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A Seminar

on
BRAND-BUILDING
ADVERTISING

Please use the CD in the FCB-Ulka Brand Building Advertising Cases book for the
advertisements and TV commercials needed for the Seminar. Posting them on the site would
have made the download slower.
Seminar Structure
Part I : Branding concepts
Part II : Brand-building Advertising
Part III : Consumer Products
Part IV : Consumer Durables
Part V : Services
Part VI : Corporate Brands
Seminar Part I

Branding Concepts
What Is a Brand?
A
service
A A
packaging logo
A
product

A
A
shop
country A
person
Brand = Product + Images
 More than just the product or the service
 Add the intangible images that come to mind
 Add the usage occasions that come to mind
 Add the user imagery that comes to mind

Brand = Values + Added values


Brand-building : The Focus
 Not just a one-off exercise
 Continuously track brand appeal, brand image
with target consumers
 Keep re-looking at all the aspects of the brand to
keep it relevant and attractive

End purpose : Attract and Retain customers


Understanding Brands : Aaker’s Model
Extended

Core

Brand
Essence

• Brand as Product Brand as Organization


• Brand as Person Brand as Symbol
• Value Proposition (Emotional/Rational/Self-expressive)
• Credibility (Support / Proof / Story )
The Kapferer Brand Identity Prism
PICTURE OF SENDER

Physique Personality

EXTERNALISATION INTERNALISATION

Relationship Culture

Reflection Self-Image

PICTURE OF RECIPIENT
Brand-building Advertising Seminar

Self-test -1

Brand: Amul
Draw Aaker’s model
Draw Kapferer’s prism
AMUL : Aaker’s Model
Extended

Core
Pride
Value Available
Brand Taste
Essence:
Milk
Quality Indian
Variety
Food
AMUL : Kapferer’s Prism

Physique : Personality :
Taste, Quality Simple, Indian

Relationship :
Sociable
AMUL Culture :
Co-operative, Sharing

Reflection : Self-Image :
Value Oriented Proud Indian, Fun loving
Brand-building: The Steps
Determine the current image with consumers

Define the desired image

Identify focus areas for action


•Product development/innovation
•Packaging/delivery systems
•Advertising/promotions

Implement action plan with


a monitoring programme

Feedback to action plan


Seminar Part II

Brand Building Advertising


 Objective of advertising
“Build the business today and build
brand value overtime”
 All advertising has to pass through this objective
test
How does Advertising build Brands?
Building brand salience
• TOM
• Unaided awareness - aided awareness

Building brand appeal


• Intention to try - trial
• Reinforce usage - increase usage

Building brand imagery


• Usage imagery - user imagery
Building Blocks for
Brand-building Advertising I
Market analysis
Size, volume, value, growth, geographic, seasonality

Company
Consumer analysis
analysis Brand •Size, profitability,
•Size, demographic, •distribution,
geographic technology
•Usage, depth, width

Competitor analysis
Size, profitability, strengths, weaknesses
Building Blocks for
Brand-building Advertising II
Market analysis + consumer analysis + company analysis + competitor analysis

Marketing objectives
Sales, market share, profits

Marketing strategy
Product, pricing, distribution, service, packaging
Advertising & sales promotion

Advertising objective
Awareness, salience,Image, attitude

Advertising strategy
Creative strategy,Media strategy
How Does Advertising Work I
Classic Hierarchy of Effect Model
Purchase

Conviction

Preference

Liking

Knowledge

Awareness
How Does Advertising Work II
 Hierarchy of effect model tends to assume that advertising works
the same way for all product categories
 Work on understanding Consumer Behaviour revealed that
advertising would work differently for different products
 Several new models were developed in the eighties and the
nineties
 One such model was the FCB Grid
• The Grid categorised products as
– High involvement Vs low involvement
– Thinking Vs feeling
How Does Advertising Work II
FCB Grid
High involvement Low involvement
Consumer is not involved;
Consumer is involved tends to see the utilitarian
with the product
values of the category;
category; identifies with
routine/quick decision
it and often takes time to
making
decide which brand to use
E.g.: detergents, fuel,
E.g.: TV, car, perfume, flour, mobile service (?)
clothes, insurance (?)
How Does Advertising Work II
FCB Grid

Think Vs feel

Think Feel
Consumer decides using his Consumer decides using his
head : heart :
‘Rationality’ drives the ‘ Emotionality’ drives the
choice of product/brand choice of product/brand
Advertising to fit FCB Grid requirements

THINKING FEELING

I) INFORMATIVE II) AFFECTIVE


HIGH LEARN-FEEL- DO FEEL-LEARN-DO
INVOLVEMENT

III) HABITUAL IV) SATISFACTION


LOW DO-LEARN-FEEL DO-FEEL-LEARN
INVOLVEMENT
Category Differences

Consumer Consumer
Services Corporate
Products Durables

Lower values Higher values Indeterminate No value

Frequent purchase Infrequent Indeterminate Variable

Narrow/Broad Narrow Target Variable Very wide/


Target customer Customer variable

Role of advertising in brand-building will tend to vary with


category type
Brand-building Advertising Seminar
FCB Grid - Self-test 2

Thinking Feeling
High
Involvement

Low
Involvement

Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile


Seminar Part III

Consumer Products
Consumer Products : What are they?

 Low value, repeat purchase, ‘consumption’ products


 Male target : Cigarettes, soft drinks, colognes
 Housewife: Soaps, shampoo, cooking oil, detergents
 Teenagers: Soft drinks, confectionery, stationery
 Repeat usage/purchase: everyday, every week, every
month
Consumer Products : Types
Often low involvement, routine purchase or What is the consumer issue
impulse purchase facing the brand?
• Poor awareness leading
to poor trial
• Poor repeat usage after
high trial
• Lack of desired image
Some consumer products could perceptions
be high involvement
Perfumes, Cigarettes What is the key task?
Health aids, Baby foods Attracting new users
Retaining existing users
Consumer Product Purchase Behaviour 1

 Who decides, who buys, who influences


• Map the key influences in the purchase
process
• Example
– Toothpaste : Housewife (decision maker)
Kid (influencer)
Consumer Product Purchase Behaviour 2
 Limited level of
information search
by consumers
 Often a routinised
purchase or an
impulse purchase
 Extended problem
solving only in the
case of innovation
– Cream for
‘foot cracks’
Consumer Product Purchase
Behaviour 3
 All India Household Category penetration
Soaps 99%
Washing cake 93%
Toothpaste 44%
Hair oil 77%
 Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI
 Consumer Product Life Cycle : What stage is the product ?
Introduction / Growth / Maturity / Decline
Role of Advertising

 Fitting into the AIDA /


 Going beyond :
hierarchy of effects using product
model category
information ;
• Awareness learn - feel - do ?
• Interest • Giving users the
• Desire desired image
messages
• Action • Attracting non-
users to the brand
Brand-building Advertising Seminar
Self Test 3
 Consumer panel data shows the following:
aaaabaacbabcbabbb
• a, b, c are three brands
• Draw three inferences from the data
• What should be the role of advertising for Brand ‘a’ ?
Santoor : A Case of Mistaken Identity
Santoor : A Case of Mistaken Identity

 Launched as a ‘Sandal + Turmeric’ soap by Wipro in 1986


 Attractively priced and a good product offering
 Conceived as an affordable soap with the goodness of Sandal
 Till then sandal seen as a high value ingredient only available
in Mysore Sandal soap
 Vicco making a success of sandal + turmeric cream
Santoor : Phase I Promotion

 Advertised as a ‘sandal + turmeric’ soap


 Offering “age old beauty secrets of India”
 Price flagged off at the end
 Traditional imagery of woman in sari,
temple, sandal paste
Santoor : Phase I Results
 Brand attracted decent volumes : 2,500 tonnes
 Got a core group of ‘Value oriented’ consumers to
try and remain with the brand
 But growth stopped in Year 2
 No new users coming into brand !
Santoor : The Challenge

 Need to retain the traditional users


 Need to rapidly attract new users
 Need to provide image values that will build the
brand for future growth
Santoor : The Brand Interrogation
 Sandal and turmeric traditional beauty aids in India
 What are their roles in skin care?
 Searched literature for finding how sandal and turmeric
are useful for beauty care
 The Secret: Skin Care
• Both are great skin care aids
• In fact help reduce wrinkles and impart a youthful
glow
Santoor : The Ingredient Vs The Benefit
 Santoor selling ingredients to a set of believers
 But not many knew of the benefits the brand and its
ingredients offered
 Why not move away from ‘ingredient’ based
advertising to ‘benefit’ based advertising?
 What if the core users moved away thinking the brand
has changed?
Santoor : Finding the Balance
 New advertising needed to present the brand in a
new light to attract new users
 But old users should not get alienated either!
 The answer : Benefit based advertising rooted in the
ingredients
 “Santoor cares for your skin because it contains the
goodness of sandal and turmeric”
Santoor : Skincare to Younger
Looking Skin
 Skin care, too broad an offer
 Narrowed down to younger looking skin
• Based on product interrogation
 Delivering the younger looking skin story
• “Mistaken identity”
• A common occurrence
• Based on a consumer insight
Santoor Press Ad
Santoor TVC : Book shop
Santoor TVC : Marriage
Santoor TVC : Aerobics
Santoor : The Growth Path

 New advertising broke in 1989 - the brand sales have


climbed consistently over the last 12 years
 Santoor has outperformed the market constantly
 Built a brand without
• Mega media budgets
• High-power sales force
• Major technological innovations
Brand-building Advertising Seminar
Santoor : The Challenges Ahead - Self Test 4

 What should be Santoor’s next moves in building a strong brand?

Brand Extentions

Advertising

Promotions
Captain Cook Atta - Farmer to Home
Captain Cook Atta - Farmer to Home
 Captain Cook Salt launched in mid eighties
 After a few false starts established a strong hold in
the market against Tata salt with the “free flow”
feature
 Captain Cook brand seen as an aggressive,
combative, young brand
 Plans on to extend Captain Cook to other food
products
Captain Cook Atta : The Kitchen Story
 Atta primarily bought as grain and milled at a local
“chakki”
 Housewife uncomfortable with packed branded food
products
 Suspected a loss of control over the cooking process
 Also suspected ingredients, process, additives
Captain Cook Atta : Atta - the Centerpiece
 Housewife derived self-worth from the appreciation of
cooking from family members
 Atta seemed to be critical to the cooking process - a major
concern area
 Most households were into buying grain carefully and
getting it milled
 Very low penetration of packed branded atta
 So a problem with many dimensions!
Atta - Problem Dimensions
 Atta - critical to cooking
 Atta rarely bought in packed form
 Ingredient of atta critical to final product
 Low faith in packed food products
 Unwilling to give up control over cooking
 “Loss of control” - a fear
 “Fear of taste back lash” - another fear
Advertising Tasks
 Create awareness of the new offering ‘packed -
branded - atta’ from captain cook

 Build conviction to try the brand by addressing


key consumer concerns
Captain Cook Atta : Key Trigger

 Consumer research revealed that


• Quality of grain is key
• Consumer suspicious of quality of grain
 Will the consumer try the new offering if
convinced?
Captain Cook Atta: Sugar-coating

 How to make the story even more credible?

 How to break through the consumer apathy and


incredulity?
Captain Cook: Storyline
 Make the brand protagonist an expert
• A farmer’s wife
 Create disbelief in taste of atta
• Consumer’s current mindset
 Build and anchor the story around one key issue
• Quality of the grain
Captain Cook: Media Thrust
 Focussed inputs through TV medium with long
format TVC

 High impact, long burst of TV advertising

 Supported with only outdoor medium


Captain Cook Atta TVC
Captain Cook Poster
Captain Cook : Impact
 Captain Cook Atta virtually created the branded atta
market
 Moved consumers from ‘grain + chakki’ orientation to
packed brands
 High trial rate and reasonable retention attracted
attention of the food majors
 Leading to a boom in the branded atta market
Brand-building Advertising Seminar
Captain Cook Atta: Self - Test 5
 What would have been a more brand focussed message ?
 Will the advertising done in 1996 work in 2002 ?
Seminar Part IV

Consumer Durables
Defining Consumer Durable

 Unlike consumer products (FMCG) which are ‘consumed’, a


consumer durable is ‘used’ for extended periods
 Since it is used and for long periods, the consumer tends to
look at them differently
 Consumer durables could be:
• High value: washing machine, car, scooter, TV
• Low value: ceiling fan, mixer/grinder
Key Differences

Consumer Product Consumer Durable


- Relatively low value - Relatively higher value
- Repeated purchase every - Infrequent purchase every
week/month five years +
- Routinized purchase - Extended problem solving
behaviour purchase
- Less persons involved in - More persons involved in
purchase purchase
- Less information sought - More information sought
- More emotional decisions - More rational decisions
Types Of Consumer Durables
 The more expensive more complex durables
• Cars, TVs
• Call for more information, more search
 Less expensive, less complex durables
• Sewing machine, steel cupboard
• Call for less search
 Complexity of purchase will also be dictated by the SEC of
the consumer:
• Two wheeler Vs car
• Mixie Vs cooking range
• Fan/air cooler Vs air conditioner
Seasonality of Consumer Durable
Purchase
 Often consumer durables account for a large part of the household
income:
• Car = 12 months income
• TV = 1 months income
 Purchase is planned out over a long period of time
 Specific seasonal peaks
• Diwali : All durables
• Pre-summer : ‘Cooling’ aids
• Wedding season : All durables

• September/March - Depreciation benefits


Sources Of Information
 Extended search of information hence many sources of information:
• Word of mouth : from other users of the product/brand
• Dealers : sources of deep knowledge
• Experts : mechanics/service engineers
• Advertising : mass media - press, TV
• Literature : comparison across brands/models
• Internet : In US 40% all car buyers use the net
for information
 Unlike consumer products many more sources are used for
collecting, analysing information before a purchase decision is
made
Key Areas Of Enquiry

 Product oriented
 Service

• Key features of the product • After sales service set up


• Models available • Installation and maintenance
 Pricing
 Running cost
• Price comparison across models • Fuel consumption, electricity
consumption
• Financing options available  A brand reputation
 Availability
• Reputation of the brand
• Dealer points available
• Reputation of dealer
Indian Consumer Durable
Penetration
All India Household Penetration of key durables:
Washing Machines 2.7%
Refrigerators 11.1%
Two Wheeler 4.7%
Cars 0.5%
Mixie 17.0%
Analyse penetration by Urban / Rural, SEC, Town Class, Region,
etc.
Advertising Issues For Consumer
Durables
 Increase penetration
• Sell category benefits
• Offer ‘value’
 Increase ‘upgradation’
• Sell higher-end features
• Offer ‘style’
 Increase per-capita usage
• Sell special ‘niche’ features
• Offer special benefits
FCB Grid For Durables
 Durable by definition are high-involvement
 But are all of them rational/think?
 Or is there an emotional touch?
 Should all consumer durable advertising be high-
involvement - think focussed?
How To Advertise
 Depends on the type of durable, the target audience, the
features offered, the competition
 Emotional touch will work if - features are all similar,
competition high, consumer is not rational in purchase
 Features based appeal if - brand offers unique features,
competition is not in a position to match
 Benefit based appeal if - brand model offers unique benefits
(quick ice), not yet capitalized by competition
Role Of Advertising
 Consumer durable advertising cannot ‘sell’ the brand since purchase is
often complex
 Advertising to
• Create awareness
• Disseminate information
• Build conviction
• Drive visit to dealers for
– Enquiry
– Demonstration
 The final sale is clinched at the dealer showrooms
Role Of Advertising
 Often advertising’s job is to get the brand into the
consumers CONSIDERATION SET
 Entry into consideration set will make the consumer seek
and analyse more information about the brand/model
 Build conviction of current users to reduce post purchase
dissonance
 Aid word-of-mouth and positive ‘buzz’ about the brand
Brand-building Advertising Seminar
FCB GRID for Durables - SELF Test 6

 Plot : 21” colour TV


Ceiling fan
Car
Steel cupboard
Scooter
Computer
VOLTAS - MEGALAUNDRETTE:
Making Impossible Possible
VOLTAS - MEGALAUNDRETTE:
Making Impossible Possible
 Mid 90’s - Indian consumer discovering washing machines
 Decrease in excise duty making washing machines more
affordable:
“Do you want us to be known as a country of maids?”
– Prime minister P V Narasimha Rao
 Influx of over 25 brands:
• Videocon, TVS Whirlpool, Maharaja, IFB, BPL, Godrej, National

 The market getting overcrowded in a very short period


Voltas - Entry
 Voltas : Top three refrigerators manufacturer
 Keen on expanding portfolio and use the manufacturing
and distribution network
 Washing machine identified as the category to consider
 Technical tie-up with Samsung for import of key
components
Positioning
 All washing machines claimed:
“Whitest wash”
“Quickest wash”
“Easy wash”
 Some were using jargon to sell better cleaning:
“Turbo clean”, “Pressure clean”, “Hand wash clean”
Understanding Consumers
 Indian consumers traditionally used to give clothes out
to laundry for washing
 Influx of detergents and washing machine had reduced
outside help to only ironing and dry cleaning expensive
clothes
 Expert cleaning still seen to be outside the home
domain
 ‘Laundry’ cleaning seen as the ultimate
Voltas Washing Machine
 The range positioned as the “LAUNDRETTE RANGE”
 Voltas Launderette offers “laundry level of cleaning”
 Thus moving out of the confines of the white, quick wash
offered by other brands
 The brand launched with a range of machines under the
umbrella
 Quandry: which model to promote?
Product Interrogation
 Examined all the models offered by Voltas and all
other Indian brands
 Analysed all the claims and offers made by Indian
brands
 Looking for a distinctive promise that is relevant,
believable and unique : The RUB TEST
The Different Differences
 Voltas offered a large capacity washing machine - not matched by
any other brand
 Large capacity seen by Indian marketeers as just a size offering
without any real value
 Can size be the differentiator?
 Indian families are large
 Clothes tend to get dirty everyday and need to be washed
 Can size be offered without diluting the key benefits of washing
clean?
Voltas Megalaundrette
 The brand name Megalaundrette - coined to
reinforce size and ‘laundry clean’ cleaning
 The promise: The biggest size in its class
 The benefit: more clothes can be washed at one
time - as required by large Indian families
The Campaign
 TV commercial built on the incredulity of a home
situation where many clothes are washed at the
same time
 A humourous jingle based TVC that drove home
the size advantage
 Without showing dirty clothes or washing
 Yet giving a clean look to the brand
Voltas Megalaundrette TVC
Voltas Megalaundrette Press
The Result
 Voltas Megalaundrette was primarily promoted
through TV with dealer support material that
played back the TV message
 Voltas saw a huge income in dealer traffic - the
third most enquired brand for the campaign period
 Voltas Megalaundrette advertising entered
advertising ‘hall of fame’
Brand-building Advertising Seminar
Voltas - Self Test 7
 Is it possible to identify two more such non-primary
benefits for promoting washing machines?
GODREJ Storwel - Treasuring
Memories
GODREJ Storwel-treasuring
Memories
 A heritage brand that is over 50 years old
 Origins of the brand date back to the days when
Godrej used to make ‘safes’
 Storwel product conceived as an affordable safe
for keeping the family valuables
 Godrej pioneered the product category and sold it
through exclusive showrooms
Changing Consumer
 The need for ‘safes’ saw a decline in the 60s and
70s with banks taking the role of safe keeping
 Godrej Storwel transformed to become a reliable
cupboard for keeping family clothes and valuables
 The model extended to offer a variety of inside
partitions
Enter The Competition
 Godrej Storwel was made through a process called
‘cold rolled’ - resulting in high quality but also
high price
 Organized competition enters in the form of
Chandan, Allwyn and numerous regional brands
 Bigger threat from small unorganized players
offering same looks for half the price
Quality Paradox
 Godrej Storwel stood for ultimate quality in steel
cupboards - no rusting, no chipping, perfect finish, no
gaps etc
 Local brands offered reasonable quality but the
differences (like rusting/chipping) surface only after 5 to
10 years
 The quality paradox was hence not perceived by the
consumer who saw ‘value’ in the local brands
Selling Quality
 Godrej Storwel stood for ultimate quality but
• Did the consumer want that level of quality?
• Was the price-quality trade-off relevant?
• Can Godrej Storwel sell on just quality?
Understanding Consumers
 Godrej Storwel had a huge reservoir of goodwill with
consumers
 Consumers associated it with happy occasions:
weddings, childbirth, growing-up
 Storwel was not just seen as a steel cupboard but as a
member of the family, who grows with the family
 Can this be the way to sell the brand?
EMOTIONAL Vs RATIONAL APPEAL

 Consumer durables are often high-involvement rational


purchase
 Godrej Storwel had a 50%+ premium over the local brand
 Should Godrej Storwel sell on rational reasons like better
steel, better fit/finish, long lasting etc.
 Or should it sell on emotional reasons: warmth, family
values…. Long lasting
Emotional Rescue
 Can Godrej Storwel be sold on emotions, if so how?
 Research revealed that Godrej Storwel is bought during
specific occasions - marriage
- New baby
- New home
 Advertising route was taken to link these happy moments
with Godrej Storwel
 A series of jingle based commercials were produced
Pre-test To Study Impact
 The TVCs tested in an animatic form to study impact and
attitude change
 Scored high on break through/cut through
 More importantly improved attitude on
- Good value
- Long lasting
 In fact built emotional bonding with consumers while
subliminally strengthening rational benefits offered by the brand
Godrej Storwel TVC : Wedding
Godrej Storwel TVC : Mother-to-be
The Campaign
 Godrej Storwel campaign on emotional plane was
started in 1986 and continues today 15 years later
 Godrej Storwel continues to command a premium
in the market and sells in the face of newer
competition
Brand-building Advertising Seminar
Godrej Storwel: Self Test 8
 What other brand-building initiatives would be
needed to keep Godrej Storwel strong in the next
decade?
– Product initiatives
– Promotion initiatives
 Can you name a couple of other durable brands
who have used emotional appeal?
Seminar Part V

Services
What Are Services?
“One day all brands will be service brands!”
 When a success of an automobile depends on service
network?
 When a durable brand depends on the pre-sales and
after-sales service?
 When a consumer product purchase can be
influenced by the retail environment?
Services Brand Types
 Services are bought by consumers, at times without being conscious of the brand image
• A telephone service
• An airline
• A hotel
• ATV channel
• A website
• A bank
• A retail chain
 All these and more are services that consumers buy, everyday - but are they brands?
Services Brands - Relevance
 Telephone service : MTNL Vs BPL Vs Orange
 Hotel : Taj Vs Quality Inn Vs Welcomgroup
 Bank : State Bank Vs Citibank Vs Central Bank
 Branding concepts have been applied to services not too long ago - and
the art is still being perfected
 When a customer chooses a bank what are the reasons:
- The location
- The word-of-mouth
- The decor
- The staff
- The ‘brand’?
Services Brands - Emerging Trends
 Services marketeers are discovering the power of
branding and integrating all elements under a brand
image umbrella
– Logo identity
– Look and feel
– Décor of premises
– Uniform of staff
– Communication
Services Brands - Image Perceptions
 Often more complex than an FMCG or durable
 High reliability on the human element
 Every interaction with the services brand could lead to
image change
 Need to bring about uniformity
• Staff training is key
 Coupled with pricing, decor, ease of use, location,
communication
Services Penetration
 All India Household penetration of a few services :
Telephone 6.8%
Bank Account 17.5%
Cell Phone 0.2%
Analyse the data for urban / rural, SEC, regions etc.
Role Of Advertising
 Services brands are built by the human involvement of customers with the brand (and its
employees)
 Advertising can be used to reinforce the service image
- Singapore airline - Singapore girl - friendly service
- British airways - world’s favourite - reliability
 Advertising can be used to
- Build awareness - for a new service or to a new segment of customers
- Communicate features/benefits - a new service addition
- Generate enquiries - call for action
- Build Image - premium image, usage imagery, user imagery
Services Advertising Paradigms

•Two classical ways services use advertising

Information Driven Image Driven


- Introduction of new service - Image of the user
- New pricing plans - Image of the usage occasion
- New offers - Cue type-of-desires fulfilled
- New features - Imply self image
- Rational focus - Emotional focus
Advertising After Sales
 Services brands like airlines, banks, telecom, need to retain
customers over the long term to build profitable segments
 Often cost of acquiring a new customer is six times more
expensive than retaining an existing customer
 Special route of Direct and Customer Relationship
Management are used to retail and build customer bonding
Building Customer Relationships
 Services brands need to fellow a step-by-step
process to build customer relationships
• Identify customers
• Understand the need of the customers
• Tailor value propositions
• Test the propositions
• Make offers to customers
• Reward long-term usage
Building Customer Loyalty

 Services brands that attract high loyalty achieve long-term


success
 Loyalty programmes
Frequent flyer miles : airlines
Bonus points : credit cards
Discount cards : retail
 Coupled with the loyalty programmes services brands offer
- Special services to loyal customers
- Special prices to loyal customers
- Special messages to loyal customer
- And communicate regularly with them
 In short make the loyal customer feel special!
Brand-building Advertising Seminar
FCB Grid - Services Brands - Self Test 9

 Services come in all types


• Basic telephony
• Shares
• Insurance
• Hotel
• Airline
Bangaram Island Resort : Thank God !
Bangaram Island Resort : Thank God !

 An independent island in Lacadives


 Popularised by Rajiv Gandhi’s family holiday in the
90’s.
 Run by the Casino group of Cochin
Bangaram Island - The Brand

 Not just a hotel built on an island!


 Resort conceived as a brand:
“To be one with nature”
 Resort built with eco-friendly material
 No telephones, no TV, no cable
 No alcohol, no soft drinks, nothing artificial
The Concept
 Conceived as a resort with a limited number of
rooms
 High prices to ensure high quality up keep and
nature support
 Targeting the right audience
Selling The Concept To Whom?

 Primary target - the sophisticated western


tourist
 Secondary target - the evolved domestic tourist
Tourism Hierarchy
• Indian tourist moves up the hierarchy of type of holidays
Visit to home town / village

Pilgrimage / holy city trip

Visit big city

Visit hill station / beach resort

Visit international big cities

Visit exotic domestic locations


Bangaram fitted in here
Attracting International Tourists
 High cost of advertising in international press
 However need to build word-of-mouth in western
markets
 Targeted the specific travel agents and travel writers
 Invited this elite group for a holiday to Bangaram
 Resulted in excellent write-ups in high profile travel and
holiday journals
Attracting The Domestic Tourist

 Given the size of the hotel mass media


advertising is prohibitively expensive
 How to target the top end holiday customer with
limited budget?
 How to build high-image appeal with limited
spend levels?
Narrow Casting Message
 Target audience definition focus let to narrow
casting to the upper-upper income intelligentia
in the top four cities
 Further analysis revealed that reach of financial
papers reasonably high with the narrow casted
target
 Need to appeal to this target with the right
message, in the right scale
Message Focus
 Message delivered has to bring out the “one with
nature” theme of the brand
 Message had to be attractively packaged to almost
make the brand temptingly close
 Build a response mechanism to capture interested
target audience names
The Campaign
 One ad in only one paper (Economic Times) was all
that was affordable
 A large sized ad that could not be missed
 With a response coupon to capture data
 Over 1500 responses for one ad
 Build the first batch of Indian tourists to Bangaram
 And they became the brand advocates!
 Bangaram did not advertise again!
Bangaram Press Ad
Brand-building Advertising Seminar
BANGARAM : Self Test 10
 What could be other modes of marketing
communication that could have been used by
Bangaram?
Escotel - Building A Cellular Family
Escotel - Building A Cellular Family

 Escotel - the cellular company from the


Escorts group
 Licensee for western UP, Haryana and Kerala
 One of the first movers in the cellular
industry
Cellular Market Then
 Cellular services had just entered Delhi, Bombay,
Calcutta and Chennai
 Relative lack of understanding of the utility values of
cell phones
 First users were all the status conscious
 Cell phones became the status symbol of the rich and
famous
 High price of handsets and airtime did not help either
The Target Markets
 Haryana / western UP and Kerala very different in
behaviour
 Haryana and western UP had typical north Indian
characteristics
• Propensity to show off
• More talk, more show
• Keeping-up-with-the-Jones
 Kerala market significantly different
• More educated
• More value oriented
• More ‘international’
Escotel Challenge
 A completely unknown company in telephony
 No perceived knowledge base in electronics (like
BPL) or telephony (Bharti)
 However Escorts had a big name (in automobiles)
and had a loyal support base
 How to leverage this base into a useful movement?
Escotel Sansar
 Created the concept of ‘Escotel Sansar’, the
Escotel family
 This new family stood for the new aspirations
of the modern customer
 Captured the ethos of Escorts: long-standing
trust and value
Escotel Values
 To sell the service with price plans or to sell
brand values - the first challenge
 Need felt to sell Escotel as a brand that stood for
new hopes, new horizons, new aspirations of
todays’ consumer
 Avoided the price based advertising in the first
full phase of launch
Escotel Customer - North / South

 Tailored the message to suit the two different


set of customers
• North : builder, family man, industrialist
• South: doctor, film maker, marine exporter
 While keeping the overall values similar and
appealing
Escotel Press Ad 1
Escotel Press Ad 2
Escotel Press Ad 3
Escotel Press Ad 4
Escotel Launch
 The effort at brand-building advertising paid off
 While competition focussed only on price based
advertising, Escotel’s mix of messages built a true
Sansar
 Leading to market dominance in all the three
markets
Brand-building Advertising Seminar
ESCOTEL : Self Test 11

 Escotel brand advertising’s relevance in


todays’ setting?
Seminar Part V

Corporate Brands
What Are Corporate Brands

 Corporate brands go beyond a product, a service or a product range


 Depending on the branding structure used, a corporate brand can be
• An endorser
• A driver
• A support
 Very difficult to typecast corporate brands
• TATA - sometimes endorser, sometimes driver
• GE - often driver
• SONY - often driver
• Reliance - support
• Wipro - driver - endorser
Corporate Brands in the
Branding Structure
Corporate Brand: Tata Tata Tata (Tata) (Tata)

Service / Product Indica ‘Tea’ ‘Salt’ Taj Titan


Brand:
Line Brand: V2 Residency Raga

Features: Widetread Garden Iodised


Fresh
Product: Car Tea Salt Hotel Watches
The Differences in Corporate Brands
 Some corporate brands go on products:
Sony Walkman, Sony Vaio
 Some corporate brands stay as endorser
 Some corporate brands stay out of lime light: P &
G, Lever
The Differences Across Categories

 Unlike FMCG brands and durable brands, corporate


brands have several key differences
• Multiple products or service
• Multiple target customers
• Multiple target audiences
• Not focussed on selling
• Brand salience focussed
• Brand image focussed
Corporate Brand Target Audiences
 Varied target audiences - many stake holders
• Customers - heavy, medium, light
• Associates - suppliers
• Trade - distributors, retailers
• Employees - across departments;
potential
• Shareholders - stake holders
• Government - local and central
• Industry bodies - associations
Corporate Brand Values &
Ownerships
 Corporate brand values need to transcend narrow
boundaries of products and services
 Three large areas of focus
• Innovation
• Value
• Service
 “The customers decide on the fate of brands, they own
the brands” : Economist
Corporate Brands reflect the
Leader’s Vision
 Across the world the leader’s personality reflects on the corporate
brand:
• Richard Branson - Virgin - outrageous / young
• Jack Welsh - GE - aggressive / growth
• Karsanbhai Patel - Nirma - value / quality
 Founder’s personality often stays on with the brand they have created:
• Akio Morita - Sony - innovation
• Henry Ford - Ford - value
Building Corporate Brands
 The founder/CEO is often the biggest medium
 Use of multiple communication tools:
• Public relations - press/media coverage
• Identity programme - logo, stationery, signage
• Retail presence - outlets, service
• Corporate communication - annual reports, offices,
buildings
• Advertising - media, direct, internet
Corporate Brand Advertising
 Role of corporate advertising varies in consumer
products, consumer durables, services and business
selling environment
 Corporate advertising is often beyond products and
revenues
 To project the deeper ethos of the brand, the one key
variable that unites all that the brand offers, through
various product and services
Brand-building Advertising Seminar
CORPORATE BRAND’S ROLE: Self Test 12

 Corporate brand is an
• Invisible endorser
• Strong endorser
• Driver
 Categorise the following brands with examples
• Nirma - Britannia - Whirlpool
• Unilever - Panasonic - HP
Wipro - Applying Thought
Wipro - Applying Thought
 Origins in the edible oil industry
 Vanaspathi manufacturing under Wipro Sunflower brand
name
 Diversified into soaps and toiletries in the eighties
 Tasted success and expanded range into diverse areas
Wipro - Beyond Oils

 Entered computer hardware business


• Super genius computers
 Followed this with entry into computer services and
software
 Wipro lighting division, Wipro medical systems set up
in 90’s
Wipro - In 1998
 A Rs. 1500 + crore group
 Over 70% of turnover from infotech business
 Changing the profile of the corporate brand seen to
• Reflect the new energy
• Make the corporate more attractive to investors
• Make it a destination company for talent
Wipro - Mining Consumer Minds

 What does Wipro stand for in the consumer’s minds?


 Research to delve into the perceptions of consumers soaps,
lighting
• Computer hardware
• Computer software
 Wipro seen as a sensible ‘thinking’ company
• Lending to the tag line “applying thought”
Signalling A Change: A New Look
 Wipro corporate logo changed to a colourful rainbow flower
 The colours indicating high vibrancy, new energy, new look
 Corporate identity revamped to reflect the new look
 Four key missions identified
• Value
• Innovation
• Service
• Integrity
How To Communicate The New Wipro
 ‘Applying thought’ - a rational way of doing
business
 Bringing the concept alive - possible through
identifying specific stories that bring alive the
‘applying thought’
 Present Wipro as a caring company that is:
‘thinking about you’
Wipro Corporate Campaign
 Build on real life stories of applying thought
• Baby soap - with milk & almonds
• Lighting - 30% more life
• Hardware - built to suit tough Indian conditions
• Software - high end telecom application
• Service - computer service levels
Wipro Corporate Brand Activities

 Press campaign supported by outdoor


 Public relations to get stories on the new Wipro
 Increased investor relation, corporate brochure, annual
reports etc.
Wipro Press Ad 1
Wipro Press Ad 2
Wipro Press Ad 3
Wipro Corporate Brand
 Brand salience improved from ‘unknown’ to
‘known’
 Stock market boom aided Wipro’s climb to the top
 From being in the 25th position on most admired
corporate brand, Wipro climbs to top 5 in three
years
Brand-building Advertising Seminar
WIPRO CORPORATE: Self Test 13
 What could be other methods Wipro could use to
build the Corporate brand?
Tata Lucent: Telecom Revolution
Tata Lucent: Telecom Revolution

 Tata Telecom set up to manufacture EPABX systems


- aimed at the large corporate segment
 Tata Telecom selling through dealers and own sales
executives to large accounts
 Joint venture with Lucent Technologies
Lucent Technologies : Powerhouse
 Lucent Technologies - the equipment company spun off from
AT&T
 Lucent world leader in telecom equipment catering to the large
sector
 Lucent’s heritage from Bell Labs of erstwhile AT&T
 Bell Labs to one of the world leaders in technology patents !
Tata Lucent: Task Ahead
 Tata Lucent plans to enter the high end telecom market
 Target audience
• Private telecom companies
• Cellular companies
• Govt. Sector (telecom)
• Large organisations
Customer Perceptions
 Tata Telecom seen as a reliable telecomy partner
 However not seen as technologically advanced
 High trust from the Tata name but not seen as cutting
edge technology
 High profile competition from brands like Alcatel,
Siemens and Japan companies
Need To Build Corporate Brand

 Tata Lucent planning to launch a range of telecom


systems under various brands like ‘Infiniti’
 Will the consumer accept the high end offering?
 What is the relative perceptions of Lucent?
 Very low awareness of Lucent - Bell Labs connection
and importance not widely known
The Need For Brand
 Tata Lucent brand facing competition from Alcatel
and Siemens - high-tech image
 Target customers primarily telecom companies and
large corporates
 Why should they look at Tata Lucent!
• How big is Lucent?
• What is their competence?
• What can they offer?
Tata Lucent - The Campaign
 Focussed on the technology achievements of Bell Labs
 Highlighted the Bell Labs origin of Lucent
 Presented Tata Lucent in a high tech environment
 Broke through the clutter and achieved very high break
through
Tata Lucent Press Ad 1
Tata Lucent Press Ad 2
Tata Lucent Press Ad 3
Tata Lucent Press Ad 4
Brand-building Advertising Seminar
TATA LUCENT - Self Test 14

 Could Tata Lucent have used any other platform


other than technology/innovation?
Summing Up :Brand-building Advertising in 10
Easy Steps
Define brand values
Understand competitive framework
Understand consumer behaviour
Understand the role of advertising
Define the short and long term brand objectives
Define communication objectives
Develop communication strategy
Evolve the creative strategy to drive the message
Plan and place media : media strategy

Build a tracking mechanism


Thank You !

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