BRAND BUILDING STRATEGIES

BRAND BUILDING STRATEGIES

¨ PRODUCT BRANDING

This is of the type one-brand one product. In terms of customer perception and information processing, the most effective way to designate a product is to give it an exclusive name, which would not be available to any other product. In the product branding strategy the brand is promoted exclusively so that it acquires its own identity and image. This way the brand is able to acquire a distinct position in the customer’s mind. The thrust is on making the brand acquire its ‘own’ set of associations and stand on its own. Product branding allows a brand achieve exclusivity and differentiation. It does not share other products and does not take on company associations. The company’s name takes a backseat and the product does not get benefits from the company name. The greatest advantage in this case is that a brand can be targeted accurately to a distinct target market or customers because its positioning can be precise unambiguous. Customers connect easily with product brands since what the brand represents tends to be clear.

P&G have been follower of the product branding strategy. P& G’ s into baby care, beauty care, feminine care, health care, fabric care, home care, food and beverages, etc. P&G has been an ardent follower of the product brand strategy. Its brands are stand alones; people don’t even know that they all share a common root in P&G. the company does not share a common identity. So the customers do not exclaim: Oh! How can a company like P&G make Pringle Potato Chips, it is a detergent company. Thus, a company following product branding is better positioned to venture into unrelated areas of activity without being a subject of market scrutiny.

Another advantage is that with an identifiable brand uniquely positioned and directed at a segment, the firm is able to cover an entire market spectrum by making multiple brand entries.

The drawbacks of product brands are essentially cost based. Creating individual brand is costly exercise. Only the firms which have deep pockets and long staying power can adopt this strategy.

¨ LINE BRANDING

This is of the type ‘One brand many products’. Sometimes a brand is launched with a distinct concept e.g. Lakme (“source of radiant beauty”) Winter Care lotion .The brand appeals to a distinct market segment who appreciate and like the brand concept. The core idea is that the brand connects with the consumer group. Now the customers do not tend to be content with the one product, which the brand offers. Rather they want additional product which go hand in hand with the brand concept or application; for example a Lakme user wants all the products which enhance beauty-beauty lotion, deep pore cleansing cream, lipsticks, nail enamel, eye make up etc.

Line branding strategy illustrates how well cultivated brand can be extended on to a host of related products under a common concept. This strategy seeks to penetrate the customer rather than penetrating the market. It seeks to fulfill all complementary needs that surround a basic need. Line brands start with a product but later extend too a whole range of complementary products. The products in the line draw their identity from the main brand. Marketing products as a line enhances the brand’s marketing power rather than selling them as an individual brand.

¨ BRAND EXTENSION

Brand extensions, which are a popular means of introducing new products to the marketplace, fall under the ‘One brand all products’ type of brand strategies. In a typical brand extension situation, an established brand name is applied to a new product in a category either related or unrelated, in order to capitalize on the equity of the core brand name. Consumer familiarity with the existing core brand name aids new product entry into the marketplace, and helps the brand extension to capture new market segments quickly.

Brand extensions come in two primary forms: horizontal and vertical. In a horizontal brand extension situation, an existing brand name is applied to a new product introduction in either a related product class, or in a product category completely new to the firm. A vertical brand extension, on the other hand, involves introducing a brand extension. In the same product category as the core brand, but at a different price point and quality level. In a vertical brand extension situation, a second brand name or descriptor is usually introduced alongside the core brand name, in order to demonstrate the link between the brand extension and the core brand name (e.g. Marriott Hotels, Courtyard Inn by Marriott). Although a brand extension aids in generating consumer acceptance for a new product by linking the new product with a known brand or company name, it also risks diluting the core brand image by depleting or harming the equity, which has been built up within the core brand name. An inappropriate brand extension could create damaging associations, which may be very difficult for a company to overcome. The different types of brand extensions are:

Product form extension:

Product launched in a different form usually means line extension rather than brand extension. But if different product form constitutes entirely a different product category from customer behavior perspective, it would be called brand extension. For e.g. liquid milk and dried milk may not be perceived as the product category. Similarly chocolate bars and chocolate powder belong to different product categories.

AMUL MILK ==============> AMUL CONDENSED MILK

Product form extension

Companion product

Brand extension is in the form of companion products is perhaps the most common. The idea perhaps is to capitalize on product complementarily. The consumer may view both products jointly and hence, provide scope for launching brand extension.

Colgate Dental Cream =================> Colgate Tooth Brush

Customer franchise

A marketer may extend a product range in order to meet the needs of a specific customer group. For instance, a company may launch a variety of products meant for e.g. nursery going school children. The focus here is not customer base but their diverse needs.

CUSTOMER FRANCHISE

Company expertise

Brand extensions often come in the forms of different product category introductions using a common name but emanating from common expertise pool. This strategy is particularly true in Japanese companies.

Honda cars ===> Honda Gensets ===> Honda Scooters ===> Honda Lawnmovers

Brand distinction

Many brands achieve distinction in the form of a unique attribute, benefit or feature, which gets uniquely associated with the brand. In such situations the company can work backwards to launch different products, which essentially cash in on this distinction. For

example, Parachute may have the expertise of coconut nourishment in customers mind over time. This would give the company Marico the opportunity to launch a variety of products exploiting this distinction.

Parachute hair oil ===> Parachute Shampoo ===> Parachute Cream

Brand image or prestige

A brand extension may involve a foray in to unrelated product categories based on a brand’s exclusive image or prestige. Brand exclusivity or prestige bestows great extension opportunities. This is particularly true of designers and artist brands.

Cariter Jewellery ===> Cartier Watches ===> Carties Purses ===> Cartier Pens

¨ UMBRELLA BRANDING

This again is of the type ‘One brand all products’. An umbrella brand is a parent brand that appears on a number of products that may each have separate brand images. Firms have a short-run incentive to reduce quality and save costs, as consumers can only observe quality ex post.

E.g. Phillips has a whole range of home appliances under the brand name Phillips. Like the mixers, irons, televisions, etc.

Umbrella branding scored well on the dimension of economics. Investing in a single brand is less costly than trying to build a number of brands. By leveraging a common name across a variety of products, the brand distributes its investment. Hence umbrella branding works out to be an economical strategy. Using an umbrella brand to enter into new markets (e.g., Tata making a foray into the automobile car market) allows considerable savings. The brand bestows the new product advantages of brand awareness, associations and instant goodwill.

One first explanation for brand extensions is that umbrella branding is a form of economies of scope, as it economizes on the costs of creating a new brand. Brands have an intrinsic value (status or otherwise) and are therefore like a “public good” in the sense that the more products are sold under the same brand the greater the total value created. A different perspective on brand extensions is that, in a world where consumers are uncertain about product characteristics (due to horizontal or vertical differentiation), brands may play an informational role. Umbrella branding may reduce uncertainty about a new product's attributes, a fact that increases value if consumers are risk averse. Considering these factors it can be said that umbrella branding is a superior strategy when there is a significant overlap between the set of buyers of each of the firm's products. This result extends the well-known notion that brand extensions and umbrella branding are only successful if there is a good fit between the different products under the same umbrella.

The main danger associated with umbrella branding is that since many products share the common name, a debacle in one product category may influence the products because of shared identity.

¨ SOURCE/DOUBLE BRANDING

Source or double branding strategy combines the firm’s name with the product brand name. It is the hybrid of umbrella brand and product brand strategy. The product is given a brand name and is combined with the name of the firm.

For example, Chetak is the name of the scooter and Bajaj is the company behind it, the brand accordingly becomes Bajaj Chetak.

Both names are given equal status and enjoy equal importance in the brand’s communication. Firms that follow double branding include Maruti(Maruti 800, Maruti Zen, Maruti Baleno), Bajaj (Bajaj sapphire, Bajaj pulsar), etc.

Source branding by combining a firm’s name with product name seeks to achieve two objectives. First, the firm’s name brings its equity to the product. The product stands to benefit from what the company has been able to cultivate in terms of awareness expertise, attribute and reputation associations. When Bajaj name is added to a new brand like Legend, immediately Bajaj’s, and repertoire of associations are transferred onto one product. Secondly, the second name, the name of the product (e.g. Legend) provides the chance to add something unique to the brand the brand. This is an opportunity for customization and personalization. That is, the brand can stand for something over and above what Bajaj stands for. The brand can acquire its own image in the broad framework of corporate image. This way the brand can reach new consumer groups or market segments.

Double branding is somewhat an extension of the umbrella strategy. Each brand tends to share something common- the identity and image of the source company behind the brands.

¨ ENDORSEMENT BRANDING

Endorsement branding strategy is a modified version of double branding. It makes the product brand name more significant and corporate brand name is relegated to a lesser status. The umbrella brand is made to play an indirect role of passing on certain common generic associations. It is only mentioned as an endorsement to the product brand. By and large, the brand seeks to stand on its own.

The brand gets the endorsement that it belongs to specified company; e.g. Kit Kat gives the signal that it belongs to Nestle and Diary Milk conveys that it belongs to Cadburys. Cinthol’s communication stresses that it is a Godrej product. Though these brands enjoy their unique image, somewhere in the image the makers association is also a part. Endorsement branding strikes a balance between umbrella and product branding.

In case of Cadbury’s and Nestle, the brands mentioned above have their own unique position and image. Cadbury’s or Nestle support the brands to the extent that they transfer certain qualities or associations which enhance customer’s trust. Brands are identified by their own name.

CASES

CASE I

BRAND: BOROSOFT

COMPANY: PARAS PHARMACEUTICALS

CATEGORY: ‘BORO’ ANTISEPTIC CREAM

COMPETITORS: HIMANI (NOW EMAMI) LTD, LAKME, GD PHARMACEUTICALS ETC

BACKGROUND

• BoroSoft Antiseptic Cream was launched in 1996 to compete in the ‘Boro’ Antiseptic Cream category.

• A category that was dominated by 2 strongly entrenched brands-BoroPlus (Himani) & Boroline (GD pharmaceuticals), both of which enjoyed a combined marketshare of more than 90%.

• Though categorised as ‘Antiseptic Creams’ the Boro Antiseptic creams are used not so much for their antiseptic/medicinal properties (unlike Burnol, Dettol), but more as skin creams for winter dryness.

• The low price of these Boro creams makes them ideal value-for-money family products that find usage during winter.

Though used as skin creams, Boro creams were seen as purely functional – with low cosmetic & aspirational appeal, even amongst their users.

• North & East India are the primary markets for Boro Antiseptic creams – accounting for more than 75% sales.

• Majority of the category sales come from medium-sized packs – Boroline 21g, BoroPlus 20g, BoroSoft 25g.

• Non-users (users of cold creams & other higher order creams) had a very low opinion & image of Boro Antiseptic Creams & could not imagine using these creams on the skin, especially on the face.

AD AGENCY: MUDRA

In a market dominated by BoroPlus and Boroline and a perception that dictated use only for the dry winter months, Mudra turned consumer outlook around to build BoroSoft as a cosmetic product within a short time. BoroSoft is probably Mudra’s most effective statement of how a brand can be introduced in a market dominated by heavyweights and still create an identity of its own.

CATEGORY INSIGHT

In 1995, ‘Antiseptic creams for dry & chapped skin’ was the largest homogenous segment with a 55% share of the Rs. 50 crore Antiseptic cream market. At that time any antiseptic cream with a ‘Boro’ pre-fix was seen as an antiseptic cream for dry and chapped skin rather than as an antiseptic cream to be used for cuts, wounds and bruises. Moreover, North & East were the key markets since they experienced severe winters. West too had a good potential and the share of the South was negligible.

Boro products were perceived to be value-for-money skin creams that could be used by the entire family as a remedy for skin-dryness. They were seen as functional products & did not enjoy’ aspirational status amongst users.

However, there was dissatisfaction amongst consumers on account of the stickiness/oiliness of the boro creams.

Based on this key insight, BoroSoft was formulated as a non-sticky antiseptic cream. Aloe Vera - a natural extract with antiseptic and moisturizing properties was also added for the first time in a Boro cream.

MARKET SCENERIO

The antiseptic creams market was virtually oligopolistic. The presence of too few brands over a long period of time in the market and the inability of any other antiseptic creams to make a dent in the market resulted in the creation of ‘Boro’ antiseptic cream market.

Other brands that made an attempt to enter this market with a Boro prefix met with little success.

Few brands attempted to address this market---without a Boro prefix—but were rejected by the consumer.

Consumer Insight: Women are reluctant to use ‘greasy’ creams on their face.

LAUNCH PHASE 1 (1997 - 1999)

The advertising focused on positioning BoroSoft as a non-sticky antiseptic cream.

• Pre-launch market research indicated that BoroPlus & Boroline found usage primarily as skin creams for the problem of dry skin in winters, rather than for their antiseptic properties.

• Excessive stickiness of their Antiseptic Cream (BoroPlus & Boroline) was the only significant area of dissatisfaction among their users.

• With this insight from research, BoroSoft Antiseptic Cream was launched in September 1996, as a non-sticky antiseptic cream, against the market leaders BoroPlus & Boroline.

• Targetting women, the brand focussed its usage as a face cream thereby creating perceptions of a ‘cosmetic’ antiseptic cream, unlike other antiseptic creams that were seen as multi-purpose, family products.

• In the very first season the brand achieved a 9% share of the Antiseptic Cream market for dry & chapped skin.

• Over the next three years, the brand strategy was to reinforce the non-sticky positioning, provide rational support for the use of a non-sticky cream & create cosmetic associations with the brand, thereby enhancing brand imagery.

• In addition, in 1999, BoroSoft introduced a larger pack size - 40g. A consumer promotion offer was given on this new pack

– D’Cold Open-Up Inhaler free with BoroSoft 40g pack.

• This consumer promotion offer was hugely successful in getting trials for the brand – not only from users of other Boro creams but also from users of cold creams & fairness creams.( LAKME & FAIR & LOVELY)

• The result being, that by the end of 1999 the market share of BoroSoft Antiseptic Cream had moved up to 17% of the Antiseptic Cream market.

PHASE 2 (2000 ONWARDS)

• By now BoroSoft was a well-established brand with high brand salience among Boro cream users with its clear positioning as a non-sticky antiseptic cream with cosmetic & grooming associations.

• The task defined for the brand for the year 2000 was to further enhance the ‘cosmetic’ appeal of the brand & build in ‘face cream’ associations with the brand.

• Boro cream users clearly saw a distinction between their Boro brand (which was perceived as a multi-purpose cream) and non Boro brands (which they aspired to use – the more expensive & cosmetic ‘face creams’ like Pond’s Cold Cream, Fair & Lovely, Nivea).

KEY ISSUE

• The brand mapping exercise indicated that while BoroSoft was clearly being perceived to be high grooming, its associations with the attribute of ‘protection’ was lacking.

• And in a category that is largely functional, it is important for a brand to be perceived as providing the key category benefit – ‘protection from winter dryness’.

COMMUNICATION TASK

• To strengthen the ‘protection’ association of BoroSoft Antiseptic Cream for the problem of skin dryness, while continuing to maintain the cosmetic associations of the brand.

TARGET AUDIENCE

• Females, 18-35 yrs., SEC A,B,C.

• Core Target Audience: Current users of BoroPlus & Boroline.

The brand packaging was given a new look in the year 2000 as the brand communication focussed on positioning it as a face cream.

A brand diagnostics study conducted at the end of the season 2000-2001 indicated that the imagery of BoroSoft was clearly in line with the intended brand positioning.

COMMUNICATION STRATEGY

• To position BoroSoft as a ‘dry skin specialist’ by highlighting and drawing attention to the ingredient ‘Glycerine’ – because of its ability to make dry skin soft and supple.

• The net takeout of the creative was that BoroSoft is ideal for making dry skin soft because it is Glycerine-enriched.

• This would aid in anchoring the brand on the core functional attribute of the category & its higher cosmetic imagery would provide a reason-to-buy.

MEDIA STRATEGY

• Being a seasonal product (for dry skin), the majority of the brand’s sales occur in the winter period from November to February.

• Therefore, high decibel TV advertising in these winter months has been the media strategy, in order to achieve high top-of mind awareness in a short period.

• The Target Audience being women, the programme selection primarily consists of popular family soaps.

BOROSOFT TODAY

• Today, BoroSoft is the 3rd largest brand in its category (Boro Antiseptic Creams) with a market share of 19%.

• It enjoys more than 93% brand awareness – amongst all users of skin creams.

• By positioning it as a Dry Skin Specialist the brand has now been made more relevant to users of BoroPlus & Boroline.

• Its premium, cosmetic imagery has made it possible to extend its equity into other skin care products viz., BoroSoft Dry Skin Soap and BoroSoft Thick Lotion for Dry Skin.

CASE II

BRAND: VATIKA HAIR OIL

COMPANY: DABUR INDIA LTD.

PRODUCT CATEGORY: HAIR CARE

COMPETITORS: HLL, MARICO

BACKGROUND

· The brand was launched in 1995 in the conservative coconut hair oil market.

· The product was launched as a value-added coconut hair oil instead of another ‘me-too’ pure coconut oil.

· It had henna, amla & lemon along with coconut oil.

· It was priced at a 50% premium over branded coconut hair oils.

· Brand positioning was that of ‘A premium coconut hair oil with the extra nourishment of henna, amla and lemon to provide problem-free hair’ (hair which is free from dandruff, premature greying & hair fall).

· Dabur is attempting to spur volumes by harping on its ‘natural’ strengths against ‘chemicals’ used by Clinic and H&S. In its communication, it has even gone to the extent of taking a dig at the ZPTO issue – effective dandruff control…naturally! No harmful chemicals. No ZPTO.

Consumer Insights: The launch was based on two key insights

Hair oil users faced increased premature hair problems (like hair fall, dandruff & greying). Consumers use natural ingredients (like amla, henna…) in addition to coconut oil to solve their hair problems.

PHASE 1 (1995 - 1997) (miss world Priyanka- commercial)

Positioned as: ‘Just coconut oil is not sufficient to keep your hair problem-free. Your hair needs the extra nourishment of Vatika.’ Now hair problems are no problem.’

PHASE 2 (1997-2001)

In 1997 it was realised that though there was high awareness, the brand had low trials.

ROLE OF ADVERTISING

To create a perception in the user’s mind that their oil was insufficient in today’s context of pollution, hard water and chemicals for the prevention of hair problems.

COMMUNICATION OBJECTIVE

To reposition coconut oil

Coconut Hair Oil Vatika Hair Oil

• Insufficient for modern times • Sufficient for the changed times

• Coconut oil only • Coconut oil plus (Henna, Amla, Lime)

• Nourishing • Extra nourishing

• Ordinary • Extra ordinary

In communication, the concept of the Vatika Woman was introduced (women like Mandira Bedi, Shefali Chayya and Sudha Chandran who were perceived to have an extra edge in their personality, were used to endorse the brand).

Use of these women achieved a two-fold task

– Connected the extra property of the brand over coconut oils.

– Encouraged trial of the product by word-of-mouth.

The brand grew at a healthy rate for the next 3 years & became the category leader. It was successfully extended into a Henna conditioning shampoo in 1997 and an Anti Dandruff Shampoo in 2000.

HOLI AD – SIMONE SINGH

Advertisement having Archana Puran Singh as the hair dresser and touching up the artists hair in an outdoor shoot and griming about hair problems of these artists which is the reason why she has to wear gloves.

Then comes the entry of another artist Simone Singh with no hair problems,

‘Not just coconut oil. Vatika. Apart from coconut oil it also has amla which stops hairfall. And lemon which protects from dandruff. And henna which colours hair naturally.’

Thus this one ad not only describes the various hair problems that are present in todays world but also explains the various functional benefits of the ingredients of the product.

PHASE 3 (2001 - 2002)

Having got the early adopters for the brand last year, it was decided to move from the

brand attribute of extra nourishment to the brand benefit of problem-free hair.

The ‘Vatika ke saath hair problems hogi to milegi na’ (You will never have problems

with your hair with Vatika, because there are none!) campaign was launched to show the confidence of the Vatika user in her problem-free beautiful hair.

VATIKA TODAY

• Today Vatika is a leader in the coconut-based category within just 6 years of its launch.

• It has become the flagship brand of Dabur India Limited.

• It is also one of the most successful Indian FMCG launches in the last decade.

• Along with the two brand extensions of henna conditioning & anti dandruff shampoo, the brand has been valued at Rs.100 crores.