Brand Management

Faculty: K.R.Senthilvelkumar
Batch: 2011; Semester: IV
Jansons School of Business
What consumers What does What
expect in it mean? does it
products? call for?

Availability & Distribution

ACCESS Price power / cost
efficiency
Awareness & Promotion
REPUTATION Quality assurance power

Improved Focus on
functional research,
utility, technology
DIFFERENTIATION
Durability, & quality
Reliability &
Added benefits

Aspirational Good Brand

PRESTIGE Image
value
 Five Levels of Meaning for a Product
• The core benefit level
– is the fundamental need or want that consumers satisfy by consuming the product or
service

• The generic product level

– is a basic version of the product containing only those attributes or characteristics
absolutely necessary for its functioning but with no distinguishing features. This is basically
a stripped-down, no-frills version of the product that adequately performs the product
function

• The expected product level

– is a set of attributes or characteristics that buyers normally expect and agree to when they
purchase a product

• The augmented product level

– includes additional product attributes, benefits, or related services that distinguish the
product from competitors

• The potential product level

– includes all the augmentations and transformations that a product might ultimately undergo
in the future
• BISLERI
• BATA
• BRIL
• BAND AID
• INTEL
• CAMLIN
• VICKS
• WALKMAN
• XEROX
 ET – Brand Finance
India’s Most Valuable Brands 2010
• 1. TATA Motors
• 2. RIL
• 3. State Bank of India
• 4. TATA Consultancy Services
• 5. India Oil
• 6. Bharti Airtel
• 7. BPCL
• 8. TATA Steel
• 9. WIPRO
• 10. HPCL
 ET Brand Equity
Most Trusted Brands 2010
2010 Ranking Brands 2009 Ranking

1. 1.
Nokia Mobile Phones
2. 2.
Colgate
3. Lux 3.
4. Dettol 5.
5. Britannia 9.
6. Lifebouy 4.
7. Clinic Plus 15.
8. Pond’s 16.
9. Fair & Lovely 18.
10. Pepsodent 8.
11. Close Up 11.
12. Goodknight 21.
13. Rin 43.
14. Tata Salt 7.
15. Pepsi 26
16. Maaza 46
17. Vodafone 30
18. Maggi 35
19 Glucon - D 14
20. Thumps Up 39
21. 34
Bournvita
22. 6
Horlicks
23. 32
Coca - Cola
24 25
Vicks
25 20
LG
26. 41
Surf
27. 44
Godrej
28. 56
All Out
29. 75
Wheel
30. 79
Vaseline
31. New Entry in
Kurkure 2010
32. 33
Hero Honda
33. 52
Sunsilk
34. 24
Tata Tea
35. 47
Amul
36. 29
Frooti
37. 58
Limca
38. 19
BSNL
39. 36
Bata
40. 50
Head & Shoulders
41. 54
Fevicol
42. 22
Parle
43. 48
Samsung
44. 49
Johnson & Johnson
45. 51
Com plan
46. 77
Boroplus
47. 42
Philips
48. 72
Tide
49. 13
State Bank of India
50. 55
Iodex
 BRANDZ TOP 100
Most valuable global brands 2010
 Why branding attracts so
much attention ?

• Visible part of marketing strategy

• Glamorous
• Plays on emotions
 What branding is not?

• Cosmetic addition
• Changed at will
• Permanent cover
• Built through advertising alone
• Make up for the loss of essentials
• Tactical decision
 What is a brand?
• “is a thought” – Harish Bijoor

• “ is a set of mental associations held by

the consumer, which add to the perceived
value of a product or service” - Keller

• “is a Name, Term, Sign, Symbol or design

or a combination of them intended to
identify the goods and services of one
group of sellers and to differentiate them
from those of competition” - AMA
 What is a brand?

• “is PERCEPTUAL, PERPETUAL, PERVASIVE,

and PERSUASIVE”

• “ is a sellers’ tool for inducing a prejudiced

bias in consumers’ purchase decisions”
 Essentials of a brand

• Prominent
• Exclusivity
• Positive
How is a brand different from a product?

PRODUCT BRAND

Meets a need Fulfills a want

Physical Perceptual

Good, if superior in functional value Great, if evokes strong emotions

Judged against price Evaluated against image

Survival based on quality Supremacy based on continuous

innovation
Can be replicated Difficult to replicate

Become obsolete over time Capable of staying contemporary

forever
 What does a brand give to consumers?

BENEFITS COSTS

Identifies the source Higher costs

Assigns responsibility for sellers Sense of false value

Reminds them of the past experience Makes them emotional

Simplifies the decisions Make them materialistic

Reduces functional, physical, social,

financial, psychological and time risks
Gives a means for projecting self-
image
 What does a brand give to sellers?
BENEFITS COSTS

Easy product handling, inventory and Raises expectations

accounting records
Identity for the products Need to offer price justification

Legal protection Need for consistent delivery of quality

at all fronts
Can promote a signal of quality

Can provide synergy

Intangible asset

Source of competitive advantage

Can create customer relationship

What is branded?
What is not branded?

Why?
Prerequisites for a category

to be branded
• Scope for differentiation
• Specific needs
• Consumers’ involvement
• Risks are more
RELEVANCE OF BRANDING

LOW HIGH
TATA STEEL
 Indian Steel
Industry

• 5th largest steel producer in the world

• 5% of global steel consumption
– Per capita consumption: 40kg vs. 198kg ww
Industry size
 Critical Success Factors
• Supply of inputs – captive mines
• Production process – technology,
innovation, quality management
• Cost efficiency
• Distribution
• Brand ???
 TATA STEEL
• Fortune 500 company
• 10th Largest Steel Producer in the world
• Group Turnover: Rs.102,393 crores
• Jamshedpur plant: 6.8 mtpa
• Customers:
– B2B: 80%
• Kitchenware, Automobile, Consumer Durab mfrs
– B2C: 20%
• Construction, Housing buyers
 TATA STEEL
• Share of Branded Products:
–12% in 2003
–28% in 2004
–34% in 2005
 TATA STEEL
• Transition from COMMODITY to BRAND
– Leveraging ‘TATA’ name
– To be one up on competition
– Other inherent advantages of branding:
• Price premium
• Differentiation
• Perceived quality
• Evoke feelings
• Strengthen desires
• Maintain relationship
 TATA STEEL
• Products:
– 1) Raw materials:
• Iron ore, coal and other minerals

– 2) Agri implements:
• TATA Agrico

– 3) Bearings:
• TATA - Automobile

– 4) Wires:
• TATA Wiron for Auto, Constn, Textile, Farming, Power
 TATA STEEL
• Products:
– 5) Long products:
• TISCON for Construction
– 6) Flat products
• TATA Shakti & TATA Steelium for Construction, Auto
– 7) Tubes:
• TATA Pipes for industrial and Construction
– 8) Plants & Machinery
– 9) Automation process solutions
– 10) Retailing: TATA Steel Junction