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7761872 Brand Concepts Strategy

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7761872 Brand Concepts Strategy

  1. 1. Brand Concepts & Strategy IGTC 2003
  2. 2. Structure <ul><li>What is a Brand?…. Product vs Brand </li></ul><ul><li>Brand Identity … Developing a Brand Framework </li></ul><ul><li>Brand Strategies … Extension & Revitalization </li></ul>
  3. 3. What is a Brand?
  4. 4. Essence of a Brand : Aaker <ul><li>“ A company’s brand is the primary source of its competitive advantage and a valuable strategic asset.” </li></ul><ul><li>“ The challenge for all brands is that they have distinct clear image that matters to customers and truly differentiates from the rest.” </li></ul><ul><li>The key step is to create a broad band vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed. </li></ul>
  5. 5. Product vs B rand <ul><li>A product is made in a factory… A Brand is bought by the customer. </li></ul><ul><li>A Product can be copied… A brand is unique </li></ul><ul><li>A Product is quickly outdated…A Brand is Timeless </li></ul>
  6. 6. Product vs Brand <ul><li>Brands differentiate Products </li></ul><ul><li>Fairness Creams: Fair & Lovely vs Ponds Dream Fairness </li></ul><ul><li>Coconut Hair Oil: Parachute vs Dabur Vatika </li></ul><ul><li>Cola: Coca Cola vs Pepsi </li></ul><ul><li>Products largely undifferentiated: Product choice function of Convenience / Availability / Price. </li></ul><ul><li>Petrol : BPCL vs IBP vs …. </li></ul><ul><li>ATM : HDFC vs HSBC vs …. </li></ul><ul><li>Mineral Water : Bisleri vs Bailey vs Kinley … </li></ul>
  7. 7. Product Levels : Kotler <ul><li>Core Product : Core Benefit or service </li></ul><ul><li>Tangible Product : Brand Name, Packaging, Features, Quality, Styling </li></ul><ul><li>Augmented Product : After sale service, Installation, Delivery & credit, Warranty </li></ul><ul><li>Eg: Consumer Goods … Products extending Services … Asian Paints: Painting Homes; Surf: Laundry </li></ul>
  8. 8. Brand Image vs Brand Associations vs Brand Personality <ul><li>Brand Association </li></ul><ul><li>Personality Based on: </li></ul><ul><li>Expression of self or User Imagery </li></ul><ul><li>Eg: Nike – Achivement Performance </li></ul><ul><li>User/Customer – Brand Relationship Eg: McDonalds- Fun Family </li></ul><ul><li>Functional Benefit – Association Based Eg: Gujarat Ambuja- Strong Man </li></ul>
  9. 9. Identity vs Image Brand Image Consumer Market, Competition, Media Brand Identity Noise Strategic Vision, Business Needs Corporate
  10. 10. What is Brand Identity? <ul><li>Simply put: What does a Brand stand for? </li></ul><ul><li>Heart and Soul of the Brand: Brand Constitution, Brand Framework </li></ul><ul><li>Provides Strategic Vision – Direction, meaning, purpose to the brand </li></ul><ul><li>Combination of Brand Vision, Purpose, Values & Associations </li></ul><ul><li>“… is a set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the Brand stands for and imply a promise to customers from the organization members” - Aaker </li></ul>
  11. 11. What is not Brand Identity : Traps <ul><li>Brand Image Trap: Eg: Denim: Macho </li></ul><ul><ul><li>Based on consumer perception. Tactical, Reactive </li></ul></ul><ul><ul><li>Lacks Strategic Future Perspective </li></ul></ul><ul><li>Brand Position Trap: Eg: Elle 18 : Teenagers </li></ul><ul><ul><li>Based on Competitive Advantage. Relates to current market scenario, consumer needs. Communication captures only a particular aspect of the Brand </li></ul></ul><ul><ul><li>Limited Scope. May not be applicable in the Future </li></ul></ul><ul><li>External Perspective Trap: Eg: Tata: Trusted Quality </li></ul><ul><ul><li>Customer centric, lacks employee buy-in </li></ul></ul><ul><li>Product –Attribute Fixation Trap: Eg: Britannia Biscuits </li></ul><ul><ul><li>Based on Product Attributes, Product Benefits </li></ul></ul><ul><ul><li>Limits the expansion of the Brand... Open to threat as it equates the Product to the Brand </li></ul></ul>
  12. 12. Brand Concepts Brand Image , Personalities, Associations BRAND Brand Framework Product Framework PRODUCT/S What it does? RECEIVER SENDER How it does?
  13. 13. How? – Strategic Brand Analysis <ul><li>Processes: Semiotics- Image Study: Factor Analysis- Attribute Rating, Perceptual Map, Cluster Analysis- Profiling </li></ul>Consumer Company Competitor Image Needs Trends Performance Image Heritage SWOT Relationships Image Positioning Communication SWOT
  14. 14. Brand Identity Systems: Aaker <ul><ul><ul><ul><li>Brand as an ORGANISATION </li></ul></ul></ul></ul><ul><ul><ul><ul><li> Extended Identity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brand as Brand as </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PRODUCT PERSON </li></ul></ul></ul></ul><ul><ul><ul><ul><li> (Peripheral Support Values) </li></ul></ul></ul></ul><ul><ul><ul><ul><li> Brand as Symbol </li></ul></ul></ul></ul>SUPPPORT VALUE PROPOSITION Functional + Emotional + Self Expressive Benefits Core Identity
  15. 15. <ul><ul><ul><ul><li>Efficient Service, Hygienic, Clean , Smart </li></ul></ul></ul></ul><ul><ul><ul><ul><li> Service </li></ul></ul></ul></ul><ul><ul><ul><ul><li> American Ronald </li></ul></ul></ul></ul><ul><ul><ul><ul><li> Fun </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Ronald, Happy Meals, Parties </li></ul></ul></ul></ul>Tasty, VFM Burgers, Fries & Drinks Create environment to provide fun & entertainment For family and kids VFM, Hygiene, Happy Family McDonald’s Brand Identity System VFM, Tasty, Quality, Burgers & Fries, Happy Meal Promos Fun, Happy, Friendly, Family, Warm, Outgoing Ronald, Happy Meals. Clean Environment, Efficient Srvice
  16. 16. <ul><li>Guides Brand Strategy </li></ul><ul><li>Strengthens Brand Memorability, Communication, Associations </li></ul><ul><li>Provides Brand Extension possibilities </li></ul><ul><li>Assists Portfolio Reorganization </li></ul><ul><li>Improves Competitive Advantage </li></ul><ul><li>Adds Value to organization – Market Value </li></ul><ul><li>Gives a sense of direction to employee </li></ul>Why ? – Leveraging Brand Identity
  17. 17. When? – Change vs Consistency <ul><li>Need to change Identity Position Communication: </li></ul><ul><ul><li>Poorly Conceived Mismatch: Digen Verma </li></ul></ul><ul><ul><li>Obsolete: Philips… Innovation </li></ul></ul><ul><ul><li>Shrinking Audience: Ponds … Oil Control </li></ul></ul><ul><ul><li>Not Contemporary: Lakme… Fashion </li></ul></ul><ul><ul><li>Fatigue: Britannia… Health & Nutrition … Intelligence </li></ul></ul>
  18. 18. Need For Consistency <ul><li>Brand Building takes time: </li></ul><ul><ul><li>Amul girl & Utterly Butterly Delicious Amul </li></ul></ul><ul><ul><li>Marlbro Rough Cowboy </li></ul></ul><ul><li>Results in Cost Efficiencies </li></ul><ul><li>Organizational Pressures to change: </li></ul><ul><ul><li>“ Change” a solution to all problems </li></ul></ul><ul><ul><li>“ Facelift” to fight Boredom </li></ul></ul><ul><ul><li>“ Self-Promotion” </li></ul></ul>
  19. 19. BRAND-WAGON <ul><li>BRAND </li></ul><ul><li>ENGINE </li></ul><ul><li>BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEGY </li></ul>Business Potential Brand Value Segmentation Target Positioning Marketing Mix Product/Pkg Price Place Promotion Mktg Plan Sales Plan
  20. 20. Brand Strategies To Fuel the Brand Engine <ul><li>Strategy 1:- Extension- Giving birth to new product brands </li></ul><ul><li>Strategy 2 :- Revitalization- Injecting life to the existing brand </li></ul><ul><li>Revitalization:- Injecting life to same brand, energizing a mature brand </li></ul><ul><li>Need to inject life into the Mature Brand </li></ul><ul><li>“ Facelift” … Recharging the Brand Batteries </li></ul>
  21. 21. Brand Decisions: Leveraging Brand Identity <ul><li>Brand Extension Strategy </li></ul><ul><li>Brand Revitalization / “Restage” </li></ul>
  22. 22. Simply Put… <ul><li>Brand Identity: What does a Brand mean / stand for </li></ul><ul><li>Brand Extension: What would you like (enjoy, love, admire) the brand to do for you. </li></ul><ul><li>Brand Revitalization: How would you like to see the Brand tomorrow (Future Expectations). </li></ul><ul><li>Brand System / Architecture: What are the important Relations that the Brand has </li></ul><ul><li>Brand Limitations: What would you dislike (hate, anger, shame) the Brand to do. </li></ul>
  23. 23. Brand Extension Strategy
  24. 24. Need for Brand Extension <ul><li>Brand Growth </li></ul><ul><ul><li>Mature brand : provide fillip to stagnating sales </li></ul></ul><ul><ul><li>Threat of new entrants: Protect Market Share </li></ul></ul><ul><ul><li>Strengthen franchise </li></ul></ul><ul><li>Enhance Brand Image </li></ul><ul><ul><li>Strengthen Brand Identity </li></ul></ul><ul><ul><li>Revive core values </li></ul></ul><ul><ul><li>Reposition core values </li></ul></ul>
  25. 25. Ways in which a Brand can be Extended <ul><li>Line Extension </li></ul><ul><li>Brand Extension </li></ul><ul><li>Multiple Brands </li></ul><ul><li>New Brands </li></ul>
  26. 26. Line Extension Strategy <ul><li>Extend existing brand name to existing product category: Identify & occupy different segments of the market – “ market fragmentation ” </li></ul><ul><ul><li>Pack variants: shampoos: sachets to economy packs… tubes to jars, bottles to cans : differentiate uses </li></ul></ul><ul><ul><li>Price variants: Rin Shakti to Rin Supreme. Taj Luxury to Taj Executive: differentiate user groups… Parachute Uttam (differentiate markets) </li></ul></ul>
  27. 27. Line Extension Strategy <ul><li>Flavours / Variants: Diet Coke, Sunsilk Black, Parachute Lite…. Hair type, skin type, user groups: Differentiate user needs </li></ul><ul><li>… Colgate Gel, Maggi Chinese Noodles </li></ul><ul><li>Ingredient Lead: Lux Sunscreen, Pond’s Talc with SAM : upgrade user needs </li></ul><ul><li>… Head & Shoulders… ZPTO, Menthol </li></ul>
  28. 28. Brand Extension Strategy <ul><li>Extend the brand name to a new Product Category: Brand fit in a new business area </li></ul><ul><ul><li>Supplementary Categories: BPL TV to Washing machines, Maggi soups & sauces, Lakme lipsticks to perfumes </li></ul></ul><ul><ul><li>Complementary Categories: Colgate toothbrush & toothpaste </li></ul></ul><ul><ul><li>Image Accessories: Bennetton T-shirts to sun-glasses, Nike sports shoes to T-shirts </li></ul></ul><ul><ul><li>Diverse Categories: Similar core values: Britannia biscuits to dairy products. Dabur Chavanprash to Vatika </li></ul></ul>
  29. 29. Multiple Extension Strategy <ul><li>New Brand names in the same product category “market saturation” </li></ul><ul><li>Expensive strategy: Leading corporates… often through acquisitions… economies of scale </li></ul><ul><ul><li>HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy, Dove, Pears </li></ul></ul><ul><ul><li>P&G Detergents: Ariel, Tide </li></ul></ul><ul><ul><li>Coca Cola: Coca Cola, Thums Up… </li></ul></ul><ul><ul><li>Lakme: Elle 18, Orchids </li></ul></ul><ul><ul><li>Nescafe, Sunrise </li></ul></ul>
  30. 30. New Brand Strategy <ul><li>New Brand Name for a product category: poor brand fit but business potential </li></ul><ul><ul><li>Kotex to Kleenex </li></ul></ul><ul><ul><li>Huggies to Depend </li></ul></ul><ul><ul><li>Thums Up to Gold Spot, Pepsi to Mirinda </li></ul></ul><ul><ul><li>Lakme to Elle 18 </li></ul></ul>
  31. 31. Stretching the Brand Vertically <ul><li>Understanding the terms: </li></ul><ul><li>Vertical stretch: Technically a Line extension since it is the introduction of Price Variants of an existing Brand in the existing Product Class </li></ul><ul><li>Stretching Up: Extending the Brand to a Higher Priced Segment </li></ul><ul><li>Eg: From Surf detergent 500g at Rs 43 to Surf Excel detergent 500g at Rs 60 </li></ul><ul><li>Stretching Down: Extending the brand to a Lower Priced Segment </li></ul><ul><li>Eg: From Ariel Washing Powder to Ariel Gain Washing Powder </li></ul><ul><li>Note: Both products co-exist at 2 different Price Points under the same brand </li></ul>
  32. 32. Brand Stretch & Market Segments EXISTING BRAND STRETCH DOWN STRETCH UP Market Potential Brand Image
  33. 33. Brand Extension Horizons Line Extension Horizon 1 Brand Extension Horizon 2 Brand Extension Horizon 1
  34. 34. Effect of Brand Extensions <ul><li>More Good: Extension enhances Brand name. </li></ul><ul><li>Good: Extension aids Brand Name </li></ul><ul><li>Bad: Extension fails to help Brand Name </li></ul><ul><li>Ugly: Extension Damages Brand Name </li></ul><ul><li>More Ugly: Brand Name is Forgone </li></ul>
  35. 35. Post Mortem <ul><li>Colgate Gel : More Good </li></ul><ul><li>Rexona Does : More Good </li></ul><ul><li>Close Up Whitening : Good or Bad ? (credibility?) </li></ul><ul><li>Amul Pizza : Good or Bad (price?) </li></ul><ul><li>Britannia Cheese, Ghee … More Good </li></ul><ul><li>Sunsilk Hairoil : Bad (Identity or product?) </li></ul><ul><li>Diet Coke : Bad… Good?? (Identity… Market evolution) </li></ul><ul><li>Frooti Apple Drink : Ugly (Identity?) </li></ul>
  36. 36. Note… <ul><li>Good understanding of the Brand Identity… may or may not lead to the Success of the Brand Extension. </li></ul><ul><li>But a poor understanding of Brand Identity will definitely lead to the failure of the Brand Extension… & may also damage the existing Brand. </li></ul>
  37. 37. Brand Revitalization <ul><li>Inject life into a Mature Brand = Facelift </li></ul><ul><li>Enhance Brand equity: improved recognition, enhanced perceived value, changed associations, an expanded consumer base & or increased loyalty </li></ul><ul><li>Movement from milking Cash Cows to Brand Restage (External Stars), ina competitive context </li></ul><ul><li>Recognition of the Power of Old Brands vs the Expense & Risk of Creating New Brands </li></ul>
  38. 38. Brand Revitalization/ Rejuvenation Efforts to extend the Brand Life Cycle SALES TIME Prevent further Decline, retain sales growth
  39. 39. Today’s need: Continuous Process of Revitalization Revitalization: Starts at an early stage before a brand shows a decline in Sales Sales Time
  40. 40. Ways to Revitalize Increased Usage New Markets Extensions Obsolescing Product Augmenting Product Repositioning New Users
  41. 41. Increased Usage <ul><li>Increased Salience: Dettol </li></ul><ul><li>Increased Frequency/Regular Use: Shampoos : Head & Shoulders, economy pack, travel pack </li></ul><ul><li>Incentives/Promotions: Filmfare, Frequent Flier Programs </li></ul>
  42. 42. New Uses <ul><li>New Gifting Solutions: Tiffany’s & Cadbury’s </li></ul><ul><li>Festive Occasions: Asian Paints </li></ul><ul><li>Multiple Functional Uses: Milkmaid recipes </li></ul><ul><li>Behavioral shifts: Moov – Sprains to Back Aches </li></ul>
  43. 43. New Markets <ul><li>Redefine Target Segment: Cadbury’s Dairymilk Chocolates for Adults </li></ul><ul><li>Growth in new segments: Personal Computers </li></ul>
  44. 44. Repositioning the Brand <ul><li>Image Upgrade: Philips “Lets make things Better” </li></ul><ul><li>Revive Image: Lakme, Dettol </li></ul><ul><li>Change Association: Britannia from biscuits to healthy food </li></ul>
  45. 45. Augmenting the Product <ul><li>Packaging Upgrade: Crocin, Shampoo, fliptops </li></ul><ul><li>Product Upgrade: New improved Lux </li></ul><ul><li>Increased Customer Involvement: Wills & Cricket, Sunsilk & Parlours, Surf & Laundry Service </li></ul>
  46. 46. Obsolescing the Product <ul><li>Fashion Products: Colour cosmetic range, Revlon, Designer Watches- Titan </li></ul><ul><li>Technology Products: Sony Music… mobiles… Windows </li></ul><ul><li>Dying Categories: Pond’s vanishing cream – Oil Balanced Formula </li></ul>
  47. 47. Restage Vs Re-engineer <ul><li>Restage: Maintain the Star Status of a product through constant innovation & activity to CONTINUOUSLY enhance the brand equity salience over a period of time </li></ul><ul><li>Re-engineer: To reinstate the Star Status of a Cash Cow / Dog product…. inputs risk…. multiple changes to be orchestrated in conjunction ….. Recognizing & Leveraging the core identity </li></ul>
  48. 48. Remember… If you don’t, someone else will <ul><li>What Iodex did not do, Moov did. </li></ul><ul><li>What HMT did not do, Titan did. </li></ul><ul><li>What Indian Airlines did not do, Jet Airways did. </li></ul>
  49. 49. Brand Exercise <ul><li>Develop a Benefit Ladder for the product Category based on Consumer needs / Motivation </li></ul><ul><li>Create a perceptual map for the leading 3-4 brands in the Category </li></ul><ul><li>Outline the Brand Image (from consumer research & Brand Values assuming the role of the Company) </li></ul><ul><li>Give 3 possibilities of Brand extension, Line extension and Brand Revitalization </li></ul><ul><li>Develop a brand Positioning Statement </li></ul><ul><li>Identify a consumer insight which you can use in your communication </li></ul>
  50. 50. Motivation Perception Image Insight…. Question Bank <ul><li>How would you describe Hit as a person vs Raid vs Baygon? </li></ul><ul><li>Imagine 10 years from now, where would you see these people… (individually) </li></ul><ul><li>Can you describe their family members </li></ul><ul><li>Which animal would you associate with the following brands? </li></ul><ul><li>Which Car would you associate with eash of the above brands? </li></ul><ul><li>Which celebrity / sport person would you associate with each of the above brands? </li></ul><ul><li>Which kind of person do you think will use the above brands? </li></ul>