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A Seminar on ROLE OF ADVERTISING IN BRAND BUILDING
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Page 1: Brand buildingadvertsingseminar3

A Seminaron

ROLE OF ADVERTISING IN BRAND BUILDING

Page 2: Brand buildingadvertsingseminar3

What Is a Brand?

Aproduct

Aservice

Alogo

Apackaging

Ashop

Acountry A

person

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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

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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

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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

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Physique Personality

Self-ImageReflection

CultureRelationship

PICTURE OF RECIPIENT

PICTURE OF SENDER

The Kapferer Brand Identity Prism

INTERNALISATIONEXTERNALISATION

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Brand-building Advertising Seminar

Self-test -1

Brand: Amul

Draw Aaker’s model

Draw Kapferer’s prism

Page 8: Brand buildingadvertsingseminar3

AMUL : Aaker’s Model

Extended

Available

Food

Brand Essence:

Core

Value

Taste

IndianQuality

Pride

Variety

Milk

Page 9: Brand buildingadvertsingseminar3

Physique : Taste, Quality

Personality :Simple, Indian

Self-Image :Proud Indian, Fun loving

Reflection :Value Oriented

Culture :Co-operative, Sharing

Relationship :Sociable

AMUL : Kapferer’s Prism

AMUL

Page 10: Brand buildingadvertsingseminar3

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 witha monitoring programme

Feedback to action plan

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Seminar Part II

Brand Building Advertising

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Objective of advertising

“Build the business today and build brand value overtime”

All advertising has to pass through this objective test

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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

Page 14: Brand buildingadvertsingseminar3

Building Blocks for Brand-building Advertising I

Market analysisSize, volume, value, growth, geographic, seasonality

Consumeranalysis

•Size, demographic, geographic•Usage, depth, width

Company analysis

•Size, profitability, •distribution, technology

Competitor analysisSize, profitability, strengths, weaknesses

Brand

Page 15: Brand buildingadvertsingseminar3

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

Page 16: Brand buildingadvertsingseminar3

How Does Advertising Work I

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Classic Hierarchy of Effect Model

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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

Page 18: Brand buildingadvertsingseminar3

How Does Advertising Work IIFCB 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 involvementConsumer is not involved; tends to see the utilitarian values of the category; routine/quick decision makingE.g.: detergents, fuel, flour, mobile service (?)

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How Does Advertising Work IIFCB Grid

Think Vs feel

ThinkConsumer decides using his

head : ‘Rationality’ drives the choice of product/brand

FeelConsumer decides using his

heart : ‘ Emotionality’ drives the choice of product/brand

Page 20: Brand buildingadvertsingseminar3

THINKING FEELING

HIGH

INVOLVEMENT

LOW

INVOLVEMENT

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

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Category Differences

ConsumerProducts

ConsumerDurables Services Corporate

Lower values Higher values Indeterminate No value

Frequent purchase Infrequent Indeterminate Variable

Narrow/BroadTarget customer

Narrow Target Customer

Variable Very wide/variable

Role of advertising in brand-building will tend to vary with category type

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Brand-building Advertising SeminarFCB Grid - Self-test 2

Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile

Thinking FeelingHigh

Involvement

Low Involvement

Page 23: Brand buildingadvertsingseminar3

Seminar Part III

Consumer Products

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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

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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

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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)

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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’

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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

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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

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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’ ?

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Santoor : A Case of Mistaken Identity

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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

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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

Page 34: Brand buildingadvertsingseminar3

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 !

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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

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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

Page 37: Brand buildingadvertsingseminar3

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?

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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”

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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

Page 40: Brand buildingadvertsingseminar3

Santoor Press Ad

Page 41: Brand buildingadvertsingseminar3

Santoor TVC : Book shop

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Santoor TVC : Marriage

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Santoor TVC : Aerobics

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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

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What should be Santoor’s next moves in building a strong brand?

Brand Extentions

Advertising

Promotions

Brand-building Advertising SeminarSantoor : The Challenges Ahead - Self Test 4

Page 46: Brand buildingadvertsingseminar3

Captain Cook Atta - Farmer to Home

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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

Page 48: Brand buildingadvertsingseminar3

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

Page 49: Brand buildingadvertsingseminar3

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!

Page 50: Brand buildingadvertsingseminar3

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

Page 51: Brand buildingadvertsingseminar3

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

Page 52: Brand buildingadvertsingseminar3

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?

Page 53: Brand buildingadvertsingseminar3

Captain Cook Atta: Sugar-coating

How to make the story even more credible?

How to break through the consumer apathy and incredulity?

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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

Page 55: Brand buildingadvertsingseminar3

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

Page 56: Brand buildingadvertsingseminar3

Captain Cook Atta TVC

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Captain Cook Poster

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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

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Brand-building Advertising SeminarCaptain Cook Atta: Self - Test 5

What would have been a more brand focussed message ?

Will the advertising done in 1996 work in 2002 ?

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Seminar Part IV

Consumer Durables

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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

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Key Differences

Consumer Product Consumer Durable- Relatively low value - Relatively higher value

- Repeated purchase everyweek/month

- Infrequent purchase everyfive years +

- Routinized purchasebehaviour

- Extended problem solvingpurchase

- Less persons involved inpurchase

- More persons involved inpurchase

- Less information sought - More information sought

- More emotional decisions - More rational decisions

Page 63: Brand buildingadvertsingseminar3

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

Page 64: Brand buildingadvertsingseminar3

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

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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

Page 66: Brand buildingadvertsingseminar3

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

Page 67: Brand buildingadvertsingseminar3

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.

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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

Page 69: Brand buildingadvertsingseminar3

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?

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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

Page 71: Brand buildingadvertsingseminar3

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

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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

Page 73: Brand buildingadvertsingseminar3

Brand-building Advertising Seminar

FCB GRID for Durables - SELF Test 6

Plot : 21” colour TV

Ceiling fan

Car

Steel cupboard

Scooter

Computer

Page 74: Brand buildingadvertsingseminar3

VOLTAS - MEGALAUNDRETTE: Making Impossible Possible

Page 75: Brand buildingadvertsingseminar3

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

Page 76: Brand buildingadvertsingseminar3

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

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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”

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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

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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?

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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

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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?

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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

Page 83: Brand buildingadvertsingseminar3

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

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Voltas Megalaundrette TVC

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Voltas Megalaundrette Press

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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’

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Brand-building Advertising SeminarVoltas - Self Test 7

Is it possible to identify two more such non-primary benefits for promoting washing machines?

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GODREJ Storwel - Treasuring Memories

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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

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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

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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

Page 92: Brand buildingadvertsingseminar3

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

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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?

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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?

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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

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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

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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

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Godrej Storwel TVC : Wedding

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Godrej Storwel TVC : Mother-to-be

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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

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Brand-building Advertising SeminarGodrej 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?

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Seminar Part V

Services

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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?

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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?

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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’?

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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

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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

Page 108: Brand buildingadvertsingseminar3

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.

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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

Page 110: Brand buildingadvertsingseminar3

Services Advertising Paradigms

Information Driven Image Driven- Introduction of new service - Image of the user

- New pricing plans - Image of the usage occasion

- New offers - Cue type-of-desires fulfilled

- New features - Imply self image

- Rational focus - Emotional focus

•Two classical ways services use advertising

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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

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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

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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!

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Brand-building Advertising Seminar FCB Grid - Services Brands - Self Test 9

Services come in all types

• Basic telephony

• Shares

• Insurance

• Hotel

• Airline

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Bangaram Island Resort : Thank God !

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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

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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

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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

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Selling The Concept To Whom?

Primary target - the sophisticated western tourist

Secondary target - the evolved domestic tourist

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Tourism Hierarchy

Visit to home town / village

Pilgrimage / holy city trip

Visit big city

Visit hill station / beach resort

Visit international big cities

Visit exotic domestic locationsBangaram fitted in here

• Indian tourist moves up the hierarchy of type of holidays

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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

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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?

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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

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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

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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!

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Bangaram Press Ad

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Brand-building Advertising SeminarBANGARAM : Self Test 10

What could be other modes of marketing communication that could have been used by Bangaram?

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Escotel - Building A Cellular Family

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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

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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

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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’

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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?

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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

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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

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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

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Escotel Press Ad 1

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Escotel Press Ad 2

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Escotel Press Ad 3

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Escotel Press Ad 4

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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

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Brand-building Advertising Seminar

ESCOTEL : Self Test 11

Escotel brand advertising’s relevance in todays’ setting?

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Seminar Part V

Corporate Brands

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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

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Corporate Brands in the Branding Structure

Corporate Brand: Tata Tata Tata (Tata) (Tata)

Service / ProductBrand:

Indica ‘Tea’ ‘Salt’ Taj Titan

Line Brand: V2 Residency Raga

Features: Widetread GardenFresh

Iodised

Product: Car Tea Salt Hotel Watches

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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

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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

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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

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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

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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

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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

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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

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Brand-building Advertising SeminarCORPORATE 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

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Wipro - Applying Thought

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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

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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

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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

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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”

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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

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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’

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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

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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.

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Wipro Press Ad 1

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Wipro Press Ad 2

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Wipro Press Ad 3

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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

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Brand-building Advertising SeminarWIPRO CORPORATE: Self Test 13

What could be other methods Wipro could use to build the Corporate brand?

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Tata Lucent: Telecom Revolution

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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

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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 !

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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

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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

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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

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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?

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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

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Tata Lucent Press Ad 1

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Tata Lucent Press Ad 2

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Tata Lucent Press Ad 3

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Tata Lucent Press Ad 4

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Brand-building Advertising SeminarTATA LUCENT - Self Test 14

Could Tata Lucent have used any other platform other than technology/innovation?

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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

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Thank You !