Building brands

Contributed by members of www.mbaguys.net
Building brands

EXECUTIVE SUMMARY

“What’s in a name? A rose is a rose and would smell as sweet even if called by any other
name”

These famous words uttered by Shakespeare’s Juliet sends us into raptures, but marketers
and consumers would not respond to this reasoning favorably. Brands rule over the
marketer and consumers’ minds. Enormous resources, time and energy are spent in
building and nurturing brands. Why? A brand distinguishes the products and services
offered by one seller from another.

A company may be armed with all the statistics and facts as to why their product or
service is superior - but if it doesn’t have an image, a personality for the audience to
connect with - their message falls flat. What you are selling is always more than the
product/service. It's a personality, a face with which your target customers want to do
business. Thus, the success of branding lies in truly understanding who you are and who
your target audience is.

The cigarette brand Charms’ pack has a unique indigo blue print, like faded jeans fabric.
The package design was intended to strike a cord with young customers who identified
with ‘freedom’, because jeans symbolized freedom. Marketers use “slender tall” bottles
to communicate feminine qualities. What is an athletic shoe with a ‘swoosh’ logo on it?
‘Swoosh’ is a concept- it is all about winning and action.

Brands create a perception in the mind of the customer that there is no other product or
service on the market that is quite like yours. A brand promises to deliver value upon
which consumers and prospective purchasers can rely to be consistent over long periods
of time.

TY.BMS 1
Project source URL http://www.mbaguys.net/t642/

Building brands

CHAPTER 1

TY.BMS 2

Building brands

I TRODUCTIO

Branding today is a blend of art and science and the topic is of interest to both academics
and practitioners. Huge amount of money is being spent by marketers to develop brands,
with a conviction that brand building, will create brand differentiation. While the intrinsic
value with regard to functionality, is created by the marketer through the offering,
consumer psyche plays a vital role with regard to short and long term effects of brand
associations. Besides brand associations, cultural dimensions plays an important role with
regard to both branding associations and how consumer’s mind adapts to the
development of brand associations.

Take a look at the list below that shows the world’s top 10 brands in 2002 (as measured
by value):

1 Coca-Cola ($69.6)
2 Microsoft ($64.1)
3 IBM ($51.2)
4 GE ($41.3)
5 Intel ($30.9)
6 Nokia ($30.0)
7 Disney ($29.3)
8 McDonalds ($26.4)
9 Marlboro ($24.2)
10 Mercedes ($21.0)

Source: Interbrand; JP Morgan Chase, 2008

Why do companies such as Coca-Cola, Microsoft, IBM and Disney seem to achieve
global marketing success so easily? Why does it seem such an effort for others?

Why do we, as consumers, feel loyal to such brands that the mere sight of theirlogo has
us reaching into our pockets to buy their products?

TY.BMS 3

Building brands

1.1 The meaning of brands

Brands are a means of differentiating a company’s products and services from those of
its competitors.

There is plenty of evidence to prove that customers will pay a substantial price premium
for a good brand and remain loyal to that brand. It is important, therefore, to understand
what brands are and why they are important.

Macdonald sums this up nicely in the following quote emphasising the importance of
brands:

“…it is not factories that make profits, but relationships with customers, and it is
company and brand names which secure those relationships”

Businesses that invest in and sustain leading brands prosper whereas those that fail are
left to fight for the lower profits available in commodity markets.

A brand is a collection of images and ideas representing an economic producer; more
specifically, it refers to the descriptive verbal attributes and concrete symbols such as a
name, logo, slogan, and design scheme that convey the essence of a company, product or
service. Brand recognition and other reactions are created by the accumulation of
experiences with the specific product or service, both directly relating to its use, and
through the influence of advertising, design, and media commentary. A brand is a
symbolic embodiment of all the information connected to a company, product or service.
A brand serves to create associations and expectations among products made by a
producer. A brand often includes an explicit logo, fonts, color schemes, symbols and
sound which may be developed to represent implicit values, ideas, and even personality.
The key objective is to create a relationship of trust.

The brand, and "branding" and brand equity have become increasingly important
components of culture and the economy, now being described as "cultural accessories
and personal philosophies".

TY.BMS 4

Building brands

In non-commercial contexts, the marketing of entities which supply ideas or promises
rather than product and services (e.g. political parties or religious organizations) may also
be known as "branding".

One definition of a brand is as follows:

“A name, term, sign, symbol or design, or a combination of these, that is intended to
identify the goods and services of one business or group of businesses and to differentiate
them from those of competitors”.

Interbrand - a leading branding consultancy - define a brand in this way:

“A mixture of tangible and intangible attributes symbolised in a trademark, which, if
properly managed, creates influence and generates value”.

TY.BMS 5

Building brands

Three other important terms relating to brands should be defined at this stage:

Brand equity

“Brand equity” refers to the value of a brand. Brand equity is based on the extent to
which the brand has high brand loyalty, name awareness, perceived quality and strong
product associations. Brand equity also includes other “intangible” assets such as patents,
trademarks and channel relationships.

Brand image

“Brand image” refers to the set of beliefs that customers hold about a particular brand.
These are important to develop well since a negative brand image can be very difficult to
shake off.

Brand extension

“Brand extension” refers to the use of a successful brand name to launch a new or
modified product in a new market. Virgin is perhaps the best example of how brand
extension can be applied into quite diverse and distinct markets.

1.2 Brands and products

Brands are rarely developed in isolation. They normally fall within a business’ product
line or product group.

A product line is a group of brands that are closely related in terms of their functions and
the benefits they provide. A good example would be the range of desktop and laptop
computers manufactured by Dell.

A product mix relates to the total set of brands marketed by a business. A product mix
could, therefore, contain several or many product lines. The width of the product mix can
be measured by the number of product lines that a business offers.
TY.BMS 6

Building brands

For a good example, visit the web site of Hewlett-Packard (“HP”). HP has a broad
product mix that covers many segments of the personal and business computing market.
How many separate product lines can you spot from their web site?

Managing brands is a key part of the product strategy of any business, particularly those
operating in highly competitive consumer markets.

1.3 Types of brand

There are two main types of brand – manufacturer brands and own-label brands.

Manufacturer brands

Manufacturer brands are created by producers and bear their chosen brand name. The
producer is responsible for marketing the brand. The brand is owned by the producer.

By building their brand names, manufacturers can gain widespread distribution (for
example by retailers who want to sell the brand) and build customer loyalty (think about
the manufacturer brands that you feel “loyal” to).

Own label brands

Own-label brands are created and owned by businesses that operate in the distribution
channel – often referred to as “distributors”.

Often these distributors are retailers, but not exclusively. Sometimes the retailer’s entire
product range will be own-label. However, more often, the distributor will mix own-label
and manufacturers brands. The major supermarkets (e.g. Tesco, Asda, Sainsbury’s) are
excellent examples of this.

Own-label branding – if well carried out – can often offer the consumer excellent value
for money and provide the distributor with additional bargaining power when it comes to
negotiating prices and terms with manufacturer brands.

TY.BMS 7

Building brands

CHAPTER 2

TY.BMS 8

Building brands

2.1 Building brands

What factors are important in building brand value?

Professor David Jobber identifies seven main factors in building successful brands, as
illustrated in the diagram below:

Quality

Quality is a vital ingredient of a good brand. Remember the “core benefits” – the things
consumers expect. These must be delivered well, consistently. The branded washing
machine that leaks, or the training shoe that often falls apart when wet will never develop
brand equity.

Research confirms that, statistically, higher quality brands achieve a higher market share
and higher profitability that their inferior competitors.

TY.BMS 9

Building brands

Positioning

Positioning is about the position a brand occupies in a market in the minds of consumers.
Strong brands have a clear, often unique position in the target market.

Positioning can be achieved through several means, including brand name, image, service
standards, product guarantees, packaging and the way in which it is delivered. In fact,
successful positioning usually requires a combination of these things.

Repositioning

Repositioning occurs when a brand tries to change its market position to reflect a change
in consumer’s tastes. This is often required when a brand has become tired, perhaps
because its original market has matured or has gone into decline.

The repositioning of the Lucozade brand from a sweet drink for children to a leading
sports drink is one example. Another would be the changing styles of entertainers with
above-average longevity such as Kylie Minogue and Cliff Richard.

Communications

Communications also play a key role in building a successful brand. We suggested that
brand positioning is essentially about customer perceptions – with the objective to build a
clearly defined position in the minds of the target audience.

All elements of the promotional mix need to be used to develop and sustain customer
perceptions. Initially, the challenge is to build awareness, then to develop the brand
personality and reinforce the perception.

First-mover advantage

Business strategists often talk about first-mover advantage. In terms of brand
development, by “first-mover” they mean that it is possible for the first successful brand

TY.BMS 10

Building brands

in a market to create a clear positioning in the minds of target customers before the
competition enters the market. There is plenty of evidence to support this.

Think of some leading consumer product brands like Gillette, Coca Cola and Sellotape
that, in many ways, defined the markets they operate in and continue to lead. However,
being first into a market does not necessarily guarantee long-term success. Competitors –
drawn to the high growth and profit potential demonstrated by the “market-mover” – will
enter the market and copy the best elements of the leader’s brand (a good example is the
way that Body Shop developed the “ethical” personal care market but were soon facing
stiff competition from the major high street cosmetics retailers.

Long-term perspective

This leads onto another important factor in brand-building: the need to invest in the brand
over the long-term. Building customer awareness, communicating the brand’s message
and creating customer loyalty takes time. This means that management must “invest” in a
brand, perhaps at the expense of short-term profitability.

Internal marketing

Finally, management should ensure that the brand is marketed “internally” as well as
externally. By this we mean that the whole business should understand the brand values
and positioning. This is particularly important in service businesses where a critical part
of the brand value is the type and quality of service that a customer receives.

Think of the brands that you value in the restaurant, hotel and retail sectors. It is likely
that your favourite brands invest heavily in staff training so that the face-to-face contact
that you have with the brand helps secure your loyalty..

2.2 Brand extension and brand stretching

Marketers have long recognised that strong brand names that deliver higher sales and
profits (i.e. those that have brand equity) have the potential to work their magic on other
products.
TY.BMS 11

Building brands

The two options for doing this are usually called “brand extension” and “brand
stretching”.

Brand extension

1. Brand extension refers to the use of a successful brand name to launch a new or
modified product in a same broad market.
2. A successful brand helps a company enter new product categories more easily.
3. For example, Fairy (owned by Unilever) was extended from a washing up liquid
brand to become a washing powder brand too.
4. The Lucozade brand has undergone a very successful brand extension from children’s
health drink to an energy drink and sports drink.

Brand stretching

Brand stretching refers to the use of an established brand name for products in unrelated
markets.

For example the move by Yamaha (originally a Japanese manufacturer of motorbikes)
into branded hi-fi equipment, pianos and sports equipment.

When done successfully, brand extension can have several advantages:

1. Distributors may perceive there is less risk with a new product if it carries a familiar
brand name. If a new food product carries the Heinz brand, it is likely that customers
will buy it
2. Customers will associate the quality of the established brand name with the new
product. They will be more likely to trust the new product.
3. The new product will attract quicker customer awareness and willingness to trial or
sample the product
4. Promotional launch costs (particularly advertising) are likely to be substantially
lower.

TY.BMS 12

Building brands

2.3 Why should businesses try to build their brands?

There are many advantages to businesses that build successful brands. These include:

1. Higher prices
2. Higher profit margins
3. Better distribution
4. Customer loyalty

Businesses that operate successful brands are also much more likely to enjoy higher
profits.

A brand is created by augmenting a core product with distinctive values that distinguish it
from the competition. This is the process of creating brand value.

All products have a series of “core benefits” – benefits that are delivered to all
consumers. For example:

1. Watches tell the time
2. CD-players play CD’s
3. Toothpaste helps prevent tooth decay
4. Garages dispense petrol.

Consumers are rarely prepared to pay a premium for products or services that simply
deliver core benefits – they are the expected elements of that justify a core price.

Successful brands are those that deliver added value in addition to the core benefits.

These added values enable the brand to differentiate itself from the competition. When
done well, the customer recognises the added value in an augmented product and chooses
that brand in preference.

TY.BMS 13

Building brands

For example, a consumer may be looking for reassurance or a guarantee of quality in a
situation where he or she is unsure about what to buy. A brand like Mercedes, Sony or
Microsoft can offer this reassurance or guarantee.

Alternatively, the consumer may be looking for the brand to add meaning to his or her
life in terms of lifestyle or personal image. Brands such as Nike, Porsche or Timberland
do this.

A brand can usefully be represented in the classic “fried-egg” format shown below,
where the brand is shown to have core features that are surrounded (or “augmented”) by
less tangible features.

TY.BMS 14

Building brands

CHAPTER 3

TY.BMS 15

Building brands

Market

Across the Indian sub-continent scores of grandma
recipes are available for just about everything. The more
everyday a problem the greater is the profusion in which
they can be found. Cuts, nicks and bruises are possibly
the most common situations people are confronted with.
From potions, to earth, to sand, to leaves, to juices -
remedies come in all medium. Band-Aid, was the first
brand that took on the challenge of changing the Indian
consumer mindset that believed in treating a wound with
local help or just leaving it open to heal on its own.
Today, after 40 years in the market, Band-Aid has
become a byword for a product that not only covers but
also heals and protects cuts, scrapes, wounds and bruises.
Figures show that the product is an undisputed leader in the Indian market for adhesive
bandages with 59% share in terms of volume and 61% in terms of value (Source: ORG
2002). A study conducted by Usage & Attiude (U&A) in 1999 shows that 94% of
consumers have used Band-Aid at least once.

One of the key factors responsible for its mass appeal lies in Johnson & Johnson's (J&J)
extensive breadth of distribution. Available in more than 770,000 outlets across the
country, Band-Aid is within reach of just about any one - even in the remotest corners of
India. This is a product that has created its own market and has continuously extended it
by making appropriate changes in the offerings. In a fine example of marketing insight,
Band-Aid captured the focus of the product: the area of application. It realised that most
people don't like to waste a longer strip to cover a small wound. This is the reason why
Band-Aid is available in not just varying sizes but also in varying shapes: strips, patches

TY.BMS 16

Building brands

and spots. In a further display of rare intuitiveness, the bandage became wash proof, and
then followed up with a turmeric version, in response to the centuries-old Indian belief in
the curative power of turmeric.

Achievements

J&J achieved a breakthrough in the domestic market by responding to the Indian
fascination with 'lal dawa' (the red medicine), which typically, is a bottle of tincture
iodine (red in colour) kept in most homes. Band-Aid became popular in India as the 'lal
dawa wali patti', a term which turned out to be its USP, making the bandage a household
name.The introduction of Band-Aid Washproof in the 1980s was a landmark in
delivering a superior product and an even more significant consumer benefit of 'staying
on even in water'.

Apart from product innovations, J&J India is known for its zeal to develop eco-friendly
processes that use biodegradable raw materials and reduce solvent emission in the
environment. J&J India introduced Band-Aid in a user-friendly, cold seal-based primary
packaging - a technology developed for the first time in India.

History

Band-Aid's story dates back to 1920. In a way, it was a newly wed housewife named
Josephine Dickson who was responsible for its invention. Her husband, Earle Dickson,
was a cotton buyer at J&J. Josephine could hardly manage making dinner for Earle
without having several cuts or burns on her fingers. Without an adhesive bandage, she
had no easy way of covering her own cuts. Initially, Earle cut pieces of adhesive tape and
cotton gauze and made a bandage for each wound. This happened day after day after day.
Finally, after several weeks, of kitchen accidents, Earle hit upon an idea.

He sat down and prepared some ready-made bandages by placing squares of cotton gauze
at intervals along an adhesive strip and covering them with crinoline. Now all Josephine
had to do was cut off a length of the strip and wrap it over her wound. Earle told his boss
at work about his new invention and soon the first adhesive bandages were being

TY.BMS 17

Building brands

produced and sold under the world famous Band-Aid trademark. Earle was eventually
rewarded with a position as Vice President in the company, where he stayed until his
retirement.

Band-Aid bandages made their first appearance on the market in 1921. Made by hand,
they were three inches wide and eighteen inches long, and did not exactly take the
market by storm.

In 1924, J&J introduced the first machine-made adhesive bandages that were completely
sterilised. In a couple of years, the product took on a momentum of its own. The
subsequent decades saw frequent innovations and modifications to the original product
until it reached a critical mass in both the US and other world markets. Although it was
already an established global brand before it was launched in India, Band-Aid had to
fight for its rightful place in the country, where people believed in leaving wounds open
or tying them with a cloth, or at best, applying some liquids - even ink.

Product

Band-Aid is available in three variants: fabric
(also called regular), washproof and turmeric.
The key differentiating factor in the case of
the first two is the material of the dressing.
Band-Aid fabric constitutes the bulk of the
total sales. The turmeric-medicated pad
provides the unique properties of turmeric to
heal wounds and is priced at par with the
fabric variant. The two major selling variants
also come in different shapes like spots and
patches to suit different wound positions,
sizes and shapes.

Band-Aid is the world's first medicated dressing containing Benzalkonium, which kills
germs and prevents their growth. It is gentle on the skin and acts as a cleansing agent. It

TY.BMS 18

Building brands

is known to stay on firmly on the wound, enhancing notions of long-lasting protection. It
is the only sterilised medicated dressing in India. Each Band-Aid strip comes in a unique
easy peel packaging, which is the only one of its kind in the category.

Recent Developments

J&J has been growing the brand through innovations in market promotion and
advertising. In 2003, it made Virender Sehwag, one of India's brightest new performers in
the game of cricket, its brand ambassador.This brought in an all-new visibility to the
brand. Innovative promotional activities like the 'Sehwag Game Book' offer became a
must-buy for young cricket fans. Efforts like loyalty programmes for major wholesalers
have been a big success, with the number of participants rising every year.

The brand has launched a new campaign with the theme of 'Continuous Care', which
underlines the fact that unlike other treatments medicated dressing continues to work on
your wound and stays on till it is healed.

The battle over consumers' minds is still not over. Although Band-Aid has established
and strengthened its reputation, there is a subliminal belief that all adhesive strips are the
same in terms of final effect on the wound. Locally made low-priced products, pushed by
traders, pose a major challenge. While tactical responses to such developments will be
one of the preferred options, Band-Aid, like ever before, will take the time-tested
strategic route of constantly innovating and upgrading the product range besides
launching new variants. This is the route that has always differentiated its products from
the rest and helped maintain its market leadership.

Promotion

Launched in India in 1978, Band-Aid was the first player in the adhesive bandages
category to air a TV commercial. The challenge was to grow the brand as well as lead in
category develop-ment.

TY.BMS 19

Building brands

The initial communication was aimed at mothers, with the promise of a 'superior and
convenient protection for wounds'. It focussed on the red pad and the J&J heritage. In an
attempt to heighten the emotional appeal of the brand across the children's segment - its
largest user base - Band-Aid developed a new communication in the mid 1990s, stressing
on the innate desire of the child to be active. In essence, Band-Aid was the child's
supporter of non-stop fun.

2003 was also the year of the Cricket World Cup and for a nation obsessed with cricket,
having a brand endorsed by a leading cricketer was a tactical advantage. Virender
Sehwag, chosen as Band-Aid's brand ambassador, symbolised the very essence of what
the product stood for: solid, gritty and with a never-say-die attitude under any
circumstance. This tie-up kicked off a series of contests and promotions that included a
special edition pack featuring the explosive cricketer.

Over the years, the challenge for commu-nication has been to shift from passive
protection to active healing. Band-Aid needed to signal efficacy, demonstrate its
'medicinal side' and shift its discourse without losing its core values. The Band-Aid
Goldfish campaign, launched in 2000, was a real clutter-breaking advertisement, which
elevated the awareness of washproof to new heights. Since early 2003, the brand, with its
new campaign of ‘Continuous Care’, has tried to reposition itself among the target
audience. The simple theme is that unlike antiseptic liquids and creams, which wear off
after the initial effect, Band-Aid works on the wound non-stop. Therefore, the core value
of the brand – ceaseless supervision – is emphatically stated in the baseline “Iska asar
lagatar”. The Kids Snapshot film is based on this thought.

Brand Values

It is one of those classic cases of a new product category becoming a generic brand name.
The abiding theme is ‘first aid’ for small cuts and wounds, with people reaching for
Band-Aid the moment they experience a small cut or wound. Consumers firmly believe
that the brand has knowledge and expertise in wound care. Band-Aid took the concept of
aid to greater heights through the washproof variant. While it was innovative as a

TY.BMS 20

Building brands

product, the theme was helping people stay active, in whatever they had to do. A strong
brand becomes a word in consumers’ minds. People don't say they need an adhesive
bandage, they say they need a Band-Aid.

Things you didn't know about
Band-Aid

1. Over one hundred billion Band-Aid adhesive bandages have been made to date.
2. About one million Band-Aid strips, patches and spots are manufactured each day.
3. Sachin Tendulkar’s first product endorsement was for Band-Aid.
4. Parents of young babies tape Band-Aid around their thumbs to prevent them from
getting into the habit of thumb-sucking.
5. J&J India has developed an indigenous assembly to fabricate Band-Aid dressing
that can not only detect defects but also separate them on line at high speed.

TY.BMS 21

Building brands

Market

People have worn shoes through much of human history, but organised shoe
manufacturing is a relatively young industry in most countries. In India, the credit for this
achievement undoubtedly belongs to Bata.

The company has been manufacturing shoes, ‘of choice’ since the 1930s for successive
generations of Indians.

The Indian shoe market is dynamic. Its production capacity is second only to China. The
IMAGES Retail Report in 2002 estimated the market size at Rs. 93 billion. With the rise
of the premium segment, the footwear industry that has traditionally been price driven is
slowly becoming a quality and fashion conscious market. Bata strides both ends of this
spectrum, and all that comes in between.

TY.BMS 22

Building brands

Bata India Limited has established itself as one of Asia’s largest footwear manufacturing
companies. It has a 35% to 40% market share of the sales reported by shoe-manufacturers
belonging to the organised sector. Of total sales inclusive of the unorganised sector
manufacturing – which dominates the footwear market in India – Bata’s share is around
8.5%. Almost 97% of the company’s revenue is from the domestic market while the rest
is from exports. Bata currently sells over 70 million pairs of shoes annually, and in 2002,
it had an annual turnover of Rs. 6.94 billion.

Achievements

By the time Bata had come to India in 1931 it was already recognised as a leading shoe
brand. Its manufacturing and marketing operations have heralded the rise and the
development of a modern footwear industry in India. Before Bata, footwear was
produced primarily in the handicrafts and small enterprise segments.

Bata, over the decades, has used the ‘current knowledge’ from its international
experience to create adaptive and innovative baseline standards for the shoe businesses in
India. This philosophy of Bata has enabled many of its initiatives and products to become
commonplace in the Indian market over the decades; so much so that everybody takes
their indigenous origin for granted.

One illustrious story in this regard is the famous ‘Hawai’ class of rubber slippers that
were originally introduced by Bata in India in the early 1950s. This was a low-priced
footwear aimed at a market that covered the rural, semi-urban and urban populations.
With 95% in market share in the low-priced category ‘Hawai’ was an instant hit. Today,
the ‘Hawai’ brand has become generic for like kinds of rubber slippers, the biggest by
volume in Indian shoe industry. Other offerings by Bata India have similarly gone on to
become icons of the office footwear, casual and sporty footwear, and shoes for school
going children. The brand straddles all product and price points in the Indian shoe
market. There are 1,600 Bata outlets spread across the country. 1,100 of these are directly
owned by Bata and account for over 60% of its sales. In addition, Bata's products are also
sold through 30,000 multi-brand stores. This retail network is unmatched by any rival in

TY.BMS 23

Building brands

the business and is a key factor in Bata’s vision and ability to reinvent itself when faced
with competition and challenges in this dynamic industry.

As a good corporate citizen, Bata has developed a high value of commitment to the
environment, setting an example for the entire leather industry in India.

History
The Bata Shoe Organisation was founded in August 1894, by Tomas Bata, in Zlin; a
small town in the erstwhile nation of Czechoslovakia (present day Czech Republic). In
less than two decades, this company was identified with expertise in mass
manufacturing of footwear.Today, it is the undisputed global leader in the footwear
industry, with its products having a significant share of the world shoe market.

The Bata Shoe Company was set up initially as a small operation in Konnagar (near
Calcutta) in 1931. In January 1934, it acquired a plot of 155 acres from the Calcutta Port
Trust and from adjacent landowners. The foundation stone for the first building of Bata’s
operation – now called the Bata Clinic – was laid on October 28th 1934. In the years that
followed, the overall site was doubled in area. This township is popularly known as
Batanagar.

It was also the first manufacturing facility in the Indian shoe industry to receive the ISO:
9001 certification. Meanwhile, Bata has also created four other large-sized manufacturing
plants in different parts of the country

Bata produces almost 60% of its footwear in-house. The rest is outsourced to other
manufacturing units who have to meet the strict quality standards set by the company.

Product

Bata's products meet the entire range of footwear demands of its customers. The brand
has a long established reputation for reliability, quality, as well as being part of
contemporary fashion trends in footwear. Almost all products offered by Bata have gone
onto become icons for specific segments for millions of satisfied customers. Among the

TY.BMS 24

Building brands

notable success stories in this regard are Ambassador, the classic dress shoes for men;
Power, the sports footwear functionally designed for casual athletes; Mocassino, the
comfortable leather formals; and Hush Puppies, which are among the world's most
comfortable shoes in the premium segment. Bata has also enjoyed great success with
Marie Claire, the range of fashion shoes in vibrant colours for women, Bubblegummers,
the fun footwear range exclusively for children, Sandak, the leading plastic all-weather
footwear range, and Bata Industrials, the industrial and factory footwear that offers great
comfort with the highest safety standards.

Recent Developments

Bata keeps reinvigorating its business with innovative technology and the strengthening
of its distribution network. It has created new technology shoes under the 'Bata Tech'
brand. This collection of technology shoes includes Wind, Antishox, Flexible and
Comfort. Wind has an in-built air circulation system that allows the feet to 'breathe' and
hence ensures freshness for as long as the footwear is worn. Flexible is probably the most
'bendable' footwear in the market, with a unique arch-grip system based on the science of
reflexology. Antishox has an in-built impact-free zone that absorbs any shock
experienced by feet while walking. Comfort is specially directed at women and comes
with a unique gel pad that provides an easier walking experience. Towards increasing its
offerings for women, Bata has also introduced the Azaléiá range in the upper premium
segment.

Customers have always identified Bata with the unique identity of its retail stores. The
frontal layout of white and red creates instant brand-connect and has become ubiquitously
present in commercial shopping complexes in most Indian cities and towns. The brand
has revamped its retail practices to facilitate better choice and easier segmentation and
offer a better shopping experience. Bata's flagship stores are directed at the premium top-
end segment, with a luxurious ambience. These also stock some of world's other top-of-
the-line brands including Lotto, Reebok, Nike and Dr. Scholls. City stores are located in
metropolitan as well as semi-metropolitan locations catering to middle and high-income
groups in these areas. Family stores are based at commercial locations displaying basic

TY.BMS 25

Building brands

and middle-range footwear. Factory outlets are aimed at driving volume sales at lower
price-points.

Promotion

Bata's product range offers style, elegance, and durability but at the same time it is
affordable for million of Indians. Affordability and dependability are the two most
important elements of the brand Bata. Bata's promotions and advertisements have
leveraged those two key factors. In the early 1990s, for instance, Bata came up with a
winning promotion titled

'Superhit Price Range', aggressively pushing its affordability. 'Back to school' has been
another successful Bata campaign. Some of the most famous public icons and
personalities have associated with Bata. The brand has built an enviable reputation for
spotting charismatic talent in its promotions. In recent years, some of the most glamorous
Indian women such as Ravina Tandon, Rani Mukerji, Bipasha Basu, Celina Jaitley have
chosen to endorse the Bata brand at the very beginning of their careers as dream sellers in
advertising and cinema. Through their endorsements, Bata is seen to be respected, trendy,
cosmopolitan, modern, stylish, admirable and innovative. Celebrity cricketers - among
them Kapil Dev and Ravi Shastri - promoted the Power brand, highlighting the brand's
association with power, aggression and performance.

Brand Values
The Bata brand evokes deep-rooted trust among customers. It has been a household
name in India for several decades, and has kept meeting every variety of footwear
demands among Indian customers. Bata aims to provide shoes of choice to its
customers for every step in their lives. The brand aims to have explicit leadership in the
Indian footwear market by offering the best in product, value-for-money, sales locations
and customer service. It has recorded remarkable success and longevity on most of
these counts. That is why Bata is rated one of the top ten Indian brands (Source: A&M
international edition, February 15th, 2002 - India's Top Brands). Bata was voted 'The
Most Admired Footwear Company' at the Images Fashion Awards 2003.

TY.BMS 26

Building brands

Bata

1. Since it was founded on August 24th 1894 Bata has sold more than 14 billion pairs of
shoes - more than the number of pairs of feet that have walked the earth during that
time.
2. Laid end to end, the shoes Bata has sold would cover a distance greater than 30 times
the distance between the earth and the moon.
3. Bata founder, Tomas Bata, was a ninth generation shoemaker determined to become
the 'King of Shoemakers'. This perhaps explains why the numeral '9' appears in all
Bata pricing.
4. In 1894, at age eighteen, Tomas Bata broke away from his father.
5. In 1896, Tomas Bata made his first shoe 'SEGALKY" - a light textile shoe with
leather soles. The shoe weighed half as much and cost one-quarter or so less than the
then current styles.

TY.BMS 27

Building brands

Market

Baking practices were well known to Indian cuisine for
thousands of years, but the humble biscuit became a
familiar and commonplace item of diet only during the
20th century. The products and marketing strategies of
India’s premier food company Britannia Industries

Limited over the last century have been responsible for this
remarkable dietary acculturation.

The entire biscuits’ market is estimated to be 1.1 million
tonnes per annum, and valued at over Rs. 50 billion.

The biscuits segment enjoys one of the most developed markets for any item of mass
consumption, covering over 90 per cent of the overall potential market. This implies that
over 900 million Indians buy and eat biscuits, with

varying frequency in any year. The market is highly competitive at the supply-side, with
thousands of small-scale manufacturers as well as others in the organised, large-scale
sector.

The strength of the Britannia brand is demonstrated by the fact that it stands far above all

in this fiercely competitive market, with over 46 per cent market share, by value (Source:
ACNielsen ORG-MARG 2003).

TY.BMS 28

Building brands

Achievements

Britannia is synonymous with the rise and growth of the biscuit industry in India.
Throughout this process it has displayed an uncanny intuition about emerging popular
tastes for biscuits. This foresight, coupled with the will to innovate and evolve new
products, has been the impetus that has propelled the Britannia brand ahead of the rest.
Being the market leader, Britannia Industries operates under an underlying principle of
setting its own rules and standards that have almost always become the adopted paradigm
for the entire biscuit industry.

It brought the health dimension to an industry that was traditionally driven by taste alone.
This is reflected in Britannia’s brand slogan, introduced in 1997 that exhorted consumers
to ‘Eat Healthy, Think Better’. This was quickly embraced by the entire industry to come
up with similar promotional campaigns showing biscuits to be an epitome of a healthy,
happy diet.

Going beyond biscuits has been the most difficult challenge and a litmus test for the
company. Britannia entered the dairy category with the launch of Britannia Milkman
range of dairy products. With the success of Britannia Milkman Cheese, it achieved a
niche for itself in a category that was defined by a competitor that had created the
category.

Britannia’s products retail in over 2 million outlets (Source: ACNielsen ORG-MARG,
2003), selling approximately 200 million packs a month. With millions of happy
consumers every month, Britannia is considered to be one of the most trusted food brands
in India (Source: ET Brand Equity Study, 2003). Britannia has also successively made
the Forbes List of 200 Best Small Companies in the world for the years 1999, 2000 and
2002.

History

Started way back in 1892 with an investment of Rs. 295, biscuits were manufactured in a
small house in central Kolkata. Later, the business was acquired by the Gupta brothers

TY.BMS 29

Building brands

and operated under the name of V.S. Brothers. In 1918, C H Holmes, an English
businessman in Kolkata was taken as a partner and ‘The Britannia Biscuit Company
Limited (BBCo)’ was launched. The Mumbai factory was setup in 1924 and Peak Freans,
UK acquired a controlling interest in BBCo. Biscuits were in big demand during World
War II, which gave a fillip to the company’s sales. BBCo celebrated its golden jubilee in
1968 and the company name was changed to the current Britannia Industries Limited in
1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder. Ten years
later in 1992, Britannia Industries Limited celebrated its platinum jubilee. The following
year, the Wadia Group acquired a stake in ABIL, UK and became an equal partner with
Groúpe Danone in Britannia Industries Limited.

Product

Britannia has restructured its portfolio of products at regular intervals, to constantly
redefine and strengthen the Indian biscuit market. This strategy has enabled it to serve the
key needs of the Indian consumer across age groups and diverse consumption situations,
through an optimum range of brands. The success of this strategy enabled Britannia to
reduce the number of focus-brands from 24 in 1998, to nine in 2001.

All its product offerings derive their premium qualities from the principles of health and
taste. This key premise has led to the evolution of a lifetime menu where a Britannia
product exists for every stage in a person’s life. The highest consumption group for
biscuits are children; here Britannia offers Milk Bikis with all the ‘goodness of milk’
required by younger kids, while the Tiger brand is aimed at 7-14 year olds and provides
them with the exuberant health required by ‘winners of tomorrow’. Another offering for
children – Treat, a range of delicious cream biscuits – is meant as a treat for children
during fun times.

A particularly notable success has been Little Hearts, meant for teenagers and kids, which
has completely dispelled an erstwhile industry axiom that this target group did not snack
on sweet biscuits.

TY.BMS 30

Building brands

Moving on to other age groups, Britannia created 50-50 as a biscuit snack for young
adults with its sweet-salty duality. The savoury Time Pass brand is targetted at the same
age group as well. Britannia MarieGold, is a venerated tea-time offering that is 'packed
with wheat energy' and has found much favour with health conscious urban adults. Good
Day, a cookie filled with rich ingredients is a healthy everyday treat for the entire family.
Britannia has a range of bread and cakes entrenched in the fresh bakery segment. These
products allow the consumers to interact with the brand more often and maintain
continuity of the taste-with-health promise.

Recent Developments

A new initiative taken by Britannia, to cater to all the taste fads of the consumer, seeks to
widen the range of its snack foods. This will be Britannia's biggest challenge in the next
few years. Meanwhile in existing categories of biscuits and baked products, innovation
will be the key principle.

A host of new flavours and food-formats, as never seen before in the Indian market, are
due to enter the market in 2004. Thus, Britannia will continue to define the Indian market
in biscuits and other food products.

Promotion

The role of promotions for Britannia is especially important in this highly fragmented and
competitive market. Today, the company prides itself on communication that is
innovative, yet constantly able to strike a chord in the consumers' hearts and minds.
Britannia's promotions have virtually redefined consumer expectations from this
category.

To reach out to the Indian consumer, Britannia has successfully leveraged India's two
prime passions - cricket and movies. Britannia addressed these platforms in a manner true
to its unique innovative style. It capitalised on every Indian's dream to watch a cricket
World Cup match and created the 'Britannia Khao, World Cup Jao' contest in 1999. It
based itself on instant gratification. All the consumer needed to do was buy packs of

TY.BMS 31

Building brands

Britannia biscuits, scratch a lucky card and win an all-expenses paid trip to England to
watch a World Cup match. This promotion was so successful that it set a trend that has
got every company scrambling for tickets to take their consumers for the World Cup.
This promotion was repeated successfully in 2002/03 with the destination of choice being
South Africa. Taking the success further was the promotion of 'Britannia Khao, Cricketer
Ban Jao' that was fuelled by the need of every Indian to be a part of the passion called
cricket. Britannia followed it up with another unique promotion, a vehicle that dealt with
India's other passion - movies.

A promotion called 'Britannia Lagaan Match' that revolved around a movie called Lagaan
was based on a cricket match. This promotion gave the consumer a chance to interact
with the film stars and also get to play cricket with them. The match had over 40,000
spectators and made the headlines of leading newspapers and news channels.

Britannia promotions have proved to the marketing world that promotions per se need not
be only tactical but could also be strategic - used as a tool to further brand equity.
Britannia advertising has distinguished itself from competition in terms of imagery and
recall value. The innovation of such communication was exemplified through the launch
of Britannia's salt-sweet biscuit. The brand name was 50-50 and the consumer was never
told upfront that the product was salt-sweet. But by just allowing the consumer to
decipher the message himself, the company was able to draw the consumer closer and
distinguish the offering from competition.

Brand Values
The Britannia brand is all about eating healthy, to lead a better life. It advocates values
that stand for health, hygiene, family, trust and taste. It reflects the strong link between
physical and mental well-being, that is so important to a person, and is typically a result
of what one eats.

Today, Britannia, driven by a passion for excellence, manifested by its innovative
thinking, has been able to weave itself into the fabric of the consumer's everyday life.
While Britannia strives to give consumers a healthier life, the consumer on the other

TY.BMS 32

Building brands

hand, has come to expect innovation from Britannia's offerings - a huge challenge for
the company.

Britannia

1. Britannia products are sold in over 2 million outlets, reaching millions of consumers
who buy approximately 2.4 billion packs each year.
2. A small army keeps Britannia going - over 100 stock-keeping units, 3,000 employees,
over 1,500 authorised whole sellers, 53 depots and 46 factories.The number of
biscuits produced by Britannia in one year, would be the equivalent of one pack of 12
biscuits for every two people in the world.
3. Stacked on top of each other, all Britannia biscuits sold in a year would stand 10,000
times taller than Mount Everest.
4. Britannia has had a long association with cricket and cricket players. Nearly half the
members of the current Indian cricket team serve as its brand ambassadors.
5. Launched in 1997, Tiger became the largest selling Britannia biscuit brand in just 4
months of launch. It crossed the Rs. 1 billion sales mark in its very first year and is
growing stronger.

TY.BMS 33

Building brands

Market

One of the most fiercely competitive markets in India is the soap category. There are
scores of brands – national, regional, rural – that are vying for the attention of India's
1,100 million users.

For an Indian brand, to survive and prosper in a complex, multinational-dominated
market doesn't just require staying power; it requires panache. Over the years, soap
brands have proliferated in large numbers in the Indian marketplace, competing for the
minds and budgets of increasingly fickle consumers.

It is in this extremely demanding and cut-throat market that the 52-year-old Cinthol – the
flagship brand of Godrej Consumer Products Ltd. – has not just survived, but prospered.
Obviously, with huge income disparities, buying power determines the brand of choice.
In a market, therefore, ranging from the urban very rich to the rural very poor, there are
soaps that fill each of the niche needs of audiences in every socio-economic strata.

Today, despite the presence of global corporations, the Cinthol brand has carved out a
consumer base of more than 17 million users (Source: NRS 2002). The soap market in
India is determined to be of the order of Rs. 41.75 billion (Source: ACNielsen - RSA
2003) and Cinthol commands a turnover of Rs 1.05 billion (2003/04) with a market share
of 2.5% by value (Source: ACNielsen - RSA 2003).

Achievements

When needs change, brands need to change as well, to remain contemporary and
desirable. Cinthol has kept pace with evolving markets. It has reinvented and re-jigged its
portfolio without compromising on its core values. Today, Cinthol has entrenched itself

TY.BMS 34

Building brands

firmly in well-defined niches that fulfil expectations of the modern consumers' needs.
One of the hallmarks of Cinthol's marketing strategy has been that the brand has not been
afraid to try new things. In its earliest years when the entire world was using soaps made
from animal fats, Godrej bucked the trend by formulating a soap manufactured from
vegetable oils.

It was a fine example of a company having the courage to back its convictions. This
strength has helped Cinthol find slots across a broad spectrum of users. Cinthol
Deodorant & Complexion soap, for instance, has not just found acceptance amongst
normal consumers but even with doctors who recommend it to patients with skin
disorders. Along with deodorancy and freshness, it also assures overall skin health by
helping remove blemishes and improving complexion. It is very satisfying for a brand to
discover that when loyal users travel abroad they often carry several packs of Cinthol
with them.

History

The early 1900s was a heady time. A single man had sparked the desire of Indians to be
free from colonial rule. Sentiments and tempers ran in tandem. Religious fervour was at
its peak. Ardeshir Godrej, a lawyer by profession and a man steeped in principles and
ideology, made a telling contribution. He created India's first toilet soap made from
indigenously available vegetable oils instead of imported animal fats. This move won the
support of the leaders of the Indian Independence Movement. Socially, too, a vegetable
oil based soap made more sense since it factored in religious sentiments.

The mantle passed on to his nephew, Dr. Burjor Godrej, who was himself a qualified
mechanical engineer, with a prestigious doctorate in technical chemistry. At that time
scientists were frustrated by the fact that while germ-killing ingredients were effective in
antiseptics they were unsuitable for use in soaps. The discovery of Hexachlorophene
changed all that. The chemical proved to be stable when used in the manufacture of
soaps. This led to the birth and launch of Cinthol Deodorant & Complexion soap on

TY.BMS 35

Building brands

Independence Day of 1952. Enriched with a unique fougere perfume the reception that
the soap received was truly phenomenal.

Over the first three decades of its existence, the brand took the platform of protection
from body odour. But the markets were gradually changing. In 1986, in an attempt to
modernise the image, 'New Cinthol' soap was launched with a new-look packaging, shape
and advertising, using celebrities like Vinod Khanna and Imran Khan. The
communication campaigns developed strong, confident and active associations with
Cinthol- attributes that went on to become an essential part of the brand imagery.

In 1989, in an attempt to capture a share of the lime soap market, Cinthol Lime was
launched. The attempt to capture a segment of this developing market was a resounding
success: it grabbed 8% market share in six months. In 1992, Cinthol Cologne was
launched to extend the brand franchise into a modern and new fragrance.

By 1993, Godrej realised that it had to re-jig the brands to keep pace with the changing
environment. The three variants that had been launched post 1986 were brought under the
Cinthol International umbrella – Cinthol International Spice, Cinthol International Lime
and Cinthol International Cologne.

A complete positioning overhaul was undertaken between 1993 and 1995. Shah Rukh
Khan became the brand's new icon. His panache matched the brand's new platform:
revitalising and re-energising. With the launch of Cinthol Fresh in 1995, the brand was
extended into the popular segment as the first popular segment lime soap. It was a
runaway success. It was redefined as a family soap with the famous 'Tan taaza, man
taaza' campaign in 2000.

2004 saw the launch of the new variant Cinthol Deo Soap, with the baseline ‘Get Ready
Get Close’ to communicate its positioning. It addresses the need for effective body odour
removal through the unique proposition of deodorant in a soap.

TY.BMS 36

Building brands

Product

Today in the market, Cinthol has three distinct variants, borne out of market needs and
consumer studies. Cinthol Deodorant & Complexion soap continues to operate in the
'healthy skin' category. The soap offers numerous 'do-good' benefits such as total and
complete skin protection.

Cinthol Lime Fresh is a strong player in the 'freshness' category. The lime extract
provides deep cleansing properties and the excellent long-lasting lime fragrance keeps
one feeling fresh.

Cinthol Deo Soap is the latest offering from the Godrej stables. This new soap-on-the-
block is aimed at satisfying a latent problem: hesitation to get close because of body
odour. It has a unique long lasting deo formula that prevents body odour all day long. It
comes in two exciting fragrances: Cologne and Spice that keep the user feeling fresh all
day. Each of these sub-brands has helped extend the durability and youthfulness of the
mother brand.

Recent Developments

Leveraging Cinthol's brand equity, Godrej Consumer Products Ltd. has forayed into other
categories including Talcum Powders (Cinthol International Deodorant Talc and Cinthol
Freshness Talc) and Deo Spray (Cinthol International Perfumed Deodorant). Also, in
keeping with its tradition of providing modern, convenience products to discerning
consumers, the company has launched Cinthol Hand Sanitizers.

Sanitizers fulfil the needs of health conscious consumers on the move. Available in
sandal, lime, spice and cologne variants, they ensure germ-free hands, without having to
use soap, water or towel. The product was launched in August 2000 in West Asia. In
2003, the sanitizers were exported to the Far East, when the SARS outbreak increased
consumer concerns about hygiene.

TY.BMS 37

Building brands

Promotion

Cinthol has been closely identified with innovation, which reflects in its promotions too.
It was the first brand in its category to come up with creative offers: gold coins/pendants
in a soap. was also one of the first brands to realise that consumers were increasingly
looking for value-for-money products. Responding to this finding Cinthol was the first
soap to come up with the consumer offer: Buy 3 Get 1 Free.

Cinthol advertising has always had a strong impact, with all the elements being carefully
chosen to reflect aspects intrinsic to the brand. No wonder then, the commercials
featuring Vinod Khanna, Imran Khan etc. during the 1980s and early 1990s are vividly
recalled even today.

In his heydays, Imran Khan's star power was unquestionable. The charisma of the young,
handsome Pathan – the heartthrob of a million girls – splashing water and using Cinthol
International soap quickly rubbed off on the brand. The energy and confidence that the
film exuded were closely connected to the properties of the soap. Through the clutter,
Cinthol rose in the desirability index.

The Vinod Khanna film was shot when the actor was at his peak. The commercial
showing the star riding a horse on the beach exuding vigour and confidence with the
waves of the sea in the background depicted an innate, natural freshness. Vinod Khanna
and Cinthol proved to be a perfect match. Even today, years after the commercials have
been withdrawn, they continue to be recalled. The latest advertising campaigns continue
to build on the Cinthol legacy.

The Montage film for Cinthol Deodorant & Complexion soap targets audiences in the
priority markets of South India. This is one soap that has appealed to different age groups
of both sexes. The current advertising reinforces this bond and the fact that Cinthol has
provided skin protection over the years.

The 'Taazgi ka tarana' commercial for Cinthol Lime Fresh is based on the key insight that
a bath is more than just a cleansing process. It is the time when they rejuvenate

TY.BMS 38

Building brands

themselves. The ad promotes the latest baseline of the brand ‘Get Ready’ depicting the
transformation of a woman in her bath.

The Cinthol Deo Soap commercial has the protagonist joining his friends for a game of
tug of war after work. He has no hesitation in getting close to them even at the end of a
working day. This is because his Cinthol Deo Soap keeps body odour at bay all day long,
leaving him confident and smelling great.

Brand Values

Ever since its launch in 1952, Cinthol has been the perfect embodiment of the expression
'confidence personified'. All the campaigns for different variants have captured the subtle
changes in the brand values without straying away from the brand essence: Confidence
and Freshness. These core values have a strong appeal and relevance to both sexes.
Hence over the last couple of years, Cinthol has been repositioned on a unisex platform to
target both men and women.

It has always closely monitored consumer behaviour, changing attitudes and has
tweaked the positioning to suit these emerging needs. All of this has resulted in a brand
that has not aged but grown into an active, vibrant and energetic personality.After 52
years, Cinthol, remarkably still evokes a very high degree of trust and respect.

Cinthol

1. The name Cinthol is derived from Synthetic Phenol: Synth+ol.
2. The name Godrej is derived from Guderz – an important tribe in Iran.
3. Cinthol Deo & Complexion Soap has remained unchanged in design, perfume, shape
and packaging since its launch in 1952. Briefly replaced in 1986 it was brought back
to its original form in the face of popular demand. The brand boasts of a string of
strong loyalists who have stuck to it over decades making it one of the few brands to
span generations in a household.

TY.BMS 39

Building brands

4. All variants in the Cinthol stable are full Total Fatty Matter (TFM ) soaps (76%-
79%).
5. Cinthol boasts of all its variants being classified as Grade I soaps by the Bureau of
Indian Standards.
6. Cinthol launched Bipasha Basu when it sponsored the Supermodel contest in 1996. It
catapulted Bipasha Basu into limelight – and into stardom.

TY.BMS 40

Building brands

Market

The history of iodised, vacuum-evaporated, packaged salt in
India began with Tata Salt back in 1983. This pioneering brand
created a market for high-quality branded salt in the country,
and defined the attributes that consumers now demand in the
product. By highlighting factors such as hygienic production,
purity, nutrition, and salt as a soldier in the battle against
iodine deficiency, Tata Salt sowed the seeds of, and set the
standards for, a new category in the food additives segment.

The market for pre-packaged iodised salt in India is
estimated to be worth Rs. 10 billion, with Tata Salt
commanding a sales share of Rs 2.1 billion or 21% of the
market. According to the latest IRS data (2003/04) Tata Salt
ranks number one in reach to households in urban India and
number three on an all-India basis, with a penetration of
more than 53 million Indian households every month. Tata
Salt sells a monthly average 35,000 metric tonnes of its
product through 1,280,000 retail outlets (Source: ORG-
MARG Project Premium, March 2004).

A survey conducted across the country's urban centres showed that 90% of respondents
had tried Tata Salt at least once (Source: ACNielsen Brand Track 2002/03). This is the
highest for the category and ahead of the brand's nearest competitor by a factor of nearly
two.

TY.BMS 41

Building brands

Achievements

Tata Salt fashioned a market where none had existed and
capitalised on its first-mover advantage by first

establishing a leadership position and then consolidating it.
The brand has stayed ahead of the competition despite a
plethora of players - mighty multinationals and domestic giants
included - entering the field and challenging it for shelf space
and market share.

ACNielsen ranked Tata Salt as the Most Trusted Food Brand,
being first in its listing of the 20 Most Trusted Food Brands in
India and

placed it eighteenth globally in its Winning Brands Global Database (2002/03). On the
ACNielsen-Brand Equity scale, Tata Salt has maintained a rating of between 6.5 (in
2003/04) and 7.2 (in 2002/03), which is at least twice as much as its closest competitor.

Tata Salt has the unique distinction of being the only Indian brand to figure for two
consecutive years in The Economic Times Brand Equity-ORG-MARG survey of the Top
10 Most Trusted Brands in India. In the 2002 edition of the survey, which identifies
India's 100 most trusted brands, Tata Salt was

ranked fourth and in the following year it came in sixth. This success is remarkable given
that salt has all along been a commodity.

History

Tata Salt is manufactured by Tata Chemicals, a valued member of the Tata Group and
India's largest producer of soda ash. The company's turnover for the financial year ended
March 2003 was Rs. 17.07 billion, with net profits of Rs. 1.97 billion. Tata Salt is
produced at the Tata Chemicals facility in Mithapur on the Western coast of Gujarat. The

TY.BMS 42

Building brands

salt-making plant is part of an inorganic chemicals complex which is the largest and most
integrated in India.

Tata Chemicals, which was founded in 1939, developed a salt works at its Mithapur
complex in 1979. Four years later the company launched Tata Salt. The Mithapur salt
works are spread over 60 sq km and can generate over two million tonnes of solar salt,
the starting raw material for almost all the 27 basic chemicals that the company
manufactures.

Mithapur, the city of salt, is the mother of India's heavy chemical industry. The quest
for a salt plant began before the Tatas came on the scene. In the late 1920s, Kapil Ram
Vakil, a chemical engineer who had studied at Manchester University, established the
Okhamandal Salt Works. He later set up a soda ash plant at the site. Salt and salt-based
products were then the virtual monopoly of foreign companies, which imported
ordinary salt from Aden for India's consumption.

After a survey of the Western coast, Vakil decided on a point seven miles from Okha,
the Western-most tip of India, where the Arabian Sea meets the Rann of Kutch. But he
could not bear the financial burden of running the plant for long and approached the
Tatas. The then Maharaja of Baroda, Sayaji Rao, in whose territory Mithapur fell, also
wrote to the Tatas suggesting that they might like to assist with this national project.
The Tatas saw the potential of the industry and agreed to supplement Vakil's efforts
with their resources and know-how.

Product
Tata Chemicals' technologically advanced production processes ensure that Tata Salt
reaches consumers in the purest possible form. It is manufactured by evaporating sea
brine in steam-heated vacuum evaporators and is almost completely free from
extraneous matter. Tata Salt has a fine crystalline structure, dissolves very quickly and
is fully sterilised.

Tata Salt has all the good qualities of traditional salt: it is an essential nutrient, it
enhances and accentuates the flavour of vegetables and meats and it protects food safety

TY.BMS 43

Building brands

by retarding the growth of micro-organisms. Additionally, Tata Salt plays an important
role in India's public health campaign against iodine-deficiency disorders.

Recent Developments

During 2002/03, Tata Salt took on an aggressive approach in branding, packaging, sales
marketing and

supply-chain management. As a result, the brand has not only achieved primacy of
position and mind share, but has also grown in volumes. This has helped Tata Salt
improve sales despite operating in a tight market.

The new initiatives have helped Tata Salt reach a record market share of 41% in the
national branded salt segment, against 23% for its nearest competitor (Source: ORG-
MARG, March 2004), and

TY.BMS 44

Building brands

have enabled the brand to make light of aggressive retail pricing by rivals, negative
market trends, increases in freight cost and an overall decline in the market.

Improving the communities in which it operates has been a cornerstone of the Tata
Chemicals culture of business. This is in keeping with the social development philosophy
of the Tata Group. Tata Salt has been playing a key role in sustaining and furthering this
article of faith. Since 2002 it has been running the ‘Desh ko arpan’ programme, under
which – during specific months of the year – a small percentage of the money that
accrues from the sale of every Tata Salt packet is set aside to help disadvantaged
children. Thanks to this programme, 25,000 children across ten states in India have been
provided with a year’s education.

Promotion

In late 2001 and early 2002, a clutch of players, both domestic and multinational, entered
the branded salt market. Their marketing tactics were aggressive, their packaging was
colourful and their advertising was high decibel. Tata Salt went head-to-head with the
competition and, backed by market research, prescient promotions and the in-built
qualities of the product itself, succeeded not only in protecting its turf, but also enhancing
it.

Consumer research done by Tata Chemicals in June 2002 revealed that consumers were
feeling a deep and latent insecurity that the social fabric of the times was being tested and
that corruption was eating into India’s values. The research pointed to a well of
patriotism and loyalty that could be tapped.

Seizing the initiative at a time of diminished brand differentiation, declining allegiances
and shrinking consumer expenditure, Tata Salt associated itself with an immediately
identifiable, universal theme: remaining true to one’s salt and to one’s country.

That was the idea behind the memorable tagline of the subsequent advertising campaign
– ‘Maine desh ka namak khaya hai’ (loosely translated as ‘I believe in honesty because I

TY.BMS 45

Building brands

owe my allegiance to my nation’). The campaign made heroes of common consumers
while employing deep-rooted local idioms woven around the salt motif.

In a tribute to the vast number of ordinary consumers who use Tata Salt, the new
advertising campaign featured the simple, everyday integrity and honesty of common
Indians. These were stand-up people who rendered crucial service, silently. Reinforcing
the imagery was a series of product commercials, which supported the key qualities of
purity, saltiness and the values inherent in Tata Salt.

The campaign, which began airing on August 14th 2002, the eve of India’s
Independence Day, went straight to the country’s heart. Consumers rated the entire
series of commercials high on persuasion, lack of clutter, integrity and nationalism.

The campaign was backed by new packaging that had a delightfully refreshing look,
which was accentuated by the use of an enticing food visual. To reassure the consumer,
the pack retained the strong values associated with the Tata name. Specialised edible
and industrial salt marketing teams were set up, and a full-fledged sales and marketing
infrastructure with regional teams helped convert the campaign’s popularity into higher
volumes.

Brand Values
Tata Salt’s greatest strength as a brand is derived from its association with trust. In
India, salt and integrity have a connection that stretches back to a time much before
Tata Salt was born. Tata Salt’s communication platform of trustworthiness has a strong
resonance with its parent, the Tata Group, which has built its equity on the concept of
leadership with trust.

Tata Salt has drawn on India’s rich relationship with salt to deliver a product that
embodies reliability, honesty and credibility, qualities that emanate from the Tata creed
of business. The trustworthiness synonymous with the Tata name has helped Tata Salt
build a constituency of consumers who have consistently rated it ahead of every other
competitive brand in the marketplace.

TY.BMS 46

Building brands

Tata Salt

1. More than thirteen packets of Tata Salt are consumed every second.
2. Over 53 million households use Tata Salt each month.
3. Mithapur, the location of the Tata Salt plant, is so environment friendly that it has a
bird sanctuary where migratory birds fly in from Europe and elsewhere to nest.
4. Under Tata Salt’s ‘Desh ko arpan’ programme, which is aimed at helping
underprivileged children, over Rs. 11 million was collected and given to Child Relief
and You, a non-governmental organisation that works with poor kids.

TY.BMS 47

Building brands

CO CLUSIO
A brand is a name, term, sign, symbol, or design, or some combination of these elements,
intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors. The different components of a brand. Brand
names, logos, symbols, package designs, and so on are brand elements.

Brands offer a number of benefits to customers and firms. Brands are valuable intangible
assets that need to be managed carefully. The key to branding is that consumers perceive
differences among brands in a product category.

Brands can play a number of different roles within the brand portfolio. Brands may
expand coverage, provide protection, extend an image, or fulfill a variety of other roles
for the Firm. Each brand name product must have a well-defined positioning. In that way,
brands can maximize coverage and minimize overlap and thus optimize the portfolio.

The starting point in the brand game is the product. How is it different from other
products in the crowded market place? The answer would be firstly to look after
USP(Unique selling proposition) and to think simple but powerful brand name inorder to
catch customer as such brand name that could be easily remember by the consumer like
Amul , parle products , bisleri , Liberty shoes that create distinct image in customers
mind .

Secondly to segment the market as per demographic in order to classify market and
customer and to fulfill different customer needs and expectations.

Thirdly to move the product from generic to a brand through skillful manipulation of the
4p’s and blend them with current additional 4p’s as per market and situation .

Fourthly to choose a proper media mix like advertisement ,personal selling, sales
promotion and also to choose proper media channel as per demographic pattern to reach
each and every customers .

TY.BMS 48

Building brands

Fifth would be to choose proper communication media like T.V , newspaper , radio .
Sixth would be segment the market and customers as per region ,state , national ,
international markets .Seventh is to position the brand properly in to these condition and
to make promise to customers to giving promising product as per their expectation with
proper pricing strategy ,product as per quality . Eight is to make promise to customers to
fulfill all their needs ,expectations .

Ninth is to create brand image by keeping promising product available in the market with
stable and regular supply. To come up with new idea about product and create a brand
with distinct and different product range and maintain quality like jumboking , Amul ,
Maggi . Tenth to innovate the product idea by adapting all these strategys . Brands are not
immortal as they are vanished with lack of marketing mix and lack of maintaining proper
marketing strategy .

There is no room for complacency in today’s market scenario. The challenge lies not only
in becoming successful but also in staying successful.

TY.BMS 49

Building brands

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Building brands

Ähnlich wie Building brands (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Building brands