Shiv Shankar Tripathi

August 23rd, 2010

Hyderabad

“The least of things with a meaning is worth more in life than the greatest of things without it” – Carl Gustav Jung

Building a Brand: Factors to be considered

Source: David Jobber

Why Brand Positioning

As consumers, we are all influenced by the effects of a powerful brand positioning-"brainwashed," so to speak-to have preference for one versus another. But today there are so many choices for consumers that this term has a secondary derivation-"whitewashing."

The brand choices are so varied and the differentiation so minimal in terms of product functionality that we're faced with a sea of indiscernible offerings. This is why it is critical for a brand to be well positioned and uniquely differentiated.

Brand Positioning defined Positioning means owning a credible and profitable

“position” in the consumer’s mind, either by getting there first, or by adopting a position relative to competition, or by repositioning the competition.

- Al Ries and Jack Trout in “Positioning: The

battle for your mind”

Examples: Cinni fans, Tata, Exide, Lifebuoy, Colgate.

Brand positioning: Perceptual Map

Brands can be positioned against competing brands on a perceptual map.

A perceptual map defines the market in terms of the way

buyers perceive key characteristics of competing products. The basic perceptual map that buyers use maps products in

terms of their price and quality, as illustrated on the next slide:

The Brand Building Perceptual Map

The Brand Positioning Process

Understanding all stakeholder

needs and desires

Brand Architecture

Opportunity Modelling

Brand Platform

Brand Identity

Continuous evaluation

and development

1. Understanding all stakeholder needs and desires

Consumer’s needs

Corporate Need

Shareholders/Investors needs

Channel Partners need

Example: P&G - Tide and Ariel

Mahindra, Jaguar or Land Rover

Volkswagen - Beatle

2. Opportunity Modelling for Positioning

Relevance

Differentiation

Credibility

Stretch

Successful Brand Stretch of Dove Source: ‘Brand Stretch’ by David Taylor

3. Brand Platform: Taking up a position in the market

4. Brand Identity: Reflecting Brand positioning in the name

Descriptive: Kingfisher Airlines, IBM

Associative: Bajaj Pulsar, TVS Scooty, Outlander

Abstract: Kodak, Accenture, Lemon Mobiles

5. Brand Architecture: Organise to deliver value

Brand architecture creates value through clarifying all levels 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

Brand Architecture Structures 1. Freestanding Brand Standalone brands, little or no connection with parents. E.g. Garnier 2. Endorsed Brand Parent (Source) brand provides credibility, personal relevance of the brand may not be clear. E.g. Maruti cars 3. Overbrand Individual business units or brands operate under a strong parent, dual communication with unique positioning by leveraging the credibility of the source. E.g. Hyundai i10, i20, i30, SUVs like Tata Safari, Mahindra Scorpio, Mitsubishi Outlander, Ford Fortuner. 4. Masterbrand A single brand spans a set of offerings that operate only with descriptive offerings, continual product innovation, new releases and so on. E.g. Taj Hotels, Kingfisher Airlines, Kerala Tourism.

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

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 recent annual report. Nearly half of that growth came from new business areas, some that bear the Disney name and some that do not. Here is a company that not only understands its vision and meaning but clearly understands its parameters of relevance. What is the Disney story?

Walt Disney was a visionary. And his vision for the Disney Company was not to crank out cartoons or build theme parks, but "to make people happy." I think I can safely say that virtually everyone in the developed nations of the world is crystal clear 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-branding effort, the Disney promise is aligned with our expectations. Its branding decisions make sense.

Case II: Microsoft Microsoft, a company that was started in a hotel room by a

couple of college dropouts with one compelling vision: a computer on every desk and in every home. It may have been a brazen 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 vast array of software programs in 60 countries; having a net income of more than $2 billion. But as much as it has grown, it has never lost sight of its original vision. Everything about Microsoft-its products, its marketing and, most important, its brand positioning-is still driven by the idea of a computer on every desk and in every home.

Baseline Our ground work takes you sky high

Headline: Helping another Indian chart the global skies

Brand Extension and Brand Stretching Marketers have long recognised that strong brand

names that deliver higher sales and profits (i.e. those that have brand equity) have the potential to work their magic on other products.

The two options for doing this are usually called “brand extension” and “brand stretching”.

Brand extension Brand extension refers to the use of a successful brand

name to launch a new or modified product in a same broad market.

A successful brand helps a company enter new product categories more easily.

Brand stretching Brand stretching refers to the use of an established

brand name for products in unrelated markets.

Brand Extension and Brand Stretching When done successfully, brand extension can have several advantages: Distributors may perceive there is less risk with a new

product if it carries a familiar brand name. If a new food 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 more likely to trust the new product.

The new product will attract quicker customer awareness and willingness to trial or sample the product

Promotional launch costs (particularly advertising) are likely to be substantially lower.

Conclusion To conclude:

Companies who build their corporate names or any of its products a successful brand never lose their original vision.

They keep on innovating continuously so that their brand stays relevant, desirable and consistently provides value to the customers besides creating brand equity for the company.

The brand becomes mature when not the company but customers start taking ownership of the brand and drive the company.

Further Reading/References

Batey, Mark, “Brand Meaning”, Routledge, New York.

Clifton, Rita Et al., “Brands and branding”, Economist books.

Taylor, David, “Brand Stretch”, John Wiley & Sons.

D’Allasandro, David F, “Brand Warfare – 10 Rules for building a killer brand”, McGraw Hill Publications.

Knapp, Duan E, “Brand Promise”, McGraw Hill Publications.

SuperBrands India

Images Retail magazine.

Thank You.