Brand Kya Hota Hai?

• You & Me

• Anything that has a NAME, SIGN, SYMBOL

which has a set of associations related to it

• Origin: Brandr
Brand ki zaroorat kya thi?

• One Consumer

• One Need

• MANY PRODUCTS

• Kiss ko choose karun -- Confusion!

Ek Friday. Doh Filmein!

• Comedy vs. Comedy

• Two Star vs. Two Star

• Govinda vs. Tushar Kapoor

• Which one will you go for?

• Brand Govinda: Comedy Associations

Brand has…

• Name, Symbol or Logo

• Brand Purpose: Positioning

• Values & Personality: Image

• Bundle of Benefits: Promise

Consumer: Value Maximiser

• Brand: Biggest Value Driver!

• Cap – Rs. 50/-

• Cricket Team Cap – Rs. 500/-

• Team Cap used by Tendulkar – Rs. 5000/-

Brand Value…

IMAGE DRIVER

CONVENIENCE

RISK REDUCTION

PROMISE

MEANS OF IDENTIFICATION
Kya brand ho sakta hai?

• Gaadi

• Doodh

• Atta

• Namak

• Kya nahin brand ho sakta hai?

Brands kya reality mein
better hote hain?

• Is Mercedes the best car?

• Is IIM Ahmedabad the best b-school?

• Maybe, maybe not!

• Perception!
Sounds easy!

• One NIKE. 1000 FAILED NIKE!

• Biggest challenge for a Marketer

• 3C Challenge
– Cash
– Consistency
– Clutter
Brand Equity

Concept & Its Importance

The Challenge

 More Products
 More Competitors

 More Media

 Same Consumers

 Same Needs

 GROWTH MANTRA?
MANTRA #1

 Price

 Sales Promotions

 Price Wars

 Short-Term
Mantra #2

 Brand Building

 Distinctive

 Sustainable

 Long-Term
What is Brand Equity?

“BE is a set of brand assets / liabilities

linked to a brand, its name or symbol
that add to or subtract from the value
provided by a product or service to a
customer”
Components of Brand Equity

 Awareness: Name & Symbols

 Perceived Quality
 Brand Associations
 Brand Loyalty
 Other Proprietary Brand Assets
Awareness: Name & Symbols

 Recognised vs. Unknown Brand

 Familiarity drives perception
 Familiar = Reliable + Good Quality
 Unknown only a push option
Brand Associations

 People, situations, moods, needs that

consumers relate a brand to/with
 Helps the brand occupy a distinct
mindspace
 Drives purchase
Perceived Quality

 Consumers are not engineers!

 Quality is based on perception and
not specifications
 Brands drive perception of quality

 Perception drives purchase, premium

justification and ease of extension
Brand Loyalty

 Cost of acquiring new customers is 10

times the cost of retaining old ones!
 Products are non-living but brands aren’t

 Customers associate themselves with

brands (preservance/enhancement)
 Difficult to break-away to competition
Other Proprietary Assets

 Trademarks

 Patents

 Channel Relationships
 CBBE
Consumer Based Brand Equity
Case for Building a Brand
 Improved Product Perceptions
 Greater Loyalty
 Insulation from Competition
 Higher Margins
 Inelasticity to Price
 Cooperation from Channel
 Effective Marketing Communication
 Leverage through Extensions
Million Dollar Questions
 What makes a strong brand?

 How to build one?

The 4 Fundamental
Questions
 Who are you? (Brand Awareness)

 What do you do? (Brand Knowledge)

 What do I think about you? (Brand Attitude)

 What about you and me? (Brand Relationship)

Brand Awareness
 Recognition & Recall

 Depth: How easily do they recall?

 TOM: McDonald’s

 Breadth: In what all situations do they recall?

 Usage Occasions: Tropicana
Brand Knowledge
 Performance: Attributes & Benefits
 Ingredients: KFC
 Consistency: McDonald’s
 Durability: Tata
 Serviceability: Maruti
 Service Efficiency: Domino’s
 Style & Design: Swatch
 Imagery
 User Profile: Harley
 Usage Situation: I-Pill
 Personality: Tata
 Values & Beliefs: Johnie Walker
 Should be strong, favourable & unique
Brand Attitude
 What consumers think and feel about the
brand

 Brand Judgments: Opinion / Evaluation

 Brand Feelings: Emotional Responses / Reactions

Brand Attitude
 Brand Judgments
 Quality: Smirnoff
 Credibility: Apple
 Consideration: Sony
 Superiority: Intel
Brand Attitude
 Brand Feelings
 Warmth: Archies
 Fun: Disney
 Excitement: MTV
 Security: SBI
 Social Approval: Mercedes
 Self-Respect: RbK
Brand Relationship
 Association with the Brand

 Behavioral Loyalty: Fair & Lovely

 Attitudinal Attachment: Budweiser

 Sense of Community: Saab

 Active Engagement: Enfield

Term Project: Phase I
 Understand the Current CBBE amongst the
Target Market

 FGDs / DIs

 Users / Lapsers

 Define it as given in the subsequent slide

CBBE for Amazon
BRAND RELATION
Loyalty, Community,
Engagement

BRAND ATTITUDE
Smart Shopper
Good Value / Credibility

BRAND KNOWLEDGE
For Every Internet User
Conv., Variety, Low Prices

BRAND AWARENESS Books, Music & Videos

Defying Newton
What is a declining brand?
• A brand which has over a period of time been
losing both market share and mind share
amongst its target consumers
Top 10 Reasons for
Declining of Brands
Cause #1
• Decline in quality
– Cost-cutting (Maruti 800)
– Increasing volumes (IIMs)
– Relaxation in QC Measures (Café Coffee Day)
– Perceptual Decline: Price, Channel, Sensorials,
Advertising, Packaging
Cause #2
• Resistance to Change
– Product Oriented (Robin Blue)
– Need Oriented (Nirma Detergent)
– Consumer Oriented (Dabur Chavanprash)
• Why resistance?
– Investment
– Product Orientation
– Tried & Tested
– Complacency
Cause #3
• Single Product (Ambassador)
– No portfolio
– No extensions
• Problem?
– Visibility
– Stature
– Decline in segment
– Decline in product
Cause #4
• Excessive Pricing (Daewoo Cielo)
– Premium pricing
– High margins
– Entry of Competition
– Feeling of being cheated
– Private Labels
Cause #5
• Wrong extensions (Pune Mirror)
– Bad products
– Crowded categories
– Lower image products / segments
Cause #6
• Communication (Kelvinator)
– Low levels of communication
– Wrong message
– Low impact
– Brand Ambassador
– Production values
Cause #7
• Channel management (CrossWord)
– Attitude of Sales Team
– Margins
– No push
– Emergence of alternate channel
Cause #8
• Ageing (HMT Watches)
– Old age
– No makeover (Product / Communication)
– Perceived as ‘Not for me’
Cause #9
• Lack of differentiation (Acer Computers)
– Cluttered market
– No USP
– No competitive advantage
– ‘Me Too’ Branding
Cause #10
• Tough Consumer
– Less emotional
– Lowering levels of loyalty
– Flirtatious attitude
– More knowledge driven
– Connected via media
Exercise: Failed Indian Brands
• Weikfield Jelly
• Maruti Zen Estillo
• Yamaha RX-100
• Roohafza
• Margo Soap
• Kinetic Scooter
• Fiat (Ageing)
• Moti Soap
• Savlon
• Milkfood
Revitalising the Brand
Why revitalise?

 Brand still has high awareness

 Brand still has some values with consumer

 Product still selling

 Cost of building a new brand is far higher

Ways to Revitalise
#1: Increase Usage

 Getting existing customers to use more of

your product
 Frequency of Use (Shampoo)
 Reminder Communication
 Positioning for frequent use
 Make the use easier
 Provide incentives
 Reduce undesirable consequences of frequent use
 Use at different occasions
 #1: Increase Usage

 Getting existing customers to use more of your

product
 Quantity of Consumption (Chips)
 Incentives on high use
 Creating larger servings
 Removing undesirable consequences of high consumption
 Positive associations
#2: Finding New Uses
 Finding a new functional use for the brand
 Omni Cargo
 How to find new uses?
 Observe usage of current customers
 Sponsor new use contests
 Use of competition’s product
 When to adopt a new use?
 Potential market
 Feasibility & Cost
 Competitive reaction / takeover of the use
#3: Entering New Markets

 Move into a new market area having growth

potential

 New Segment (Pepsi A.M. / Bacardi Breezer)

 New Geography (Honda City / Gits)

#4: Repositioning the Brand

 Existing positioning not relevant

 Lacking appeal amongst TG

 Reposition the brand on a new platform

 Lifebuoy (Koi Darr Nahin)
 Fair & Lovely
#5: Augmenting the Product

 Providing features / services not expected by

the consumer
 Must be things the consumer values
 Linked to the product
 Drive consumer delight
 Nestle Coffee Shaker
 Titan Eye Free Eye Testing
#6: Obsoleting Existing
Products
 Kill the existing product and introduce a new
technologically advanced product
 Bajaj: Scooters to Motorcycles
 Gillette: Stainless Steel Blades
 Intel: Self Destruction
 Windows Vista: Windows 7
 Risky as there has been investment in the
existing product which will go waste
#7: Extending the Brand

 Take the brand into products which have a

brighter future
 Dettol Soap
 Mcdonald’s: Salads & Yoghurt
 Crest: Beyond cavities!
 Extension must be
 Relevant
 Sustainable
What if nothing works?
Option #1: Milking

 Minimising investments, maximising cash

flows
 Hold Milking Strategy: Pepsodent G
 Sufficient Investment

 Fast Milking Strategy: Ambassador

 Pulling out of investment
 Raising of prices in certain cases
Option #2: Divestment or
Liquidation
 Exit out of a brand
 HUL Denim
 Lee Cooper

 Last Resort
 Rapid sales decline
 Milking also unprofitable with price pressures
 Weak brand position
 Exit barriers can be overcome
Brand Extensions
Why? When? How?
What is a Brand Extension?
 Established brands are assets
 Marketers try and leverage these assets

 The process of using the brand name on

another product is known as extension
 Line Extensions (Lifebuoy Liquid Soap)
 Category Extensions (Nokia Laptops)
 Stretch Extensions (Intel Celeron)
Why Brand Extensions?
 New products a driver of growth for a company
 Developing and launching requires millions
 Yet 9 out of 10 new products FAIL
 Brand not launching new products are also at times
perceived as old and staid
 Overdependence on any one brand could be dangerous
 Parent brand may only appeal to a segment
 Brand is seen as boring and lacking variety
 Allows the competition to flank
Why Brand Extensions?

 Brand extensions helps cut down costs

 Also increases the chances of success as the consumer
already has a favourable image
 Rejuvenates parent brand
 Reduces overdependence on a single product
 Category/Stretch extensions help bring in new users
 Line extensions cater to different needs of segments or
provide variety to existing users
 Can also be a tool for blocking competition
How do consumers evaluate?
 Fit between Parent & Extension
 Fit in terms of ‘Core Differentiation’

 FIT: Coke & Diet Coke (Taste)

 MISFIT: Pepsi & Crystal Pepsi (Colour)

 Extension must remain true to the core

values of the parent brand
 How much to extend?
 Extend to the extent where there is an equal
borrow & build with the parent brand
 Harley: Clothing, Tatoos but not Energy Drink
 FAL: FAL for Men but not Perfect Radiance
 Pepsodent: Cavity, Plaque but not Fresh Breath
 Drivers
 Frame of Reference (McDonald’s – Fast Food)
 POD (Oral-B Toffee)
 RTB (Gits – Pasta)
Moving Down
 Why?
 Competition
 Private Labels

 Challenge
 Protecting the Brand
 Distinguish the Extension
 Sub-Branding
 Product
Moving Up
 Why?
 Potential User Base
 Higher Margins

 Challenge
 Managing Credibility
 Sub-Brand with a Descriptor (Kodak GOLD)
 Risks in Extension
 Line Extension: Overchoice & Confusion
 Dilution of Parent Equity: New Maggi, Coke Vanilla
 Use of Sub-Brand gives cushion: Sony Walkman
 Cannibalisation of Parent (Space & SOM)
Extensions in Portfolio

 Cannibalisation

 Distinct Role

 Incremental Share

 Different Needs
Key Questions
 Positioning of Parent Brand?
 What am I using from the positioning?

 Is that valued by the consumer in the new

category in which I am extending?
 Does the consumer see a connect with the
parent?
 What will be the impact on the parent?