Customer Centered Brand Management HBR Case

1. Customer - Centered
Brand Management
Presented By:-
Ishant Mahajan
Sunil Goyal
Sarthak Gupta
Rishi Bhatia
Sarvesh Malhotra
Abhinav Juneja

2. WHAT DO THESE THINGS HAVE
IN COMMON?
The golden arches, the Nike
swoosh, and an apple icon?

3. What is a brand ?

4. Nissan Micra versus Renault Pulse

5. WHAT IS A BRAND ?
Brand is a consumer’s perception about the product that
gives a unique identity to the company’s products and
create emotional associations with consumers.
Al and Laura rise in “The 22 immutable laws of branding”
says:
“Branding “presells” the product or service to the user it is
simply more efficient way to sell things”.

6. Coke vs. Pepsi
In 'blind' taste tests, people prefer
the taste of Pepsi over the taste of
Coke. However, if the test is not
'blind' and the tasters know which
beverage is which, they prefer the
taste of Coke over Pepsi! That is
the emotional power of a brand.
The Coca-Cola brand has the
power to actually change an
individual's taste!

7. WHAT A BRAND MEANS TO
COMMON PERSON ?
A set of product perceptions by the consumer.
It is a personality developed over time.
A brand signifies a relationship with the customer.
It is the company’s most valuable asset. It’s also the main
differentiator, the best defense against price
competition, and the key to customer loyalty.
Competitors can copy your features and benefits, but
they can’t steal your brand.
It’s a promise.

8. Oldsmobile
• American car brand launched earlier than any other in
existence today
• 1988 ad campaign featuring the slogan, "This is not your
father's Oidsmobile.“
• 1990, ad campaign a new generation of olds.
• 2000, Oldsmobile's market share had sputtered to
1.6%, from 6.9% in 1985. And in December
2000, General Motors announced that the Oldsmobile
brand would be phased out.

9. IT'S OK, I'M WITH THE BRAND
• Courtesy of songwriter and performer George Clinton.
• Clinton in the 1970s sought the attention of two different
segments of record buyers-mainstream listeners, who liked vocal
soul music with horns, and progressive listeners, who liked
harder-edged funk.
• He made 2 different band names:
• Parliament, when the music was aimed at popular tastes.
• Funkadelic, when it was edgier.
• Both bands were very successful, even though some
Parliament fans would never listen to Funkadelic and vice
versa

10. ECONOMIES OF SCALE
• Shift to narrower and more numerous brands is difficult for
even the most astute marketers to accept.
• Unilever, for example, fought against market
fragmentation by instituting a brand consolidation
program in 1999. Its management eliminated hundreds of
brands in search of economies of scale.
• Among the discarded were such successful brands as
Elizabeth Arden cosmetics and the Diversey cleaning and
hygiene business.
• Five years later, Unilever's sales have stagnated, while
primary competitor Procter & Gamble, with its niche
branding strategy, has enjoyed healthy gains.

11. CUSTOMER EQUITY IS THE
POINT
• Companies geared today to
aggrandising their brand assuming
Sales will follow.
• Firms to be successful over time, should
maximize Customer Lifetime Value
• Companies must focus on Customer
Equity rather than Brand Equity.
• Our Attitude should be that Brands
come & go but Customers must
remain.

12. THE VALUE OF A BRAND
DEPENDS ON THE CUSTOMER
• Brand Value of a Brand is highly individualized.
• Most Marketing Managers measure Brand Equity with a
summary metric of brand strength.
• A perfect example of “Flaw of Averages”.
• Assigning an Average value to Brand Equity is Dangerous.
• Managers believe that Brand Value is Intrinsic.

13. PUT YOUR BRANDS IN THEIR PLACE
“IF U ACCEPT THAT THE GOAL OF
MANAGEMENT IS TO GROW
CUSTOMER EQUITY, NOT BRAND
VALUE, THEN YOU WILL LIKELY T
MANAGE YOUR BRANDS IN A
DIFFERENT WAY.”
There are seven directives that go against
the grain of current practice, They are:

14. 1. Make brand decisions subservient to decisions
about customer relationship.
 Strengthening the role of customer segment manager.
 Assigning managers to specific customers.
2. Build brands around customer segments, not
the other way around.
 Focus on the needs and requirements of a particular
customer segment.

15. 3. Make your brand as narrow as possible.
 The purpose of a brand here is to satisfy a small customer
segment as it is economically feasible.
4. Plan brand extensions based on customer
needs, not component similarities.
 It works well when customers are similar.

16. 5. Develop the capability and the mind-set to hand off
customers to other brands in the company.
 Future profits are driven not by repeat purchases of particular
product but by customer’s purchases across all brands.
6. Take no heroic measures.
 If brand managers control the resources they will persist too
long with a brand that has lost its punch.
 Retiring ineffective brands is easier to do if the marketing
resources of the firm are controlled by customer segment
managers.

17. 7. Change how you measure brand equity.
 Brand Equity is defined as the overall strength of the
brand in the market place and its value to the company
that owns it.
 Brand equity varies from customer to customer.
 The focus should be on :
 Brand awareness (advertisement in terms of
recognition & recall)
 Attitude towards the brand
 Brand ethics

18. BRAND EQUITY IN SCHEME OF THINGS
 Brand managers have long struggled to find the right
formula for measuring brand equity.
To measure brand equity, First, we must put it in the context
of customer equity. Second, we must recognize that it varies
by individual.
Let's start with the bottom line, which is customer equity, the
sum of the lifetime values of the firm's customers.
 As we know, a customer's lifetime value is driven by
choices, and those choices are driven by three considerations
i.e.
I. Quality,
II. Price,
III. Convenience

19.  Once the relative importance of brand equity is
established, the next challenge is to figure out what drives
brand equity in a particular company.
 These drivers include elements like consumer’s awareness of
the brand, their attitudes toward the brand, and their
perceptions of the company's ethics and corporate citizenship.
 The final step is to statistically link the customer equity drivers
to customer lifetime value-at the level of the individual
customer.

20. How Big
to
Brand?

21. When the company's mindsets change to consumers
Then the question arises
HOW BIG SHOULD THE BRAND BE?

22. • Customers taste and preferences changes from time to
time
• Customers as a individual has unique taste and desires
• Customers loot at brands to provide safety. Buying a
popular brands not only increases the customer’s trust
that the offering will perform but also contributes to the
customer social needs
• Like in the magazine industry ,first there was only general
magazines but nowadays there is a separate magazine for
each thing like life, health and fitness.

23. Overcome your blind spot

24. • People learning to drive quickly realize that they have a
vulnerable area where there vision is hindered
• In same way for many organizations, brand is one
those blind spots
• Marketing Executives must begin looking at the
problem of brand management more deliberately and
from customer from point of view.
• In customer centered organization, brands are
important, but its not all
• Therefore companies cant be structured, staffed and
motivated to grow brand.

25. Develop a competent cadre of customer
First Step segment managers
Second step Hand them the purse strings
Track and reward their progress using reliable
Third Step metrics for customer and brand equity