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Brand tracker


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ITC Classmate Brand Tracker

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Brand tracker

  1. 1. ITC CLASSMATEBrandTrackerBrand value is much like an onion. It has layers and a core. The core is the user who will stick withyou until the very end. –Edwin Artzt
  2. 2. Brand Tracker Phase I – Brand Image Measurement ITC CLASSMATE (NOTEBOOKS) A report submitted to Prof. Srinivas GovindrajanIn the partial fulfillment of the requirement of the course Product and Brand Management On 29th August, 2012 By Sabyasachi Sahoo (B11037) Shubhankar Sengupta (B11041) Soumya Sitam Priyadarshini (B11043) Soummyaditya Baral (B11044) 2
  4. 4. Executive SummaryITC which was incorporated under the name of Imperial Tobacco Company of IndiaLimited was founded on 24th August, 1910. Later in 1970 the name of the parent companywas changed to India Tobacco Company Limited and finally to ITC limited in 1974. Thecompany’s business portfolio ranges are:  Cigarettes( W. D. & H. O. Wills, Gold Flake Kings, Gold Flake Premium, Navy Cut, 555, Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Players and Flake.)  Foods (Kitchens of India; Aashirvaad, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods)  Apparel (Wills Lifestyle and John Players)  Personal care ( Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel di Wills brands, of products in perfumes, hair care and skincare)  Stationery (Classmate and PaperKraft brands)  Safety Matches and Agarbattis ( iKno; Mangaldeep; Aim brands)  HotelsOne of the main reasons for ITC’s success has been its innovativeness and its ability to caterto the changing needs of the customers.In the Primary phase of the “Brand Tracker” project we have attempted to determine thecurrent status of the company in terms of the Brand and the brand identity in the minds ofthe consumers/customers. We used the Brand Asset Valuator or BAV to identify the currentbrand status while controlled ZMET or Zaltman Metaphor Elicitation Technique was used todetermine the identity of the brand.The BAV model is measured along the four-dimensions i.e., Differentiation, Relevance,Knowledge and Esteem, where esteem and knowledge comprise the Brand Stature andDifferentiation and Relevance build up the Brand Stature of a Brand. We took a sample of49, for our BAV using Random Sampling.ITC Classmate scored a staggering 100 percentile in all the four pillars of BAV i.e.,Differentiation, Relevance, Knowledge and Esteem. On the power grip of BAV, ITC turnedout to be the leader in the notebook segment. The respondents relate ITC Classmatenotebooks as a special part of the Class. 4
  5. 5. The ZMET technique was used to find out the Brand Identity of Classmate Copies. A sampleof 9 respondents was chosen to execute this Qualitative research technique. The ZMETtechnique which is based on one-on-one interview identified ITC classmate notebooks as a ITC CLASSMATE : The Story so far….creative, innovative, and socially responsible with eco-friendly brand of notebooks offeringsuperior paper quality.“We don’t want satisfied customers…We want delighted customers.” It is the newmarketing mantra today. The same applies to stationery industry as well. StationeryIndustry is a very heterogeneous group of business usually associated with theSchools, Colleges, and Office. Itplays a very crucial role inworking of any organizationacross the globe. It includesPaper stationery which comprises of avast collection of products like • exercise books, • note books, • stitch, • glued & tape pads, • refill pads, • flap over pads, • subject books, • Plastic cover books etc. Paper and paper related products are tremendously gaining demand in themarket. Out of which paper stationery market over the years has gained immensepopularity in the school and office segment throughout the world. Revolution forthese products has come to birth from the past few years majorly in developingnations and its having immense value in terms of export and import. It is expected 5
  6. 6. that Stationery industry has a flourishing future in its coming years in India and over aperiod is estimated to grow at 10 to 15% p.a. To achieve this objective, one canactually see that how acceptance of Internet technology has opened plethora ofopportunities of sourcing the desired supplier in any part of the world. Themanufacturers of various countries including India, China, Indonesia etc havestarted building new product strategies, which helps in reducing their overall costwithout compromising on quality thus producing a good quality product atcompetitive price.Falling under the category of Small and Medium Enterprises (SMEs) in majorly mostof the countries, this sector has lot to offer in terms of employment, tax revenues, itcan be an important source of new innovative products, extensive localknowledge of resources, and can be a major service provider to the largerorganizations. However, this sector like other sectors have certain bottlenecks whichhinder the growth of this sector like Burdensome regulatory frameworks, Lack of taxincentives and subsidies, Absence of investor-friendly environment, Lack of accessto finance, Lack of capacity-building programs and inadequate provision ofvocational training etc. With a staggering earnings of Rs. 400 million plus ITC Classmate stands as the biggest paper stationery brand in India with a market share of 12% followed by Navneet and the huge unorganized sector dominated by local players. After seeing the success of its premium stationery brand Paperkraft, ITC decided to launch its standardsegment line of stationery –CLASSMATE in 2003 offering fromnotebooks, pens, pencils,mechanical pencils and geometryboxes.Classmate aspires to partner youngminds in discovering, nurturing &believing in ideas that reside insideeach one of us. Have fun exploring,creating & believing in your ideas, inclassrooms & beyond. Ideas that 6
  7. 7. defy & change beliefs; ideas that allow you to lead rather be led; ideas that areinside each one of us but only await self-recognition & belief. Your belief makesyour ideas work for you & become big; allowing you to be all that you can. Quantitative Research Model – BriefOne of the best and probably the most accurate research model to understandthe consumer perception of brands present today is the BRAND ASSET VALUATOR(BAV).BAV was created by Brand Asset Consulting, a division of the advertising agencyYoung And Rubican (Y&R) to help manage various brands worldwide as it serves asa diagnostic tool for understanding the growth pattern of brands over time which inturn helps in developing brand strategies and tactics.The BAV is based on research data from almost 500,000 consumers from 44countries.BAV measures the asset value of a brand on the basis of four main attributes: • Knowledge • Esteem • Relevance • DifferentiationBAV measures the Brand Vitality Or Brand Strength by using the Relevance andDifferentiation figures which tells about the future value of the brand. It also tells usabout how the brand has been in the past by measuring the Brand Stature from theKnowledge and Esteem values.With increasing standards for perfection of research study BAV has also introduceda new attribute the Brand Energy which measures the momentum of a brand. Itcomes under Brand Vitality Or Brand Strength. 7
  8. 8. 66% Future Growth Value 33% Operating ValueAs the BAV is a proprietary tool so the detailed model is not available for use but toobtain a similar result a variant of the BAV can be used for understanding the BrandValue. This is what we have used for understanding the brand value of ITCCLASSMATE.The four pillar- Knowledge, Esteem, Relevance, and Differentiation have beenconsidered and questions have been framed to properly gauge the consumer’sperception across the four attributes. Each pillar was assigned a 100% weight ageand then was split amongst the questions associated to them. Weights wereassigned on the basis of how much direct and comprehensive was the informationthat was obtained from that question. The survey was done on a one –on one aswell as online basis with a sample size of 49 which was selected through SimpleRandom Sampling.The calculation was done by adding up the number of responses and totaling themweight age of the question was given to the brand.A particular score was obtained for each brand. All the scores for each questionassociated to a particular pillar were added up to get the final score for a brand.Then a percentile was assigned to that score.In Q.6 and 10 z-tests were performed to see if the sample represents the populationor not. After that an ANOVA was done to figure out which brand was the leader.To measure brand stature, a few open ended questions were given which resultedin the category others, but to plot the brands on the BAV power grid we ignoredthe others category. 8
  9. 9. Questionnaire 1) Which are the top three brands that come to your mind when you think of notebooks? (Brand Knowledge: 30%) 2) Identify the pages of the notebook.( Brand Knowledge: 50%) 3) When it comes to notebooks which of these Brands would you recommend? (Brand Esteem: 30%) a. Classmate b. Navneet c. Pioneer/ Goodboy d. Nandita e. Others 4) Which brands do you associate with “Youth and Inspiration”? (Brand Differentiation: 50%) a. Classmate b. Navneet c. Pioneer/ Goodboy d. Nandita e. Local Brands 5) Which brand do you associate with the following parameters? (Brand Relevance: 50%) Brand/ Price is not a Price is a Price absolute Price is a minor Parameter barrier significant barrier barrier barrier ITC Classmate Navneet Pioneer/Goodboy Nandita 9
  10. 10. 6) Rate the following Brands in terms of Satisfaction with perceived Quality of the current company’s notebook you use. (Brand Relevance: 25%) Brand/Satisfactor 1(Least 2 3 4 5(Most y Level Satisfied) Satisfied) ITC Classmate Navneet Pioneer/Goodboy Nandita Local Brands7) What are the factors you consider while buying a notebook? (Brand Relevance: 25%) a. Availability b. Paper Quality c. CSR Activity d. Product Variety e. Others please specify................. 10
  11. 11. 8) What factors make a notebook brand unique? (Brand Differentiation: 50%) a. Availability b. Paper Quality c. CSR Activity d. Product Variety e. Others please specify.................9) How does the word classmate related to you?(Brand Esteem :30%) a. A Friend/Companion b. A special friend c. Just a part of the class d. A special part of the class e. Other, please specify............ 11
  12. 12. 10) Rate the following brand on a scale of 1 to 5 on the basis of its personality. (Brand Esteem : 40%) Brand/Satisfactor 1 2 3 4 5 y Level ITC Classmate Navneet Pioneer/Goodboy Nandita Local Brands11) Identify the following brands. (Brand Knowledge: 20%) 12
  13. 13. Quantitative Research- Findings And AnalysisThe percentile score of all the individual brands across the four pillarswere calculated and then converted into graphs.NanditaNandita scores the lowest in BAV with all the pillars at 25 percentile which shows that it is theleast preffered brand and is declining.PioneerPioneer scores the average on Knowledge, Esteem, and Relevance butmedium in differentiation meaning the brand need serious marketingbudget to revive its name. 13
  14. 14. NavneetNavneet has scored low on differentiation meaning it need more creative packaging.ClassmateClassmate is leading on all pillars hence showing that it is doing welland is a Yes - Yes for investors and future growth. 14
  15. 15. The notebook industry is dominated by unorganised players but ITC’s organised range dominates all.. Brand Asset Valuator- Power Grid HighBRANDVITALITY Low High Brand Stature 15
  16. 16. Qualitative Research Model – BriefA lot goes into our minds that we are not aware of. Most of what influences what wesay and do occurs below the level of awareness. That’s why we need new techniques:to get at hidden knowledge – to get at what people don’t know they know. - Dr. Gerald ZaltmanA true quote by one who patented one of the best qualitative researchtools that is used today for market research to understand theperception of the consumer about a brand by exploring one’s non-literal or metaphoric expressions.- Zaltman Metaphor ElicitationTechniqueZMET is usually used when managers require: • Detailed knowledge of the consumer and the marketplace • Clarity of thought guided buy effective models and theories • Creativity and imagination • Reasoned judgement and experienceZMET helps in understanding how a consumer consciously and subsconsciously interact to: • Create Needs • Influence the criteria for satisfying them • Shape the experience of satisfying needs • Spawn judgments about those experiences.ZMET uses visual and non- visual “images” gathered and/ or generatedby consumers to elicit and probe the metaphors that representconsumer’s thought feelings about a topic. 16
  17. 17. Images are important units of analysis for marketing managers formarketing managers. When augmented by consumers explanationsduring careful probing by an interviewer, the images provide a clearidea of what consumers really think and feel. Almost invariably, theseinsights are far deeper and clearer than the insights to be gained fromverbal discussions alone.Although images can be visual, many images can take other forms aswell as such Touch, Smell and Sound. Whatever the form it might be, animage represents a feeling much more distinctly than words. For thisreason, usage of images is referred to as a metaphor.During a ZMET interview, we collect verbal descriptions of the thoughtsand feelings represented by these images to help us understand theirmeaning. Strong evidence exists that these verbal descriptions are farmore complete and far more useful to managers because they weresimulated initially by these images or metaphors.In the ZMET process people are told to select their own images and arerequested to send them to the interviewer along with their perceptionabout each picture and brand associated with them.A real ZMET takes time of 7 days for each respondent and does nothave a common base for comparison for similar brands as eachrespondent selects a different picture for a common attribute. Insteadusing a Controlled ZMET process helps people select pictures from acommon set of pictures and describe their individual perception abouteach picture.Thus participants are able to represent their thoughts and feelings morecompletely and accurately.STEPS FOLLOWED IN ZMETStep 1: Story Telling about the pictures 17
  18. 18. The respondents were asked to select 10 pictures, which they felt bestdescribed, their feelings towards ITC classmate. They were then askedto form a story about their feelings about the brand in a 5-6 line story.Step 2: Missing PictureThe respondents where then asked if they asked wanted to include anyother picture on the 10 selected. If they answered yes then they wereasked to explain why.Step 3: The Triad TaskThis task tries to identify the concepts and thoughts at a higher level.The respondents were asked to represent 3 pictures selected at randomby the interviewer and how 2 of them are similar, but different from the3 rd picture. The reasons are probed using laddering technique.Step 4: The Metaphor ProbeThe participants are then asked to elaborate their thoughts and feelingsin an elaborate manner which uncovers the actual meaning andvalidated ideas which have surfaced from the previous steps. For thisthe respondents are asked to widen the frame of one or more pictureby asking what should be added or deleted from the picture that mightreinforce the original idea. This step id repeated for 2 or 3 pictures.Step 5: Digital ImagingThe respondents are then asked to create a collage of pictures theyhave selected. They were asked to give one word for the pictures theyhad selected. This brought out what they thought and their ideas. 18
  19. 19. Qualitative Research- Findings And Analysis Respondent – 1 Respondent - 2 Respondent – 3Respondent – 4 Respondent – 5 Respondent - 6Respondent – 7 Respondent – 8 Respondent - 9Common Perceptions: Innovative CoverEco FriendlyGood AmbassadorsCorporate Social Responsibility (Re.1 is donated to rural development initiative)Fine Quality Paper- Royal Feeling 19Fun
  20. 20. Interpretation Of ZMET Analysis: ITC classmate is a creative, innovative, andsocially responsible and eco-friendly brand of notebooks offering superior paper quality."Long-term brand equity and growth depends on our ability to successfullyintegrate and implement all elements of a comprehensive marketing program."- Timm F Crull, Chairman & CEO of Nestle 20