What are brands good for?

Brands are an indispensable part of modern business

Brands promise to provide a clearly stated benefit

And sets them apart from the rest of their competitors

Brands are remarkably efficient in “aggregating” customers

The information revolution is undermining the logic of “aggregation”

Consumer “disaggregation” is more efficient and profitable than “aggregation”

Consumer “disaggregation” is moreflexible, adaptive and responsive to

consumer needs

It effectively and efficiently drives ”two way communication”

Core areas of “Brand Management”

Consumer relationship

Channel relationship

Organization of brand management

The most valuable strategic function is to “build consumer relationships”

“Two-way” flow of communication builds relationships that grow

Advantages of disaggregate marketing

• Quicker to respond to consumer needs

• Better ability to tailor their offerings• Influence customer buying

patterns• Reduced costs• More efficient targeting

How disaggregationdoes it better....

Building trust and credibility

Communicating a key benefit

Charging a price premium

Increasing sales volume

Increasing likelihood of purchase

Responding to competitor’s moves

“Disaggregation restores the imbalance of power between the manufacturers and theretailers”

is providing to be an impediment to the adoption of consumer level disaggregation initiatives

Disaggregation’s impact on brand management

So, the focus point should be on the consumers rather than the brand

We need 3 elements in the new structure

1.Relationship-building entity and mechanism

2.Targeted communications that can exert a tactical influence on customer behaviour

3. Obtaining expertise in new-product and brand development so that the portfolio of products can be continually

rejuvenated

Other changes in the new structure

• Required in the measures they use to gauge success

• Required in incentives and awards used to motivate people

• The way they deploy resources to the market

• The manner in which teams co-ordinate their market opportunities

Created by Yash Akshay Reddy, SVCE during an internship by Prof. Sameer Mathur,IIM Lucknow www.iiminternship.com