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What are Brands Good for?

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Bisleri came up with the Aqua Green

Revolution to differentiate itself from its

competitors

People don’t buy products, they buy

BRANDS

Strong Customer Relationships

Builds Loyalty

Ability to charge

PREMIUM PRICE

over other competitors

Information-rich environment has led to consumer disaggregation,

which is more profitable and efficient than aggregation

Interaction with

Consumers at

Segment or

Individual Level

Flexible Approach

More Adaptive and

Responsive to

Consumer Needs

Leading to 2-Way

Communication

DIRECT MAIL

MARKETINGCRM

PERSONAL WEB

ASSISTANCE

SOCIAL MEDIA HELPS IN 2-

WAY COMMUNICATION

Answer could be found by examining 3 core areas of

BRAND MANAGEMENT:

• CUSTOMER RELATIONSHIP

• CHANNEL RELATIONSHIP

• ORGANIZATION OF BRAND MANAGEMENT

Relationships arise when a brand repeatedly and

consistently fulfills its stated promise

Although, relationships are not built by mere

traditional one-way mass communication

techniques. Such communications tend to be

shallow and don’t have a personalized approach

Disaggregation leads to better interaction with

customers, which also improves satisfaction level

Disaggregation helps in establishing much more

precise and finer STP strategy

Disaggregation helps in providing tailor-made

solutions, which further strengthens the

relationship

WARNING!

I AM NOT

LISTENING

Kraft Foods has a portfolio of hundreds of successful product

brands, including Miracle Whip, Jell-O, DiGiorno, Tang, Oscar Mayer

and Oreo.

Over the past three years, the company has developed and

launched the most elaborate disaggregate marketing initiative in

the packaged goods industry.

The company had come up with a glossy quarterly magazine, Food

& Family. It delivers food-related articles, recipes, editorials, and of

course advertising.

The magazine is personalized to the individual consumer.

The publication has rapidly become the third largest circulation

magazine in the United States, with over 11 million copies delivered

— about as many as Time, Newsweek and People combined.

Kraft Foods has a portfolio of hundreds of successful product

brands, including Miracle Whip, Jell-O, DiGiorno, Tang, Oscar Mayer

and Oreo.

Over the past three years, the company has developed and

launched the most elaborate disaggregate marketing initiative in

the packaged goods industry.

The company had come up with a glossy quarterly magazine, Food

& Family. It delivers food-related articles, recipes, editorials, and of

course advertising.

The magazine is personalized to the individual consumer.

The publication has rapidly become the third largest circulation

magazine in the United States, with over 11 million copies delivered

— about as many as Time, Newsweek and People combined.

HELPS IN PROMOTION OF THE BRAND AT UMBRELLA LEVEL, WITHOUT DISTURBING THE POSITIONING OF ANY SUB BRAND

DON’T MANAGE BRANDS.

MANAGE CONSUMERS OR

CONSUMER SEGMENTS!

Last few decades has seen a

remarkable rise of retailers

They now follow a

relationship based

marketing approach

Private Labels add to brand

loyalty

Branded goods manufacturers can’t afford not be present across major retail

outlets

Ex: Walmart commands a high bargaining power against small and medium

sized manufacturers, thereby reducing the price of the product drastically.

The proportion of brands’ marketing budgets spent on retailers’ listing fees,

facing fees, trade promotions and cooperative advertising is twice as large as

the proportion spent marketing the brands to the end consumer.

Retailers attract traffic by giving

discounts on most popularly

consumed brands and products

like Coca Cola, Tide, Maggi, etc.

Using Loyalty Programs, retailers

can now analyze the buying

behaviour of consumers.

Brands are doing exclusive tie-

ups with retailers. Brands are

realizing their brands’ chances of

survival will be better if they

become an essential element of

the retailer’s value proposition.

In many multi-product organisations, each brand is

administered by a brand manager, who takes care of the

entire brand, right from budget allocations, to marketing

initiatives.

This system avoids interference from other brands.

All other PR and disaggregated activities are considered as

add-ons to this approach.

Over the last few years, the proportion of budget

contribution towards disaggregated marketing techniques

have increased over traditional media platforms.

Relationship building

entity and mechanism

Communications that

affect consumer behavior

Obtaining expertise in

new-product and brand

development