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IIM Lucknow - Brand Management - January 05, 2012
IIM Lucknow - Brand Management - January 05, 2012
IIM Lucknow - Brand Management - January 05, 2012
Brand Management
January 05 2012
Charanpreet Singh Associate Dean Praxis Business School
charanpreet@praxis.ac.in
The most obvious measure: Sales - more importantly, market share variations thereof
Objective Give a view of history A good mind can understand outcomes in some detail
Brand Tracking
1. May not be able to accurately predict the future 2. Will not be able to pinpoint the problem areas 3. May lead to Type II (and Type I) errors
Brand Tracking
Three components:
Brand Knowledge Brand Equity premium chargeable/ higher numbers Brand Value rupee value if the brand is sold or franchised
Brand Knowledge
Brand Tracking
Has two components:
2.
Brand Image what does the consumer associate with the brand?
Brand Tracking
Level 1: Brand Awareness Level 2: Brand Image Level 3: Brand Evaluation Level 4: Brand Loyalty
4. Relationship
= What about you and me?
Resonance
3. Response = What
Positive reactions
about you?
2. Meaning = What are you?
Judgements
Feelings
Strong brand associations
Performance
Imagery
Salience
Brand Tracking
Brand Knowledge
Brand Tracking
Brand Knowledge
Brand Knowledge
Brand Loyalty also derives from the same two dimensions the desire to continue with the same brand for rational or emotional (or a combination of) reasons its about attachment , commitment and engagement (Resonance)
Brand Knowledge
Measuring Methods
Brand Knowledge
Quantitative Methods: Young & Rubicams BAV J. Aakers Brand Personality Kapferers Brand Prism Qualitative Methods: Projective Techniques Laddering Zaltman metaphor elicitation
Young & Rubicams Brand Asset Valuator Attempts to measure: Brand Stature
The current strength of the brand
Brand Vitality
The potential for growth
Brand stature measures the current strength of the brand and depends on: Knowledge how well consumers know the brand Esteem - how highly consumers regard the brand.
Brand vitality measures the growth potential of a brand and depends on: Differentiation how distinct the brand is Relevance - how appropriate the brand is to the target consumer
Young & Rubicams Brand Asset Valuator Methodology: The Y&R method uses 48 image, personality and attribute questions administered to respondents a set of 12 measuring each of the four dimensions
Young & Rubicams Brand Asset Valuator Methodology Once the responses along the four dimensions are measured, we have the scores of the brand across the four dimensions The Stature and Vitality measures translate into a 2*2 matrix with 4 quadrants
Brand Vitality
2 Low, High
1 High, High
4 Low, Low
3 High, Low
Brand Stature
Quadrant 1
Hail Chief!
Quadrant 2 Low Stature, High Vitality Interpretation: Emerging Brand Comparative strength: measured by knowledge and esteem scores knowledge score is more fundamental Example Airtel some years back; Virgin Mobile now? Indigo
Quadrant 3 High Stature, Low Vitality Interpretation: Potentially Declining Brand Scores for differentiation and relevance will give further insights Example Volvo?
Relevance:
High relevance means your need-identification is spot-on the first building block is in place
Quadrant 4
Next
Differentiation: Given a need identification, how well have you differentiated yourself from the others with respect to the offering
Your need identification is strong, but competitors offerings are seen to be similar
Implication of High Relevance, Low Differentiation The Prescription: Dont tinker with the positioning - concentrate on the clarity of communication
Implication of Low Relevance, High Differentiation Consumers clearly see it as different from competition, but do not relate to the benefit or image portrayed by it
Prescription:
Reposition or wait!
Milkmaid before repositioning Paloma ice tea by nestle Ms. Cigarettes Reva cars Marks & Spencers in India
Understanding what the scores tell you The Esteem score tells you how well the brand is regarded and respected
Function of: The way the brand has conducted itself on the value attribute reality and perception
Understanding what the scores tell you High knowledge, low esteem:
Young & Rubicams Brand Asset Valuator Weak/ Undesired Brand Personality
Australian cricket team Reliance industries ITC before repositioning Cola companies IIPM (?)
Young & Rubicams Brand Asset Valuator A Survey based on the Brand Asset Valuator is conducted annually containing data about 20.000 brands, based on the opinion of over 230.000 respondents in 44 countries.
Brand Vitality
Brand Stature
The BAV model could throw up results that lead us to the softer aspect of the brand the Brand Personality
Aakers model has limitations: personification of brands is restrictive - a brand possesses dimensions which one may or may not be able to personify
Kapferer outlined 6 facets of a brand and these 6 facets underline the dimensions of the brands identity
Kapferers Brand Identity Prism Physical facet (External): Packaging Color Product look & feel May be prominent or dormant Is the first stage in brand construction
Brand personality(Internal): This is the link with Aakers concept of brand personality
More relevant to b2b and services and deals with the quality of transactions. Trust, commitment, ethics are the key variables.
How would Sales describe the relationship attributes for their customer management process? How would Customer support describe their approach to increasing customer satisfaction? How does the brand want to be seen by customers in marketing communication?
Brand Culture (internal): Culture is a deep-seated facet and implies a system of values, a source of inspiration, brand energy. Cultural moorings: urban/ rural/ Indian/ global Fosters, Rolex, Ceylon tea, Kitchens of India, echoupal The Worlds Local Bank
Reflected consumer (external): Whom is the brand seen as targeted to and the image of the target which the brand offers to the public
Consumer Mentalisation (internal): If reflection is the targets outward mirror, the selfimage is the targets own internal mirror Through our attitude towards certain brands, we develop a certain type of inner relationship with ourselves Marlboro, Raymonds, Open Source Software
Personality
Roger Federer, Rafael Nadal
Relationship
Sponsorship, Ethics
NIKE
Culture
American, Just do it
Reflection
Aggressive, Comfort, In your face
Self Image
Cool, I am an athlete
Adidas
Picture of Sender
Phys ique: Sports and fitness Re lationshi p: Quali ty an d heritag e Reflection: true sportsmanship , A goo d team player, strong work ethic Personal ity: Tradi tional , co nservati ve, co llective Culture: Europ ean, Traditio nal Se lf-Image: Rel ates more to co mpeting t han t o winning
Externalization
Picture of Recipient
Internalization
The identity prism puts the brand under the microscope of each of its facets
Comes up with diagnoses useful when brand identity prisms are worked out for competitors
Laddering
standard survey research methodology combined with a classification scheme to categorize respondents into predetermined clusters or groups
VALs Values, Attitudes and Lifestyles methodology of the Stanford Research Institute
VALs Administer an interval scaled instrument with a series of questions on VALs Cluster the respondents by running a cluster analysis and give names to each cluster (belonger, emulator, I am me, achiever)
Product neutral gives the overall value orientation of target segments Silent on the linkages between the product and the personally relevant role it has in the life of the consumer
Micro (psychology): Means-end theory (Gutman 1982) linkages between the attributes that exist in products (the "means"), the consequences for the consumer provided by the attributes, and the personal values (the ends) the consequences reinforce
Means-end theory
consumer actions produce consequences consumers learn to associate particular consequences with particular product attributes they have reinforced through their buying consumers learn to choose products containing attributes which are instrumental in achieving their desired consequences
Means-end theory
Means-End Theory simply specifies the rationale underlying why consequences are important .namely .personal values
Means-end theory
Attributes (A)
The Hero Honda Karizma is launched on the platform of power emerging from a 223 cc engine - the attribute
Means-end theory
Consequences (C) The power of the bike could lead to the consequences of: It goes faster (speed) It is sturdier (power = sturdiness) It goes long distances
Means-end theory
Consequences (C)
The consequence of it goes faster could further be: You will zip past your friends and classmates.
Means-end theory
Values (V)
The values of you will zip past your friends and classmates could be: Self esteem among peers and/ or Attractiveness/fear(!) amongst the opposite sex
Means-end theory
The consequences of it is sturdier could further be: It will last longer It will have lower maintenance
Means-end theory
Values
The values of it will last longer and will have lower maintenance could be: Pride in being careful about the money spent vfm buyer
Means-end theory
Consequences
The consequence of it goes long distances could be that As a sales executive, you could cover more territory and achieve higher sales.
Means-end theory
Values
The values of as a sales executive, you could cover more territory and achieve higher sales could be: The pride from professional achievement / likelihood of promotion and hence better social status
Laddering
Laddering refers to an indepth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following the Means-End Theory
Laddering
a tailored interviewing format using primarily a series of directed probes, typified by the Why is that important to you? question goal of determining sets of linkages between the key perceptual elements across the range of attributes (A), consequences (C), and values (V).
Laddering
provides a perspective on how product information is processed from a motivational perspective the underlying reasons why an attribute or a consequence is important can be uncovered
Laddering the following ladder, starting with a basic dis-tinction between types of snack chips, represents part of the data collection from a single subject in a salty-snack study:
self-esteem I better figure I dont get fat I eat less I strong taste I flavored chip
Laddering
Data Collection One-on-one interviews. Typical question is: why is that important to you?
1. Evoking the Situational Context Interviewer: You indicated that you would be more likely to drink a wine cooler at a party on the weekend with friends, why is that? Respondent: Well, wine coolers have less alcohol than a mixed drink and because they are so filling I tend to drink fewer and more slowly. Interviewer: What is the benefit of having less alcohol when you are around your friends? Respondent: I never really have thought about it. I dont know. Interviewer: Try to think about it in relation to the party situation. (*) When was the last time you had a wine cooler in this party with friends situation? Respondent: Last weekend. Interviewer: Okay, why coolers last weekend? Respondent: Well, I knew I would be drinking a long time and I didnt want to get wasted. Interviewer: Why was it important to not get wasted at the party? Respondent: When Im at a party I like to socialize, talk to my friends, make some new friends. If I get wasted Im afraid Id make an ass of myself and people wont invite. Its important for me to be part of the group.
Laddering
Data Analysis The summary ladder for (1) is: V: sense of belonging (part of the group) C: socialize C: avoid getting drunk (wasted) A: less alcohol/filling
2. Postulating the Absence of an Object or a State of Being (*). Interviewer: You said you prefer a cooler when you get home after work because of the full-bodied taste. Whats so good about a full-bodied taste after work? Respondent: I like it. I work hard and it feels good to drink something satisfying. Interviewer: Why is a satisfying drink important to you after work? Respondent: Because it is. I just enjoy it. Interviewer: What would you drink if you didnt have a cooler available to you? (*) Respondent: Probably a light beer. Interviewer: Whats better about a wine cooler as opposed to a light beer when you get home after work? Respondent: Well, if I start drinking beer, I have a hard time stopping. I just continue on into the night. But with coolers I get filled up and its easy to stop. Plus, I tend to not eat as much dinner. Interviewer: So why is continuing to drink into the evening something you dont want to do? Respondent: Well, if I keep drinking I generally fall asleep pretty early and I dont get a chance to talk to my wife after the kids go to bed. She works hard with the house and the kids all dayand its really important that I talk to her so we can keep our good relationship, our family life, going.
Laddering
Data Analysis The summary ladder for (2) is: V C C C A good family life able to talk to my wife dont fall asleep (consume less alcohol) filled up/easy to stop
3. Negative Laddering (*) Interviewer: You indicated a distinction between 12 ounce and 16 ounce bottles. What size bottle do you prefer? Respondent: I always buy a 12 ounce bottle. Interviewer: Whats the benefit of buying a 12 ounce bottle? Respondent: I just buy it out of habit. Interviewer: Why wouldnt you buy a 16 ounce? (*) Respondent: Its too much for me to drink and it gets warm before I can finish it all. Then I have to throw it away. Interviewer: So how do you feel when you have to throw it away? Respondent: It makes me mad because Im wasting my money. Interviewer: Whats the importance of money to you? Respondent: Im in charge of the family budget, so its my responsibility to make sure its spent right.
Laddering
Data Analysis The summary ladder for (3) is: V C responsibility to family waste money
C throw it away (dont drink all of it) C C A gets warm too much to drink larger size
4. Age-regression Contrast Probe (*) Interviewer: You said you most often drink coolers at the bar. Why is that? Respondent: Ive never really thought about it. I just order them. Interviewer: Is there a difference in your drinking habits compared to a couple of years ago? (*) Respondent: Yes, I drink different types of drinks now. Interviewer: Why is that? Respondent: Well, before I used to be in college, and the only thing around seemed to be beer. Interviewer: So why do you drink coolers now? Respondent: Well, now I have a career and when I do go out I go with coworkers. Drinking a wine cooler looks better than drinking a beer. Interviewer: Why is that? Respondent: The bottle shape and the fancy label look more feminine Interviewer: Why is that important to you? Respondent: Its important to me to have a sophisticated image now that Im in the work force. I want to be just like my coworkers.
Laddering
V like my coworkers (belonging) C sophisticated image C more feminine A bottle shape A fancy label
Interviewer: You mentioned you drink wine coolers at parties at your friends house. Why do you drink them there? Respondent: Just because they have them. Interviewer: Why not drink something else? Respondent: I just like drinking coolers. Interviewer: Why do you think your friends have them at parties? (*) Respondent: I guess they want to impress us because wine coolers are expensive. They relate quality to how expensive it is. Interviewer: Why do they want to impress others? Respondent: Since coolers are new, they are almost like a status symbol. Interviewer So what is the value to them of having a status symbol? Respondent: My friends always like to do one better than anyone else. Its probably related to their self-esteem.
self-esteem
6. Redirecting Techniques: Silence (*)/Communication Check (*) Interviewer: You mentioned you like the carbonation in a cooler. Whats the benefit of it? Respondent: I dont think theres any benefit to carbonation. Interviewer: Why do you like it in a cooler? Respondent: No particular reason. Interviewer: (silence) (*) Respondent: Come to think of it, carbonation makes it crisp and refreshing. Interviewer: Why is that important? Respondent: It makes it thirst quenching, especially after mowing the lawn and is a pick-me-up. Interviewer: Let me see if I understand what youre saying. (*) What do you mean by saying a pick-me-up? Respondent: I mean after I finish its like a reward for completing a chore I dislike.
Laddering
Data Analysis Code all the responses Classify them into A/C/V You may need to club multiple responses under the same heading: for example, many of the responses may be clubbed under avoid the negatives of alcohol
Laddering
Data Analysis
Family Life 21
maintain respect of others better family ties self worth
| \ security | \ | camaraderie | \ | friendship | \ Accomplishment 20 | / \ | get most from life | / \ | \ | Impress Others 18 Socialize 19 \ | successful image (able to) \ | / \ easier to talk \ | / \ open up \ | / \ more sociable \ |
Reward 16
satisfying compensation / \
/ \ / / / \ Thirst-quenching 12 \
Belonging 22
SophistIcated Image 17
personal status how others view me / |
/
\ \ \ \
Avoid Waste 15
| |
\ \ \ /
/ / /
socially acceptable | \ | \ | \ |
| \
/
Refreshing 10
\
Quality 8
feel alert, superior product | \ alive product quality | \ / \ / \ | / \ / \ | / \ / \ | / \ / \ Label Carbonation Crisp Expensive (fancy) (+) 1 2 (+) 3 4
cant drink more | can sip \ \ | | | \ | | | \ | | | Bottle Less | Smaller Size (shape) Alcohol Filling (10 oz.) 5 6 9 7
Table 1: Summary Content Codes for Hypothetical Wine Cooler Example Values (20) (21) (22) (23) Attributes 1) Carbonation 2) Crisp 3) Expensive 4) Label 5) Bottle shape 6) Less alcohol 7) Smaller
Consequences 8) Quality 9) Filling (10) Refreshing (11) Consume less (12) Thirst-quenching (13) More feminine (14) Avoid negatives (15) Avoid waste (16) Reward (17) Sophisticated (18) Impress others (19) Socialize
Laddering
Data Analysis In terms of Values, there are 4 segments of this product category: Accomplishment Family Belonging Self-esteem
Laddering
Positioning We obtain the 4 segments We also get cues on the combinations of attributes and consequences leading to these segments We can position and communicate our positioning accordingly
Laddering
Laddering
Segment 2 Value: sense of belonging Attributes: crispness, bottle shape, expensive and fancy label Consequences: quality, impress others, sophisticated image
(1) segmenting consumers with respect to their values orientations for a product class or brand; (2) for assessing brands or products in a fashion similar to the use of more traditional ratings; (3) evaluating competitive advertising; and (4) as a basis for developing advertising strategies