Product Management 1

2010

Understanding a Brand
Product Vs Brand Evolution of Brand Management Brand Understanding Brand Challenges

A Product is made in a factory.a Brand is Bought by a customer A Product can be copieda Brand is Unique A Product is quickly outdateda Brand is Timeless

Product Vs Brand
Brands differentiate Products Fairness Creams : Fair & Lovely vs Ponds Dream Fairness Coconut Hair Oil : Parachute vs Dabur Vatika Cola: Coca Cola vs Pepsi ---------------------------------------------------Products largely undifferentiated: Product choice function of Convenience/ Availability or Price Petrol : BPCL vs IBP vs. ATM : HDFC vs HSBC vs.. Mineral Water : Bisleri vs Bailey vs Kinley..

Product Levels : Kotler

Core Product: Core benefit or service Tangible Product: Brand Name, Packaging, Features, Quality,Styling Augmented Product: After Sale service, Installation, Delivery & credit, Warranty Eg: Consumer Durables vs FMCG

Essence of a Brand : Aaker

"A company's brand is the primary source of its competitive advantage and a valuable strategic asset," Mergers & Acquisitions- Brand Equity / Potential Brand Earnings Brand Acquisition- Lakme vs Mediker Power of Global Brands- Amazon.com vs Ebay

Essence of a Brand : Aaker

"The challenge for all brands is that they have a distinct, clear image that matters to customers and truly differentiates them from the rest." Competitive Markets- Basis for Product Differentiation Coke vs Pepsi vs Thums Up Cigarettes

Essence of a Brand : Aaker

The key step is to create a broad brand vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed. Enhance Perceived Value- Rules Brand Price/ Brand Acceptance Mercedes Benz Ariel vs Surf

Evolution of Brand Management: Stage1

Commodities / Sellers Market Few/ Single Supplier Situation egTelephone( MTNL), Cars( Ambassador-Fiat); New Product categories: eg- Photocopiers (Xerox).. Sunscreens Controlled Markets: Petroleum, Pharmaceuticals Limited/ Identifiable Customers: Industrial Products

Evolution of Brand Management: Stage1

Role of Pdt > Brand; Focus on providing effective Product, as a Problem Solution Critical functions : production/ engineering/ distribution/ logistics Purpose of Brand- Product Identification/ trademark; usually a family name/ manufacturers name

Stage 2: Classical/ Functional Marketing

Competitive Market Scenario Thrust on Product Differentiation--- Competitive Advantage Eg Soaps Market Market Segmentation based on

Pricing: (Economy, Popular,Premium) Product/ Functional Benefits.Need Segments(Beautiful Skin-Lux, Clean Hygienic-Dettol, Healthy skin- Lifebuoy,.. Fair Skin- FairGlow) Product Ingredients ( herbal- Chandrika, Lime- Cinthol, Glycerine- Pears) Target Segment ( Male- Aramusk/ Denim, Kids- Doy, Babies- Johnsons)

Stage 2: Classical/ Functional Marketing

Positioning ---- Target Sement Lux- Beauty Soap for Filmstars----- aspirational to middleclass Housewives Dove- Not Soap but Skincare with Moisturisers---Older, Upper Income women Fairglow- Fairness---Users of other Fairness pdts? Role of Product = Brand, Product Innovation & Brand Building, Brand focussed on emphasizing Product Benefits/ Functions/ attributes, Brand is the halo round the product

Stage 3: Consumer Orientation/ Benefit Marketing

Competition, Media Revolution, Globalization..no boundaries Emphasis on understanding the Consumer MIND Emotional Benefits.. Consumer Insights Brand Associations Mobile phones-Connecting people.. BPL vs Nokia Fresh BreathConfidence- Close Up ( Closeness) Durable paints..Festivity- Asian Paints(Paint Pour) Savings. Security- ICICI (Sindoor) Brand overshadows the product, BrandBONDING with consumers..Focus on BRAND IDENTITYBRAND COMMUNICATION

Stage 4: Experiential Marketing

Flood of offerings, Plethora of choices Products fight for MINDSPACE of Consumers no product boundaries Brands takes product to new platform provide an experience Consumption is a holistic EXPERIENCE eg: CarsThe Mercedes Experience Brands provide an experience, Products provide a service

Experiential Marketing: Application, Scope

Experiential Products- Books( CrossWord), Music( Planet M, CD- Wherehouse) Lifestyle/ Luxury Products- Cars, Furniture LifeStyle Products-Cigarettes( WillsTogethernessClassic- King), Alcohol (Bacardi) Fashion Products- (Gucci, CK, Armani..) Retail Products- ( Coffee- Barista, McDonaldsHappy kids,) Service Products- Banks, Hotels Airlines Experiential Advertising- Cadburys(CDM), Nescafe, Nokia

Experiential Marketing - What?

Bernd Schmitt
SEMs- Strategic Experiential Modules: Sense: Sight-Sound-Taste-Scent-Touch: Tide, Orange, Fashion collections- Revlon, Heinz ketchup,NECC- Egg,Huggies Diapers, Samsung mobile, Lakme colours- Billy Joel Feel- ( Moods/ Emotions) ICICI- Sindoor..Tera ghar/ Mera Ghar, CDM, Nike Think- ( Surprise/ Intrigue/ Provoke) Whisper Act-( Physical Behaviour) Dominoes- Hungry Kya? Relate- ( Membership/ belonging) :Harley Davidson, Pepsi vs Coke, Archies Cards

Experiential Marketing- How?

Bernd Schmitt
ExPros- Experience Providers: Communicaion/ Advertising Identity Related( Logo/ name/Signs-Visual/ Verbal)- Britannia Product Presence (Design/ Pkg)- Fragrances Co- Branding (Events/ Sponsorship)- Lakme Fashion week, Femina miss India Spatial Environment ( Retail/ Office/Factory)Barista, Titan, Infosys Web Site/ Electronic Media- Encyclopedias.. Virtual Reality People- IBM-employees, Tata- culture, Reliance-

Stage 5: New Age Marketing

Technology & Communication Revolution-easy REACH, no physical barriers Integrated systems- Production- Distribution. Consumers Mass Customization- Knowing what The consumer wants.. Able to deliver it to him IT based products- Music, Magazines, Education Top end/ high value products- Cars, Furniture Service Products- Investments, Insurance..Call Centres Boutique products- Bodyshop, Designer wears Speciality Products- Paints, Cosmetics..Pastries Ultimate products- ( Minority Report ?!!)

Kapferers Brand Pyramid

Brand Vision & Purpose Brand Values Brand tone codes & Personality Strategic Products/ Common Traits Sum ( Pdt A+B++N) Typical Brand actions Eg : Maruti vs Honda

Product VS Brand

Bottom Up Perspective: Products constitute the Brand ( Consumer View)- Real /Tangible, open to Competitive Threat Top Down Perspective: Brand Vision directs Product Introduction/ Innovation ( Brand Managers Challenge)- Protects the Uniquesness of the Brand Long Term Vision Appreciates the Brands Life / Equity- Greater BandWidth, Better RubberBand

Brand Boundaries

Parachute Cadbury Titan Nike Britannia Amul Godrej

The RubberBand Effect

Highly Elastic Corporate Brands
Godrej/ Tata

InElastic Generic Brands

Parachute/Xerox

Perfect Elasticity Constant Brand Renewal

Philips/ ICICI/ Britannia

Brand Name

Can help to improve the Brands life/equity ? Descriptive Names

WordStar vs Lotus ATM vs Mediclaim Long Names Ponds Magic vs Ponds with SAM Difficult Names

Brand Space

Same Space:- Fight for Market Share Different Image- Coke Real Thing vs, PepsiYounger Generation Same Image/ Forced Differentiation- Sprite vs Limca- Cool Guy Different Space Same Image- Godrej vs Tatas Trust, Quality, Reliability

Brand Life ?

Brand Equity vs Product Life Cycle Intangible vs Physical, Soul vs Body Brand Life- Continuum Power of Old Brands- Murphy Radio, Afghan Snow HMT, HMV Importance of Brand Renewal- ( Revitalization/ Re-engineering)

Luxury Brands: emerging concepts

Griffe Brands- Signature Brands : Aura Money Eg- Hemant Trivedi Luxury Brands- Boutique/ Designer Brands: Eg- Ritu Kumar Upper Range Brand- Premium Brand Eg- Louise Phillipe The Brand Mass Market For Perfumes, Cosmetics, Fashion Accessories/ Wear InStore Brands- Pyramid, Pantaloon

Service Brands: emerging concepts

Quality of Service : PEOPLE: Basis of Differentiation Loyalty of Consumers: Basis for Growth Led by Corporate Brands : People who run the Business Market Saturation- Growth of Brand Systems, Possibility of Product Brands in a Service Industry? Eg Hotels- Taj- Coffee Shop vs Starboard, Birdys Banks- Smart Money Vs Deep Discount vs. Airlines- Jet Airways- Shopping Mall, Privilege Club Life Insurance- LIC- Jeevan Bima, Jeevan Suraksha.

Brand Alliances: emerging concepts

Brand Economics: For Promotions/ Sponsorships Filmfare, Movie Brand Association: Complementary Products Ariel & Whirlpool, Coke & Bacardi Lime, Ingredient based products- like Food Consumer Convenience Technology Products PC- Hardware & Software- Microsoft Windows/ Intel Pentium/ Samsung Monitor Service Products Holiday Packages- Airlines ( Jet) & Hotels (Taj) Product Bundles for same Target Audience School Children- Camlin stationery+ Navneet workbooks Dot Com- Strategy

Brand Challenges..Aaker

Yet, research shows that managers cannot identify with confidence their brand associations, levels of consumer awareness, or degree of customer loyalty.

Frooti & Digen Verma Sunsilk & Fruits

Brand Challenges

Moreover, in the last decade, managers desperate for short-term financial results have often unwittingly damaged their brands through price promotions and unwise brand extensions, causing irreversible deterioration of the value of the brand name. Business World Akai Parachute & Nutrisheen Dettol Perfumed

Brand Challenges

"Yet, too often, the brand message to customers is weak, confused, irrelevant, or, worst of all, indistinguishable from competitor offerings.

Its a boy!!! Liquor & Neckline

Brand Challenges

"Managing multiple brands is not easy," Acquisitions HLL- Soaps- Jai, Breeze, Hamam, Rexona.. Electrolux- Kelvinator Own Introduction Lakme & Elle18 Surf & Wheel

Brand Challenges

"Inconsistent or 'cross-purposes' execution within a company's branding system can be destructive,"

Corporate Brands- S Kumars, Godrej Coke vs Diet Coke