How do brand ideas create wealth?

• By resolving problems in people’s lives

• …and in the process resolving problems in their own
lives!
The key: finding the meeting point

Brand Life problem

problem ‘Insight’
The importance of problem definition
The best treatment after a wrong diagnosis
would be …
 The job

Bring the problem to the point where

we can resolve it
 What can we resolve?
• Not • But maybe…
– Change product performance • Change mindsets such that
– Correct pricing – The existing performance is
– Improve distribution valued
– The price seen as being worth
it
– The brand worth looking out
for…
 Problem definition
• Translate ‘what’s happening to the business’ to
• What’s happening to the mind of our TG
Lets look at an example
What business problem do you think this ad
is resolving?
 Why? Why? Why?
Current Desired

Sales?

Behavior?

Mindset?
 The enquiry pattern
• What’s happening to sales?
– Stagnant, declining, growing but slowly?
• What behavior is causing it?
– Category non trial, brand switch, down-trading, low
consumption frequency, category bleed?
• Who is the bull’s eye?
– Demographic, behavioral, mindset, category need state,
conceptual TG
• What mindset is causing it?
What’s the problem being resolved?
 Pitching India to James
• You have started your own travel agency
• Targeting foreigners visiting India
• James - a potential client has written to you
• He is exploring the idea of touring India amongst many other options
• You need to write back to James, an e-mail selling the idea of coming to
india and discovering it through your travel agency
 Pitching India to James
• 25
• Black
• Clerical assistant in a university
• Living in with Sara, a 27 year old
nurse
• Both are fitness freaks and nature
lovers
• With their indian friends, they
have sampled indian food and
bollywood movie/music which
they find ‘cool and different’
• 45
• Professor at Harvard
• Married for the last 17 years with
a colleague
• Fascinated with diverse cultures
and India’s rich heritage
• Big fan of Ravi Shankar
• Into yoga, meditation
 The point
• What and how you sell depends on who you sell to
– The better you know the person, better your chances

Today’s focus – getting a grip on ‘the who’

 Heineken
Whatis happening to the sales?
What
behavior is causing this sales trend?
What mindset is causing this
behavior?
Whosemindset must we aim at changing?
Stagnant share in a declining category,
leading to decline in sales
Heineken drinkers’ tendency to prefer cheaper beer
at home such as Budweiser, Miller
‘Heineken maybe better, but is too expensive
when I am just having a beer at home’
Demographic: Males
Category behavior: Users of category
Brand behavior: Users of brand, only on social occasions
Conceptual TG: The inherently engaged, independent
achiever who does not buy into the Corono philosophy of
‘checking out’ and disengaging
 Business
issue? Where?

Client brief Media

Who? How?
Is not doing Should we
the desired? say it? Creative

TG

Why What?
not? Saying
what will
change it?
Problem
Strategy/Brief

What are his/her

anxieties/desires?
Insight
 Business
issue? Where?

Client brief Media

Who? How?
Is not doing Should we
the desired? say it? Creative

TG

Why What?
not? Saying
what will
change it?
Problem
Strategy/Brief

What are his/her

anxieties/desires?
Insight
 A good definition of the ‘who’
central to all subsequent answers
 Ultimate destination

Rich picture of the one person you

are building the brand for
Painting a rich picture of the ‘who’
• Demographic
• Consumption
– Category
– Brand
• Psychographic
• Need state
• Conceptual TG
 The tussle

Selling to
Creating for 1
many
The strategic journey in defining the TG

Business Creative
Business Creative
inspiration
imperative inspiration
imperative
Filter Filter Filter

The many we The one we

The many we The one we
will sell to will create for
will sell to will create for

Business TG is the starting point

Business TG is the starting point
Communication TG a refined subset of it
Communication TG a refined subset of it
 Communication TG vs Users
Fair & Lovely

35<

R E M
D
C
25-35
F
U B • Demographic : Sec A, 25
15-25
Female, living in urban India
• Psychographic
A • Wants to change her present
<15
• Believes that given
opportunity, she can shape
Urban/ SEC Age Male/ her own destiny
Rural Female

Users Communication
TG
25
Source : Data shown are industry estimates
 TG projection across shampoo brands
Pantene Sunsilk Clinic Plus

25+ 18-21
Upper class upper middle class mother and child
Attire – western, elegant, not youthful college going
college trendy fashionable trendy western wear middle class
international fiesty, ambitious, rebellious mother skeptical
matured individualistic holding her own of shampoo
past her rebellious streak against opposite sex child pester power
comfortable with her femininity newfound independence
classic beauty reflecting a feminist ideology

26
 The journey similar to the
problem definition one

Consumption profile
Business Category consumer,profile
Consumption non consumer,
Business
TG Category consumer, non consumer,
brand consumer, frequency…
TG brand consumer, frequency…

Demographic profile
SEC, Gender, Age,profile
Demographic town class…
Brand SEC, Gender, Age, town class…
Brand
TG
TG
Need state
Need state

Mindset
Communication Mindset
Communication
TG
TG
 Each dimension has its own value

Measurable
Consumption profile
Category consumer,profile
Consumption non consumer, Link to business goals
Category consumer,
brand non
consumer, consumer,
frequency… ‘who if converted will give us the
brand consumer, frequency…
numbers’
‘Basic (but important) introduction’
Demographic profile
SEC, Gender, Age,profile
Demographic town class…
SEC, Gender, Age, town class…

Key to defining problem

Need state Giving the audience a face/picture
Need state
Defining brand’s idea, personality
Communication slant
Mindset
Mindset

What happens when either is missing?

Where do we begin?
 Step 1. Looking at sales data
• My brand sales – Rs 110 crore
• My brand sales last year – Rs 100 crore
• Category sale – Rs 200 crore
• Category sales last yr – Rs 150 crore
 The decision matrix
What must be my sales focus?
• Category trend Sales/share focus
1. Grow category?
• Share trend 2. Defend share?
• Share/market position 3. Grow volume share?
4. Grow value share?

TG focus
1. Convert non users?
2. Convert other brand users?
3. Retain my users?
4. Make my users use more?
 Filtering further

From usage status to more detailed

profile
 Two broad bases for choosing the TG
Attractive Available
• Large numbers • Not bonded with competition

• Heavy users • Non rejecters of core

brand/category values
• Willing and able to pay premium

• Future

• Attractive to other TGs

Tea market
Who should Taj target?
Step 1: Category and brand picture

Using Indexing
What’s happening to category?

  Urban/Rural
All Urban Rural

Est. Households (000s) 102% 103% 102%

% growth Purchased 103% 103% 103%
Did not purchase 98% 103% 97%
What’s happening to Taj?

  Urban/Rural
All Urban Rural

Brooke Bond Taj Mahal 85% 93% 77%

What should be the sales/share focus?

 From what to who
Who should Taj target?
Looking at the loss profile closer
Loss index similar across SEC A-D

Index A1 A2 B1 B2 C D E1 E2 R1 R2 R3 R4
Est. HH (000s) 104 105 103 105 103 103 103 101 106 105 102 101
Tea - Purchased  
Loose 102 96 95 109 106 106 107 109 113 112 109 112
Pre - Packaged 103 107 105 103 103 101 100 97 102 104 98 94
   
B Bond Taj Mahal 91 91 93 90 89 90 115 106 101 87 76 64

Who should be the focus?

Business focus?
Communication focus?
Step 2. Understanding ‘available’
through data
Share of users
Current share suggests the audience leaning
towards the brand

A1 A2 B1 B2 C D E1 E2 R1 R2 R3 R4

% Packaged '08 85% 81% 79% 74% 72% 63% 57% 49% 71% 67% 53% 43%

Taj share of PP 7% 6% 4% 3% 2% 2% 2% 2% 3% 2% 1% 1%

Higher the SEC, greater the connect with Taj

Step 3. Understanding ‘attractive’
through data
Contribution
And contribution from A and B the highest

Contribution 2008 2007 Contribution 2008 2007

A 368 405 29% 29% R1 141 140 15% 11%
B 277 302 22% 22% R2 222 255 23% 20%
C 239 268 19% 19% R3 323 424 33% 34%
D 188 209 15% 15% R4 283 445 29% 35%
E 216 197 17% 14% Total 969 1264
Total 1288 1381
 Summing up Taj
• Step 1: Index- In a stagnant market, Taj is losing users
• Implication – Defend, rebuild share
• Step 2: Index – The user loss profile suggests similar levels of
loss from A-D
• Implication – Image/Connect in A-D sliding?
• Step 3: Share – Taj’s share in A/B nearly double that in other
SEC
• Implication – A/B attitudinally most available/connected
• Step 4: Contribution – A and B the two largest contributors
• Implication – A/B also most attractive/important for Taj
 Going beyond
consumption-demographic
The quest– defining better predictors of
behavior through segmentation

Consumption Demographic profile

Consumption SEC, Gender, Age,profile
Demographic town class…
SEC, Gender, Age, town class…

Mindset (Psychographic)
Need state (Needscope) Mindset (Psychographic)
Need state (Needscope)

Caveat: Not an exact science

Ideal single source for all connections

Bringing it all together

TGI
Some other TG perspectives
Primary vs secondary
User vs. buyer
 Conceptual target
• There is a lot of Harley Davidson in some of us, but
there is a bit of Harley in most of us
• Which part of me do you connect with?
• The motivational aspect
• Brand ideas linked with Conceptual Target
– MTV
– Apple
– Whirlpool
– FAL
– Airtel v Idea
 Next assignment
• IRS/TGI runs on your brand and category
• Define your sales focus
• Define your TG demographic focus using
– Index
– Share
– Contribution
• Create a power-point of the rationale
• Mail it to me
• Deadline - TBD