A SeminaronBRAND-BUILDING ADVERTISINGPlease use the CD in the FCB-Ulka Brand Building Advertising Cases book for the advertisements and TV commercials needed for the Seminar. Posting them on the site would have made the download slower. : A Seminar on BRAND-BUILDING ADVERTISING Please use the CD in the FCB-Ulka Brand Building Advertising Cases book for the advertisements and TV commercials needed for the Seminar. Posting them on the site would have made the download slower.


Seminar Structure: Seminar Structure Part I : Branding concepts Part II : Brand-building Advertising Part III : Consumer Products Part IV : Consumer Durables Part V : Services Part VI : Corporate Brands


Seminar Part IBranding Concepts: Seminar Part I Branding Concepts


What Is a Brand?: What Is a Brand?


Brand = Product + Images: Brand = Product + Images More than just the product or the service Add the intangible images that come to mind Add the usage occasions that come to mind Add the user imagery that comes to mind Brand = Values + Added values


Brand-building : The Focus: Brand-building : The Focus Not just a one-off exercise Continuously track brand appeal, brand image with target consumers Keep re-looking at all the aspects of the brand to keep it relevant and attractive End purpose : Attract and Retain customers


Understanding Brands : Aaker’s Model: Understanding Brands : Aaker’s Model Brand as Product Brand as Organization Brand as Person Brand as Symbol Value Proposition (Emotional/Rational/Self-expressive) Credibility (Support / Proof / Story ) Extended Core Brand Essence


The Kapferer Brand Identity Prism: PICTURE OF RECIPIENT PICTURE OF SENDER The Kapferer Brand Identity Prism


Brand-building Advertising SeminarSelf-test -1: Brand-building Advertising Seminar Self-test -1 Brand: Amul Draw Aaker’s model Draw Kapferer’s prism


AMUL : Aaker’s Model: AMUL : Aaker’s Model


AMUL : Kapferer’s Prism: AMUL : Kapferer’s Prism AMUL


Brand-building: The Steps: Brand-building: The Steps Determine the current image with consumers Define the desired image Identify focus areas for action Product development/innovation Packaging/delivery systems Advertising/promotions Implement action plan with a monitoring programme Feedback to action plan


Seminar Part IIBrand Building Advertising: Seminar Part II Brand Building Advertising


Slide15: Objective of advertising “Build the business today and build brand value overtime” All advertising has to pass through this objective test


How does Advertising build Brands?: How does Advertising build Brands? Building brand salience TOM Unaided awareness - aided awareness Building brand appeal Intention to try - trial Reinforce usage - increase usage Building brand imagery Usage imagery - user imagery


Building Blocks for Brand-building Advertising I: Building Blocks for Brand-building Advertising I Market analysis Size, volume, value, growth, geographic, seasonality Consumer analysis Size, demographic, geographic Usage, depth, width Company analysis Size, profitability, distribution, technology Competitor analysis Size, profitability, strengths, weaknesses Brand


Building Blocks for Brand-building Advertising II: Building Blocks for Brand-building Advertising II Market analysis + consumer analysis + company analysis + competitor analysis Marketing objectives Sales, market share, profits Marketing strategy Product, pricing, distribution, service, packaging Advertising & sales promotion Advertising objective Awareness, salience,Image, attitude Advertising strategy Creative strategy,Media strategy


How Does Advertising Work I: How Does Advertising Work I Awareness Knowledge Liking Preference Conviction Purchase Classic Hierarchy of Effect Model


How Does Advertising Work II: How Does Advertising Work 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 Work IIFCB Grid : How Does Advertising Work II FCB Grid High 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 involvement Consumer 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 Work IIFCB Grid: How Does Advertising Work II FCB Grid Think Vs feel Think Consumer decides using his head : ‘Rationality’ drives the choice of product/brand Feel Consumer decides using his heart : ‘ Emotionality’ drives the choice of product/brand


Advertising to fit FCB Grid requirements: Advertising to fit FCB Grid requirements LEARN-FEEL- DO I) INFORMATIVE FEEL-LEARN-DO II) AFFECTIVE DO-LEARN-FEEL III) HABITUAL DO-FEEL-LEARN IV) SATISFACTION


Category Differences: Category Differences Consumer Products Consumer Durables Services Corporate Lower values Higher values Indeterminate No value Frequent purchase Infrequent Indeterminate Variable Narrow/Broad Target customer Narrow Target Customer Variable Very wide/ variable Role of advertising in brand-building will tend to vary with category type


Brand-building Advertising SeminarFCB Grid - Self-test 2: Brand-building Advertising Seminar FCB Grid - Self-test 2 Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile Thinking Feeling High Involvement Low Involvement


Seminar Part IIIConsumer Products: Seminar Part III Consumer Products


Consumer Products : What are they?: Consumer Products : 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, every month


Consumer Products : Types: Some consumer products could be high involvement Perfumes, Cigarettes Health aids, Baby foods Consumer Products : Types Often low involvement, routine purchase or impulse purchase What is the consumer issue facing the brand? Poor awareness leading to poor trial Poor repeat usage after high trial Lack of desired image perceptions What is the key task? Attracting new users Retaining existing users


Consumer Product Purchase Behaviour 1: Consumer Product Purchase Behaviour 1 Who decides, who buys, who influences Map the key influences in the purchase process Example Toothpaste : Housewife (decision maker) Kid (influencer)


Consumer Product Purchase Behaviour 2: Consumer Product Purchase Behaviour 2 Limited level of information search by consumers Often a routinised purchase or an impulse purchase Extended problem solving only in the case of innovation Cream for ‘foot cracks’


Consumer Product Purchase Behaviour 3: Consumer Product Purchase Behaviour 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


Role of Advertising: Role of Advertising Fitting into the AIDA / hierarchy of effects model Awareness Interest Desire Action Going beyond : using product category information ; learn - feel - do ? Giving users the desired image messages Attracting non-users to the brand


Brand-building Advertising Seminar Self Test 3: Brand-building Advertising Seminar Self Test 3 Consumer panel data shows the following: aaaabaacbabcbabbb a, b, c are three brands Draw three inferences from the data What should be the role of advertising for Brand ‘a’ ?


Santoor : A Case of Mistaken Identity: Santoor : A Case of Mistaken Identity


Santoor : A Case of Mistaken Identity: Santoor : A Case of Mistaken Identity Launched as a ‘Sandal + Turmeric’ soap by Wipro in 1986 Attractively priced and a good product offering Conceived as an affordable soap with the goodness of Sandal Till then sandal seen as a high value ingredient only available in Mysore Sandal soap Vicco making a success of sandal + turmeric cream


Santoor : Phase I Promotion: Santoor : Phase I Promotion Advertised as a ‘sandal + turmeric’ soap Offering “age old beauty secrets of India” Price flagged off at the end Traditional imagery of woman in sari, temple, sandal paste


Santoor : Phase I Results: Santoor : Phase I Results Brand attracted decent volumes : 2,500 tonnes Got a core group of ‘Value oriented’ consumers to try and remain with the brand But growth stopped in Year 2 No new users coming into brand !


Santoor : The Challenge: Santoor : The Challenge Need to retain the traditional users Need to rapidly attract new users Need to provide image values that will build the brand for future growth


Santoor : The Brand Interrogation : Santoor : The Brand Interrogation Sandal and turmeric traditional beauty aids in India What are their roles in skin care? Searched literature for finding how sandal and turmeric are useful for beauty care The Secret: Skin Care Both are great skin care aids In fact help reduce wrinkles and impart a youthful glow


Santoor : The Ingredient Vs The Benefit: Santoor : The Ingredient Vs The Benefit Santoor selling ingredients to a set of believers But not many knew of the benefits the brand and its ingredients offered Why not move away from ‘ingredient’ based advertising to ‘benefit’ based advertising? What if the core users moved away thinking the brand has changed?


Santoor : Finding the Balance: Santoor : Finding the Balance New advertising needed to present the brand in a new light to attract new users But old users should not get alienated either! The answer : Benefit based advertising rooted in the ingredients “Santoor cares for your skin because it contains the goodness of sandal and turmeric”


Santoor : Skincare to Younger Looking Skin: Santoor : Skincare to Younger Looking Skin Skin care, too broad an offer Narrowed down to younger looking skin Based on product interrogation Delivering the younger looking skin story “Mistaken identity” A common occurrence Based on a consumer insight


Santoor Press Ad: Santoor Press Ad


Santoor TVC : Book shop: Santoor TVC : Book shop


Santoor TVC : Marriage: Santoor TVC : Marriage


Santoor TVC : Aerobics: Santoor TVC : Aerobics


Santoor : The Growth Path: Santoor : The Growth Path New advertising broke in 1989 - the brand sales have climbed consistently over the last 12 years Santoor has outperformed the market constantly Built a brand without Mega media budgets High-power sales force Major technological innovations


Brand-building Advertising SeminarSantoor : The Challenges Ahead - Self Test 4: What should be Santoor’s next moves in building a strong brand? Brand Extentions Advertising Promotions Brand-building Advertising Seminar Santoor : The Challenges Ahead - Self Test 4


Captain Cook Atta - Farmer to Home: Captain Cook Atta - Farmer to Home


Captain Cook Atta - Farmer to Home: Captain Cook Atta - Farmer to Home Captain Cook Salt launched in mid eighties After a few false starts established a strong hold in the market against Tata salt with the “free flow” feature Captain Cook brand seen as an aggressive, combative, young brand Plans on to extend Captain Cook to other food products


Captain Cook Atta : The Kitchen Story: Captain Cook Atta : The Kitchen Story Atta primarily bought as grain and milled at a local “chakki” Housewife uncomfortable with packed branded food products Suspected a loss of control over the cooking process Also suspected ingredients, process, additives


Captain Cook Atta : Atta - the Centerpiece: Captain Cook Atta : Atta - the Centerpiece Housewife derived self-worth from the appreciation of cooking from family members Atta seemed to be critical to the cooking process - a major concern area Most households were into buying grain carefully and getting it milled Very low penetration of packed branded atta So a problem with many dimensions!


Atta - Problem Dimensions: Atta - Problem Dimensions Atta - critical to cooking Atta rarely bought in packed form Ingredient of atta critical to final product Low faith in packed food products Unwilling to give up control over cooking “Loss of control” - a fear “Fear of taste back lash” - another fear


Advertising Tasks: Advertising Tasks Create awareness of the new offering ‘packed - branded - atta’ from captain cook Build conviction to try the brand by addressing key consumer concerns


Captain Cook Atta : Key Trigger: Captain Cook Atta : Key Trigger Consumer research revealed that Quality of grain is key Consumer suspicious of quality of grain Will the consumer try the new offering if convinced?


Captain Cook Atta: Sugar-coating: Captain Cook Atta: Sugar-coating How to make the story even more credible? How to break through the consumer apathy and incredulity?


Captain Cook: Storyline: Captain Cook: Storyline Make the brand protagonist an expert A farmer’s wife Create disbelief in taste of atta Consumer’s current mindset Build and anchor the story around one key issue Quality of the grain


Captain Cook: Media Thrust: Captain Cook: Media Thrust Focussed inputs through TV medium with long format TVC High impact, long burst of TV advertising Supported with only outdoor medium


Captain Cook Atta TVC: Captain Cook Atta TVC


Captain Cook Poster: Captain Cook Poster


Captain Cook : Impact: Captain Cook : Impact Captain Cook Atta virtually created the branded atta market Moved consumers from ‘grain + chakki’ orientation to packed brands High trial rate and reasonable retention attracted attention of the food majors Leading to a boom in the branded atta market


Brand-building Advertising SeminarCaptain Cook Atta: Self - Test 5: Brand-building Advertising Seminar Captain Cook Atta: Self - Test 5 What would have been a more brand focussed message ? Will the advertising done in 1996 work in 2002 ?


Seminar Part IVConsumer Durables: Seminar Part IV Consumer Durables


Defining Consumer Durable: Defining Consumer Durable Unlike consumer products (FMCG) which are ‘consumed’, a consumer durable is ‘used’ for extended periods Since it is used and for long periods, the consumer tends to look at them differently Consumer durables could be: High value: washing machine, car, scooter, TV Low value: ceiling fan, mixer/grinder


Key Differences: Key Differences


Types Of Consumer Durables: Types Of Consumer Durables The more expensive more complex durables Cars, TVs Call for more information, more search Less expensive, less complex durables Sewing machine, steel cupboard Call for less search Complexity of purchase will also be dictated by the SEC of the consumer: Two wheeler Vs car Mixie Vs cooking range Fan/air cooler Vs air conditioner


Seasonality of Consumer Durable Purchase: Seasonality of Consumer Durable Purchase Often consumer durables account for a large part of the household income: Car = 12 months income TV = 1 months income Purchase is planned out over a long period of time Specific seasonal peaks Diwali : All durables Pre-summer : ‘Cooling’ aids Wedding season : All durables September/March - Depreciation benefits


Sources Of Information: Sources Of Information Extended search of information hence many sources of information: Word of mouth : from other users of the product/brand Dealers : sources of deep knowledge Experts : mechanics/service engineers Advertising : mass media - press, TV Literature : comparison across brands/models Internet : In US 40% all car buyers use the net for information Unlike consumer products many more sources are used for collecting, analysing information before a purchase decision is made


Key Areas Of Enquiry: Key Areas Of Enquiry Product oriented Key features of the product Models available Pricing Price comparison across models Financing options available Availability Dealer points available Reputation of dealer Service After sales service set up Installation and maintenance Running cost Fuel consumption, electricity consumption A brand reputation Reputation of the brand


Indian Consumer Durable Penetration: Indian Consumer Durable Penetration All India Household Penetration of key durables: Washing Machines 2.7% Refrigerators 11.1% Two Wheeler 4.7% Cars 0.5% Mixie 17.0% Analyse penetration by Urban / Rural, SEC, Town Class, Region, etc.


Advertising Issues For Consumer Durables: Advertising Issues For Consumer Durables Increase penetration Sell category benefits Offer ‘value’ Increase ‘upgradation’ Sell higher-end features Offer ‘style’ Increase per-capita usage Sell special ‘niche’ features Offer special benefits


FCB Grid For Durables: FCB Grid For Durables Durable by definition are high-involvement But are all of them rational/think? Or is there an emotional touch? Should all consumer durable advertising be high-involvement - think focussed?


How To Advertise: How To Advertise Depends on the type of durable, the target audience, the features offered, the competition Emotional touch will work if - features are all similar, competition high, consumer is not rational in purchase Features based appeal if - brand offers unique features, competition is not in a position to match Benefit based appeal if - brand model offers unique benefits (quick ice), not yet capitalized by competition


Role Of Advertising: Role Of Advertising Consumer durable advertising cannot ‘sell’ the brand since purchase is often complex Advertising to Create awareness Disseminate information Build conviction Drive visit to dealers for Enquiry Demonstration The final sale is clinched at the dealer showrooms


Role Of Advertising: Role Of Advertising Often advertising’s job is to get the brand into the consumers CONSIDERATION SET Entry into consideration set will make the consumer seek and analyse more information about the brand/model Build conviction of current users to reduce post purchase dissonance Aid word-of-mouth and positive ‘buzz’ about the brand


Brand-building Advertising SeminarFCB GRID for Durables - SELF Test 6: Brand-building Advertising Seminar FCB GRID for Durables - SELF Test 6 Plot : 21” colour TV Ceiling fan Car Steel cupboard Scooter Computer


VOLTAS - MEGALAUNDRETTE: Making Impossible Possible: VOLTAS - MEGALAUNDRETTE: Making Impossible Possible


VOLTAS - MEGALAUNDRETTE: Making Impossible Possible: VOLTAS - MEGALAUNDRETTE: Making Impossible Possible Mid 90’s - Indian consumer discovering washing machines Decrease in excise duty making washing machines more affordable: “Do you want us to be known as a country of maids?” Prime minister P V Narasimha Rao Influx of over 25 brands: Videocon, TVS Whirlpool, Maharaja, IFB, BPL, Godrej, National The market getting overcrowded in a very short period


Voltas - Entry: Voltas - Entry Voltas : Top three refrigerators manufacturer Keen on expanding portfolio and use the manufacturing and distribution network Washing machine identified as the category to consider Technical tie-up with Samsung for import of key components


Positioning: Positioning All washing machines claimed: “Whitest wash” “Quickest wash” “Easy wash” Some were using jargon to sell better cleaning: “Turbo clean”, “Pressure clean”, “Hand wash clean”


Understanding Consumers: Understanding Consumers Indian consumers traditionally used to give clothes out to laundry for washing Influx of detergents and washing machine had reduced outside help to only ironing and dry cleaning expensive clothes Expert cleaning still seen to be outside the home domain ‘Laundry’ cleaning seen as the ultimate


Voltas Washing Machine: Voltas Washing Machine The range positioned as the “LAUNDRETTE RANGE” Voltas Launderette offers “laundry level of cleaning” Thus moving out of the confines of the white, quick wash offered by other brands The brand launched with a range of machines under the umbrella Quandry: which model to promote?


Product Interrogation: Product Interrogation Examined all the models offered by Voltas and all other Indian brands Analysed all the claims and offers made by Indian brands Looking for a distinctive promise that is relevant, believable and unique : The RUB TEST


The Different Differences: The Different Differences Voltas offered a large capacity washing machine - not matched by any other brand Large capacity seen by Indian marketeers as just a size offering without any real value Can size be the differentiator? Indian families are large Clothes tend to get dirty everyday and need to be washed Can size be offered without diluting the key benefits of washing clean?


Voltas Megalaundrette: Voltas Megalaundrette The brand name Megalaundrette - coined to reinforce size and ‘laundry clean’ cleaning The promise: The biggest size in its class The benefit: more clothes can be washed at one time - as required by large Indian families


The Campaign: The Campaign TV commercial built on the incredulity of a home situation where many clothes are washed at the same time A humourous jingle based TVC that drove home the size advantage Without showing dirty clothes or washing Yet giving a clean look to the brand


Voltas Megalaundrette TVC: Voltas Megalaundrette TVC


Voltas Megalaundrette Press : Voltas Megalaundrette Press


The Result: The Result Voltas Megalaundrette was primarily promoted through TV with dealer support material that played back the TV message Voltas saw a huge income in dealer traffic - the third most enquired brand for the campaign period Voltas Megalaundrette advertising entered advertising ‘hall of fame’


Brand-building Advertising SeminarVoltas - Self Test 7: Brand-building Advertising Seminar Voltas - Self Test 7 Is it possible to identify two more such non-primary benefits for promoting washing machines?


GODREJ Storwel - Treasuring Memories: GODREJ Storwel - Treasuring Memories


GODREJ Storwel-treasuring Memories: GODREJ Storwel-treasuring Memories A heritage brand that is over 50 years old Origins of the brand date back to the days when Godrej used to make ‘safes’ Storwel product conceived as an affordable safe for keeping the family valuables Godrej pioneered the product category and sold it through exclusive showrooms


Changing Consumer: Changing Consumer The need for ‘safes’ saw a decline in the 60s and 70s with banks taking the role of safe keeping Godrej Storwel transformed to become a reliable cupboard for keeping family clothes and valuables The model extended to offer a variety of inside partitions


Enter The Competition: Enter The Competition Godrej Storwel was made through a process called ‘cold rolled’ - resulting in high quality but also high price Organized competition enters in the form of Chandan, Allwyn and numerous regional brands Bigger threat from small unorganized players offering same looks for half the price


Quality Paradox: Quality Paradox Godrej Storwel stood for ultimate quality in steel cupboards - no rusting, no chipping, perfect finish, no gaps etc Local brands offered reasonable quality but the differences (like rusting/chipping) surface only after 5 to 10 years The quality paradox was hence not perceived by the consumer who saw ‘value’ in the local brands


Selling Quality: Selling Quality Godrej Storwel stood for ultimate quality but Did the consumer want that level of quality? Was the price-quality trade-off relevant? Can Godrej Storwel sell on just quality?


Understanding Consumers: Understanding Consumers Godrej Storwel had a huge reservoir of goodwill with consumers Consumers associated it with happy occasions: weddings, childbirth, growing-up Storwel was not just seen as a steel cupboard but as a member of the family, who grows with the family Can this be the way to sell the brand?


EMOTIONAL Vs RATIONAL APPEAL: EMOTIONAL Vs RATIONAL APPEAL Consumer durables are often high-involvement rational purchase Godrej Storwel had a 50%+ premium over the local brand Should Godrej Storwel sell on rational reasons like better steel, better fit/finish, long lasting etc. Or should it sell on emotional reasons: warmth, family values…. Long lasting


Emotional Rescue: Emotional Rescue Can Godrej Storwel be sold on emotions, if so how? Research revealed that Godrej Storwel is bought during specific occasions - marriage - New baby - New home Advertising route was taken to link these happy moments with Godrej Storwel A series of jingle based commercials were produced


Pre-test To Study Impact: Pre-test To Study Impact The TVCs tested in an animatic form to study impact and attitude change Scored high on break through/cut through More importantly improved attitude on - Good value - Long lasting In fact built emotional bonding with consumers while subliminally strengthening rational benefits offered by the brand


Godrej Storwel TVC : Wedding: Godrej Storwel TVC : Wedding


Godrej Storwel TVC : Mother-to-be: Godrej Storwel TVC : Mother-to-be


The Campaign: The Campaign Godrej Storwel campaign on emotional plane was started in 1986 and continues today 15 years later Godrej Storwel continues to command a premium in the market and sells in the face of newer competition


Brand-building Advertising SeminarGodrej Storwel: Self Test 8: Brand-building Advertising Seminar Godrej Storwel: Self Test 8 What other brand-building initiatives would be needed to keep Godrej Storwel strong in the next decade? Product initiatives Promotion initiatives Can you name a couple of other durable brands who have used emotional appeal?


Seminar Part VServices: Seminar Part V Services


What Are Services?: What Are Services? “One day all brands will be service brands!” When a success of an automobile depends on service network? When a durable brand depends on the pre-sales and after-sales service? When a consumer product purchase can be influenced by the retail environment?


Services Brand Types: Services Brand Types Services are bought by consumers, at times without being conscious of the brand image A telephone service An airline A hotel ATV channel A website A bank A retail chain All these and more are services that consumers buy, everyday - but are they brands?


Services Brands - Relevance: Services Brands - Relevance Telephone service : MTNL Vs BPL Vs Orange Hotel : Taj Vs Quality Inn Vs Welcomgroup Bank : State Bank Vs Citibank Vs Central Bank Branding concepts have been applied to services not too long ago - and the art is still being perfected When a customer chooses a bank what are the reasons: - The location - The word-of-mouth - The decor - The staff - The ‘brand’?


Services Brands - Emerging Trends: Services Brands - Emerging Trends Services marketeers are discovering the power of branding and integrating all elements under a brand image umbrella Logo identity Look and feel Décor of premises Uniform of staff Communication


Services Brands - Image Perceptions: Services Brands - Image Perceptions Often more complex than an FMCG or durable High reliability on the human element Every interaction with the services brand could lead to image change Need to bring about uniformity Staff training is key Coupled with pricing, decor, ease of use, location, communication


Services Penetration: Services Penetration All India Household penetration of a few services : Telephone 6.8% Bank Account 17.5% Cell Phone 0.2% Analyse the data for urban / rural, SEC, regions etc.


Role Of Advertising: Role Of Advertising Services brands are built by the human involvement of customers with the brand (and its employees) Advertising can be used to reinforce the service image - Singapore airline - Singapore girl - friendly service - British airways - world’s favourite - reliability Advertising can be used to - Build awareness - for a new service or to a new segment of customers - Communicate features/benefits - a new service addition - Generate enquiries - call for action - Build Image - premium image, usage imagery, user imagery


Services Advertising Paradigms: Services Advertising Paradigms Two classical ways services use advertising


Advertising After Sales: Advertising After Sales Services brands like airlines, banks, telecom, need to retain customers over the long term to build profitable segments Often cost of acquiring a new customer is six times more expensive than retaining an existing customer Special route of Direct and Customer Relationship Management are used to retail and build customer bonding


Building Customer Relationships: Building Customer Relationships Services brands need to fellow a step-by-step process to build customer relationships Identify customers Understand the need of the customers Tailor value propositions Test the propositions Make offers to customers Reward long-term usage


Building Customer Loyalty: Building Customer Loyalty Services brands that attract high loyalty achieve long-term success Loyalty programmes Frequent flyer miles : airlines Bonus points : credit cards Discount cards : retail Coupled with the loyalty programmes services brands offer - Special services to loyal customers - Special prices to loyal customers - Special messages to loyal customer - And communicate regularly with them In short make the loyal customer feel special!


Brand-building Advertising Seminar FCB Grid - Services Brands - Self Test 9: Brand-building Advertising Seminar FCB Grid - Services Brands - Self Test 9 Services come in all types Basic telephony Shares Insurance Hotel Airline


Bangaram Island Resort : Thank God !: Bangaram Island Resort : Thank God !


Bangaram Island Resort : Thank God !: Bangaram Island Resort : Thank God ! An independent island in Lacadives Popularised by Rajiv Gandhi’s family holiday in the 90’s. Run by the Casino group of Cochin


Bangaram Island - The Brand : Bangaram Island - The Brand Not just a hotel built on an island! Resort conceived as a brand: “To be one with nature” Resort built with eco-friendly material No telephones, no TV, no cable No alcohol, no soft drinks, nothing artificial


The Concept: The Concept Conceived as a resort with a limited number of rooms High prices to ensure high quality up keep and nature support Targeting the right audience


Selling The Concept To Whom?: Selling The Concept To Whom? Primary target - the sophisticated western tourist Secondary target - the evolved domestic tourist


Tourism Hierarchy: Tourism Hierarchy Visit exotic domestic locations Bangaram fitted in here Indian tourist moves up the hierarchy of type of holidays


Attracting International Tourists: Attracting International Tourists High cost of advertising in international press However need to build word-of-mouth in western markets Targeted the specific travel agents and travel writers Invited this elite group for a holiday to Bangaram Resulted in excellent write-ups in high profile travel and holiday journals


Attracting The Domestic Tourist: Attracting The Domestic Tourist Given the size of the hotel mass media advertising is prohibitively expensive How to target the top end holiday customer with limited budget? How to build high-image appeal with limited spend levels?


Narrow Casting Message: Narrow Casting Message Target audience definition focus let to narrow casting to the upper-upper income intelligentia in the top four cities Further analysis revealed that reach of financial papers reasonably high with the narrow casted target Need to appeal to this target with the right message, in the right scale


Message Focus : Message Focus Message delivered has to bring out the “one with nature” theme of the brand Message had to be attractively packaged to almost make the brand temptingly close Build a response mechanism to capture interested target audience names


The Campaign: The Campaign One ad in only one paper (Economic Times) was all that was affordable A large sized ad that could not be missed With a response coupon to capture data Over 1500 responses for one ad Build the first batch of Indian tourists to Bangaram And they became the brand advocates! Bangaram did not advertise again!


Bangaram Press Ad: Bangaram Press Ad


Brand-building Advertising SeminarBANGARAM : Self Test 10: Brand-building Advertising Seminar BANGARAM : Self Test 10 What could be other modes of marketing communication that could have been used by Bangaram?


Escotel - Building A Cellular Family: Escotel - Building A Cellular Family


Escotel - Building A Cellular Family: Escotel - Building A Cellular Family Escotel - the cellular company from the Escorts group Licensee for western UP, Haryana and Kerala One of the first movers in the cellular industry


Cellular Market Then: Cellular Market Then Cellular services had just entered Delhi, Bombay, Calcutta and Chennai Relative lack of understanding of the utility values of cell phones First users were all the status conscious Cell phones became the status symbol of the rich and famous High price of handsets and airtime did not help either


The Target Markets: The Target Markets Haryana / western UP and Kerala very different in behaviour Haryana and western UP had typical north Indian characteristics Propensity to show off More talk, more show Keeping-up-with-the-Jones Kerala market significantly different More educated More value oriented More ‘international’


Escotel Challenge: Escotel Challenge A completely unknown company in telephony No perceived knowledge base in electronics (like BPL) or telephony (Bharti) However Escorts had a big name (in automobiles) and had a loyal support base How to leverage this base into a useful movement?


Escotel Sansar: Escotel Sansar Created the concept of ‘Escotel Sansar’, the Escotel family This new family stood for the new aspirations of the modern customer Captured the ethos of Escorts: long-standing trust and value


Escotel Values: Escotel Values To sell the service with price plans or to sell brand values - the first challenge Need felt to sell Escotel as a brand that stood for new hopes, new horizons, new aspirations of todays’ consumer Avoided the price based advertising in the first full phase of launch


Escotel Customer - North / South: Escotel Customer - North / South Tailored the message to suit the two different set of customers North : builder, family man, industrialist South: doctor, film maker, marine exporter While keeping the overall values similar and appealing


Escotel Press Ad 1: Escotel Press Ad 1


Escotel Press Ad 2: Escotel Press Ad 2


Escotel Press Ad 3: Escotel Press Ad 3


Escotel Press Ad 4: Escotel Press Ad 4


Escotel Launch: Escotel Launch The effort at brand-building advertising paid off While competition focussed only on price based advertising, Escotel’s mix of messages built a true Sansar Leading to market dominance in all the three markets


Brand-building Advertising SeminarESCOTEL : Self Test 11: Brand-building Advertising Seminar ESCOTEL : Self Test 11 Escotel brand advertising’s relevance in todays’ setting?


Seminar Part VCorporate Brands: Seminar Part V Corporate Brands


What Are Corporate Brands: What Are Corporate Brands Corporate brands go beyond a product, a service or a product range Depending on the branding structure used, a corporate brand can be An endorser A driver A support Very difficult to typecast corporate brands TATA - sometimes endorser, sometimes driver GE - often driver SONY - often driver Reliance - support Wipro - driver - endorser


Corporate Brands in the Branding Structure: Corporate Brands in the Branding Structure


The Differences in Corporate Brands: The Differences in Corporate Brands Some corporate brands go on products: Sony Walkman, Sony Vaio Some corporate brands stay as endorser Some corporate brands stay out of lime light: P & G, Lever


The Differences Across Categories: The Differences Across Categories Unlike FMCG brands and durable brands, corporate brands have several key differences Multiple products or service Multiple target customers Multiple target audiences Not focussed on selling Brand salience focussed Brand image focussed


Corporate Brand Target Audiences: Corporate Brand Target Audiences Varied target audiences - many stake holders Customers - heavy, medium, light Associates - suppliers Trade - distributors, retailers Employees - across departments; potential Shareholders - stake holders Government - local and central Industry bodies - associations


Corporate Brand Values & Ownerships: Corporate Brand Values & Ownerships Corporate brand values need to transcend narrow boundaries of products and services Three large areas of focus Innovation Value Service “The customers decide on the fate of brands, they own the brands” : Economist


Corporate Brands reflect the Leader’s Vision: Corporate Brands reflect the Leader’s Vision Across the world the leader’s personality reflects on the corporate brand: Richard Branson - Virgin - outrageous / young Jack Welsh - GE - aggressive / growth Karsanbhai Patel - Nirma - value / quality Founder’s personality often stays on with the brand they have created: Akio Morita - Sony - innovation Henry Ford - Ford - value


Building Corporate Brands: Building Corporate Brands The founder/CEO is often the biggest medium Use of multiple communication tools: Public relations - press/media coverage Identity programme - logo, stationery, signage Retail presence - outlets, service Corporate communication - annual reports, offices, buildings Advertising - media, direct, internet


Corporate Brand Advertising: Corporate Brand Advertising Role of corporate advertising varies in consumer products, consumer durables, services and business selling environment Corporate advertising is often beyond products and revenues To project the deeper ethos of the brand, the one key variable that unites all that the brand offers, through various product and services


Brand-building Advertising SeminarCORPORATE BRAND’S ROLE: Self Test 12: Brand-building Advertising Seminar CORPORATE BRAND’S ROLE: Self Test 12 Corporate brand is an Invisible endorser Strong endorser Driver Categorise the following brands with examples Nirma - Britannia - Whirlpool Unilever - Panasonic - HP


Wipro - Applying Thought: Wipro - Applying Thought


Wipro - Applying Thought: Wipro - Applying Thought Origins in the edible oil industry Vanaspathi manufacturing under Wipro Sunflower brand name Diversified into soaps and toiletries in the eighties Tasted success and expanded range into diverse areas


Wipro - Beyond Oils: Wipro - Beyond Oils Entered computer hardware business Super genius computers Followed this with entry into computer services and software Wipro lighting division, Wipro medical systems set up in 90’s


Wipro - In 1998: Wipro - In 1998 A Rs. 1500 + crore group Over 70% of turnover from infotech business Changing the profile of the corporate brand seen to Reflect the new energy Make the corporate more attractive to investors Make it a destination company for talent


Wipro - Mining Consumer Minds: Wipro - Mining Consumer Minds What does Wipro stand for in the consumer’s minds? Research to delve into the perceptions of consumers soaps, lighting Computer hardware Computer software Wipro seen as a sensible ‘thinking’ company Lending to the tag line “applying thought”


Signalling A Change: A New Look: Signalling A Change: A New Look Wipro corporate logo changed to a colourful rainbow flower The colours indicating high vibrancy, new energy, new look Corporate identity revamped to reflect the new look Four key missions identified Value Innovation Service Integrity


How To Communicate The New Wipro: How To Communicate The New Wipro ‘Applying thought’ - a rational way of doing business Bringing the concept alive - possible through identifying specific stories that bring alive the ‘applying thought’ Present Wipro as a caring company that is: ‘thinking about you’


Wipro Corporate Campaign: Wipro Corporate Campaign Build on real life stories of applying thought Baby soap - with milk & almonds Lighting - 30% more life Hardware - built to suit tough Indian conditions Software - high end telecom application Service - computer service levels


Wipro Corporate Brand Activities: Wipro Corporate Brand Activities Press campaign supported by outdoor Public relations to get stories on the new Wipro Increased investor relation, corporate brochure, annual reports etc.


Wipro Press Ad 1: Wipro Press Ad 1


Wipro Press Ad 2: Wipro Press Ad 2


Wipro Press Ad 3: Wipro Press Ad 3


Wipro Corporate Brand: Wipro Corporate Brand Brand salience improved from ‘unknown’ to ‘known’ Stock market boom aided Wipro’s climb to the top From being in the 25th position on most admired corporate brand, Wipro climbs to top 5 in three years


Brand-building Advertising SeminarWIPRO CORPORATE: Self Test 13: Brand-building Advertising Seminar WIPRO CORPORATE: Self Test 13 What could be other methods Wipro could use to build the Corporate brand?


Tata Lucent: Telecom Revolution: Tata Lucent: Telecom Revolution


Tata Lucent: Telecom Revolution: Tata Lucent: Telecom Revolution Tata Telecom set up to manufacture EPABX systems - aimed at the large corporate segment Tata Telecom selling through dealers and own sales executives to large accounts Joint venture with Lucent Technologies


Lucent Technologies : Powerhouse: Lucent Technologies : Powerhouse Lucent Technologies - the equipment company spun off from AT&T Lucent world leader in telecom equipment catering to the large sector Lucent’s heritage from Bell Labs of erstwhile AT&T Bell Labs to one of the world leaders in technology patents !


Tata Lucent: Task Ahead: Tata Lucent: Task Ahead Tata Lucent plans to enter the high end telecom market Target audience Private telecom companies Cellular companies Govt. Sector (telecom) Large organisations


Customer Perceptions: Customer Perceptions Tata Telecom seen as a reliable telecomy partner However not seen as technologically advanced High trust from the Tata name but not seen as cutting edge technology High profile competition from brands like Alcatel, Siemens and Japan companies


Need To Build Corporate Brand: Need To Build Corporate Brand Tata Lucent planning to launch a range of telecom systems under various brands like ‘Infiniti’ Will the consumer accept the high end offering? What is the relative perceptions of Lucent? Very low awareness of Lucent - Bell Labs connection and importance not widely known


The Need For Brand: The Need For Brand Tata Lucent brand facing competition from Alcatel and Siemens - high-tech image Target customers primarily telecom companies and large corporates Why should they look at Tata Lucent! How big is Lucent? What is their competence? What can they offer?


Tata Lucent - The Campaign: Tata Lucent - The Campaign Focussed on the technology achievements of Bell Labs Highlighted the Bell Labs origin of Lucent Presented Tata Lucent in a high tech environment Broke through the clutter and achieved very high break through


Tata Lucent Press Ad 1: Tata Lucent Press Ad 1


Tata Lucent Press Ad 2: Tata Lucent Press Ad 2


Tata Lucent Press Ad 3: Tata Lucent Press Ad 3


Tata Lucent Press Ad 4: Tata Lucent Press Ad 4


Brand-building Advertising SeminarTATA LUCENT - Self Test 14: Brand-building Advertising Seminar TATA LUCENT - Self Test 14 Could Tata Lucent have used any other platform other than technology/innovation?


Summing Up :Brand-building Advertising in 10 Easy Steps: Summing Up :Brand-building Advertising in 10 Easy Steps Define brand values Understand competitive framework Understand consumer behaviour Understand the role of advertising Define the short and long term brand objectives Define communication objectives Develop communication strategy Evolve the creative strategy to drive the message Plan and place media : media strategy Build a tracking mechanism


Thank You !: Thank You !