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Shiv Shankar Tripathi
August 23rd, 2010
Hyderabad
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The least of things with a meaning is worth
more in life than the greatest of things
without it
Carl Gustav Jung
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Building a Brand: Factors to be considered
Source: David Jobber
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Why Brand Positioning
As consumers, we are all influenced by the effects of apowerful brand positioning-"brainwashed," so tospeak-to have preference for one versus another. Buttoday there are so many choices for consumers thatthis term has a secondary derivation-"whitewashing."
The brand choices are so varied and the differentiation
so minimal in terms of product functionality that we'refaced with a sea of indiscernible offerings. This is whyit is critical for a brand to be well positioned anduniquely differentiated.
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Brand Positioning defined Positioning means owning a credible and profitable
position in the consumers mind, either by gettingthere first, or by adopting a position relative tocompetition, or by repositioning the competition.
- Al Ries and Jack Trout in Positioning: The
battle for your mind
Examples: Cinni fans, Tata, Exide, Lifebuoy, Colgate.
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Brand positioning: Perceptual Map
Brands can be positioned against competing brands on aperceptual map.
A perceptual map defines the market in terms of the waybuyers perceive key characteristics of competing products.
The basic perceptual map that buyers use maps products interms of their price and quality, as illustrated on the next
slide:
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The Brand Building Perceptual Map
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The Brand Positioning ProcessUnderstandingall stakeholder
needs anddesires
Brand
Architecture
Opportunity
Modelling
Brand
Platform
Brand
Identity
Continuousevaluation
anddevelopment
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1. Understanding all stakeholder needs and
desires Consumers needs
Corporate Need
Shareholders/Investors needs Channel Partners need
Example: P&G - Tide and Ariel
Mahindra, Jaguar or Land Rover
Volkswagen - Beatle
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2. Opportunity Modelling for Positioning
Relevance
Differentiation
Credibility Stretch
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Successful Brand Stretch of Dove
Source: Brand Stretch by David Taylor
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3. Brand Platform: Taking up a position in
the market
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4. Brand Identity: Reflecting Brand positioning in
the name
Descriptive: Kingfisher Airlines, IBM
Associative: Bajaj Pulsar, TVS Scooty, Outlander
Abstract: Kodak, Accenture, Lemon Mobiles
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5. Brand Architecture: Organise to deliver value
Brand architecture creates value through clarifying alllevels of branding based on:
The needs and priorities of target audiences Expressing the depth and breadth of the offering
Generating economic efficiencies
Extending and transferring brand equity between
corporate and product and sub-brands Making brand strategy credible
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Brand Architecture Structures1. Freestanding BrandStandalone brands, little or no connection with parents. E.g. Garnier2. Endorsed BrandParent (Source) brand provides credibility, personal relevance of thebrand may not be clear. E.g. Maruti cars
3. OverbrandIndividual business units or brands operate under a strong parent, dualcommunication with unique positioning by leveraging the credibility ofthe source. E.g. Hyundai i10, i20, i30, SUVs like Tata Safari, MahindraScorpio, Mitsubishi Outlander, Ford Fortuner.
4. MasterbrandA single brand spans a set of offerings that operate only with descriptiveofferings, continual product innovation, new releases and so on. E.g. TajHotels, Kingfisher Airlines, Kerala Tourism.
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6. Continuous Evaluation and Development
Take decisions regarding improving upon the POPs(Points of Parity) and PODs (Points of Difference).
Brand extensions Line/Category extensions Category memberships Loyalty Programs
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Case I: Walt Disney Few brands are better defined than Disney. The company's success is measured by
no less than a 610 percent growth in the last decade, according to its most recentannual report. Nearly half of that growth came from new business areas, some thatbear the Disney name and some that do not. Here is a company that not onlyunderstands its vision and meaning but clearly understands its parameters ofrelevance. What is the Disney story?
Walt Disney was a visionary. And his vision for the Disney Company was not tocrank out cartoons or build theme parks, but "to make people happy." I think Ican safely say that virtually everyone in the developed nations of the world is crystalclear about what the Disney brand stands for: imagination, wholesomeness,fun.Whether we picture in our minds a theme park for children, adventure and
learning vacations for the whole family (Disney Institute), a movie or a co-brandingeffort, the Disney promise is aligned with our expectations. Its branding decisionsmake sense.
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Case II: Microsoft Microsoft, a company that was started in a hotel room by a
couple of college dropouts with one compelling vision: acomputer on every desk and in every home.It may have been abrazen idea 20 years ago, but it has guided Microsoft ever since,giving it uncontested dominance in the desktop software market
and making Bill Gates a very rich man. Microsoft today is hardly what we would call a simple company.
It employs more than 30,000 people and designs and sells a vastarray of software programs in 60 countries; having a net incomeof more than $2 billion. But as much as it has grown, it has never
lost sight of its original vision. Everything about Microsoft-itsproducts, its marketing and, most important, its brandpositioning-is still driven by the idea of a computer on every deskand in every home.
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BaselineOur ground work takes you sky high
Headline: Helping another Indian chart the global skies
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Brand Extension and Brand Stretching Marketers have long recognised that strong brandnames that deliver higher sales and profits (i.e. those
that have brand equity) have the potential to worktheir magic on other products.
The two options for doing this are usually calledbrandextensionand brandstretching.
Brand extension Brand extension refers to the use of a successful brand
name to launch a new or modified product in a samebroad market.
A successful brand helps a company enter new productcategories more easily.
Brand stretching Brand stretching refers to the use of an established
brand name for products in unrelated markets.
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Brand Extension and Brand Stretching
When done successfully, brand extension can haveseveral advantages: Distributors may perceive there is less risk with a new
product if it carries a familiar brand name. If a newfood product carries the KISSAN brand, it is likely that
customers will buy it Customers will associate the quality of the established
brand name with the new product. They will be morelikely to trust the new product.
The new product will attract quicker customer
awareness and willingness to trial or sample theproduct Promotional launch costs (particularly advertising) are
likely to be substantially lower.
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Conclusion
To conclude: Companies who build their corporate names or any of
its products a successful brand never lose their originalvision.
They keep on innovating continuously so that theirbrand stays relevant, desirable and consistentlyprovides value to the customers besides creating brandequity for the company.
The brand becomes mature when not the companybut customers start taking ownership of the brand anddrive the company.
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Further Reading/References
Batey, Mark, Brand Meaning, Routledge, New York.
Clifton, Rita Et al., Brands and branding, Economistbooks.
Taylor, David, Brand Stretch, John Wiley & Sons. DAllasandro, David F, Brand Warfare 10 Rules for
building a killer brand, McGraw Hill Publications.
Knapp, Duan E, Brand Promise, McGraw HillPublications.
SuperBrands India
Images Retail magazine.
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Thank You.