Si
 Gr x i
My ey nch
  st an es
                             Brand?




    er d
      io we wid
        us t   e
        ...
Contents
   Presentation Objective
   Understanding Branding
       From Products to Brands
       Brand Attributes
  ...
Presentation Objective


•   To understand the facets / issues involved in
                     branding
•   To develop a ...
Al Ries, David Ogilvy & Ambani
   Presentation incorporates
   learnings from


      India’s   Branding School, founded ...
Contents




Understanding         Brand   Building
Branding
Module 1

    Understanding Branding

Understanding              Brand   Building
Branding
Module 1

                  Understanding Branding

              Understanding                   Brand       Building
   ...
Module 1

                  Understanding Branding

              Understanding                   Brand       Building
   ...
Module 1 - Stage 1

                                               From Products to Brands
              Understanding    ...
Module 1 - Stage 1

                                                From Products to Brands
               Understanding  ...
Module 1 - Stage 1

                                               From Products to Brands
              Understanding    ...
Module 1 - Stage 1

                From Products to Brands




…….a short-hand that communicates powerfully & reduces unc...
Fevicol Case

         Sales Value         AdSpend       Adspend as %
Year
        ( Rs. Crores)      ( Rs. Crores)     of...
Fevicol Case

                Fevicol's Market Share
             of Synthetic Adhesive Category

45%
                    ...
Fevicol Case
                            Fevicol's Growth Rate
                            vs. Category Growth Rate




60...
Brand as an Asset
   “If Coca Cola lost everything except for ‘the formula’ and its brand
    name , it could walk into a...
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1

                     Understanding Branding

               Understanding                      Brand          Bu...
Module 1 - Stage 2

                                Attributes




Immutable Law of Name


 In the long run the brand is n...
Module 1 - Stage 2

                                                                         Attributes
                  ...
Module 1 - Stage 2

                                                                     Attributes
              Understa...
Module 1 - Stage 2

                                   Attributes




   Immutable Law of Shape




A brand’s logotype sho...
Module 1 - Stage 2

                                                                       Attributes
                Unde...
Module 1 - Stage 2

Attributes
Module 1 - Stage 2

                                Attributes




Immutable Law of Colour



     A brand should use a co...
Module 1 - Stage 2

                           Attributes




The Cola Wars: Energy Vs. Peace
Module 1 - Stage 2

                                                                     Attributes
              Understa...
Module 1 - Stage 2

                                                                     Attributes
              Understa...
Module 1 - Stage 2

                                Attributes




Immutable Law of Singularity



     Most important thi...
Module 1 - Stage 2

                                  Attributes




Single-mindedness means consistency.
Fresh and intere...
Module 1 - Stage 2

                                                                     Attributes
              Understa...
Module 1 - Stage 2

                                                                     Attributes
              Understa...
Module 1 - Stage 2

                              Attributes




Immutable Law of Word


A brand should try to own a word ...
Module 1 - Stage 2

Attributes
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1

                     Understanding Branding

              Understanding                        Brand          B...
Module 1 - Stage 3

                                                                        Management
                   ...
Module 1 - Stage 3

                                                                        Management
                   ...
Module 1 - Stage 3

                                                                            Management
               ...
Module 1 - Stage 3

                                                                            Management
               ...
Module 1 - Stage 3

                            Management




Immutable Law of Siblings


There is a time and place to la...
Possibly even a third or a fourth brand..
Module 1 - Stage 3

                                                                        Management
                   ...
Module 1 - Stage 3

                                                                         Management
                  ...
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1 - Stage 4

                           Architecture




Immutable Law of Contraction


A brand becomes stronger wh...
Module 1 - Stage 4

                              Architecture




The Economist is red and daring.
Provocative, brutally ...
Module 1 - Stage 4

                                                                         Architecture
                ...
Module 1 - Stage 4

                                                                        Architecture
              Und...
Module 1 - Stage 4

                             Architecture




Immutable Law of Expansion


Brand’s power inversely pro...
Module 1 - Stage 4

                               Architecture




The Volkswagen bus ad, talked only about ‘plenty of ro...
Module 1 - Stage 4

                                                                         Architecture
                ...
Module 1 - Stage 4

                           Architecture




Immutable Law of Company


Brands are brands, companies ar...
Module 1 - Stage 4

                                                                         Architecture
                ...
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1

                        Understanding Branding

                                       Exercise
   Two brand po...
Module 1

                     Understanding Branding

              Understanding                    Brand          Build...
Module 1 - Stage5

                                                                     Exercise
              Understandi...
Module 1 - Stage5

                                                                         Exercise
                  Und...
Module 1 - Stage5

                                                                            Exercise
                  ...
Module 1 - Stage5

                                                                     Exercise
              Understandi...
Module 1 - Stage5

                                                                     Exercise
              Understandi...
Module 1 - Stage5

                                                                     Exercise
              Understandi...
Module 1 - Stage5

                                                                         Exercise
                  Und...
Module 1 - Stage5

                                                                     Exercise
              Understandi...
Module 1 - Stage5

                                                                         Exercise
                  Und...
www.mastersungroup.com
http://strategy-execution.blogspot.com
          chandra@mastersunindia.com
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  1. 1. Si Gr x i My ey nch st an es Brand? er d io we wid us t e What is the Territory of the
  2. 2. Contents  Presentation Objective  Understanding Branding  From Products to Brands  Brand Attributes  Brand Management  Brand Architecture  Exercise  Brand Building  Brand Audit  Connection Triangle  Big Idea  Evaluating Advertising
  3. 3. Presentation Objective • To understand the facets / issues involved in branding • To develop a framework for building a brand
  4. 4. Al Ries, David Ogilvy & Ambani Presentation incorporates learnings from India’s Branding School, founded by Reliance: MICA Personal Work Experience Al Ries & Laura Ries: The 22 Immutable Laws of Branding
  5. 5. Contents Understanding Brand Building Branding
  6. 6. Module 1 Understanding Branding Understanding Brand Building Branding
  7. 7. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands
  8. 8. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands
  9. 9. Module 1 - Stage 1 From Products to Brands Understanding Brand Branding Building Products to Attributes Management Architecture Exercise brands
  10. 10. Module 1 - Stage 1 From Products to Brands Understanding Brand Brand v/s. Product Branding Building Products to Attributes Management Architecture Exercise brands  A brand is more distinctive than a product  It is first of all a name, a means of identification  Secondly it s a set of added values offering both functional and psychological benefits Above all ‘a brand is a promise’
  11. 11. Module 1 - Stage 1 From Products to Brands Understanding Brand Branding Building Products to Attributes Management Architecture Exercise brands A Brand is a Promise “ …A seller’s promise to deliver consistently a specific set of features, benefits and services to buyers.
  12. 12. Module 1 - Stage 1 From Products to Brands …….a short-hand that communicates powerfully & reduces uncertainty
  13. 13. Fevicol Case Sales Value AdSpend Adspend as % Year ( Rs. Crores) ( Rs. Crores) of Sales 92-93 46.02 0.55 1.2% 93-94 77.12 1.7 2.2% 94-95 102.16 2.3 2.3% 95-96 138 3.28 2.4% 96-97 156.19 5 3.2% 97-98 151.68 5.51 3.6% 98-99 191.75 6 3.1%
  14. 14. Fevicol Case Fevicol's Market Share of Synthetic Adhesive Category 45% 42% 40% 35% 31.43% 30% 25% 20% 15% 10% 10% 5% 0% 1991 1994 1999
  15. 15. Fevicol Case Fevicol's Growth Rate vs. Category Growth Rate 60% 55% 50% 40% 30% 20% 16% 10% 10% 8% 0% 1992-95 1995-99 Category Fevicol
  16. 16. Brand as an Asset  “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” Fortune Magazine
  17. 17. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Attributes Management Architecture Exercise brands
  18. 18. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands Name Logo Colours Essence
  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 Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Name  Short  Kodak, Fuji  CNN an AOL Time Warner Company  Distinctive • Toyota’s Lexus is distinctive.Toyota’s Luxury commonplace • Orange was a striking name in a world of tel and coms  Not mean anything rude or silly in another language  Big Macs( McDonald’s) is a slang for big breasts in Canada
  21. 21. Module 1 - Stage 2 Attributes Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Name  Avoid generic / line extended names • Xerox as opposed to Haloids Paper Master • Xerox (Copier) is powerful. Xerox Computer is not  Changing your name will not overcome a bad strategy • “Monday” (Price Waterhouse Coopers )
  22. 22. Module 1 - Stage 2 Attributes Immutable Law of Shape A brand’s logotype should be designed to fit the eyes. Both eyes
  23. 23. Module 1 - Stage 2 Attributes Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Logo • Simple logo, designed to fit both eyes • Mercedes three star • Logos with a horizontal bias • Logo with a horizontal bias is esp. useful for retail brands • Logo font has to be clear and legible • A housewife does not buy Ariel because it is written in a specific font
  24. 24. Module 1 - Stage 2 Attributes
  25. 25. Module 1 - Stage 2 Attributes Immutable Law of Colour A brand should use a colour opposite of its rival
  26. 26. Module 1 - Stage 2 Attributes The Cola Wars: Energy Vs. Peace
  27. 27. Module 1 - Stage 2 Attributes Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Colours  Colours have meanings • Purple means royalty • Red is energetic • Blue is peaceful  Opposite colours can differentiate • Coke is red, Pepsi is blue • Kodak is yellow, Fuji is green
  28. 28. Module 1 - Stage 2 Attributes Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Colours..  Colours can help you stand out • FedEx’s orange and purple packet stands out in corporate blue  Logo and colours help, but the power of the brand  Essentially in the meaning of the brand name in consumer’s mind, its essence
  29. 29. Module 1 - Stage 2 Attributes Immutable Law of Singularity Most important thing for a brand is its single mindedness.
  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 Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Essence  A brand must “leverage a compelling truth”  Linux stands for freedom as opposed to Microsoft’s monopoly  A brand should mean a single powerful thing: the essence  Essence of Volvo is Safety  Essence of Tata is trust  Essence of Fevicol is bonding
  32. 32. Module 1 - Stage 2 Attributes Understanding Brand Branding Building Name Logo Products to Colours Essence brands Attributes Management Architecture Exercise Brand Essence  A brand should also be clear of what is not its essence  In India, STAR NEWS is not a channel of the masses unlike STAR PLUS  A brand should drive single mindedly its essence  Volvo has been selling safety for 35 years  Raymond has been selling the complete man for over 2 decades  Essence of Dettol is protection against germs  A brand loses its essence if it starts meaning a lot of things  What is Miller :A regular,light,draft,cheap, expensive beer
  33. 33. Module 1 - Stage 2 Attributes Immutable Law of Word A brand should try to own a word in consumer’s mind
  34. 34. Module 1 - Stage 2 Attributes
  35. 35. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands
  36. 36. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands Co-Brand Stealth Brand Fighting Brand Multi-Brand
  37. 37. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Co-Brand  Brands need to address a similar need segment – Kellogg's Pop-tarts with Smuckers Jam  Brands with complementary strengths: Seen often on the Net – NY Times gives Amazon credibility – Amazon makes NY Times look modern.
  38. 38. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Stealth Brand  Brand building that attracts customer attention but not of rivals • Home-to-home, word of mouth / PR, internet community building • Krispy Kreme relies only on PR  Good option when unsure of a new medium/market  Little promotion for Maytag website as opposed to a buy.com. Maytag sold 1000s of Neptune washers on web
  39. 39. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Fighting Brand  Pricing led branding option. Works as a competitive response. • Smirnov (Heublein) Case  Smirnov attacked by W’schmidt @ $1 less  Heublein raised the price of Smirnov  Heublein introduced Reiska(fighting brand) at the same price point as W’schmidt  Heublein added Popov lower than both
  40. 40. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Fighting Brand  Built as new, independent brand • Prevents dilution of the leading brand  HLL introduced Wheel to fight Nirma
  41. 41. Module 1 - Stage 3 Management Immutable Law of Siblings There is a time and place to launch a second brand
  42. 42. Possibly even a third or a fourth brand..
  43. 43. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Multi Brand  Key to a multi-brand approach is to give each sibling a unique identity  Time, Fortune,Life, Money, People  Tempting to mash the brands and top it with corporate frosting  Tata Salt,Tata Tea  Second brand risks diluting equity  Is Kingfisher Mild drinker more likely to be from Kingfisher or from Fosters?
  44. 44. Module 1 - Stage 3 Management Stealth Understanding Branding Brand Building Co-Brand Brand Fighting Multi-Brand Products to brands Attributes Management Architecture Exercise Brand Multi Brand..  Common product area focus  Shampoos: Clinic Plus, Ayush, Sunsilk  Single attribute segmentation  Price:Maruti 800, Zen, Esteem  Sibling creates a new category  Herbal Anti-Dandruff category by Ayush
  45. 45. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands
  46. 46. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands House of Endorsed Brands Brand Sub Brand Branded House
  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 Understanding Brand House of Endorsed Branding Building Brands Brand Branded Sub Brand Products to brands Attributes Management Architecture Exercise House House of Brands  Often dictated by corporate strategy. Core competence of the firm is marketing / branding • P&G is the prime example. Its “big” with the channel  Multiple independent brands allows company to fill each niche • Helps brand focus  Gives an opportunity for the company to focus on each brand and contract its scope.
  50. 50. Module 1 - Stage 4 Architecture Understanding Brand House of Endorsed Branding Building Brands Brand Branded Sub Brand Products to brands Attributes Management Architecture Exercise House Endorsed Brand  Endorsement used as a device to transfer brand assets from one brand(corporate) to another  Titan from TATA, transferring trust  Danger of diluting the equity of endorsing brand  Best as a transitional strategy  Gain, from makers of Ariel
  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 Understanding Brand House of Endorsed Branding Building Brands Brand Branded Sub Brand Products to brands Attributes Management Architecture Exercise House Sub Brand  Inside out branding.Company pushes core brand in different directions  Sub-branding can destroy what branding builds • Donna Karan menswear, DKNY, DKNY menswear, DKNY kids
  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 Understanding Brand House of Endorsed Branding Building Brands Brand Branded Sub Brand Products to brands Attributes Management Architecture Exercise House Branded house  Consumers buy brands, not companies  Danger of branded house, being many things to one group of people • Virgin? Does “Virgin trains” work?  May motivate trade, so might be useful for PR purposes with trade/other stakeholders • P& G way
  56. 56. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands
  57. 57. Module 1 Understanding Branding Exercise  Two brand positioning within the same brand family?How do we reconcile the two positions?  The options available to us 1. Single brand 2. Stand Alone New Brand 3. Transfer of Brand Assets from an existing brand  What are the pros and cons of each option ?
  58. 58. Module 1 Understanding Branding Understanding Brand Building Branding Products to Attributes Management Architecture Exercise brands Single Brand Options Family Stand Alone Transfer of Brand Brand Assets
  59. 59. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets  Single Brand Family  ‘Stand-alone’ New Brand  Transfer of Brand Assets ‘x from y’
  60. 60. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option : Single Brand family  Constant values / different products • Dettol antiseptic / soap / hand wash • Crest toothpaste / Mouth wash (But not chewing gum)  Differentiate on product usage • IBM Value Point - Entry level purchase • Gillette Good News Line - Disposables
  61. 61. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option : Single Brand family  Use as umbrella branding  TATA Trust  SONY Electronic technology  But Taj from TATA for Performance segments  Difficult for a single brand to straddle Performance and Price segments  Surf entry in popular segment with Surf Easywash. Withdrew after 2 yrs  Gap changed Gap Warehouse to Old Navy Clothing due to perceived brand erosion
  62. 62. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option : Single Brand family Learnings + Cheaper than creating a new brand - Difficult to stretch brands across Price and Performance - Risk of eroding present position - Lose opportunity of creating a new segment
  63. 63. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option : ‘Stand-alone’ New Brand  Levers enters popular segment successfully with Wheel as opposed to Surf Easywash  Levers use of brand-wise differentiation of brand values and attributes to target consumer segments- Surf / Rin / Wheel / OK detergents  Toyota launches Lexus to enter the Premium Auto segment credibly
  64. 64. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option : ‘Stand-alone’ New Brand Learnings + Clear brand identity, values and assets + Create new opportunity of a range possibility in Popular segment + Leave present brand secure - Expensive to build brand assets - Difficult to build trial as a stand-alone Brand
  65. 65. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option: Transfer of Brand Assets ‘x from y’  Titan (from Tata’s) • Worked well for Titan  Sonata (from Titan) • Eroding equity of Titan  Gain (from the makers of Ariel) • Apparently a ‘Transitional Strategy’
  66. 66. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Option: Transfer of Brand Assets ‘x from y’ Learnings + Cheaper than developing a new brand + Can be used as a ‘Transitional Strategy’ - Still a risk of eroding present image - Possible mix of values and assets
  67. 67. Module 1 - Stage5 Exercise Understanding Brand Single Brand Options Branding Building Family Stand Alone Transfer of Products to brands Attributes Management Architecture Exercise Brand Brand Assets Branding Options: Conclusion  ‘Single Brand family possible if:  Different products / similar values  Differentiate on end use  ‘Stand-alone ‘New Brand’ best option to straddle values - however it is expensive to create a new Brand  ‘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
  68. 68. www.mastersungroup.com http://strategy-execution.blogspot.com chandra@mastersunindia.com

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