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Why brand & brand building 101
The document provides a comprehensive overview of brand building, defining a brand as more than just a logo, encompassing various elements that represent a company's core values and personality. It outlines the importance of differentiating and positioning a brand, personalizing it to engage consumers, and continuously reviewing its value and market position. Furthermore, it emphasizes the long-term benefits of strong branding strategies in creating consumer loyalty and enhancing brand equity, illustrated with examples like Maggi and Cadbury in the Indian market.
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Why brand & brand building 101
- 2. Get Ins(gated… Brand Building An overview
- 3. Get Ins(gated… Some of the successful brands…
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- 5. Get Ins(gated… But what is a brand?
- 6. Get Ins(gated… A lot of people think that a brand is simply a logo or symbol. However, whilst a brand often includes a logo it is also defined by specific fonts, colour schemes, symbols, and even sound. All these elements are developed to collectively represent implicit core values, ideas, and even personality or tone of voice. It also includes how you present yourself to your customers -‐ how you answer the telephone, the signage at the main entrance to your office or shop front, any promotional items or banners, the uniforms your staff wear, any promotional items, newsletters or banners that are used internally and externally. ALL these elements together form the basis of your overall brand.
- 7. Get Ins(gated… 3 popular types of brands • Service brand-‐ this brand is built on knowledge, culture, and experience that one has with the service delivering agency/company/people. Think of Geek Squad or Molly Maid • Retail brand-‐ this brand is built on a mixture of products and service experience. Think of Chick-‐fil-‐a, Kroger, or KFC • Product brand-‐ is built on the experience that one has with a specific product. Think of Nike, Ford, or Sony
- 8. Get Ins(gated… What is brand building?
- 9. Get Ins(gated… There is no one definition that actually captures the essence of brand building in its entirety. Many people think that brand building is all about communicating and exposing your brand. That is just one side of it. The best way we can define it is that it is a process of creating value to consumers. It encompasses all things that consumers know, feel, and experience about your business in its entirety.
- 10. Get Ins(gated… Process involved in Brand Building • Define your brand • Differentiate and position your brand (or even better purpose’fy your brand) • Build and expose your brand • Personalize your brand • Review your brand
- 11. Get Ins(gated… Define your brand This is a very critical step as it ultimately determines what your brand truly stands for. When defining your business brand, you should create a checklist of its core strengths. Similarly, if you’re defining a personal brand, you should look at the skills and expertise that you possess especially those which stand out. On the same token, you also need to know what your brand stands for and what is important for your brand (brand values). Your values should in one way or another show that you are contributing to environmental, social, and economic well-‐being of consumers. You have to look at it objectively to understand the important aspects of brand building
- 12. Get Ins(gated… Differentiate and Position your brand Before embarking on brand building, you have to take time to differentiate it so that you can attract attention and stand out from competitors. To differentiate your brand, you have to create a unique advantage in the mind of consumers not merely getting attention by brand building colours or logos or other superficial elements. Once you come up with a unique value proposition, you should use a good branding strategy to position your brand in a way that will help consumers see and appreciate the greater value of your brand over competing ones in the market. Or even better, based on the value you can uniquely deliver, craft a purpose which participates in people’s lives and engages them, rather than shouts out your positioning at them.
- 13. Get Ins(gated… Build and Expose your brand Brand building is not a one off thing. Building a unique and powerful personal or business brand takes time and consistency. To build your personal brand, you have to keep reinforcing your values and skills by taking up new roles and assignments that will give you more exposure. Alternatively, you can use promotional channels, blogs, forums, and social media (LinkedIn, Twitter and Facebook) to create a voice for your personal or business brand When building your brand, you should also endeavour to develop brand personality (what people know, think, and say about you & how as a brand you behave). This is what drives or motivates people to identify with and engage with your brand. The truth is; if you execute your brand building strategies consistently, then you will easily establish a pattern that will forever be associated with your brand name
- 14. Get Ins(gated… Personalize your brand If you want your brand building campaign or brand to be successful, then you have to personalize it. It is important to give your brand an identity. Let consumers see and experience the personality of your brand in its entirety. Look at your brand as something that a consumer wants to identify with pretty much as they would with their favourite cars, cell phones, or computers As you engage in brand building, you should also invite customers to be co-‐creators of brand values so that they can feel that they also own it and relate with it. Top brands encourage consumer-‐brand interaction by personalizing products to meet the needs and preferences of consumers. When you personalize your brand, you give consumers reason to participate and engage with your brand for a lifetime
- 15. Get Ins(gated… Review your brand Your brand is not static; it will go through a range of motions in its lifetime. Depending on your brand strategies, your brand will either grow in strength, or remain dormant, or recede with time. In the brand cycle, new events, changes, and circumstances bring challenges and opportunities to enhance the value of your brand or re-‐establish it. All these possibilities should give you the impetus to take charge of your brand building activities As your brand name grows, so do the responsibilities and expectations to continue with brand building. The best way of ensuring brand growth is reviewing your activities and evaluating your successes through metrics such as levels of brand awareness and levels of engagements. Regular reviews will help you seize and exploit new opportunities while upholding your commitment to remain true to your vision and brand strategy. It will also help you steer your brand in the right direction and keep it relevant as you move into the future
- 16. Get Ins(gated… As you can see, brand building is not a one off thing. You have to define your brand, differentiate, present it, and review what your brand stands for from time to time. It is very important to be clear about your branding strategies and how you’re going to implement them. You should also adopt brand strategies that will add value to your consumers and help them develop the right impression of your company and what it truly stands for.
- 17. Get Ins(gated… Why do you need brand building?
- 18. Get Ins(gated… Brands are psychology and science brought together as a promise mark as opposed to a trademark. Products have life cycles. Brands outlive products. Brands convey a uniform quality, credibility and experience. Brands are valuable. Many companies put the value of their brand on their balance sheet.
- 19. Get Ins(gated… Brand building is essential to enhance the brand equity. Let’s look at a few examples….
- 20. Get Ins(gated… When Tata Motors of India bought Jaguar and Range Rover from Ford, what did they buy? Factories? Raw Materials? Employees? No, Goldman Sachs and Morgan Stanley helped Ford sell the brands to Tata for $2.56 billion, and the brands were worth more than all other ingredients combined
- 21. Get Ins(gated… Likewise, when Kraft bought Cadbury for $19.5 Billion what did they buy? The chocolate? The factories? The recipes? The candy makers? No they bought the brands.
- 22. Get Ins(gated… And when Four Seasons Hotels, Inc., a Canadian-‐based international luxury, five-‐ star hotel management company, sold itself to Bill Gates and and Prince Al-‐ Waleed bin Talal of Saudi Arabia for $3.8 billion what did they buy? Locations? Restaurants? Staff? Beach front property? No they bought the brand.
- 23. Get Ins(gated… The list goes on with many examples such as InBev acquiring Budweiser to add to their house of brands that includes Stella, Becks and Labatt. Or Geeley Motors of China acquiring cult Swedish Auto brand Volvo. Or Mahindra of India buying Ssangyong, Korea’s third largest car company. Branding is fundamental. Branding is basic. Branding is essential. Building brands builds incredible value for companies and corporations.
- 24. Get Ins(gated… Another example to demonstrate the Power of brand building
- 25. Get Ins(gated… The dollar is a world brand. In essence it is simply a piece of paper. But branding has made it valuable. All the tools of marketing and brand building have been used to create its value. On the front you will find the owner of the brand: the Federal Reserve. There is a testimonial from the first President of the United States, George Washington. There is a simple users guide: “This note is legal tender for debts public and private.” And if you’re still not convinced, the owner has added the all important emotional message: “In God We Trust”. The dollar is a world brand. It confers a uniform value globally. In reality it’s just a piece of paper. Branding has made it worth something.
- 26. Get Ins(gated… In today’s world Brand is more important compared to the past..
- 27. Get Ins(gated… • The world has come online and there are many new markets and a growing middle class in places like India, China, Brazil, Russia, South Africa, Nigeria, Indonesia and in many more places. These consumers buy brands. They buy premium brands. The best branding today is based on a strong idea. The brand through its creativity (communication, product innovation, etc.) need to break through people’s wall of indifference and create a brand heat • For example, the Chrysler Group’s 2 minutes commercial with Clint Eastwood at Super Bowl boosted brand awareness by 2700% within 24 hours of being ‘aired’ in 2012. Also the same in 2011 at Super Bowl with Eminem raised brand consideration by 267% for all Chrysler Group products • No matter in which corner of the world a person reside, your brand is visible to all due to online
- 28. Get Ins(gated… • The world has changed. We are now living in the age of uprisings and movements. Now building brands has become a lot less expensive and smart brands can take advantage of new tools and rocket up there globally, very fast • In the face of the current economic challenges, it’s worth noting that brands do better in tough times compared to unbranded products. Brands outlive product cycles. And in these challenging times, there are still great brands being built. Brand owners still recognise opportunity and their brands will thrive in the years ahead
- 29. Get Ins(gated… • No branding, no differentiation. No differentiation, no long-‐term profitability. People don’t have relationships with products, they are loyal to brands. • Brands have a purpose that people can get behind. Brands can inspire millions of people to join a community. Brands can rally people for or against something. Products are one dimensional in a social media enabled world, brands are Russian dolls, with many layers, tenants and beliefs that can create great followings of people who find them relevant. Brands can activate a passionate group of people to do something like changing the world. Products can’t really do that.
- 30. Get Ins(gated… Let’s have a look as some recent examples…
- 31. Get Ins(gated… "What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India." The Economic Times, a prominent newspaper in India, in 2003. "Maggi is the leader in the Instant Noodles category because it is constantly improving its understanding of the consumer to give them excellent and tasty products that provide nutri@on, health, and wellness." Mar(al Rolland, chairman and managing director, Nestlé India Ltd., in 2006.
- 32. Get Ins(gated… Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product. With the launch of Maggi noodles, NIL created an en@rely new food category -‐ instant noodles -‐in the Indian packaged food market. Because of its first-‐mover advantage, NIL successfully managed to retain its leadership in the instant noodles category even un@l the early 2000s. Over the years, NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids among others. However, these product extensions were not as successful as the instant noodles. In 2005, NIL started offering a range of new 'healthy‘ products under the Maggi brand, in a bid to aZract health-‐conscious consumers.
- 33. Get Ins(gated… • Nestlé India Ltd. (NIL), promo@ons posi@oned the noodles as a ‘convenience’ product for mothers and as a ‘fun’ product for children • Noodle’s tagline, ‘Fast to Cook, Good to Eat’ was based of its posi@oning • Effec@ve tagline communica@on – ‘Adds flavour to Life’ • It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs have been designed keeping in mind the same concept
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- 35. Get Ins(gated… Maggi roped in celebri@es such as Madhuri Dixit and Amitabh Bachchan which would connect with the consumers in India. As a result the personality traits of these celebri@es got transferred to the brand.
- 36. Get Ins(gated… As a brand Maggi created an impact with its consumers and became a trusted household name in India
- 37. Get Ins(gated… Controversy… At the end of May 2015, India’s Food safety administration (FDA) ordered Nestlé India to recall its popular 2-‐minute Maggi noodles after tests showed that the product contained high levels of lead and MSG
- 38. Get Ins(gated… As a result Maggi started conversing to its consumers digitally at every stage of this controversy…
- 39. Get Ins(gated… They interacted with the consumers and answered every query…
- 40. Get Ins(gated… Nestlé engaged in an active dialogue with customers on social media channels Facebook and Twitter. As well as this the company created a FAQ page on the official Nestlé website to answer all questions
- 41. Get Ins(gated… In the end on 4th June, 2015 Nestle made an announcement that they have recalled all Maggi products produced in India. Nestlé CEO Paul Bulcke spoke to the media and said that “We are working with authorities to clarify the situation and in the meantime Nestlé will be withdrawing Maggi noodles from shelves.” On 16th June, 2015 Nestle decided to destroy more than $50 million worth of Maggi noodles in India after they were deemed unsafe by regulators. Finally in August, 2015 Maggi was cleared of all charges as the test revealed Maggi noodles do in fact comply with national food safety standards.
- 42. Get Ins(gated… Maggi – Current Scenario • Maggi despite such a debacle, gained 50% market share within 6 months of re-‐entering the market • This was purely possible because of the love and trust people have for the brand • It took years for Maggi with its constant interactions with consumers over the years to build the trust and love for the brand • Brands over a period of time is seen as individuals, for many Maggi is their best friend whom they can depend upon and they will forgive it for any of its mistakes • This is the kind of impact a brand can create with the consumers
- 43. Get Ins(gated… Cadbury began its operations in India in 1948, where today the company’s name has become synonymous with chocolate. Cadbury India (“Cadbury”) commands a 70% share in the Indian chocolate market, and is a significant player in the chocolate category. Thirty million bars of Cadbury Dairy Milk chocolate bars are bought every month. In June of 2003, Cadbury was the only multinational to be identified as one of India’s Best Managed Companies by Business Today 1, and Business World ranked Cadbury among the Best Workplaces in India. Cadbury’s strong relationship with its customers seemed unshakeable Despite a slowdown in the fast moving consumer goods (FMCG) sector in India, Cadbury was among India’s fastest growing companies in 2000’s
- 44. Get Ins(gated… The brand built over the years • In 1990’s the Indian consumers associated Cadbury Dairy Milk as a product meant for kids • To change this perception Cadbury came up with series of campaigns starting with ‘The real taste of Life’ to encourage people to bring out the child in them • Later they moved to the social acceptance theme line – ‘Those who want to eat, will find a reason for it.’ Through this, Dairy Milk was able to gain an acceptance for chocolates among the adult audiences for consumption • After this Dairy Milk sought to achieve the difficult objective of replacing the traditional Indian sweets and desserts with their chocolates. For this, Cadbury ran various campaigns under 'Kuch meetha ho jaye', including two campaigns parallelly -‐ 'Shubh Aarambh' and 'Meethe mein kuch meetha ho jaye.‘
- 45. Get Ins(gated… • After this Dairy Milk sought to achieve the difficult objective of replacing the traditional Indian sweets and desserts with their chocolates. For this, Cadbury ran various campaigns under 'Kuch meetha ho jaye', including two campaigns parallelly -‐ 'Shubh Aarambh' and 'Meethe mein kuch meetha ho jaye.‘ • The common thing for all the campaign that Cadbury focussed was on the Indian customs and traditions and yet they gave a modern and contemporary look to connect with the people • Today Cadbury is a trusted brand which is used to give as gifts on big occasions such as Diwali, Rakshabandhan, First date, on an achievement/success, etc. and also consumed on a daily basis. Cadbury is not seen as a mere chocolate like competition
- 46. Get Ins(gated… But do you know Cadbury went through a very bad patch and had hit rock-‐bottom in 2003 controversy?
- 47. Get Ins(gated… • In October 2003, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates and the Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant • Though Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause, but the FDA didn’t buy that saying packaging was not proper, airtight • The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.
- 48. Get Ins(gated… • Cadbury's launched project 'Vishwas' -‐ a education initiative covering 190,000 retailers in key states and in Jan, 2014 they invested Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's revamped the packaging of Dairy Milk. The metallic poly-‐flow, was costlier by 10-‐15 per cent, but Cadbury didn't hike the pack price • Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand • The recovery began in May 2004, and by June, Cadbury's claimed that consumer confidence was back • The reason for Cadbury's success was that it took crisis head-‐on. And the consumers were more forgiving, because the brand enjoyed an emotional equity in India
- 49. Get Ins(gated… • Santosh Desai, former president, McCann-‐Erickson says, "The nature of the relationship that Cadbury's has built with the consumer is responsible for latitude the consumers are giving it.” • "They are seeing it as a lapse, not a breach of trust -‐ this difference is key. What Cadbury's set out to deliver, it goofed up once but it seemed to be very sincere in its intent to get things right."
- 50. Get Ins(gated… Cadbury – Current Scenario • Cadbury continues to lead the Indian chocolate market with over 70 per cent market share • They are catering to all age groups from 5 to 60 years old • Is an alternative to traditional Indian sweet and desserts and falls in the premium segment • Again like Maggi, even Cadbury formed a relation with the Indian consumers and the people were more than happy to let go of Cadbury’s mistake • Brands are like individuals, Cadbury as a brand didn’t hide anything from the consumers and kept them in the loop in every process • Only brands can form relationships and not products
- 51. Get Ins(gated… • Brand positioning – Vodafone helps people enjoy richer communication anywhere, anytime. Always reliable, always easy, always great value…passionately delivered • Brand name/logo – Vodafone logo calls it ‘speechmark logo’ a quotation mark in a circle, with the O’s in the Vodafone logotype representing opening and closing quotation marks and suggesting conversation. The logo has been same over the years and it is memorable. The red colour is likeable by one and all and has a high recall value
- 52. Get Ins(gated… • Before Vodafone took over Hutch, Hutch had made a good impression by differentiating its services from competition and showcasing the same through ads. Also they signed 2 class acts i.e. Rahul Dravid and Irfan Khan as brand ambassadors. Do you remember Irfan Khan’s “Hutch ka chota recharge.” This created an impact in the cluttered telecom industry • Later with the campaign “wherever you go, our network follows” was nicely positioned with the help of the boy and the pug. This created the love for the brand and people were affectionate towards it, also Pug became famous and the best brand ambassador for them • Hutch had created the right kind of brand which Vodafone didn’t want to disrupt, therefore they came with a campaign showing that the Pug has got a new home The brand built over the years
- 53. Get Ins(gated… • The company again used the PUG to tell the customers that they really respect the customers and feel ‘Happy to Help’ • Vodafone then thought of advertising their ‘value added services’ e.g. Easy recharge, callertunes, internet, roaming, bill payment, SMS packs, music, unwanted calls blocker, etc. and this time they created a new character called ZooZoo. • Each ad positioned Vodafone as a company dedicated to provide basic and Value added services to the customers in a manner easily understandable and accessible. ZooZoo has become a great marketing story and is one of the best examples of how a simple character becomes the identity of an already existing brand. It caught the attention of the consumers, aroused their curiosity, told them stories and undoubtedly Vodafone has enjoyed tremendous gain in its brand image-‐ thanks to these loveable creatures
- 54. Get Ins(gated… • The recent campaign is ‘Power to you’ wherein it says • "Power to you" comes together with new services that bring the Internet, the email & social communities closer than ever to customers • Enhanced user experience of email and Internet on the mobile phone, through the service “Vodafone Internet pe Mobil” which now integrates the Opera Mini browser • Easy email access, anytime anywhere, from a broad variety of handsets. • Together with the new brand promise, Vodafone refreshes the IVR for easier and improved customer experience • This new campaign aims at positioning the company as a service innovator by promisimg a series of services and offerings that will bring Vodafone customers an improved customer experience and better opportunities
- 55. Get Ins(gated… Therefore Vodafone as a brand comes across as someone who is affectionate, lovable, fun, caring, etc Someone who is not selfish and will always be by your side, wherever you go Vodafone has the personality of the dog, faithfull, always following wherever you go and that’s what customers want their network to be like
- 56. Get Ins(gated… A research was conducted among metro cities in India on telecom industry…
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- 63. Get Ins(gated… Vodafone has always made network their priority through their communication
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- 71. Get Ins(gated… Even though people feel that all network providers such as Idea, Vodafone, Airtel etc. are bad and Vodafone provides the worst call rates, they still forgive Vodafone because of the brand image created by them through all these years. The Pug, Zoozoo create a bond with the consumers. They feel loved by them and though they may get pissed by the Vodafone network they would never want to change due to the relationship developed over the years
- 72. Get Ins(gated… These examples showcase the power of the brand. It not just helps you to differentiate from competition but also helps you in adversity
- 73. Get Ins(gated… In a highly competitive and visual led market place the 'look', styling and tone of your brand identity is essential. It should reflect the personality, ethos and spirit of the organisation while visually appealing to a wide audience. The power of a brand derives from a curious mixture of how it performs and what it stands for. When a brand gets the mix right it makes us, the people who buy it, feel that it adds something to our idea of ourselves.
- 74. Get Ins(gated… In a world that is bewildering in terms of competitive clamour, in which rational choice has become almost impossible, brands represent: clarity, reassurance, consistency, status, membership. In fact, everything that enables a human being to help to define themselves. Brands represent personal identity
- 75. Get Ins(gated… In short, your brand is the way your customer perceives you
- 76. Get Ins(gated… Rohan Nair (Sporty-‐wolf) Passionate Cricketer, Traveller, Culture Lover, strategist interested in semio(cs & design thinking. A strategic Ins@ga@on compiled & provoked by Rohan Nair. You can feel free to discuss, debate and get further ins@gated by sending a howl to Rohan at rohan@wolfzhowl.com
- 77. Get Ins(gated… Hope You stay instigated…howl!!