Brand Success

7/30/2019 Brand Success

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WHAT IS BRAND SUCCESS ?

How do you define it.

Does it mean the market share .

Or the growth.

Or the profit.

Or all the three.


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What is it

?


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What literature reveals

There is no direct definition of BRANDSUCCESS

They deal with the organizational success.

The definitions and explanations available are classified under 8headings.

I. Strategic success.

II. Pioneer Advantage. Strategic level

III. Product success.

IV. Product failure. Product level

V. Successful brands.

VI. Brand failure. Brand level

VII. Common sense definitions. &

VIII. Other definitions.


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STRATEGIC SUCCESS

Hamel & Prahlad give an anatomy ofstrategic failure.

Failure results from unseen strategicintention of competitors, orunderestimating their unconventional entrytactics. This leads to competitive surprise,lost battles and eventual exits.


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When a product can be considered

a failure

Ask 4 questions.

1. Did we learn anything to improve next time?

2. Did we have reasonable expectations from the

market?

3. Can we quickly recalibrate and try again?

4. Does the potential of opportunity warrant anothertry?

NO


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Strategic success contd

Hamel and Prahlad point to strategicintent(how an organization looks at itselftomorrow) as the most important factor

that contributes to organizational success.

A company can be successful in the long run

only if it creates competitive space beyond itscurrent business.


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PIONEER ADVANTAGE

There is no conclusive evidence to suggest that being apioneer is always advantageous.

E.g.

1. Lambretta the pioneer in the scooter market in India

lost out to Bajaj.2. Suvegain mopeds lost out to Lunaand TVS.

However it is difficult to reject pioneer advantage

outright.E.g.

Pioneer brands like Lifebuoy and Lux still retain a highmarket share in India.


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What the GURU's say.

Robinson & Fornellconclude from their analysis that pioneeradvantage is a major determinant of success in consumer

goods business.

Murthi & colleagues conclude that pioneer status has anadvantageous impact on market share irrespective of

managerial skills exercised by the firm.

Golder & Tellisconclude the opposite. They say that the firstfew companies, not necessarily the very first have had longterm success.

Roger Kerin & colleaguessay first mover status may or maynot produce sustainable advantage due to multiple


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Bottomline

Though the pioneer status gives an

initial lead, much depends on howpioneer advantage is put to use.


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PRODUCT SUCCESS.

Hamel & Prahlad point out that success ininternational markets come from rapid introduction

of incrementally better products.

Levitt proposes that differentiation is the key toproduct success.

Subhash Mehta & Anil Pandya use severalvariables like brand loyalty, quality variations,

certainity of untried brands, danger ofconsequences, price yquality relationship,

confidence to judge quality and technological

complexity to predict new product success.


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PRODUCT FAILURE.

Chibba calculates Delta Habit Factor to predictsuccess of a brand. This is based on the followingfactors.

1) Changing duration of consumption of the product.2) Evolving new occasions for the use of the product.

3) Changing sharing habits of the product.

4) Changing buying habits of the product.

5) Doing new things.6) Changing the frequency of the consumption of the

product.

In short for products to succeed they should

display the ability to change usage/ buying


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PRODUCT FAILURE contd..

A consumer will not change his habits unless

adequate reasons are provided to him for

shifting over.

Modified definition of Chibba.

Products that assists consumers functionally

or psychologically are the ones that achievesuccess.


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SUCCESFUL BRANDS.

David Arnold mentions four criteria for thesuccess of a brand. These are.

1. At the product level it should deliver benefits.

2. It should offer some intangibles besides tangiblebenefits.

3. The benefits it offers must be consistent with its

personality.

4. The benefits offered must be relevant to thecustomer.

Stephen King opines that a successful brand

should be seen as delivering something more than


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BRAND FAILURE.

Hugh Davidson analyses brand failures in UK andconcludes that most brands that fail are me-toos

Successful products display one or more of the

following characteristics.a) A significant price or performance advantage.

b) Some significant difference from the existing brands.

c) A new untried idea.

Merely trying a new idea may not cause successthough an interesting idea is more likely to betried.


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COMMON SENSE

DEFINITIONS

What should be the benchmark of success?

a) MARKET SHARE.

b) PROFIT.c) DURATION (No. of yrs of stay in the market).

d) COMBINATION OF ALL.

Profit should not be included in the analysis as itis

fn ( Staying power of orgn, objectives of the orgn)


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COMMON SENSE DEFINITIONS

contd

However, research leads us to believe thatirrespective of an organizations objectives ,there is a threshold market share or a criticalsales volume that a national brand shouldacquire if it has to be viable.

Market share as a primary measure, along

with the number of years of stay in the marketas a supplementary input is a good compositeof brand success.


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OTHER APPROACHES.

Consumer focused study.

Response is solicited through attitudinal statementsand the brands are rated.

LIMITATIONS:

It identifies brands that are liked and notnecessarily brands that are successful.

It is possible that the brand is liked and yet fails inthe market.


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THE DEFINITION OF BRAND

SUCCESS

Brandsuccess is the ability to

retain a reasonable marketshare despite market

redefinitions.


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MARKET REDEFINITION.

Put forward by Abell

Comprises of SEGMENT REDEFINITION.

PRODUCT REDEFINITION.

CATEGORY REDEFINITION.


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SEGMENT REDEFINITION

When consumers move in large numbers from

high price segment to low price segment and

vice versa.

E.g..

1. NIRMA high price to low price

segment.2. TITAN low price to high price

segment


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PRODUCT REDEFINITION.

Takes place when the products form, shape,

taste, packaging etc. change, leaving laggard

brands behind.

E.g..

1. Satchet shampoos pioneered by VELVETTE

and CHIK.2. CLOSE UP gel toothpaste.


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CATEGORY REDEFINITION

It happens when a completely different product

becomes a competitor.

E.g..

1. Tropicana, Real fruit juice, Frooti, Appy fizz.

2. Shikakai soap.

3. PVC pipes.

Brand Success

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