What are brands good for?

1. WHAT ARE BRANDS
GOOD FOR?
BASED ON NIRAJ DAWAR’S MANAGEMENT REVIEW, MIT SLOAN

2. A presentation by
Shalvi Rathi,MNNIT Allahabad
Marketing internship 2015 under
Prof. Sameer Mathur,IIM Lucknow
www.IIMinternship.com

3. The power of BRAND
Over time, as consumers come to associate a brand with a
specific benefit, the brand acts like a stake in the ground,
claiming territorial rights over its value proposition.

4. Over the years, brands have made an impact on our minds so
strong,that we unconsciously prefer branded over
unbranded.
Brands have become a part of us. We associate ourselves
with them.

5. Aggregating customers
Reaching large number of people with a promise to deliver a clearly
stated benefit that sets it apart from competitors.
This is the source of brand power.

6. But a new trend has been
observed over the years..

7. Consumer Disaggregation
Under the influence of the information rich environment, the companies
are disintegrating the consumers on various levels and are interacting with
them at the segment or even individually.

8. Many of the strategic and tactical tasks
entrusted to brands can now be performed
better, less expensively and more profitably at
the level of consumer segments.

9. But how is disaggregation doing it
better?
For that we need to examine the following core
areas of
BRAND MANAGEMENT:

11. 1.Consumer Relationship
STRATEGIC TACTICAL

12. 1.1Strategic Consumer Relationship

13. 1.1.1 Building a Relationship:
Earning trust and credibility

14. 1.1.2 Communicating a Key Benefit:
Staking a Position
Company Consumers

15. 1.1.3 Charging a Price Premium

16. 1.2 Tactical Consumer Relationship

17. 1.2.1 Driving Trial and Traffic and
Increasing Sales Volume

18. 1.2.2 Building the Likelihood of
Repurchase

19. 1.2.3 Responding to Competitive
Moves

20. 2.Channel Relationship
A dramatic change has been in the remarkable rise of
the retailer. The source of retailers’ power today is not just their
increasingly large size and concentration; it is in the way they
now define their business.

21. Retailers argue that the
economics of disaggregation
favor them and that they
have greater credibility in
assembling an assortment of
brands that makes sense for
the consumer.

22. Manufacturers VS Retailers
Retailers’ understanding of
brands has always been
different
from that of the
manufacturer. Retailers used
to view well-known brands
such as Coca-Cola and Tide
as magnets to attract
consumers to the store

23. 3. Brand Management
Organization
Brand management systems were designed for an era of mass marketing
and are not well suited to making good use of the tidal wave of valuable
consumer information.

24. Brand-management organizations are
proving to be an impediment to the adoption of
consumer-level disaggregation initiatives.

25. Disaggregation impact on Brand
management:

26. 1. Organization Structure
and Leadership
Brand Management
 Managers or teams are
assigned to product
categories or brands.
 The quarterback who brings
company resources together
to focus on the market is the
product or brand manager.
Disaggregate Marketing
Managers or teams are assigned
to segments
of similar consumers.
The quarterback who
brings company resources
together to focus
on the market is the segment
manager.

27. 2. Key Business Measures
Brand Management
 Success is measured by
volume of sales, dollar
sales, market share and
brand or product
profitability.
Disaggregate Marketing
Success is measured by
customer-level or segment-
level profitability and depth
of relationship
(share of wallet).

28. 3. New Product Development
and Innovation
Brand Management
 Developing and testing of
products based on
product-related
competencies.
Disaggregate Marketing
Developing and testing
products on the basis
of segment needs.

29. 4.Key Brand Management
Activities
Brand Management
 Brand-led copy
development; brand-level
promotional activities to
boost volume or market
share; trade marketing
support; coordination with
advertising agency.
Disaggregate Marketing
Segment-driven cross-
promotional opportunities;
coordination of
communication of multiple
brands

30. Take aways:
 Aggregating consumers-The traditional environment
 Disintegrated consumer-The new environment
 3 core areas of brand management:
Consumer relationship
Channel Relationship
Brand Management Organisation

31. Thank you !