BM Session 1

+Welcome to the World of Brands.

+ Over the next couple of months, we shall explore

! Brand basics

! Jargon around brands !! Positioning, identity, archetypes, equity etc..

! Managing more than one brand.. Portfolio, extensions et al

! Managing brands in more than one country : global brands

! Managing brands when the going gets tough : Revitalization

! Measuring brand performance

+ A Few ground rules.. Actually just one ! Timely presence and submissions!!

! Delayed submission will not be accepted

+ .. And the important part..

! On going assessment ( 5 quizzes/ assignments) 30%

! Group Project 30%

! End term exam 40%

+Session 1 : Understanding Brand Anatomy

Some thoughts

+What we shall talk about today

! What are brands ?

! How brands and communication has evolved

! The role brands play in our lives and

! The role that we/ consumers play in the lives of brands

! The distinction and dependence between products- categories-brands..

+The Definition

Neha Markanda

Name, term, sign, symbol, or design, or a

combination of them, intended to identify the

goods and services of one seller or group of

sellers and to differentiate them from those of the

competition

Lets simplify.

Differentiate

Unique

Recall

+ There are ever so many layers to branding

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Neha Markanda

Brand components..

"People, place, animal or bird, scientific term, and things or objects.

"Branding could be done for product (physical good, retail store, person, organization, place, or an idea.

"Brand = product + other differentiating dimensions (physiological and psychological)

+ Anything can be branded!!

Commodity Services

Retailers/Distributors On-line product and services

+ Anything can be branded!!

Sports, Arts, and Entertainment People and Organizations

Ideas and causes Geographic locations

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"What does it stand for ?

"What does it do for the consumer? Role & relevance ??

"How does it help ? ( emotional functional ladder)

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Neha Markanda

+ Most brands almost always need to deploy two potent weapons

+ Lets unearth the first one..Whats this ??

A Normal Piece of Rock lying on the Ground?

+ Or Part of History?

Neha Markanda

+ Or part of record books ??

+ Whats happened here ??

! Successful brands tell compelling stories

! They build a world of intangibles and associations around the product that ignite imagination and desire

! It is the story that adds brand value raising the perceived worth of an object or service

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+Storytelling is knowing your punch line, your ending, and that every piece is leading to a singular goal.

Make your audience care about what happens next, and make them a promise!that the story will lead somewhere that's worth their time.

Storytelling without dialogue is the purest form.

We are problem solvers by nature.It's the absence of information that draws us in.

Set out to invoke wonder. Its the secret sauce.

Express values you personally feel deep down in your core.

Lessons in marketing from storytelling!!

+ Lets unearth weapon number 2!!

+ Neha Markanda

+Nestle Microsoft Motorola

Blackberry Renault

Toyota

ICC

Yamaha L&T

Tata

Neha Markanda

+! Successful Brands owns visual properties that have such Symbolic Value that the brand can be recognized without the name being given.

! It takes time to build an symbol, but the worlds most iconic brands are also the worlds most valuable brands

! Anything that represents a brand can be a symbolhowever, 2 types of symbols are highlighted Visual Imagery and Metaphors.

Neha Markanda

Brands and the power of symbols

+Source : Pearson Education, Inc. !Publishing as Prentice Hall

Why bother about Branding ??

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection

+Copyright 2009 Pearson Education, Inc. !Publishing as Prentice Hall 9-29

The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium

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! What are brands ?

! How brands and communication evolve and why ?




+ The theoretical genesis

+ The Rise of Advertising

! Rise of capitalism o Competition for resources (capital) stimulating demand for goods and services

! Industrial Revolution o Mass production of goods needed demand stimulation

! The Emergence of Modern Branding o Branding emerges to control the channel

! Rise of modern mass media o Democratization of goods

3

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+36

Dove: The Functional Era

! Launched 1957 as a beauty bar

! Feature: 1/4 Cleansing cream

! Benefit: Wont dry out your skin like soap

! Advertising focuses on its function: It moisturizes your skin

+37

Early Print Ads

9:;

+40

Company context : Unilever in 2000: The Path to Growth

! Bring 1600 brands down to 400

! Use Masterbrands

! A global brand unit for each Masterbrand

! Dove.....a soap.....becomes a Masterbrand

+41

2002: Dove as a Masterbrand

! Functional soap advertising just wont work anymore

! Dove should be a brand with a point of view

! The point of view should be: Real Beauty

+ Universal renditions

+43

Mission statement of the Campaign for Real Beauty

! If you are not crystal clear what the brands mission is, you cannot control what happens when people amplify it. Everyone working on Dove knows these words by heart. They know that the mission statement does not say Dove is about women feeling more beautiful, but that Dove is about more women feeling beautiful. Our notion of beauty is not elitist. It is celebratory, inclusive, and democratic. Philippe Harousseau, Unilever VP Brand Development

@A&

+ Learnings ?? What has changed over the years ?? Why ??

+Re assess the frame of reference for what

your brand stands for; without discarding

what the brand stands for

Doves mission is to make more women feel beautiful every day

by broadening the narrow definition of beauty and

inspiring them to take great care of themselves.

Evolution of brands, key take away #1

+ Key take away #2 : mapping consumer mood

+Pre-industrialization Era (pre-1800)

! Early ads resembled todays classifieds

The Era of Industrialization (1800-1875)

! Dailies grow in popularity

! Railroads spread the word

This has long been the case

+Slowly, Advertising finds fame and glamour

+ The Evolution of Advertising

Peace, Love and the Creative Revolution (1960-1972)

! Creatives gain control

! Advertising emerges as an icon of a

culture fascinated with consumption

The 1970s (1973-1980)

! Women and minorities adopt new roles

! Hedonistic values emerge

! Regulation and oversight take hold

+ the step jump route to transition

The Designer Era (1980-1992)

! Rapid-paced MTV editing becomes ad style

! Late night infomercial is born

The E-Revolution Begins (1993-2000)

! Stage I of the Web revolutionwith mixed results

! Problems with new media applications disappoint many advertisers

! Advertisers believed digital media would revolutionize measurementit didnt (yet)

3

+ .. And now..

Consumer Empowerment, Branded Entertainment, The Great Recession (2000-present)

! Consumer control emerges in this era ! Consumers begin co-creating ads defined as consumer generated content (CGC) ! Cultural contradiction, social disruptions and identity issues emerge ! E-business ! Firms invest in newer forms of connecting with consumers ! Branded entertainment

3

+Why am I stressing on this journey ???

+ The Value of History

Perspective: Despite new technologies

!Advertising is still a paid attempt to persuade

!Advertising will still contribute to revenue and profit growth and nurture brand success

!Big firms still spend billions on traditional media

!Technology/ societal realities do change the way people shop and the way they seek out and control information so look over the bend !!

3

55


! What are brands ?





+ These are chang(ing/ed) times..

Brands today are part of :

-Conversations

-Aspirations - Ferrari Ki Sawari!

-Needs-desire-wants

-Global currency

Ever wondered why there are recurring themes around which

brands are building equity

+ Its the call of the Consumer

3

59

Empowered Informed

Skeptical Individuality collectivism paradox

Demanding!!

Savvy consumers, maturing market,

brand proliferation

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+And thus, There is emergence of Mood Marketing

of Sustainability, Purpose, Consumer Awareness

.. Of Aggressive Crowd-sourcing By Brands

+B.and Rise of Prosumers , as more Social Tools are placed In the hands of Consumers

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TRANSACTIONS

TRUST

Engage and interact with consumers along a Maslow-like path


! What are brands ?





Source:!Figure drawn from Recording Industry Association of America statistics.

Mil

lion

s of

un

its

sold

650 600 550 500 450 400 350 300 250 200 150 100 50 0

1989

1991

1993

1995

1987

1977

1979

1981

1983

1985

1975

1973

Disc Albums

Cassettes

Compact disks

Identify industry, category, product and brand

Industry : Music Category : Musical genres Product : CD, cassettes, I pod, sites Brand : Sony, Apple, singers etc

So What ??

Apart from the fact that there are overlaps at times and one may be the sub set of another

What else ????

Power of Product- category- industry interface

+How brands/innovations/products manage to impact the PLC; impacts category and industry too..

Laggards: Fear of debt, neighbors and friends are information sources

Early adopters: Leaders in social setting, slightly above average education

Late majority: Skeptical, below average social status

Innovators: Venturesome, higher educated, use multiple information sources

Early majority: Deliberate, many informal social contacts

Time

Innovators 2.5%

Early adopters 13.5%

Early majority

34%

Late majority 34%

Laggards 16%

+Understanding Products

+Restaurant meal, cell phone, automobile tune-up

100% service

emphasis

100% physical good emphasis Blend of

physical good and service

Canned soup, steel pipe, paper towels

Satellite radio, hair styling, postal service

The Product Service continuum

+875

Product classification can help plan marketing strategies..

Really ???

+ What category do the following branded products belong to ??

! Kellogs chocos???

! Snickers chocolate????

+The basis of classifying Products could also be consumer driven

! Not on manufacturer terms but,

! On the way people think about and buy products

! Different groups of potential customer may have different needs and buying behavior for the same product.

! That same product could be placed in two or more product classes depending on the needs and behavior of target customers.

+ Example : Kodak disposable camera

+Tanya decided to take her friends to a water amusement park as

her birthday treat. She also wanted to take pictures so that shed remember the day, but didnt want her expensive digital camera to get wet near the pools, slides, and water rides. So, she decided she would also take a disposable camera at the start of the day--although she didnt want to spend more than Rs 1500 on top of what the park tickets cost. Tanya didnt know much about disposable cameras, but she went in the Camera Shop and asked the salesperson for advice about what to buy that would meet her budget, make pictures of reasonable quality, and hopefully work in the water. He recommended that she buy a waterproof Kodak model that came with high speed film and would even work for underwater shots.

Homogeneous Shopping Products

Heterogeneous Shopping Products

Impulse Products

Emergency Products

Staples New Unsought Products

Regular Unsought Products

Specialty Products 879

+Heterogeneous shopping product

Reason: Customer spends time and effort to compare quality and features, has little concern for brand, and is not too concerned about price as long as it's within her budget.

+ Classifying consumer products

Jayesh walked into a drugstore and told the attendant at the camera counter that he wanted to buy a disposable camera with a builtin flash. The attendant said the store carried several such cameras, including ones with the Kodak, Fuji, and CVS brands. "I'll take the one with the lowest price," Jayesh told the clerk.



Impulse Products

Emergency Products




+Reason: Customer apparently views all products with the features described in the case as homogeneous commodities--i.e., there is no perceived difference in quality or performance. Demand is very elastic, and the customer is willing to shop for the brand with the lowest price.

Homogeneous shopping product

+Divi was at her cousin's house and saw some photographs that her

cousin had taken with a Kodak disposable camera. She was so surprised by the quality of the pictures that she decided to purchase the same camera. The next day she went to a nearby camera store and found that the store did not have the Kodak in stockalthough it did have other brands in stock at about the same price. The salesperson in the store assured her that the others were just as good. But Divi ignored this advice and tried two other stores that were also out of stock. Getting frustrated, Divi was ready to drive across town to a Croma store. However, when she stopped for fuel at a convenience store, she came upon a display of Kodak disposable cameras. She quickly bought oneeven though she felt the price would be lower at Croma.



Impulse Products

Emergency Products




+ Specialty product

Reason: Customer displays brand insistence and a willingness to spend considerable time and effort searching for the product. Price is not critical, and customer will not accept substitutes.

+While deepsea fishing off the coast of Hawaii, Toby caught a large swordfish. He decided that his friends back home would never believe his "fish story" if he didn't have pictures. But he did not have a camera. As soon as the boat got back to the dock, Toby went to a nearby tourist shop. He was pleased to see a display of Kodak disposable cameras, but was sorry to see a much higher price than the same camera sold for in his hometown. He bought one anyway, because he wanted to take some pictures right away before the fish was taken away to the fish market.



Impulse Products

Emergency Products




+ Emergency convenience product

Reason: Customer has immediate need for product: price and perhaps even quality are of small concern. Demand is inelastic and place is important.

+Veena teaches high school science courses. She spends most of her leisure time doing amateur photography. In fact, she enjoys photography so much that for several years she has volunteered to teach the advanced photography workshop offered by the School. She has won several awards for her photographs of mountain landscapes. Veena has even earned extra cash by selling some of her photos to companies that print postcards. Several of her friends have encouraged her to turn professional, but she prefers using her talents mainly as a hobby.



Impulse Products

Emergency Products




+ Unsought product (probably regularly unsought).. Its tricky!

Reason: A serious camera enthusiast would probably want highquality equipment. He probably would not consider buying a Kodak disposable camera--unless an additional promotion theme was used (e.g., promote the camera as a handy spare or for kids to use etc).

+Classifying consumer products

While Huma was shopping in her local supermarket, she came upon an end-of-aisle display with several different types of Kodak disposable cameras. At first, she doubted the product quality because the cameras all had plastic lenses. But remembering the Kodak advertisements she had seen on television and in magazines, she decided to buy one so that her grandchildren, who were visiting for the week, could take pictures during their stay.



Impulse Products

Emergency Products




+ Impulse convenience products

Reason: Customer has decided to buy on sight--an unplanned purchase. She is unwilling to search for a better buy. Place and price are important, as is advertising in this case.

+ To conclude

+ Annexure

+! Product brand -- the specific version of a product offered by a particular company

! Product class -- refers to the entire product category or industry such as video games

! Product form -- pertains to variations within the product class

Marketing objective

Gain Awareness

Stress differentiation

Maintain brand loyalty

Harvesting, deletion

Competition None Growing Many Reduced

Product One More versions Full product line Best sellers

Price Skimming or penetration Gain share, deal

Defend share, profit Stay profitable

Promotion Inform, educate Stress competitive differences

Reminder oriented

Minimal promotion

Place (distribution) Limited More outlets

Maximum outlets Fewer outlets

Stage of the product life cycle Sa

les

reve

nu

e or

pro

fit Introduction Growth Maturity Decline

+ 0

Total industry sales revenue

Total industry profit

BM Session 1

Documents

Transcript of BM Session 1