BRANDING What is a Brand?

Brand is more than a name of a symbol It is physical and psychological attribute of a product which a consumer perceives Exp:Thums Up/Coke Brand A product is made in the factory, a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless.
-Stephen King

Brand Buildings age and become dilapidated, Machines wear out, People die, But what lives on are Brands

How are Brands Different from Products? Products Brands

Generic Easy to copy Functional Concrete, Rational Transaction oriented Describes What Unique, Distinct Can not be copied Emotional, Functional Conceptual, Perceived Relationship oriented Describes What & Who

Example: Product : COLA A refreshing effervescent, sugary carbonated beverage Brand COKE Happiness, togetherness, memories, the colour Red, The Real Thing, The Thanda PEPSI Young, youthful, aspirations, trendy, more out of life, next generation Thums Up Strong, macho, daring, bold, grownup, thrill, adventure

Strong Brand. A strong brand is a product / service/person/place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Furthermore its strength results from being able to sustain these added values in the face of competition. Successful Brands Should deliver benefits Some intangibles besides tangible benefits Must be consistent with its personality Benefits offered must be relevant to the customer Why Build Brand? Buyers Benefits Criteria to Evaluate an offer (Knowledge about Predictable Satisfaction during Re-buy Knowledge of source (Whom to Complain!) Sellers Benefits Operational Ease Segmentation Legal Protection the offer)

Why Build Brand? Brands are major equity in most marketing companies Exp:Nike Consumers perceives brands as higher quality more reliable and a better value Branding helps the consumers to simplify the decision Separates you from your competitors Brand differentiates your product by making a promise to consumer Ujala-Char bundonwala

Brands Command higher prices Exp:Woodland shoes

 Brand generates loyalty Therefore, it generates a recurring stream of profit through repeat sales Exp:Dettol / Fevicol A brand without loyal customer base is vulnerable A brand with loyal customer base represents a substantial barrier to competitors & cost of changing loyalty is higher Provide resilience in times of negative press. Enable to launch new products more quickly and cost effectively. Sometimes licensed to other marketers - Walt Disney characters Brands Provide Mental Patents Brand commands better shelf space, better visibility and better co-operation at the retail outlet Brands Enhance Marketing Programs Brands Attract Employees Why Build Brand? Brands Increase Value Brands Allow Mistakes Brand as a point of reference Get me a Xeroxof.. Aquaguard ka pani hai. Ek Nestle ki cadbury dena.. TVS nai luna ai hai Ek Bisleri dena

---------------------------------------------x-----------------------------------------------------------TEN CHARACTERISTICS OF THE WORLD'S STRONGEST BRANDS 1.The brand excels at delivering the benefits customers truly desire 2.The brand stays relevant

3.The pricing strategy is based on consumer's perceptions of value 4.The brand is properly positioned 5.The brand is consistent: 6.The brand portfolio and hierarchy make sense 7.The brand makes use of and coordinates a full repertoire of marketing activities to build equity 8. The brands managers understand what the brand means to consumers: 9.The brand is given proper support, and that support is sustained over the long run 10.The company monitors sources of brand equity

Business (Market) Producer Marketing activities Marketing Mix Consumer/Buyer

COMMUNICATION (The origin of the word) Communicare - Share (Latin) Communis (French) Common

Communicate - Impart,Transmit,Share (Concise Oxford Dictionary) COMMUNICATION

COMMUNICATION

Sender

Message

Receiver

Communication Verbal/Oral Written Body language GLOBAL COMMUNICATION BARRIERS Culture & Language Differences Difference in Perception Assumption & Pre-conceived ideas Difference in Consumer Behaviour Lack of knowledge about the subject Difference in physical attributes A Lengthy Channel Political Barrier Social/Ethical Barrier Economical Barrier

Integrated Communication Know the Company/Organization/Heritage Integrated Communication Know the Product/Brand Target Audience What does the Market say How am I different or How do I communicate differently Communication Objective Our Communication Strategy How do I reach Target Audience Effectively

Through Integrated Communication Using The Communication Tools Advertising Print & Electronic Merchandising Direct Marketing Public Relation Events & Exhibition Outdoor The 360 Degree Brand Experience What is 360 Degree Total Surround Experience Wherever the consumer goes he is hit by our communication Why is it required? The era of overdose of communication Clutter It is necessary that you create a top of mind awareness. Different Target Audience Cost Effective Why is it required? From the time the consumer sees your ad to the time he purchases the product a lot of change Gives a big brand feel Essence of 360 Degree The main brand thought-single thought should be carried across all mediums.

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The New Indian Consumer Customer ? Definition: [n] someone who pays for goods or services. Customer:The King

Communication CUSTOMER Internal (The Seniors/Peers,etc) External (Customers/Stake holders,etc) Who am I? Ambassador of the organisation Goodwill/ Image generator Sales Generator Co-ordinator and a very important team member What a good Corporate Communication Can Build Image and gain respect Creates Goodwill Attract Finance and Investments Creates Stock Equity Helps during crisis Builds Brand Equity Attract talents Unifies Diverse group What a good Corporate Communication Can Marketing Department Lower Marketing Costs Sales Department High Market Share Finance Department Access to Funds Human Resource Department- Easier retention of staff .Access people at lower cost PROFIT = SALES - COST

The New Indian Consumer The New Indian Consumer

The market construct has changed from a suppliers market to a buyers market The New Indian Consumer The me too syndrome is no longer valid as consumer seek customized products The New Indian Consumer The consumer has more choices and a result of it he spends more and experiments more The New Indian Consumer A change consumer because of: A huge increase in high income groups Spend now save later mentality leading to higher disposable income The New Indian Consumer The consumer wants to be treated as an individual-not as a part of a large physical mass and looks for a post buy relationship to enhance the value of her brand decision making The New Indian Consumer Exposure to international concepts leading to the development of global consumer with a taste for new and exotic,increased health consciousness,leisure and entertainment needs,power of choice,metro sexual attitude,changing retail scenario,customization and co-habitence The New Indian Consumer Changing Expectation: The change is consumer mindset has led to changes in the expectations from marketers. Product like cars are also expected to make a personality / lifestyle statement.A cars performance,design,quality and technology,etc are all taken for granted.Consumers are motivated by the brand name,its styling,novelty,striking looks and accessories The presentation of the shelf (packaging impact,shelf throw) has assumed greater importance The New Indian Consumer

Demographics no longer is the discriminator. While defining segments one must look at the mindsets as they are very important discriminator today The New Indian Consumer Pester Power Children are more informed,assertive and exude individual view-points.With household spends increasing and parents getting friendlier,their influence on family decisions is growing

The New Indian Consumer Rural Consumer Rural India is not one soggy mass of people to be segmented as single phrase rural The studies are done on segmentation like those who stay in satellite villages and considerably different from further island.Similarly who stay near the Indian railway tracks are different from the rest. The New Indian Consumer Three Distinct focus areas: Segmentation-Analytics,research and insights will blend more effectively as companies and brands smartly segment the market Relationships and Experiences-Service organization and brands will invest more on Building relationship and delivering experiences Creative Innovation:While organizations will continue to innovate,the market leaders will effectively combine creative ideas with innovation Evolution Barter Mass Marketing Segmentation Niche Marketing Database Marketing Customization CRM CEM

Transition Then Now Make Everything Inside Buy Outside(Outsource) Improve in Ones own Benchmark others Go it alone Network Collaboration Functional Dept Processes /Multitasking team Domestic Focus Global Focus Product Centered Customer Centered Standard Product Customized Product Mass Marketing Target Marketing Sustainable Competitive Advantage No Sustainable Competency Slow Product Development Cycle Quick Product Development Cycle Long Product Life Cycle Short Product Life Cycle Hierarchical Organization Flattened Organization Market Place Activity Market Space Activity Business Producer Marketing activities Consumer/Buyer Market Marketing Mix Marketing The aim of marketing is to know and understand the customer so well that the product of service fits him and sells itself.Ideally marketing should result in a customer who is ready to buy.All should be needed then is to make the product or service available. Peter Drucker Marketing Marketing is the process of planning and executing the conception,pricing,promotion, and distribution of ideas,goods or services to create exchange that satisfy individual and organizational goals American Marketing Association The Marketing Concepts: You see a gorgeous girl at a party. You go up to her and say, "I am very rich.Marry me!" That's Direct Marketing. You're at a party with a bunch of friends and see a gorgeous girl.One of your friends goes up to her and pointing at you says, "He's very rich.Marry him." That's Advertising.

The Marketing Concepts: You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day you call and say "Hi,I'm very rich.Marry me."

That's Telemarketing. You're at a party and see a gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink. You open the door for her, pick up her bag after she drops it, offer her a ride, and then say, "By the way, I'm very rich.Will you marry me?" That's Public Relations. The Marketing Concepts: You're at a party and see a gorgeous girl. She walks up to you and says, "You are very rich.." That's Brand Recognition. You see a gorgeous girl at a party. You go up to her and say, "I'm rich.Marry me" She gives you a nice hard slap on your face. That's Customer Feedback !!!!! The Marketing Concepts: You see a gorgeous girl at a party. You go up to her and say, "I am very rich.Marry me!" And she introduces you to her husband That's Demand and supply gap. You see a gorgeous girl at a party. You go up to her and before you say, "I am very rich.Marry me!" she turns her face towards you..she is your wife ! That's competition eating into your market share.

The Ten Demandments The First Demandment Earn My Trust This is all about trust, integrity, advocacy, and quality. Forget all others if you cant master this one The Second Demandment Inspire Me Craft meaningful emotional connections with your consumers through immersive experiences, motivating messages that transcend their own products and relevant philanthropy. The Third Demandment Make it easy Simplicity, speed and usefulness are the key to consumer ease. Dont confuse complexity with progress. The best things in life are often the easiest. The Fourth Demandment Put me in charge Consumers except choices and control. particularly from service organization that can enable self-paced self-service. Put consumers in the drivers seat or theyll peel out of your parking lot without a second thought The Fifth Demandment Guide Me Too much white noise, too little context-thats the problem. So filter the chaos with expert advice, education and information. And stand shoulder to shoulder with your consumer as they move through the decision making process and beyond The Sixth Demandment 24/7

Anytime anywhere accessthats the ticket in this round the clock world. Nine to five hours wont cut it for consumers who expect companies to be there for them all the time no matter the channel The Seventh Demandment Get to know me You cant win consumer loyalty without understanding what consumes want. Listen learn and study up on their real lives, dont just drive into their data pool. The Eighth Demandment Exceed my expectation Even demanding consumers can be wowed, so woo them by over delivering through uncommon courtesies, surprising services and go-the-extra mile efforts that show you really care The Ninth Demandment Reward Me Treat your consumers like the VIPs they are to you. Acknowledge and build their loyalty by rewarding them by point programs, privileged access, or other winning ways. The Tenth Demandment Stay with me Relationship are built not in a day, but in a life time, so stay with your consumers if you want them to stay with you. Deliver or post-purchase promises, stay in touch in meaningful ways, and evolve your brand to meet your consumers evolving needs over time. The Ten Demandment The First Demandment: Earn My Trust The Second Demandment: Inspire Me The Third Demandment: Make it easy The Fourth Demandment: Put me in charge The Fifth Demandment: Guide Me The Sixth Demandment:24/7 The Seventh Demandment: Get to know me The Eighth Demandment: Exceed my expectation The Ninth Demandment: Reward Me The Tenth Demandment: Stay with me The Genie & Aladdin Genie:The Character Always with a positive attitude Always Smiling Always Prompt Always finding solution Always delighting the customer Always Loyal

Examples Arvind house Adani supermarket Auto rickshaw card Jamshedpur Call/telephonic complaint 100% OK Movement AEC Extra bill Credit card calls

Celebrity Endorsement
The Glam Sellers FRED objectives Familiarity (Target market is aware of him, finds him friendly, likeable and trustworthy) Relevance (Which says that there should be a link between the endorser and the product as well between the endorser and the audience) Esteem (The polio endorsement, for example, is successful as the masses see him as a credible name-face-voice) Differentiation (In all his projections, he is seen to be one among the masses, and yet he towers above them. He is different) --------------------------------------------------------------------------------------Celebrity endorsement: Double-edged sword Helps cut through competitive clutter & build consumer empathy. Miss the strike, and it can damage you brand image --------------------------------------------------------------------------------------------Reasons for Celebrities Endorsements When the concerned brand has close substitutes available. When there is a need to create a clear differentiation. When a brand has to make an entry into the market and the life cycle of the brand is feared short. In such cases the rationale is to make quick money and exit. Company A celebrity helps short hand a brand; in other words makes a brand stand out. Celebs facilitate instant awareness and immediate attention. Celebrity values define and refresh the brand image and a celebrity adds dimension to it. A celebrity lends instant credibility or aspiration to the brand. Celebrities save time in creating the credibility a company has to build into the brands. PR coverage Gestalt Perception: Gestalt perception means using a celebrity as a remedy.

When a person is famous people forget about what he looks like. As everyone knows the face, it is hard to judge whether the person is pretty or ugly. The celeb is a remedy to managers who run out of ideas. Celebrities The first reason that most celebrities would endorse a product for, is the huge compensation involved with it.
Star Sell

What a celebrity endorsement costs Hritik Roshan: Rs 4-5 crore Sachin Tendulkar: Rs 4-6 crore Amitabh Bachchan:Rs4-6 crore Aamir Khan: Rs2-2.5 crore Shah Rukh Khan: Rs2-2.5 crore Saurav Ganguly: Rs1.5 crore Govinda: Rs1-1.5crore Star Sell What a celebrity endorsement costs Aishwarya Rai: Rs 2-3 crore Karishma Kapoor: Rs 1-1.5 crore Kareena Kapoor: Rs 1-1.5 crore Tabu: Rs 1 crore Preity Zinta: Rs 1 crore (Source: Industry estimates per brand/year) Year 2001

Celebrities Enhanced level of acknowledgement. (KBC and Movers and Shakers helped stabilize the fast declining careers of their hosts by providing strong audience recognition) Endorsement breeds endorsement. Customers Messages delivered by well-known celebrities achieve a high degree of attention and recall for consumers. Celebrities are perceived Trustworthy Trustworthiness refers to the customers confidence in the source for providing information in an objective and honest manner. People are more likely to trust the quality of a trustworthy celeb endorsed brand over a non-endorsed one. Ambitious psyche: People ape the celebrities in their day to day activities and many even dream to become like a celebrity some day. Some know they wouldnt become as good as the celebrities but sharing common belongings makes them feel better. Physical Attraction: Consumers tend to perform positive stereotypes about such people. Physically attractive people are more successful in changing beliefs than non-attractive people. Critical Issues Only the tangible and visible costs are considered. The implicit costs remain uncovered.

Duration of endorsement required For increase in sales, a celebrity can be used for short-term promotions and brand activities. But for an image rub off, he could be used for longer period. Multiple endorsement: Celebrity Life Cycle Vampiring: The concept of a celebritys becoming bigger than the brand is known as Vampiring (For example, lets consider Dinesh Suitings. Dinesh used Gavaskar and let him rule the brand) Can be prevented by means like short-term endorsements and constant change of celebrities (Classic example of which is the case of Lux.) Tips for using celebrity Catch the early bird
Action Shoes & Sachin Tendulkar

Brand Celebrity fit Ensure celebrity do not dwarf the brand Ensure sustainable strategy Do not expect Magic