Beruflich Dokumente
Kultur Dokumente
Brand Equity
DECLARATION
I, Ritesh Jagtap, of S.K.SOMAIYA College, of T.Y.BMS (SEM - V) hereby declare that I have completed this project on Brand Equity in the academic year 2012-2013. The information submitted is true and the original to the best of my knowledge.
Brand Equity
Acknowledgement
I would like to extend my sincere gratitude to all those people who have helped me in the successful completion of my project. It gives me immense pleasure in expressing my gratitude to my project guide Mrs.Aparna Jain for giving his precious time and help me in completing my project and, I would also like to thank our Principal Mrs.Sangeeta Kohli and Prof.(Mrs).Aparna Jain (Co-Ordinator), for their valuable suggestion and support during the project and also the library staff providing the books whenever demanded by us. I thank them for being informative and tolerant, I would not have been able to complete my project without sincere guidance and efforts of above mentioned people, whose presence was blessing in disguise for me, which motivated me to complete my project on time. And at last, a special thanks to my parents for their constant support & assistance, to make this project worth presenting before you.
Brand Equity
TABLE OF CONTENTS Executive Summary Introduction Brand - Meaning What can be branded? Brand Power Brand Equity Brand Equity & Market Share Brand Equity V/s In Market Performance (Case Studies) Measuring Brand Equity Increasing Brand Equity Building Brand Equity Managing Brand Equity Brand Image Importance of Brand Equity Laws of Brand Equity Benefits of Brand Equity Dos & Donts of Brand Equity Conclusion Indian Brand Equity Foundation ( IBEF ) CASE STUDIES McDonalds Case Study TATA Case Study
Executive Summary
4
Brand Equity The brand equity of a product cannot be known until & unless the product is branded & has become known in the market. Brand Equity follows branding. Brand equity can be defined in many different ways. For a brand to be strong it must accomplish two things over time: retain current customers and attract new ones. To the extent a brand does these things well, it grows stronger versus competition, and delivers more profits to its owners. Further, the importance of brand equity is that, by understanding how brand equity drives market share, it is then possible to make use of this knowledge in order to grow the market share of a brand. Brand equity does not exist in nature, to be assayed like gold ore in rock. Its measurement depends on how you define it. The measurement can be in terms of customers by way of quality , by financial perspectives to help the financiers. A brand equity is comprised of its loyalty rate & relative price as per our definition thus using the measures given we can determine our brand equity of the product & thus eventually it will help us in getting solutions for increasing brand equity. It is very essential to adopt the correct method to build a brand & managing brand equity . a company who is unsuccessful to do will have to bare losses. There are many great marketers who have helped in giving a guideline to managing brand equity which can be of a great help if the company uses them diligently. Brand Equity is important for three major reasons: 1. Brand Equity creates shareholder value 2. Brand Equity Building is a competency that can be mastered to create competitive advantage 3. Brand Equity management creates an array of growth opportunities for the business
Brand Equity thus it helps in increasing the overall profits of the firm . There are lots of benefits of brand equity if a company can manage & build its brand equity well & realize the importance of doing so. There are laws of brand equity which are involved; if a company follows the law sincerely it will always be in a surplus state. It jus has to take care of the dos and donts of brand equity India too have realized the importance of Brand Equity & thus have established the Indian Brand equity Foundation. (IBEF) In conclusion, brands must be carefully and constantly nurtured over time. This is not a one shot deal; this is something that we have to be in for the long run.
Brand Equity
Introduction
The concept of brand is integral to the success of any given product. But what measures a strong brand or the success of a brand? Is it high market share, popular advertising, effective point of sale, or the ability to command a price premium? But before we get deeper into the subject of brand equity it is necessary for us to know a few things like Meaning of Brand How is a product branded? & what products can be branded? What is the power of a brand?
Thus we will move along the subject after a brief description on the above mentioned questions.
BRAND
Brands are an integral part of today's marketplace. Everywhere one looks there are brands, and strong brands are the most successful products across a wide variety of product categories. The quote `An orange is an orange, is an orange, unless, of course, that orange happens to be a Sunkist', a name 80 per cent of consumers know and trust, gives an indication of what a successful brand does. The two concepts- consumer knowledge and trust - sum up what brands and brand equity develop; those are the issues that are at the heart of the brand and of building a brand that has a good relationship with the customer. The American Marketing Association defines a brand as: 'a name, term, sign, symbol or design, or a combination of these, that identifies the goods or services of one seller or group of sellers and differentiates them from those of the competition.' The notion that a brand is something that identifies the goods from one person, as separate from the goods 7
Brand Equity of another person, is a `historically-based' look at brands. It is the notion of a 'mark' placed on a product to separate it from the rest. A brand however, is much more than this. A brand is a promise a company makes to the customer, of what this product is going to deliver. That is,how the brand is going to fit into the business of the customer. The brand promise is a commitment by the organisation, as making a promise to the customer is something that has to be followed through. It is important that the organisation understands that by making this brand promise, they have to live up to it. The creation of a strong brand is something the company is going to have to commit to, in order to make it work.
Brand Equity built, are aimed at the consumer, i.e. the end-user, rather than just at the intermediary level.. This is also true for devices: Perclose and HP Ultrasound Monitors are examples of brands that have been built in these areas and which haveadded to the power of those products. This is the basic idea of what a brand is, and an indication that brands are important and relevant in different domains. But what is the basis of this importance, and where is the brand's power within the marktplace?
BRAND POWER
There are two real sources of power: One derives from the customers' perspective and whether customers perceive that the brand provides value and meaning. If they do believe it does, then the brand reduces search costs, and this is important to consumers who lead busy lives, and have too many choices to make. Brands help customers by reducing the effort required to choose a good product. Once the initial search is completed by the consumer, and the consumer has built trust and understanding in the brand, this may be carried through to an extended product, which then cuts down the search process in the extended category. Trust in the brand also mitigates perceived risks. For example, if a parent has to go out in the middle of the night to buy a pain-killer for his child, then the name, eg Tylenol, is going to be very helpful in that purchase. They understand what they are getting, and they believe that it is a less risky choice because it is a brand they know. Thus, the brand also helps with interpretation, with processing and the confidence that people have in the choices that they make. The brand also gives other benefits of self-expression. These tend to apply more in the consumer goods, and business-to-business realms. In business-to-business, branding can be of great importance: for example,there is a professional food mixer called the 'Hobart' brand, which is the 'Mercedes' of professional mixers. There is also the issue of providing user satisfaction. The idea that `by using this particular brand I am benefiting, because I know 9
Brand Equity that I'm using the best. I know that I'm using something that has quality and in which I have faith'. From the marketer perspective, it can be seen that brands are very important, because they are an effective way to secure a sustainable, competitive advantage. The brand allows improved identification of the product, and the likelihood of a repeat purchase. Brands are a real way to build customer loyalty. They increase the ability to differentiate products, within a line and apart from competitors. They allow for segmentation, and enable a company to produce different brands for different groups of customers. Brands provide a means for legal protection - and this is an added protection for the particular bundle of attributes on offer. A very important part of branding is the facilitation of new product introduction; the notion of 'extending'. The thing that allows you to extend to a new territory, into a new country, is very often the brand and the faith that people have in that. Finally, the brand offers a source of financial return. The research on the benefits of strong brands, looking across companies, shows that companies gain greater loyalty because of brands. A strong brand makes people purchase it more often. It creates resistance to competitive marketing action. This means that when the competitor comes up with a new campaign, lowers the price, etc, a strong brand will help the customer to stay with you. Larger margins can stem from strong brands. Strong brands gain the ultimate in pricing.Strong brands are able to raise their prices without having as many people switch, but when a strong brand lowers the price, more consumers come in than in the case of the less strong brand. When a strong brand makes a mistake, people treat it with more leniency and with more kindness than they do if it is a mistake from a weaker brand.
Thus it is important for a company to realize what product is important for what kind of customer & in what kind of regions thus the brand preference will differ from person to person, place to place & time to time .Brand Equity determines the value & importance of the product once the product produced is correctly branded & executed. 10
Brand Equity
From the diagram, it is evident that the sources that drive brand equity (brand awareness, consideration and the factors associated with it) will lead to certain outcomes. And the more powerful the sources are, the more significant these outcomes will be. Thus, a strong brand loyalty and ability to command a price premium will lead to resilience against any negative short-term market factors. And this is why brand equity is essential in assessing the performance of a brand: it has the potential to secure the success of the brand against many variable in-market factors. 11
Brand Equity
Brand Equity is defined as follows: Brand equity represents the value (to a consumer) of a product, above that which would result for an otherwise identical product without the brand's name. In other words, brand equity represents the degree to which a brand's name alone contributes value to the offering (again, from the perspective of the consumer)." Brand equity can be defined as three distinct elements: The total value of a brand as a separable asset -- when it is sold or included on a balance sheet. (Brand Valuation) A measure of the strength of consumers' attachment to a brand. (Brand Loyalty) A description of the associations and beliefs the consumer has about the brand. (Brand Description)
Brand Equity as Brand Value Brand value involves actually placing a dollar or rupee value on a brand name. The reasons for doing this are usually to set a price when the brand is sold and also to include the brand as an intangible asset on a balance sheet (a practice which is not used in some countries). It is important to note that there is a significant difference between an "objective" valuation created for balance sheet purposes, and the actual price that a brand may get when sold. A brand is likely to have a much greater value to one purchaser than another depending on the synergy that exists. For acquisitions, the value of a brand to a certain purchaser is often estimated through scenario planning. This involves determining what future cash flows the company could achieve if it owned and took advantage of the brand. Brand Equity as Brand Loyalty
12
Brand Equity Loyalty is a core dimension of brand equity and is a way to gauge the strength of a brand. It represents a barrier to entry, a basis for a price premium, and time to respond to competitive innovations. The variety of measures used for brand loyalty usually is a combination of one or more of the following: Price/demand measures--focus on a brand's ability to command a higher price or make consumers less sensitive to price increases than price increases for competing brands. Behavioral measures--focus on consumers' behavior. Attitudinal measures--focus on general evaluative measures such as 'liking' or 'disliking.' Awareness measures--focus on identifying a brand as being associated with a product category. Brand Loyalty and Equity refer to the notion that some brands are "stronger" or better than others.
Brand description, the final component of brand equity, concerns the actual attributes of the brand. These attributes or associations are major creators of brand loyalty. A wide variety of techniques exist for matching consumer associations with perceptions of a brand. These techniques can be both qualitative and quantitative. They work by getting the respondent to link each brand with pictures or words. These attributes then can be measured with multi-dimensional scaling to position the attributes relative to one another.
13
Brand Equity
14
Brand Equity
Brand equity and market share are not always proportionate. As can be seen from the diagram, the ideal place for a brand to be situated is in the top-right quadrant. This shows that the brand is successful in that it has a strong brand equity and high market share. However, this may not always be the case. It is possible that a brand may have high brand equity, but may not have an accordingly high market share (top-left quadrant). In order to improve the market share of a brand in cases such as this, regard must then be had to instore issues such as display, shelf space, distribution etc. Thus, understanding brand equity plays an important role in that it gives an indication of how a brand's performance can be improved.
Where there is low brand equity and a strong market share (such as the bottom right-hand 15
Brand Equity quadrant), the situation is extremely tenuous. Although the picture may look good owing to the strong market share, the reality is that, with weak brand equity, the product is vulnerable to competitor or other in-market activity. Therefore, measuring only the strong market share does not give the complete picture - brand equity must also be considered, and by improving this, the full potential of the brand can be secured.
Brand Equity of market share, and the sources of brand equity familiarity and brand associations should be examined to determine how share can be built. However, in some cases, BEIs do not correlate with the brands in-market performance, indicating there are factors other than Brand Equity, eg distribution, pricing or targeting, that must be addressed to build share. Strengthen Sources of Brand Equity to Drive Market Share
17
Brand Equity
In the absence of brand equity valuation it could be concluded that Brand As equity must be strengthened to increase market shares. However, Brand A has stronger equity than Brand B, but lower distribution, resulting in weaker market performance. Brand A should maintain its familiarity levels and current positioning but increase its distribution coverage.
Case Study 2: Multinational Personal Care Brand Brand A should strengthen its brand image in Country X & familiarity in Country Y
18
Brand Equity
All key brands in the category across two countries are multinational with relative brand equity indices in proportion to market shares. In both countries, Brand A must strengthen its equity to drive market share. The relative importance of the sources of brand equity for the category in both countries is fairly similar. In Country X, Brand A and B are level on familiarity but A has negative 'old-fashioned' brand associations. Brand A must focus on becoming more contemporary and create a distinct positioning on associations that are
19
Brand Equity strong drivers of brand equity. In Country Y, however, Brand A has very low familiarity and must focus on strengthening its awareness and brand consideration. Case Study 3: Baby Food Brand A should leverage its equity and launch a low price line extension
Equity for Brand A is significantly stronger than for Brand C, but their market shares are comparable. Brand A is priced at a 151% premium over C, which results in a lower brand equity to market share ratio for Brand A. Brand A has strong brand awareness and a distinctive image on attributes that are important in the category, which drive its strong brand equity. However, due to its price premium, its brand equity does not translate into an equitable market share. Brand A can leverage its equity and launch a lower price line extension to compete with Brand C and increase overall brand share. Thus the above three case study examples clearly shows the relevance of brand equity in the market & its relationship with the market factors in accordance with its in market performance affecting its overall market share & companys profits 20
Brand equity does not exist in nature, to be assayed like gold ore in rock. Its measurement depends on how you define it. Brand equity is a concept. It does not exist in nature in the manner that the specific gravity of elements exists as a physical entity. It cannot be assayed like the gold content in a piece of ore. Those who argue that brand equity cannot be measured miss the essential point. Its measurement depends on how it is defined. That definition must have pragmatic value to a marketer of consumer products or services. It should help improve marketing effectiveness and efficiency by providing a yardstick with which to evaluate these things. Also, the definition should reflect the role of the brand in the dynamics of consumer choice in a competitive environment.
21
Brand Equity Loyalty 1. Price Premium: A basic indicator of loyalty is the amount a customer will pay for a product in comparison to other comparable products. A price premium can be determined by simply asking consumers how much more they would be willing to pay for the brand. 2. Customer Satisfaction: A direct measure of customer satisfaction can be applied to existing customers. The focus can be the last use experience or simply the use experience from the customer's view.
22
Brand Equity 5. Perceived Value: This dimension simply involves determining whether the product provides good value for the money and whether there are reasons to buy this brand over competitive brands. 6. Brand Personality: This element is based on the brand-as-person perspective. For some brands, the brand personality can provide links to the brands emotional and selfexpressive benefits. 7. Organizational Associations: This dimension considers the type of organization that lies behind the brand.
Awareness Measures
8. Brand awareness reflects the salience of the product in the consumer's mind and involves various levels including recognition, recall, brand dominance, and brand knowledge and brand opinion.
Brand Equity
There are several possible ways to measure brand equity in financial terms. Brand Equity Index Model Under this model brand equity is calculated by multiplying the relative price of the product by market share in units. The product is then multiplied by a measure of loyalty or durability representing the staying power of the brand. Book or Replacement Values Brand equity is estimated as the replacement cost of the brand over a generic equivalent. A generic equivalent is a product that is sold only on the basis of product attributes. Alternatively, replacement value can be estimated as book value. The challenge with this latter method is that marketing expenditures do not appear on the balance sheet. For either method, replacement cost is difficult to estimate accurately. Market Transactions Brand equity is estimated by identifying comparable mergers or acquisitions. The premiums paid for those companies are associated with the equity in their brands. Data is scarce for comparable M&A's, however, and buyers could have paid more or less than the true value of brands. Incremental Cash Flow from Branding Determining the cash flows of a brand and subtracting the cash flows from unbranded product estimate brand equity. The estimation challenge becomes more difficult as the product of interest belongs to an increasingly differentiated category. For example, it is harder to find a generic equivalent for cars than for cigarettes.
Brand Equity Brand Equity is evaluated by discounting the value of future earnings projections and adding to the value the cost competitors would incur if they duplicated the brand. Price/Earnings Multiple Multiplying current earnings by an estimate for P/E multiple yields an equity price. The critical step is estimating the P/E multiplier. One approach that has been taken is to measure brand strength by a weighted average of seven factors. (Penrose, 1989) Next, the P/E multiplier is estimated using and S-shaped relationship between brand strength and the P/E multiple that is based on similarities to risk free rates, industry rates, and other factors. Value of Avoided Advertising Advertising is a key tool for developing brand strength that management can leverage into equity. Advertising can affect how readily a consumer associates attributes with a brand, what brands consumers include in their evoked set, and other behavioral and perceptual factors. The effect of advertising builds up over time and leads to extending brands with greater ease and less cost. An estimate of Brand Equity is the value of advertising avoided to achieve the current level of performance. To marketers, brand equity = retained customers To a marketer, creating and maintaining brand equity can provide for increased profitability, reduced vulnerability to competition, the ability to charge premium prices, and a platform for introducing new to market products carrying the brand name. There is general agreement among marketing theorists that brand equity is a composite of a brands image, its awareness level, and its level of consumer preference. However, there is no generally agreed-upon definition nor is there an accepted method for calculating the value of brand equity. In the financial community, equity = retained earnings. In the marketing community, a more relevant definition would be: equity = retained customers
25
Brand Equity A brands equity is comprised of its loyalty rate and its relative price The proposed definition of brand equity is the aggregate value of the purchases of customers who buy the brand repetitively. Its magnitude is a function of their frequency of purchase, the extent of repetition and the relative price they pay for the brand. Relative price reflects the perceived value of a brand. A high relative price (over 1.00) indicates that a brands buyers value it more than the others in the category. Conversely, a low relative price reflects weak brand pull. By using relative price in the calculation of brand equity, we introduce the element of perceived value for the money. This approach to equity will credit brands that are capable of commanding premium prices among minority sized segments. Relative price is expressed as the ratio of the average retail selling price of the brand to the category average. For example, for the Canadian whiskey category, a leading brands relative price based on 1992 averages is 1.0; while that of a leading superpremium brand is 1.75. In the Gin category, a major imports relative price is 1.26, a leading domestic brands is .64 and another popular imports is 1.23. Loyalty rate is defined as the percent of category purchases of the brand by people who buy the brand. For example, if Cognac brand A buyers report that 65% of their cognac purchases are of brand A, its loyalty rate would be .65. If people who buy scotch brand C report that in the course of the past year, 40% of their scotch purchases were of brand C, its loyalty rate would be .40. Taking these two dimensions--loyalty rate and relative price--we propose the equation: EQ = L x Prel where EQ = Brand Equity, L = loyalty rate and Prel =relative price. By giving equal weight to each of the variables, the formula allows for the use of the equation as a barometer of marketing effectiveness, in that increases in loyalty rate or relative price can be produced by improvements in marketing effectiveness or efficiency
26
Brand Equity
INCREASING BRAND EQUITY We believe this approach to defining and measuring brand equity helps to focus marketing strategy and make it easier to choose among alternatives. If, for example, a major goal is to increase brand equity, the marketing strategies and tactics to be used must either increase brand loyalty or pave the way for a price increase while not losing a significant number of customers. Experience shows that brand loyalty can be strengthened in one of several ways: increasing continuity of purchase via such techniques as frequent flier or frequent buyer programs, members clubs, continuity promotions that reward cumulative purchases; affinity programs, that create identification between the users of a brand and some recognizable organization, cause, lifestyle or movement. Marlboro uses such programs prominently in its brand promotions; brand differentiation, that creates real or perceived differences between the brand and its competitors; presence marketing, that increases the visibility of the brand as well as its salience, so that customers have less opportunity to even consider alternative brands when they are in the marketplace for the product. Anheuser-Busch has used this strategy effectively to keep its Budweiser brand at the top of the category for years. Increasing price can be an effective strategy if a large enough number of the brands customers believe it will deliver value at the higher price. Weve known cases where increasing price has actually help to build business. In one case, the managers of a small little known spirits brand raised its price as a way of committing brand suicide. They were amazed and delighted to see the brands sales increase shortly thereafter. Thus emboldened, they raised the price again and saw sales continue to rise. Today this brand is reported to be the biggest profit contributor to the companys stable and research shows its user base to be very loyal.
27
Brand Equity Grey Poupon was successfully positioned atop the seemingly mundane mustard category by a combination of premium pricing and adroit advertising. Its equity is likely to be much greater (on a per case basis) than its larger selling rivals. Trading up can be an effective way to increase price while protecting a brands original user base. This is accomplished by introducing a justifiably more expensive line extension while continuing to offer the parent product at the same price. The key word is justifiably, so that the new entry does not denigrate the quality of the parent. In sum, we believe that a brand is a promise made to its customers and to its owners. Promises kept yield loyal customers and will produce a steady stream of profits for years to come. Brand equity is at its root the aggregate value of the future purchases of its customers. And that is what brand marketing must maintain and grow.
Brand Equity Name awareness is a critical factor in achieving brand success. Companies may spend vast sums of money and effort just to attain recognition of a new brand. But getting consumers to recognize a brand name is only half the battle in building brand equity. It is also important for the company to establish strong, positive associations with the brand and its use in the minds of consumers. The first step in building brand equity is for the company to define itself and what it hopes to represent for consumers. The next step is to make sure that all aspects of the company's operations support this image, from its product and service offerings to its marketing programs to its customer service policies. When all of these elements support a distinctive image of the company and its products in the minds of consumers, the company has established brand equity.
Brand Equity profits. Many programs that are implemented to boost short-term sales or market share may be detrimental to the long-term viability of the brand. For example, Proctor & Gamble has started to test market a program to move away from using coupons to a system of every day low prices. This is, in part, because consumers may become loyal to the coupon or promotion and not to the product itself. Constant promotional programs erode margins and eventually brand loyalty. Ultimately, brand equity is damaged. In 1988, Graham Phillips, Chairman of Ogilvy and Mather Worldwide, said, "I doubt that many would welcome a commodity marketplace in which one competed solely on price, promotion and trade deals, all of which can be easily duplicated by competition. This would lead to ever decreasing profits, decay, and eventual bankruptcy. About the only aspect of the marketing mix that cannot be duplicated is a strong brand image." This quote clearly demonstrates the importance of managing brand equity. In many categories, brand equity is the only point of differentiation between products. Many people may think that building and maintaining brand equity is solely the responsibility of brand managers, but it is actually a cross-functional team effort. Financial managers are important because they can fully analyze the costs of maintaining and building brand equity. For example, launching a new brand is extremely consuming in terms of money and time. It may be more cost effective to extend a current brand than introduce a new brand. Marketing research is critical for many obvious reasons. It develops most, if not all, of the research and data that companies will use for deciding strategic issues. Marketing research can also help determine how brand equity is actually measured. Once a definition of brand equity is established, the responsibility of tracking According to Keller, to maximize long-term brand equity, managers must take 10 key steps: 1) Understand brand meaning and market appropriate products in an appropriate manner. 2) Properly position the brand. 3) Provide superior delivery of desired benefits.
30
Brand Equity 4) Employ a full range of complementary brand elements and supporting marketing activities. 5) Embrace integrated marketing communications and communicate with a consistent voice. 6) Measure consumer perceptions of value and develop a pricing strategy accordingly. 7) Establish credibility and appropriate brand personality and imagery. 8) Maintain innovation and relevance for the brand. 9) Strategically design and implement a brand hierarchy and brand portfolio. 10) Implement a brand equity measurement system to ensure that marketing actions properly reflect the brand equity concept.
Brand Image
Images evoked by exposure to a named brand like brand personality, brand image is not something you have or you don't! A brand is unlikely to have one brand image, but several, though one or two may predominate. The key in brand image research is to identify or develop the most powerful images and reinforce them through subsequent brand communications. The term "brand image" gained popularity as evidence began to grow that the feelings and images associated with a brand were powerful purchase influencers, though brand recognition, recall and brand identity. It is based on the proposition that consumers buy not only a product (commodity), but also the image associations of the product, such as power, wealth, sophistication, and most importantly identification and association with other users of the brand. In a consumer led world, people tend to define themselves and their Jungian "persona" by their possessions. According to Sigmund Freud, the ego and superego control to a large extent the image and personality that people would like others to have of them. Good brand images are instantly evoked, are positive, and are almost always unique among competitive brands.
31
Brand Equity Brand image can be reinforced by brand communications such as packaging, advertising, promotion, customer service, word-of-mouth and other aspects of the brand experience. Brand images are usually evoked by asking consumers the first words/images that come to their mind when a certain brand is mentioned (sometimes called "top of mind"). When responses are highly variable, non-forthcoming, or refer to non-image attributes such as cost, it is an indicator of a weak brand image
Brand Promise Healthy Hair Enhanced self-image through skin care Fun, family and entertainment Self realization through athletic activity
These brands have created long-term, consumer-preferred franchises that deliver reliable streams of revenue and profit to their brand owners.
32
Brand Equity
2. Brand Equity Building is a competency that can be mastered to create competitive advantage Few brands manage their Equity consistently and at every consumer touchpoint. Even fewer link their Brand Equity to marketplace and financial performance indicators. Brand Equity often becomes a facet of the brand that is misunderstood and underused. Developing a process to consistently measure, plan and develop Brand Equity is the true path to strong brands and sustainable competitive advantage.
3. Brand Equity management creates an array of growth opportunities for the business The process of defining the Brand Vision requires intense consumer interaction. The very action itself reveals the opportunities for the brand both within the current business category and in new categories and businesses. For example, Doves Equity of enhanced self-image through skin care enabled the brand to extend from soap into moisturizer and other beauty care categories (where growth and margins are higher). Virgin's Equity of a Good deal for consumers enabled the brand to extend to categories as diverse as insurance, phones, airlines, and even wedding
33
Brand Equity
34
Brand Equity The Law of Quality: Though quality is essential to the survival and growth of any brand, the fact remains that brands are not built by quality alone. The perception of the brand is as, if not more significant than mere quality. It is here that Titan "scores". As mentioned previously Titan more or less owns the word "quality" in the minds of the consumers, thereby implying that it is perceived as a quality product. Thus, it's actual quality, as well as it's perception of being a quality product combine to work towards building the strength of the Titan brand. The Law of the Name: In the long run, a brand is nothing more than a name. The difference between products is thus not so much between the products, as it is between their names, or perceptions of the names. Seeing as how its name is perhaps the most important element of a brand, we feel that this point warrants a slightly more in-depth discussion.
Joe Marconi identifies 4 major factors to be kept in mind while naming a brand:
1) It should suggest stability and integrity. 2) It should avoid negative imagery. 3) It should avoid acronyms, the use of which Ries and Trout call "the no-name trap". (Perhaps the sole exceptions to this are BMW & IBM). 4) It should avoid anything-generic sounding (General, National, Standard, etc), as this would not help in defining a brand's personality.
Let us see to what extent Titan satisfies these conditions. First of all, the name 'Titan' itself comes from Greek mythology, and symbolizes greatness, grandeur and power. Remember the Titanic? It is easy to pronounce, as well as to remember. One only has to compare its name to that of its biggest competitor, HMT to see how well thought out the name Titan is. HMT, while being an acronym, expands out to 'Hindustan Machine Tools', a generic name if we ever heard one. Asides from all these differences, the question of 35
Brand Equity perception arises. A watch is a product, the purchase of which is perhaps driven more by perception than anything else. What sounds more classy and sophisticated? Titan or Hindustan Machine Tools? The Law of the Company: Brands are brands, and companies are companies. There is a difference. Titan is owned by the Tata Group, who though highly regarded in Indian industry are associated more with heavy industries such as steel and truck building, than with watch making. Chances are that no one would buy a Tata watch (its name invoking the same, if not greater reaction than an HMT). People would, however buy a Titan. The Law of Siblings: There is always a time and a place to launch a second brand, but when this is done it should be ensured that both brands have separate and distinct identities. Each brand should be kept unique and special. When Titan decided to diversify into the jewellery segment, they did not call their new brand 'Titan Jewellery', inspite of the high standing of the Titan name in the minds of the Indian consumers. To do so would be to undermine the power of the Titan brand; this is that of being watch experts. Hence, the jewellery was called Tanishq. The Law of Shape: A brand's logotype should be well designed, in order to fit the eyes. Visual symbols (again with the possible exceptions of Nike's "swoosh" or Mercedes' 3-pointed star) are highly overrated. The meaning lies in the words, not the symbol. The Titan logo, though well recognizable (please refer to the cover page in the rare event that you do, in fact actually NOT recognize it) is always accompanied by the words "TITAN" in a clear, crisp typeface-denoting power (through the use of capital letters) and class at the same time.
The Law of Color: A brand should use a colour and typeface that is the opposite of its major competitor. For example, while Coca-Cola stands for red and appears in running handwriting, Pepsi stands for blue and appears in capital, modern looking 36
Brand Equity letters. Similarly, while HMT appears in small silver lettering, Titan appears in capital letters, and is usually in black. The Law of Borders: Finally, a brand should know no borders or boundaries. With a name that stands for Hindustan Machine Tools, HMT would be hard-pressed to sell a single watch outside Indian Territory. Such is not the case with the more globally oriented name, Titan. As mentioned previously, Titan is sold in over 40 countries through marketing subsidiaries in London, Singapore and Dubai.
Thus far, we have restricted ourselves to issues exclusively concerned with the role of the brand in building brand equity. The fact however remains that brand building is an exercise that requires effort in a number of ways, many of them unrelated to the actual "brand" as such. These could be related to the product's image, the company's image, public perception of the parent company, and efficiency of promotional measures, to name but a few.
37
Brand Equity increasing market share does not increase brand equity, whereas increasing brand equity invariably leads to increased market share.
Don't neglect Public Relations: Public Relations, or PR, are vital to the success and survival of any brand. Unfortunately, its value as a brand building tool has more often than not, been undervalued. Newsletters, event and entertainment sponsorships, and other forms of PR help to define the personality of a company or brand, positioning it as a good corporate citizen, and someone nice to do business with. In keeping with India's obsession with cricket, Titan has often sponsored cricket tournaments, including the now legendary 1997 Titan Cup. Titan also sponsors a number of popular television programmes, a prime example of which is Star World's "The Practice".
38
Brand Equity Promotions ought to be used to create recognition and build brand loyalty. Needless and irrelevant contests tend to shift the customer's attention from the product being promoted to the prize being offered (be it a trip to the US or a new car). A better (and far less expensive) way to promote a brand would be to allow it to be used by other companies in their promotional offers. Titan is currently being offered by both Outlook magazine and Welcome Award (the privileged customer programme of the Welcome Group chain of hotels) in their various promotional offers. The most sensible and effective forms of promotions are measures such as establishing a privileged customer club offering customer points redeemable for discounts and rebates. Titan has their own privileged customer club, Titan Signet, which has an impressive 1.6 lakh members.
Always remember the USP: A USP (Unique Selling Proposition) is not only what gives the customer a reason to buy the brand, but is also what helps him distinguish the brand from its competitors. Titan's USP is two fold, and can perhaps best be described in six words. "An Indian company offering international quality". This works for Titan in two ways. First of all, it's emphasis on 'international quality' successfully negates it's major Indian competitor, HMT, who is still perceived as a company offering solid and reliable, yet singularly unstylish and staid looking watches. Secondly, with the plethora of foreign brands available in the country today, Titan emphasis on being Indian enables it to effectively meet their threat. Interestingly, while Titan has never actively promoted the fact that its parent company is the Tata Group, at the same time it has never really done much to hide the fact. Thus while capitalizing on the Tata name; it has built its own identity as an Indian brand offering high quality watches at prices significantly below those of comparable foreign brands.
Brand Equity
Being the first entrant in any category earns pioneer status for a brand and gives it the advantage of being the probable market leader. Such was the case with HMT. However with its emphasis on its USP and aggressive advertising, Titan convinced the market that it produced the better product and thus destroyed HMT's near monopoly of the Indian watch market.
Expand sensibly:
Extensions should always be logical and market driven and not mere "product explosions". As the market environment changes with the addition of say, greater competition, or changing customer wants and perceptions, brand extension should be undertaken. It should not, however be undertaken arbitrarily. When Titan entered the market in 1987, its main competitor was HMT, a company offering reliable and economically priced watches. Titan thus started out being a company offering a wide variety of models, most of which were priced economically, with the added USP of being a more stylish alternative to HMT. As times changed, however, so did Titan. With the growing entry of foreign brands into the market, Titan continued to introduce sub brand after sub brand to meet every new challenge. With the entry of the "high performance" sports watch brands in the form of Tag Hauer, Omega and Breitling, Titan introduced it's own line of chronographs priced significantly lower than the competition at a mere Rs. 5000-6000. Similarly, to counter the entry of foreign, youth oriented "style" brands such as Esprit and Swatch, Titan introduced the 'Fast Track' sub brand, again priced extremely competitively.
Conclusion
40
Brand Equity
Strong brands provide value and have a variety of benefits. To customers, brands provide direction, they provide reassurance. Brands reduce risks and they provide a way to self-express. To marketers, brands provide a competitive advantage. They provide the means and the way of differentiation. Brands provide a means for segmentation for different markets, and a point of entry into new categories that are going to bring greater financial return. Strong brands are based on a relevant differentiated position. Without that, you cannot build a strong brand. A variety of associations are linked to a strong brand. Sometimes we can get carried away, saying This is the most important thing to customers; this is what we should link', and we forget there needs to be more than any one single association. If you look at strong brands, they have a couple of very good sources of strength and a bigger picture of what the brand means and how it is relevant to the customer. The associations that are built for the brand need to be based on careful and thorough analyses of the customers, of the competitors and of the company. It must be emphasised that the organisation must be committed to the brand, both philosophically and financially. Only a small portion of brand efforts will have a payoff in the short run. In fact, much of the process of brand building will cost the organisation in the short run. Branding is a long-run proposition that the organisation must be committed to in order to live up to the brand promise that is made. Strong brands arise from the thorough integration of the brand throughout the entire marketing mix. The three Cs of branding, are Consistency, Clarity and Convergence. Everything has to work together to build identified brand content. Companies work hard building the strength of their brands - it is critical to the ongoing brand management process to have meaningful and actionable data-driven measures of these efforts. Building a brand, cultivating its strengths, pruning its weaknesses, and making it more valuable to its owners is the bottom line job of marketing. Everything marketing does should ultimately work in concert to make a firm's brands more valuable. There are many 41
Brand Equity different tactics and strategies that go into strengthening a brand name: advertising, promotions, public relations, and research and development, to name a few. While companies use these and many other methods to strengthen their brands' positions in increasingly competitive markets, how can they measure the return on this work? More precisely, how can a company determine the worth of one or any its brands? Putting the brand to a true test, the company can better judge how much that brand is worth and how much opportunity for improvement might exist. Thus it is essential to determine the brand equity of the product in order to acquire solutions to the above mentioned questions.In conclusion, brands must be carefully and constantly nurtured over time. This is not a one shot deal; this is something that we have to be in for the long run.
Brand Equity
One and a half decades into the process of economic liberalization and global integration, India, today, is well established as a credible business partner, preferred investment destination, rapidly growing market, provider of quality services and manufactured products; and, stands on the threshold of years of unprecedented growth. Achievements. Successes. Growing consuming class driving demand. Vibrant democracy. People who dare to dream. Indians and India have a story to tell. IBEF collects, collates and disseminates accurate, comprehensive and current information on India. In the overall nation branding campaign for India, IBEF plays three well defined roles:
Forum for brand vision development Co-ordinator of strategic marketing initiatives India Resource Centre
CASE STUDIES
43
Brand Equity
What is McDonalds? McDonalds is the worlds largest and best-known global leaders in food service retailing, with more than 27,000 restaurants serving more than 43 million customers a day in 119 countries. Approximately 80 percent of McDonalds global restaurants are owned and operated by independent franchisees. Yet on any day, even as the market leader, McDonalds serves less than one percent of the worlds population. McDonalds out-standing brand recognition, experienced management, high-quality food, site development expertise, advanced operational systems and unique global infrastructure position it to capitalize on global opportunities.
How it all started: Dick and Mac founded the first McDonalds restaurant in 1937 in a parking lot in California. It did not serve burgers, had no happy meals or a playground. The most popular item on the menu was the hotdog and people ate either on outdoor stools or in their cherished new autos while being served by teenage carhops. MR. RAY KROC (1954) first franchisee appointed by Mac and Dick McDonald in San Bernardino, California. The first McDonalds built in 1940 by the McDonald brothers (Dick and Mac). Ray Kroc was the founder of the McDonalds Corporation. First days revenues-$366.12 and the McDonalds Corporation was created. Quality, Service, Cleanliness and Value (Q.S.C. & V.) became the company motto. The 100th McDonalds 44
Brand Equity opened in Chicago. Ray Kroc bought all rights to the McDonalds concept from the McDonalds brothers for $2.7 million. McDonalds now has over 20,000 stores in 90 countries. The company claims it serves 29 million people a day and that a new store opens somewhere in the world every seven hours.
Offering A brand is an offering from a known source. McDonalds carries many associations in the minds of people: hamburgers, fun, children, fast food, Golden Arches. These associations make up the brand image. Attribute A Clean Fast Food Brand which tastes the same any where you eat in the World.
45
Brand Equity Benefits You dont have to stay hungry for a long time. McDonalds ready to eat available Values The World leader in Fast Food Restaurants. Culture The brand represents culture of social gathering for families and groups. Personality The World leader, A giant M. User All kinds of consumers buy McDonalds products irrespective of age, sex all over the world. One can see all types of personalities in the McDonalds restaurant. Strategy Of The Management In The Whole Brand Life Cycle Our observation of McDonalds Brand tell us that McDonalds as a Brand is in its growth stage whereas, in countries like America and West Europe it is on its way towards maturity. Following is the stage wise development and growth of McDonalds Brand. 1940s (Introduction Stage) Despite being a time when there was a hamburger store or a food franchise on every corner in Americas cities, the business that Ray was so fascinated with had customers lining up to buy hamburgers, fries and milkshakes. McDonald brothers in their operation of business found that they had developed a crude but effective method of processing food in seconds. This fast food production, combined with low prices and a limited menu was a run away success. 1950s (Development of McDonalds as a Brand)
46
Brand Equity McDonalds success was stage on an illusive dream, which Mr. Ray Kroc had. Despite being a time when there was a hamburger store or a food franchise on every corner in America's cities, the business that Ray was so fascinated with customers lining up to buy hamburgers, fries and milkshakes. This fast food production, combined with low prices and a limited menu could be duplicated across the country, and he wanted to be the one to do it. Mr. Ray Kroc felt that the operations of McDonalds could be replicated in every franchise. He began developing exact specifications for the ingredients so that the taste and cooking times would be consistent. He then went on to develop precise systems that could be documented to cover every aspect of how the business should be run from cooking a burger and serving a customer, to washing the floor and emptying the bins. Ray also knew that his systems needed to extend beyond the internal operations of the business, and into the external design of the buildings and how they were presented and maintained. This cloned and consistent style would maximise the value of the McDonalds brand through the buildings appearance. Ray was so committed to perfection, that he set up his own laboratory to develop the perfect fries. This was a revolutionary experience for the hamburger industry, and was not seen by many as being particularly necessary, including his business associates. This was the success in selling franchises (McDonalds early establishment as a Brand) 1960s (The real growth of McDonalds Brand took off from here) Ray Kroc bought all rights to the McDonald's concept from the McDonald's brothers for $2.7million in 1961.Ronald McDonald made his debut (used as an Advertising tool) in 1963 which saw a new image on McDonalds brand building in the consumers mind in the form of a human element in the McDonalds brand, and provided an instant link with children. The rest as they say is history. There would be barely a man women or child in the developed world who has not tasted a McDonalds product. Ray Krocs systems were so highly developed and repeatable that a customer could eat a McDonalds product,
47
Brand Equity regardless of which country they were in, and still experience the same taste and service in a restaurant that was identical to any other in the world. The growth of this brand has led to McDonalds becoming a global brand example of that is in 1996; McDonalds overtook Coca-Cola as the best known brand in the world McDonalds has 48 percent of the globally branded quick service restaurants and 63 percent of sales. List of acquisitions by McDonalds that helped further growth in the market. Owns Donatos Pizza with 148 outlets from Michigan to Georgia 23 units of coffee bars in London called Aroma Cafe Chipotle Mexican Grill, a fast growing chain of 56 burrito shops 859 Boston Markets Equity stake in food.com
Another proof of that is our Indian market, which has provided a good boost to
Brand Equity The opportunities for McDonalds are truly global with a policy of continuous innovation of product and service spreading the enormous depth and breadth of the McDonalds brand, which is being well received around the world.
Brand Equity of McDonalds In terms of corporate valuations McDonalds is valued at approx. US$39 billion. In Marketing terms:
Brand Awareness The American awareness of McDonalds as a brand is very high. Today McDonalds is a Global name, famous for its delicious burgers and mouth watering French fries. The customers awareness of the brand goes back to the earlier days when the McDonalds brothers had decided to start off with the restaurant. The consistent taste of the Mac meals is one of the reasons for uniformity in the product. Today the brand is well known for its affordability and high quality standards. Over the years the company has managed to live upto its image by providing prompt service unfailingly, constantly improving the standards of its burgers and providing entertainment to its target customers mainly children who are always in the lookout for a fun filled hour with Ronald McDonald the McDonalds mascot. These critical improvements have helped the brand to be popular among the millions who visit the joint for a quick bite. One of the major recallers of the brand is the golden arch of the McDonalds logo. The red sign with the golden M is a symbol synonymous with burgers. In a market like India, the brand is still in its infant stage. Launched in 1996, the company has done quite well for an initial beginning. Catering to a customer base which is used to eating the many delicacies offered by the Indian cuisine which is spicy unlike the 49
Brand Equity McDonalds burgers, the company has definitely faced a few rejections from the consumer, but it was not long before the brand took over the hearts of the younger customers, mostly the average urban teenagers who found the place very happening and ideal for an evening with friends.
Perceived Quality In a recent survey conducted by a leading agency, it was found that in India, although most of the McDonalds found the pricing of the product quite high, but the perceived quality of the products were rated as high as 4 or 5 out of a scale of 5. This shows that the company has been able to live upto its high quality standards set through operational excellence. Brand Loyalty From a recent survey it has been found that an average American has visited at least one of the many outlets in a city at least once in the last year. This can be directly related to the brand loyalty of the customer. An average McDonalds consumer visits the store at least once a week.
50
Profile Of TATA Motors Established in 1945, Tata Motors is India's largest and only fully integrated automobile company. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Since 1969, the company's products have come out of its own design and development efforts. Today Tata Motors is India's largest commercial vehicle manufacturer with a 59-per cent market share and ranks among the top six manufacturers of medium and heavy commercial vehicles in the world.
Area of Business
Tata Motors' product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles for goods and passenger transport. Seven out of 10 medium and heavy commercial vehicles in India bear the trusted Tata mark.
51
Brand Equity
Environmental Responsibility
Tata Motors has led the Indian automobile industry's anti-pollution efforts through a series of initiatives in effluence and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. All its products meet required emission standards in the relevant geographies. Modern effluent treatment facilities, soil and water conservation programmes and tree plantation drives on a large scale at its plant locations contribute to the protection of the environment and the creation of green belts. Exports Tata Motors' vehicles are exported to over 70 countries in Europe, Africa, South America, Middle East, Asia and Australia. The company also has assembly operations in Malaysia, Bangladesh, Kenya, South Africa and Egypt.
52
Brand Equity
Brand Equity production of Indica commences in full swing. Launch of CNG buses.Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its segment. Exits joint venture with Daimler Chrysler. Unveiling of the Tata Sedan at Auto Expo 2002. Launch of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover of the UK. Launch of the Tata Safari Limited Edition. The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. Tata Motors unveils new product range at Auto Expo '04.Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement. Indigo Advent unveiled at Geneva Motor Show. Tata Motors completes acquisition of Daewoo Commercial Vehicle Company. Sumo Victa launched. Indigo Marina launched. Tata Motors lists on the NYSE.
Brand Equity About four years back, some amount of the Tata brand value was estimated at Rs 3,800 crore. The company has extrapolated that to arrive at the Rs 10,000 crore figure - and that a couple of years back.
Consumer perception
Tatas set to unleash global branding drive The $11.2 billion Tata Group is planning to unleash a major global branding initiative. Tata Sons, the group has selected some key foreign markets to introduce a brand building drive to give effect to the groups vision of becoming a major global brand. Tata Motors has forayed into the UK markets, TCS has a presence in US and south-east Asian countries. The Tata group has fared well on the twin brand values of emotionality and relevance. The perception that Tata group companies are not as aggressive as competitors is gradually changing. It is now also perceived as a more youthful brand, despite being a 100-year old brand. Tata Motors is known as a low-cost manufacturer, not necessarily a high-quality one. The company is looking to provide value for moneyor more car per car. In fact, Indica has never been rated highly by JD Power, which conducts consumer-based surveys. In its latest 'initial quality study' in December '03, Indica was placed fifth, second from the bottom, among the premium compact cars with 237 problems per 100 vehicles. Wagon R topped the list with 118. A caveat though: this survey takes into account actual problems as well as perceptions. Another indicator: for the UK market, the City Rover has been spruced up quite a bit. Apart from cosmetic changes like a new 55
Brand Equity bumper and grille, it has different engine diagnostics and comes with airbags and antilock brakes. In addition, the City Rovers are petrol-driven, unlike the diesel models that form an overwhelming share of Tata Motors' India sales. But even the diesel models of Tata Motors are in for fresh competition. Hyundai has launched the diesel version of Accent, which it claims is superior as it has the latest microprocessors-based common rail direct injection (CRDi) technology that supposedly increases fuel efficiency and reduces pollution. It also plans to have diesel options for its forthcoming compact model, Getz, as well as Santro. Maruti, which imports the engines for its diesel Zen and therefore doesn't find it viable to make more than 500-900 vehicles a month, is also thinking of tying up with a global manufacturer for diesel technology.
Brand Equity In recent years, the group has designed a common logo, centralised its media buying and PR operations, devised a system for group companies to pay a fee for using the Tata name, and has aligned itself with vehicles that contemporarise the brand and connect with the youth. The group has committed Rs 300 crore over the next five years to target the younger demographic. Towards this end, the Brand Equity Business Promotion Fund was created about four years ago; a Tata-name company, like Tata Steel, pays 2.5 per cent of its revenues to the fund, and a non-Tata name company, like Voltas, pays 0.01 per cent. The money is used to consistently enhance the brand image. The group also undertook extensive research a few years ago; every six months, a brand track study, by Pathfinders, tracks brand perception vis--vis five other major corporate brands, among 5,000 respondents in 13 cities. The study plots the Tata brand against the others on two metrics, affinity (how close the brand is to the consumer, and how warmly it is perceived) and relevance (how relevant the brand is to the consumer's life). On both parameters, the Tata brand has risen steadily in value since December 2000, when the study was first commissioned, and continues to be ahead of the other brands. Two of the primary findings of the research were that the Tata brand is not perceived as youthful, and that it is not into technology in a big way. So there is a concerted effort to connect with the youth, and to communicate its involvement with technology. According to TATAs young people are the "consumers, stakeholders and employees of tomorrow," and to connect with them, the group uses contemporary media such as the Internet and SMS, and events and personalities.Its stake in the Barista chain, for example, provides a popular venue to connect with the desired demographic, and the group has done interactive sessions with ace driver Narain Karthikeyan, a brand endorser, at sports bars and pubs in some cities. Their research indicated that the three most effective vehicles to reach the youth are movies, music and entertainment, and sports. Movies were ruled out - although Marg, a Tata group company makes documentary films - but the group has associated with select 57
Brand Equity music and entertainment events: it has sponsored a Shakti concert and one dedicated to Bob Dylan, and considers them big successes. The group also signed a three-year title sponsorship deal for India's only ATP tournament, beginning 2002.It also signed on India's F-1 aspirant, Karthikeyan, to endorse some of its brands, including Titan's Fastrack. The $400,000 Tata Open provides a platform for a host of Tata products and services, including Titan, the Taj group of hotels, Tata Indicom and Trent's Westside.They are trying to exemplify the `Tata One World' concept more and more, so any marketing activity is thus an integrated effort. A combination of Tata and MTV is undertaken in order to make themselves relevant to the younger generation.The two have a deal to do some programmes on the Tata Open tournament. In tennis and motor racing, the group has found very strong personality matches according to TATA. Formula Motor racing is about speed, energy, aggression, and fighting against tough international competition; tennis, too, is about speed, dynamism, aggression, and slugging it out against international competition in the tournament. Another focus is B-school campuses, where the group is emphasising greater interactivity with students, and raising its profile as an employer. It sponsors the annual intercollegiate event, Confluence, in IIM-A, and the Business Leadership Award; its senior managers also go on lecture tours and present case studies of group companies as this is where they are going to get our future employees thus ensuring the Tatas are in the consideration set, along with the consultancy firms and foreign banks. In ORG-MARG's recent `Campustrack' survey of most preferred employers on B-school campuses, Hindustan Lever, Infosys and McKinsey headed the list of 48 corporates; Titan, Tata Engineering and Tata Steel were among the companies at the other end. However the Campus Recruiter Index for the Tata group has improved since the last time, particularly for TCS, Tata Administrative Services and Tata Engineering, according to ORG-MARG.
58
Brand Equity The Tata group was rated highly on the parameters of "good standing in the market" and "large-sized company," and found to lag in the aspects of compensation/salary package, and international postings and overseas travel. "By all accounts, the image of a youthful, techie corporate seems to belong to TCS and, to some extent, to Tata Administrative Services. There is still some way to go before we can say this about the group as a whole," says ORG-MARG. Internally, too, there has been a concerted effort to create a sense of synergy and belonging among the group companies. On the group's Intranet, there are forums for secretaries, HR managers, CFOs and others to share knowledge and best practices across companies and regions. The flip side of the coming together of the companies is that a negative fallout, like the Tata Finance debacle, can impact the image of the other group companies. On the communications front, the group has integrated its activities: Media Edge is the group's AOR for media buying, and Vaishnavi Communications handles PR for the largest group companies. Brand experts say the Tata group is on the right track: today, the brand stands for trust and integrity, optimism and a dogged spirit to move ahead. Although the group has been seen as an ageing patriarch, or a fuddy-duddy one But, with its increasing consumer focus, its realisation of the value of the Tata brand name, and its new product and service initiatives, there is "a sea-change from the `we also make steel' days: this is the new energy that is driving the group forward. Indeed, the company's Web site informs: "The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is the route to sustained growth and long-term success."
59
Brand Equity
Bibliography
While working on this project I visited some of the companies and they gave me some information. However to support the same I have done some of the research work from the following: Text Books: Managing Brand Equity David A Aaker Strategic Brand Management- by Jean-Noel Kapferer Brand Equity & Advertising - edited by David A. Aaker, Alexander L. Biel
Newspapers and Magazines. Times of India Supplement Brand Equity Economics Times Business Standard Brand Equity ( magazine )
60
Brand Equity
Weblography
www.brand-equity.com www.businessweek.com/innovate/brandequity/ www.netmba.com/marketing/brand/equity/ www.ibef.org www.economictimes.indiatimes.com www.biz-community.com www.biz360.com
Also visited websites of McDonalds & Tata for case study research.
61