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Building Brand Value Slides
M.G. Parameswaran
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“There is great advantage in a name that tells a story”
Claude Hopkins
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The American Marketing Association
What is a Brand? “A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate from those of the competitors.” The American Marketing Association
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Brand = Product + Images
More than just the product or the service Add the intangible images that come to mind Add the usage occasions that come to mind Add the user imagery that comes to mind
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Going Beyond a Name: Building a brand
Power Brand Brand Name Distinctive value proposition Delivery Communication in line with delivery Personality Incremental Metrics Awareness Loyalty Premium Prices Increased Leverage opportunity Incremental Benefits Purchase Source: Mckinsey Quarterly, 1997
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The Power of Brands Nirma : A low priced detergent powder becomes a power brand and almost redefines the clothes’ wash segment Amul : A brand from a milk cooperative movement becomes Asia’s largest milk brand.
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The Power of Brands Lijjat : From a small beginning, an enterprise becomes a Rs 310 crore brand enterprise Sunfeast : A brand becomes the fastest growing biscuit brand competing against the country’s biggest and most well-entrenched brands like Parle and Britannia
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The Power of Brands Fair & Lovely : The world’s first ‘fairness’ cream becomes the world’s largest ‘fairness’ cream Rin : A detergent bar brings about a revolution of sorts within the fabric care category
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Is there a model for brand creation ?
A mantra ? A strategy ? Let us inspect …
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Building a Brand Tools and Models
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David Arnold’s : Brand Management Process *
Brand Situation Analysis Targeting Future Positions Testing New Offers Planning and Evaluating Performance * The Handbook of Brand Management by David Arnold
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Kevin Lane Keller’s : Strategic Brand Management Process*
Identify & Establish Brand Positioning and Values Plan & Implement Brand Marketing Programmes Measure & Interpret Brand Performance Grow & Sustain Brand Equity * Strategic Brand Management by Prof. Kevin Lane Keller
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However there is a need for a model tailored for Indian needs
To answer some pertinent questions specific to our country : How does a business build brand value ? Can we evolve a methodology that could be applied to a developing country such as India ?
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The Brand Building Pentagon
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The Brand Building Pentagon
At the core of any brand building activity are the central variables that describe a brand : Attributes/ingredients Pricing Distribution Packaging Contribution (P&L) These key variables need to be systematically evolved in a sequential procedure for brand building
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : The Five Stages
Brand Appraisal “There is a gap in the market. But is there a market in the gap ?” Market Analysis Competitive Analysis Consumer Analysis Competency Analysis
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Brand Appraisal Components
Macro Socio-Economic Analysis Market Analysis Brand Appraisal Consumer Analysis Competition Analysis Competency Analysis
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Market Analysis Volume Analysis Size / Growth / Segments
Value Analysis Size / Growth / Price Segments Overall size of Market Geographic Segments Size Growth Seasonality Peak Lean Distribution Width Depth
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Consumer Analysis Total SEC Segments Urban / Rural Consumer Numbers
Usage Penetration Heavy / Medium / Light Buying Process Consumer Behaviour Decision makers / Influences
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Consumer Analysis Need Recognition Internal Factors Socio Economic
Psychology Family Culture Search for alternatives Evaluation of alternatives External Factors Advertising Word of mouth Dealer Influences Purchase Post – Purchase Feelings
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Complementary Products Supplementary Products
Competitive Analysis Major Players Niche players Future Players Competitive Analysis Complementary Products Supplementary Products
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Third Party management skills
Competency Analysis Third Party management skills Technical tie-ups Technical Skills R&D People Skills Selling Skills Financials Core Competency Company
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Brand Appraisal to help build Strong Brands
Product Product Brand Brand Strong Brand With a Name Plus Mosquito Mos. Mat Banish Tortoise Good Knight Mat with Jet Althrin
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : The Five Stages
Brand Definition What will the Brand stand for ? Brand Reasons Brand Positioning Brand Personality / Image Brand Mapping
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Brand Definition Chart
Laddering Rational Emotional Gap Analysis Brand Reasons Circle Position of Typologies Testing & Validation Brand Definition Brand Positioning Prism Brand mapping Past, Present, Future Brand Image Triangle Personality Habits Attitude
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Benefit Laddering Famous mother (Sehwag ki maa) Proud mother
Cricket Captain IAS / IIT / Doctor Strong kid Success in exams Success in sports Mental growth of kids Physical growth of kids Child can grow All ingredients a child needs Health beverage with 23 vital ingredients
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Gap Analysis Cosmetic Good taste Poor taste Medicinal Anchor
Colgate Gel Close Up Colgate Forhans Vicco Pepsodent Total
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Testing and validating
Brand / Product Development Funnel Many Reduced Fine Tuning Final Launch Product Variations Marketing Options Options Variables Marketing Research Process Demand Estimation Positioning Testing Advertising Testing Market Testing
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David Aaker’s Branding Model
Trust Extended Logo Awareness Big Core Solutions Essence Tech Skill Service Professional E-Biz IBM
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J.N. Kapferer’s Prism PICTURE OF SENDER All IT needs Confident
Personality Physique Security Assurance Big Ivy League Wall St IBM Culture Relationship Reflection Self Image Thorough Professional I’m a perfectionist
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Kevin Lane Keller’s Brand Pyramid
Intense active loyalty Relationship Resource Positive accesible reactions Response Judgement Feelings Meaning Point of parity Point of difference Performance Imagery Salience Identify Deep broad awareness
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…but how does one build brand personality?
Building the brand personality is an important part of brand definition… …but how does one build brand personality?
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Drivers of Brand Personality
Packaging (Frooti) Price (Nirma) Product Category (Starbucks) Attribute (Dove, Oil of Olay) CEO (Narayan Murthy) Brand Personality User Imagery (Raymond) Company Image (TATA) Country of Origin (L'Oreal) Sponsorships (Pepsi, MTV) Advertising (Bacardi) Symbol (Pillsbury Doughboy) Age (Chivas Regal)
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However, the Brand Personality should tie in with the other elements of the Brand Definition
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Brand Definition Brand Reasons Brand Position One Brand
Brand Personality Brand Image Brand Mapping
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : The Five Stages
Brand Articulation How will the Brand express itself to its target consumers ? Brand Identity Brand Communication Brand Service
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Brand Articulation Name Colour Design Logo &Symbols Brand Identity
Brand Communication Brand Service Direct Marketing Packaging Service Internal Advertising Surround
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Roadmap to IMC Development
Analysis Execution Creative Idea Brief Competition Mass Media Proposition Core Consumer Support Direct Extension Tone and Manner Competency Other
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FCB Grid Thinking Feeling High Involvement Low Involvement
Learn-Feel-Do I Feel-Learn-Do II Learn-Feel-Do III Feel-Learn-Do IV
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Using Advertising to build Brand Personality
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Advertising Personality: A Subset of the Brand Personality
Ad personality is derived from the intended brand personality The part of the brand personality that the advertiser would like to convey Advertising personality would be a subset of the intended brand personality Example: Indica Advertising Personality: Male, Confident, Tough, Competent Brand Personality: Male, Confident, Tough Competent, Middle class, Indian, Strong
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The Advertising Personality
Defined as the personality of the brand as portrayed by its advertising Essentially, based on only the ad, what kind of person would the brand be? One of the key drivers of brand personality
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Drivers of Advertising Personality
Tone and Manner Look and Feel Symbol Advertising Personality User Imagery Endorser Brand Protagonist
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Tone and Manner Tone and the manner portrayed by the ad directly portrays a picture of the brand Wide variety of tones such as witty, tongue in cheek, angry, aggressive, friendly etc used Examples: MTV: irreverently humourous Pepsi: young, funny, boisterous
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4 Ps of Packaging Packaging Pickability Pricing Portability Protection
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DM Spiral Build Database Communicate Get referral Reward Gain loyalty
Direct Marketing
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : The Five Stages
Brand Measurement The way we need to track performance of the brand Brand Audit Brand Track Brand Dashboard
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Monthly / Daily Very short term
Brand Measurement Brand Measurement Brand Audit Brand Track Brand Dashboard Annual Bi-annual Long term Monthly / Quarterly Short term Monthly / Daily Very short term
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Consumer Track Scores Consumer Track Current usage Ever usage
Awareness Brand Image Scores
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Brand Awareness Level Brand TOM Unaided Awareness Aided Awareness
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Brand Audit
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Brand Audit Analysis of available information
Brand experts Interviews/Audit Missing Data Points New Hypothesis Action Points Larger Data gathering Exercise
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Brand Measurement System
Brand Dashboard Brand Track Brand Audit Periodicity Monthly Quarterly Annual or Weekly Bi annual Data Limited Expanded Complete Data analysis Sources Internal Internal Comprehensive Syndicated Syndicated Studies Tracking Expert interviews Studies Scope Indicative Indicative and Diagnostic and diagnostic prescriptive
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : The Five Stages
Brand Expansion Should the Brand be extended into other related categories ? Brand Extension Brand naming structure Brand Portfolio Management Brand Valuation
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Brand Expansion Brand extension Brand naming structure Brand Expansion
Brand valuation Brand portfolio management
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Brand Extension Brand Varianting Brand Brand Line Extension
II Brand Extension III
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Brand Extension Grid New Drill on Deeper Wild Card Current Status
Technology Existing Existing New Customer Drill on Deeper Wild Card Current Status Wider Appeal
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Brand naming structure
Corporate Tata HP GM Endorser Chevrolet Product Indica Jet Cimarron Product line Laser Jet Estate Model V2 630C X5 Branded Feature Instacool Super Colour Large Load
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The Brand Building Pentagon
1. Brand Appraisal Brand Execution Product Price Promotion Place Packaging Service P&L Brand Expansion Brand Definition Brand Measurement Brand Articulation
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The Brand Building Pentagon : At the Core
Brand Execution Defining the 4 P’s as well as other elements of the brand variables such as packaging, people and profits Continually keeping an eye on the various parameters that make up the brand offering Maintaining a constant balance –counter balance within the elements of the marketing mix
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Brand Execution Appraisal Expansion Definition Execution Brand
Articulation Appraisal Definition Expansion Measurement Execution
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Brand Execution Components
Product Price Promotion Brand Execution Place Packaging Profits People
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Promotion Mix Advertising Consumer Promotion Sales promotion Promotion
Events Direct Sampling PR
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Brand Costs Cost of Production Raw material Labour Power & Utilities
Administration Interest Depreciation FDP Factory Delivery Price COM Cost of Marketing CC Corporate Charges Top Management Human Resources & Training Finance Dept. Research & Development Selling Cost Promotion Cost Marketing Administration Transportation / Logistics Distribution
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Brand Building Pentagon Expanded
Consumer Analysis Marco Socio- Economic Analysis Market Analysis Competition Analysis Competency Analysis Brand Execution - Product - Price - Promotion - Place - Packaging - Service - P&L Brand Expansion Brand Definition Brand Appraisal Brand Measurement Brand Articulation Brand Extension Brand Reasons Brand Valuation Brand Positioning Brand Portfolio Management Brand Mapping Brand Naming Structure Brand Image Brand Audit Brand Track Brand Dashboard Brand Identity Brand Service Brand Communication
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The Brand Building Pentagon : A Summary
Carefully examines each element of the marketers’ brand Interrogates microscopically, the finer nuances of the brands character and equity Provides a framework to objectively peruse the brand details Provides ample scope to execute a brand vision
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