SAKs Branding
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Transcript of SAKs Branding
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New ChapterNew Chapter
Product andProduct and
Branding StrategyBranding Strategy
PowerPoint by : Prof Sameer KulkarniPowerPoint by : Prof Sameer Kulkarni
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ObjectivesObjectives
Identify the various characteristics ofproducts.
Learn how companies build and manageproduct lines and mixes.
Understand how companies make better
brand decisions. Comprehend how packaging and
labeling can be used as marketing tools.
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What is a Product?What is a Product?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
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The Product and ProductThe Product and Product
MixMix
Potential customers judge product
offerings according to three
elements:
Product features and quality
Services mix and quality Value-based prices
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The Product and ProductThe Product and Product
MixMix
The customer value hierarchy:
Core benefit
Basic product
Expected product
Augmented product Potential product
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The Product and ProductThe Product and Product
MixMix
Product
Classifications
Durability and
tangibility
Consumer goods
Industrial goods
Nondurable
Tangible
Rapidly consumed
Example: Milk
Durable
Tangible
Lasts a long time
Example: Oven Services
Intangible
Example: Tax preparation
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The Product and ProductThe Product and Product
MixMix
Product
Classifications
Durability and
tangibility
Consumer goods
Industrial goods
Classified by
shopping habits:
Convenience
goods
Shopping goods
Specialty goods Unsought goods
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The Product and ProductThe Product and Product
MixMix
Product
Classifications
Durability and
tangibility
Consumer goods
Industrial goods
Materials and parts
Farm products
Natural products
Component materials Component parts
Capital items
Installations
Equipment
Supplies and businessservices
Maintenance and repair
Advisory services
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The Product and ProductThe Product and Product
MixMix
Product mix dimensions:
Width: number of product lines Length: total number of items in mix
Depth: number of product variants
Consistency: degree to whichproduct lines are related
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Brand-building AdvertisingBrand-building Advertising
Brand: Amul
As per Aakers model
AndAs per Kapferers prism
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AMUL : Aakers ModelAMUL : Aakers Model
Extended
Available
Food
Brand
Essence:
Core
Value Taste
IndianQuality
Pride
Variety
Milk
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AMUL: Aakers ModelAMUL: Aakers Model
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Brand-building: The StepsBrand-building: The Steps
Determine the current image with consumers
Define the desired image
Identify focus areas for action
Product development/innovationPackaging/delivery systemsAdvertising/promotions
Implement action plan witha monitoring programme
Feedback to action plan
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Physique :
Taste, QualityPersonality :
Simple, Indian
Self-Image :
Proud Indian, Fun lovingReflection :
Value Oriented
Culture :
Co-operative, Sharing
Relationship :
Sociable
AMUL : Kapferers PrismAMUL : Kapferers Prism
AMUL
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Product-Line DecisionsProduct-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization,
Featuring, and Pruning
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Brand DecisionsBrand Decisions
The AMA definition of a brand:
A name, term, sign, symbol, ordesign, or a combination of these,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from the competition.
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Brand DecisionsBrand Decisions
Brands can convey six levels of
meaning:
Attributes
Benefits
Values
Culture
Personality
User
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Brand DecisionsBrand Decisions
Brand identity decisions include:
Name
Logo Colors
Tagline
Symbol Consumerexperiences create brand
bonding, brand advertising does not.
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Brand DecisionsBrand Decisions
Marketers should attempt to create or
facilitate awareness, acceptability,
preference, and loyaltyamongconsumers.
Valuable and powerful brands enjoy
high levels of brand loyalty.
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Brand DecisionsBrand Decisions
Aaker identified five levels of
customer attitudes toward brands:
Will change brands, especially for price.
No brand loyalty.
Satisfied -- has no reason to change.
Satisfied -- switching would incur costs. Values brand, sees it as a friend.
Devoted to the brand.
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Brand DecisionsBrand Decisions
Brand equityrefers to the positive
differential effect that a brand name
has on customers.
Brand equity:
is related to many factors.
allows for reduced marketing costs.
is a major contributor to customer equity.
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Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Advantages ofbranding:
Facilitates orderprocessing
Trademark protection
Aids in segmentation
Enhances corporateimage
Branded goods aredesired by retailersand distributors
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Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Options include:
Manufacturer
(national) brand Distributor
(reseller, store,house, private)
brand Licensing the
brand name
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Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Strong brand names:
Suggest benefits
Suggest productqualities
Are easy to say,recognize, andremember
Are distinctive Should not carry poor
meanings in otherlanguages
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Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Varies by type of brand
Functional brands
Image brands
Experiential brands
Line extensions
Brand extensions
Multibrands
New brands
Co-branding
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Brand DecisionsBrand Decisions
Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
A brand report cardcan be used to audita brands strengthsand weaknesses.
Changes inpreferences or the
presence of a newcompetitor mayindicate a need forbrand repositioning.
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Packaging and LabelingPackaging and Labeling
Packaging includes:
The primary package
The secondary package
The shipping package
Many factors have influenced theincreased use of packaging as amarketing tool.
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Packaging and LabelingPackaging and Labeling
Developing an effective package:
Determine the packaging concept
Determine key package elements
Testing:
Engineering tests
Visual testsDealer tests
Consumer tests
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Packaging and LabelingPackaging and Labeling
Labeling functions:
Identifies the product or brand
May identify product grade
May describe the product
May promote the product
Legal restrictions impactpackaging for many products.
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Objective of advertisingObjective of advertising
Build the business today and build
brand value overtime
All advertising has to pass
through this objective test
How does Advertising buildHow does Advertising build
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How does Advertising buildHow does Advertising buildBrands?Brands?
Building brand salience
Unaidedawareness - aidedawareness
Building brand appeal
Intention to try - trial
Reinforce usage - increase usage
Building brand imagery
Usage imagery - userimagery
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Building Blocks forBuilding Blocks for
Brand-building Advertising IBrand-building Advertising I
MarketanalysisSize, volume, value, growth, geographic, seasonality
Consumeranalysis
Size, demographic,
geographic
Usage, depth, width
Companyanalysis
Size, profitability,distribution,
technology
Competitor analysis
Size, profitability, strengths, weaknesses
Brand
ildi l k f
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Advertising StrategyCreative Strategy , Media Strategy
Advertising Objective
Awareness , Salience , Image , attitude
Marketing Objectives
Sales , Market Share , Profits
Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis
Marketing StrategyProduct , Pricing , distribution , Service , packaging ,
Advertising & Sales Promotion
Building Blocks forBuilding Blocks for
Brand-building Advertising IIBrand-building Advertising II
How Does AdvertisingHow Does A vert s ng
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How Does AdvertisingHow Does A vert s ngWork IWork I
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Classic Hierarchy of Effect Model
How Does AdvertisingHow Does Advertising
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How Does AdvertisingHow Does AdvertisingWork IIWork II
Hierarchy of effect model tends to assume that advertising
works the same way for all product categories
Work on understanding Consumer Behaviour revealed that
advertising would work differently for different products Several new models were developed in the eighties and the
nineties
One such model was the FCB Grid
The Grid categorised products as
High involvement Vs low involvement
Thinking Vs feeling
How Does Advertising WorkHow Does Advertising Work
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How Does Advertising WorkHow Does Advertising Work
IIII
FCB GridFCB GridHigh involvement
Consumer is involved
with the product
category; identifies with it
and often takes time to
decide which brand to
use
E.g.: TV, car, perfume,
clothes, insurance (?)
Low involvementConsumer is not involved;
tends to see the utilitarian
values of the category;routine/quick decision
making
E.g.: detergents, fuel,
flour, mobile service (?)
How Does Advertising WorkHow Does Advertising Work
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How Does Advertising WorkHow Does Advertising WorkIIII
FCB GridFCB Grid
Think Vs feel
Think
Consumer decides using his
head :
Rationalitydrives the
choice of product/brand
Feel
Consumer decides using his
heart :
Emotionalitydrives the
choice of product/brand
Advertising to fit FCB GridAdvertising to fit FCB Grid
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THINKING FEELING
HIGH
INVOLVEMENT
LOW
INVOLVEMENT
Advertising to fit FCB GridAdvertising to fit FCB Grid
requirementsrequirements
LEARN-FEEL- DO
I) INFORMATIVE
FEEL-LEARN-DO
II) AFFECTIVE
DO-LEARN-FEEL
III) HABITUAL
DO-FEEL-LEARN
IV) SATISFACTION
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Category DifferencesCategory Differences
Consumer
Products
Consumer
Durables ServicesCorporate
Lower values Higher values Indeterminate No value
Frequent purchase Infrequent Indeterminate Variable
Narrow/BroadTarget customer
Narrow TargetCustomer
Variable Very wide/variable
Role of advertising in brand-building will tend to vary with category type
B d b ildi Ad i iB d b ildi Ad ti i
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Brand-building AdvertisingBrand-building Advertising
FCB Grid - Self-testFCB Grid - Self-test
Plot: car, TV, detergents, perfumes, flour, clothing,
insurance, mobile
Thinking Feeling
High
Involvement
Low
Involvement
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Consumer Products :Consumer Products :
What are they?What are they?
Low value, repeat purchase, consumption products
Male target : Cigarettes, soft drinks, colognes
Housewife: Soaps, shampoo, cooking oil, detergents
Teenagers: Soft drinks, confectionery, stationery
Repeat usage/purchase: everyday, every week, everymonth
C P d t TC P d t T
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Some consumer products could
be high involvement
Perfumes, Cigarettes
Health aids, Baby foods
Consumer Products : TypesConsumer Products : Types
Often low involvement,
routine purchase or
impulse purchase
What is the consumer issue
facing the brand?
Poor awareness leadingto poor trial
Poor repeat usage afterhigh trial
Lack of desired imageperceptions
What is the key task?
Attracting new users
Retaining existing users
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Consumer ProductConsumer Product
Purchase Behaviour 1Purchase Behaviour 1 Who decides, who buys, who
influences
Map the key influences in the purchase
process
Example :
Toothpaste : Housewife (decision maker)
Kid (influencer)
Consumer ProductConsumer Product
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Consumer ProductConsumer Product
Purchase Behaviour 2Purchase Behaviour 2
Limited level ofinformation searchby consumers
Often a routinisedpurchase or animpulse purchase
Extended problem
solving only in thecase of innovationCream for
foot cracks
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Consumer Product PurchaseConsumer Product Purchase
Behaviour 3Behaviour 3
All India Household Category penetration
Soaps 99%
Washing cake 93%
Toothpaste 44%
Hair oil 77%
Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI
Consumer Product Life Cycle : What stage is the
product ? Introduction / Growth / Maturity / Decline
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Brand-building AdvertisingBrand-building Advertising
Self Test 3Self Test 3
Consumer panel data shows the following:
aaaabaacbabcbabbb
a, b, c are three brands
Draw three inferences from thedata
What should be the role ofadvertising for Brand a ?
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You LearnedYou Learned
To identify the various characteristics ofproducts.
To learn how companies build andmanage product lines and mixes.
To understand how companies makebetter brand decisions.
To comprehend how packaging andlabeling can be used as marketingtools.
E d f L
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End of LessonEnd of Lesson
YouYou
start Brandingstart Branding