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Brand Concepts &

Strategy
IGTC 2003
Structure
• What is a Brand?…. Product vs Brand
• Brand Identity … Developing a Brand
Framework
• Brand Strategies … Extension &
Revitalization
What is a Brand?
Essence of a Brand : Aaker
• “A company’s brand is the primary source
of its competitive advantage and a valuable
strategic asset.”
• “The challenge for all brands is that they
have distinct clear image that matters to
customers and truly differentiates from the
rest.”
• 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.
Product vs Brand
• A product is made in a factory… A
Brand is bought by the customer.

• A Product can be copied… A brand is


unique

• A Product is quickly outdated…A


Brand is Timeless
Product vs Brand
Brands differentiate Products
• Fairness Creams: Fair & Lovely vs Ponds
Dream Fairness
• Coconut Hair Oil: Parachute vs Dabur Vatika
• Cola: Coca Cola vs Pepsi

Products largely undifferentiated: Product choice


function of Convenience / Availability / Price.
• Petrol : BPCL vs IBP vs ….
• ATM : HDFC vs HSBC vs ….
• Mineral Water : Bisleri vs Bailey vs Kinley …
Product Levels : Kotler
• Core Product: Core Benefit or service

• Tangible Product: Brand Name,


Packaging, Features, Quality, Styling

• Augmented Product: After sale service,


Installation, Delivery & credit, Warranty

Eg: Consumer Goods … Products extending


Services … Asian Paints: Painting Homes;
Surf: Laundry
Brand Image vs Brand
Associations vs Brand
Personality
Brand Association

Personality Based on:


• Expression of self or User Imagery
Eg: Nike – Achivement Performance
• User/Customer – Brand Relationship Eg: McDonalds- Fun
Family
• Functional Benefit – Association Based Eg: Gujarat
Ambuja- Strong Man
Identity vs Image
Consum Corpor
er ate
Brand Noise Brand
Image Identity
Market,
Competition, Strategic
Media Vision,
Business
Needs
What is Brand Identity?
• Simply put: What does a Brand stand for?
• Heart and Soul of the Brand: Brand Constitution,
Brand Framework
• Provides Strategic Vision – Direction, meaning,
purpose to the brand
• Combination of Brand Vision, Purpose, Values &
Associations
• “… 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
What is not Brand Identity :
Traps
• Brand Image Trap: Eg: Denim: Macho
– Based on consumer perception. Tactical, Reactive
– Lacks Strategic Future Perspective
• Brand Position Trap: Eg: Elle 18 : Teenagers
– Based on Competitive Advantage. Relates to current market
scenario, consumer needs. Communication captures only a
particular aspect of the Brand
– Limited Scope. May not be applicable in the Future
• External Perspective Trap: Eg: Tata: Trusted Quality
– Customer centric, lacks employee buy-in
• Product –Attribute Fixation Trap: Eg: Britannia Biscuits
– Based on Product Attributes, Product Benefits
– Limits the expansion of the Brand... Open to threat as it
equates the Product to the Brand
Brand Concepts
SENDER
BRAND
Brand
Framework

Product
Framework

How it does?

PRODUC
What it does?
T/S
RECEIVE
Associations
R
Brand Image , Personalities,
How? – Strategic Brand
Analysis
Processes: Semiotics- Image Study: Factor Analysis-
Attribute Rating, Perceptual Map, Cluster
Analysis- Profiling
Consume
r
Image
Needs
Trends
Performan
ce
Image Image
Heritage Positioning
SWOT Communicati
Company Relationsh on Competit
ips SWOT or
Brand Identity Systems:
Aaker
Brand as an ORGANISATION

Extended Identity
Brand as Core
BrandIdentity
as
PRODUCT
PERSON
(Peripheral Support Values)

VALUEBrand
PROPOSITION
as Symbol
Functional + Emotional + Self
Expressive Benefits
SUPPPO
RT
McDonald’s Brand Identity
System
Efficient Service, Hygienic, Clean , Smart

VFM, Tasty, Service


VFM, Fun, Happy,
Quality, Burgers
Hygiene, Friendly,
& Fries, American Ronald Family, Warm,
Happy
Happy Meal
Family Outgoing
Promos Fun

Ronald, Happy Meals, Parties

Tasty, VFM Burgers, Fries & Drinks


Create environment to provide fun &
entertainment For family and kids

Ronald, Happy Meals.


Clean Environment, Efficient Srvice
Why ? – Leveraging Brand
Identity
• Guides Brand Strategy
• Strengthens Brand Memorability,
Communication, Associations
• Provides Brand Extension possibilities
• Assists Portfolio Reorganization
• Improves Competitive Advantage
• Adds Value to organization – Market Value
• Gives a sense of direction to employee
When? – Change vs
Consistency
• Need to change Identity Position
Communication:
– Poorly Conceived Mismatch: Digen Verma
– Obsolete: Philips… Innovation
– Shrinking Audience: Ponds … Oil Control
– Not Contemporary: Lakme…Fashion
– Fatigue: Britannia… Health & Nutrition…
Intelligence
Need For Consistency
• Brand Building takes time:
– Amul girl & Utterly Butterly Delicious Amul
– Marlbro Rough Cowboy
• Results in Cost Efficiencies
Organizational Pressures to change:
– “Change” a solution to all problems
– “Facelift” to fight Boredom
– “Self-Promotion”
BRAND-WAGON

BRAND
ENGINE
Marketing
Busines Segmentati Mix
s Brand on Product/Pkg Mktg Sales
Potenti Value Target Price Plan Plan
al Positioning Place
Promotion

BUSINESS STRATEGY MARKETING STRATEGY


SALES STRATEGY
Brand Strategies
To Fuel the Brand Engine
• Strategy 1:- Extension- Giving birth to
new product brands
• Strategy 2 :- Revitalization- Injecting life
to the existing brand
Revitalization:- Injecting life to same
brand, energizing a mature brand

Need to inject life into the Mature Brand


“Facelift” … Recharging the Brand
Batteries
Brand Decisions: Leveraging
Brand Identity

• Brand Extension Strategy


• Brand Revitalization / “Restage”
Simply Put…
• Brand Identity: What does a Brand mean / stand for
• Brand Extension: What would you like (enjoy, love,
admire) the brand to do for you.
• Brand Revitalization: How would you like to see the
Brand tomorrow (Future Expectations).
• Brand System / Architecture: What are the
important Relations that the Brand has
• Brand Limitations: What would you dislike (hate,
anger, shame) the Brand to do.
Brand Extension Strategy
Need for Brand Extension
• Brand Growth
– Mature brand : provide fillip to stagnating
sales
– Threat of new entrants: Protect Market Share
– Strengthen franchise
• Enhance Brand Image
– Strengthen Brand Identity
– Revive core values
– Reposition core values
Ways in which a Brand can be
Extended
1. Line Extension
2. Brand Extension
3. Multiple Brands
4. New Brands
Line Extension Strategy
• Extend existing brand name to existing product
category: Identify & occupy different segments
of the market – “market fragmentation”

– Pack variants: shampoos: sachets to economy


packs… tubes to jars, bottles to cans : differentiate
uses
– Price variants: Rin Shakti to Rin Supreme. Taj Luxury
to Taj Executive: differentiate user groups…
Parachute Uttam (differentiate markets)
Line Extension Strategy
• Flavours / Variants: Diet Coke, Sunsilk Black,
Parachute Lite…. Hair type, skin type, user
groups: Differentiate user needs
… Colgate Gel, Maggi Chinese Noodles
• Ingredient Lead: Lux Sunscreen, Pond’s Talc
with SAM : upgrade user needs
… Head & Shoulders… ZPTO, Menthol
Brand Extension Strategy
• Extend the brand name to a new Product
Category: Brand fit in a new business area
– Supplementary Categories: BPL TV to Washing
machines, Maggi soups & sauces, Lakme
lipsticks to perfumes
– Complementary Categories: Colgate toothbrush
& toothpaste
– Image Accessories: Bennetton T-shirts to sun-
glasses, Nike sports shoes to T-shirts
– Diverse Categories: Similar core values:
Britannia biscuits to dairy products. Dabur
Chavanprash to Vatika
Multiple Extension Strategy
• New Brand names in the same product
category “market saturation”
• Expensive strategy: Leading corporates…
often through acquisitions… economies of
scale
– HLL soaps- Lux, Breeze, Kai, Hamam, Lifebuoy,
Dove, Pears
– P&G Detergents: Ariel, Tide
– Coca Cola: Coca Cola, Thums Up…
– Lakme: Elle 18, Orchids
– Nescafe, Sunrise
New Brand Strategy
• New Brand Name for a product
category: poor brand fit but
business potential
– Kotex to Kleenex
– Huggies to Depend
– Thums Up to Gold Spot, Pepsi to Mirinda
– Lakme to Elle 18
Stretching the Brand
Vertically
Understanding the terms:
• Vertical stretch: Technically a Line extension since it is the
introduction of Price Variants of an existing Brand in the
existing Product Class

• Stretching Up: Extending the Brand to a Higher Priced


Segment
Eg: From Surf detergent 500g at Rs 43 to Surf Excel
detergent 500g at Rs 60

• Stretching Down: Extending the brand to a Lower Priced


Segment
Eg: From Ariel Washing Powder to Ariel Gain Washing Powder

Note: Both products co-exist at 2 different Price Points


under the same brand
Brand Stretch & Market
Segments
STRETCH
UP
Image

Potential
Brand

Market
EXISTING
BRAND

STRETCH
DOWN
Brand Extension Horizons
Brand Extension
Horizon 2

Brand Extension
Horizon 1

Line Extension
Horizon 1
Effect of Brand Extensions
• More Good: Extension enhances
Brand name.
• Good: Extension aids Brand Name
• Bad: Extension fails to help Brand
Name
• Ugly: Extension Damages Brand
Name
• More Ugly: Brand Name is Forgone
Post Mortem
• Colgate Gel: More Good
• Rexona Does: More Good
• Close Up Whitening: Good or Bad ? (credibility?)
• Amul Pizza : Good or Bad (price?)
• Britannia Cheese, Ghee… More Good
• Sunsilk Hairoil : Bad (Identity or product?)
• Diet Coke: Bad… Good?? (Identity… Market
evolution)
• Frooti Apple Drink: Ugly (Identity?)
Note…

Good understanding of the Brand


Identity… may or may not lead to the
Success of the Brand Extension.

But a poor understanding of Brand


Identity will definitely lead to the
failure of the Brand Extension… &
may also damage the existing Brand.
Brand Revitalization
• Inject life into a Mature Brand = Facelift
• Enhance Brand equity: improved
recognition, enhanced perceived value,
changed associations, an expanded
consumer base & or increased loyalty
• Movement from milking Cash Cows to Brand
Restage (External Stars), ina competitive
context
• Recognition of the Power of Old Brands vs
the Expense & Risk of Creating New Brands
Brand Revitalization/
Rejuvenation Efforts to extend
the Brand Life Cycle
SALES

Prevent
further
Decline,
retain
sales
growth

TIME
Today’s need:
Continuous Process of
Revitalization

Revitalization:
Starts at an
Sale

early stage
before a brand
s

shows a decline
in Sales

Time
Ways to Revitalize
Increased Repositioni
Usage ng

New Augmenting
Users Product

Obsolescing
New Product
Markets

Extensio
ns
Increased Usage
• Increased Salience: Dettol
• Increased Frequency/Regular Use:
Shampoos : Head & Shoulders,
economy pack, travel pack
• Incentives/Promotions: Filmfare,
Frequent Flier Programs
New Uses
• New Gifting Solutions: Tiffany’s &
Cadbury’s
• Festive Occasions: Asian Paints
• Multiple Functional Uses: Milkmaid
recipes
• Behavioral shifts: Moov – Sprains to
Back Aches
New Markets
• Redefine Target Segment: Cadbury’s
Dairymilk Chocolates for Adults
• Growth in new segments: Personal
Computers
Repositioning the Brand
• Image Upgrade: Philips “Lets make
things Better”
• Revive Image: Lakme, Dettol
• Change Association: Britannia
from biscuits to healthy food
Augmenting the Product
• Packaging Upgrade: Crocin,
Shampoo, fliptops
• Product Upgrade: New improved
Lux
• Increased Customer
Involvement: Wills & Cricket,
Sunsilk & Parlours, Surf & Laundry
Service
Obsolescing the Product
• Fashion Products: Colour cosmetic
range, Revlon, Designer Watches-
Titan
• Technology Products: Sony
Music… mobiles… Windows
• Dying Categories: Pond’s vanishing
cream – Oil Balanced Formula
Restage Vs Re-engineer
• Restage: Maintain the Star Status of a product
through constant innovation & activity to
CONTINUOUSLY enhance the brand equity
salience over a period of time

• 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
Remember… If you don’t,
someone
else will

What Iodex did not do, Moov did.


What HMT did not do, Titan did.
What Indian Airlines did not do, Jet
Airways did.
Brand Exercise
• Develop a Benefit Ladder for the product Category
based on Consumer needs / Motivation
• Create a perceptual map for the leading 3-4 brands
in the Category
• Outline the Brand Image (from consumer research
& Brand Values assuming the role of the Company)
• Give 3 possibilities of Brand extension, Line
extension and Brand Revitalization
• Develop a brand Positioning Statement
• Identify a consumer insight which you can use in
your communication
Motivation Perception Image
Insight…. Question Bank
1. How would you describe Hit as a person vs Raid vs
Baygon?
2. Imagine 10 years from now, where would you see these
people… (individually)
3. Can you describe their family members
4. Which animal would you associate with the following
brands?
5. Which Car would you associate with eash of the above
brands?
6. Which celebrity / sport person would you associate with
each of the above brands?
7. Which kind of person do you think will use the above
brands?