building strong brands agenda for the day introduction establishing a common language building...

Building Strong Brands

Agenda for the day

Introduction

Establishing a Common language


Generating Positioning Options through group exercises

Background to the Workshop

• Changing scenario in the oil sector• HPCL to encounter a different competitive scenario post 2002-03

HPCL has to create consumer preference for its range of products and services

Need to build a Strong Brand

Essential to have a common understanding of key definitions and the branding strategy

Some ground rules

• Interact, question, learn, absorb & be constructive

• Questions or clarifications … please ask … at the time

you have the doubt

• Please limit discussions amongst yourselves - direct

questions to me!

• You will be working in teams … learn from others

Some ground rules

• Timing is tight. We all need to respect it.

• Relax, have fun, and be open minded, especially as

some of the material is new and will take you out

of your ‘zone of familiarity’.

• No phone calls please!

Warm up

• Introduce yourself– Name

– What do you do at work?

– What would you like to do instead?

Establishing a Common Language

Marketing Definitions

What is a Market ?

People who are consumers for a particular product or

service category

What is Marketing ?

The art and science of creating a

customer at a profit, by sustaining

brand preference

What is Selling ?

A transaction between a buyer and seller for the exchange of a product or service

for money in any form

Who is a Consumer ?

The consumer is the final purchaser* who actually utilises the product or service

* some exceptions

Who is a Customer ?

The buyer of the product or service

being sold by the seller

Consumer - Customer

• The consumer is always someone‘s customer• The customer need not always be a final consumer

Consumer - Customer: Different

CustomerProduct/Service Consumer

Retailer, Wholeseller, Soap Family, individuals

Distributor, AdvertiserNewspaper Reader

Car Dealer Car owner

Diagnostic Centre Doctor Patients,Doctor

Consumer - Customer: Same

Customer/ ConsumerProduct/Service

GuestHotel

PassengerAirlines

Book store Book buyer

Consumer - Customer: Examples for HP

CustomerProduct Consumer

DealerPetrol Vehicle owner

AirlinesATF

What is a Consumer Benefit

The key benefit(s) which provides the rationale for the purchase decision

Supporting Evidence - the Substantiator

Reason(s) to believe that the consumer

benefit is real

Examples

Product : ChywanprashBrand Service : Nirula’s restaurant

Upper & middle class familiesMarket Upper & middle class families in Delhi

Wholesalers, retailersCustomer

• Old people• Children

Consumer Families

• Protection against colds & coughs

Consumer benefit

• Large variety of tasty food catering to the Indian palate

• Unique recipe• Amla for Vitamin C• Other herbs

Supporting evidence

• Menu • Recipes


-Origin of branding

-Defining a brand

-Classifying types of brands and their features

-Understanding elements of brand identity and brand promise

-Introducing the Brand Positioning statement

WHAT IS A BRAND?

EXERCISE

• Tthink of an example of a brand that you …really like

• 1” to make your choice– make a note of the brand name

• Debrief– Name only

The origin of brands : A manufacturer’s perspective

• ‘BRAND’ = ‘brandr’ = To burn

• Used by early Norse people to mark livestock to declare ownership

• Later used by producers to mark their products and commodities such as jewellery, crockery, gold, bricks, pipes etc.

… even used by people to mark which tribe they belong to (i.e. : tattoos)

The origin of brands : A manufacturer’s perspective

• Consumers began to associate specific marks with differences in quality– For example, livestock with a specific mark were of higher

quality(i.e. fatter) than others … because the producer had more water and better grass than the competitors

– Thus, given a choice of livestock, consumers began to ask for livestock carrying a specific mark

This was the birth of ‘branding’as we know it today

The origin of brands : The Industrial Revolution

• In the last 100 years there has been a proliferation of products due to mass production and mass distribution

• Today, consumers have to make purchase decisions in a sea of ‘me too’ products & services

• Consumers use brands as a ‘mechanism to make purchase decisions’

Brands differentiate between similar products

The origin of brands : current situation

• Brands have moved from highlighting ‘functional’ differences to highlighting ‘functional’ and ‘non functional’ differences between competing products

• Brand names are no longer just ‘products’ but are also used for ‘services’ and even ‘corporations’

Right then,What is a brand?

• A name, symbol, design, product or a combination of these that identifies a seller's goods and services and distinguishes it from competitor's products

• A name, trademark, product or logo to which a unique set of associations have become attached

• A brand is a complex set of consistent beliefs and meanings held by its purchasers and users which are associated with the product or service but which exist over and above its obvious physical function - brands are found in people’s heads!

Alternative textbook definitions of a ‘brand’

• A bundle of functional and emotional benefits (or … a bundle of feelings, meanings & emotions)

• A name with a reputation/a product with a reputation

• A mark of pride

• A simplifier of choice

• A product(s) with an attitude• Products are 'what companies make' - brands are 'what

customers buy'

Alternative textbook definitions of a ‘brand’

• It could be a product but if the product dies or becomes obsolete, then years of investment are wasted

• Brands must be relevant and unique

• Brands must offer functional and emotional benefits to satisfy a consumers functional and emotional needs

• Brands must have functional and emotional associations which are not benefits. For example

– Nike is associated to ‘the swoosh’ - a functional association

– Lux may be associated to ‘film stars’ - an emotional association

What is a ‘Brand’?

Ultimately Brands shouldmotivate consumers to buy

What is a Brand?

A name to which a unique, relevant and motivating set of associations and benefits-

functional and emotional have become attached

What is Brand Equity?

Brand Equity is a set of brand assets and liabilities linked to a brand that add to or

subtract from the value provided by a product or service, to a firm or to the firm’s

customersDavid Aaker

What is Brand Positioning?

The target consumer’s reason to choose a brand in preference to others

• Brand positioning should be relevant, persuasive, credible and distinctive

ANY QUESTIONS ?

THE 11 TYPES OF BRANDS

• Products

• Simple Brands

• Negative Brands

• Silent Brands (or weak or commodity brands)

• Strong Brands

• Strong Niche Brands

• Strong Professional Brands

• Strong Mainstream brand

• Strong Mainstream Product Related Brands

• Strong Mainstream Idea Related Brands

• Generic Brands

THE 11 TYPES OF BRANDS1. Products What suppliers sell to customers

• Tangible products = chemical compound, watch, razor, etc

• Intangible products = bank, courier, management consultancy

• Products meet the customer’s functional needs. For example :

Watch = To tell the time

Detergent = To clean clothes

Bank = To save, transfer or borrow money


2. Simple Brand

A name with … no benefits or associations attached• A brand is “a name with …..”

• Often, people draw a total blank when given a name

• These are Simple Brands– Usually have low “awareness ratings”

Examples : Godrej no.I , Turkish Bath, Chek detergent.

THE 11 TYPES OF BRANDS3. Negative BrandsName with … negative associations • The Brand is a liability rather than an asset• Negative associations and benefits become attached when ...

– Consistently have negative experiences ... over time– evokes a “negative” response– “you feel ripped off”

• Negative brands are usually :– artificially supported – monopolies– state/government ownedExamples : Nazis, DVB, Made in Russia ,Ulhasnagar, Indian Airlines (in

the past)

THE 11 TYPES OF BRANDS4. Silent Brands (or weak or commodity brands)

A name with associations but … no reasons to buy• In brand image tests these brands will have

… low ratings or “don’t knows” on key product/image attributes ..... that drive purchase within the category

Brands Attributes that drive purchase within a category

A B C D E

Market leader 8 6 5 4 2

Follower 6 7 7 4 7

Silent brand 2 4 4 DK DK

Examples :

freekamaal.com, Nirma in 1975, jai soap


5. Strong Brands

A name …

… to which a set of unique, relevant, motivating & consistent …

… associations & reasons to buy are attached.• In research, these brands will score highly on the key functional

and emotional ‘purchase drivers’• Strong brands are ‘liked’ by most people

– likeability vs awareness

• There are two types of strong brands– Strong Niche Brands (+ professional brands)– Strong Mainstream/Mass market Brands

Types of Strong Brands

Strong Brands

Strong Strong StrongNiche Specialist MainstreamBrands Brands Brands

Product related Idea relatedBrands Brands

THE 11 TYPES OF BRANDS6. Strong Niche Brands Brands that are used by ....... a few people, very frequently, or ....... many people, infrequently• Niche brands differ from Strong Brands by either …

» low penetration, high frequency of purchase/use» high penetration with low frequency of purchase/use

ExamplesLow penetration, high usage High penetration, low

usageApple Brasso

The Body Shop Singer sewing machine

THE 11 TYPES OF BRANDS7. Strong Specialist Brands

Primarily purchased by professionals• Strong specialist brands have a high level of (prompted) awareness

by most

• However, brand purchase and use is dominated by professionals and experts

Examples:

Nikon (Cameras),

Adobe PhotoShop(Graphical software)

McKinsey & Co (Management Consultants)

THE 11 TYPES OF BRANDS8. Strong Mainstream/Mass Market Brands

Brands that are used by most of the people, most of the time

• Strong mainstream/mass market brands have high penetration and high frequency of use/purchase

• There are two types of mainstream brands– Product related :

The brand is associated to a single product or a group of related products

– Idea related

The brand is associated to a variety of non related products

THE 11 TYPES OF BRANDS9. Product Related Brands

Brand is associated to a single product or a group of related products

• Product focussed and product driven organisations - usually #1, #2, or #3 in market

• See themselves as owners of “core competencies” & tangible assets

• Product managers call the shots• Seek ‘benefits’/reasons to buy that are product specific• Often referred to as ‘Power Brands’ or ‘Mega Brands’

Examples : Coke, DHL, Intel, Nike, Microsoft ...

THE 11 TYPES OF BRANDS10. Idea Related Brands

The brand is associated to a variety of non related products

• Idea related brands = a set of values that are able to cut across non related product sectors – conglomerate branding, non product related megamergers

• See themselves as ‘owners & builders of ideas’ – especially as product differences are not perceived or sustained in the market– Focussed on owning ideas/reputations that will drive preference and sales

• Product & segment managers matrix - both have profit responsibility

• In some circles, referred to as “Icon Brands”Disney, Virgin, Armani, Madonna, Star Trek


11. Generic Brands

When most consumers use the brand name

to describe the generic product/category• Sometimes, strong product brands become too popular

• Their names become the generic term for their category/product

• These brand leaders are usually victims of their own success

Examples of Generic Brands :

Kleenex = any facial tissue

Champagne = any sparkling wine

Xerox = any photocopier

11 Types of brandsProducts What suppliers sell to customers Watches

Simple Brands A name with … no associations/benefits attached

Negative Brands A name with … negative associations Nazis

Silent/weak/brands A name with associations but … no reasons to buy (low share) Raid

Strong Brands A name with … unique, relevant & motivating associations/reasons to buyStrong Niche Brands Strong brand with … low penetration or frequency Apple Specialist Brands Purchased primarily by professionals/experts PhotoShopStrong Mainstream brands Strong brand with … high penetration & frequencyProduct Related Brands Strong mainstream brand … associated to Coke

a specific product or related productsIdea Related Brands Strong mainstream brand … associated to Disney

non related products

Generic Brands When the Brand Name becomes the generic Jeep, Coke, Xerox

THE 11 TYPES OF BRANDS - Why do we need this?

• Product Performance & Brand Strength drive ‘demand’• Brand Strength is driven by ‘type of brand’

– Strong brands vs. Weak brands– Niche brands vs Mainstream brands

Brand Strength- Type of brand

Pro

du

ctP

erfo

rman

ce Hi performance product(s)Strong brand

$$$$$$

Strong brands are constructed from a ‘product’ and a ‘big idea’

• They are associated to a product or a range of products that deliver unique, relevant and motivating functional benefits

• They are underpinned by a 'big idea' that satisfies an emotional benefit• Strong brands consistently deliver functional and emotional benefits to

the consumer more consistently than Silent (or weak) brands

Product or rangeof products

The 'Big Idea'

Emotional Benefits

Functional Benefits

Strong Brands

What is a big idea ?

• A distinctive expression or a creative device which is uniquely associated with the brand and the brand promise.

Examples • Liril - Girl in waterfall• Ujala - “Chaar boondon wala”• Air India - The Maharaja• Wills Filter - Made for each other• Bajaj -” Hamara Bajaj”• Polo - Mint with the hole• Taj Mahal Tea - Ustaad Zakir Hussain

Strong brands resolve consumer trade-offs

• Consumers have had to trade-off conflicting benefits. Examples of conflicting benefits are:– Taste and Health: Common perception is that foods that are tasty

are not healthy and foods that are healthy are not tasty– Cleaning and mildness: Common perception is that products that

clean extremely well are harsh

Strong brands resolve consumer trade-offs

• Today's successful brands resolve conflicting trade-offs for the customer. For example:

Head and Shoulders & Anti Dandruff shampoo, Remove dandruff + Soft clean hair

Levi's jeans = Durability + Fashion

Apple computer = Hi-tech + User friendly

Fab India = Well designed fabric + Low price

SAS = Personal comfort + attractive prices

• Needless to say, successful brands can also be built on single benefits

Command price premiums and/or volume share

• Strong brands manage to command significant price premiums or volume share, and ideally, successful brands can do both (Marlboro, Boeing, Nescafe, Gillette, Duracell , Windows,)

Ubiquity

• Strong brands are seen everywhere - they are ubiquitous (Coca Cola, Bata, Kodak,,Wills )

Consistent performance

• Strong brands are associated to products that are ‘perceived’ as superior by its target consumer in product trials - even if they don’t actually perform better! (IBM, American Express, Sony)

Innovation

• Strong brands constantly innovate - they always have something to say to their potential and existing consumers

• Product innovation is obvious, but strong brands also innovate on other elements of the mix such as packaging, pricing, distribution, promotions, sponsorships, etc (NIIT, MTV, Pepsi)

Aspirational users

• Strong brands are used by people that the target market aspires towards (Mercedes, Diners)

Always ahead of the target market/contemporary

• Strong brands lead their consumers rather than the other way around

• By doing so, strong brands surprise and impress consumers -Armani,Bennetton,Nokia

What are strong brands?

Strong brands are …

Constructed from ‘product’ and a ‘big idea’

Resolve consumer trade-offs

Command price premiums and/or volume share

Ubiquitous

Superior ‘perceived’ performance (in context of price)

Innovative

Aspirational users

Always ahead of the target market/contemporary

Group exercise #1

From the given list of brands identify

Step 1: Classify them into different types of brands

Step 2: Select the brands you think are strong brands

Step 3: For each of the strong brands classify them into the 11 types of brands

5’ for this exercise

Ex 1: Classify the brands into the 11 types

Dalda Rasna Spice Girls Shell

Reliance Iraq Biotique Tata

Hitler Samson Jeep Visa

Resdan Jet Airways Maggi Signal

Penthouse Heineken Post-its Prozac

Alfa Romeo IBM Lego Scotchtape

Bisleri Sardesai Disney Kellogg's

Nescafe Xerox Nirodh Nirula’s

Perrier Microsoft Windows Green Peace Star Trek








Generic Brands When the Brand Name becomes the generic Jeep, Xerox

Brand Positioning

What is positioning?

Any thoughts from the group?

How should we define brand positioning?

Brand positioning is the target consumer’s reason to buy a brand in preference to others

What are the differences between the terms?

– Brand Identity

– Brand Promise

These are the 2 elements of Brand Positioning

What is Brand Identity?

Brand Identity : Who am I? What do I do? How am I different from others?

This defines where the brand originates from, what it does and how different it is from others. In simple terms, it specifies:

What is Brand Promise?

Brand Promise: Why buy me in preference to others?

This clearly gives the key reason(s) for preferring the brand vis-avis others. In simple terms, it specifies:

Brand vocabulary - The Dirty Dozen!

• What do each of these terms mean and how do they associate together?• Brand Identity

> Heritage> Essence> Assets> Identifiers

• Brand Image> Perception

• Brand Promise– Proposition– Attributes– Values– Personality


Heritage : History of the brand (100 years old co.; oldest airline)

Essence : Historical associations and ‘reasons to buy’ the brand (Reliability,trust)

Assets : Tangible assets owned by the brand (Ingredients, certain technology etc.)

Identifiers : Graphic devices associated to the brand (Colours, logo etc.)

Brand Identity : Who am I? What do I do?Why am I different from others?


Brand Promise : Why buy me in preference to others?

• Core Proposition :Functional reasons to buy vs. others (what do you do better e.g..accessible, reliable and fast in case of a courier co.)

• Attributes :Rational reasons to buy vs. others (reasons to believe/ substantiators to believe the core proposition i.e.product features, corporate assets and other tangibles)

• Values :Emotional reasons to buy vs. others (inner& outer directed i.e. How it makes me feel ? What it says about me to others)

• Personality :The way the brand speaks and behaves


Brand Image = Brand PerceptionWhat people say about a Brand


How do all these terms link together?

• Brand Heritage : History of the brand• Brand Essence : Historical associations and ‘reasons to buy’ the brand • Brand Assets : Tangible assets owned by the brand• Brand Identifiers : Graphic devices associated to the brand

Brand Image = Brand PerceptionWhat people say about a Brand

Brand Promise : Why buy me in preference to others? • Brand Proposition : Functional reasons to buy vs. others (what do you do better) • Brand Attributes : Rational reasons to buy vs. others (reasons to believe/

substantiators)• Brand Values : Emotional reasons to buy vs. others (inner & outer directed)• Brand Personality : The way the brand speaks and behaves



Any Questions?

Example: Nirula’s

Brand Identity : Who am I? What do I do? How am I different from others?64 year old restaurant chain, pioneer in the restaurant business in DelhiAssured quality, established name

Infrastructure, Number of outlets, ReputationLogo, interiors, systems

Brand Promise : Why buy me in preference to others?

Variety of food for every family memberTaste catering to the Indian palate

Menu offering, taste catering to Indian palate, contemporary atmosphere, service

I feel I have made a wise choiceI feel I belong

Example: Dabur Chyawanprash

Brand Identity : Who am I? What do I do? How am I different from others?

• 100 yrs. Old company ; largest brand in chyawanprash • From a trustworthy company; time tested holistic ayurvedic formulation

• Recipe which is unique & 3000 years old.• Red and white/ Sadhu/ Amla

Brand Promise : Why buy me in preference to others?• Strengthen you from within and hence keeps the minor illness

away (cough and cold) • Contains Amla (Vitamin C)and 48 other herbs • Reassured; confident; care for your family.• Protector

Why develop the Brand Positioning for HP

• To understand why your target consumer should buy your brand

• To ensure everyone connected with the brand agrees on its ‘position’

• Finally, to ensure all elements of the mix especially the communication, is in consonance with the above brand positioning. Because that is the reason for purchase

• To ensure that all brand activity :– Has a common purpose– Is guided; directed and delivered by the brand’s benefits/ reasons to

buy– Is focussed at all points of contact (i.e. new products features,

communication material )

Why develop the Brand Positioning for HP

How do you develop Brand Positioning

1.Define the target market,segments and the target consumer for your brand

3.Developing alternative Positioning Concepts

2.Develop hypotheses regarding motivators and barriers wrt the brand

4. Gauge consumer response to the concepts

5. Evaluate the concepts and select based on consumer response

The Brand positioning statement

• Brand Identity & Brand Promise is expressed in a “Brand Positioning Statement”

The BPS must be written in the Consumer’s language

The Brand Positioning Statement• The BPS must be written in the consumers’ language, so that..

– It forces brand owners to understand their consumer better

(i.e. : consumer insight is essential and central to writing the BPS)– It is simple for everyone in the organisation to understand

(i.e. : particularly non-executive staff and frontline staff)

– It can be measured qualitatively and quantitatively

(i.e. : consumer language enables easier measurement in consumer research)

The Brand Positioning Statement• The Brand Positioning Statement should be written as description

(to a friend) about what is the brand and why should one buy the brand in preference to others

• Brand positioning is ‘the desired consumer response’ - IT IS NOT STIMULUS

We will now show an illustration of the Brand Positioning for Nirula’s

Nirula’s, a well established restaurant in Delhi, offers a large variety on its menu which caters to the taste of each family member. Its special Indianised recipes cater to the Indian palate.

With its friendly, contemporary atmosphere, Nirula’s ensures that you feel comfortable. Moreover, its affordable menu list makes you feel you have made a wise choice.

We will now show an illustration of the Brand Positioning for Dabur Chyawanprash

Dabur Chyawanprash available in the red and white pack, is a unique, trustworthy, time tested, ayurvedic solution for strengthening you from within.

Dabur Chyawanprash cures your colds and coughs better than others as it contains 48 natural ingredients such as Amla etc. No wonder, you are reassured and confident that you have a protector for your family’s colds and coughs.

A Sum up - The Brand Positioning Statement• Brand positioning is expressed in a “Brand Positioning Statement”

• The BPS must be written in the consumers’ language, so that..– It forces brand owners to understand their consumer better

– It is simple for everyone in the organisation to understand

– It can be measured qualitatively and quantitatively

The Brand Positioning Statement should be written as description (to a friend) about what is the brand and why should one buy the brand in preference to others

• Brand positioning is ‘the desired consumer response’ - IT IS NOT STIMULUS

What type of a brand is today ?

What should it be

…. in 1 year ?

…..in 3 years ?

Exercise 2








Generic Brands When the Brand Name becomes the generic Jeep, Coke, Xerox

Exercise 3

• In your teams, please define the Dirty Dozen • Current and Desired

Exercise 3: DIRTY DOZEN

Done by the 4 teams in the workshop

Team 1 • Heritage : 100 years of experience in servicing fuel customers, 25 years of profit making

PSU. Second largest oil major in India with vast experience across all kinds of customers• Essence : Service Provider. Wide spread network, Strategically located• Assets : Serving the nation reaching each corner of the country with experienced officers

and dealers having strong supply chain management and infrastructure like depots, terminals etc.

• Identifiers : Blue and red band, HP logo, Standard Design of building

• Proposition : To act as a complete fuel manager with everything available under one roof and provide value for money

• Attributes : Availability of literature/ knowhow like fuel saving tips etc. Trained personnel at the outlet with 24 hours availability of good quality/quantity product. Services provided : fuels, automobile requirements, household groceries, information, Banking, Communicatin

• Values : I feel delighted• Personality : Friendly, Expert, Guide and Caring

Team 2 • Heritage : 25 years old with roots going deeper than that. Experience of marketing and

professional approach. Embedded ethics, Professionalism, High Operational standards• Essence : Product of a company which knows its business very well and has been around

for a century. Wide network and availability of product (Q+Q)• Assets: own refineries and marketing network with R&D facilities. Wide range of products

and strong distribution network. Dedicated loyal and professional manpower• Identity : LOGO with strong colors and high visibility. Logo depicts to customers what it is

meant for. Highly established corporate color.

• Proposition : Meets all the energy needs of the consumer at all times everywhere (through technologically superior products)

• Attributes : with our own supply sources, highly evolved network using state of the art technology

• Emotional : Feel happy• Personality : Strong He Man, caring for needs. Should indicate range of services. Man full

of energy, friendly with customer, providing anything and everything customer needs

Team 3 • Heritage : Meeting country demand of petroleum products for over half a century• Essence : Assured quality product and uninterrupted supply for 50 years• Assets : Large supply of distribution network across the country, two own refineries and

one joint venture refinery• Identifiers : Excellent HP logo with attractive & soothing color schemes

• Proposition : Large network of strategically located retail outlets with modern consumer conveniences for fuel and non-fuel products with assured quality and quantity

• Attributes : ISO 9002, Q&Q display/ equipment available simple and reliable• Values : Value for money and time, efficient and innovative• Personality : Speaks for quality and speed

Team 4 • Heritage : Born out of amalgamation of two leading multinational companies. Pioneer

marketing and refining Co. with almost 75 years. Of experience• Essence : Reliability & trust• Assets : Wide distributor network with experienced refiners and spread of pipelines• Identifiers : Oil spout

• Proposition : Convenience, Service , Trust• Attributes : Convenience; Location Smooth transaction

Service; Speed of transaction, Individual customer attention, Providing high standard amenities, Providing complete vehicle related needs under one roof

Trust : Q&Q, Relationship building

• Values : Meet needs from car to kitchen• Personality : Vibrant and innovative

building strong brands agenda for the day introduction establishing a common language building...

Documents

brand promise

brand preferencewhat

brand positioning statement

doctorconsumer customer

consumer preference

elements of brand identity

someones customerthe

realexamples product