Do we actually need celebs???

Celebs are more expensive,

Creativity element???
Celebs may eat over the ad appeal
Involvement - H.P and B.P,
Affordability ???
TVS Scooty, Hungama TV
70 % of Japnese ads use Celebes, only
25 % of US ads use Celebes
Celebes branding- tactical tool
Celeb branding: strategic v/s tactical tool
Fiat Paleo + Sachin highly tactical
Sometimes lucky-
– Nike Jordon Air
– TAj mahal + Zakhir Hussain 30 years,
– Grasim + Pataudi- understand the person
Best strategy to have no strategy
Stop visualizing as problem and solutions
approach.
Branding in the right spirit eg. TATA
Brand TATA:
Values at 24,400 crores
14,000 crores- non corporate brands
doing what is risky,
in the social context,
competitive advantage and core competency
Best strategy to have no strategy
Sant Mani
Wife’s jewellery-TISCO. “Sinking gold into
the ground”
“Wrong place at wrong time”.
Core-The maddest creature- supreme
confidence.
Vision- Indian Enginners can do it.
Best strategy to have no strategy
Positioning
– Great Grand father - textile
– Grand father- hotels
– Father- Truck
– I – Car
– Son- telecom

Global: S. Africa- seven sectors same time

Half the promotional money by Govt.
 Stick to your competencies-
innovation
Castrol- Very little influence on category
80s and 90s – deregulation, political
constraints
Created branded Lubricant category
Exclusive technology centre in Wadala
Kept pace and changed creatively in a
destructive market( MRTP)
 Innovation- the key
Invented lubricant for hot, humid, dusty,
Indian conditions -Something very special
for customers
Vehicle adulteration campaign and enrich
safeguard (social)
Pricing and packaging innovations- super
2t oil
1990s 90 % of fuel sold in petrol pumps
 Innovation- the key
32 % sold in retail stores as petrol pumps
become motels
ROCE- highest in industry- 40 %,5 %COC
Trend Reversal from marketer- brands-
customer to customer- brand- marketer,
Customer adds more value in the brand,
improving its equity.
 Changing trends
Global info opening- Chinese chef
Information fusion, customers are much ahead
of Corporate- first point of enquiry and grievance
Amazon, Cisco, Dell- all participating with
customers to create value
Overall the soap market (India) is worth 14,000
crores the need for aggression like never before,
a 1200 % growth in the last 10 years- the
organized segment- value
 Innovation- the key
Videocon mistook Bazooka and Toshiba as
threats.
30, 000 customer houses free service,
aggression the key
Gangofgirls.com, 65 % market share, 1st day
100,000 viewers,
Raymond- product repositioning, the same
customer would view the product 4 times in six
weeks, every time with a different attribute,
Recognition in S. Korea and Japan.
 Social appeal
Social appeal- Media gives free space
Tackling myths and misconceptions, rural
market communication-
– Grammene Bank, Bangladesh- Noble peace Price.

Surf Excel- “save water’ campaign.

 Back to basics
The only thing is to get real
Take work serious, don’t take yourself
serious- SBI, large, successful but humble
Print ad is a salesman- not any more
Adv. Can only do certain things
When a one to one salesman cannot sell
in 30-40 seconds, how do you expect an
ad to do that, Selling insurance
POT. (EXP.)

AUG (SER.)

EX/PRO/BR

CORE
 Air Conditioner
Core: Cooling and Comfort ,
– Sufficient cooling capacity ( Btu per hour),
– an acceptable energy efficiency rating,
– adequate air intakes and exhausts and so on

Expected
– Consumer Reports
– Consumers should expect at least 60 inches long,R-22
HCFC refrigerant (less harmful to the earth’s ozone layer
than the other types),
– one-year parts-and-labor warranty on the entire unit ,
– a five year parts-and-labor warranty on the refrigeration
system.
 Air Conditioner
Augmented:
– Optional features like electric touch-pad controls
– display show indoor/outdoor temp., thermostat setting
– automatic mode to adjust fan speed based on the
thermostat setting and the room temperature,
– a toll free number for customer service , and so on
– Silent running,
– Completely balanced throughout the room, and energy
self-sufficient.
 VCR
Core Benefit: Convenient entertainment
Ability to record and play back television or video programs
with adequate picture quality
Expected
Consumer reports states that for a typical VCR, consumers
should expect a digital quartz tuner that receives 125 cable
channels;
ability to record at – and play tapes recorded at—SP,LP, and
EP speeds;
on-screen programming of eight events up to one year in
advance with options of daily and weekly recording;
power on when tape is inserted and auto rewind at end of
tape;
one-year warranty on tape heads and others parts, three
months on labor
 VCR
Augmented:
Optional features like hi-fi stereo sound, VCR plus,
Shuttle controls for easy backward and forward
scanning.
Voice-controlled programming; ability to edit out
commercials.
 Potenialising
Co-creating unique value with customer
100 years of transition
Dotcoms- say in terms of how I want to
have relationship with the company.
I-net, bunch of screens, your own input.
 Potentialising- the transition
Value creation- products and services
V.C to V.Cap to VCL to PVCL
Marketing: core-exp-pot,the value chain
Prods to services to experiences
Experience is conditioned by the context
of the consumer.
 The question
Where am I? What point in time?
what do I bring prior to that experience
Very event oriented, space and time
constrained context within which the
individual undergoes experiences.
Restaurant
10 people
 Potential = differentiate
Many 5 star res.
Experience- the next round of
differentiation
How do I provide unique experiences
Point of sale, MOT,
Questioning fundas of value creation???
What drives experience???
 Experience dissatisfaction.
Experience by def involves individuals
Start from the experience-go backwards
Cell phone - feature function set
Digital technology crammed
Frus, dis-satn.- why navigate through all
the stuff that I don't need
Feature rich but experience poor
Answer Customer,adjective to noun
Value is created in the intersection of the
firm and the consumer
The exchange- POE to MOT to POS
Why involve ???
Ford
CDMA v/s GSM
Television and Cellular ind. USA
 Why involve???
product development risks- I/P from Cus.
companies increase their V.C opport.
consumers create more value for
themselves due to unique experience
Music Industry- Cos.unilaterally define
choice for the consumer, Napster
no mechanism to sample the music
Apple’s strategic blunder
 Why involve???
Do I listen to a million prospects before I
innovate
Liability v/s resouce
M. soft- 600 000 cus. Tested beta version
XP NT , 600 mn $ R & D
Peter Jackson Lord of the rings, Gordon
Patterson,
 Seek to understand
Before brand innovations, understand
markets and the BCG positioning
M. leader, follower, challenger
Each has essentially an offensive and a
defensive strategy that is different
Branding-highly strategic, hence in line
Market leader’s branding strategy
Defensive:
Fast follower
Not a pioneer
IBM (Bell labs), Microsoft (best labs in voice
recognition)
Use capital side and not the brain side
Apple v/s IBM
Market leader’s branding strategy
Offensive
Grow the pie
Understand topography- cellular India
BSNL(2003), huge market access
Mature markets- Attract for newer markets
Attract newer customers
Rural marketing-eliminate class differentials
Packaging- the fifth P
Market leader’s branding strategy
Offensive
– Non consumers to consumers
– Maruti-800 expansion mode, TATA Motors
– Reliance
– Rural markets
– DNR- development first, n then research
 The challenger
Defensive
– Coexist with no. 1
– Imitate no. 1(Berger King, Pepsi)
– India- most markets are coexisting.
– Banking, Airways,
– Offensive- challenge, but beware
Clone- follow- defensive-attack-offensive
Quietly defend first, attack later
 Follower
Defensive
– Segment within segment
– Luggage Cos., Canteen contract, Jeep
– Car makers’ suppliers- pseudo specialists
Attack - innovation,
– Create radical change
– Chrysler
– automotive transmission,
– Convertible designs,
– cap forward design,
– Minivan
– Manufacturing rebate
– Sprint, TATAs, Cola.
 Finance drives branding
Market share concentration depends on
the extent to which fixed costs dominate
financial structure
Aerospace, Auto
Semiconductor,
Intel v/s AMD v/s Motorola
Software
Intel-70 % m. share, 70 % fixed cost intensive
Wall-scope and scale of investments
 Unity is strength
Solutions-attack in consortiums
IBM assembler, micro processor and
machine language- 7 dwarfs + B.L=UNIX
Boeing v/s Mcodonalds, Airbus
Microsoft monopoly- Linux+ IBM
Economies of scale and scope in
manufacturing + procurement = effective
branding