ALFRED NOBEL UNIVERSITY DNIPROPETROVS`K DEPARTMENT OF MARKETING

ALFRED NOBEL UNIVERSITY DNIPROPETROVS`K

DEPARTMENT OF MARKETING

BRANDING AS AN EFFECTIVE TECHNOLOGY OF GAINING AND RETAINING OF THE CUSTOMER

Dnipropetrovs`k 2014

Student gr. MG-09 (MS)Korsun O.VScientific supervisorPh.D. in Technical Sciences M.N. FesunLanguage consultantSenior LecturerN.V. Bespalova

… and no housekeeping pain!

Based on the «Biosphere corporation»BRAND «Freken BOK»

www.biosphere-corp.comwww.biosphere-corp.com

Purpose of the research: - to build the differentways to gain and retain the customers by improving thebrand «Freken BOK».

Tasks of the diploma research: • studying the essence of brand and branding;• analyzing the methods of measuring the level of customer`s loyalty; • conducting the SWOT analysis;• identifying the customer segments;• identifying the emotions that most affect our consumer audience;• developing the ways to gain and retain the customers by improving the

brand «Freken BOK»

The object of the research: - is the marketing activity of «Biosphere Corporation»;

The subject of the research:- is a branding of «Freken BOK»;

The novelty of the results: - the new ways of improvement of the brand «Freken BOK» are given in the conditions of strong competition at the Ukrainian market and unstable political and economical situation.


What is a brand?

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

It can be a logo, name, symbol or design – a brand creates a face value of a company in front of the world.

What is a branding?Branding is the art of becoming knowable, likable and trustable.

Branding – is an effective technology of gaining and retaining of the customer. A well-defined and strong brand will boost sales, attract new customers, create brand value, build customer loyalty and will be the catalyst for business growth.

To create and represent successful brands and products for house-keeping and personal hygiene that are high-quality, up-to-date, bring positive emotions, satisfy various consumers’ demands and tastes.

The mission of «Biosphere Corporation»

FIG.1 The geography of corporation «Biosphere»

Household market structure 2012 VS 2014

www.biosphere-corp.com

FIG.2 FIG.3Household market structure 2012 (%) Household market structure 2014 (%)


Sales of «Biosphere» Corporation for Ukrainian territory.

Table.1 Sales of «Biosphere» Corporation for Ukrainian territory 2002-2010 (%)


The brand «Freken BOK» is a well-known on the Ukrainian market. It was born in December 2001.

The slogan is – Freken BOK …and no housekeeping pain!

Category – Housekeeping products.

Product groups:

1. Garbage bags.2. Draw-string garbage bags.3. Kitchen sponges.4. Bath sponges.5. Cleaning cloths.6. Household latex gloves.7. Consumer alufoil, cling film, baking paper,etc.8. Toothpicks.9. Others


The Price Positioning of the brand

Поставщики оборудования – 21 компанииПоставщики готовой продукции– 25 компанийПоставщики сырья – 43 компаний

The Price Positioning of the brand - high quality, middle price segment.FIG.4 The competitive environment on different segments

High

Middle

Low


SWOT Analysis for «Biosphere Corporation»

Table.2 SWOT analysis for «Biosphere Corporation»

Strength Weaknesses 1. Brand power: Brand awareness, customer loyalty, clients loyalty

1. The Freken BOK products are not the essential goods and in the conditions of unstable economic the demand can fall

2. Powerful industrial base, the availability of new modern equipment that can reduce costs as a result of increased production

2. The cost price of the products depends on import of the raw materials, thereby due to the economical situation in the country it is necessary to increase the price

3. Guaranteed product quality

4. A wide range of goods

5.The recognition of the brand and image of the company attracts more loyal customers, which are highly susceptible to the overall impact

6. Strong distribution

Opportunities Threats1. A strong distribution gives us a chance to use a non-standard channels of sales

1. The reject of the customer from using the products or switching on lower cost product and non-brands.

2. In the conditions of low demand,the image of the brand allows us to retain the loyality of the customer.

2. The increase of sales of Privat Labels products

3. The operative realization of new projects

4. The invariable quality of the products, the observing quality standards beyond any circumstances

3. Due to the price politics of these product groups there is a high dependence from presentation in key retailers of Ukraine

5. The own production allows us to experiment with the assortment.

3. Loosing the wide presentation in key retailers .(The sales in a small outlets and in the alternative channels of sales, will not compensate the difference in profits.


SWOT Analysis for «Biosphere Corporation»

Table.3 The results of SWOT analysis for «Biosphere Corporation»

SO WOS1O1. The brand power and a strong distribution gives us a chance to gain new costumers through a non-standard channels of sales

W1O2. In the conditions of unstable economic the image of the brand will help us to increase the demand.

S6O5. A strong distribution can immediately deliver a new products around the country.

W2O5. The opportunity to think about the optimization of the assortment and on the widening of the own production.

S3O5. The guarantee of the high quailty of new products.

S2O5. Powerful industrial base, the availability of new modern equipment can reduce costs of new products

ST WT

S5T1. The loyality and the brand image will retain customers.W1T2. In the conditions of unstable economic the costumer can switch to a Privat Label products.

S3T1. The product quality can make costumer think before switching to lower cost product.

W2T1. The risk of loosing the costumer because of the high cost of the products. The costumer may swith to a lower cost product and non-brands.

S4T2. A wide range of goods and own industrial base gives us a chance to develop new products that Privat Labels do not have.

W3T3. Loosing the wide presentation in key retailers will make sales slump.

S5O3. The recognition of the brand and image of the company can attract more loyal customers and thanks to the operative realization of new projects to inform them about new products,promotions and benefits.

W3O1. Finding a new non-standart channels of sales.


The customer segment of «Freken BOK»

The emotional benefits of the brand «Freken BOK»

Comfort Home Easiness to

use


The level of customer loyalty to the brand «Freken BOK»

NPS (Net Promoter Score)

How likely is it that you'll recommend this product to a friend or colleague?

Promoters Responses from 9-10Passives Responses from 7-8Detractors Responses from 0 to 6

NPSPromoters 70 35%Passives 100 50%Detractors 30 15%

200 costumers

% NPS= 35%-15% = 20 %

NPS of the brand «Freken BOK» is 20.

Factors that influence recommendation of the brand: quality, previous experience of using and price.


Gaining and retaining the customers by entering the new retail

networks Table 4. Sales increase from the new retail outlets expansion


FIG.5 Sales increase of Freken BOK product from the new retailers expansion (UAH).

The results from entering new retail networks

FIG.7 Sales increase of Freken BOK product from the new retailers expansion (%).

FIG.6 Gaining of new costumers by entering the retailers (%).


The recommendations for improving the brand «Freken BOK»

The brand must achieve lasting emotional connection with the customer.

We must appeal to the next feelings of our consumers: - care; - comfort; - memories of childhood; - positive attitude/ fun; - kindness; - cleanliness; - relief; - satisfaction; - convenience; - joy; - credibility;

THANK YOU FOR YOUR ATTENTION!

ALFRED NOBEL UNIVERSITY DNIPROPETROVS`K DEPARTMENT OF MARKETING

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