>Need ...
Cause #3 <ul><li>Single Product (Ambassador) </li></ul><ul><ul><li>No portfolio </li></ul></ul><ul><ul><li>No extensions <...
Cause #4 <ul><li>Excessive Pricing (Daewoo Cielo) </li></ul><ul><ul><li>Premium pricing </li></ul></ul><ul><ul><li>High ma...
Cause #5 <ul><li>Wrong extensions (Pune Mirror) </li></ul><ul><ul><li>Bad products </li></ul></ul><ul><ul><li>Crowded cate...
Cause #6 <ul><li>Communication (Kelvinator) </li></ul><ul><ul><li>Low levels of communication </li></ul></ul><ul><ul><li>W...
Cause #7 <ul><li>Channel management (CrossWord) </li></ul><ul><ul><li>Attitude of Sales Team </li></ul></ul><ul><ul><li>Ma...
Cause #8 <ul><li>Ageing (HMT Watches) </li></ul><ul><ul><li>Old age </li></ul></ul><ul><ul><li>No makeover (Product / Comm...
Cause #9 <ul><li>Lack of differentiation (Acer Computers) </li></ul><ul><ul><li>Cluttered market </li></ul></ul><ul><ul><l...
Cause #10 <ul><li>Tough Consumer </li></ul><ul><ul><li>Less emotional </li></ul></ul><ul><ul><li>Lowering levels of loyalt...
Exercise: Failed Indian Brands <ul><li>Weikfield Jelly </li></ul><ul><li>Maruti Zen Estillo </li></ul><ul><li>Yamaha RX-10...
Revitalising the Brand
Why revitalise? <ul><li>Brand still has high awareness </li></ul><ul><li>Brand still has some values with consumer </li></...
Ways to Revitalise
#1: Increase Usage <ul><li>Getting existing customers to use more of your product </li></ul><ul><ul><li>Frequency of Use (...
#1: Increase Usage <ul><li>Getting existing customers to use more of your product </li></ul><ul><ul><li>Quantity of Consum...
#2: Finding New Uses <ul><li>Finding a new functional use for the brand </li></ul><ul><ul><li>Omni Cargo </li></ul></ul><u...
#3: Entering New Markets <ul><li>Move into a new market area having growth potential </li></ul><ul><ul><li>New Segment (Pe...
#4: Repositioning the Brand <ul><li>Existing positioning not relevant </li></ul><ul><li>Lacking appeal amongst TG </li></u...
#5: Augmenting the Product <ul><li>Providing features / services not expected by the consumer </li></ul><ul><ul><li>Must b...
#6: Obsoleting Existing Products <ul><li>Kill the existing product and introduce a new technologically advanced product </...
#7: Extending the Brand <ul><li>Take the brand into products which have a brighter future </li></ul><ul><ul><li>Dettol Soa...
What if nothing works?
Option #1: Milking <ul><li>Minimising investments, maximising cash flows </li></ul><ul><ul><li>Hold Milking Strategy: Peps...
Option #2: Divestment or Liquidation <ul><li>Exit out of a brand </li></ul><ul><ul><li>HUL Denim </li></ul></ul><ul><ul><l...
Brand Extensions Why? When? How?
What is a Brand Extension? <ul><li>Established brands are assets </li></ul><ul><li>Marketers try and leverage these assets...
Why Brand Extensions? <ul><li>New products a driver of growth for a company </li></ul><ul><li>Developing and launching req...
Why Brand Extensions? <ul><li>Brand extensions helps cut down costs </li></ul><ul><li>Also increases the chances of succes...
How do consumers evaluate? <ul><li>Fit between Parent & Extension </li></ul><ul><li>Fit in terms of ‘Core Differentiation’...
How much to extend? <ul><li>Extend to the extent where there is an equal borrow & build with the parent brand </li></ul><u...
Moving Down <ul><li>Why? </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Private Labels </li></ul></ul><ul><l...
Moving Up <ul><li>Why? </li></ul><ul><ul><li>Potential User Base </li></ul></ul><ul><ul><li>Higher Margins </li></ul></ul>...
Risks in Extension <ul><li>Line Extension: Overchoice & Confusion </li></ul><ul><li>Dilution of Parent Equity: New Maggi, ...
Extensions in Portfolio <ul><li>Cannibalisation </li></ul><ul><li>Distinct Role </li></ul><ul><li>Incremental Share </li><...
Key Questions <ul><li>Positioning of Parent Brand? </li></ul><ul><li>What am I using from the positioning? </li></ul><ul><...
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Hmt watch

  1. 2. BRANDS
  2. 3. Brand Kya Hota Hai? <ul><li>You & Me </li></ul><ul><li>Anything that has a NAME, SIGN, SYMBOL which has a set of associations related to it </li></ul><ul><li>Origin: Brandr </li></ul>
  3. 4. Brand ki zaroorat kya thi? <ul><li>One Consumer </li></ul><ul><li>One Need </li></ul><ul><li>MANY PRODUCTS </li></ul><ul><li>Kiss ko choose karun -- Confusion! </li></ul>
  4. 5. Ek Friday. Doh Filmein! <ul><li>Comedy vs. Comedy </li></ul><ul><li>Two Star vs. Two Star </li></ul><ul><li>Govinda vs. Tushar Kapoor </li></ul><ul><li>Which one will you go for? </li></ul><ul><li>Brand Govinda: Comedy Associations </li></ul>
  5. 6. Brand has… <ul><li>Name, Symbol or Logo </li></ul><ul><li>Brand Purpose: Positioning </li></ul><ul><li>Values & Personality: Image </li></ul><ul><li>Bundle of Benefits: Promise </li></ul>
  6. 7. Consumer: Value Maximiser <ul><li>Brand: Biggest Value Driver! </li></ul><ul><li>Cap – Rs. 50/- </li></ul><ul><li>Cricket Team Cap – Rs. 500/- </li></ul><ul><li>Team Cap used by Tendulkar – Rs. 5000/- </li></ul>
  7. 8. Brand Value… MEANS OF IDENTIFICATION PROMISE RISK REDUCTION IMAGE DRIVER CONVENIENCE
  8. 9. Kya brand ho sakta hai? <ul><li>Gaadi </li></ul><ul><li>Doodh </li></ul><ul><li>Atta </li></ul><ul><li>Namak </li></ul><ul><li>Kya nahin brand ho sakta hai? </li></ul>
  9. 10. Brands kya reality mein better hote hain? <ul><li>Is Mercedes the best car? </li></ul><ul><li>Is IIM Ahmedabad the best b-school? </li></ul><ul><li>Maybe, maybe not! </li></ul><ul><li>Perception! </li></ul>
  10. 11. Sounds easy! <ul><li>One NIKE. 1000 FAILED NIKE! </li></ul><ul><li>Biggest challenge for a Marketer </li></ul><ul><li>3C Challenge </li></ul><ul><ul><li>Cash </li></ul></ul><ul><ul><li>Consistency </li></ul></ul><ul><ul><li>Clutter </li></ul></ul>
  11. 12. Brand Equity Concept & Its Importance
  12. 13. The Challenge <ul><li>More Products </li></ul><ul><li>More Competitors </li></ul><ul><li>More Media </li></ul><ul><li>Same Consumers </li></ul><ul><li>Same Needs </li></ul><ul><li>GROWTH MANTRA? </li></ul>
  13. 14. MANTRA #1 <ul><li>Price </li></ul><ul><li>Sales Promotions </li></ul><ul><li>Price Wars </li></ul><ul><li>Short-Term </li></ul>
  14. 15. Mantra #2 <ul><li>Brand Building </li></ul><ul><li>Distinctive </li></ul><ul><li>Sustainable </li></ul><ul><li>Long-Term </li></ul>
  15. 16. What is Brand Equity? <ul><li>“BE is a set of brand assets / liabilities linked to a brand, its name or symbol that add to or subtract from the value provided by a product or service to a customer” </li></ul>
  16. 17. Components of Brand Equity <ul><li>Awareness: Name & Symbols </li></ul><ul><li>Perceived Quality </li></ul><ul><li>Brand Associations </li></ul><ul><li>Brand Loyalty </li></ul><ul><li>Other Proprietary Brand Assets </li></ul>
  17. 18. Awareness: Name & Symbols <ul><li>Recognised vs. Unknown Brand </li></ul><ul><li>Familiarity drives perception </li></ul><ul><li>Familiar = Reliable + Good Quality </li></ul><ul><li>Unknown only a push option </li></ul>
  18. 19. Brand Associations <ul><li>People, situations, moods, needs that consumers relate a brand to/with </li></ul><ul><li>Helps the brand occupy a distinct mindspace </li></ul><ul><li>Drives purchase </li></ul>
  19. 20. Perceived Quality <ul><li>Consumers are not engineers! </li></ul><ul><li>Quality is based on perception and not specifications </li></ul><ul><li>Brands drive perception of quality </li></ul><ul><li>Perception drives purchase, premium justification and ease of extension </li></ul>
  20. 21. Brand Loyalty <ul><li>Cost of acquiring new customers is 10 times the cost of retaining old ones! </li></ul><ul><li>Products are non-living but brands aren’t </li></ul><ul><li>Customers associate themselves with brands (preservance/enhancement) </li></ul><ul><li>Difficult to break-away to competition </li></ul>
  21. 22. Other Proprietary Assets <ul><li>Trademarks </li></ul><ul><li>Patents </li></ul><ul><li>Channel Relationships </li></ul>
  22. 23. CBBE Consumer Based Brand Equity
  23. 24. Case for Building a Brand <ul><li>Improved Product Perceptions </li></ul><ul><li>Greater Loyalty </li></ul><ul><li>Insulation from Competition </li></ul><ul><li>Higher Margins </li></ul><ul><li>Inelasticity to Price </li></ul><ul><li>Cooperation from Channel </li></ul><ul><li>Effective Marketing Communication </li></ul><ul><li>Leverage through Extensions </li></ul>
  24. 25. Million Dollar Questions <ul><li>What makes a strong brand? </li></ul><ul><li>How to build one? </li></ul>
  25. 26. The 4 Fundamental Questions <ul><li>Who are you? (Brand Awareness) </li></ul><ul><li>What do you do? (Brand Knowledge) </li></ul><ul><li>What do I think about you? (Brand Attitude) </li></ul><ul><li>What about you and me? (Brand Relationship) </li></ul>
  26. 27. Brand Awareness <ul><li>Recognition & Recall </li></ul><ul><li>Depth: How easily do they recall? </li></ul><ul><ul><li>TOM: McDonald’s </li></ul></ul><ul><li>Breadth: In what all situations do they recall? </li></ul><ul><ul><li>Usage Occasions: Tropicana </li></ul></ul>
  27. 28. Brand Knowledge <ul><li>Performance: Attributes & Benefits </li></ul><ul><ul><li>Ingredients: KFC </li></ul></ul><ul><ul><li>Consistency: McDonald’s </li></ul></ul><ul><ul><li>Durability: Tata </li></ul></ul><ul><ul><li>Serviceability: Maruti </li></ul></ul><ul><ul><li>Service Efficiency: Domino’s </li></ul></ul><ul><ul><li>Style & Design: Swatch </li></ul></ul><ul><li>Imagery </li></ul><ul><ul><li>User Profile: Harley </li></ul></ul><ul><ul><li>Usage Situation: I-Pill </li></ul></ul><ul><ul><li>Personality: Tata </li></ul></ul><ul><ul><li>Values & Beliefs: Johnie Walker </li></ul></ul><ul><li>Should be strong, favourable & unique </li></ul>
  28. 29. Brand Attitude <ul><li>What consumers think and feel about the brand </li></ul><ul><ul><li>Brand Judgments: Opinion / Evaluation </li></ul></ul><ul><ul><li>Brand Feelings: Emotional Responses / Reactions </li></ul></ul>
  29. 30. Brand Attitude <ul><li>Brand Judgments </li></ul><ul><ul><li>Quality: Smirnoff </li></ul></ul><ul><ul><li>Credibility: Apple </li></ul></ul><ul><ul><li>Consideration: Sony </li></ul></ul><ul><ul><li>Superiority: Intel </li></ul></ul>
  30. 31. Brand Attitude <ul><li>Brand Feelings </li></ul><ul><ul><li>Warmth: Archies </li></ul></ul><ul><ul><li>Fun: Disney </li></ul></ul><ul><ul><li>Excitement: MTV </li></ul></ul><ul><ul><li>Security: SBI </li></ul></ul><ul><ul><li>Social Approval: Mercedes </li></ul></ul><ul><ul><li>Self-Respect: RbK </li></ul></ul>
  31. 32. Brand Relationship <ul><li>Association with the Brand </li></ul><ul><ul><li>Behavioral Loyalty: Fair & Lovely </li></ul></ul><ul><ul><li>Attitudinal Attachment: Budweiser </li></ul></ul><ul><ul><li>Sense of Community: Saab </li></ul></ul><ul><ul><li>Active Engagement: Enfield </li></ul></ul>
  32. 33. Term Project: Phase I <ul><li>Understand the Current CBBE amongst the Target Market </li></ul><ul><li>FGDs / DIs </li></ul><ul><li>Users / Lapsers </li></ul><ul><li>Define it as given in the subsequent slide </li></ul>
  33. 34. CBBE for Amazon Books, Music & Videos BRAND AWARENESS Conv., Variety, Low Prices For Every Internet User BRAND KNOWLEDGE Good Value / Credibility Smart Shopper BRAND ATTITUDE Loyalty, Community, Engagement BRAND RELATION
  34. 35. Declining Brands
  35. 36. Defying Newton
  36. 37. What is a declining brand? <ul><li>A brand which has over a period of time been losing both market share and mind share amongst its target consumers </li></ul>
  37. 38. Top 10 Reasons for Declining of Brands
  38. 39. Cause #1 <ul><li>Decline in quality </li></ul><ul><ul><li>Cost-cutting (Maruti 800) </li></ul></ul><ul><ul><li>Increasing volumes (IIMs) </li></ul></ul><ul><ul><li>Relaxation in QC Measures (Café Coffee Day) </li></ul></ul><ul><ul><li>Perceptual Decline: Price, Channel, Sensorials, Advertising, Packaging </li></ul></ul>
  39. 40. Cause #2 <ul><li>Resistance to Change </li></ul><ul><ul><li>Product Oriented (Robin Blue) </li></ul></ul><ul><ul><li>Need Oriented (Nirma Detergent) </li></ul></ul><ul><ul><li>Consumer Oriented (Dabur Chavanprash) </li></ul></ul><ul><li>Why resistance? </li></ul><ul><ul><li>Investment </li></ul></ul><ul><ul><li>Product Orientation </li></ul></ul><ul><ul><li>Tried & Tested </li></ul></ul><ul><ul><li>Complacency </li></ul></ul>
  40. 41. Cause #3 <ul><li>Single Product (Ambassador) </li></ul><ul><ul><li>No portfolio </li></ul></ul><ul><ul><li>No extensions </li></ul></ul><ul><li>Problem? </li></ul><ul><ul><li>Visibility </li></ul></ul><ul><ul><li>Stature </li></ul></ul><ul><ul><li>Decline in segment </li></ul></ul><ul><ul><li>Decline in product </li></ul></ul>
  41. 42. Cause #4 <ul><li>Excessive Pricing (Daewoo Cielo) </li></ul><ul><ul><li>Premium pricing </li></ul></ul><ul><ul><li>High margins </li></ul></ul><ul><ul><li>Entry of Competition </li></ul></ul><ul><ul><li>Feeling of being cheated </li></ul></ul><ul><ul><li>Private Labels </li></ul></ul>
  42. 43. Cause #5 <ul><li>Wrong extensions (Pune Mirror) </li></ul><ul><ul><li>Bad products </li></ul></ul><ul><ul><li>Crowded categories </li></ul></ul><ul><ul><li>Lower image products / segments </li></ul></ul>
  43. 44. Cause #6 <ul><li>Communication (Kelvinator) </li></ul><ul><ul><li>Low levels of communication </li></ul></ul><ul><ul><li>Wrong message </li></ul></ul><ul><ul><li>Low impact </li></ul></ul><ul><ul><li>Brand Ambassador </li></ul></ul><ul><ul><li>Production values </li></ul></ul>
  44. 45. Cause #7 <ul><li>Channel management (CrossWord) </li></ul><ul><ul><li>Attitude of Sales Team </li></ul></ul><ul><ul><li>Margins </li></ul></ul><ul><ul><li>No push </li></ul></ul><ul><ul><li>Emergence of alternate channel </li></ul></ul>
  45. 46. Cause #8 <ul><li>Ageing (HMT Watches) </li></ul><ul><ul><li>Old age </li></ul></ul><ul><ul><li>No makeover (Product / Communication) </li></ul></ul><ul><ul><li>Perceived as ‘Not for me’ </li></ul></ul>
  46. 47. Cause #9 <ul><li>Lack of differentiation (Acer Computers) </li></ul><ul><ul><li>Cluttered market </li></ul></ul><ul><ul><li>No USP </li></ul></ul><ul><ul><li>No competitive advantage </li></ul></ul><ul><ul><li>‘Me Too’ Branding </li></ul></ul>
  47. 48. Cause #10 <ul><li>Tough Consumer </li></ul><ul><ul><li>Less emotional </li></ul></ul><ul><ul><li>Lowering levels of loyalty </li></ul></ul><ul><ul><li>Flirtatious attitude </li></ul></ul><ul><ul><li>More knowledge driven </li></ul></ul><ul><ul><li>Connected via media </li></ul></ul>
  48. 49. Exercise: Failed Indian Brands <ul><li>Weikfield Jelly </li></ul><ul><li>Maruti Zen Estillo </li></ul><ul><li>Yamaha RX-100 </li></ul><ul><li>Roohafza </li></ul><ul><li>Margo Soap </li></ul><ul><li>Kinetic Scooter </li></ul><ul><li>Fiat (Ageing) </li></ul><ul><li>Moti Soap </li></ul><ul><li>Savlon </li></ul><ul><li>Milkfood </li></ul>
  49. 50. Revitalising the Brand
  50. 51. Why revitalise? <ul><li>Brand still has high awareness </li></ul><ul><li>Brand still has some values with consumer </li></ul><ul><li>Product still selling </li></ul><ul><li>Cost of building a new brand is far higher </li></ul>
  51. 52. Ways to Revitalise
  52. 53. #1: Increase Usage <ul><li>Getting existing customers to use more of your product </li></ul><ul><ul><li>Frequency of Use (Shampoo) </li></ul></ul><ul><ul><ul><li>Reminder Communication </li></ul></ul></ul><ul><ul><ul><li>Positioning for frequent use </li></ul></ul></ul><ul><ul><ul><li>Make the use easier </li></ul></ul></ul><ul><ul><ul><li>Provide incentives </li></ul></ul></ul><ul><ul><ul><li>Reduce undesirable consequences of frequent use </li></ul></ul></ul><ul><ul><ul><li>Use at different occasions </li></ul></ul></ul>
  53. 54. #1: Increase Usage <ul><li>Getting existing customers to use more of your product </li></ul><ul><ul><li>Quantity of Consumption (Chips) </li></ul></ul><ul><ul><ul><li>Incentives on high use </li></ul></ul></ul><ul><ul><ul><li>Creating larger servings </li></ul></ul></ul><ul><ul><ul><li>Removing undesirable consequences of high consumption </li></ul></ul></ul><ul><ul><ul><li>Positive associations </li></ul></ul></ul>
  54. 55. #2: Finding New Uses <ul><li>Finding a new functional use for the brand </li></ul><ul><ul><li>Omni Cargo </li></ul></ul><ul><li>How to find new uses? </li></ul><ul><ul><li>Observe usage of current customers </li></ul></ul><ul><ul><li>Sponsor new use contests </li></ul></ul><ul><ul><li>Use of competition’s product </li></ul></ul><ul><li>When to adopt a new use? </li></ul><ul><ul><li>Potential market </li></ul></ul><ul><ul><li>Feasibility & Cost </li></ul></ul><ul><ul><li>Competitive reaction / takeover of the use </li></ul></ul>
  55. 56. #3: Entering New Markets <ul><li>Move into a new market area having growth potential </li></ul><ul><ul><li>New Segment (Pepsi A.M. / Bacardi Breezer) </li></ul></ul><ul><ul><li>New Geography (Honda City / Gits) </li></ul></ul>
  56. 57. #4: Repositioning the Brand <ul><li>Existing positioning not relevant </li></ul><ul><li>Lacking appeal amongst TG </li></ul><ul><li>Reposition the brand on a new platform </li></ul><ul><ul><li>Lifebuoy (Koi Darr Nahin) </li></ul></ul><ul><ul><li>Fair & Lovely </li></ul></ul>
  57. 58. #5: Augmenting the Product <ul><li>Providing features / services not expected by the consumer </li></ul><ul><ul><li>Must be things the consumer values </li></ul></ul><ul><ul><li>Linked to the product </li></ul></ul><ul><li>Drive consumer delight </li></ul><ul><ul><li>Nestle Coffee Shaker </li></ul></ul><ul><ul><li>Titan Eye Free Eye Testing </li></ul></ul>
  58. 59. #6: Obsoleting Existing Products <ul><li>Kill the existing product and introduce a new technologically advanced product </li></ul><ul><ul><li>Bajaj: Scooters to Motorcycles </li></ul></ul><ul><ul><li>Gillette: Stainless Steel Blades </li></ul></ul><ul><ul><li>Intel: Self Destruction </li></ul></ul><ul><ul><li>Windows Vista: Windows 7 </li></ul></ul><ul><li>Risky as there has been investment in the existing product which will go waste </li></ul>
  59. 60. #7: Extending the Brand <ul><li>Take the brand into products which have a brighter future </li></ul><ul><ul><li>Dettol Soap </li></ul></ul><ul><ul><li>Mcdonald’s: Salads & Yoghurt </li></ul></ul><ul><ul><li>Crest: Beyond cavities! </li></ul></ul><ul><li>Extension must be </li></ul><ul><ul><li>Relevant </li></ul></ul><ul><ul><li>Sustainable </li></ul></ul>
  60. 61. What if nothing works?
  61. 62. Option #1: Milking <ul><li>Minimising investments, maximising cash flows </li></ul><ul><ul><li>Hold Milking Strategy: Pepsodent G </li></ul></ul><ul><ul><ul><li>Sufficient Investment </li></ul></ul></ul><ul><ul><li>Fast Milking Strategy: Ambassador </li></ul></ul><ul><ul><ul><li>Pulling out of investment </li></ul></ul></ul><ul><ul><ul><li>Raising of prices in certain cases </li></ul></ul></ul>
  62. 63. Option #2: Divestment or Liquidation <ul><li>Exit out of a brand </li></ul><ul><ul><li>HUL Denim </li></ul></ul><ul><ul><li>Lee Cooper </li></ul></ul><ul><li>Last Resort </li></ul><ul><ul><li>Rapid sales decline </li></ul></ul><ul><ul><li>Milking also unprofitable with price pressures </li></ul></ul><ul><ul><li>Weak brand position </li></ul></ul><ul><ul><li>Exit barriers can be overcome </li></ul></ul>
  63. 64. Brand Extensions Why? When? How?
  64. 65. What is a Brand Extension? <ul><li>Established brands are assets </li></ul><ul><li>Marketers try and leverage these assets </li></ul><ul><li>The process of using the brand name on another product is known as extension </li></ul><ul><ul><li>Line Extensions (Lifebuoy Liquid Soap) </li></ul></ul><ul><ul><li>Category Extensions (Nokia Laptops) </li></ul></ul><ul><ul><li>Stretch Extensions (Intel Celeron) </li></ul></ul>
  65. 66. Why Brand Extensions? <ul><li>New products a driver of growth for a company </li></ul><ul><li>Developing and launching requires millions </li></ul><ul><li>Yet 9 out of 10 new products FAIL </li></ul><ul><li>Brand not launching new products are also at times perceived as old and staid </li></ul><ul><li>Overdependence on any one brand could be dangerous </li></ul><ul><li>Parent brand may only appeal to a segment </li></ul><ul><li>Brand is seen as boring and lacking variety </li></ul><ul><li>Allows the competition to flank </li></ul>
  66. 67. Why Brand Extensions? <ul><li>Brand extensions helps cut down costs </li></ul><ul><li>Also increases the chances of success as the consumer already has a favourable image </li></ul><ul><li>Rejuvenates parent brand </li></ul><ul><li>Reduces overdependence on a single product </li></ul><ul><li>Category/Stretch extensions help bring in new users </li></ul><ul><li>Line extensions cater to different needs of segments or provide variety to existing users </li></ul><ul><li>Can also be a tool for blocking competition </li></ul>
  67. 68. How do consumers evaluate? <ul><li>Fit between Parent & Extension </li></ul><ul><li>Fit in terms of ‘Core Differentiation’ </li></ul><ul><li>FIT: Coke & Diet Coke (Taste) </li></ul><ul><li>MISFIT: Pepsi & Crystal Pepsi (Colour) </li></ul><ul><li>Extension must remain true to the core values of the parent brand </li></ul>
  68. 69. How much to extend? <ul><li>Extend to the extent where there is an equal borrow & build with the parent brand </li></ul><ul><li>Harley: Clothing, Tatoos but not Energy Drink </li></ul><ul><li>FAL: FAL for Men but not Perfect Radiance </li></ul><ul><li>Pepsodent: Cavity, Plaque but not Fresh Breath </li></ul><ul><li>Drivers </li></ul><ul><ul><li>Frame of Reference (McDonald’s – Fast Food) </li></ul></ul><ul><ul><li>POD (Oral-B Toffee) </li></ul></ul><ul><ul><li>RTB (Gits – Pasta) </li></ul></ul>
  69. 70. Moving Down <ul><li>Why? </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Private Labels </li></ul></ul><ul><li>Challenge </li></ul><ul><ul><li>Protecting the Brand </li></ul></ul><ul><ul><li>Distinguish the Extension </li></ul></ul><ul><ul><ul><li>Sub-Branding </li></ul></ul></ul><ul><ul><ul><li>Product </li></ul></ul></ul>
  70. 71. Moving Up <ul><li>Why? </li></ul><ul><ul><li>Potential User Base </li></ul></ul><ul><ul><li>Higher Margins </li></ul></ul><ul><li>Challenge </li></ul><ul><ul><li>Managing Credibility </li></ul></ul><ul><ul><li>Sub-Brand with a Descriptor (Kodak GOLD) </li></ul></ul>
  71. 72. Risks in Extension <ul><li>Line Extension: Overchoice & Confusion </li></ul><ul><li>Dilution of Parent Equity: New Maggi, Coke Vanilla </li></ul><ul><ul><li>Use of Sub-Brand gives cushion: Sony Walkman </li></ul></ul><ul><li>Cannibalisation of Parent (Space & SOM) </li></ul>
  72. 73. Extensions in Portfolio <ul><li>Cannibalisation </li></ul><ul><li>Distinct Role </li></ul><ul><li>Incremental Share </li></ul><ul><li>Different Needs </li></ul>
  73. 74. Key Questions <ul><li>Positioning of Parent Brand? </li></ul><ul><li>What am I using from the positioning? </li></ul><ul><li>Is that valued by the consumer in the new category in which I am extending? </li></ul><ul><li>Does the consumer see a connect with the parent? </li></ul><ul><li>What will be the impact on the parent? </li></ul>

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