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


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
Imagery





Ingredients: KFC
Consistency: McDonald’s
Durability: Tata
Serviceability: Maruti
Service Efficiency: Domino’s
Style & Design: Swatch
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





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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
BRAND ATTITUDE
BRAND KNOWLEDGE
BRAND AWARENESS
Loyalty, Community,
Engagement
Smart Shopper
Good Value / Credibility
For Every Internet User
Conv., Variety, Low Prices
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
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•
•
•
•
•
•
•
•
•
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)



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

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


How to find new uses?




Omni Cargo
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?

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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?






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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?

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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


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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



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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?