Brand Building in the 21st century

The Leapfrog view on how to build successful brands

What is a brand?Dictionary of Business and or Management definition A brand is a name, sign or symbol used to identify items services of the seller(s) and to differentiate them from goods of competitors.

With the recent paradigm shift in marketing thinking, this definition has undergone a changeContemporary definition of brand A brand is a collective perception in the minds of consumers.

A brand is beyond a product or service and it may or may not be tangible a sum total of experiences that forms a perception in consumers minds built through total experience not only through effective advertising

What is branding?

Branding is identifying the essence of a companys core characteristics (or at least the characteristics it publicly displays) and how those characteristics (or values) are presented

Some aspects about branding It acts as the driving force in presenting the brand characteristics/ values to its customers It is all about timingBranding is all about timing. Companies forget that branding is sometimes like a Formula One race. The issue is not being in the race or completing it; it is about finishing in positions 1 or 2 Kapferer

What is Brand Architecture?

Brand architecture is an organizing structure of a brand portfolio that specifies the roles and relationships among brands and different product-market contexts It is the vehicle by which the brand team functions as a unit to create synergy, clarity & leverage

Brand Relationship Spectrum

Branded House

Subbrands

Endorsed Brands

House of Brands

Same Identity

Different IdentityAT&T Business Services AT&T Wireless Reliance Energy and Reliance Capital

Master Brand as Driver

CoDrivers

Strong Endorsement

Linked Name

Token Endorsement

Shadow Endorser

Not Connected

Goldman Sachs

Toyota Camry

IBM ThinkPad

Post-it by 3M

MSN

Viagra by Pfizer

Tide (P&G)

ABC (Disney)

Samsung

Bajaj Pulsar

Sony Walkman

Titan by Tata

CitiFinancial

Kurkure (Pepsi Foods)

Westside (Tata)

Crossword (K. Raheja Group)

Source: David A. Aaker, Brand Portfolio Strategy

The role of Brand Architecture The implementation of a masterbrand portfolio Creates a solid foundation to drive the growth of successful master brands (or Megabrands) Defines the relationship between core brand and sub- or spin-off brands

Source: D. John Loden, Megabrands, 1992

The Brand Building ProcessIn building a brand we need to: Identify the core values of a company and how they need to be presented Creating an organized structure of a portfolio that specifies the roles and relationships

Common myths of brand building

Brand building is . Advertising Brand building is creating awareness Brand Building is a Marketing Communications responsibility

Brand building is about orchestrating a flawless and unique experience Brand Strength needs to be gained from advocacy (not awareness) Brand building is closely aligned to business strategy

A view to brand buildingCase studiesOrange Volkswagen Tata JET Airways

Three levels of Brand ArchitectureCorporate BrandThe Brand Print of the Organization

Master BrandsPrimary indicator of the offering

At each level, various aspects of the brand are reinforced

Product BrandsBrand that defines each product line

Source: David A. Aaker, Brand Portfolio Strategy

OrangeLevel 1 Master Brand

Orange : The bright human future

Level 2 Service offerings

Basic Service Offerings (eg. EFR sound, network, per second billing etc.)

Level 3 Product Offerings

Talk Plan

Just Talk

Group Share Business

Community

Level 4 Consumer segmentation

(communication matrix)

Student

Working

Family

VolkswagenIRREVERENCE Level 1 Corporate BrandMeet the unexpected (from the people you expected that from)

FREEDOMAs interpreted by different consumers, and reflected in each model

QUALITYPerformance / Design / Safety

Level 2 Master Brands

GOLFThe Contemporary Classic

PASSAT BEETLEThe Mini-Celebrity

TOUAREGThe Paradox: Suburbia without the sell-out

JETTAThe Class President

The Ambassador (Class President Grown Up)

Level 3 Target Consumer

17-35 yr olds ( prefamily) who appreciate heritage and admire innovation.

17-60 yr olds (2 tiers) who appreciate difference in a world of conformity.

25-35 yr old exponents of understated cool.

30-50 yr old exponents of understated distinction.

30-45 yr olds who want quality and quantity.

Tata GroupLevel 1 Corporate Brand

Integrity Understanding Excellence Unity Responsibility Tata MotorsTrust Best-in-class Investment in R&D Environmental responsibility

Level 2 Master Brands

Tata Power

TitanUnderstanding of consumer/ category segments Best in class design capability Achieving manufacturing competencies Corporate responsibility

Indian HotelsDevelopment of Indian tourism and hospitality industry Best in class in the hospitality industry in India and the world Corporate responsibility

Trust Corporate responsibility

Level 3 Product Offerings

Indica Indigo Ace

Tata Power

Titan Sonata Fastrack Xylys

Taj Hotels & Resorts

The Leapfrog Process of Brand Building

Key steps in the Brand Building ProcessStep 1- Brand AuditWhere are we? Why are we here? What are the critical drivers for success?

Step 2- Understanding the inside-out view of changeUnderstanding the business context in the future through interviews with stakeholders, key partners and suppliers

Step 3- Understanding the outside-in view of changeUnderstanding consumer, technology, trends and driving forces, social system relationships and social change patterns

Step 4- Brand Vision WorkshopArriving and articulating at a 20-20 Brand Vision Identifying core values at a corporate brand level and how these values are transferred to the sub/ spin off brands at a master brand level

Step 5- Brand Positioning StatementArriving at the Brand Positioning Statement both at a corporate brand level as well as at the master brand level, that includes each business of the group

Step 6- Creative Brief for communication strategyA communication strategy can now be developed at the master brand level for each business entity of the corporate group

Brand Building for JSWJSW Steel Limited, a US $ 2.5 billion Company is part of US $ 8 billion O P Jindal Group. The enterprise is headed by Mr.Sajjan Jindal and is amongst the finest steel producers in the world. The group is forging ahead with great speed and a greater commitment in Sector viz. Steel, Energy, Ports & Maritime Infrastructure, IT, Cement and Aluminum.

Brand Building for JSWIn order to achieve a business mileage, JSW Group is looking out for a partner that can assist in synergizing its communication and giving Integrated Marketing Solutions on a Retainership Business Approach. The key effect is to send out a uniform message to all stakeholders; drive company/product rub off to the mother brand; inculcate brand pride among all stakeholders.

Brand Building for JSWTo start the Brand Building Process, here are a few critical questions that one should begin by asking: 1. What are some of our beliefs that are ingrained in our DNA? 2. Who do we see as our role models in the various lines of business? 3. What are some of the values of our role models that we would like to imbibe in ourselves? 4. What is the nature of success that we want to achieve for ourselves? 5. What is the vision that we want to work towards?

Why is this process necessary?To unify all the components of the corporate machinery with common vision, mission and goals.

Why is this process necessary?To ensure that the various corporates within the JSW group have defined guidelines and norms for brand building and protocols to be followed.

Why is this process necessary?To avoid getting into an expensive, time-consuming and tedious process of course correction a few years down the line.

Why is this process necessary?To go beyond a mere corporate branding exercise and a corporate campaign make an attempt to arrive at the DNA of the group and how it manifests in its individual companies.