What are brands good for?
- 1. WHAT ARE BRANDS GOOD FOR? BASED ON NIRAJ DAWAR’S MANAGEMENT REVIEW, MIT SLOAN
- 2. A presentation by Shalvi Rathi,MNNIT Allahabad Marketing internship 2015 under Prof. Sameer Mathur,IIM Lucknow www.IIMinternship.com
- 3. The power of BRAND Over time, as consumers come to associate a brand with a specific benefit, the brand acts like a stake in the ground, claiming territorial rights over its value proposition.
- 4. Over the years, brands have made an impact on our minds so strong,that we unconsciously prefer branded over unbranded. Brands have become a part of us. We associate ourselves with them.
- 5. Aggregating customers Reaching large number of people with a promise to deliver a clearly stated benefit that sets it apart from competitors. This is the source of brand power.
- 6. But a new trend has been observed over the years..
- 7. Consumer Disaggregation Under the influence of the information rich environment, the companies are disintegrating the consumers on various levels and are interacting with them at the segment or even individually.
- 8. Many of the strategic and tactical tasks entrusted to brands can now be performed better, less expensively and more profitably at the level of consumer segments.
- 9. But how is disaggregation doing it better? For that we need to examine the following core areas of BRAND MANAGEMENT:
- 13. 1.1.1 Building a Relationship: Earning trust and credibility
- 14. 1.1.2 Communicating a Key Benefit: Staking a Position Company Consumers
- 15. 1.1.3 Charging a Price Premium
- 16. 1.2 Tactical Consumer Relationship
- 17. 1.2.1 Driving Trial and Traffic and Increasing Sales Volume
- 18. 1.2.2 Building the Likelihood of Repurchase
- 19. 1.2.3 Responding to Competitive Moves
- 20. 2.Channel Relationship A dramatic change has been in the remarkable rise of the retailer. The source of retailers’ power today is not just their increasingly large size and concentration; it is in the way they now define their business.
- 21. Retailers argue that the economics of disaggregation favor them and that they have greater credibility in assembling an assortment of brands that makes sense for the consumer.
- 22. Manufacturers VS Retailers Retailers’ understanding of brands has always been different from that of the manufacturer. Retailers used to view well-known brands such as Coca-Cola and Tide as magnets to attract consumers to the store
- 23. 3. Brand Management Organization Brand management systems were designed for an era of mass marketing and are not well suited to making good use of the tidal wave of valuable consumer information.
- 24. Brand-management organizations are proving to be an impediment to the adoption of consumer-level disaggregation initiatives.
- 25. Disaggregation impact on Brand management:
- 26. 1. Organization Structure and Leadership Brand Management Managers or teams are assigned to product categories or brands. The quarterback who brings company resources together to focus on the market is the product or brand manager. Disaggregate Marketing Managers or teams are assigned to segments of similar consumers. The quarterback who brings company resources together to focus on the market is the segment manager.
- 27. 2. Key Business Measures Brand Management Success is measured by volume of sales, dollar sales, market share and brand or product profitability. Disaggregate Marketing Success is measured by customer-level or segment- level profitability and depth of relationship (share of wallet).
- 28. 3. New Product Development and Innovation Brand Management Developing and testing of products based on product-related competencies. Disaggregate Marketing Developing and testing products on the basis of segment needs.
- 29. 4.Key Brand Management Activities Brand Management Brand-led copy development; brand-level promotional activities to boost volume or market share; trade marketing support; coordination with advertising agency. Disaggregate Marketing Segment-driven cross- promotional opportunities; coordination of communication of multiple brands
- 30. Take aways: Aggregating consumers-The traditional environment Disintegrated consumer-The new environment 3 core areas of brand management: Consumer relationship Channel Relationship Brand Management Organisation
- 31. Thank you !