Assignment

of
Strategic Management

Group No.: Eight (8)

Submitted to: Prof. G. Ahmad Rana

Submitted by:
Members:
Ali Sher -----------------------------------
Syed Hussain Zain ul Abiden -----------------------------------
Ayesha Saeed -----------------------------------
Asif Sheikh -----------------------------------
Najeeb Najam -----------------------------------
Syed Ali Kamran ----------------------------------

UNIVERSITY OF CENTRAL PUNJAB LAHORE

Question No.1) Describe the current sources of MTV’s brand equity. How have they
changed overtime?
MTV is an American cable television network based in New York City that launched on
August 1, 1981. The original purpose of the channel was to play music guided by on-air
hosts known as VJs. Today, MTV still plays a limited selection of music videos, but the
channel primarily broadcasts a variety of popular culture and reality television targeted at
adolescents and young adults.

Since its premiere, MTV has had a profound impact on the music industry and popular
culture. Slogans such as "I want my MTV" became embedded in public thought, the
concept of the VJ was popularized, the idea of a dedicated video-based outlet for music
was introduced, and both artists and fans found a central location for music events, news,
and promotion. MTV has also been referenced countless times in popular culture by
musicians, other TV channels and shows, films and books.

MTV has spawned numerous sister channels in the U.S. and affiliated channels
internationally. MTV's moral influence on young people, including issues related
to censorship and social activism, has been a subject of debate for years. MTV's choice to
focus on non-music programming has also been contested relentlessly since the 1990s,
demonstrating the channel's impact on popular culture.
Image and branding

MTV's logo, the large block letter "M" with graffiti-style letters "TV" superimposed and
the words "Music Television" underneath, quickly became ubiquitous and instantly
recognizable in popular culture. The last three decades have brought some change and
evolution to MTV's iconic image and branding.
2010 rebranding
Since the premiere of the short-lived FNMTV in 2008, MTV has used a revised, chopped
version of its traditional logo during most of its on-air programming. The revised logo is
largely the same as MTV's original logo, but it excludes the "Music Television" caption,
the bottom section of the "M" block letter, and the trailing letter "V" that branched off to
the side of the original logo. However, much like the ever-changing patterns that filled
MTV's original 1981 logo, the new 2010 logo is designed to be filled in with an unlimited
variety of pictures and images. This new logo formally became MTV's official brand
mark on February 8, 2010, when it debuted on MTV's website. The channel's long-
running official tagline "Music Television" was officially dropped at this time.
The factors that led to the success of mtv was:
1) The region centric approach
2) Acquiring the local channels of many countries
3) Apart from localizing the mtv’s efforts to understand the tradition and culture of the
country in which they operated.
4) Company’s policy of providing creative and commercial autonomy to the local
channels led to innovation and vast expansion of the regional channels

MTV Pakistan
Music Television Networks Pakistan (MTV Pakistan) is the Pakistani subsidiary
of MTV, a cable television network owned by Viacom Inc. headquartered in New York.
The Pakistan franchise has been set-up in collaboration with a local Pakistani music
channel known as INDUS MUSIC, owned and operated by INDUS MEDIA
GROUP ("INDUS TV"). INDUS TV is Pakistan's first private television
broadcaster. MTV Pakistan has been launched with a vision to bridge global cultural
gaps through music and to promote the burgeoning Pakistani music industry.

MTV Pakistan combines local and international music. MTV Pakistan has a variety of
Pakistani shows such as Hullo Hullo, Most Wanted, Eat This, Bheja Fry, Slightly
Off, The Tonight Show, Guide, Movie Classics, MTV On Top, MTV
Lahori, Groove and Classics. International shows such as Jackass, Pimp My Ride, I Bet
You Will, Dirty Sanchez, Wild Boyz,Viva la Bam, Celebrity
Deathwatch and I Want A Famous Face.

SEGMENTATION

Demographics:
MTV reaches 64 countries with its six affiliate broadcasting arrangements across the
world. This represents the youth—students and young professionals who are relatively
cognizant of the trends and lifestyle patterns. It offers particularly different styles of
programming in each local unit. Market, thus, can be segmented geographically in this
sense, where every local programming is customized based on the socio-economic
culture of the said local geographical unit.
Socio-cultural:
MTV adjusts its advertisements to its affiliate units accordingly. For the Latin population
for instance, the advertisements are significantly influenced by the pressing social issues
that need to be addressed to. Language is also a vehicle for local customization.

Target Market:
With respect to one affiliate MTV unit, the target market would be the local population
with age ranging from 18 to 34. Furthermore, it has its target audience as well as in the
different sectors of the society through parents, elders and politicians. These sectors
influence how programs are relayed through them (this of course relates to the fact that
these people are the direct constant companions of the target market). Also, MTV caters
to the upper part of the youth in terms of financial brackets. It wants to connect to these
people in the upper echelon what is hip, trendy, as well as informational.

Positioning
At present, MTV has been and is positioning itself as the world’s most influential music
and lifestyle icon for the youth. Now, it has also delved into informed, aware, and
concerned vehicle for change in the youth. Levi Strauss is one of the world’s most
recognized leading distributors in the mercantile industry. It would definitely want to
advertise globally on MTV for the primary reason that MTV connects to the upper
echelon of the market. Levi Strauss is actually a high-end clothing distributor, hence
doing so would emphasize their image as hip, cool, and a brand that is worn not just
anyone else.

Mtv’s Marketing Mix

Product(service):
Basically MTV offers to the youth and young professionals a whole package of lifestyle
and information all rolled into one. It features music videos, fashion trends, concert tours
(and information), and promotions. Moreover, it promises value-adding services through
news broadcasting and tackling of local issues.

Price:
Basically the amount of money customers have to “pay” is actually continual patronage
of the program. Also, high viewers’ ratings will bring them into line with the market’s
perception of MTV’s (increasing) value, hence increasing their “price” from business
conglomerates such as KODAK, Apple, Coca-Cola, etc.

Place:
MTV does this well, in the sense that they make their service and name available to target
consumers through concert tours, music awards, campus tours, etc. For the place as well,
they make themselves accessible to their target market through cable channels. Lastly,
they select only particular coverages that their market would embrace.

Promotions:
MTV always has many activities and programs that persuade target customers to patron
them. Examples of this is regular celebrity VJs that visit their hubs and singers/bands as
well that promote their upcoming tours/ or singles. Also, they now converge directly with
the youth through campus tours and sponsoring concert tours in universities.

Building Customer-Based Brand Equity:

Building a strong brand has been shown to provide numerous financial rewards to firms,
and has become a top priority for many organizations. In this report, author Keller
outlines the Customer-Based Brand Equity (CBBE) model to assist manage-ment in their
brand-building efforts.
According to the model, building a strong brand involves four steps:
(1) Establishing the proper brand identity, that is, establishing breadth and depth of brand
awareness,
(2) Creating the appropriate brand meaning through strong, favorable, and unique brand
associations,
(3) Eliciting positive, accessible brand responses, and
(4) Forging brand relationships with customers that are characterized by intense, active
loyalty.

Achieving these four steps, in turn, involves establishing six brand-building blocks—
brand salience, brand performance, brand imagery, brand judgments, brand feelings, and
brand resonance.
The most valuable brand-building block, brand resonance, occurs when all the other
brand-building blocks are established. With true brand resonance, customers express a
high degree of loyalty to the brand such that they actively seek means to interact with the
brand and share their experiences with others. Firms that are able to achieve brand
resonance should reap a host of benefits, for example, greater price premiums and more
efficient and effective marketing programs.
The CBBE model provides a yardstick by which brands can assess their progress in their
brand-building efforts as well as a guide for marketing research initiatives. Accordingly,
a set of candidate measures for the six brand-building blocks is included in the appendix.
In addition, a critical application of the CBBE model is in planning, implementing, and
interpreting brand strategies. The model provides a comprehensive means of covering
important branding topics, as well as useful insights and guidelines to help marketers set
strategic direction and inform their brand-related decisions. To provide perspective, the
paper also relates the CBBE model to other leading models of brand equity.

Question No.2) Discuss the role of the internet in MTV’s programming. How should
MTV best integrate the internet into its brand?

In the late 1980s, before the World Wide Web, in the days of the Gopher protocol, MTV
VJ Adam Curry began experimenting on the Internet. He registered the then-
unclaimed domain name"MTV.com" in 1993 with the idea of being MTV's unofficial
new voice on the Internet. Although this move was sanctioned by his supervisors at MTV
Networks at the time, when Curry left to start his own web-portal design and hosting
company, MTV subsequently sued him for the domain name, which led to an out-of-
court settlement.

The service hosted at the domain name was originally branded "MTV Online" during
MTV's first few years of control over it in the mid-1990s. It served as a counterpart to
the America Online portal for MTV content, which existed at AOL keyword MTV until
approximately the end of the 1990s. After this time, the website became known as simply
"MTV.com" and served as the Internet home base for all MTV and MTV News content.

MTV.com experimented with entirely video-based layouts between 2005 and 2007. The
experiment began in April 2005 as MTV Overdrive, a streaming video service that
supplemented the regular MTV.com website. Shortly after the 2006 Video Music Awards,
which were streamed on MTV.com and heavily utilized the MTV Overdrive features,
MTV introduced a massive change for MTV.com, transforming the entire site into
a Flash video-based entity. Much of users' feedback about the Flash-based site was
negative, demonstrating a dissatisfaction with videos that played automatically,
commercials that could not be skipped or stopped, and the slower speed of the entire
website. The experiment ended in February 2006 as MTV.com reverted to a
traditional HTML-based website design with embedded video clips, in the style
of YouTube and other popular video-based websites.

Today, MTV.com is still the official website of MTV, and it expands on the channel's
broadcasts by bringing additional content to its viewers. The site's notable features
include an online version of MTV News, podcasts, and a video streaming service
supported by commercials. There are also movie features, profiles and interviews with
recording artists and from MTV's television programs.

The channel responded to the rise of the Internet as the new central place to watch music
videos in October 2008 by launching MTV Music, a website that features thousands of
music videos from MTV and VH1's video libraries, dating back to the earliest videos
from 1981.

A newly created division of the company, MTV New Media, announced in 2008 that it
would produce its own original web series, in an attempt to create a bridge between old
and new media. The programming is available to viewers via personal computers, cell
phones, iPods and other digital devices.
Question No.3) how have MTV’s sister networks affected the parent channel’s brand
equity? What changes, if any, would you make in the positioning of the sister networks in
order to create more sources of equity for MTV?

Sister channels in the U.S.

MTV operates a group of channels under the name MTV Networks, a division of its
corporate parent, Viacom. In 1985, MTV saw the introduction of its first true sister
channel, VH1, which was originally an acronym for "Video Hits One" and was designed
to play adult contemporary music videos. Today, VH1 is aimed at celebrity and popular
culture programming. Another sister channel, CMT, targets the country and southern
culture market.

The advent of satellite television and digital cable brought MTV greater channel
diversity, including its current sister channels MTV2 and MTV Tr3s, which initially
played music videos exclusively but now focus on other programming. Music videos still
occupy most of the schedule on two additional channels, MTV Hits and MTV Jams.
MTV also broadcasts mtvU, a college-oriented channel on campus at various universities.

MTV Networks is the original music television broadcaster in the UK & Ireland. Today it
has a portfolio of ten channels - MTV One, MTV One +1, MTV Two, MTV Base, MTV
Dance, MTV Hits, MTV®, VH1, VH1 Classic and TMF. MTV Networks’ music
services are now reaching larger audiences than at any time in UK history, averaging
over 17 million viewers each month according to BARB research.

Brand judgments of MTV were typically based on four components that are: Brand
equality, brand creditability, brand consideration and brand superiority. The favorable
consumer response to the brand was achieved by MTV which was reached the brand
superiority. As a result, MTV attained brand resonance.
Brand Resonance:

The four components of brand resonance are:

1. Behavioral Loyalty.
2. Attitudinal attachment.
3. Sense of community.
4. Active management.

In the early years, MTV built loyalty and attitudinal attachment primarily with the music
videos and the general look and feel of channel. to build a sense of community and active
management, MTV used VJ’s held contests, hosted award shows, and ran some long
form programming

CONCLUSION:

MTV Networks has become a symbol of Globalization.

Adopted right International strategies and controls at the right time to regain its lost
popularity, especially in non-english speaking countries like Asia and Europe.

The rationale behind MTV's LOCALIZATION STRATEGY is to “get inside the heads”
of the local population and produce programming that matches their tastes and
preferences.