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product line, or brand. It seeks to increase the product's perceived value to the customer
and thereby increase brand franchise and brand equity. Marketers see a brand as an
implied promise that the level of quality people have come to expect from a brand will
continue with future purchases of the same product. This may increase sales by making a
comparison with competing products more favorable. It may also enable the
manufacturer to charge more for the product. The value of the brand is determined by the
amount of profit it generates for the manufacturer. This can result from a combination of
increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or
reduced or more efficent marketing investment. All of these enhancements may improve
the profitability of a brand, and thus, "Brand Managers" often carry line-management
accountability for a brand's P&L profitability, in contrast to marketing staff manager
roles, which are allocated budgets from above, to manage and execute. In this regard,
Brand Management is often viewed in organizations as a broader and more strategic role
than Marketing alone.
The annual list of the world’s most valuable brands, published by Interbrand and
Business Week, indicates that the market value of companies often consists largely of
brand equity. Research by McKinsey & Company, a global consulting firm, in 2000
suggested that strong, well-leveraged brands produce higher returns to shareholders than
weaker, narrower brands. Taken together, this means that brands seriously impact
shareholder value, which ultimately makes branding a CEO responsibility.
The discipline of brand management was started at Procter & Gamble PLC as a result of
a famous memo by Neil H. McElroy.[1]
Contents
[hide]
• 1 Principles
• 1.2 Β ρ α ν δ
Αρ χ η ι τ ε χ τ υ ρ ε
• 2 Techniques
• 3 Χηα λ λ ε ν γ ε σ
• 4 Σε ε αλσ ο
• 5 Ρεφ ε ρ ε ν χ ε σ
[edit] Principles
A good brand name should:
• be easy to pronounce
• be easy to remember
• be easy to recognize
• be easy to translate into all languages in the markets where the brand will be used
• attract attention
• suggest product benefits (e.g.: Easy-Off) or suggest usage (note the tradeoff with
strong trademark protection)
• be super attractive
• stand out among a group of other brands - like that one compared to the others
[edit] Techniques
Companies sometimes want to reduce the number of brands that they market. This
process is known as "Brand rationalization." Some companies tend to create more brands
and product variations within a brand than economies of scale would indicate.
Sometimes, they will create a specific service or product brand for each market that they
target. In the case of product branding, this may be to gain retail shelf space (and reduce
the amount of shelf space allocated to competing brands). A company may decide to
rationalize their portfolio of brands from time to time to gain production and marketing
efficiency, or to rationalize a brand portfolio as part of corporate restructuring.
A recurring challenge for brand managers is to build a consistent brand while keeping its
message fresh and relevant. An older brand identity may be misaligned to a redefined
target market, a restated corporate vision statement, revisited mission statement or values
of a company. Brand identities may also lose resonance with their target market through
demographic evolution. Repositioning a brand (sometimes called rebranding), may cost
some brand equity, and can confuse the target market, but ideally, a brand can be
repositioned while retaining existing brand equity for leverage.
Brand orientation is a deliberate approach to working with brands, both internally and
externally. The most important driving force behind this increased interest in strong
brands is the accelerating pace of globalization. This has resulted in an ever-tougher
competitive situation on many markets. A product’s superiority is in itself no longer
sufficient to guarantee its success. The fast pace of technological development and the
increased speed with which imitations turn up on the market have dramatically shortened
product lifecycles. The consequence is that product-related competitive advantages soon
risk being transformed into competitive prerequisites. For this reason, increasing numbers
of companies are looking for other, more enduring, competitive tools – such as brands.
Brand Orientation refers to "the degree to which the organization values brands and its
practices are oriented towards building brand capabilities” (Bridson & Evans, 2004).
[edit] Challenges
There are several challenges associated with setting objectives for a brand or product
category.
• Most product level or brand managers limit themselves to setting short term
objectives because their compensation packages are designed to reward short term
behaviour. Short term objectives should be seen as milestones towards long term
objectives.
• Often product level managers are not given enough information to construct
strategic objectives.
• In a diversified company, the objectives of some brands may conflict with those
of other brands. Or worse, corporate objectives may conflict with the specific
needs of your brand. This is particularly true in regard to the trade-off between
stability and riskiness. Corporate objectives must be broad enough that brands
with high risk products are not constrained by objectives set with cash cows in
mind (see B.C.G. Analysis). The brand manager also needs to know senior
management's harvesting strategy. If corporate management intends to invest in
brand equity and take a long term position in the market (i.e. penetration and
growth strategy), it would be a mistake for the product manager to use short term
cash flow objectives (ie. price skimming strategy). Only when these conflicts and
tradeoffs are made explicit, is it possible for all levels of objectives to fit together
in a coherent and mutually supportive manner.
• Brand managers sometimes set objectives that optimize the performance of their
unit rather than optimize overall corporate performance. This is particularly true
where compensation is based primarily on unit performance. Managers tend to
ignore potential synergies and inter-unit joint processes.
• Brands are sometimes criticized within social media web sites and this must be
monitored and managed (if possible)[2]
Four months ago, Anil Ambani hired AC Nielsen, the market research agency, with a
mandate to conduct research on how stakeholders and customers responded to the
"Reliance" brand.
The agency interviewed over 2,100 respondents, including company shareholders,
professionals, general public and trade partners across 13 cities and came out with some
interesting findings.
First, the good news: the Reliance brand scored high on parameters such as size, speed,
financial stability, performance, scale and promises delivered. That is expected and
understandable.
But the bad news was that it lagged behind in a host of other key attributes - it wasn't
seen as a very emotive, approachable or accessible, and youthful brand.
The second issue according to the survey was even more serious: the brand recall of the
existing logo was nothing to drive home about. Even though the respondents were
familiar with Reliance and its association with the Ambanis, few remembered the punch
line "Growth is Life".
These findings have now formed the basis of one of the country's most ambitious and
expensive brand makeovers, which will give an identity to the Reliance Anil Dhirubhai
Ambani group.
Ambani's executives won't tell, but industry estimates suggest that in the next 12 months,
the group will fork out over Rs 500 crore (Rs 5 billion) to Rs 700 crore (Rs 7 billion) to
make an impression.
This, despite the fact that under the partition agreement between the Ambani brothers,
both sides can use the existing Reliance logo.
Starting this week, the group will revamp signages in hundreds of Reliance Webworld
retail outlets across the country, rework creatives for television and print, change the
stationery and visiting cards of thousands of employees in various ADA companies and,
of course, come out with an aggressive corporate campaign with a new punch line "Think
Bigger", all across the country. The deadline for a complete roll out is expected to be in
the next three months.
That's surely ambitious. And to ensure that everything moves smoothly, the group has set
up a "brand council" consisting of marketing and brand professionals from various group
companies as well as some senior executives of the group who have spearheaded the new
brand identity.
It has also taken external help. The group hired the US-based brand strategy outfit, Profit,
with renowned brand guru David Aaker offering critical advice. And at the downstream
level, it also hooked up with UK design house Landor (which also designed the "Indian"
brand logo for Indian Airlines) to execute the design for the new logo.
New realities
So what necessitated the great brand identity makeover? After all, Reliance has been a
solid brand, time-tested through the last three decades and has become a household name.
The answer lies in the changing nature of Reliance ADA's businesses.
After the split, the Anil Ambani group now straddles businesses that are clearly focused
on the customer and more at the retail level - mobile phones, power, financial services
and insurance.
The existing brand identity and logo was a powerful corporate brand conceived in a
business scenario where the undivided group was largely into B2B businesses such as oil
and gas and petrochemicals.
But with the group split, it was felt that the nature of Reliance ADA's businesses
demanded a more customer-friendly approach and also a brand identity, which could
relate more to people and at the grassroots level.
"The research clearly showed that we needed a brand identity which addresses the
customer more closely than the existing brand offerings. The new brand identity had to
be more youthful, approachable and emotive," says Yogendra Vashisht, head of branding,
Reliance Energy [Get Quote] and a key member of the brand council.
Of course, there were crucial challenges in drawing out the makeover. These emanated
from the nature of the group's business as well as the diverse nature of its customers.
Further, it was a fact that the split in the family had created confusion in the minds of
customers. For instance, unlike an Airtel, which is only in the telecom business, or a
Hindustan Lever [Get Quote] in FMCG products, Reliance ADA straddles diverse
businesses.
So a niche brand identity relating to the attributes of one business was not workable.
Two, the customer base is also diverse - from high-end corporates who use leased lines,
for instance, in Reliance Infocomm, to the rural masses, which uses its mobile services.
So, a brand identity which, would address a niche segment of the market (such as Hutch,
which largely focuses on the upper and middle end of the market) was again ruled out.
Third, in most of the businesses that it straddles, chances are that there would be a large
segment of customers who would be common. Many of them probably use a Reliance
phone, buy power from Reliance Energy and invest in Reliance mutual funds.
"We realised that we needed to create a monolithic brand identity, which would synergise
all the group companies together. The message is that you can get a range of services and
you need not go to anyone else for them," says Ajay Kakar, head of branding in Reliance
Capital [Get Quote] and a member of the brand council.
Lastly, the group was well aware that there could be the possibility of confusion in the
minds of people after the split. Even though, both the groups can use the same logo, the
problem could be on how customers would identify which company belongs to which of
the Ambani brothers.
So, it was felt that there was a need to create a distinct identity even while using the same
name "Reliance". And that, it needed to break the clutter of existing and competing
brands that were already there in the market.
Execution challenges
Kakar gives one example of the complexity of the challenge: while choosing the colour
of the logo, there was need to ensure that it didn't reflect a snooty corporate attitude
addressing only a niche market segment.
But at the same time, it was not possible to choose loud colours that would not appeal to
them at all. The answer, in this instance, was found after about 50 to 60 meetings of the
brand council: create a brand identity that has universal attributes rather than specific to
any business and make it simple and contemporary.
So a red arrow was conceived, which conveys a group that is fast-forward, has clear
targets and a lot of potential for expansion.
The symbolism, insiders say, makes immense sense, because all the businesses in the
Reliance ADA group are like startups with tremendous growth potential. The elongated
A also represents Anil Ambani as distinct from his brother's (Mukesh Ambani) group.
To cut the clutter and make the brand identity more approachable and youthful, experts
used both a combination of upper as well as lower case in the font.
Argues Vashisht, "Most old companies have a consistent font, which is reflective of
formality and a hierarchical organisation. We wanted to break that by saying we will not
have any set pattern and use both upper and lower case fonts. This makes us look more
approachable and, of course, youthful."
The group also took an important decision that the colour code and the logo style would
be common across all companies. Till now, different companies used different colour
codes.
For instance, Infocomm had green, Reliance Capital used orange and blue, and Reliance
Energy had orange colour codes. As a benchmark, the brand managers studied the GE
model, which also has diverse businesses but with a monolith brand.
However, it does allow group companies to choose different colours - a formula that
Ambani's managers decided not to follow. The reason, says Kakar, is, "We concluded
that a monolith model with a single look and feel would work much better for our group
rather than the GE model."
Even the colour combination of blue and red was perceived with care. "Blue represents
calm and serenity, while red represents passion and are universal colours that appeal
across segments," says Vashisht.
But how do experts and competitors see the new brand identity makeover work? Says
Preet Bedi, president of Rediffusion DY & R, "A logo change is always an external
manifestation of an internal change in a group's DNA. You need at least two to three
years before you can really judge whether it is working."
Others are less charitable: "Reliance was earlier a zamindari brand, powerful and strong;
now it is trying to become a consumer brand. Such a strategy will only work if it is
matched by differentiation in quality of service. If brands could be built by changing the
logo, everyone would do the same."
Adds another brand watcher, "It has a B2B psyche, and a mere brand makeover will not
do the trick. They need to change organisationally to establish a long-term relationship
rather than a transactional relationship with customers."
There are other close Ambani watchers who, however, have a different view. They aver
that more than being a brand trying to get close to its customers, the rebranding is an
attempt by Anil Ambani to emerge from the shadows of his brother Mukesh.
Says a senior executive of a competitive company, "They might talk about stakeholders,
but the logo is an attempt by Anil Ambani to consolidate his name and create an imprint
on his organisation after being in the shadows. It is more personal."
Printed from
Need to re-invent
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Mukesh Ambani compared to Gandhi for bold
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Lessons to learn
'Branding is about detail, advertising is about big picture' Arcopol Chaudhuri/ DNA
MONEY
Saturday, 28 June , 2008, 12:17
Last Updated: Saturday, 28 June , 2008, 12:42
Ceat, Arvind Mills, Shoppers Stop, Godrej, Sify, Cisco, Canara Bank, Network18 —
all have got a brand makeover in the recent past. It's a great time for design
agencies, isn't it?
Yes! There is so much on our hands that we have to turn away work everyday. We've
done the branding for Mumbai, Bengaluru, Delhi and Hyderabad airports. Since January,
we also did four brand launches — Ceat, Trident, Arvind and Shoppers Stop.
July 6, 2006
Extreme Image Makeover Will Give One Lucky Coachella Valley Business a Fresh New
Look
FPRIVATE "TYPE=PICT;ALT="
Jeff Beckelman (President of the CVA), Don Adolph (La Quinta Mayor) and Kate Spates
at the announcement of Image Marketing Concepts "Extreme Image Makeover" contest.
Palm Desert, CA - Image makeovers are common for fashions, homes, cosmetics and overall
appearance. Makeovers give anyone the ability to quickly go from out-dated to trendy. Lasting
impressions are the key to success and as styles and trends change, so why shouldn't this hold
true for a professional brand image?
Image Marketing Concepts slogan is "Image is everything" and it's the core business philosophy
for this brand new innovative company. To that end, they announced today the details of an
"Extreme Business Image Brand Makeover". IMC's image consultants will award one local
business with a complimentary professional makeover on September 8, 2006.
India now sports the world's biggest telecom brand in the true sense! Hutch is now
Vodafone and the company is spending nearly Rs 250 crores to sell its new brand name
in the Indian market.
Vodafone plans to paint the town red with its innovative tariff schemes, new value added
services and low cost handsets costing Rs 666.
The Vodafone director refused to confirm this: “I cannot share pricing details but there
will be no discounts or subsidised handset offers. Instead, Vodafone Essar may come up
with innovative handset-bundled schemes for its 35 million consumers.” Company
sources also said that the bundled handsets will primarily be distributed through
Vodafone Essar’s four lakh-odd distribution outlets. “Vodafone Essar is also entering
collaborative arrangements with some of the top vendors to achieve unprecedented
sales,” a top company official was quoted as saying.
While CDMA players like RCOM and Tata Teleservices have adopted handset-driven
expansion strategies to drive up subscriber base, this is the first time that a GSM player is
venturing into this space on a pan-India level.
China’s ZTE, which is looking to set up a cellphone manufacturing unit in India, is
expected to provide many Vodafone handsets in India. Early this year, Vodafone inked a
global low-cost handset procurement deal with ZTE.
ZTE global vice-president (handset systems) He Shiyou told ET that as per the deal,
Vodafone would offer ZTE’s handsets to its subscribers in India. “ZTE hopes to ship
over 10 million of these to India. Though, we ship high-end phones to the West, our plan
for India revolves around low-cost phones, which we offer in collaboration with
operators there,” Mr Shiyou added.
The company will unveil the Vodafone brand on Thursday in one of the biggest brand
transition exercises in the recent times. According to PTI, Vodafone will keep in-tact its
predecessor’s assurance of following customers wher-ever they go, but will replace
Hutch’s ‘Wherever you go our network follows’ catchline with ‘Make the most of now’.