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BRAND MANAGEMENTBrand Building Models: Levitt Model & David Aaker Model

Submitted To: Prof. Ramashastry

Submitted By:

Arvind Bhardwaj 09

Avinash Vijra 11

Neha Dave 25

Rajneesh Sharma 38

Purti Sharma 41

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Levitts Model Of Brand Building

Levitts Model helps in building the brand from a commodity. This is done at four levels:

1.

Core Product Level2. Basic Product Level3. Augmented Product Level4. Potential Product Level

The purpose of all the four levels is to differentiate the companys offer from its

competitors. The core product level is nothing but the benefit that customer expects from

the brand. Then at the basic level, the product is differentiated from its rivals at a

demonstrable level through the usage of marketing mix, i.e. 4 Ps. At the 3rd

Level further

augmentation is done by providing additional services with the product. At last in the fourth

level, a superior difference is created when the brand is able to delight its customers and in

turn the customers praise the brand with favorable attributes.

Once the differentiation is done, it needs to be communicated to the target segment

through promotional mix in a persuasive way. This is where the Driving Wheelcomes into

the picture. This wheel becomes the essential part of the brand building process.

WHEEL OF EXPERIENCE USAGE MODEL

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Examples given are:

1. LG Laptops2. Hero Honda Bikes3. Dell Laptops

LG LAPTOPS

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG

Electronics, South Korea. In India for a decade now, LG is the market leader in consumer

durables and recognised as a leading technology innovator in the information

technology and mobile communications business. LG is the acknowledged trendsetter

for the consumer durable industry in India with the fastest ever nationwide reach, latest

global technology and product innovation.

The trend of beating industry norms started with the fastest ever-nationwide launch by

LG in a period of 4 and 1/2 months with the commencement of operations in May 1997.

LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998,

with an investment of Rs 500 Crores. This facility manufactured Colour Televisions,

Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG

also commenced the home production for its eco-friendly Refrigerators and established

its assembly line for its PC Monitors at its Greater Noida manufacturing unit.The

beginning of 2003 saw the roll out of the first locally manufactured Direct Cool

Refrigerator from the plant at Greater Noida. In 2004, LGEIL also up its secondGreenfield manufacturing unit in Pune, Maharashtra that commences operations in

October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones,

Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors.

Both the Indian manufacturing units has been designed with the latest technologies at

par with international standards at South Korea and are one of the most Eco-friendly

units amongst all LG manufacturing plants in the world. LG has been able to craft out in

ten years, a premium brand positioning in the Indian market and is today the most

preferred brand in the segment.

LG Notebook Computers: Stylish, advanced and highly portable

Computer usage has grown tremendously over the last few years. From being a rare

item used by a few households, computer products are found everywhere these days.

To cater to the ever increasing demand, technological advancements have enhanced the

features of basic computer products. Desktop computers have become a history. The

latest computer product in use is the notebook computer.

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With the market flooded with innumerable brands of notebook computers, it is natural

to get confused. If you are looking for a reliable company that provides computer

products, trust LG. LG provides a wide range of latest computer products, such as LG

notebook computer, Desktop computer and LG monitors. Made with the latest Intel

Centrino Processor technology, LG notebook computers have highly advanced featuressuch as ultra thin LCD screen, enhanced multi media features, hexa band antenna, high

resolution digital camera,(1.3 Megapixel), Dolby Home Theater, 10W (5W X 2) stereo

speakers, energy saving processor, powerful graphics and lot more.

There are various models of LG notebook computers to choose from. To take one

example, model R:200-ECP37A2 is India's first notebook computer with 2.5inch external

LCD screen. Made with Carbon Nanotube technology, this notebook computer is perfect

for those who want instant access to e-mails, photographs or music without booting.

Superb sound and powerful graphics make it a great entertainer. You can also opt for LG

desktop computers. They have Intel Core 2 Duo processor, card reader, X-protect

software and various other utility features. LG desktop computers offer 3 year warranty

as well.

Core Features Of LG :

80GB Hard Disc

Intel Atom Processor

Basic Features Of LG :

Cost Rs.27000

DVD Writer

160GB Hard Disk

Augmented Features:

It has exchange offers.

Its service is very good. It has skilled mechanics.

Its easy to maintain.

It has so many consultancies all over the country. And easy to available.

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Potential Features:

It is very safe and secured Laptop.

It has so many models and its available in reasonable rates. It is cost efficient.

It provides One Year Warranty. It makes life good.

PROMOTIONS and Communication:

By Retailers

By Brands

By News

HERO HONDA BIKES

Hero Hondas rise to the top in India

This case study details the entrepreneurial success story of Hero Honda, driven largely by

the attractiveness of the market in macro terms. Hero Honda is a joint venture between an

Indian bicycle manufacturer and a global leader in small-engine technology. This venture

reaped the benefits of an enormous Indian population in need of affordable transportation,

one having still modest but growing buyer power.

In 1983, Hero Cycles of India signed an agreement with Honda Motor Corporation, forming

Hero Honda. This agreement, between an Indian firm that got its start making bicycle parts,

and the worlds largest motorcycle manufacturer, marked Hondas entrance into the Indian

market for motorized two-wheeled transportation. While the country was already crowded

with competitors such as Suzuki, Yamaha, LML and Kinetic, Hondas executives and Heros

founder and CEO, Brijmohan Lall Munjal, saw significant potential in the Indian twowheeled

market.

Why was the market attractive?

At first glance, the Indian market was attractive because of its sheer size and significant

growth. India boasted a population of approximately 725 million in 1983, growing at a rate

of 2.2 per cent per year. At that rate of growth, the Indian population was expected to grow

by 163 million people in the 1980s and to surpass 1 billion people by 2000. Not only was the

total population of India enormous, but Munjal also knew that the adult age group most

likely to purchase two-wheelers (1565-year-olds) was expected to grow to over 500 million

by 1990 and to an estimated 695 million by 2005. But why would one want to pursue a

market where 35 per cent of the population was impoverished? Mitigating this fact wasgrowth in the purchasing power of the Indian population, expected to grow per capita by

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5.2 per cent between 1983 and 1993. Furthermore, even in the early 1980s, the country was

wealthy enough to support an infrastructure of 1.4 million kilometres of highway. In total,

Munjal saw that a large population coupled with a substandard economic situation was an

ideal environment for inexpensive, motorized, two-wheeled scooters.

Honda also saw the potential. With air pollution from industry and vehicle emissions

topping Indias environmental concerns, emissions regulations had become increasingly

stringent. These regulations made environmentally friendly vehicles more attractive, and

two-wheelers with their fuel efficiency and low emissions fit the bill. Honda also recognized

that Asian countries such as India and China, with their huge populations and relatively low

levels of economic development, were likely to embrace two wheeled vehicles as a popular

means of transport.

How did Honda enter the market?

Rather than enter the Indian two-wheeled market alone, Honda opted to join hands with

the established bicycle manufacturer Hero Cycles, a company with proven manufacturing,

distribution and management practices. Founded by Brijmohan Lall Munjal and his brothers

in 1945, Hero Cycles was an ideal partner for Honda. In business for nearly 40 years, Hero

had manufactured and distributed bicycle parts and bicycles in India for as long as Honda

had produced motorcycles. And, with strong distribution channels and well-honed supplier

management, the Hero Cycles name was as reputable in India as was Hondas in Japan.

But Hero Cycles was no ordinary partner. The Munjal familys management practices had led

to exceptional results, low employee turnover, and never a day of strike in 40 years. The

company used modern manufacturing concepts such as just-in-time supply chain

management, multi-tasking assembly line workers, and stringent quality assurance

programmes. Most importantly, Heros management brought an intimate familiarity with

the Indian economy, government, business culture and people. What drew Honda to Hero

was the philosophy and value of the group. Its good m anagement and customer-oriented

thinking, said Hondas Kazumi Yanagida, one of two Honda directors on the Hero Honda

board.

Macro-trends steer Indias two-wheeled market

In the 1980s, the geared scooter with a four-stroke engine was Hero Hondas most popular

two-wheeled vehicle, providing inexpensive and reliable transportation to Indias largely

rural population and growing middle class. Hero Honda had seen something that all the

motorcycle manufacturers had missed. The biggest chunk of demand was to come from

villages, small towns and the middle-class office-goers in cities for whom the fuel economy

of a four-stroke engine was a bigger draw than the looks and the power of two-stroke bikes.

As Brijmohan Lall Munjal remarked, Looking into the rear view mirror today, the choice of a

four-stroke bike in the 1980s may sound providential, but we knew that buying a product is

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one thing and running it for a long time is quite another. That is why we wanted the running

cost of our vehicle to be low.

The advantages of four-stroke engines were threefold. Not only did they produce less

pollution than a two-stroke engine (commonly used in other motorcycles) but they were

also more fuel-efficient and ran for longer than the more powerful two-stroke engine. Fuel

efficiency and product longevity translated directly into money saved. Saving money

appealed strongly to Indias middle-class consumer. Hero Honda had the first and for many

years only four-stroke vehicle. As its early ads said, Fill it, shut it, forget it. Yet demand for

these scooters would last less than a decade. The growing purchasing power of Indias

expanding middle class would soon change what they wanted in two-wheeled

transportation.

In 1988, to understand its market better, Hero Honda conducted a massive customer

survey, collecting some 25,000 responses. The survey told Hero Honda a surprising story.

Indias consumers had changed their minds. Scooters were no longer the vehicles of choice.

Motorcycles were to become the two-wheel vehicles of the 1990s. Atul Sobti, Senior Vice

President of Marketing and Sales for Hero Honda said, Its thanks to that survey that today

we sell over a million motorcycles in a year.

By making efforts to gauge and understand its market and the trends therein, Hero Honda

cemented its reputation as a market-driven company, one that anticipated and acted upon

these trends. As Brijmohan Lall Munjal said, The excellent results achieved by Hero Honda

can be attributed to our continued focus on understanding and satisfying customer needs tothe finest detail. We are committed to maximizing value to all our stakeholders, by

delivering value for money products with the best in technology and service, to our

customers, consistently, wherever they are.

In response to its customers desires, Hero Honda introduced other customer-friendly

innovations to the Indian two-wheeled market, extending motorcycle warranties from six

months to two years, and developing a Passport Scheme that included accident insurance

and reward points for purchases and service.

Dell Inspiron Laptops

Core features

Core products or flagship products are a company's products which are most directly related

to their core competencies. These products are then integrated into a variety of end

products, either by the company holding the core product or by a second company to which

the core product is sold to, and the end products are sold to users.

Core products are central to the company's survival and make the most money that sustain

the business. Core products are also usually the first products that the company created and

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sustained itself from its founding like Windows OS for Microsoft, Macintosh for Apple Inc.,

Google search for Google, etc. Therefore there is emphasis placed on the profitability of

core products while working on other products hoping that they will become a competency

for the company. The products that make the most profit are usually the core products.

Other products that are not considered core products are called side projects, side productsand experimental products, etc.

Dell's Inspiron computer product line started as a range of laptop computers targeted at the

entry-level, budget, and mainstream consumer market, with some earlier models targeted

at the high-end consumer market. The first Inspiron laptop, the Inspiron 7000 was released

in 1998, used a Mobile Celeron or Mobile Pentium II processor with SDRAM, and had a high

starting price of $2,799. As of June 26, 2007 the Inspiron name also refers to a range of

Dell's entry-level desktop systems which replaced the Dimension line of desktop PCs. As of

2008, the Inspiron line is mainly a budget line.

Basic features

A laptop is a personal computer designed for mobile use and small and light enough to sit

on a person's lap while in use.[1]

A laptop integrates most of the typical components of a

desktop computer, including a display, a keyboard, a pointing device (a touchpad, also

known as a trackpad, and/or a pointing stick), speakers, and often including a battery, into a

single small and light unit. The rechargeable battery (if present) is charged from an AC

adapter and typically stores enough energy to run the laptop for two to three hours in its

initial state, depending on the configuration and power management of the computer.

Laptops are usually shaped like a large notebook with thicknesses between 0.71.5 inches

(1838 mm) and dimensions ranging from 10x8 inches (27x22cm, 13" display) to 15x11

inches (39x28cm, 17" display) and up. Modern laptops weigh 3 to 12 pounds (1.4 to 5.4 kg);

older laptops were usually heavier. Most laptops are designed in the flip form factor to

protect the screen and the keyboard when closed. Modern tablet laptops have a complex

joint between the keyboard housing and the display, permitting the display panel to swivel

and then lie flat on the keyboard housing. They usually have a touchscreen display and some

include handwriting recognition or graphics drawing capability.

Laptops were originally considered to be "a small niche market" and were thought suitable

mostly for "specialized field applications" such as "the military, the Internal Revenue

Service, accountants and sales representatives". But today, there are already more laptops

than desktops in businesses, and laptops are becoming obligatory for student use and more

popular for general use. In 2008 more laptops than desktops were sold in the US and it has

been predicted[who?] that the same milestone will be reached in the worldwide market as

soon as late 2009

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Augmented features

Dell is a laptop brand from Dell, targeted for business use. This means that standardized

parts are used throughout the line and are available for several years for support purposes.

By contrast, the Dell Inspiron is aimed at the consumer market and its specifications change

regularly. Whereas Inspiron may change vendors on components several times over the

course of a single model, the Latitude line generally retains identical components

throughout its production. This design is intended to simplify maintenance and support

tasks for large corporations, allowing components to be easily swapped between models.

Dell Latitude computers are also built to Dell's RoadReady specification which includes a

durable magnesium-alloy casing, internal metal frames and Strike Zone shock protection in

case the computer is dropped or suffers a severe impact. Many models also feature free-fall

sensors or solid-state drives. Latitude models are also generally considered more durable

and higher quality than the Inspiron line, and even above the premium Studio and XPS

models. Latitude models have 3 year US-based support, as opposed to the 1 year warranty

on other models. But, this results in a price premium in the hundreds of dollars compared to

the consumer models.

Latitude computers are also differentiated in their feature sets, due to their business focus.

For example, they often include security features such as smartcard and contactless

smartcard, and TPM security, which are not needed by most consumers. A lid clasp (as

opposed to a magnetic latching system), DisplayPort video out (as opposed to HDMI), and

support for legacy standards are all results of the requirements of the business market.

Potential product

Evaluating the potential of a product or service is tricky business. What makes one product

stand out from another in the market? While there are many qualities that make a good

product, there is one thing that separates the stars from the wanna-bes The product must

speak for itself. If a product can quickly and easily demonstrate to a potential customer why

the customer has to buy now, thats a winner.

#1 What Problem Does the Product Solve?

This is the first question to consider because without a problem theres nothing that will sell

any product. People act to avoid pain or seek pleasure. A product must easily show

prospective customers that their lives will be better, substantially better, simply because

they bought it. Just a word of caution here the problem must be compelling. People have

to feel like the problem is huge, overwhelming, and that this product is the only way to

solve it. They need to know that without it, their lives will be miserable. This is the USP

(unique selling position) and it is essential to know this before taking any other steps.

http://en.wikipedia.org/wiki/Laptophttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Dell_Inspironhttp://en.wikipedia.org/wiki/Solid-state_drivehttp://en.wikipedia.org/wiki/Solid-state_drivehttp://en.wikipedia.org/wiki/Dell_Inspironhttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Laptop

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#2 Can the Product Give Instant Gratification?

The world is fast-paced. Waiting isnt an option. TV dinners, the microwave, and drive-thru

restaurants are evidence of this reality. To be a success a product must promise instant

results. Back it by a money-back guarantee and it has real potential.

#3 Is the Product Demonstrable?

It solves a problem instantly. Thats great. But the reality is that a picture is worth a

thousand words. People believe what they see. Show folks what the product does in a

compelling, dramatic way, so they want to buy.

Communicating to Customers

Dell today announced an industry-leading standard for ethical, accurate and transparent

communication through weblogs, chat rooms, discussion forums and other online channels

Dells online communications www.dell.com/blogpolicy comprises the recognized industry

standard for online marketing and communications established by the Word of Mouth

Marketing Association (WOMMA). The policy prescribes:

Transparency of origin -- Dell requires that employees and other company representatives

disclose their employment or association with Dell in all communications and provide

contact information on request.

Accuracy -- Dell employees and other company representatives may not knowinglycommunicate information that is untrue or deceptive. Anecdotes and opinions must be

identified as such.

Ethical Conduct -- Dell employees and other company representatives may not conduct

activities that are illegal or contrary to Dells Corporate Code of Conduct, Privacy Policy or

related policies.

Protection of Information -- Communications must maintain the confidentiality of Dell

company confidential information. This includes company data, customer data, partner and

supplier data, personal employee data, and other information not generally available to the

public.

Enforcement and Discipline Dell is committed to taking corrective action if Dell

employees fail to comply with the policy.

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DAVID AAKERs MODEL OF BRAND BUILDING

David Aaker in his model of ad exposure, explains influence of advertising oncustomers attitude and purchase behaviour.

So, he suggested two routes of brand building through ad exposure.(i)Route 1 : Ad ExposureAttitude FormationPurchase Action

(ii)Route 2 : Ad ExposurePurchase Action Attitude Formation

This can explained through this diagram:

Ad Exposure Attitude

Awareness / Familiarity

Information regarding F/A benefit

Formation of Image personality

about brand

Feelings associated with brand

Formation of Linkages with experts

/ Peers and group norms.

Healthy incentives promotion to excite

customers into buying product

Purchase

Behavior

R2 R2

R2

R2

R1

R1

R1

R1

R1

DAVID AAKERs Model of Brand Building

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Example of TITAN in this model

Titan Industries is the world's fifth largest and India's leading manufacturer ofwatches. It has several popular brands in its fold including Heritage, Aviator, Regalia,

Octane and WWF

The Titan portfolio has over 60% share in the domestic market Share in the organized watch market. To ensure a dominant presence in the market,

the company has showrooms in every nook and corner of the country that caters to

the needs of every segment of the people.

Styling was basic - This was a constraint imposed by the technology as well the outlook of

the manufacturers. Titan decided to make style a table-stake. Choice was limited - You had

200 models to pick from, that was it. Titan decided to inundate consumers with a widechoice in style, functions and price. The initial range was 350 models.

Shops were dark, dingy and uninteresting - There was no importance given to presentation,

and therefore no attempt made at it. Titan brought in the concept of retailing into the

watch market, established a network of fine showrooms which would later become the

world's largest network of exclusive watch stores. These stores not only helped Titan to gain

leadership substantially, but also irrevocably altered the retail landscape of the watch

market through a demonstration effect on the traditional dealers. Advertising was

expenditure - Titan saw this as a vital investment. Right from Day 1, Titan investedsignificantly in advertising and in that process created a set of memorable and effective

properties over the years.

So Titan, backed by world-class quality created at a world-class plant located just off

Bangalore, backed by the Tata name, was launched into the Indian market on the back of

these new rules. It created waves right in the early days, mesmerized consumers,

demolished competition and rode into the sunset with panache.

Today, in early 21st century India, it is taken for granted that a watch is a fashion accessory.

Titan dominates the market, with a 60% share of the organised sector market (the total

market, including the unorganised sector, is estimated at around 42 million units). Titan's

quality record is impressive, its sales and service network is wide and deep, and its network

of exclusive showrooms, The World of Titan, is one of the most prestigious and visible retail

brands in the country, offering world-class levels of shopping comfort and customer service.

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Product:

Titan for the premium segment Fastrack focused on the youth and trendy fashion space, Sonata for the mass market Xylys for the premium market. The Titan brand architecture comprises several sub-brands, each of which is a leader

in its segment. Notable among them are:

Titan Edge The world's slimmest watch which stands for the philosophy of "less ismore"

Titan Raga the feminine and sensuous accessory for today's woman Nebula - crafted in solid gold and precious stones and Several other collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva,

Zoop, WWF and the Aviator series, all of which form a part of the Titan wardrobe.

TITAN uses both the routes, i.e. Route1 and Route 2 both.

Route 1:

Ad Exposure through creation of awareness and image of its brand in the minds of

customers. Titan uses the strategy of associating the brand with the celebrities like Aamir

Khan , who is the brand ambassador for the TITAN Watches. Also associating TITAN Raga

with well known actress Rani Mukherjee and SONATA with Mahinder Singh Dhoni. This ishow TITAN strives hard to not only get into the minds of customer but also the hearts of the

customer. Then there is an attitude formation towards the brand and by peer pressure too,

the brand tries to increase its revenue. Lots of advertisement and brand recalling is done in

this route in order to make an emotional relationship with the buyer. This route has a long

term effect on the consumer unlike route 2.

Route 2:

Here, TITAN uses ad exposure to attract the customer first and then form his attitude

towards the brand. TITAN uses various discount offers and varied brand recall methods to

increase its sales for a short period. They also have certain exchange offers on Fastrack

watches.

Promotion Strategies and Communicating to Customers:

Communication: tagline TV commercial Billboards

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Brand ambassador: Aamir suits the best Increase penetration in Tier-III cities Titan should introduce a new brand in Niche market Retaining existing customers :Increasing the service centrePromotion & MEDIA:

1. Advertising2. Sales promotion3. Public relation Advertising media: Television Print Internet Titan brand ambassador: Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Rahul BoseTitan tagline: Be more

Fast track tagline: How many you have?

Public relation

Gift concept Promotion On OccasionsSales promotion

Sponsorship Seasonality Promotion through Contest

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Webliography

www.titanworld.com

www.wikipedia.com

www.herohonda.com

Bibliography

Marketing Management: Author Mr. Philip Kotler