Brand – Provide Value to Consumer & The Company
Value to the consumer Value to thecompany
Relationship
And
Emotional
Link
Brand
Asset
Through
Brand
Equity
Easier identification
Guide Purchase Decision
Reduced Perceived Risk
Quality Consistency Guarantee
Self- Expression AndSocial Identity
Trust & Assurance
Satisfaction AndConsumption Pleasure
Repeat Business
Aid New Product Introductions
Competitive Entry Barrier
Maintain DifferentiationAgainst Competition
Better Managed Channel PartnersPartners
Command Price Premium
Investor / Shareholder Confidence
Committed & Focused Staff
PurposePurposeOfOfTheThe
BrandBrand
VALUE CREATION
IMMORTAL BRAND
BRAND
LABEL
PRODUCT
SELF EXPRESSIVE BENEFITS
FUNCTIONAL ANDEMOTIONAL BENEFITS
FUNCTIONAL /EMOTIONAL BENEFITS
PRODUCT FEATURESPrice Differentiation Factor
EXPERIENTIAL APPROACH TO BRANDING
Physical Consumption
Application- Based Consumption
Non – Reality Consumption
Conspicuous Consumption
Risk- Free Consumption
Physiological Experience
Application Experience
Fantasy Experience
Social Experience
Well- Being Experience
BRANDING CHALLENGES
• Informed and Savvy Customers (Trust mark & Emotionalconnect)
• Brand Proliferation
• Media Fragmentation
• Sophisticated and Increased Competition.
• Decreasing Brand Loyalty.
• Growth of Private Labels.
• Increasing Trade Power
• Focus on Promotions.
• Stress on Advertising Expenditure.
• Short- Term Performance Orientation.
VIRGIN - BRAND IDENTITY
Brand Essence - Non- Conformist/ Unconventional
• Core Identity - Consistent best- of-category quality delivered with humor and flair
• Innovation - First with truly innovative, value - added features and services
• Fun & Entertainment - A fun and entertaining company
• Value for money - Value in all offerings, not just the high price option.
Extended Identity• Underdog - Innovative & creative offers to counter established firms.
• Personality - Flaunts rules, Humorous, Outrageous, Competent, Stylish.
• Symbol - CEO led perceived lifestyle approach, Virgin Script Logo.
Value Proposition• Functional Benefits - Quality Value Offering with extras delivered with style.
• Emotional Benefits- - Fun & good Times association, Attitude to serve the best.
• Self- Expressive Benefits - Be Outrageous against the norms.
• Relationship - Customers as fun companions.
Identity Vs Tagline
• Represents the identity
• Communicate & energizeinternal staff.
• Timeless/ Long timeproposition
• Relevant across markets &products.
• IBM - Magic you can trust
• Dominos- Guaranteed Delivery
• Nike - Excelling
• Represents the brand position
• Communicates with external world.
• May change / reposition.
• Confined approach.
• IBM - Solutions for a small planet
• Dominos- Hungry Kya
• Nike - Just do it
BRAND SUCCESS TRAITS Excel at Delivering benefits customers truly desire
Stay Relevant
Pricing Strategy - Customers’ perception of value.
Proper Positioning.
Brand Consistency.
Brand Portfolio and Hierarchy to be sensible.
Build Brand equity on well coordinated marketing activities.
Brand Managers awareness of what the brand means to customers.
Provide proper and sustained brand support in the long run.
Company to monitor the source of brand equity
PERCEIVED RISK
Brands reduce the Risks in Product Decisions
Functional Risk
Physical Risk
Financial Risk
Social Risk
Psychological Risk
Time Risk
CUSTOMER BASED BRAND EQUITY PYRAMID
Resonance
Judgment Feelings
Performance Imagery
Salience
Relationships(What about you & me?)
Response(What about you?)
Meaning(What are you/)
Identity(Who are you/)
BRAND SCORECARDBRAND SCORECARDYour Brand Which Means Instance
Delivers BenefitsCustomers Desire
Customer engagement Starbucks
Stays Relevant Elements of the Brand Gillette
Price based onconsumer’sperception ofbrand’s value
Product nature i.e. PremiumVs Household Staple
P&G
ProperlyPositioned
Conveys similarity with &Differences againstcompeting brands
Visa
Consistent Consistent MarketingCommunications over time
Nike
BRAND SCORECARDBRAND SCORECARDYour Brand Which Means Instance
Sensible fit inthe Brand Portfolio
Brands- Logical working Gap, Banana Republic, OldNavy.
IntegratedMarketing
Solidified Brand Identity Coke
ManagersunderstandMeanings
consumer’s differentperceptions.
Gillette
Receivesupport
Consistent investment inbrand awareness.
Samsung & LG
constantlyMonitored
brand equity managementsystem.
Disney
MEASURING BRANDSMEASURING BRANDS
THREE PATHS
Customer –BasedBrand Metrics
IncrementalBrand Sales
BrandedBusiness Value
AttitudinalData
Hierarchy ofEffects
TrackingStudies
Market PlacePerformance Data
Marketing MixModeling - ROI
PredictiveModeling - ROCI
BrandValuation
Discounted CashFlows
BrandScorecards
BRAND AWARENESSBRAND AWARENESS
Brand Recognition(At Point of Purchase)
Brand Recognition(At Point of Purchase)
Brand Recall(prior to Purchase)
Brand Recall(prior to Purchase)
PlusBrand Attitude
PlusBrand Attitude
Motivation TypeMotivation TypeInformational(Negative Motivation)
Transformational(Positive Motivation)
Typical Product Categories( Brands may Differ)
• Aspirin• Light Beer• Detergent• Routine Industrial Products
Typical Product Categories(Brands may Differ)
• Microwave Oven• Insurance• Home Renovations• Mew Industrial Products
Typical Product Categories( Brands may Differ)
• Candy/ Chocolates• Regular Beer• Fiction Novels
Typical Product Categories(Brand may Differ)
• Vacations• Fashion Clothing• Cars• Corporate Image
• Brand Loyal• Routinized Favorablebrand switchers
• New Category Users• Experimental or Routinized other brand switchers• Other Brand Loyals
LOWInvolvement(TrialExperienceSufficient)
HIGHInvolvement(Search &Convictionrequired prior
to purchase
DecisionType
DecisionType
BRAND VALUE CHAINBRAND VALUE CHAIN
VALUE
STAGES
- Product - Awareness - Price Premiums - Stock Price
- Communication - Association - Price Elasticities - P/E Ratio
- Trade - Attitudes - Market Share - Market Cap.
- Employee - Attachment - Expansion Success
- Other - Activity - Cost Structure
- Profitability
MULTIPLIER
- Clarity - Competitive Reactions - Market Dynamics
- Relevance - Channel Support - Growth Potential
- Distinctiveness - Customer Size & Profile - Risk Profile
- Consistency - Brand Contribution
MARKETINGPROGRAM
INVESTMENT
CUSTOMERMINDSET
MARKETPERFORMANCE
SHAREHOLDERVALUE
PROGRAMQUALITY
MARKETPLACECONDITIONS
INVESTORSENTIMENT
LEVILEVI’’SS –– BRAND ATTRIBUTE & BENEFIT ASSOCIATIONBRAND ATTRIBUTE & BENEFIT ASSOCIATION
AttributesAttributes
User ImageryUser Imagery Usage ImageryUsage Imagery
ProductProduct –– RelatedRelated BrandBrand
AttributesAttributes PersonalityPersonality
Functional BenefitsFunctional Benefits Symbolic BenefitsSymbolic Benefits
Experiential BeExperiential Benefitsnefits
Western, American, Blue Collar,Hard Working, Traditional,Strong, Rugged & Masculine
Appropriate for OutdoorWork & Casual SocialSituations.
Blue Denim, Shrink-to-fitcotton fabric, Button Fly, Twohorse patch & Red pocket tag.
Honest, contemporary,Classic, Approachable,Independent & Universal.
High- Quality, Long Lasting& Durable.
Self- Confident & Self-Assurance Feeling
Comfortable fit andRelaxed Wear
LEVILEVI’’SS501501
Benefits
BRAND HIERARCHYBRAND HIERARCHY
Nothing Else Beats It
Does it Offer Me
Something Better Than Others
Can It Deliver
Does it Offer Me Something
Do I Know About It
Measures Consumer Attitudes, Beliefs & Opinion.
Defines the Five Levels of Brand Relationship
BONDING
ADVANTAGE
PERFORMANCE
RELEVANCE
PRESENCE
PRODUCTPRODUCT -- THREE LEVELSTHREE LEVELS
Augmented Product
CoreProduct
Actual Product
Installation
Delivery
and
Credit
After-
Sales
Service
Warranty
Packaging
Quality Design
Brand
Name
Product
FeaturesCORE BENEFIT
OR
SERVICE
EXPERIENCE ECONOMYEXPERIENCE ECONOMY
Charge for the Stuff - Commodity Business.
Charge for Tangible Things – Good Business.
Charge for Activities you Perform – Service Business.
Charge for time spent by consumers with you- Experience Business.
THE IDEA IS NOT TO ‘SELL SOMETHING’, BUT TODEMONSTRATE HOW A BRAND CAN ‘ENRICH ACUSTOMER’S LIFE’.
VALUE PROPOSITIONVALUE PROPOSITION
Short
Specific ( relate to customer)
Customer’s Language
By the seat of the pants ( Use experience, Instinct orguesswork to be avoided).
VALUE PROPOSITION SHOULD :
Solve Consumer Problem.
Deliver Benefits.
Improve their situation / Impact them
Enrich lives.
VALUE PROPOSITIONVALUE PROPOSITION –– A PROMISEA PROMISE
•• PROMISEPROMISE –
– An anticipation of VALUE
– Set of Promises to target, differentiated against Competing simi lar offersbacked up by reason to believe.
•• BENEFITSBENEFITS
– Functional, Economic, Emotional.
•• DIFFERENTIATED VS ALTERNATIVE OPTIONSDIFFERENTIATED VS ALTERNATIVE OPTIONS
– Customer buys competing offer.
– Status Quo that customer does not buy at all/ defers.
– Competing with yourself ( advanced/ new version sale)
•• PROMISE EVIDENCEPROMISE EVIDENCE
– Physical
– Testimonial
– Third Party Endorsement.
PRODUCT CLASSIFICATION BASISPRODUCT CLASSIFICATION BASIS
The Nature of Consumer Buying Behavior
Consumer Goods – Frequently purchased without much deliberations, Wideavailability.
Shopping Goods – More Planned and compared.
Specialty Goods – Select Outlets, Inelastic demand with little or no comparison.
Involvement Level in Purchase Process
Low Involvement – Little deliberations, low risk perception.
High Involvement – Invest time & effort , high risk perception
Type of Benefit
Functional/ Utilitarian Benefit – Logical, Rational advantage.
Emotional Benefit – Ego Expressive need.
o Brands in same category may position product at opposite side of spectrum.
o Different customers may place same product in different classes.
PRODUCT POLICY DECISIONSPRODUCT POLICY DECISIONS
Product Attributes or Features ?
Preferred Trade-off between Product Development Costs Vs ConsumerValue delivered ?
Post successful product launch, managing ‘me- too’ products ?
Structure of its New Product Development pipeline ?
Preferred Product Mix composition ?
Product line/ Brand Extension types?
Avoid Brand Dilution ?
Product offering prune ?
Product line trade down thru cheaper version offer of current product ?
PRODUCT DECISIONSPRODUCT DECISIONS
• Product Attributes : Define prod. Benefits e.g. Quality,Features & Design.
Watches, Cars, Electronic Eqpt - Performance quality.
Test equipment, Life Saving eqpt. - Conformance quality i.e. defect free.
Cell phones, cars, computers - Features to add value & relevance.
Cars, Watches,Audio & video eqpt. - Design (Gillette, Braun)to be competitive.
• Branding : Important part of the product that adds value.
Brand sponsor options while the product is launched.
Co-branding, Line Extension & Brand Extension, Multi brands & New Brands.
• Packaging : Primary & Secondary container to protect & market the product as well.
Tetra Pack with UHT technology for juices are consistent with adverts, pricing &distribution.
• Labeling : From Simple tags to complex graphics
Identifies maker, place, date of mfr. & expiry,contents, usage methods & safety.
States unit pricing, open dating( shelf life), & nutritional labeling.
• Product Support Services : Part of the complete offer to augment the product.
Computers, Cars, Electronic Equipment need service to support the sale.
PRODUCT POLICY DECISIONSPRODUCT POLICY DECISIONS
Recognize core customer need intended to satisfy.
Whether product ideally suited to satisfy the need.
Does it need redesigning.
Create sustained competitive advantage thru augmentation.
Monitor customer satisfaction experience.
POSITIONINGPOSITIONINGPOSITIONING
MARKET
SEGMENTATION
MARKET
TARGETING
MARKET
POSITIONING
IDENTIFY SEGMENTATION BASIS
EVOLVE SEGMENT PROFILES
EVALUATE SEGMENT ATTRACTIVENESS
SELECT ONE OR MORE SEGMENTS TO ENTER
POSITIONING TO EACH TARGET SEGMENT
MARKET MIX FOR EACH TARGET SEGMENT
POSITIONING STRATEGIES• :POSITIONING BY ATTRIBUTE :
POSITIONING BY PRICE /QUALITY:
POSITIONING BASED ON USE OR APPLICATION
POSITIONING BY PRODUCT USER :
POSITIONING BY PRODUCT CLASS:
POSITIONING AGAINST COMPETITOR :
POSITIONING PREMIUM PRODUCTS• PRODUCT FEATURES
• PERFORMANCE QUALITY
• PRODUCT EXCLUSIVITY & STYLE
• PRODUCT DESIG
• SERVICE QUALITY
• PEOPLE QUALITY
• PACKAGING QUALITY
• IMAGE QUALITY
PRODUCT FAILURES
• INCORRECT POSITIONING :
• IMPROPER PRICING :
• PRODUCT DESIGN FAILURE
• UNDERESTIMATING COMPETITION
• OVERESTIMATING MARKET SIZE
• LACK OF GENUINE SUPERIORITY
• LACK OF DISTRIBUTION SUPPORT
NEW PRODUCT DEVELOPMENT DECISION PROCESSNEW PRODUCT DEVELOPMENT DECISION PROCESS
Idea
Generation
Is it worth
Considering
Idea
Screening
Idea compatibility
with objectives,
strategies &
Resources
Concept Dev.
& Testing
Good concept
that consumers
may try
Marketing
Strategy Dev.
Cost- effective
& affordable
marketing strategy
Business
Analysis
Products meets
the profit goal?
Product
Dev.
A technically
& commercially
Viable product
Market
Testing
Have product
Sales met
Expectations?
Commercialization
Are product sales
Meeting expectations
Send back
to product
Dev.
Modify product or
Mktg. program
NoNo Yes
Yes
CATEGORIES OF NEW PRODUCTS
New to the world products
New product lines
Additions to existing product lines
Improvements & revisions of existing products
Repositioning
Cost reductions
INNOVATION ADOPTION CHARACTERISTICS
Relative Advantage
o Superiority over existing products.
o Greater the degree, quicker the adoption.
Compatibility
o Congruence with lifestyle & Values of potential users.
Complexity
o Degree user friendliness.
o More the complexity, longer the adoption process.
Divisibility
o Trial ability on small quantity/ limited basis.
o More the options, better & earlier the adoption.
Communicability
o Benefits are observably or describable to others.
o Interest & curiosity for potential users.
MARKET TESTING
New product introduced into authentic setting.
Consumer & Dealer reaction to handling, usage & repurchase.
Valuable info on dealers, potential buyers, marketing programs &markets.
High Investment – High Risk Products with failure risk
Test Influenced by Investment cost & risk, Time pressure & researchcost.
Product creating new categories/ with novel features need test.
Modified products ( imitative) may avoid.
High value cosmetics avoid test market- Demonstrators at dept. stores.
TEST MARKETING – BUSINESS GOODS
• Expensive / New Technology Products– Alpha Testing ( Inside Org.) & Beta Testing ( Consumers)
– Beta Testing• Small numbers of test customers invited.
• Observe test consumers usage pattern.• Exposes unforeseen issues on safety/ servicing etc.• Observe customer value addition for pricing clues.• Ask for purchase intention.
• Seek test reactions, if any.
• New Industrial Products– Introduce at Trade Shows
• Buyer interests recorded.• Reaction to features and terms.• Purchase intentions & order placements.
– Distributor & Dealer Showrooms• Place adjacent to own products/ competitor products.• Valuable preference & pricing info in selling atmosphere.
• Ability to handle orders placed.• All customers not representational target market.
Value Innovating:Four Basic Questions
What factors should be reduced well below the industry standard?
What factors should be raised well beyond the industry standard?
What factors should beeliminated that the industry
has taken for granted?
What factors should becreated that the
industry has never offered?
ValueInnovation
Raise
Eliminate Create
Reduce
MARKET ENTRY TIMINGMarket entry on commercialization with three options :
First Entryo Enjoys ‘first mover’ advantage.
o Leadership position, firm up distributors & customers.
o A non- debugged product can backfire.
Parallel Entryo Coincide with competitor entry.
o Better interest & enthusiasm in the market.
Late Entryo Delay launch till competitor entry.
o Lesser education effort.
o Faults rectified.
o Ascertain true market size.
Criteria to choose rollout markets Market Potential.
Local reputation of the co.
Cost of filling pipeline.
Cost of communication media.
Competitive penetration
Influence of this area on other areas.
VALUE CREATION & DELIVERY
Customer
Segmentation
Market Selection
/ Focus
Value
Positioning
Product
Development
Service
DevelopmentPricing
Sourcing
Making
Distributing
Servicing
Sales ForceSales
PromotionAdvertising
Choose The ValueChoose The Value
Provide The ValueProvide The Value
Communicate The ValueCommunicate The Value
Strategic Marketing
Tactical Marketing
BREAKTHROUGH VS INCREMENTALBREAKTHROUGH VS INCREMENTAL
Breakthrough Incremental
- Now-to-the-world Performance Features - Improvement in existing product
- Huge advance in performance - Derivative of existing product platform
- Dramatic cost reduction - Exploits existing forms of technology
- High Risk - Lower Risk
- Expensive - Less Expensive
- Targeted to New or Existing Markets - Targeted to existing or Adjacent Markets
Marketer’s Key Responsibilities
- Envision the Market - Listen to the Existing Market
- Create Demand - Accommodate Current Demand
- Educate the Market
PRODUCT DEVELOPMENT FUNNELPRODUCT DEVELOPMENT FUNNEL
CustomerNeeds
ConceptGeneration Product Prototyping Pilot Manufacturingand Design and Testing Production Ramp Up andSelection Release
TechnologicalPossibilities
CREATING PROJECT PLANSCREATING PROJECT PLANS
PROCESS CHANGES
PRODUCT CHANGES New Core Process Next Gen Upgrade Tuning/ Incremental
New Core Product BREAKTHROUGH
Next Gen Product
PLATFORM
Addition toProduct Family
Add – ons and DERIVATIVESEnhancements
STAGESTAGE –– GATE MODELGATE MODEL
Initial Second Decision on Post- Pre- Launch Post -
Screen Screen Business Development Business ImplementationCase Review Analysis Review
G1 G2 G3 G4 G5
Ideation Preliminary Detailed Development Testing & FullInvestigation Investigation Validation Production
(Build Business Market LaunchCase)
Idea S1 S2 S3 S4 S5 PIR
PRODUCT CONCEPT GENERATION Translating Customer Needs into Product Features:
Customer vocabulary of ‘comfort’, ‘reliable’ ‘ safe’ etc.
Preliminary Specifications may be modified..
Assign metrics for ‘Q F D’ to co-relate among attributes.
What is a Concept Concept Positioning Statement to answer ‘Who’. ‘What’ and “How’.
Positioning.= Differentiation ( What +How) + Segmentation ( For Whom)
Text, Drawings & Models about the performance & Technical features.
Configuration, how will it serve customers, who they are, its meaning tocustomers.
Concept Description as – Speed, Size, Horsepower etc.
Product Integrity Extent to which the totality of the product achieves the balance ( Basic
functions, esthetics, semantics, reliability, & economy) and att racts andsatisfies customers.
Product Architecture product changes e.g. upgrade, add- ons, wear and tear, replacing.
Varieties desired
Performance Levels to be achieved
PROTYPINGPROTYPING
Types of Tests Performed on Prototypes:
– Technical Performance Evaluation ( Engineering)
– Esthetic features ( Marketing & Industrial Designers)
Overall Objectives :
Test the feasibility of a concept
Physical / Analytical modeling.
Arrangement & fitment of parts, cost factors, motor sounds, insulations.
Customer feedback assimilation
User comfort, sturdiness, packing.
Communicate an Idea ( company, suppliers, distributors etc)
Management commitment for investment.
Pilot Production and LaunchPilot Production and Launch
Pilot Production :
Test readiness to ship including assembly, test, operational procedures..
Molds, machines etc to support any anticipated need levels.
Establishment of basic processes of manufacture.
Ramp Up :
Develop capability to produce volumes e.g. first year.
Manufacturing, design, suppliers, shipping etc involved.
Launch :
Target segment, positioning, product & service combination, distributionexecuted for the right customer at the right time and right price.
MARKETERMARKETER’’S ROLES ROLE -- PRODUCT DEVPRODUCT DEV
Market Size and probability of acceptance in specific segments.
Reaching these segments – Existing Channel Capability & Cost .
Identifying specific customer requirement & How rapidly they change
Price Range acceptability to the market.
Competition profiling.
Articulation of the value proposition of the new product.
Answers entered into Business Analysis & Revenue - Cost Projections.
MATCHING DEVELOPMENT PROCESS WITH PRODUCTMATCHING DEVELOPMENT PROCESS WITH PRODUCTTYPETYPE
Crash MostProgram Challenging
High
Speed at WhichMarket Windowis Closing(Opportunity Cost)
Low 100 % Right
Low High
Degree of TechnicalInnovation Required( Development Risk)
NEW PRODUCT TYPES
MismatchMismatch
BreakthroughBreakthrough IncrementalIncremental
MismatchMismatch
Breakthrough
Incremental Breakth
rough
Incr
ementa
l
Supplier’s Perception Custom
er’sperc
eption
PRICING STRATEGY - PRODUCT MIX
1 PRODUCT LINE PRICING:
2 OPTIONAL -PRODUCT PRICING :
3 CAPTIVE -PRODUCT PRICING :
4 BYPRODUCT PRICING :
5 PRODUCT BUNDLE PRICING :
STRATEGIES TO ADJUST PRICE
1 DISCOUNT & ALLOWANCE PRICING
2 SEGMENT PRICING
3 PSYCHOLOGICAL PRICING
4 PROMOTIONAL PRICING
NEW PRODUCT PRICING
A IMITATIVE NEW PRODUCT ( Quality & Price Conscious Buyer
Category)
High PRICE Low
High
Premium Good Value
QUALITY
Over Charging Economy
Low
PRICE ALTERATIONS
1 PRICE CUTS :
2 PRICE INCREASES
3 BUYER REACTIONS
4 COMPETITOR REACTION
5. REACTION TO COMPETITOR PRICE CHANGES
PRICE CHANGE METHODS
To reduce customer sensitivity to price:
• OFFER QUALITY PERCEPTION
• OFFER LINE EXTENSIONS
• UNBUNDLING
• OPPORTUNITY PRICING
• REPOSITIONING
• DISCOUNT REDUCTIONS
VALUE - PRICING THERMOMETER
Optimal Pricing Perceived Value at Upper end.
Influenced by TEV by mktg. mix & substitute products.
COGS at Lower end.
Objective Value
Marketing Efforts
Perceived Value
Substitute Consumer’s Incentive to BuyPricing =( Perceived Value- Price)
Product Price
Firm’s Incentive to Sell=( Price – COGS)
Cost of Goods Sold
Rupee 0
PORTER’S GENERIC STRATEGIES
Competitive Advantage - Are Products differentiated in any way or merely costbasis
Competitive Scope – Does the co. target a wide / narrow market
CO
MP
ET
ITIV
ES
CO
PE
Na
rro
wB
roa
dCOMPETITIVE ADVANTAGE
Low Cost Higher Cost
Overall Cost
LeadershipDifferentiation
Cost
Focus
Differentiation
Focus
Competitive Advantage – (Cost or Differentiation Advantage )
BOWMAN’S CLOCK
• Option one - low price/low added value
– likely to be segment specific
• Option two - low price
– risk of price war and low margins / need to be a 'cost leader '.
• Option three - Hybrid
– low cost base and reinvestment in low price and differentiation
• Option four – Differentiation
– (a) without a price premium• perceived added value by user, yielding market share benefits
– (b) with a price premium• perceived added value sufficient to bear price premium
• Option five - focused differentiation
– perceived added value to a 'particular segment' warranting a pre mium price
• Option six - increased price/standard
– higher margins if competitors do not value follow/risk of losing market share.
• Option seven - increased price/low values
– only feasible in a monopoly situation
• Option eight - low value/standard price
– loss of market share
PRICE POLICY - INFLATION
Systematic Discounting
Promote Multi Unit Buying
Improve Efficiency
Pass on Costs when justified
Detest Trimming Marketing Spends
CONSUMER REACTIONS- INFALTION
Down Trade : Shift to regular petrol.
Bulk Buy: Stock up select product at current prices.
Watch Fine Print : Detailed check for quantity/ weight.
Package size alterations.
More Demanding : Negotiate hard deals .
Substitution: Trading in petrol vehicle for a diesel.
LEGAL / ETHICAL ISSUES
Differential Pricing: Better only when value added. Not seeking advantage by unfair means.
High pricing of life saving drugs.
Pricing to Undermine Competition :
Predatory Pricing :
Price Fixing:
Price Maintenance:
Pricing Principles be subjected to ethical review and an informedlegal review within company prior to implementation.
MEASURING BRAND PERSONALITYMEASURING BRAND PERSONALITYMEASURING BRAND PERSONALITY
oo COMPETENCECOMPETENCEo Reliable : Hardworking, Secure, Efficient, Trustworthy,
Careful.
o Intelligent : Technical, Corporate, Serious.
o Successful : Leader, Confident, Influential.
oo SOPHISTICATIONSOPHISTICATIONo Upper Class : Glamorous, Good- Looking, Pretentious,
Sophisticated.
o Charming: Feminine, Smooth, Sexy, Gentle.
oo RUGGEDNESSRUGGEDNESSo Outdoorsy : Masculine, Western, Active, Athletic.
o Tough : Rugged, Strong, No-Nonsense.
MEASURING BRAND PERSONALITYMEASURING BRAND PERSONALITYMEASURING BRAND PERSONALITY
oo SINCERITYSINCERITY
o Down –to-Earth : Family Oriented, Small Town,Conventional, Blue Collar.
o Honest : sincere, Real, Ethical, Thoughtful, Caring.
o Wholesome : Original, Genuine, Ageless, Classic, Old-Fashioned.
o Cheerful : Sentimental, Friendly, Warm, Happy.
oo EXCITEMENTEXCITEMENT
o Daring : Trendy, Exciting, Off- Beat, Flashy, Provocative.
o Spirited : Cool, Young, Lively, Outgoing, Adventurous.
o Imaginative : Unique, Humorous, Surprising, Artistic, Fun,
o Up-To-Date : Independent, Contemporary, Innovative,Aggresive.
DIMENSIONS – BRAND IDENTITYDIMENSIONSDIMENSIONS –– BRAND IDENTITYBRAND IDENTITY
BRAND ASA PRODUCT
BRAND ASAN ORGANIZATION
BRAND ASA SYMBOL
BRAND ASA PERSON
- Product Scope- Product attributes- Quality/ Value- Uses- Users- Country of Origin
- OrganizationalAttributes.Innovation,.Trustworthy.Genuine customer
concern- Local Vs Global
-Visual Imageryand Metaphors
-Brand Heritage
- Personality
- BrandRelationships
BRAND IDENTITY
APPROACHESAPPROACHES -- DEVELOP BRAND PERSONALITYDEVELOP BRAND PERSONALITY
◊◊ SELFSELF-- EXPRESSIONEXPRESSION
◊◊ RELATIONSHIPRELATIONSHIP
◊◊ FUNCTIONAL BENEFITFUNCTIONAL BENEFIT
BRAND IDENTITY PRISMBRAND IDENTITY PRISM –– SIX FACESSIX FACES
∆ PHYSIQUE - The Basis of the brand.
( Philips is Technology & Reliability , ICICI is Trust)
∆ PERSONALITY – What happens when brand becomes a person.
( Macho Marlboro, Strong Ambuja)
∆ CULTURE - Organizational Symbols, Country of Origin & Values
( Balsara & Dabur for Traditional Remedies, Germany forPrecision Engineering, Japan for Consumer electronics)
∆ RELATIONSHIP – Handshake between brand & consumer.
( Colgate – Dependability, Saffola – Safety)
∆ REFLECTION – Consumer perception of what the brand stands for.
( Coke reflects youthful values for both young & old)
∆ SELF- IMAGE - What the consumer thinks of himself.
( Benz owner – Elite with the best car, Tractor EmulsionPaint - Upper Class Look )
BRAND POSITIONING - CHECKLISTBRAND POSITIONINGBRAND POSITIONING -- CHECKLISTCHECKLIST
• Relevant?
• Believable?
• Ahead of trend?
• Defensible?
• Deliverable?
BRAND ARCHITECTURE
BrandArchitecture
Brand Portfolio• All Brands• All Sub-brands
Product – MarketContext Roles
• Endorser/ Sub- brands• Benefit Brands• Co – Brands• Driver Roles
Portfolio Roles• Strategic Brands• Linchpin Brands• Silver Bullets• Cash Cow Brands
Brand PortfolioStructure
• Brand Groupings• Brand Hierarchy Trees• Brand Range
Portfolio Graphics• Logo• Visual Presentation
Powerful Optimal Allocation of Synergy in creating Visibility, Clarity of Leveraged Platforms forBrands Brand Building Resources Association & Efficiency Offerings Brand Assets future growth options
BRAND VALUE PYRAMID
Most Meaningfuland most difficultto imitate.Hardest todeliver
Easiest to deliver,but least meaningfuland most easilyimitated
The Emotional,Spiritual& CulturalValues beingAddressed
The Functional orEmotional Benefitsprovided tocustomers
Features orProcesses thatmust bedemonstrated tocustomers.
BELIEFSAND
VALUES
BENEFITS
FEATURES AND ATTRIBUTES
PRINCIPLES TO DEVELOP BRAND PROMISEPRINCIPLES TO DEVELOP BRAND PROMISE
• Understand the Promise from the customerperspective
• Translation of Promises into Standards
• Fulfill good promises or risk brand damage
• Mend bad promises instantly
LEVERAGING THE BRANDLEVERAGING THE BRAND
LEVERAGINGLEVERAGING
THE BRANDTHE BRAND
Line Brand Vertical Stretch Co- brandingExtensions Extensions of the brand Marketing venture
In the existing In a different In the existing with another brand
product class product class product class
Create a Stretching Stretching
Range brand Up Down
BRAND HIERARCHYBRAND HIERARCHY –– COLGATE ORAL CARE PRODUCTSCOLGATE ORAL CARE PRODUCTS
COLGATECOLGATECOLGATE
COLGATETOOTHPASTE
COLGATETOOTHBRUSH
COLGATEDENTAL FLOSS
PLUS
COLGATEMOUTHWASH
COLGATEFLUORIDETABLETS
COLORCHANGE
YOUTHCLASSICPRECISION
DIAMONDHEAD
‘THE WILDONES’
BRAND EXTENSION - ADVANTAGESBRAND EXTENSION - ADVANTAGES
• Brand image improvement.
• Reduces customer risk perception
• Increases probability of gaining distribution and trial.
• Increases efficiency of promotional expenditure.
• Reduces introduction costs.
• Reduces developmental cost of new brand.
• Packaging and labeling efficiencies.
• Consumer variety options.
CUSTOMER EVALUATION OF EXTENSIONSCUSTOMER EVALUATION OF EXTENSIONSCUSTOMER EVALUATION OF EXTENSIONS
• Parent brand awareness & positive associationin memory.
• Positive associations evoked thru theextensions
• Negative associations not transferred
• Negative associations not created by theextension
LINE EXTENSIONLINE EXTENSION
◊ EXPANDS USER BASE :
◊ PROVIDES VARIETY :
◊ ENERGIZES A BRAND :
◊ INHIBIT COMPETITION :
◊ MANAGE TRUE INNOVATION :
LINE EXTENSIONSLINE EXTENSIONSLINE EXTENSIONS• Customer Segmentation
• Consumer Desires
• Pricing Breadth
• Excess Capacity
• Short – Term gains
• Competitive Intensity
• Trade Pressure
LINE EXTENSIONS - ISSUESLINE EXTENSIONSLINE EXTENSIONS -- ISSUESISSUES
• Weakens Line Strength
• Weaken Brand Loyalty
• Stagnant Category Demand
• Trade Relations Weaken
• Increased Costs
EXTENSION EVALUATION BASISEXTENSION EVALUATION BASISBrand
Concept Resources
Fit
EXTENSIONEXTENSION
Relevance Sustainable
Advantage
Customer Competition
Needs
CO - BRANDINGCO - BRANDING
•• Usage extensionUsage extension
•• Ingredient CoIngredient Co-- BrandingBranding
•• Image ReinforcementImage Reinforcement
•• Composite Brands or Bundling of BrandsComposite Brands or Bundling of Brands
•• Sales PromotionsSales Promotions
•• New product LaunchesNew product Launches
BRAND STRATEGY DIMENSIONSBRAND STRATEGY DIMENSIONSBRAND STRATEGY DIMENSIONS
CUSTOMER ANALYSISCUSTOMER ANALYSIS
• Trends• Motivation• Segments• Unmet Needs
COMPETITOR ANALYSISCOMPETITOR ANALYSIS
• Brand Image• Strengths• Weaknesses
SELF ANALYSISSELF ANALYSIS
• Existing Brand Image• Brand Heritage• Strengths/ Weaknesses• Brand Soul• Links to Other Brands.
StrategicBrand Analysis
LEVERAGES OF BRAND PROFITABILITYLEVERAGES OF BRAND PROFITABILITYCORPORATE RESOURCES
INVESTMENTS MARKETING INVESTMENTS DISTRIBUTION INVESTMENTS
Productivity, R&DKnow How & Patents
Forecasting Changes ofConsumer Values & Lifestyle
Proximity, Availability andCommunications
Level of Objective QualityCost of Quality
Brand Relevance andAdaptation to Present Market
Brand Awareness, Image,Liking & Familiarity
COMPETITION• Other Brands• DOB’s• Hard Discount
MARKET• Involvement• Price sensitivity• Buying Criteria
PERCEIVED VALUEVIS- À- VIS COMPETITION
SUSTAINABLE PRICEPREMIUM LEVEL
INCREMENTALATTRACTION & ROYALTY
COST ADVANTAGE DUETO MARKET LEADERSHIP
EXTENDED BRAND EQUITY BEYOND IT’S MARKET
ORGANIZATIONAL ASSOCIATIONORGANIZATIONAL ASSOCIATION
THE ORGANIZATION• Culture/ Values• People• Programs• Assets /Skills• Visibility
ORGANIZATIONAL ASSOCIATIONS- Environmentally Sensitive - Concern for Customers- Community Orientation - Presence / Success- Perceived Quality - Local Vs Global- Innovative
VALUE PROPOSITIONOR
CUSTOMERRELATIONSHIP
CREDIBILITY• Expert• Trustworthy• Likeable
INTERNAL CULTURE• Clarity• Buy – In
BRAND HIERARCHY - TERMSBRAND HIERARCHYBRAND HIERARCHY -- TERMSTERMS
Range Brands
Product Line Brand
Umbrella Brand
Source Brand
Endorser Brand
BRAND HIERARCHY- TERMSBRAND HIERARCHYBRAND HIERARCHY-- TERMSTERMS
Family Brand
Sub Brands
Modifier
Flanker Brand
Product Features/ Services
HIERARCHY GUIDELINESHIERARCHY GUIDELINESHIERARCHY GUIDELINES
•• Principle of SimplicityPrinciple of Simplicity :
•• Principle of RelevancePrinciple of Relevance :
•• Principle of DifferentiationPrinciple of Differentiation
•• Principle of ProminencePrinciple of Prominence
•• Principle of CommonalityPrinciple of Commonality
BRAND ROLESBRAND ROLESBRAND ROLES
BRANDROLES
BRANDROLES
ENDORSERENDORSERENDORSER STRATEGICBRANDS
STRATEGICSTRATEGICBRANDSBRANDS
DRIVERDRIVERDRIVER
SILVERBULLETS
SILVERSILVERBULLETSBULLETS
BRANDED BENEFITS
• Features• Components• Service Programs
BRANDED BENEFITSBRANDED BENEFITS
• Features• Components• Service Programs
SUB BRAND ROLES
• Describe Offerings• Structure & Clarify Offerings• Augment/ Modify Brand ID• Exploit Mkt Opportunities• Support Extensions
SUB BRAND ROLESSUB BRAND ROLES
• Describe Offerings• Structure & Clarify Offerings• Augment/ Modify Brand ID• Exploit Mkt Opportunities• Support Extensions
SUBSUB -- BRANDSBRANDS
Distinguishes part of the product line with the brand system
Supports the parent brand identity, and adds value thru :
• DESCRIBE OFFERINGS
• STRUCTURE & CLASSIFY OPTIONS
• AUGMENT / MODIFY IDENTITY THRU ASSOCIATIONCHANGE
• EXPLOIT MARKET OPPORTUNITIES
• SUPPORTS VERTICAL & HORIZONTAL EXTENSION
STRETCHING DOWNSTRETCHING DOWN -- CHALLENGESCHALLENGES
Protect perceived quality associations.
Unfavorable information influences perception.
• Sub Brands: Insulate parent brand even withlower quality
• Price Lowering: Price oriented competition &retail power
BRANDBRAND–– STRETCHING DOWNSTRETCHING DOWN
• Preference for low- cost brand with quality and features.
• Lesser versions as options.
• Challenge – Accommodate downscale versions not weaken
the brand.
New Competitors and Static Market
Emerging Retail Scenario
Technological Changes