Name: K.

Module: Principles of Marketing (MKT1003)

Date of submission: 23rd March 2011

Case study: Mr. Bean: The Brand with a Big Heart

1) What are the roles and benefits of branding to sellers and buyers in the food and beverage business? Is branding only for big companies? Why or why not?

The role of branding is to create an identity for the seller or the company, A basic decision in marketing products is branding, in which an organisation uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors. (Kerin, Hartley, 312) It is one of the many factors that a company has to depend on, apart from other marketing strategies such as advertising. In fact, the brand in itself, once established, can be included in its marketing moves and stress the uniqueness of the sellers product. In the food and beverage (F&B) business, the role of branding is slightly different. F&B businesses have a large target audience, attempting to appease the appetites and quench the thirsts of the consumers. The business is such that there would be perpetual demand but also high competition due to the nature of foodstuff sold. However, it would be still useful to the seller to brand his products. This is so as to instill confidence in the consumer to choose one product with probably similar tastes over another. This would be beneficial for the seller as he is able to retain a significant hold on the buyers choice. The benefit achieved by the buyer cannot be explained by profit figures but has got to do more with the psychological aspect of the consumer. This can be explained by, brand equity, the added value a given brand name gives to a pr oduct beyond the functional benefits provided Brand equity resides in the minds of consumers and results from what they have learned, felt, seen, and heard about a brand over time. (Kerin, Hartley, 313) For instance, if one took a look at the bubble tea business, like most F&B businesses, it can be categorized under monopolistic competition. Sweet talk, KOI caf, Cup Walker, Each a Cup are just some competitors related to just one type of product; bubble tea. But it is not wrong to state that each competitor has undertaken different marketing strategies from pricing to mode of service (selling of bubble tea according to queue
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number in the case of KOI caf) and most obviously, the brand name of their bubble teas. Furthermore, in the F&B business, the seller has to ensure that his product is not just seen as a seasonal good. The products have to remain relevant to the tastes and preferences of the buyers. This is where it can be understood that not only big businesses but even small enterprises have to utilize branding as one of their marketing methods. In such a case, the company has to decide on a brand name that is not generic and used interchangeably with other brand names. Like the bubble tea example cited earlier, the name should relate to the product that is being sold and, the name should be memorable, distinctive, and positive. (Kerin, Hartley, 316) In smaller companies like in the case of Mr. Bean, it acts as, an example of how local food and beverage enterprises can successfully reposition themselves and expand their market share by competing on attributes other than price. (Kerin, Hartley, 327) Hence branding even in small businesses is beneficial to both the seller and buyer. 2) What constitutes the brand identity of Mr. Bean? What is your evaluation of the Mr. Bean brand identity? What will you add and what will you subtract from this identity?

There are three main determinants that constitute the brand identity of Mr. Bean. These factors can be categorized under familiarity of product, the Asian factor and the health benefits derived by consuming soya products. Here it is important to discuss the catch phrase used by Mr. Bean, lifes simple pleasures. The phrase captures the very essence and nature of the product. Mainly focused on drinks, the products sold are indeed simple and soothing regardless of weather conditions. While evaluating this identity, firstly, Singaporeans are familiar with soya products, beyond ethnic or religion lines. Selling mostly vegetarian products and being approved by the HALAL Board, the brand surpasses any potential barriers to reach the target consumer group. The brand image is easily identifiable and appeals to people of different age groups. Furthermore, the word Mr. Bean itself is already made popular by

the Mr. Bean comedy series which is recognized by Singaporeans as well. It is a name that is not easily forgotten and therefore is an asset to the company. Secondly, the Asian factor comes in as, the products are essentially simple but rich in variety, from trendy ice-blended flavored soya drinks and tasty soya ice creams to Asian-influenced soya pastries. (Kerin, Hartley, 326) But the enterprise does not just stop there as it has adopted a fast food concept (Kerin, Hartley, 326) in order to keep soya bean relevant in contemporary times, reaching out to the younger generation at the same time. When this has been established, the brand identity becomes closer to the hearts of the buyers as well. Thirdly, Mr. Bean emphasizes the health benefits of consuming soya products. Now even when you are at shopping malls during the evenings, you can still enjoy a glass of healthy soya bean milk (Kerin, Hartley, 326) proves the companys focus on healthy living. The company has learnt to use this factor as an advantage in its marketing plans because, soya bean drinks and snacks have become a hip and healthy staple in many Singaporeans daily lives. (Kerin, Hartley, 326) Apart from these significant observations and evaluations, I would recommend that the company should emphasize more on the healthy aspect of the soya products. Although as mentioned earlier, they have discovered the importance of highlighting soya as a healthy choice for all, they should back their stand with scientific researches that show tangible results in order to sustain the peoples trust and update the consumer on the health benefits they may achieve due to the consumption of the products. For instance, they might want to stress that, consumers who have a lactose allergy, can turn to soya bean milk to gain the needed amount of calcium in their bodies. Many consumers might not be aware of such facts. But that is not to say that this should be taken up as a main marketing or branding identity. The enterprise has to be also careful not to make its marketing seem too clinical based and therefore needs to brush up on the hip side of the products. The products should come in wider variety with perhaps a caption in the menu which explains the nutrients available in the different flavors. I would recommend that more
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fruits be included in the mixtures. The aspect that can be subtracted from the identity but not in the short run is the reliance over the Asian aspect of the products as the company has to evolve according to globalisation.

3) How can brand loyalty be built? What is your evaluation of the steps undertaken by the company to build customer loyalty to the Mr. Bean brand? What other recommendations would you propose to strengthen brand loyalty?

Brand loyalty can be effectively built by first eliminating usage barriers (the product is not compatible with existing habits), risk barriers (physical, economic, or social), and psychological barriers (cultural differences or image). (Kerin, Hartley, 307) However this is largely applicable to a product that is newly introduced into the industry. The very foundation of brand loyalty should be a clear representation of how the consumers want to see themselves. For instance, successful and established brands take on a brand personality, a set of human characteristics associated with a brand name. (Kerin, Hartley, 312) In the case of Mr. Bean, the company prefers a more targeted approach in their business strategy, choosing to focus on communicating their brand to consumers. (Kerin, Hartley, 325) It is important for the enterprise to be part of their consumers daily lives. By far, the company has been rather successful in changing the mindset of viewing soya bean from something that you buy only at hawker centres (Kerin, Hartley, 326) to something that is more suited for modern and chic living. Mr. Bean aspires to not only build and sustain but also extend its brand loyalty by technological research and update of fresh products. While evaluating their usual marketing methods, it is also important to strengthen loyalty by perhaps issuing member cards that offer discounts at certain months, giving free samples to people outside the achieved target consumers and even lucky draws
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during the New Year. If the company is committed to a social cause and is able to put some finance into environmentally friendly measures or sponsoring some road shows, it would stand a greater chance in winning the taste buds but also the hearts and minds of their consumers.

Bibliography

Roger A. Kerin, Steven W. Hartley, William Rudelius and Lau Geok Theng, eds., Marketing in Asia (USA: McGraw Hill, 2009)