Module marketing 1.1
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Marketing involves fulfilling customer needs by creating and delivering relevant products and services. Successful marketing requires understanding consumers and the market environment. The marketing process includes innovation to create new brands, managing existing brands, and consolidating and diversifying brands over time. Developing new concepts involves screening ideas, testing concepts with consumers, and developing the optimal marketing mix of product, price, place, and promotion. Communication and sales promotion are also essential to attract customers and push brands into the market. Overall marketing aims to deliver a consistent brand identity that resonates with target audiences.
Module marketing 1.1
- 2. Marketing
- 13. • Why is it easy to identify these logos even when they are incorrect?
- 14. • Why would you purchase Adidas/Nike running shoes over Bata?
- 15. • Why do people ask for a ‘Xerox’ when they want a photocopy?
- 16. MARKETING: defined Fulfilling a need/want or solving a problem by creating products & services for the target audience AND delivering it in a manner that is relevant and accessible…. In other words
- 22. Shopper Customer Consumer Successful Marketing
- 23. Marketing: Work Overview Consolidation Evolution Screening & Mix Launch IDEAS Development & Growth & Diversification Innovation: Creating New Managing Existing Brands Brands
- 24. Understanding Consumer, Shopper, Customer & Market/Environment is fundamental to successful marketing roles because:-
- 25. •It provides insight into consumer needs, lifestyles and attitudes, to help discover what they want and how to talk to them. Key to successful innovation & growing/diversifying brands.
- 26. •It provides an in-depth knowledge of the marketplace and the shoppers within it. Any marketing strategy / activity is more likely to be successful, if it is based on reality of how things really are, and not on assumptions.
- 27. •It provides feedback on how consumers & shoppers react to our new marketing initiatives. This allows us to refine and fully optimise them before they are launched/re launched into the marketplace. This greatly increases the chances of success.
- 28. Innovation: Creating New Brands Innovation Funnel Opportunity Identification Concept Mix Devt & Capability Idea Phase Screening Testing Launch Assessment On average 2 out of 10 innovations succeed i.e. only 20% - Innovation requires patience and perseverance!!
- 29. Opportunity Identification: Opportunity Identification • Utilize and Correlate different data points to arrive at areas that show promise for growth •Broad Spaces/Areas are identified at this stage. Idea Generation: Idea Phase • Generating broad product ideas based on the areas of opportunity identified • A mass of ideas are generated – NO elimination/sorting is done at this stage
- 31. >> Qualitative Exploration, understanding • Open ended focus rather than statistical groups precision. Small samples; • Holistic Consumer specialised interviewers to Immersion analyse consumer responses. >> Quantitative •Habits & Attitudes About facts & figures; large sample – •Segmentation representative of given population, to Studies Enable statistical analysis. Indicates •Preference consumer behaviour at overall level. Mapping Surveys
- 32. • Databases (AC Neilsen, Euromonitor, etc.) • Trend Analysis • Online Research, Blogs • Internal Data
- 34. Examples:- MID TIER FITNESS MARKET ON THE GO PROJECTION MARKET • Cheap Gym Equipment • Mini/Pocket Projectors • Fitness Drinks & • Projector Phones Supplements FOREIGN EDUCATION MARKET • Edu Consultants • Cheap Student Loans
- 35. •CONCEPT: defined • Simple, understandable and appealing Opportunity Concept renditions of your ‘broad ideas’ for your target Areas & Screening audience Broad Ideas • Conveys the essence and salient points that help consumers evaluate your idea • A tool that helps to assess consumer interest in the particular idea and whether it deserves to be developed further or junked
- 36. •CONCEPT: defined • Simple, understandable and appealing Opportunity Concept renditions of your ‘broad ideas’ for your target Areas & Screening audience Broad Ideas • Conveys the essence and salient points that help consumers evaluate your idea • A tool that helps to assess consumer interest in the particular idea and whether it deserves to be developed further or junked Qualitative Fine-tuning Initial Recycling preferred Winning Concept with concepts & Consumer Development Consumers Conducting a Concept Concept Test
- 38. Creating the Marketing Mix • Formally these comprise the Product, Price, Consumer Mix Devt & Place and Promotion . Testing Validated Concept • These defines exactly how and in what manner your brand will interact with the Customer, Shopper and Consumer . Product Price Place Promotion
- 39. Creating the Marketing Mix • Formally these comprise the Product, Price, Consumer Mix Devt & Place and Promotion . Testing Validated Concept • These defines exactly how and in what manner your brand will interact with the Customer, Shopper and Consumer . Product Price Place Promotion Tangible good or intangible service. Includes the core product attributes, the proposition, how it will be differentiated in a burgeoning market and its Packaging
- 40. Creating the Marketing Mix • Formally these comprise the Product, Price, Consumer Mix Devt & Place and Promotion . Testing Validated Concept • These defines exactly how and in what manner your brand will interact with the Customer, Shopper and Consumer . Product Price Place Promotion The amount that a consumer pays for the product. Price is affected by competition/substitutes, market dynamics, target audience, etc. A strong brand can charge a Premium!
- 41. Creating the Marketing Mix • Formally these comprise the Product, Price, Consumer Mix Devt & Place and Promotion . Testing Validated Concept • These defines exactly how and in what manner your brand will interact with the Customer, Shopper and Consumer . Product Price Place Promotion Location (Distribution Channels) through which the product is sold. It can be physical (general trade or modern trade stores) or virtual
- 42. Creating the Marketing Mix • Formally these comprise the Product, Price, Consumer Mix Devt & Place and Promotion . Testing Validated Concept • These defines exactly how and in what manner your brand will interact with the Customer, Shopper and Consumer . Product Price Place Promotion Advertising: Paid & Unpaid communication to spread awareness, drive trial for a product (TV, Radio, PR, Internet, etc.) Promotion: Sales promos, schemes aimed at lubricating Trade
- 45. •Issue detailed product brief to technical/R&D team including product attributes, competition benchmarks, cost details and timelines •Develop initial prototypes
- 46. •Recycle/Perform iterations after (qualitative) consumer feedback •Test product in blind (unbranded) form vs. competition benchmark to see if the core offering is at least at parity (preferably better)
- 47. •Create packaging and form that the product will be accessible to consumers in – keep in mind their needs, usage patterns, environmental concerns, etc. A well designed pack can attract/detract shoppers in a crowded store!! •Test/Recycle and fine-tune
- 48. •Test the product in branded form with the concept vs. competition – Acid test of success. See if product delivers a) vs. the expectations set by the concept and b) vs. competition • A parity/inferior product in blind testing can often significantly improve/worsen in branded testing depending on perceived brand strength
- 49. A well designed offering will engage more than one sense in a compelling manner. Example: •iPhone: Visually appealing design (easily recognizable) • Touch-friendly/intuitive usage • Signature ringtones/sounds/alerts
- 50. A strong and well liked pack can be a HUGE asset. • Tropicana introduced its new pack in Jan, 09 as part of a $35 million ad campaign. • Sales fell 20% in <2 months forcing it to go back to the classic design! P.S – the product was unchanged
- 51. How much someone needs to pay to buy your product/service. Setting a price depends on the following:- 1) Competition & Market Dynamics: How much others are charging can influence your price specially where close substitutes are available
- 52. How much someone needs to pay to buy your product/service. Setting a price depends on the following:- 2) Internal Considerations: Do you have other brands in the portfolio that could be affected? (Eg. Would Cadbury price Silk and regular dairy milk the same??). Cost of production is obviously a key component here.
- 53. How much someone needs to pay to buy your product/service. Setting a price depends on the following:- 3) Brand Strength: How much people are willing to pay for you given your concept and product. Loyalty/strength of existing brand (iPad: would it be as successful if Onida launched instead of Apple??)
- 54. Head (example) MRP (Rs.) Consumer Price (MRP) 150 Less: Trade Margin 15 Trade Price 135 Less: Distributor Margin 10 Gross Sales Price 115 Less: Taxes 23 Net Sales Price/ Turnover 92 Less: Costs (direct+indirect) 64.4 Profit 27.6 The final Price is very different from the amount a co. realizes!
- 55. Pricing Strategy Definition Low initial price to gain penetration/trial, sales and market share. Post that price may Penetration pricing be increased Initial high price and gradual reduction to make the product available to a wider Skimming pricing market. Skim profits of the market layer by layer. Competition pricing Setting a price in comparison with competitors- parity, x% lower or higher. Pricing different product variants within the same product range at different prices for Product Line Pricing a range. Bundle Pricing Bundled group of products at a reduced price. Psychological pricing Pricing just below a ‘psychological price band’. Eg. Rs.999 or Rs.990 instead of Rs.1000. Premium pricing High price to reflect the exclusiveness of the product. Optional pricing Sell optional extras along with the product to maximise its turnover. Cost Based/Cost Plus Cost of production and distribution, plus mark up % for profit Pricing DISCUSS: What is iPods Strategy?? Does it work for them?? Why??
- 56. How your product gets from the factory to the end shopper/consumer. Important to reach the right person at the right place at the right time!
- 58. • Intensive distribution – Majority of resellers stock the 'product‘ . • Selective distribution – Selected group of ‘suitable’ resellers stock the product. • Exclusive distribution - Only specially selected resellers/authorized dealers (typically only one per geographical area) sell the ‘product’
- 59. • Selling to a distributor is not a FINAL sale for a manufacturer! If the product doesn’t reach the end of the chain (shopper/consumer) it will be stranded at some link! Does not attract repeat purchases by distributors! • Important to motivate and recognize distribution and trade partners via incentives, schemes – ‘marketing’ to customers(trade) as important as consumers!
- 60. Inventory management & Warehousing: How inventory will be stored? When it will be released from factory to depots to markets? Transportation: Mode of transport of finished goods to ensure they reach on time and in the right form (one bad apple really does spoil the rest!!) Take Back Policies: How are damaged stocks taken back?
- 61. (What Aamir Khan is GREAT at ) Communicating your brand offering in a manner that delivers your brand message holistically and in a manner that attracts trial for the brand.
- 62. Attract Heighten Create Consumer Interest in Desire to Push them into Attention the Brand Purchase ACTION: BUY DIVIDED normally into 2 parts Advertising Sales Promotion •TV •Radio •Consumer Based •Public Relations •Sales Force Based •Internet •Trade Based •Print
- 63. 1) Advertising So what really is a goooooood piece of communication?? ?Discuss? Insert 2 videos of the fall ads (then show the last line) 1) Blackberry boys jingle – by vodafone 2) JK Super Cement – the one with the girl dancing on the beach!
- 64. ANSWER: Well it depends!! A Good piece of communication is one which satisfies the objectives behind its creation!
- 65. 1) Advertising Creating Great Communication starts with a great BRIEF for the Agency Typical Agency Brief
- 66. Typical Agency Brief •What is the Objective that drives this brief ?
- 67. Typical Agency Brief •Who is the target audience?
- 68. Typical Agency Brief •What are the intended channels of choice (TV, Radio, etc.)?
- 69. Typical Agency Brief • What does the audience currently think and do (wrt the category)?
- 70. Typical Agency Brief • What do you want them to think and do in response to the communication?
- 71. Typical Agency Brief • What is the most important point to communicate?
- 72. Typical Agency Brief • Why should the audience believe it?
- 73. Typical Agency Brief • Cost and time constraints
- 74. Once the above points are mutually agreed with the agency, should they start making campaigns!
- 75. 1) Advertising Creating STELLAR communication: Agency Mutually Create Qual Test Presents Script Decide 2-3 ‘Anima tic’ with Options basis options Versions for Consumers brief Testing
- 76. Post qual testing, the winning ‘animatics’ are put into quantitative consumer testing. A sample result (called PREVIEW) is given below – basis this a film is shot with improvements:
- 77. 1) Advertising MEDIA PLANNING: Communication through the desired channels is created in line with the overall marketing and media plan – HOW WHAT WHEN WHERE and WHY each piece of communication will be deployed to have the desired effect. Media Channel selection needs to be done carefully to maximize chances of success with the given budget:
- 78. 1) Advertising
- 79. 1) Advertising
- 80. 2) Sales Promotion Sales are generated not only by ‘pulling’ or ‘attracting’ consumers towards your brand but by also ‘pushing’ your brand towards them Trade Promotions Consumer Promos Sales Team
- 81. 2) Sales Promotion Sales are generated not only by ‘pulling’ or ‘attracting’ consumers towards your brand but by also ‘pushing’ your brand towards them Trade Promotions Consumer Promos Sales Team • POP Display Incentive • Trade Allowance • Contests • Trade Shows • Trade Schemes & Discounts
- 82. 2) Sales Promotion Sales are generated not only by ‘pulling’ or ‘attracting’ consumers towards your brand but by also ‘pushing’ your brand towards them Trade Promotions Consumer Promos Sales Team • Samples • Coupons • Freebies • Refund/Rebate • Contests • Price Offs
- 83. 2) Sales Promotion Sales are generated not only by ‘pulling’ or ‘attracting’ consumers towards your brand but by also ‘pushing’ your brand towards them Trade Promotions Consumer Promos Sales Team • Target • Achievement • Bonuses • Contests • Incentives/Gift
- 84. Consumer Validated Mix Devt & Testing Concept Marketing Mix: Does it work TOGETHER????? • Once the 4Ps of the mix are defined in this manner a company wishes to know how much they can sell/earn if they launch this mix into the market
- 85. Quantitative Volumetric Testing: • Done to identify the volume potential of a mix • Often done at varying prices and market conditions to find the most suited launch plan • Gives volume and sales forecast of the mix for 2-3 years together with key measures like trial and repeat rates • Done by agencies like
- 86. A Brand must have a unique identity, character and consistency that shines through in all aspects of its being. Discuss: Why do you recognize a Nike, Adidas or Blackberry product so easily ??
- 87. Brand Identity Document: a definition of what a brand stands for that helps it stay consistent and true to itself in future • Brand Vision and Mission • Target Audience • Competitive Environment • Benefits it Provides – Rational & Emotional • Its Values, Personality and Tone of Communication • Brand Essence and Promise • Scope of the Brand – Categories/Services/Offerings it can and cannot go into • Brand Properties – Signature assets that a brand wants to own (Eg. Vodafone puppy, Nike Swoosh, Nokia hand-shake, etc.)
- 88. Validated Capability Marketing Assessment Mix Once a mix is ready a company needs to gear up to be able to produce it and be ready to handle all aspects of the mix
- 89. Validated Marketing Capability Assessment Mix Product Supply Chain Legalities Competitor Readiness Readiness Assessment • Shelf Life/Storage •Govt. Safety Test Clearance Clearances • Transit/Transport Test Clearance •
- 90. Validated Marketing Capability Assessment Mix Product Supply Chain Legalities Competitor Readiness Readiness Assessment • Raw Material •Distribution Chain Sourcing in order • Factory Trials & Sample Batch Production
- 91. Validated Marketing Capability Assessment Mix Product Supply Chain Legalities Competitor Readiness Readiness Assessment • Govt. Licenses, etc • Trademarks, Copyright Filing
- 92. Validated Marketing Capability Assessment Mix Product Supply Chain Legalities Competitor Readiness Readiness Assessment • Assessing Competition Readiness to retaliate • Drawing up contingency plans for the same
- 93. Launch What the last 12-18 months was spent waiting for!! D DAY!! • PRE Launch Sales Briefing: ESSENTIAL to brief the front end/sales/execution teams about ALL aspects of the launch so that they can execute it FLAWLESSLY • Important to get them MOTIVATED and EXCITED about this – A demotivated sales team can KILL the Best of mixes in days!!
- 94. Test Market launch in a restricted geography to evaluate in market performance in a given area. Done to correct chinks before a full launch
- 95. Complete launch (phased or simultaneous) in all intended geographies and markets
- 96. • The first 12 Months after a launch are CRITICAL to its success. Important to have first hand feedback on the brand from: • The Market and Trade • Consumers & Shoppers • Early detection can help correct serious/minor flaws that can make or break a brand
- 98. A successful launch isn’t always so the first time round – what makes it so is the BELIEF and RESILIENCE of the brand owner/manager!! p.s.- Guess which Pizza brand you wouldn’t be ordering from if it withdrew after its initial unsuccessful entry
- 101. Consolidation & Evolution Launch & Growth Diversification • Managing one or a set of existing/new brands consumes the maximum amount of a brand manager/marketer’s time. • A successful launch is just half the battle won
- 103. MANAGE YOUR
- 104. OBSESS over Consumer Understanding: Understand them completely because you will often need to make judgement calls without referring to research always • Meet your Consumers OFTEN: Read what they do, visit the places they visit for leisure, watch the movies they would – get under their skin. Make sure your you understanding is based on reality and is CURRENT/UP TO DATE • Watch how shoppers make their category choices.
- 105. INTERNALIZE your Brand: Know it like the back of your hand • Know what users, non users think about you – why they like/love/hate you • Track every detail about your brand – sales, shares, distribution, imagery, trends • Monitor your finances REGULARLY!
- 106. ENVIRONMENT Understanding: This is constantly changing. • Visit the markets often – see what trade and competition is doing • Keep track of competitive actions, reactions and new launches • How can you stand out in an ever increasing clutter of brands/products?
- 107. Have a good overview of the different data sources for consumer, market and shopper Understanding. How to interpret it and how to use it in your everyday work.
- 109. f(BRAND ) Profitability Sales Objectives = STRENGTH Sustainable Growth
- 111. Keeping all Ps in line with strategy & modifying as per the environment .
- 112. Giving a brand enough resources to fuel its growth and expansion
- 113. Portfolio Management to ensure low cannibalization of internal brands
- 114. Evolving to stay continually relevant with changing consumer needs
- 115. Well defined 4Ps keep your brand moving smoothly. But need regular maintenance!! 4Ps: Impact Al key Attributes SALES How many people buy How much they buy Purchase Purchase Penetration frequency Size PRODUCT PRICE PLACE PROMOTION
- 116. Why Regular Monitoring is essential ??
- 117. Reducing price, advertising more, following competition is not always the answer though – what’s important is that you adapt to stay consistent with your strategy in changing times PRODUCT PRICE PLACE PROMOTION
- 118. PRODUCT •MSG becomes issue in foods – continued use would’ve reduced Lays sales • Plasma to LCD/LED TVs – Could SONY afford to fall behind?? • 1MP Camera to 5MP in 14 months – PRICE change or lose out PLACE PROMOTION
- 119. PRICE • Raw Material Prices up 45% - Increase price (ST/LT) or get wiped out • DVD prices fall sharply – Can VCDs afford to be priced the same? PRODUCT PLACE PROMOTION
- 120. PRODUCT PRICE PLACE PROMOTION • Small (Tier 2, 3) towns sharply increasing luxury car purchases ahead of larger towns – can BMW neglect this? • Rural banking exploding – Private banks rush to smaller geographies
- 121. PRODUCT PRICE PROMOTION PLACE • HP, Compaq, others offer MASSIVE discounts during Diwali – if Lenovo stays out it mite lose up to 25% of its sales . • Luxury travel brands: what are the risks of not advertising on TLC if your competitor suddenly decides to sponsor 5 shows on it?
- 122. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN RESULT QUATERLY AUDIT LOCK-IN PLAN STORM ANALYSIS REVIEW
- 123. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN QUATERLY RESULT AUDIT LOCK-IN PLAN STORM REVIEW ANALYSIS 1. Take Stock of all Key Brand Metrics over last year (and before. Evaluate each P. 2. Evaluate Environment Changes FIND KEY Issues & Opportunities
- 124. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN QUATERLY RESULT AUDIT PLAN LOCK-IN STORM REVIEW ANALYSIS 1. Identify Goals for the brand to achieve over next year 2. Define key success metrics & sales/profit/growth objectives Create SMART GOALS basis Audit
- 125. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN QUATERLY RESULT AUDIT LOCK-IN PLAN STORM REVIEW ANALYSIS 1. Think of multiple ways to achieve these goals – be innovative! 2. Cut down and hone into the ideas that the team agrees on
- 126. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN QUATERLY RESULT AUDIT LOCK-IN PLAN STORM REVIEW ANALYSIS 1. Sign-off plans with larger category/company plans 2. Sign-off resource Requirements 3. Identify detailed targets by month
- 127. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN QUATERLY QUATERLY RESULT AUDIT LOCK-IN PLAN STORM REVIEW REVIEW ANALYSIS 1. Monitor Progress at Quarterly Intervals 2. Course Correct as required Ensure YEARLY Plan is on Target
- 128. Planning Success: Annual Brand Marketing Plans ANNUAL BRAIN RESULT QUATERLY RESULT AUDIT LOCK-IN PLAN STORM ANALYSIS REVIEW ANALYSIS 1. Year End Result Tabulation 2. Identify key sources of success and failure 3. Team Meetings to discuss and plan for the following year
- 129. A strong financial position provides the fuel to propel a brand further Managing a Brand P&L Brand P&L: • P & L: Profit & loss. Statement of Affected financial performance for a by particular time Marketing Team • Managing this is essential to a brands survival
- 130. A strong financial position provides the fuel to propel a brand further Managing a Brand P&L Key Terms 1. Gross Sales Value - Sales at the ‘max trade price’ before any trade Brand P&L: reductions/discounts Affected 2. TM Inv: Discounts/Promo for Trade by 3. Supply Chain Costs - Costs incurred Marketing in producing and supplying Team products to customers (materials, production, buying, planning, distribution) 4. Advertising and Promotion - All costs of supporting the product in the market place through A&P. 5. Indirect Costs - Costs of running business (except Supply Chain and Advertising and Promotion Eg. selling, admin, R & D,accounting, etc.
- 131. A brand team controls part of the total P&L – but the critical part. To ensure a healthy trading contribution (margin)/end result, a brand must deliver on its part of the P&L i.e. Gross Profit and PBI. HOW?? By Managing Costs A P&L should be used as an important tool to assess the financial impact of all key brand decisions like increasing Advertising by 20%, price reductions by Rs.5/unit, etc. Each Brand should define a target margin that it should aim to attain in a given period
- 132. A Brand Owner should continually ask the right questions to his team to ensure all the Ps are delivered as cost effectively as possible PRICE PRODUCT • Price Elasticity – A Rs.xx •Raw Material Costs increase in price will cause • Packaging Costs overall sales growth or fall? • Increase Shelf Life • Can my brand charge a greater premium PLACE PROMOTION •Is TV the most cost effective •Reducing Transport Cost medium? • Reducing Inventory • Can PR work harder? • Reduce Damages • Is price off better or sampling
- 133. A Brand Owner should continually ask the right questions to his team to ensure all the Ps are delivered as cost effectively as possible PRICE PRODUCT • Price Elasticity – A Rs.xx •Raw Material Costs increase in price will cause • Packaging Costs overall sales growth or fall? • Increase Shelf Life • Can my brand charge a greater premium PLACE PROMOTION •Is TV the most cost effective •Reducing Transport Cost medium? • Reducing Inventory • Can PR work harder? • Reduce Damages • Is price off better or sampling
- 134. A Brand Owner should continually ask the right questions to his team to ensure all the Ps are delivered as cost effectively as possible PRICE PRODUCT • Price Elasticity – A Rs.xx •Raw Material Costs increase in price will cause • Packaging Costs overall sales growth or fall? • Increase Shelf Life • Can my brand charge a greater premium PLACE PROMOTION •Is TV the most cost effective •Reducing Transport Cost medium? • Reducing Inventory • Can PR work harder? • Reduce Damages • Is price off better or sampling
- 135. A Brand Owner should continually ask the right questions to his team to ensure all the Ps are delivered as cost effectively as possible PRICE PRODUCT • Price Elasticity – A Rs.xx •Raw Material Costs increase in price will cause • Packaging Costs overall sales growth or fall? • Increase Shelf Life • Can my brand charge a greater premium PLACE PROMOTION •Is TV the most cost effective •Reducing Transport Cost medium? • Reducing Inventory • Can PR work harder? • Reduce Damages • Is price off better or sampling
- 136. A brand in many companies is part of a larger portfolio of offerings each with its own role to perform. It must recognize and stick to that role. Eg. Category Architecture: Hyundai India Luxury While the mid tier segment is booming, would SONATA be the (10%) brand to cut prices and target Sonata it? Or would an accent or verna Mid Tier do the job better?? (25% buyers) Offering: Verna, A brand must stay in the Accent segment defined for it. Mass Segment: 60% of Buyers Offering: Santro, Getz
- 137. Even after a segment is defined (generally done a for a pd. Of 3-5 years) there is enough room within to decide what a brand should/should not do Created for a period of 2-4 years this defines what the brand seeks to do and a strategy for how it will do so over the said period. This defines the boundary for a brand
- 138. What it includes: • Brand Identity Document • Key Thrust/Focus Areas • Key Innovations Planned • Target Consumers • Target Geographies • Brand Scope (in & out) • Range Architecture of a Brand • Key Properties of a Brand • A&P Spending Guidelines • Communication Guides
- 140. • When each brand stays in its defined segment and the category strategy is well defined there can often be a positive rub-off of the mother brand on each individual brand (called a ‘halo’)
- 141. •The iPhone 5/iPad 3 have barely been announced yet!! Why are people DYING to get their hands on it?? •Because APPLE has worked hard to ensure that all its sub brands (iPod, MacBook, iPhone, etc.) benefit from the positive image it has built for itself. p.s. – iPhone 5 should be out by mid november
- 142. A brand, however successful cannot survive unchanged, for a long time. WHY? A few have been listed below: CATEGORY CULTURE, BELIEFS EVOLUTION & TRENDS ENVIRONMENTAL OTHER REASONS CHANGES
- 143. CATEGORY EVOLUTION Categories changes over time acc. to evolving customer needs. Brands must deliver these to avoid falling out of their consideration set. Eg. Demand for communication/e-mail/ internet on the go has led to a convergence in PCs and Phones with devices like the iPad. Cars with more fuel efficient engines. (Euro CULTURE, BELIEFS I/II/III/IV) . & TRENDS ENVIRONMENTAL OTHER REASONS CHANGES
- 144. CULTURE, BELIEFS & TRENDS Each geography has a unique set of cultures, beliefs and traditions. These evolve over time. A number of short and long term trends also accompany these. (Eg. Trend towards westernization). Eg. Cadbury chocolate reinventing itself to leverage ‘gifting’ as a tradition and play in the much CATEGORY larger traditional ‘mithai’ space during festivals. Fair & Lovely has its core benefit built EVOLUTION from cultural beliefs. ENVIRONMENTAL OTHER CHANGES REASONS
- 145. CULTURE, CATEGORY BELIEFS & EVOLUTION TRENDS ENVIRONMENTAL CHANGES OTHER Sometimes changes occur in the external REASONS environment that necessitate a change in a given category and brand to better serve consumer needs. Certain laws/legalities may also come in place that require a brand to change its ways. Eg. Ban on alcohol advertising led to avatars in sodas/music, etc.
- 146. CULTURE, CATEGORY BELIEFS & EVOLUTION TRENDS OTHER REASONS ENVIRONMENTAL CHANGES • Exposure to external/international offerings (& imports) put pressure on local brands to be more competitive • Stage of product life cycle • Negative/Adverse consumer or market feedback (Eg. Indica launched V2 after several complaints with their first version)
- 147. Predicting and accounting for these and other changes help a brand stay ahead of the curve and remain RELEVANT to its consumer base
- 148. Means of Change: INNOVATION: Creating an altogether new product to satisfy new/evolving consumer needs with a new marketing mix (4Ps). (Eg. Fuel Cell Cars) RENOVATION/REFRESH: Where there is change in one or more Ps but the fundamental brand remains similar i.e. it is a relaunch of an existing brand with some ‘new news’ to stay relevant. Typically done every 2-3 years. (Eg. Coke launching its slimmer cans that are easier to hold/carry or Mineral Water companies adding additional vitamins/minerals to water to tap the rising concerns on health)
- 149. Ever think that the Kindle revolutionized the way we read?? Think Again! http://www.youtube.com/watch?v=ISxgVmRnF q8 (play this link)
- 151. Help to give shape the marketing mix with an accent on development of communicationKey Functions: • Planning: Provide strategic direction to a brand from concept development to post launch (Brand Identity, tone/manner of communication, etc.) • Creative Team: Develop communication, scripts, advertising, etc. • Client Servicing: Bridge between the client and the agency to translate client requirements to into creative communication
- 152. Similar to Advertising agencies but focus on PR for a campaign or brand • Bridge between the client/brand and the external environment • Build positive associations about a brand with the public, media and other key influencers in the external environment via press conferences, pr campaigns, viral campaigns, etc. • Help mitigate risks, manage negative PR on a brand (eg. Coke & pesticides) • Help generate word of mouth
- 153. Specialized agencies ensure that brands get the most relevant media in their budgets to achieve their desired goals/objectives. Key Functions: • Client Servicing & Planning (Can be separate too): Understanding client needs (% awareness required, audience to be reached, media budget, etc.) and devising a detailed media plan • Media Buying: Interacts & Negotiates with media channels (TV, Radio, Outdoor, Online, etc.) and buys spots (Airtime for a 30 sec ad) to fulfill the client’s media plan
- 154. Performing research with consumers, shoppers and trade to help marketeers better understand their audience and the appeal of their marketing mixes. Two key forms: Qualitative and Quantitative (explained earlier ) Key Functions: • Client Servicing: Liaison to understand clients needs and translate it to research studies • Researcher: People who conduct research/studies/surveys in the field with consumers • Analytics/Analysis Wing: Analyze raw data (qual/quant), create hypothesis and draw conclusions and recommendations for the clients.
- 155. Key Qualities/Skills Needed: • Great interpersonal skills. I repeat Great Interpersonal Skills • Attention to detail • Ability to multi-task • Creativity and imagination • Ability to handle pressure and competition • Ability to deal with ambiguity • Adaptability
- 156. Work Hours: • 9 - 5 for much of the year • 24*7 at critical points like a launch/relaunch! • Travel overseas/domestic
- 157. Career Progression: • Progression from Assistant Brand Manager to Brand Manager. Higher Levels include a Marketing Manager (group o f brands) followed by a Category Marketing Head and then a VP, Marketing. • Some companies may also like cross functional sales roles in the above progression
- 158. Career Progression: • Executives within the Sales, Advertising, PR or Product Design industries with managerial experience could be considered for a Brand Management role. • Fresh Graduates are often considered for trainee marketing roles (bring new perspective – very important) and are then put into either of sales or marketing depending on caliber, performance and interests
- 160. CREDITS: • Letsintern.com • @Laptop_crayons Like it ? Share it