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CORE TEXT:
“STRATEGIC BRAND MANAGEMENT”
BY KEVIN LANE KELLER (3rd EDITION)
SUPPLEMENTARY TEXT:
“POSITIONING” BY AL RIES AND JACK TROUT (20th EDITION)
“BRAND POSITIONING” BY SUBROTO SENGUPTA (2nd EDITION)
PRESENTED BY:
INDRANSH GUPTA
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What is a Brand?Definition: “A brand is a product that adds other
dimensions that differentiates it in some way from
other products designed to satisfy the same need.”
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Why Do Brands Matter?
CONSUMERS:
Identification of Source
of Product Assignment of
Responsibility to Product
Maker
Risk Reducer
Search cost Reducer
Promise, Bond, or Pactwith Maker of Product
Symbolic Device
Signal of Quality
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Why Do Brands Matter? (Cont)MANUFACTURERS
:
Means of Identificationto Simplify Handling or
Tracing
Means of Legally
Protecting Unique
Features
Signal of Quality Level
to Satisfied Customers
Means of Endowing
Products with Unique
Associations
Source of Competitive
Advantage Source of Financial
Returns
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What Can Be Branded? Physical Goods
Services
Retailers and
Distributors
Online Products
and Services
People and
Organizations
Sports, Art andEntertainment
Geographic
Locations
Ideas and Causes
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Branding Challenges And Opportunities Savvy Customers
Brand Proliferation
Media Fragmentation
Increased Competition
Increased Costs
Greater Accountability
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The Brand Equity ConceptBasic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value”
endowed to a product as a result of past marketingactivity for the brand.
This value for a brand can be created in many differentways.
Brand equity provides a common denominator forinterpreting marketing strategies and assessing thevalue of a brand.
There are many different ways in which the value of abrand can be manifested or exploited to benefit thefirm.
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Strategic Brand
Management Process
Identifying and Establishing Brand Positioning
and Values
Planning and Implementing Brand Marketing
Programs
Measuring and Interpreting Brand Performance
Growing and Sustaining Brand Equity
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Sources Of Brand EquityBrand Awareness
Consequences of Brand
Awareness Learning advantages
Consideration advantages
Choice Advantages
Establishing Brand
Awareness
Brand Image
Strength of Brand
Associations Favorability of Brand
Associations
Uniqueness of Brand
Associations
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Building A Strong BrandThe Four Steps of Brand Building
1.Identity (Who are you?)2.Meaning (What are you?)
3.Response (What about you?)
4.Relationship (What about you & me?)
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Resonance
Judgments Feelings
Performance Imagery
SalienceIdentity
Meaning
Response
Relationship
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Customer-based Brand Equity Pyramid
(Cont) Brand Salience: This
relates to aspects of awareness of the brand
Brand Performance: Thisrelates to ways in whichproduct/ service meetscustomers’ needs
Brand Imagery: It’s howcustomers visualize abrand abstractly, with no
relevance to what thebrand actually does
Brand Judgments: Thecustomers’ personalopinions and evaluationswith regard to the brand
Brand Feelings: Thecustomers’ emotionalresponses and reactionswith respect to the brand
Brand Resonance: Theultimate relationship &
level of identification thatthe customer has with thebrand
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Brand Positioning
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What…
Positioning is owning a piece of consumer’s mind
Positioning is not what you do to a product
It’s what you do to the mind of the prospect
You position the product in the prospect’s mind
‘It’s incorrect to call it Product Positioning’ – Ries & Trout
Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.
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Examples
ColgateColgate is ProtectionProtection
Lux Lux is GlamourGlamour
Pond’sPond’s is ConfidenceConfidence
Axe Axe is Sexual AttractionSexual Attraction
GilletteGillette is QualityQuality
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Three-Way PositioningA company needs to position itself in relation to three
value disciplines: Product leadership, operational
excellence, customer intimacy.
Four rules for success:
Become best at one of the three value disciplines.
Achieve an adequate performance level in the
other two disciplines.
Keep improving one’s superior position in the
chosen discipline so as not to lose out to a
competitor.
Keep becoming more adequate in the other two
disciplines, because competitors keep raising
customers’ expectations about what is adequate.
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Five-way Positioning
A company needs to position itself along five attributes:
Product, price, ease of access, value-added service, and
customer experience.
A great company will dominate on one of these, performabove average (differentiate) along a second, and be at
industry par with respect to the remaining three.
Assign a number from 1 to 5 to each attribute: 5
(dominant), 4 (differentiated), 3 (on par with industry),
2 (below par), and 1 (poor).
Source: Fred Crawford and Ryan Mathews, The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (NewYork: Crown Business, 2001).
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Five-way Positioning (Contd)
A great company will exhibit the pattern 5, 4, 3, 3, 3.
Anything less than a 3 on any attribute is not sustainable.
To be dominant or differentiated on more than one
attribute is excessive and reduces profitability.
Being on par requires a company to match its industry’s
average performance; a company must not let its standing
drop below 3.
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Why…
The assault on our mind…
The media explosion
The product explosion
The advertising explosion
So little message gets through that you ignore the
sender and concentrate on the receiver
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The Mind…
Like the memory bank of computer , the mind
has slots.
But with a difference , computer accepts all
things but our mind does not It rejects information which it can not
“compute” , it accepts only that new
information that matches current state of mind.
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An Inadequate Container
Humans reject information which does not match
their prior knowledge or expectation.
According to Harvard psychologist Dr. George A.
Miller, the average human mind can not deal withmore than 7 digits at a time like 7 wonder of world,
seven days etc.
If asked to name brands of any category, no one
can name more than 7 and that too if its their
interest category.
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An Inadequate Container(Contd)
To cope with complexity , people have
learned to simplify everything.
People can often remember positioning
concepts better than names.
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The Product Ladder
To cope with product explosion , people rank
products and brands in the minds.
On each step of a ladder is a brand and each
different ladder represent a different category.
A competitor who wants to increase share of the
business must either dislodge the brand above or
somehow relate its brand to the other company’s
position.
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Today competitor’s position is as important as your own
position.
“ Avis is only no.2 in rent-a-car, so why go with us? We try
harder .”
People assumed they try harder.
Avis was successful, as it related itself to Hertz.
Hertz
Avis
National
Those little ladders in your head
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The “Against” Position
Time magazine followed the same lead.
Frustrated with competition they adopted
“We try damned Harder.”
Later, found the word offensive and the accounts
executive was fired.
If the company is not the first then must occupy
second position.
Those little ladders in your head (Cont)
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Conventional Logic – find your conceptinside yourself or your product.
Not true, must look inside prospect’s mind.
7-Up positioned itself as the uncola drink &sales increased drastically.
Mc Cormick Comm. acquired WLKW andpositioned it as the unrock radio station &
became no.1.
The Uncola Position
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The Oversimplified Message
Today the best approach to take, in our over
communicated society is to simplified message.
“ you simplify the message, then simplify it somemore if you want to make a long lasting impression.”
-Al Ries and Trout
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How…
The easy way to get into a person’s mind is to befirst
Xerox, Kodak, Polaroid, Sun TV, The Hindu, F&L
If you didn’t get into the mind of your prospect
first, then you have a positioning problem
Better to be first than be best
In the positioning era, you must, however, be
first to get into the prospect’s mind
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How…
The basic approach is not to create something newor different, but manipulate what’s already in themind
To find a unique position, you must ignore
conventional logic
Conventional logic says you find concept insideproduct Not true; look inside prospect’s mind
You won’t find an uncola idea inside 7-up; youfind it inside cola drinker’s head
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Guidelines…
Start by looking not at the product but at theposition in the market that you wish to occupy, in
relation to competition
Think about how the brand will answer the mainconsumer questions
What will it do for me that others will not?
Why should I believe you?
Try to keep it short and make every word countand be as specific as possible
Vagueness opens the way to confused executions
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Guidelines…
Keep the positioning up-do-date
Give as careful consideration to change as you did to the
original statement
Look for a Key Insight Key Insight !
An ‘Accepted Consumer Belief’ ‘Accepted Consumer Belief’
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What is key insight?
Key Insight is ‘seeing below the surface’ / ‘seeing inside the consumer ’
Insight expresses the totality of all that we know
from seeing inside the consumer
An insight is a single aspect of this that we use togain competitive advantage
By identifying a specific way…That the brand can either solve a problem or
Create an opportunity for the consumer
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Key InsightKey Insight
‘ ‘ I wish to get I wish to get
married to amarried to a
handsome prince’ handsome prince’
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Key InsightK ey Insight
‘ ‘ Fragrance of my current talcFragrance of my current talc
does not last long and I missdoes not last long and I miss
opportunities to enjoy life’ opportunities to enjoy life’
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Key InsightKey Insight
‘ ‘ Soap leaves my Soap leaves my
skin feeling dryskin feeling dry
and tight’ and tight’
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The 3C’s of positioning
Be Crystal clear
Be Consumer-based
Be relevant and credible to the consumer
Write in consumer language and from consumer’s view point
Be Competitive
Be distinctive
Focus on building brand elements into powerful discriminator Be persuasive
Be sustainable
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And then…
The brand name!
The name is the first point of contact between the
message and the mind
‘ ‘ The brand name is a knife that cuts the mind to let theThe brand name is a knife that cuts the mind to let the
brand message inside’ brand message inside’
– Ries & Trout Ries & Trout
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Guidelines…
It’s not the goodness or badness of the name in anaesthetic sense that determines effectiveness
It’s the appropriateness of the same
Name begins the positioning process, tells theprospect what the product’s major benefit is
Fair & Lovely
Close Up
Krack
Head & Shoulders
Vaseline Intensive Care Body Lotion
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Checklist: Brand name
Should be simple
Should be acceptable in all key languages
Should be appropriate when geographically spread
Should be amenable for easy registration
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“Forgot what made them successful”
After being sold to ITT, Avis adopted,
“Avis is going to be No.1” No frequent increase in revenues and campaign was
waste.
7-Up also fell in the trap and adopted.
“America’s is turning 7-Up”
Sales fell and now Sprite has 50% market share.
The F.W.M.T.S Trap
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Hindustan Petroleum
positioned it as the best
refill available for LPG cylinder in the country.
Brand Positioning – Subrota Sengupta
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Forhan was the first
to position its
toothpaste with,
“Like a breadth of fresh air”.
Brand Positioning – Subrota Sengupta