The document discusses how brands can adapt to the era of consumer disaggregation enabled by information technology. It argues that brands should shift their focus from product-based aggregation to building direct consumer relationships through personalized and targeted communication. It identifies three core areas for brands - the consumer relationship, the channel relationship, and organization of brand management. Companies can tailor products to individual consumer needs and ensure a two-way communication flow. Retailers now control consumer access, so brands must avoid being delisted. Organizational changes are also needed to focus on consumer segments rather than just products or volume sales. Developing a deep understanding of consumer behavior through data analysis and loyalty programs was highlighted as important for the future of brand management in

1. HARVARD BUSINESS SCHOOL CASE

2. Brands reach out to large number of people by delievering a stated
benefit. Thus they aggregate consumers

3. The information revolution is making consumer disaggregation
vastly more efficient and profitable than aggregation, the
traditional source of brand power.

4. So, What are brands good for in era of
disaggregation
Answer can be found by examining three core
areas of brand management:
The Consumer
Relationship
The Channel
Relationship
Organization of
Brand
Management

5. Companies tailor their products to the requirements of consumers,
thus communicating the benefit of product more effectively
The Consumer Relationship

6. Consumer chooses when and through which channel to interact
with company and company ensures that consumers history travels
with him - two-way flow of communication
The Consumer Relationship

7. OK Fine !! Consumer Consumer Consumer
But What’s in it for the Company ??

8. • Communication costs are reduced and hit rates
increased through more efficient targeting
• Finer segmentation allows more precise and
profitable pricing
• Targeting Consumer by permission generates a
faith and likelihood of repurchase
• Competitive threat is tackled when companies
know which consumers are most likely to switch

9. • Program’s flagship is its glossy quarterly magazine entitled food and
family
• It delivers food-related articles, recipes, editorials, and of course
advertising.
• Magazine personalized to individual consumer

10. This program highlighted two central facts of
disaggregation
Locus of consumer relationship shifts from product
brand to an umbrella of brands
1

11. Marketing activities and consumer acquisition for
disaggregation marketing becomes easy and
economical
2

12. Amount of brands marketing budgets spent on retailers
listing fees, promotion and cooperating advertising is
twice as large as marketing the brand to end consumer
The Channel Relationship

13. So, Brands cannot afford to be delisted from any of the handful of
major retailers that now control access to the consumer

14. Retailers argue that the economics of disaggregation
favor them.
Whereas a Kraft or Procter & Gamble spreads the cost of
a marketing program over a few hundred brands
A retailer spreads those costs over more than thousands
stock-keeping units and indeed can even pass some of
the costs back to the manufacturers.

15. • Provided a loyality card to consumers to build a information driven
marketing program
• Consumer shopping experience is personalized by analyzing data from
shoppers

16. P&G - Golden Households
• Develop understanding of 20% of households that account for
sizeable chunk of purchases from P&G products
• Company combined its consumer data with the Tesco data to
develop a broader perspective on consumer behavior

17. •Relationship building entity mechanism
•Targeted communications
•Expertise in new product and brand development
Organization of Brand Management
Managers must recognize the need for three elements
in any new structure as paradigm shifts from product
brand to disaggregate marketing

18. Disaggregation’s Impact on Brand
Management
Brand Management
 Product categories or brands
 Volume sales, Dollar Sales,
Market share
 Branding, Message
development, Agency
management
 Given our resources, what
else can we make ?
Disaggregate Marketing
 Segment of similar consumers
 Customer level profitability
 Consumer segment,
behavior, data interpretation
and management
 What else can we deliver to
them a part of complete
solution ?

19. CONCLUSION
• Brands are an excellent means of developing and
communicating a differentiated value proposition
in the market
• Healthy relationship building with consumer via
disaggregation marketing would be the ultimate
prize for brand managers

21. Created by:
Mohd Wasil
IIT Delhi
During Internship by
Sameer Mathur, IIM Lucknow