customer perception on brand awareness suzuki two wheelers karimnaar

7/30/2019 Customer Perception on BRAND AWARENESS SUZUKI Two Wheelers Karimnaar

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INTRODUCTION

BRAND

Brand is the "name, term, design, symbol, or any other feature that identifies one

seller's product distinct from those of other sellers e.g Music." Initially,Branding was

adopted to differentiate one person's cattle from another's by means of a distinctive

symbol burned into the animal's skin with a hot iron stamp, and was subsequently

used in business,marketing and advertising. A modern example of a brand is Coca

Cola which belongs to the Coca-Cola Company.

A brand is often the most valuable asset of a Corporation. Brand owners manage theirbrands carefully to create shareholder value, and brand valuation is an important

management technique that ascribes a money value to a brand, and allows marketing

investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize

shareholder value. Although only acquired brands appear on a company's balance

sheet, the notion of putting a value on a brand forces marketing leaders to be focused

on long term stewardship of the brand and managing for value.

The word "brand" is often used as a metonym, referring to the company that is

strongly identified with a brand.

Marque or make are often used to denote a brand ofmotor vehicle, which may be

distinguished from a car model. A concept brand is a brand that is associated with an

abstract concept, likebreast cancer awareness orenvironmentalism, rather than a

specific product, service, or business. A commodity brand is a brand associated with

acommodity. Got milk? is an example of a commodity brand.

Definition of 'Brand'

A distinguishing symbol, mark, logo, name, word, sentence or a combination of these

items that companies use to distinguish their product from others in the market.
http://en.wikipedia.org/wiki/Livestock_brandinghttp://en.wikipedia.org/wiki/Branding_ironhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Metonymyhttp://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Car_modelhttp://en.wikipedia.org/wiki/Breast_cancer_awarenesshttp://en.wikipedia.org/wiki/Environmentalismhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Got_milk%3Fhttp://en.wikipedia.org/wiki/Livestock_brandinghttp://en.wikipedia.org/wiki/Branding_ironhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Metonymyhttp://en.wikipedia.org/wiki/Motor_vehiclehttp://en.wikipedia.org/wiki/Car_modelhttp://en.wikipedia.org/wiki/Breast_cancer_awarenesshttp://en.wikipedia.org/wiki/Environmentalismhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Got_milk%3F


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Brand elements

Brands typically are made up of various elements, such as:

Name: The word or words used to identify a company, product, service, orconcept.

Logo: The visual trademark that identifies the brand.

Tagline or Catchphrase: "The Quicker Picker Upper" is associated with

Bounty paper towels. "Can you hear me now" is an important part of the

Verizon brand.

Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen

Beetle are trademarked elements of those brands.

Colors: Owens-Corning is the only brand of fiberglass insulation that can be

pink.

Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a

famous example.

Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.

Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven

herbs and spices for fried chicken.

Movements: Lamborghini has trademarked the upward motion of its car

doors.

Customer relationship management


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BIRTH OF AUTOMOBILES IN THE WORLD

The History of the automobile actually began about 4,00years ago when the first

wheel was used for transportation in India. Several Italians recorded designs for wind-

driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type

drive to gears and thus to wheels. Vaturio designed a similar vehicle that was also

never built. Later Leonardo da Vinci designed clockwork-driven tricycle with tiller

steering and a differential mechanism between the rear wheels. In the early 15th

century, the Portuguese arrived in China and the interaction of two cultures led to a

variety of new technologies, including the creation of a wheel that turned under its

own power. By the 1600s, small steam-powered engine models were developed, but it

was another century before a full-sized engine-powered vehicle was created.

A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-

powered vehicle for the Chinese Emperor Chien Lung in about 1678. There is no

information about the vehicle, only the event. Since James Watt didnt invent the

steam engine until 1705, we can guess that this was possibly a model vehicle powered

by a mechanism like Heros steam engine-a-spinning wheel with jets on the periphery.

Although by the mid-15th century the idea of a self-propelled vehicle had been put

into practice with the development of experimental vehicles powered by means of

springs, clockworks, and the wind. Nicolas-Joseph Cugnot of France is considered to

have built the first true automobile in 1769. Designed by Cugnot and constructed by

M.Brezin, it is also the first vehicle to move under its own power for which there is a

record. Cugnots three-wheeled steam-powered vehicle carried four persons and was

meant to move artillery pieces. It had a top speed of a little more than 3.2 km/h (2mph) and had to stop every 2minutes to build up a fresh steam.

Evans was the first American who obtained a patent for a self-propelled carriage. He,

in fact, attempted to create a two-in-one combination of a steam wagon and a flat-

bottomed boat, which didnt receive any attention in those days. During the 1830s, the

steam vehicle had made great advances. But stiff competition from railway companies

and crude legislations in Britain forced the poor steam vehicle gradually out of use on

roads.


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Carl Benz and Gottlieb Daimler, both Germans, share the credit of changing the

transport habits of the world, for their efforts laid the foundation of the great motor

industry, as we know it today. First, Carl Benz invented the petrol engine in 1885 and

a year later Daimler made a car driven by motor of his own design and the rest is

history.

Daimlers engine proved to be a great success mainly because of its less weight that

could deliver 1000rpm and needed only very small and light vehicles to carry them.

France too had joined the motoring scenario by 189when two Frenchmen Panhard and

Levassor began producing vehicles powered by Daimler engine, and Daimler himself,

possessed by the automobile spirit, went on adding new features to his engine. He

built the first V-Twin engine with a glowing platinum tube to explode the cylinder

gas-the very earliest form of sparking plug.

Charles Duryea built a motor carriage in America with petrol engine in 1892,

followed by Elwood Haynes in 1894, thus paving the way for motorcars in that

country.

For many years after the introduction of automobiles, three kinds of power sources

were in common usesteam engines, gasoline or petrol engines, and electric motors. In

1900, over 2,30automobiles were registered in New York, Boston, Massachusetts, and

Chicago. Of these, 1,17were steam cars, 80were electric cars, and only 40were

gasoline cars.

In ten years from the invention of the petrol engine, the motorcar had evolved itself

into amazing designs and shapes. By 1898, there were 5automobile-manufacturing

companies in the United States, a number that rose to 241 by 1908. In that year,

Henry Ford revolutionized the manufacture of automobiles with his assembly-line

style of production and brought out the Model T, a car that was inexpensive, versatile,

and easy to maintain.

Herbert Austin and William Morris, two different carmakers, introduced mass

production methods of assembly in the UK, thus paving the way for a revolution in

the automobile industry. Austin Seven was the worlds first practical four-seater baby

car which brought the pleasures of motoring to many thousands of people who could


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efficient low power bikes, demand swelled, resulting in Hero Honda - then the only

producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and

Hero Honda brought in the first two-stroke and four-stroke engine motorcycles

respectively. These two players initially started with assembly of CKD kits, and later

on progressed to indigenous manufacturing. In the 90s the major growth for

motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of

nearly 25% CAGR in the last five years. The industry had a smooth ride in the 50s,

60s and 70s when the Government prohibited new entries and strictly controlled

capacity expansion. The industry saw a sudden growth in the 80s.

It was in the year 1954 that the Indian government ordered for total number of

80motorcycles to man the Pakistani borders. In came the Bullets which were initially

launched in England as a 350cc bike and it was upgraded to 500cc a year or so later.

These bikes have remained unaltered, barring some cosmetic changes which have

undergone over the years. Thus one can say without much of a doubt that the 1955

Bullet was one of the initial hits of the Indian two-wheeler industry and till today it

continues to be a darling of the motorcycle enthusiasts.

Enfield Bullet had a close competition with another sturdy bike named Rajdoot; as the

bike was strong enough to handle the rough Indian roads. The company had roped in

Indian Heman Dharmendra for the promotion of the bike. With more than 1.6 million

vehicles on the road the Rajdoot motorcycle was one of the initial hits of the earlier

years of two-wheeler history in the country.

When heavy motorcycles were the order of the day, a relatively lighter bike had

caught on the imagination of the Indian two wheeler user. Ind- Suzuki bike launched

by the then TVS Suzuki group was an instant hit; however the bike could not sustain

it's initial success due to the high import content in the vehicle and less of

localization.

In scooters Bajaj Chetak has been hugely responsible for adding momentum to the

transport system of the country, till today it remains one of the most successful brands

to have come out of the Bajaj stable. The scooter is named after the horse oflegendary Rana Pratap Singh. These sets of two wheels have become a part of the


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Indian milieu and are often considered a representative of the Indian middle class

aspiration. Very few two-wheelers have been able to emulate the success, which Bajaj

Chetak has achieved over the years.

Similarly LML Motors enjoyed a reasonable success with the launch of LML Select

which came with new age technology and improved performance.

The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn

vehicles in 1990. The entry of Kinetic Honda in mid-eighties with

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a

decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in

FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for

recession in the sector were the incessant rise in fuel prices, high input costs and

reduced purchasing power due to significant rise in general price level and credit

crunch in consumer financing. Factors like increased production in 1992, due to new

entrants coupled with the recession in the industry resulted in company either

reporting losses or a fall in profits.

India is one of the very few countries manufacturing three-wheelers in the world. It is

the world's largest manufacturer and seller of three-wheelers. Bajaj Auto commands a

monopoly in the domestic market with a market share of above 80%, the rest is shared

by Bajaj Tempo, Greaves Ltd and Scooters India. a variometric scooter helped in

providing ease of use to the scooter owners.

SEGMENTATION OF TWO WHEELER:

A Two Wheeler Sector Sub-Segmenting in the three Segments

Motorcycle

Scooter

Mopeds


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GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO

WHEELER INDUSTRY:

The growth witnessed by the Indian two wheeler industry indicates the growing

demand for low cost personal transportation solutions amongst the 30million Indian

middle class consumers. Despite this spectacular growth rate, the two-wheeler

penetration (number of two wheelers per 100inhabitants) in India remains lower than

other Asian countries. This fact provides an opportunity for continued growth in the

market. India has the lowest Penetration of two wheelers as compared to countries

like Taiwan, Thailand, Malaysia, Vietnam, Indonesia and China. In the present

scenario, growth in the two wheelers Industry will be driven by several factors

Rise in Indias Young Working Population:

With the rising levels of per capita income of people, the Indian two wheeler market

offers a huge potential for Growth. This growth is relevant in the light of the fact that

7per cent of Indias population is below the age of 35 Years and 15million people will

be added to the working Population in the next five years. The number of women in

the urban work force is also increasing; this will lead to the Growth of gearless

scooters.

Rise of Indias Rural Economy and Growth in Middle Income Households:

The growth prospects of the Indian rural economy offer a significant opportunity for

the motorcycle industry in India. The penetration of motorcycles amongst rural

households with income levels greater than US$ 2,20per annum has already increased

to over 5per cent. The current target Segment for two wheelers, i.e., households

belonging to the Income category of US$ 2,20012,00is expected to grow at a CAGR

of 1per cent.

Greater Affordability of Vehicles:

The growth in two-wheeler sales in India has been driven by an increase in

affordability of these vehicles. An analysis of the price trends indicates that prices

have more or less stagnated in the past. This has been part of the marketing strategy


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adopted by the manufacturers to gain volume, as well as conscious efforts adopted to

bring down costs. The operating expenses of leading manufacturers have declined by

around 15 per cent in the last five years. With greater avenues of financing, the

customers capacity to own a two wheeler has improved.

Rapid Product Introduction and Shorter Product Life Cycle:

The last five years have witnessed a sharp increase in new product launches in the

two-wheeler industry. It is estimated that close to 5new products have been launched

by manufacturers during this period, filling up all price points and targeted at various

consumer segments.

Inadequate Public Transport Systems in most Urban Areas:

The economic boom witnessed in the country and the increased migration to urban

areas have increased the traffic congestion in Indian cities and worsened the existing

infrastructure bottlenecks. Inadequate urban planning has meant that transport systems

have not kept pace with the economic boom and the growing urban population. This

has increased the dependence on personal modes of transport and the two wheelers

market has benefited from this infrastructure gap.

FACTORS AFFECTING THE MARKET:

Post 1991, the Indian two-wheeler industry comprising of motorcycles, scooters and

scooterettes opened up tremendously. The Indian motorcycle industry has expanded at

a 24% CAGR over the last five years, It Captured almost 80% of the market primarily

at the cost of the scooter and Moped segment. The scooter segment though has

witnessed a revival with the launch of scooterettes aimed at young women and

adolescents.

The two-wheeler market can be segmented into three categories on the basis of price

Entry segment (


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differentiation.

Purchasing Power is relatively high with buyers becoming more discriminating.Reliability and economy have become more of a hygiene factor. Buyers now demand

two-wheelers that fit their personality thus increasing the scope for differentiation and

branding. Provision of financing through EMIs has provided a means to satisfy the

need of possess a convenient and stylish mode of transport in the form of a two-

wheeler. This has resulted in higher growth in the 125-150cc segment.

With the introduction of Government policies such as reduction in excise duty from

16% to 12% and allowing for 100% FDI Barriers to entry has reduced. However, the

investment required for setting up large distribution channels and service stations can

be a major entry barrier. Another significant entry barrier is the brand building

required. Thus, initially foreign players set up Joint Ventures with indigenous

companies. After establishing their brand they have launched their own line of

products. E.g. Honda with Hero Group and Yamaha with Escorts.

RISING CUSTOMER EXPECTATIONS:

The growth witnessed by the Indian two wheeler industry has attracted a number of

new entrants to the market and it is expected that the Indian industry will become

more competitive in the future. The excess of products introduced in the past has also

raised customer expectations with respect to reliability, styling, performance and

economy.

Inflation is a big factor that may play a part in moving the loyalties and aspirations of

people away from the four to the much cheaper and economical two-wheeler segment.

Moreover, the constantly increasing prices of oil and increasing interest rates on

finance are not helping the cause either. Environmental Concerns are also quite big on

the agenda these days and do play a part in the preference of consumers choices. The

rising global temperatures along with daily snippets in the national and international

media about the thinning of ozone and imminent environmental disaster have all

contributed to the making of a present day environmentally conscious consumer.


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ENVIRONMENTAL AND SAFETY CONCERNS:

The increasing demand for two wheelers will need to be managed to address issuesrelating to overcrowding of roads. Another problem is the insufficient infrastructure

for inspection to ensure adherence to emission norms. As the industry grows, it is

important to regulate the sale of used two wheelers in a more organized manner for

which a mechanism needs to be evolved. Unregulated sale of two wheelers, especially

in the rural areas, are likely to create issues related to emissions and safety of

vehicles.

SUZUKI MOTOR CYCLES GLOBAL HISTORY

In 1990, Michio Suzuki founds the Suzuki Loom Company in Hamamatsu, Japan. He

builds industrial looms for the thriving Japanese silk industry. 1937 To diversify

activities, the company experiments with several interesting small car prototypes, but

none go into production because the Japanese government declares civilian

automobiles non-essential commodities at the onset of WWII.

In 1952 when due to financial problems Suzuki ventured into developing clip on

engines to bicycle frames. The first model was called the Power Free (36cc) and the

follow-up model was the Diamond Free (60cc). Suzuki produced its first motorcycle

in 1954 called the Colleda (90cc). Suzuki built small capacity bikes during the 50s

and 60s and had only small export success until the introduction of the X6 (T2super

six), which gave Suzuki much name credibility. In 1962 Using MZs technology,

Suzuki wins the newly created 50cc class in the World Championship.

The company will win the class every year until 67, and win the 125cc class twice in

that period, too. With a well-established name Suzuki dared enter the big bike market

and in 1967 Suzuki introduced T500. Which was known as the Titan in America and

the Cobra in England? The name changed over the years to GT50due to many

improvements but it was purely the sharp price and good reliability, which kept the

GT in production until 1977.

In 1971 The GT7The Water Buffalo was introduced in 1971 in America and the


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Kettle in Britain - both the same GT75bike and the start for Suzuki to enter the super

bike market. The GT75wasn't a very impressive machine and also couldn't match the

other bikes in the market at the time. Once again the production kept going based on

its demand for good price and reliability.

In 1974 The RE5 is the first Japanese motorcycle with a rotary engine. It cost a

fortune to develop and, while not bad, its a commercial disaster. After two years, the

company abandons the project, and there are rumors the tooling was dumped into the

sea so that Suzuki managers would never have to see it again. Most bikes produced

around the middle 70s had enough power but lacked a steady frame. The introduction

of the Suzuki GS100in 1978 changed this problem once and for all. The GS out

preformed every other bike in its category and had a frame to match its power. The

only thing, which could be said against the very popular and successful GS1000, was

its dull looks.

The GS100was redesigned and new models based on the same original success bike

were introduced. The GSX100in 198and the GSX1100S Katana in 1982. The later

bike was a huge success due to it powerful performance, funky style, low weight and

good pricing. In 1983 The RG25is Suzukis first ever race replica. This bike features

the AL-BOX, square aluminum frame, 16-inch tire and Anti Nose Dive Forks

(ANDF) at the front. In 1985 The RG50Gamma features the same square-Four

cylinder layout as the as the factory Grand Prix bikes. Other racy features are the

square-tube aluminum frame and the removable cassette-type transmission.

Suzuki pulled a stunt within the motorcycle market by introducing the GSX-R750,

which was such a direct copy of their formula race bike with the only difference that

this GSX was, road legal. It turned the super sport motorcycle market upside downand dominated the way super bikes would look for the future. The GSX-R75was

super fast, which wasn't hard to understand since there were hardly any changes to its

racetrack design. Both on the street and in the race track the bike was a huge success.

In 1986 the GSX-R110was also added to the line.

In 1996 Suzuki calls the new GSX-R75the turning-point model thanks to its twin-spar

frame instead of the older double-cradle frame. The engine is also redesigned and

featured 3-piece crankcases, chrome-plated cylinders and a side-mount cam chain as


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well as Suzuki Ram Air Direct (SRAD) system.

In 1997 The TL1000S is the first Suzuki sport bike with a V-Twin engine. It will befollowed a year later by a racier R version, with a dodgy rotary vane damping system

in the rear shock. Suzuki equipped the TL1000R with a steering damper, but it was

still prone to headshake and customers approached it with caution, if at all.

In 199Mat Mladin wins the AMA Super bike Championship, beginning a run of

unprecedented dominance. Mladin will win five more times, and Suzuki will win 8 of

the next titles. With sport bikes getting more and more sharp edged, the company is

one of the first to recognize what might be called the semi-sport market, as opposed to

the super sport market. The SV65features an aluminum-alloy truss frame and a liquid-

cooled 90 V-Twin DOHC 4-valve engine. Suzuki calls the Hayabusa the ultimate

aerodynamic sportbike. Its powered by a 1298cc liquid-cooled DOHC in-line 4-

cylinder engine that becomes the darling of land-speed racers. The name means

peregrine falcon in Japanese.

The GSX style and line didn't change much over all the years with improvements

being made to the bike. A small fluke in design made Suzuki lose its performance

lead with the GSX-R1100. But the GSX-R75has remained a hit up until today. Maybe

still hurt by losing the performance edge with the GSX-R110redesign in the 1990s

Suzuki introduced the GSX-1300R (Hayabusa) in 1999. This sent the Honda

Blackbird packing and became the world's fastest production bike at a whopping

19mph (307 km/h). In 2001 Suzuki introduced an upgrade GSX-R75engine and

created the GSX-R100(998cc), which is a super bike with outstanding performance.

In 2003 the GSX-R100was restyled but still kept its position as a super class bike.

In 2005 Suzukis original 4-stroke motocross, the RM-Z450, is equipped with a 4-

stroke 449cc engine, which features the Suzuki Advanced Sump System (SASS).

Troy Corser gives Suzuki its first and only (so far) World Super bike Championship.

In 2006 The M109R, Suzukis flagship V-Twin cruiser is powered by a 1783cc V-

Twin engine with 112mm bore and 90.5mm stroke. It has the largest reciprocating

pistons in any production passenger car or motorcycle. In 2008 The B-King is


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launched, powered by the 1340cc Hayabusa engine; the B-King is Suzukis flagship

big Naked bike. Suzuki says it has the top-ranked power output in the naked category.

SUZUKI MOTORCYCLES INDIA HISTORY

Suzuki Motorcycle India Pvt., Ltd. engages in manufacturing two wheelers. The

companys products include motorcycles and scooters. It offers its products through a

network of dealers. The company was incorporated in 1997 and is based in Gurgaon,

India. Suzuki Motorcycle India Pvt., Ltd. operates as the subsidiary of Suzuki Motor

Corp.

Suzuki Motor Corporation (SMC), a global giant of motorcycle manufacturing is

headquartered in Japan. It holds major stake in its Indian subsidiary, Suzuki

Motorcycle India Private Limited (SMIL). SMIL was set up after Suzuki's re-entry

into the Indian two-wheeler market after it severed ties with partner TVS in 2000-01.

Suzuki was then the technology provider in the erstwhile joint venture company TVS

Suzuki. Suzuki Motorcycle India Pvt Ltd (SMIPL) is the latest entry into the already

crowded Indian two-wheeler segment with players like Hero Honda, Bajaj Auto,Honda, and TVS. SMIPL have started their Indian operations with a 125-cc mass-

market motorcycle. It has made an initial investment of Rs. 20crores to start their

Indian operations.

Company sources have revealed that Suzuki would follow up this 125cc bike with a

high performance 150-cc sibling sometime next year. And for the budget segment,

another 100cc bike is expected in the first quarter of 2006. Mass market is the initial

aim with plans to enter all the segments rapidly. They have their facilities located in

Gurgaon.

Suzuki had launched bike by diwali, which is the auspicious time for buying a new

vehicle in Indian families. Their setup in Gurgaon has the capabilities of

manufacturing one lakh motorcycles and they are ready to step that up massively if

the situation arises. They already have setup 4dealerships around the country and are

going to establish 4,000-5,00sq.ft showroom and service stations to provide services

to the customers. The parent company happens to be one of the largest manufacturers


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of two wheelers in the world with more than 2lakh bikes sold per annum. They are

popular for their range of high performance road machines, lightweight super bikes,

dirt bikes, street bikes, and motocross and fun bikes globally.

COMPANY PROFILE

Plant area and production capacity:

They have installed their manufacturing plant in Gurgaon (Haryana) having the

annual capacity of 2,50,00units. Total land area of the facility at Gurgaon is 37 acres

out of which the present plant is constructed in an area of 6.5 acres of land. The

remaining area of 30.5 acres is left for land development and future expansion.

CHAIRMAN:

Mr. Katsumi Takata

Main Products

Motorcycles and scooters

Head Office, Plants Facilities

Name

Address

Operations

Suzuki Motorcycle India Pvt Ltd

Factory Office

Village Kherki Dhaula, Badshahapur, N.H.-8, Link Road, Gurgaon. Fax No. - 0124-

417701Regd. Office Sales Marketing Office 2nd Floor, Plot No. 1,Nelson Mandela

Road, Vasant Kunj, New Delhi -11070Fax No. - 011-4607 5418

Head office affairs

Motorcycle engines assembling and machining


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Spare parts administration

Education, training and

Public relations

Research and development

Testing and development of motorcycles

MISSION OF SUZUKI

The core philosophy of SUZUKI is to provide VALUE-PACKED PRODUCTS.

Since the founding of SUZUKI Motor Corporation, the Organizations Endeavour has

always been to provide VALUE-PACKED PRODUCTS as one of the manufacturing

philosophies.

SUZUKI believes that VALUE-PACKED PRODUCTS come from the effort to carry

out Product development from customers point of view. This policy has been in effect

since Companys inception and has helped the Organization to meet customers needs.

As a result, Suzukis Products have become well received throughout the World.

SUZUKI is fully committed to create Products that meet customers demand by

utilizing its dynamic, long-nurtured technological advantage coupled with its fresh

and active human resources.

Develop products of superior value by focusing on the customers

Establish a refreshing and innovative company through teamwork

Strive for individual excellence through continuous improvement

GROWTH REPORT:

It has reported a growth of 47.66% in sales in the month of November 0at 14745 units

compared to 9986 units same month last year.

It has sold 14806 units in December 0listing a strong growth of 61% over its sales in

December 08 despite recession. This increase of sales is attributed to the tremendous


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response from the new product GS150R and ACCESS 125.

It has reported 93% growth in sales during the month of January 2010. It has sold

20441 units in January 1listing a strong growth of 93% over its sales in January 09.

It has sold 21752 units in March 1listing an impressive growth of 76% over its sales

in March 09. This increase of sales is attributed to the tremendous response from the

new product GS150R and ACCESS 125.

It has great plans for the coming year and this is only the beginning. Their objective is

to offer quality products and customer satisfaction to consumers. This growth

momentum will further accelerate in coming months.

SMPIL GROWTH REPORT IN 2011-12

OEMs 2008-09 2009-10 GROWTH

BAL 9,692 3,759 -61.22%

HHML 1,53,193 2,08,440 36.06%

HMSI 6,54,319 7,39,947 13.09%

KINETIC 5,522 - -100.00%

M&M 2W - 70,008 0.00%

SMIL 85,782 1,40,983 64.35%

TVS 2,39,469 2,99,370 25.01%

TOTLE 11,48,007 14,62,507 27.40%

FACILITIES

1 ) Environment:

The philosophy of keeping environment first is properly percolated downwards. To

comply with all applicable legislations and setting standards thereof remains only a

beginning. Company thrives to discover and invent mechanisms for better


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environment management systems and its a continuous process which is managed by

a separate wing of experts and specialist in the field.

The biggest testimony of Suzukis commitments towards environment first is seen at

Gurgaon which is built to be a Zero discharge plant.

SMIPL have embraced Natural light optimization system and water harvesting

systems besides several other measures to create better and cleaner environment

around us. All packaging material used by Suzuki is re-cycleable. A constant flow of

internal communication on environment related issues not only creates awareness

amongst employees but also helps in inculcating an environment friendly value

system.

2) SHOP FLOOR SAFETY MEASURES:

SMIPL have safety guards/safety curtains to ensure Operator safety on machines.

Company has also installed robots through out the facilities to reduce the ergonomic

stress on workers. There are gas detection systems installed to eliminate any gas

related accident and fire detection system for immediate information about any fire

related incident.

SMIPL have fire fighting system (manual automatic) for immediate handling of any

fire related accident. They have a fire tender (capacity 450liters water and 50liters

capacity foam).

Company try to maintain zero accident record through regular safety audit, frequent

training for staff, line associates and contractors. They organize different safety

programs and competitions to encourage employee awareness and involvement.

3) ENVIRONMENTAL UTILITY:

To take care of the health of all our employees, they maintain all international

parameters and standards for drinking water, treated water, ambient air shop floor,

office and the outside. They keep updating all these standards of health and welfare of

employees through a team of well qualified personnel in the R D laboratory.

4) QUALITY CONTROL:


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It has four main sections as follows:

Tested by SMC Japan with their international quality standards

Final (Vehicle) Inspection

Market Quality

5) PARTS INSPECTION:

The non conformities in the parts being procured may lead to production loss

degradation of the quality of the final output and life of the product. To ensure the

product, the dimensional, material, aesthetic performance inspection for the special

processes are carried out on the individual parts before they are declared fit for the

assembly

For carrying out the inspection activities effectively, we have the latest sophisticated

machines installed in the inspection area

6) FINAL (VEHICLE) INSPECTION:

Safety related parameters such as braking; clutch operation and other functional

defects of the vehicle. Emission related parameters for checking the conformance of

the exhaust gases with the emission rules. Functional aesthetic parameters are also

checked

7) MARKET QUALITY:

To act upon the customers feedback received from the service department for the up

gradation of the product

To resolve the quality issues being received from the market by visiting the suppliers

taking the corrective preventive measures for the same

Monitoring for the effectiveness of the measures taken for the particular problems

through the cut off engine/ frame numbers.

8) WORK CULTURE:


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Industrial Pollution.

Motorcycle used for any Competition (i.e.) Rallies (or) Races, if it is used for any

commercial purposes like Hiring etc. SMIPL undertakes no liability in the matter of

any consequential loss (or) damage caused due to failure of the parts. Parts repaired

(or) replaced under this warranty are warranted only for the original warranty period

of Suzuki motorcycles. Consumables like Engine Oil, TFF Oil, Grease, used for the

warranty repair are not covered under the application of the warranty.

MAJOR COMPETITORS

1) Hero motocorp

Hero Motocorp Ltd. formerly Hero Honda is an

Indian motorcycle and scootermanufacturer based inNew Delhi, India. Hero Honda

started in 1984 as a joint venture betweenHero Cyclesof India and Hondaof Japan.

The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200

Most Respected companies list has Hero Honda Motors ranked at 108.

In 2010, When Honda decided tomove out of the joint venture, Hero Group bought

the shares held by Honda, Subsequently, in August 2011 the company was renamed

Hero MotoCorp with a new corporate identity. On 4th June 2012,Hero

Motocorp approved a proposal to merge the investment arm of its parent-Hero

Investment Pvt. Ltd. into the automaker.The decision comes after 18 months of its

split from Honda Motor. In 2001, the company achieved the coveted position of being

the largest two-wheeler manufacturing companyin India and also, the 'World

No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero

MotoCorp Ltd. continues to maintain this position till date.

2) Honda Motorcycles Scooters India Private Limited

Honda motors of Japan is not a new name in the two wheeler scenario in the country,

they were in a tie up with the Firodias owned Kinetic group. However in the late 90s

they parted ways after problems arose over issues like introduction of new models,

advertising expenditure, marketing strategies and other related issues.

In the mid 8Honda motors of Japan joined hands with the largest bicycle maker of
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India the Hero cycles to create Hero Honda which in a couple of decades or so have

gone on to become the single largest motorcycle company in the world. Though

Honda has come on its own on the Indian market yet it will be providing

technological support to Hero Honda for the next ten years.

Thus presenting a unique situation in which the company will be in direct competition

with the company which it has been associated for nearly two decades. Honda

Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company

Japan eventually entered the Indian market with Honda Unicorn in 2004.

3) Bajaj Auto Ltd.

Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy

Industries of Japan to manufacture state-of-art range of latest two-wheelers in India.

The JV has already given the Indian market the KB series, 4S and 4S Champion,

Boxer, the Caliber series, and Wind125

Kawasaki Heavy Industries is a Fortune 50company with a turnover of USD 1billion

(Rs. 45,84crore). It has crafted new technologies for more than hundred years.

The technologies of KHI have redefined space systems, aircrafts, jet engines,

ships,locomotive, energy plants, automation system, construction machinery, and of

course high reliability two-wheelers KHI has given the world its legendary series of

600-1200cc Ninja and 160Vulcan bikes. Straight from its design boards, the

Kawasaki Bajaj Eliminator, India's first real cruiser bike, redefines the pleasure of

bikingin looks as well as performance.

Bajaj is the first Indian two wheeler automobile company in the market since 1945

with the name M/s Bacharj trading corporation private limited. In 195M/s Bacharj

trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto

obtains license from the Government of India to manufacture two- and three-wheelers

vehicles in 1959.

4) TVS Motors Ltd.

TVS Motor is a leading and trusted two wheeler company began with the vision of

TVS Scooty the founder of the Sundaram Clayton Group,


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the late T.S. Srinivasan - 'to design, develop and produce an affordable moped for the

Indian family.' This vision was realized in 198when TVS 50, India's first two-seater

moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. The company

has been known for its ruggedness and reliability.

TVS Motor has continually worked on innovation of the motorcycle

segment along with two wheeler range. The Suzuki Shaolin, developed by TVS

Suzuki is India's first 5-speed, 14cc motorcycle. Another example of the company

success is TVS Scooty, a 6cc Scooterette which keep one step ahead of its time in

India. The company is the third largest two-wheeler manufacturer in India and ranks

among the top ten globally. The company was the first in India to launch 2-seater

50cc moped and 100cc Indo-Japanese motorcycles. At present TVS Apache, TVS

Victor, TVS Scooty,

TVS Centra and TVS Fiero are the popular bikes in Indian market.

5) Yamaha Motor India (YMI)

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a

50:5joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha

acquired its remaining stake as well, bringing the Indian operations under its complete

control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan. India Yamaha Motor

operates from its state-of-the-art-manufacturing units at Faridabad in Haryana and

Surajpur in Uttar Pradesh and produces motorcycles both for domestic and export

markets. With a strong workforce of 200employees, India Yamaha Motor is highly

customer-driven and has a countrywide network of over 40dealers.

The company pioneered the volume bike segment with the launch of its 10cc 2-stroke

motorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-

stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba

(106cc) and Gladiator (125cc).

6) Royal Enfield Motors Ltd.

Established in 1955, Royal Enfield was the brand of the Enfield Cycle Company.

Royal Enfield is one the oldest bike on the road. The company is well known for


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producing motorcycles, but they also produce bicycle, stationary engines,

lawnmowers and rifle small parts for the Royal Small Arms Factory in Enfield. Royal

Enfield Motors Ltd. has its headquarter situated at Thiruvottiyur, Chennai, Tamil

Nadu, India.

In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and

later merged with it in 1994. The annual turnover of the company is Rs.1billion.

The corporate philosophy of Royal Enfield Motors Ltd. is built around quality and

unflinching loyalty to the customer. The ruggedness and reliability of the bike is

endorsed by the army, the police, the paramilitary forces and over 50institutions

which form part of the die-hard customer base of the Bullet, dubbed the Rajagadi, or

royal vehicle.

Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots, over 25dealers

and 15authorized service centers in India. The company also exports its products to

over 2countries including Canada, France, Japan, USA, Germany and UK.


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SANDEEP AUTOMOTIVES INDIA PVT. LTD.

Sandeep Automotives India Pvt. Ltd. was formed in the year 2009 in

Karimnagar and physically it is located at Kothirampur. The company is a Trader of

two wheeler, scooter, motorcycle. The Managing Director of Sandeep Automotives

India Pvt. Ltd.is Mr. Ponnam Sandeep Goud. Mainly the show room has been

established for the sale of Suzuki vehicles in Karimnagar. Sandeep Automotives India

Pvt. Ltd.has been providing better services to the consumers from the three years.

It has got a good reputation in Karimnagar town and it is convenient to all the

consumers.

Objectives of the Organization

To sell Suzuki two wheeler, scooters and motorcycles.

To provide services to the ultimate consumers of the vehicle.

To provide efficient & effective services to its consumers in time.

To facilitate financial assistance to the consumers.

ADDRESS:

SANDEEP AUTOMOTIVES INDIA PVT. LTD.,

No.8-6-448 And 448/A, Hyderabad Road

KOTHIRAMPUR,

KARIMNAGAR- 505001.

PH: 0878 150 2276111 2276555,

9985044400, 9985506677

SUZUKI BIKES AVAILABLE AT SANDEEP AUTOMOTIVES INDIA

PVT. LTD.,KARIMNAGAR.


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ORGANIZATION STRUCTURE

Sales ManagerD. Vijendar

Work ManagerRakesh

Team LeaderNaveen

AccountantMadhukar

ManagerBhoomaiah

MANAGING DIRECTORHarideep

DIRECTORSanddep


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Access 125 SPECIFICATIONS

Engine

Type 4 Stroke, Single Cylinder, Air CooledOHC

Displacement 124 cm3

Max. Power6.4 Kw@7000rpm

(8.58hp@7,000rpm)

Max. Torque9.8Nm@5000rpm (1.0kg-

m@5,500rpm)

Transmission CVT

Starter System Self & Kick

Suspension

Front Telescopic, Coil Spring, Oil DampedRear Swing Arm Type, Coil Spring, Oil

Damped

Brake

Front Drum (120 mm)

Rear Drum (120 mm)

Tyre Size

Front 90/100-10

Rear 90/100-10

Dimensions

Length 1,780 mm

Width 650 mm

Height 1,125 mm

Wheel Base 1,250 mm

Ground Clearance 160 mm

Seat Height 780 mm

Kerb Weight 115 kgs

Electrical

Battery 12V, 5Ah

Headlamp 12V 35/35w

Fuel Tank

Fuel Tank Capacity 6.0 L

Underseat Space 20 L


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GS150R SPECIFICATIONS

Engine

Type Air-cooled, 4-stroke, SOHC

Bore x Stroke (mm) 57.0 x 58.6

Displacement (cm3) 149.5

Max Power 13.8bhp @ 8,500rpm

Max Torque 13.4Nm @ 6,000rpm

Compression Ratio 9.35:1

Carburetor BS26 with TPS

Ignition CDI

Starting Electric & Kick

Transmission 6-speed (1-down, 5-up)

Suspension

Front Telescopic, Coil Spring, Oil Damped

Rear Swingarm Type Coil Spring, Oil andGas Damped

Tyre Size

Front 2.75-18 42P

Rear 100/90-18 M/C 56P

Brake

Front Hydraulic single disc

Rear Drum

Dimensions

Fuel Tank Capacity (l) 15.5

Overall Length (mm) 2,095

Overall Width (mm) 785

Overall Height (mm) 1,120

Wheelbase (mm) 1,335

Ground Clearance (mm) 160

Seat Height (mm) 790

Kerb Mass (kg) 149


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2. SLINGSHOT PLUS


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SlingShot Plus SPECIFICATIONS

Dimensions And Kerb Mass

Overall length 2,035 mm

Overall width 770 mm

Overall height 1,100 mm

Wheelbase 1,265 mm

Ground clearance 160 mm

Kerb mass (kg) 123

Engine

Type Air-cooled, 4-stroke, 1 cylinder,SOHC

Bore x Stroke 53.5 mm x 55.2 mm

Displacement (cm3) 124 cc

Compression ratio 9.6:1

Carburettor VM18

Starting Kick start

Air cleaner Non-woven fabric element

Lubrication system Wet sump

Transmission

Clutch Wet multi-plate type

Transmission 5-speed (1 down - 4up)

Chassis

Front suspension Telescopic, Coil spring, Oil damped

Rear suspension Swing-arm, Coil spring, Oil damped

Front brake Mechanical, Landing trailing, Drumtype

Rear brake Mechanical, Landing trailing, Drum

typeFront tyre size 2.75 -18 42P

Rear tyre size 3.00 -18 52P

Electrical

Ignition type CDI

Spark plug NGK

Battery Kick start: 12V, 2. 5Ah

Headlight 12V 35/35W

Brake light/Tail-Light 12V 21/5W

Fuel Tank : Capacities


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Including reserve 12.0 L

Reserve 2.1 L

3. HAYATE


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Hayate SPECIFICATIONS

Engine

Type Air-Cooled, 4-Stroke, 1-Cylinder, SOHC

Bore x Stroke (mm) 51.0 x 55.2

Displacement (cm

3

) 112.8Compression Ratio 9.5:1

Carburetor VM17

Starting Kick & Electric Start

Air Cleaner Non-Woven Fabric Element

Lubrication System Wet Sump

Front Telescopic, Coil Spring, Oil Damped

Rear Swing Arm, Coil Spring, Oil Damped

Tyre SizeFront 2.75-17 41P

Rear 3.00-17 50P

Brake

Front Mechanical, Leading-Trailing DrumType

Rear Mechanical, Leading-Trailing DrumType

Dimensions

Overall Length (mm) 2,030

Overall Width (mm) 720

Overall Height (mm) 1,070

Wheelbase (mm) 1,260

Ground Clearance (mm) 165

Kerb Mass (kg) 112

Transmission


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Clutch Wet Multi-Plate Type

Transmission Manual 4 Speed (4 Down)

Electrical

Ignition Type CDI

Spark Plug NGK

Battery 12V

Headlight 12V 35/35W

Brake Light/Tail Light 12V 21/5W

Fuel Tank Capacity (Ltrs.)

Including Reserve 8

Reserve 2

INTRODUCTION

The word "brand", when used as a noun, can refer to a company name, a product

name, or a unique identifier such as a logo or trademark.

In a time before fences were used in ranching to keep one's cattle separate from other

people's cattle, ranch owners branded, or marked, their cattle so they could later

identify their herd as their own.

The concept of branding also developed through the practices of craftsmen who

wanted to place a mark or identifier on their work without detracting from the beauty

of the piece. These craftsmen used their initials, a symbol, or another unique mark to

identify their work and they usually put these marks in a low visibility place on the

product.

Not too long afterwards, high quality cattle and art became identifiable in consumers

minds by particular symbols and marks. Consumers would actually seek out certain

marks because they had associated those marks in their minds with tastier beef, higher

quality pottery or furniture, sophisticated artwork, and overall better products. If the

producer differentiated their product as superior in the mind of the consumer, then

that producer's mark or brand came to represent superiority.

Today's modern concept of branding grew out of the consumer packaged goods

industry and the process of branding has come to include much, much more than just

creating a way to identify a product or company.


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Branding today is used to create emotional attachment to products and companies.

Branding efforts create a feeling of involvement, a sense of higher quality, and an

aura of intangible qualities that surround the brand name, mark, or symbol.

So what exactly is the definition of "brand"? Let's cover some definitions first beforewe get too far into the branding process.

What is a brand?

If you ask ten marketing professionals or brand managers to define the word "brand",

you very well may get ten different answers. Most of the answers you receive,

hopefully, will at least have some commonalities.

In my own experience and in my extensive study of brands and branding, there is one

definition of "brand" that seems to most succinctly define exactly what a brand is.

The definition of brand: A brand is an identifiable entity that makes specific

promises of value.

In its simplest form, a brand is nothing more and nothing less than the promises of

value you or your product make. These promises can be implied or explicitly stated,

but none-the-less, value of some type is promised.

Additional definitions

Brand image is defined as consumers' perceptions as reflected by the associations

they hold in their minds when they think of your brand.

BRAND AWARENESS

Brand awareness is when people recognize your brand as yours. This does not

necessarily mean they prefer your brand (brand preference), attach a high value to, or

associate any superior attributes to your brand, it just means they recognize your

brand and can identify it under different conditions.

Theres a familiar adage among sales people that says nothing happens until

something is sold. In marketing, that saying could be changed to nothing is sold

until someones aware of it.

Dozens of studies have shown strong correlations between awareness and market share,

between awareness and brand preference, between awareness and product usage, between

awareness and sales.


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Brand awareness is a marketing concept that measures consumers' knowledge of a

brand's existence. At the aggregate (brand) level, it refers to the proportion of

consumers who know of the brand. Brand awareness can be measured by showing a

consumer the brand and asking whether or not they knew of it beforehand. However,

in common market research practice a variety of recognition and recall measures of

brand awareness are employed all of which test the brand name's association to a

product category cue, this came about because most market research in the 20th

Century was conducted by post or telephone, actually showing the brand to

consumers usually required more expensive face-to-face interviews (until web-based

interviews became possible). This has led many textbooks to conceptualise brand

awareness simply as its measures, that is, knowledge that the brand is a member of a

particular product category, e.g. soft-drinks. Examples of such measures include:

Brand recognition - Either the brand name or both the brand name and category name

are presented to respondents.

Brand recall - the product category name is given to respondents who are asked to

recall as many brands as possible that are members of the category.

Top of mind brand awareness - as above, but only the first brand recalled is recorded

(also known as spontaneous brand recall).

Brand awareness consists of both brand recognition, which is the ability of

consumers to confirm that they have previously been exposed to your brand, and

brand recall, which reflects the ability of consumers to name your brand when given

the product category, category need, or some other similar cue.

Aided awareness occurs when you show or read a list of brands and the person

expresses familiarity with your brand only after they hear or see it.

Top-of-mind awareness occurs when you ask a person to name brands within a

product category and your brand pops up first on the list.

Brand awareness is a marketing concept that measures consumers' knowledge of a

brand's existence. At the aggregate (brand) level, it refers to the proportion of

consumers who know of the brand.


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events to the brand, such as a wide product recall or continued negative press

attention (Blackwater or Halliburton, for example).

Colloquially, the term "negative brand equity" may be used to describe a product or

service where a brand has a negligible effect on a product level when compared to ano-name or private label product. The brand-related negative intangible assets are

called brand liability, compared with brand equity

Family branding vs. individual branding strategies

The greater a company's brand equity, the greater the probability that the company

will use a family branding strategy rather than an individual branding strategy. This is

because family branding allows them to leverage the equity accumulated in the core

brand. Aspects of brand equity includes: brand loyalty, awareness, association, and

perception of quality.

Brand awareness can be measured by showing a consumer the brand and asking

whether or not they knew of it beforehand. However, in common market research

practice a variety of recognition and recall measures of brand awareness are employed

all of which test the brand name's association to a product category cue, this came

about because most market research in the 20th Century was conducted by post or

telephone, actually showing the brand to consumers usually required more expensive

face-to-face interviews (until web-based interviews became possible). This has led

many textbooks to conceptualise brand awareness simply as its measures, that is,

knowledge that the brand is a member of a particular product category, e.g. soft-

drinks. Examples of such measures include:

Brand recognition - Either the brand name or both the brand name and

category name are presented to respondents.

Brand recall - the product category name is given to respondents who are

asked to recall as many brands as possible that are members of the category.

Top of mind awareness - as above, but only the first brand recalled is recorded

(also known as spontaneous brand recall).

Research on metrics

There has been discussion in industry and practice about the meaning and value of

various brand awareness metrics. Recently, an empirical study appeared to put this


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Image and identity studies

Brand awareness/preference studies

2. Qualitative tools:

Focus groups

Measures of brand value

Net present value of future profits of the brand

3. Indicators:

Home page visits

Search engine referrals

Editorial mentions

Trade show traffic

Importance/Relevance of the Market Research

The importance of this market research would be, that it will help us to determine

which Car Brands enjoy different benefits due to their Brand Awareness in the mind

of the consumers. Our research work will help us define how does brand awareness

helps the customer to pick or choose that specific brand and get a clear picture as in is

Brand Awareness really important part of the marketing strategy or is it just a burden

on the marketing system.

Brand awareness is an important way of promoting commodity-related products. This

is because for these products, there are very few factors that differentiate one product

from its competitors. Therefore, the product that maintains the highest brand


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awareness compared to its competitors will usually get the most sales, our research

findings will help us in determining those factors.

Brand awareness is not everything

Brand awareness is vitally important for all brands but high brand awareness withoutan understanding of what sets you apart from the competition does you virtually no

good. Many marketers experience confusion on this point.

Strategic awareness occurs when not only does the person recognize your brand, but

they also understand the distinctive qualities that make it better than the competition.

Strategic awareness occurs when you have differentiated your brand in the mind of

your market. This distinction as to why your brand is unique in your category is also

referred to as your Unique Selling Proposition or USP. Your USP tells your target

market what you do and stand for that is different from all of your competitors.

Brand preference occurs when consumers prefer your brand over competing brands.

Brand preference might be considered "the holy grail" of branding because it is the

result of consumers knowing your brand, understanding what is unique about your

brand, connecting emotionally with your brand, making a decision that your brand is

superior to others for some reason or combination of reasons, and choosing it over

competing brands.

Establishing a brand

I've heard very strong arguments that public relations is the way a strong brand is

truly established and advertising is how the brand is maintained. In fact, recently,

authors Al and Laura Ries devoted an entire book, The Fall of Advertising & The

Rise of PR, to reinforce and illustrate this idea (Harper, 2002).

If you think about this theory for a moment, it makes a lot of sense.

If a brand is successful in making a connection with people and communicating its

distinct advantage, people will want to tell others about it and word-of-mouth

advertising will develop naturallynot to mention writers in the press will want to

write about the brand. Once that type of differentiation is established in the market's

mind, advertising can help maintain and shape the brand.

What you need to do in branding is to communicate what the brand distinctively

stands for using as few words or images as possible.


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So remember, branding is all about creating singular distinction, strategic awareness,

and differentiation in the mind of the target market--not just awareness. When you

have been successful, you will start building equity for your brand.

Points of Parity

My discussion of strategic awareness, points of singular distinction, and brand equity

would not be complete without discussion of brand points of parity.

Points of parity are those associations that are often shared by competing brands.

Consumers view these associations as being necessary to be considered a legitimate

product offering within a given category.

In other words, if you create what you consider to be a wonderful point of

differentiation and position, they might not be enough if consumers do not view your

product or service as measuring up on minimum product expectations. Points of

parity are necessary for your brand but are not sufficient conditions for brand choice.

As an example, I might produce a wonderful new automobile that uses advanced

global positioning and sensor technologies that render a driver obsolete by

automatically routing the car, adjusting speed for traffic conditions, recognizing and

complying with all traffic laws, and delivering passengers and cargo to the proper

destination without the need for operator intervention. Alas, Ive invented the first car

with functional auto-pilot. What a strong position and unique selling proposition!

However, unless I have fully consider my brands points of parity with other products

in the category, I probably will not meet with success.

Consumers might expect that at minimum my automobile have four wheels with

rubber, inflatable tires, be street legal, run on a widely-available fuel source, be able

to operate during both night and day in most weather conditions, seat at least twopeople comfortably with luggage, be able to operate on existing roads and highways,

and provide a fair level of personal safely to occupants. If my automobile does not

possess these points of parity with competing brands, then it might be too different

and might not be seen as a viable choice or a strong brand.

The lesson here is that differentiation and singular distinction are necessary for strong

brands, but they do not solely make for a strong brand. Your brand must also measure

up well against the competition on expected criteria so as to neutralize thoseattributes.


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Brand Management

If a brand is not effectively managed then a perception can be created in the mind of

your market that you do not necessarily desire. Branding is all about perception.

Wouldn't it be nice to have people perceive you the way you would like them to

perceive you? That is what branding and brand management are all about.

Brand management recognizes that your market's perceptions may be different from

what you desire while it attempts to shape those perceptions and adjust the branding

strategy to ensure the market's perceptions are exactly what you intend.

So you may now have a better understanding of what a brand is and why awareness

about your brand does not necessarily mean your brand enjoys high brand equity in

the marketplace. You might even understand that brand management is all about

shaping and managing perceptions. You may still be asking yourself, however, why

you should care about branding in the first place.

The benefits of a strong brand

Here are just a few benefits you will enjoy when you create a strong brand:

A strong brand influences the buying decision and shapes the ownership

experience.

Branding creates trust and an emotional attachment to your product or

company. This attachment then causes your market to make decisions based,

at least in part, upon emotion-- not necessarily just for logical or intellectual

reasons.

A strong brand can command a premium price and maximize the number of

units that can be sold at that premium.

Branding helps make purchasing decisions easier. In this way, branding

delivers a very important benefit. In a commodity market where features and

benefits are virtually indistinguishable, a strong brand will help your

customers trust you and create a set of expectations about your products

without even knowing the specifics of product features.

Branding will help you "fence off" your customers from the competition and

protect your market share while building mind share. Once you have mind


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share, you customers will automatically think of you first when they think of

your product category.

A strong brand can make actual product features virtually insignificant. A

solid branding strategy communicates a strong, consistent message about the

value of your company. A strong brand helps you sell value and the

intangibles that surround your products.

A strong brand signals that you want to build customer loyalty, not just sell

product. A strong branding campaign will also signal that you are serious

about marketing and that you intend to be around for a while. A brand

impresses your firm's identity upon potential customers, not necessarily to

capture an immediate sale but rather to build a lasting impression of you and

your products.

Branding builds name recognition for your company or product.

A brand will help you articulate your company's values and explain why you

are competing in your market.

Stability of responses

While brand awareness scores tend to be quite stable at aggregate (level) level,individual consumers show considerable propensity to change their responses to recall

based brand awareness measures. For top of mind recall measures, consumers give the

same answer in two interviews typically only 50% the time. Similar low levels of

consistency in response have been recorded for other cues to elicit brand name

responses

Brands are intangible and conditional assets that are dependent on tangible assets to

deliver the full value of their benefits. Of course partial value may be realized withoutmaterial assets through licensing. Brand Equity on the other hand, as defined by

Marketing Science, is the set of associations and behavior on the part of a brands

customers, channel members and parent corporation that permits the brand to earn

greater volume or greater margins than it could without the brand name'.

Broadly speaking, Brand Equity is the intrinsic value customers attribute to a brand,

beyond its fair market value. This metric can be calculated in several ways, especially

between the disciplines of Marketing and Finance. In Finance, this metric is an


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intangible portion of Firm value that is typically valued during times of

acquisitions/divestitures. For publicly traded firms, financial Brand Equity can be

measured as the difference between Market Value of the firm (total outstanding share

multiplied by share price). On the other hand Marketing Brand Equity is measured as

a weighted function of several constructs:

Brand Awareness: Brand Awareness can be measured by customer ability to recall

brand related features or advertising, either aided or unaided.

Brand Resilience: This is the Brands ability to resist new competitors in the category

by defending market share against market entrants.

Brand Premium: Brand Premium is the extent to which customers will pay a premium

for your product when compared to similar competing products. This can be negative

if the product needs to be offered at a discount to competitors to induce purchase.

Brand Leverage: One dimension of Brand Equity is the trust customers put in the

Brand by their willingness to try new products or line extensions under the brand

name. Extensive usage of Brand Leverage could result in Brand Dilution, especially if

the new products or line extensions fall below customer expectations.


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Market Leverage: Market leverage of a brand is its ability to gain market access via

distribution channels.

Brand Equity can be considered as a weighted average of each of these metrics.

Weights for each Brand Equity can be derived from expert judgment or by

quantitative methods, for example by regressing long-term market-share time-series

(approximated by moving average estimates) against time-series of each of these

metrics collected from a sufficiently large and random sample of respondents.

Brand Valuation Brand value is as important an aspect of a firm's value as the value

of it's tangible assets and cash-flows. Brand value has several different dimensions

and components. Brand Assets are indirect drivers of brand value because they helpmaintain the brand's competitive position, premium and consumer perception, which

in turn help the brand drive excess cash-flow over and above what the tangible assets

and services of the firm would be expected to generate.

Consumer-based Brand Valuation Models These models rely on consumer

perception to assess quantify different attitudes and behavior that ultimately result in

financial benefit to the brand. These methods do not necessarily quantify the financial

impact of the brand's equity. Another potential drawback is that these methods on

survey data to quantify consumer perceptions and there may be a gap between stated

vs. actual attitudes.


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1. Define the vision.

Before moving ahead with the web site, create a brand positioning statement. This

isnt just, What kind of web site do we want to be? This is Who are we? says

Harley Manning, vice president at Forrester Research in Cambridge, Mass., atechnology and market research firm that advises on the effects technology has on

consumers and businesses. Good brand statements typically include the companys

mission, vision and values. Its succinct. Its typically something that will fit on a

page easily, he says.

2. Build a brand worth believing in.

Do you so believe in what youre creating that you would trademark it? says

Andrea Fitch, president and CEO of RedCarpet Creations, Inc., and national president

of the Society for Marketing Professional Services, both based out of Alexandria, Va.

Really consider what kind of brand could represent the business through the next

decade. Dont have a logo that in five years youre going to be tired of and discard

for another, she says.

3. Remember, the web site is the brand.

A web site is not just a communication medium, Manning says. It is actually a

channel that must deliver on the promise. Essentially, a web site should embody the

promise that it makes to customers. If, for instance, a business claims to be

innovative, the web site should look fresh and modern.

4. Create a cohesive experience between all mediums.

Before she launched her companys new web site, Fitch made sure it would be an

event that her potential clients would never forget. RedCarpet Creations mailed 4,000

silver tubes containing scrolls that looked like rolled-up carpet. Inside the scrolls wasan announcement about the web sites launch. Once online, the web site was an

extension of the invitations because it followed through on the themes of red carpet

imagery and references to visitors being treated like a VIP. Customers should easily

be able to recognize the companys brand, whether it is print, online or some other

form of media, Manning says.

5. Dont sacrifice creativity.


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Once the brands guidelines are established, creative choices must bring those

attributes to life, Manning says. Dont let the companys brand become so dominating

that there is no room for new thoughts and ideas. Brand should be the jumping-off

point for interesting ideas, not the place where every new idea dead-ends. Fitch

stresses that a sense of fun and whimsy will only enhance the likelihood that people

will take an interest in the web site.

6. Dont communicate brand at the expense of delivering.

While a web site can be a significant tool for building brand awareness, clarity and

functionality are paramount. Just be careful not to let the communication about your

brand get in the way of delivering your message, Manning says. People should be

able to understand how to navigate the site without knowing a thing about the

companys catch phrases. You cant frustrate and annoy people into liking your

brand, he says.

7. Listen to the customers: They determine a brands true value.

Pay attention to customer feedback about the site because, ultimately, its the

customers opinion that counts. When it comes to building a brand, a company can

incorporate everything from signature colors to catch phrases, but at the end of the

day, its the consumer who decides what a brand is really worth. Its not what you

say [about] yourself, its what others say of you, Fitch says.

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