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+

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 productscategories-brands..

The Definition
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

Neha Markanda

Lets simplify.

Differentiate

Recall

Unique

+ There are ever so many layers to


branding

+ Brand components..
!"#$%&'&!"#$%&'&3&4$+#$-(/5*1&

"People, place, animal

or bird,
scientific term, and things or
objects.
"Branding

!"#$%&'&($)*"*$+&,*#$($-.
#++"(/0+*1./*$*2+1&

could be done for


product (physical good, retail store,
person, organization, place, or an
idea.
"Brand

= product + other differentiating


dimensions (physiological and
psychological)
!"#$%&'&6755*8+(7$&79&4,:"*11(7$1&

Neha Markanda

+ 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

+
!"#$%&'&!"#$%&'&3&4$+#$-(/5*1&

"What

!"#$%&'&($)*"*$+&,*#$($-.
#++"(/0+*1./*$*2+1&

"What

does it do for the consumer?


Role & relevance ??
"How

!"#$%&'&6755*8+(7$&79&4,:"*11(7$1&

does it stand for ?

does it help ? ( emotional


functional ladder)

Product is what it does for you; Brand is


the role it plays in your life
E)D06*F0(*#601&
'--#"*0(*#6-&
<#,6()2&#?&&
E)*D*6&
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!"#$%&'(
!"#$%&&
'(()*+,(%-&
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5,6"(*#601&+%6%7(-&

@;#(*#601&
8%6%7(-&

Neha Markanda

8)069&&
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!2;+#1-&
8)0693&&
<,-(#;%)&&
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!%1?&@A$)%--*B%&
8%6%7(-&

+
!"#$%&'&!"#$%&'&3&4$+#$-(/5*1&

!"#$%&'&($)*"*$+&,*#$($-.
#++"(/0+*1./*$*2+1&

!"#$%&'&6755*8+(7$&79&4,:"*11(7$1&

" Beyond

the 30 seconder
" Intended + unintended messaging

+
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J%K3&
@;%)D*6D&&
G%9*0&L&
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Consumer

:)#;#(*#6&

E6%&(#&E6%&
:,+1*"&=%10(*#6&I&@B%6(&
Neha Markanda

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+ 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

G#6%(0)2&401,%&

!(#)2&401,%&

+ Lessons in marketing from


storytelling!!
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.

+ Lets unearth weapon number 2!!

Neha Markanda

+
Microsoft

Nestle

Motorola

Blackberry

Toyota

Renault

ICC
Tata
Yamaha

Neha Markanda

L&T

+ Brands and the power of symbols

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.

+Why bother about Branding ??


Identify the maker
Simplify product
handling
Organize accounting
Offer legal protection
Source : Pearson Education, Inc. !Publishing as Prentice Hall

+The Role of Brands


Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
Copyright 2009 Pearson
Education, Inc. !Publishing as
Prentice Hall
9-29

An example
!"#$"%&'$&()*+),-'$."$#)
)*+'(,#-+(./0()*+'(!+1/*(*2(34*2$(56/'+(
5+/'(
:)%?%)&:%$-*&&MNO&
:)%?%)&<#H%&PQO&
J#&$)%?%)%6"%&RO&

Neha Markanda

)*+'(,#-+(./0()*+'(!+1/*(*2(7$+2'*8+$(
56/'+(5+/'(
S+)069&60;%-&)%B%01%9T&
:)%?%)&<#H%&UMO&
:)%?%)&:%$-*&RVO&
J#&:)%?%)%6"%&NRO&

Neha Markanda

What we shall talk about today


!

What are brands ?

How brands and communication evolve and why ?

The role brands play in our lives and

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

The distinction and dependence between productscategories-brands..

+ 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

34

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"#$0&*4$&0$7$,*&*+8$3&

!"#$%&'#"()*+",&"-&.&/0.,1&

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

36

Early Print Ads

9:;<=3&

37

9:><3

&&

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+ 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

40

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

41

+ Universal renditions

+ 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

43
@A&

+ Learnings ?? What has changed


over the years ?? Why ??

+ Evolution of brands, key take away


#1
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.

+ Key take away #2 : mapping


consumer mood

+ This has long been the case

Pre-industrialization Era (pre-1800)


!

Early ads resembled todays classifieds

The Era of Industrialization (1800-1875)


!

Dailies grow in popularity

Railroads spread the word

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
! Late

MTV editing becomes ad style

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)

+ .. 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
!

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 !!

55

What we shall talk about today


!

What are brands ?

How brands and communication evolve and why ?

The role brands play in our lives and

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

The distinction and dependence between productscategories-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

59

Savvy consumers, maturing market,


brand proliferation

Individuality
collectivism paradox

Skeptical

Informed
Media fragmentation

decreasing brand loyalty.

Empowered

Demanding!!

Today, The Consumer Truly Is KING

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-(1:*$1"7($(11)8"66)=()>(;)

+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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And Marketers Are Recognizing This Altered


Power Equation

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FROM TRANSACTIONS
TO

Engage and interact with consumers along a


Maslow-like path

TRUST

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TRANSACTIONS

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What we shall talk about today


!

What are brands ?

How brands and communication evolve and why ?

The role brands play in our lives and

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

The distinction and dependence between productscategories-brands..

Identify industry, category, product and


brand

Millions of units
sold

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

Disc Albums
Compact
disks

1995

1993

1991

1989

1987

1985

1983

1981

1979

1977

1975

1973

Cassettes

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

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..
Early adopters
13.5%
Innovators
2.5%

Early
majority
34%

Laggards
16%
Late majority
34%

Time
Innovators:

Venturesome, higher
educated, use
multiple information
sources

Early majority:

Early adopters:

Laggards:

Deliberate, many
informal social
contacts

Leaders in social
setting, slightly above
average education

Late majority:

Fear of debt,
neighbors and friends
are information
sources

Skeptical, below
average social status

Understanding Products

+ The Product Service continuum

Canned soup,
steel pipe,
paper towels
100%
physical
good
emphasis

Restaurant
meal, cell
phone,
automobile
tune-up

Satellite radio,
hair styling,
postal service
100%
service
emphasis

Blend of
physical
good and
service

+ Product classification can help


plan marketing strategies..

Really ???

875

+ 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
Staples
Shopping Products
New Unsought
Products
Heterogeneous
Impulse Products
Shopping Products
Regular Unsought
Products
Emergency 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.

Staples

Homogeneous
Shopping Products

Impulse Products

Heterogeneous
Shopping Products

Emergency Products

Specialty Products

New Unsought
Products
Regular Unsought
Products
881

Homogeneous shopping product

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.

+
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.
Staples

Homogeneous
Shopping Products

Impulse Products

Heterogeneous
Shopping Products

Emergency Products

Specialty Products

New Unsought
Products
Regular Unsought
Products
883

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.
Staples

Homogeneous
Shopping Products

Impulse Products

Heterogeneous
Shopping Products

Emergency Products

Specialty Products

New Unsought
Products
Regular Unsought
Products
885

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.
Staples

Homogeneous
Shopping Products

Impulse Products

Heterogeneous
Shopping Products

Emergency Products

Specialty Products

New Unsought
Products
Regular Unsought
Products
887

+
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.

Staples

Homogeneous
Shopping Products

Impulse Products

Heterogeneous
Shopping Products

Emergency Products

Specialty Products

New Unsought
Products
Regular Unsought
Products
889

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

Sales revenue
or profit

Marketing
objective

Stage of the product life cycle


Introduction

Growth

Maturity

Decline

Total industry
sales revenue
+
0

Total industry profit

Gain
Awareness

Stress
Maintain
differentiatio brand
n
loyalty

Harvesting,
deletion

Competition

None

Growing

Many

Reduced

Product

One

More versions

Best sellers

Price

Skimming or
penetration

Gain share,
deal

Full
product line
Defend share,
profit

Promotion

Inform,
educate

Stress
competitive
differences

Reminder
oriented

Minimal
promotion

Place
(distribution)

Limited

More outlets

Maximum
outlets

Fewer outlets

Stay profitable