7761872 Brand Concepts Strategy 091117060738 Phpapp02

8/8/2019 7761872 Brand Concepts Strategy 091117060738 Phpapp02

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Brand Concepts &

StrategyIGTC 2003


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Structure

What is a Brand?. Product vs Brand

Brand Identity Developing a Brand

Framework Brand Strategies Extension &

Revitalization


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What is a Brand?


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Essence of a Brand : Aaker

A companys brand is the primary sourceof its competitive advantage and a valuablestrategic asset.

The challenge for all brands is that theyhave distinct clear image that matters tocustomers and truly differentiates from therest.

The key step is to create a broad bandvision or identity that recognizes a brand assomething greater than a set of attributesthat can be imitated or surpassed.


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Product vs Brand

A product is made in a factory ABrand is bought by the customer.

A Product can be copied A brand isunique

A Product is quickly outdatedABrand is Timeless


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Product vs Brand

Brands differentiate Products Fairness Creams: Fair & Lovely vs Ponds

Dream Fairness

Coconut Hair Oil: Parachute vs Dabur Vatika

Cola: Coca Cola vs Pepsi

Products largely undifferentiated: Product choicefunction of Convenience / Availability / Price.

Petrol : BPCL vs IBP vs .

ATM : HDFC vs HSBC vs .

Mineral Water : Bisleri vs Bailey vs Kinley


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Product Levels : Kotler

Core Product: Core Benefit or service

Tangible Product: Brand Name,

Packaging, Features, Quality, Styling

Augmented Product: After sale service,Installation, Delivery & credit, Warranty

Eg: Consumer Goods Products extendingServices Asian Paints: Painting Homes;Surf: Laundry


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Brand Image vs BrandAssociations vs Brand

PersonalityBrand Association

Personality Based on:

Expression of self or User Imagery

Eg: Nike Achivement Performance

User/Customer Brand Relationship Eg: McDonalds- FunFamily

Functional Benefit Association Based Eg: GujaratAmbuja- Strong Man


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Identity vs Image

BrandImage

Consumer

Market,Competition,Media

BrandIdentity

Noise

StrategicVision,BusinessNeeds

Corporate


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What is Brand Identity?

Simply put: What does a Brand stand for?

Heart and Soul of the Brand: Brand Constitution,Brand Framework

Provides Strategic Vision Direction, meaning,

purpose to the brand

Combination of Brand Vision, Purpose, Values &Associations

is a set of brand associations that the brand

strategist aspires to create or maintain. Theseassociations represent what the Brand stands for andimply a promise to customers from the organizationmembers - Aaker


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What is not Brand Identity :Traps

Brand Image Trap: Eg: Denim: Macho Based on consumer perception. Tactical, Reactive

Lacks Strategic Future Perspective

Brand Position Trap: Eg: Elle 18 : Teenagers Based on Competitive Advantage. Relates to current market

scenario, consumer needs. Communication captures only aparticular aspect of the Brand

Limited Scope. May not be applicable in the Future

External Perspective Trap: Eg: Tata: Trusted Quality Customer centric, lacks employee buy-in

Product Attribute Fixation Trap: Eg: Britannia Biscuits Based on Product Attributes, Product Benefits Limits the expansion of the Brand... Open to threat as it

equates the Product to the Brand


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Brand Concepts

BrandImage,Personalities,

Associations

BRANDBrand

Framework

ProductFramework

PRODUCT/S

What it does?

RECEIVE

R

SENDER

How it does?


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How? Strategic BrandAnalysis

Processes: Semiotics- Image Study: Factor Analysis-Attribute Rating, Perceptual Map, ClusterAnalysis- Profiling

Consume

r

Company Competitor

ImageNeedsTrends

Performance

ImageHeritage

SWOTRelationsh

ips

ImagePositioning

Communication

SWOT


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Brand Identity Systems:Aaker

Brand as an ORGANISATION

Extended IdentityBrand as

Brand as

PRODUCTPERSON

(Peripheral Support Values)

Brand as Symbol

SUPPPORT

VALUE PROPOSITIONFunctional + Emotional + Self

Expressive Benefits

CoreIdentity


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Efficient Service, Hygienic, Clean , Smart

Service

American Ronald

Fun

Ronald, Happy Meals, Parties

Tasty, VFM Burgers, Fries & Drinks

Create environment to provide fun &entertainment For family and kids

VFM,Hygiene,

HappyFamily

McDonalds Brand IdentitySystem

VFM, Tasty,Quality, Burgers

& Fries,Happy Meal

Promos

Fun, Happy,Friendly,

Family, Warm,Outgoing

Ronald, Happy Meals.Clean Environment, Efficient Srvice


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Guides Brand Strategy

Strengthens Brand Memorability,Communication, Associations

Provides Brand Extension possibilities Assists Portfolio Reorganization

Improves Competitive Advantage

Adds Value to organization Market Value Gives a sense of direction to employee

Why ? Leveraging BrandIdentity


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When? Change vsConsistency

Need to change Identity PositionCommunication:

Poorly Conceived Mismatch: Digen Verma

Obsolete: Philips Innovation

Shrinking Audience: Ponds Oil Control

Not Contemporary: LakmeFashion

Fatigue: Britannia Health & NutritionIntelligence


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Need For Consistency

Brand Building takes time:

Amul girl & Utterly Butterly Delicious Amul

Marlbro Rough Cowboy

Results in Cost EfficienciesOrganizational Pressures to change:

Change a solution to all problems

Facelift to fight Boredom Self-Promotion


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BRAND-WAGON

BRAND

ENGINE

BUSINESS STRATEGY MARKETING STRATEGYSALES STRATEGY

Business

Potential

BrandValue

Segmentation

TargetPositioning

Marketing

MixProduct/PkgPricePlace

Promotion

MktgPlan

SalesPlan


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Brand StrategiesTo Fuel the Brand Engine

Strategy 1:- Extension- Giving birth tonew product brands

Strategy 2 :- Revitalization- Injecting life

to the existing brandRevitalization:- Injecting life to samebrand, energizing a mature brand

Need to inject life into the Mature Brand

Facelift Recharging the BrandBatteries


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Brand Decisions: LeveragingBrand Identity

Brand Extension Strategy

Brand Revitalization / Restage


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Simply Put

Brand Identity: What does a Brand mean / stand for

Brand Extension: What would you like (enjoy, love,admire) the brand to do for you.

Brand Revitalization: How would you like to see the

Brand tomorrow (Future Expectations). Brand System / Architecture: What are the

important Relations that the Brand has

Brand Limitations: What would you dislike (hate,anger, shame) the Brand to do.


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Need for Brand Extension

Brand Growth

Mature brand : provide fillip to stagnatingsales

Threat of new entrants: Protect Market Share Strengthen franchise

Enhance Brand Image

Strengthen Brand Identity

Revive core values

Reposition core values


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Ways in which a Brand can beExtended

1. Line Extension

2. Brand Extension

3. Multiple Brands4. New Brands


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Line Extension Strategy

Extend existing brand name to existing productcategory: Identify & occupy different segmentsof the market market fragmentation

Pack variants: shampoos: sachets to economypacks tubes to jars, bottles to cans : differentiateuses

Price variants: Rin Shakti to Rin Supreme. Taj Luxury

to Taj Executive: differentiate user groupsParachute Uttam (differentiate markets)


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Line Extension Strategy

Flavours / Variants: Diet Coke, Sunsilk Black,Parachute Lite. Hair type, skin type, usergroups: Differentiate user needs

Colgate Gel, Maggi Chinese Noodles

Ingredient Lead: Lux Sunscreen, Ponds Talcwith SAM : upgrade user needs

Head & Shoulders ZPTO, Menthol


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Extend the brand name to a new ProductCategory: Brand fit in a new business area Supplementary Categories: BPL TV to Washing

machines, Maggi soups & sauces, Lakme

lipsticks to perfumes Complementary Categories: Colgate toothbrush

& toothpaste

Image Accessories: Bennetton T-shirts to sun-

glasses, Nike sports shoes to T-shirts Diverse Categories: Similar core values:

Britannia biscuits to dairy products. DaburChavanprash to Vatika


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Multiple Extension Strategy

New Brand names in the same productcategory market saturation

Expensive strategy: Leading corporates

often through acquisitions economies ofscale HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy,

Dove, Pears

P&G Detergents: Ariel, Tide

Coca Cola: Coca Cola, Thums Up

Lakme: Elle 18, Orchids

Nescafe, Sunrise


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New Brand Strategy

New Brand Name for a productcategory: poor brand fit butbusiness potential

Kotex to Kleenex

Huggies to Depend

Thums Up to Gold Spot, Pepsi to Mirinda

Lakme to Elle 18


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Stretching the BrandVertically

Understanding the terms:

Vertical stretch: Technically a Line extension since it is theintroduction of Price Variants of an existing Brand in theexisting Product Class

Stretching Up: Extending the Brand to a Higher PricedSegment

Eg: From Surf detergent 500g at Rs 43 to Surf Exceldetergent 500g at Rs 60

Stretching Down: Extending the brand to a Lower Priced

SegmentEg: From Ariel Washing Powder to Ariel Gain Washing PowderNote: Both products co-exist at 2 different Price Points

under the same brand


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Brand Stretch & MarketSegments

EXISTINGBRAND

STRETCHDOWN

STRETCHUP

Marke

t

Poten

tial

Bran

d

Imag

e


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Brand Extension Horizons

Line ExtensionHorizon 1

Brand ExtensionHorizon 2

Brand ExtensionHorizon 1


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Effect of Brand Extensions

More Good: Extension enhancesBrand name.

Good: Extension aids Brand Name

Bad: Extension fails to help BrandName

Ugly:Extension Damages Brand

Name

More Ugly: Brand Name is Forgone


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Post Mortem

Colgate Gel: More Good

Rexona Does: More Good

Close Up Whitening: Good or Bad ? (credibility?)

Amul Pizza : Good or Bad (price?)

Britannia Cheese, Ghee More Good

Sunsilk Hairoil : Bad (Identity or product?)

Diet Coke: Bad Good?? (Identity Marketevolution)

Frooti Apple Drink: Ugly (Identity?)


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Note

Good understanding of the BrandIdentity may or may not lead to the

Success of the Brand Extension.

But a poor understanding of Brand

Identity will definitely lead to thefailure of the Brand Extension &may also damage the existing Brand.


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Brand Revitalization

Inject life into a Mature Brand = Facelift

Enhance Brand equity: improvedrecognition, enhanced perceived value,

changed associations, an expandedconsumer base & or increased loyalty

Movement from milking Cash Cows to BrandRestage (External Stars), ina competitive

context

Recognition of the Power of Old Brands vsthe Expense & Risk of Creating New Brands

Brand Revitalization/


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Brand Revitalization/Rejuvenation Efforts to extend

the Brand Life Cycle

SALES

TIME

PreventfurtherDecline,

retainsales

growth

Todays need:


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Today s need:Continuous Process of

Revitalization

Revitalization:

Starts at anearly stagebefore a brandshows a declinein Sales

Sale

s

Time


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Ways to Revitalize

IncreasedUsage

NewMarkets

Extensions

ObsolescingProduct

AugmentingProduct

Repositioning

NewUsers


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Increased Usage

Increased Salience: Dettol

Increased Frequency/Regular Use:Shampoos : Head & Shoulders,economy pack, travel pack

Incentives/Promotions: Filmfare,Frequent Flier Programs


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New Uses

New Gifting Solutions: Tiffanys &Cadburys

Festive Occasions: Asian Paints

Multiple Functional Uses: Milkmaidrecipes

Behavioral shifts: Moov Sprains toBack Aches


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New Markets

Redefine Target Segment: CadburysDairymilk Chocolates for Adults

Growth in new segments: PersonalComputers


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Repositioning the Brand

Image Upgrade: Philips Lets makethings Better

Revive Image: Lakme, Dettol

Change Association: Britanniafrom biscuits to healthy food


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Augmenting the Product

Packaging Upgrade: Crocin,Shampoo, fliptops

Product Upgrade: New improvedLux

Increased CustomerInvolvement: Wills & Cricket,

Sunsilk & Parlours, Surf & LaundryService


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Obsolescing the Product

Fashion Products: Colour cosmeticrange, Revlon, Designer Watches-

Titan

Technology Products: SonyMusic mobiles Windows

Dying Categories: Ponds vanishing

cream Oil Balanced Formula


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Restage Vs Re-engineer

Restage: Maintain the Star Status of a productthrough constant innovation & activity toCONTINUOUSLYenhance the brand equitysalience over a period of time

Re-engineer:To reinstate the Star Status of aCash Cow / Dog product. inputs risk. multiplechanges to be orchestrated in conjunction ..

Recognizing & Leveraging the core identity

b f d


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Remember If you dont,someone

else will

What Iodex did not do, Moov did.

What HMT did not do, Titan did.

What Indian Airlines did not do, JetAirways did.


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Brand Exercise

Develop a Benefit Ladder for the product Categorybased on Consumer needs / Motivation

Create a perceptual map for the leading 3-4 brandsin the Category

Outline the Brand Image (from consumer research& Brand Values assuming the role of the Company)

Give 3 possibilities of Brand extension, Lineextension and Brand Revitalization

Develop a brand Positioning Statement

Identify a consumer insight which you can use inyour communication

M ti ti P ti I


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Motivation Perception ImageInsight. Question Bank

1. How would you describe Hit as a person vs Raid vsBaygon?

2. Imagine 10 years from now, where would you see thesepeople (individually)

3. Can you describe their family members

4. Which animal would you associate with the followingbrands?

5. Which Car would you associate with eash of the abovebrands?

6. Which celebrity / sport person would you associate witheach of the above brands?

7. Which kind of person do you think will use the abovebrands?

7761872 Brand Concepts Strategy 091117060738 Phpapp02

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