BRAND MANAGEMENT OF
IQBAL TAHIR ROLL # MBA-13-31 SESSION (2013-2016) MBA 6TH (MORNING)
DEPARTMENT OF BUSINESS ADMINISTRATION BAHAUDDIN ZAKARIYA UNIVERISTY SUB CAMPUS SAHIWAL
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Table of Contents Nature of Product................................................................................................... 6 Product Strategy.................................................................................................... 6 1.
Core Benefit................................................................................................. 6
2.
Basic product............................................................................................... 7
3.
Expected product......................................................................................... 7
4.
Augmented product..................................................................................... 7
5.
Potential product.......................................................................................... 7
Customer............................................................................................................... 7 Company............................................................................................................... 7 Competitor............................................................................................................. 8 Why branding in PEPSI is necessary for consumers & manufacturers?..................8 For Consumers.................................................................................................... 8
Identification............................................................................................. 8
Psychological risk reduction......................................................................8
Reduction in research process..................................................................8
Reliability/Durability..................................................................................8
For Manufacturers............................................................................................... 9
Identification............................................................................................. 9
Legal protection........................................................................................ 9
Promotion.................................................................................................. 9
Source of competitive advantage.............................................................9
PEPSI BRAND ELEMENTS........................................................................................ 9
Brand Name................................................................................................. 9
Logos and Symbols...................................................................................... 9
Slogan.......................................................................................................... 9
Spokesperson............................................................................................. 10
Jingles......................................................................................................... 10
Packaging................................................................................................... 10
PEPSI BRAND CHALLENGES..................................................................................10
Change in demand..................................................................................... 10
Change in regulatory environment.............................................................10
Financial problem....................................................................................... 10
Economic conditions.................................................................................. 11
Suppliers.................................................................................................... 11
Employees workforce.................................................................................11
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Intellectual property...................................................................................11
Exchange rates.......................................................................................... 11
Strategic Brand Management Process.................................................................11 Identifying and developing brand plans............................................................12 Designing and Implementing Brand Marketing Program..................................13 Measuring and Interpretations Brand Performance.............................................13 PEPSI Value Chain Analysis............................................................................... 13 Brand audit....................................................................................................... 14 Maintaining /Growing the Brand Equity by Taking Corrective Actions..................14 Brand Awareness of PEPSI................................................................................... 15 Brand Imagery..................................................................................................... 15 Brand Position...................................................................................................... 16 Brand Mantra....................................................................................................... 18 Steps of Brand Building....................................................................................... 18 Brand Performance.............................................................................................. 20 Brand Judgements............................................................................................... 20 PEPSI Brand elements.......................................................................................... 22 Relationship Marketing........................................................................................ 23 Permission Marketing........................................................................................... 24 Design 4Ps in Market programs........................................................................... 24 Integrated Marketing Communications................................................................25 1.
Advertising................................................................................................. 26
2.
Sales promotion......................................................................................... 26
3.
Public relations........................................................................................... 26
4.
Direct marketing........................................................................................ 26
5.
Personal selling.......................................................................................... 26
Brand Knowledge................................................................................................. 27 Criteria for IMC program...................................................................................... 27 Brand measurement and management system...................................................27 Brand Audit.......................................................................................................... 27 Brand inventory................................................................................................... 28 Consumer mental mapping.................................................................................28 Brand equity management system/Brand charter/Brand Bible............................29 Brand development review..................................................................................29 Sources of brand equity....................................................................................... 29 Zaltmen metaphor elicitation technique (ZMET).................................................30 Five Dimensions of Brand Personality..................................................................30
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Brand awareness & recognition...........................................................................31 Brand relationship............................................................................................... 31 Methods to evaluate brand equity.......................................................................32 1.
Conjoint analysis........................................................................................ 32
2.
Brand to brand comparative approach.......................................................32
3.
Holistic method.......................................................................................... 32
4.
Multi attribute attitudinal method..............................................................33
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Brand Management Brand It is a name term, logo, symbol, design, sign or combination of these items intended to identify goods and services of one seller or group of sellers and to differentiate them from competitors. Brand name should create awareness, promises, reputation or offer in the mind of target market.
PEPSI Pepsi is produced and manufactured by PepsiCo. Created and developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961, and in select areas of North America.
Nature of Product Pepsi is a carbonated soft drink .The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the no.1 soft drink brand in Pakistan. Now days Pepsi is recognized Pakistanis national drink.
Product Strategy There are five product levels:
Core benefit Basic product Expected product Augmented product Potential product
1. Core Benefit It is the service or benefit the product is offering. In case of Pepsi, a consumer is
buying the product to quench the thirst while
dining at a restaurant, hotel or on a hot day.
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2. Basic product The core benefit triggers the basic product. For a Pepsi soft drink, the basic requirements are soda fizz & sweetened. 3. Expected product These are attributes expected by the consumer from the product. In case of Pepsi, it must be served chilled to get the real taste of the drink. 4. Augmented product It is a differentiated product that is made to exceed a consumer's expectations. Pepsi offers Diet Pepsi which is a non-sweetened soft drink for the ones who are health conscious but are not ready to give up their loyalty for Pepsi while choosing a drink. 5. Potential product This is where the company looks for innovate ways to satiate the consumer. It comes for a new to the category/ sub-category and also hence forms a new life cycle. The above 5 levels unite with the 3C model and hence we get a better understanding of where each of them lie in the model
Customer The core benefit lies with the customer. It is a realization that the customer has. When he/she is thirsty while having a meal at Dominos or McDonalds, only then a product like Pepsi comes into play to satisfy the requirement and quench the thirst. Also, a customer has minimum expectations from a product. In this case, it expects the drink to have fizz and be served cold. This is what an expected product is.
Company The basic product lies with the company, which, in this case is a carbonated soft drink that is sweet in taste. In the growth stage of a product's life cycle, the company looks of ways to innovate by coming out with new products to satisfy customers. In the case of Pepsi, Mountain
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Dew was a new to the category product launched and it was a flavoured soft drink. This is a potential product introduced in the market, with a new offering to the customer.
Competitor Basic, augmented and potential product all three get elements from a competitor's point of view. In a basic product, a competitor like Coca-Cola is also serving the same requirements that Pepsi is. It is only slightly less sweet in taste.
Why branding in PEPSI is necessary for consumers & manufacturers?
For Consumers Identification Identification in term of well recognized brand in Beverage. . For a Pepsi soft drink, the basic requirements are soda fizz & sweetened. Psychological risk reduction Pepsi comes into play to satisfy the requirement and quench the thirst. Also, a customer has minimum expectations from a product. Due to well recognized brand Pepsi reduce the psychological factor of their consumers. Reduction in research process When one is loyal customer of Pepsi then a pre decision made by consumer to purchase Pepsi when demand occurred. Reliability/Durability Pepsi has maintained reliability in its brand image and has been consistent in its brand promise of refreshing drink for Youth.
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For Manufacturers Identification Pepsi is a source of identification in case of Handling complaints, warranty and carriage. Legal protection Pepsi brand helps manufactures in case of its logo, slogan .patients, and copy rights, its unique features like sweetness. Promotion Pepsi brand helps manufacturers in case promoting their brands as a sign of quality towards customers Source of competitive advantage Pepsi brands help manufactures as a source of competitive advantage. Because Pepsi have a very large variety of brands as compared to coke.
PEPSI BRAND ELEMENTS Trademark able devices that serve to identify and differentiate the brand. Brand elements including the Pepsi brand name, logo and symbol, slogan, spokesperson, and packaging work together simultaneously to make Pepsi stand apart from its competitors.
Brand Name Highly recognizable
Logos and Symbols
Slogan “Live it Abhi” 9 | Page
Spokesperson Celebrity endorsers Jingles Pepsi currently uses music in its commercials rather than a canned jingle. This can hinder brand association and decrease memorability. Packaging Sleek and modern
PEPSI BRAND CHALLENGES Change in demand Demand for products may be adversely affected by changes in consumer preferences and tastes or if Pepsi unable to innovate or market products effectively.
Change in regulatory environment Changes in the legal and regulatory environment could limit Pepsi business activities, increase in operating costs, reduce demand of Pepsi products or result in litigation.
Financial problem Pepsi financial performance could suffer if they are unable to compete effectively. Pepsi compete on the basis of brand recognition, distribution,
taste,
price,
marketing
quality, and
product
promotional
variety, activity,
convenience, service and the ability to identify and satisfy consumer preferences.
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Grow In Emerging and Developing Markets Pepsi financial performance could be adversely affected if they are unable to grow our business in emerging and developing markets or as a result of unstable political conditions, civil unrest or other developments and risks in the markets where Pepsi products are sold.
Economic conditions Unfavourable economic conditions may have an adverse impact on Pepsi business results or financial condition.
Suppliers Pepsi operating results may be adversely affected by increased costs, disruption of supply or shortages of raw materials and other supplies.
Employees workforce If unable to hire or retain key employees or a highly skilled and diverse workforce, it could have a negative impact on Pepsi business. A portion of workforce belongs to unions. Failure
to
successfully
renew
collective
bargaining
agreements, or strikes or work stoppages could cause Pepsi business to suffer.
Intellectual property Pepsi intellectual property rights could be infringed or challenged and reduce the value of Pepsi products and brands and have an adverse impact on business, financial condition and results of operations.
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If not able to build and sustain proper information technology infrastructure, successfully implement Pepsi ongoing business transformation initiative or outsource certain functions effectively, business could suffer.
Exchange rates Fluctuations in exchange rates may have an adverse impact on Pepsi business results or financial condition.
Strategic Brand Management Process
Identifying and developing brand plans. Designing and implementing brand marketing program. Measuring and interpretations brand performance. Maintaining and growing the brand equity by taking corrective actions.
Identifying and developing brand plans Brand Position The brand position defined as how a brand wants its customers to perceive, think and feel about the brand in the marketplace, is one of the single-most important aspects of building a brand. Too many young Pepsi is the brand of refreshing non-alcoholic beverages that offers a wide selection of products to hydrate and quench the thirst of consumers while satisfying taste buds with sweet and bubbly formulas. The Pepsi brand character is youthful, strong, aggressive, hip,
forward-thinking,
highly
reputable,
and
environmentally-
conscious.
Competitive Environment While Pepsi continues to focus on a more diversified brand portfolio with many leading brands in some of the fast growing beverage categories, it recognizes that its largest competitor is Coca-Cola.
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Pepsi stated in its most recent annual report that “The Coca-Cola Company is our primary beverage competitor. Pepsi also recognizes that many of its snack and food brands hold significant leadership positions in the snack and food industry worldwide while The CocaCola Company has significant carbonated soft drink (CSD) share advantage in many markets.
Points-of- Parity Pepsi is world second largest Cola Company and it have refined brand history and also be considered modern brand image. While in Coca-Cola world largest Cola Company and strong brand history also be considered classic brand image.
Points-of-Differences In Pepsi Sweeter tasting cola with citrus undertones, Iconic and relevant brand portfolio and Associated with adventure and fun and in Coca-Cola is not as sweet with vanilla and acidic undertones Extensive brand portfolio and Associated with happiness and joy
Designing and Implementing Brand Marketing Program Mixing and matching of Pepsi brand elements Trademark able devices that serve to identify and differentiate the brand. Brand elements including the Pepsi brand name, logo and symbol,
slogan,
spokesperson,
and
packaging
work
together
simultaneously to make Pepsi stand apart from its competitors.
Leveraging secondary associations
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Some time it’s occurs a brand psychologically associated with other brand.
In
case
of
Pepsi
when
name
of
Pepsi
called
then
psychologically it’s relate to lays.
Measuring and Interpretations Brand Performance PEPSI Value Chain Analysis Value chain analysis is an analytical tool used to identify the ways in which businesses create value for customers. The essence of value chain analysis is illustrated
Support activities Firm infrastructure Human resources Technology development Procurement
Primary activities Inbound logistics Operations Outbound logistics Marketing & sales Services
Brand audit In this comparing step (1) with step (2) and after comparing results shows Pepsi is a unique challenger brand to Coca-Cola and has the potential to continue to be a market leader in the cola industry. Pepsi’s strong, aggressive, hip, forward-thinking, highly reputable, and environmentally-conscious brand personality will enable the brand to sustain its current consumers and open the door for new consumers to enjoy its diverse product portfolio.
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Maintaining /Growing the Brand Equity by Taking Corrective Actions Brand Portfolio Through
strategic
acquisitions,
partnerships,
and
new
product
developments, Pepsi has expanded its brand portfolio over the past two decades to offer a variety of products for every occasion and lifestyle. As a result, Pepsi-Cola today is the flagship brand in a portfolio of liquid refreshment beverages that includes 14 billion-dollar brands and carbonated soft drinks, juices, sports drinks and bottled waters.
Brand Hierarchy Pepsi’s primary brands include several variations and flavours of cola including Pepsi, Diet Pepsi, Pepsi Max and various limited edition flavours. Pepsi current primary brands come together to offer unique and refreshing colas that appeals to a broad audience. Moreover, Pepsi extended sub-brand portfolio includes a variety of beverages including Mountain Dew, Miranda, 7up stings energy drink All of Pepsi’s brands cater to different market segments and rarely cannibalize each other’s sales.
Brand expansion strategy
Business
Strategy Corporate Strategy-Brand Portfolio Strategy Creation of a new Global Nutrition Group Global Strategy-Strategic Alliance Strategy
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Strategy-Integrated
Cost
Leadership/differentiated
Brand Awareness of PEPSI What is Brand Awareness? Brand awareness is the public existence or recognition of the Brand. In other words, how much the customer is aware about the Brand is termed as Brand Awareness. Pepsi has maintained very good awareness for its brand in the market.
Why brand awareness is important? Brand Awareness is a key process to gain initial contact with customers, build relationship & convert them to become loyal. If there is no brand awareness in market, the brand would become useless. More the brand awareness is built more the chances of success.
Building brand awareness? Building Brand Awareness is a process to advertise the brand to a level that every customer of the market segment should know about the brand and its products. Building Awareness involves messages, logos, symbols and taglines as well. Pepsi is also keenly engaged in building its Brand Awareness to become Competitive. If customers are unknown of the. brand, how they can attach with the brand. Pepsi is also using advertising intensively for building its brand awareness. Besides this, various other promotional strategies like sales promotion, sponsorships, and seasonal campaigns are also used to build brand awareness
Brand Imagery Brand imagery can be defined as the intangible associations of the brand. The Pepsi brand has been effective in satisfying and fulfilling consumers’ psychological and social needs. Some consumers feel that Pepsi has “leveraged more celebrity endorsements while Coca-Cola utilizes their
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Americana
brand
image”
Likewise,
Pepsi
consumers
base
their
associations of the brand on the celebrities who promote and drink Pepsi cola products. Pepsi is most notable for using high profile celebrities including Ali Azmat, shahid afridi , Misbah ul Haq, sanam saeed, Mahira khan, Fawad khan, to intrigue and appeal to consumers’ social needs. The celebrity endorsers are young, hip, fresh, and well-known in a community which creates an ideal mental image of the actual consumers of the PEPSI brand.
Brand Position “The brand position, defined as how a brand wants its customers to perceive, think and feel about the brand in the market place. It is one of the single-most important aspects of building a brand. Brand positioning is at the heart of marketing strategy. As a company that currently operates in over 200 countries and territories, diversity and inclusion are essential to Pepsi’s growth and success. Pepsi continuously strives to mirror and replicate
the
diversity
of
its
consumer
base
to
have
a
better
understanding of its consumers Rather than taking an offensive approach, Pepsi utilizes niche positioning to focus on dominating a segment of the soft drink In order to effectively connect with its consumers. The Pepsi brand character is youthful, strong, aggressive, hip, forward-thinking, highly reputable, and environmentally-conscious. Further investigations of the five distinct elements that compose Pepsi’s position are subsequently outlined.
Target Audience Stronger overall focus on the consumer experience is elevating Pepsi’s connections with consumers. Who exactly are these consumers that are most influenced and motivated by the Pepsi brand? As evident in many of its advertisements and branding efforts, Pepsi has historically targeted a younger, urban audience of single, active teenagers and young
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adults. The majority of Pepsi’s market is comprised of aged 16 to 45 who are typically middle class, middle income, and rural and urban dwellers. The Business Insider suggested that Pepsi fans are less likely to have attended college or speak more than one language. Furthermore, Pepsi has identified its consumers as those who are interested in sports and entertainment and are proven brand loyalists.
Category Need Since the 17th century when soft drinks were first marketed, there has been an increased demand for carbonated beverages. Pepsi successfully entered the market one century later as one of the leading providers of refreshing non-alcoholic beverages. Over the years, Pepsi has evolved its brand as consumers’ wants and demands
have
changed.
To
appeal
to
a
large
consumer
demographic, Pepsi has expanded its brand portfolio to fulfill the current category need. Key Brand Benefits Brand benefits are the personal value and meaning that consumers attach to the product of service attributes” (2013b, p. 49). When consumers are thirsty, need to placate cola cravings, or are in need a boost of caffeine, Pepsi has an extensive portfolio of products to satisfy fundamental beverage needs. Purchase Motivators To reinvigorate its name sake brands after losing market share to Coca-Cola Co. in recent years,” Pepsi has included a mix of artificial sweeteners in its colas and continues to offer a bold, refreshing, and sweet tasting cola that many individuals find appealing. Consumers of Pepsi products enjoy the variety of formulas and is the key motivator for their purchases and loyalty to the brand. Brand Charter Although Pepsi is considered to be a unique challenger brand of Coca-Cola, the company continues to position itself on the cutting-
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edge of the beverage industry. Rather than continuing to be dominated and overshadowed by its competitors, Pepsi embraces an aggressive branding approach to communicate a hip and youthful brand image to its consumers. Competitive Environment While Pepsi continues to focus on a more diversified brand portfolio with many leading brands in some of the fast growing beverage categories, it recognizes that its largest competitor is Coca-Cola. Pepsi stated in its most recent annual report that “The Coca-Cola Company is our primary beverage competitor. Other food and beverage competitors include. The point of parity is that that they are two very famous fresh soft Drinks. The point of difference is the image that they reflect Pepsi is trendier and cool with an image of young people and celebritieswhie Coca-Cola is an emotional brand. This is because of advertising campaigns both they spread.
Brand Mantra It is a short 3 to 5 phrase, Brand Mantra slogan. For Pepsi it was 1. Young 2. Celebrities 3. Fresh 4. Sports
Steps of Brand Building 19 | P a g e
Step 1: Brand Identity – Who Are You? In this first step, your goal is to create "brand salience," or awareness – in other words, you need to make sure that your brand stands out, and that customers recognize it and are aware of it. You're not just creating brand identity and awareness here; you're also trying to ensure that brand perceptions are "correct" at key stages of the buying process. Pepsi’s brand identity has transformed over the years, but primarily it has remained as a youthful brand which empowers people to enjoy their youth.
Step 2: Brand Meaning – What Are You? Your goal in step two is to identify and communicate what your brand means, and what it stands for. The two building blocks
in
this
step
are:
"performance"
and
"imagery.""Performance" defines how well your product meets your customers' needs. According to the model, performance
consists
of
five
categories:
primary
characteristics and features; product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price."Imagery" refers to how well your brand meets your customers' needs on a social and psychological l level. Your brand can meet these needs directly, from a customer's own experiences with a product; or indirectly, with targeted marketing, or with word of mouth. 20 | P a g e
Step 3: Brand Response – What Do I Think, or Feel, About You? Your customers' responses to your brand fall into two categories: "judgments" and "feelings." These are the two building blocks in this step.
Your customers constantly make judgments about your brand and these fall into four key categories:
Quality: Customers judge a product or brand based on its actual and perceived quality.
Credibility: Customers judge credibility using three dimensions – expertise
(which
includes
innovation),
trustworthiness,
and
likability.
Consideration: Customers judge how relevant your product is to their unique needs.
Superiority: Customers assess how superior your brand is, compared with your competitors' brands.
Customers also respond to your brand according to how it makes them feel. Your brand can evoke feelings directly, but they also respond emotionally to how a brand makes them feel about themselves. According to the model, there are six positive brand feelings: warmth, fun, excitement, security, social approval, and self-respect.
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Step 4: Brand Resonance –what about you and me? It means different types of marketing activities are executed and especially it is taken care of that activities remain consistent with each other. These activities are conducted consistently with consideration of time frame to create an overall strong image about the brand the vat could provide strongly competitive advantage. The slogan Live it Abdi, does not urge you to drink Pepsi ‘right now’ as it may seem to suggest but seeks to give the brand a new consumer resonating identity.
Brand Performance Because Pepsi is a challenger brand in the beverage industry, the company must make more diligent efforts to “ensure consumers’ experiences with the product at least. Pepsi currently offers a variety of beverages its consumers want with quality and trusted primary ingredients. For its consumers, the Pepsi website has an extensive ingredient glossary that helps explain how each essential ingredient works together to create the perfect beverage. Pepsi provides its customers soft drink at a price lower than most of the non alcoholic drink.
Brand Judgements The Brand Judgement means, what customer decides with respect to the product? The customers make the judgment about the product by consolidating his several performances and the imagery associations with the brand. On the basis of these, the final judgment is made about the product in terms
of
its
Perceived
Quality,
Credibility,
Consideration,
and
Superiority. When consumers get a hold of a Pepsi Cola product, they
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are expecting the sweet, citrusy flavour burst. Through taste, cheaper price and frequent campaigns has also become one of the most famous brand as a non-alcoholic soft drink. This opinion could be developed on the basis of 4 factors 1. Brand quality 2. Brand credibility 3. Brand consideration 4. Brand superiority
Factors effecting Brand equity to enhance Brand Value investment in marketing programs Quality of market programs Quality of marketing programs means programs should be 1. Distinctive 2. Relevant to endorsing the brand 3. Try to achieve excellence in marketing programs 4. They must be integrated 5. Portray image of brand as a valuable product
Precise evaluation of customer perception Market place conditions
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Investor’s interest
PEPSI Brand elements Brand Elements Trademark able devices that serve to identify and differentiate the brand. Brand elements including the Pepsi brand name, logo and symbol, slogan, spokesperson, and packaging work together simultaneously to make Pepsi stand apart from its competitors. Brand elements must be Memo ability A necessary condition for building brand equity is achieving a high level of brand awareness Pepsi has a highly recognizable brand name across the globe and is inherently memorable and attentiongetting which helps in overall consumption. The brand has successfully positioned itself in the marketplace so that the Pepsi brand name can be easily recalled by consumers.
Meaningfulness The colour red can be described as exciting, youthful, and bold while the colour blue is associated with dependability, trust, and strength. The colours used in the Pepsi logo and packaging are great indicators of the type of brand Pepsi aspires to be and suggests the
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position taken by the company. Furthermore, the combination of colours can ultimately persuade consumers to be able to properly identify Pepsi products.
Likeability Pepsi’s packaging is modern and sleek and is aesthetically pleasing which helps identify the brand, convey descriptive persuasive information, facilitate transportation and protection, assist in athome storage, and aids in product consumption. Moreover, Pepsi uses celebrities as its spokespeople which help the brand more fun and interesting.
Transferability Because Pepsi is a global brand, its brand elements must be able to transfer through various cultures and regions. Pepsi’s iconic symbol and logo as well its slogan are easily transferable within various product categories and across geographic boundaries and cultures. All three elements work together synonymously to successfully introduce the Pepsi brand into new markets.
Adaptability Over the years, the Pepsi logo has adapted its image as well as its logo to aid in product consumption. To remain contemporary and relevant to consumers, Pepsi has embraced change as evident in its various logo forms. Below is the evolution of the Pepsi logo which has proven its ability to adapt over time.
Protect ability The
Pepsi
brand
is
legally
and
highly
protected
from
any
unauthorized use. Its logo, symbol, and brand name cannot be infringed by another company cannot utilize and copy either the logo or the symbol.
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Relationship Marketing It is concerned with providing service additional benefits that could create a stronger bond with consumer to increase the brand loyalty as well as brand resonance.
Mass customization An attempt is made to take care of needs and wants .it is tried that individual differences and varying tastes & preferences are covered.
One -to-One Marketing Focus on individual consumers which could be detected 1. Data basis 2. Respond to consumer query and complaints 3. Try to customized products & services on the basis of feedback
Permission Marketing Permission marketing is the privilege of delivering anticipated, personal, and relevant messages to people who actually want them. Permission marketing means consumer will allow to design and conduct particular marketing campaign. After that
Design 4Ps in Market programs Product Main Aspect is to Build brand equity is
perceived quality
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The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. If intended purpose is fulfilled then perceived quality is high. Sweetness, better taste fresh beverages supply are the Pepsi product qualities. After Marketing services After sales service refers to various processes which make sure customers
are
satisfied
with
the
products
and services of
the
organization. The needs and demands of the customers must be fulfilled for them to spread a positive word of mouth. After that 1. Take feedback from the consumers. 2. Make changing according to the feedback required. 3. Regularly take information from loyal customers. 4. Try to engage as many people as possible.
Pricing In this how a consumer could categorize the price of brand. 1. 2. 3. 4. 5.
Following strategies are Price intensity Flexibility EDLP Value based pricing strategy Economy of scale
Placement Direct channels Intermediaries are not involved and the product is sold through emails catalogues phone personal contacts .following of Indirect channels 1. 2. 3. 4. 5.
Brand stores. Exclusive or dedicated websites. Factory outlets. Catalogue retailers. Manufacture and middlemen joint
advertising to enhance brand equity. 6. Store with in a store.
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to
gather
for
corporate
Promotion Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. a. Buy 1, Get 1 FREE b. Discount c. Coupons d. Rebates e. Promotional Pricing f. Loyalty Programs g. Sampling and Free Trials h. Free Product
Integrated Marketing Communications Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony.
1. Advertising Advertising is a paid form of nonpersonal communications about an organization, its products, or its activities that is transmitted through a mass medium to a target audience. The mass medium might be television, radio, newspapers, magazines, Outdoor displays, car cards, and directories.
2. Sales promotion
It is an activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product. This inducement, which adds value to or incentive for the product, might take the form of a coupon, sweepstakes, refund, or display.
3. Public relations
It is a non personal form of communication that seeks to influence the attitudes,
feelings,
and
opinions
of
customers,
noncustomers,
stockholders, suppliers, employees, and political bodies about the organization. A popular form is publicity, which is a nonpaid form of non personal communication about the organization and its products that is
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transmitted through a mass medium in the form of a news story. Obviously, marketers seek positive publicity.
4. Direct marketing
It uses direct forms of communication with customers. It can take the form of direct mail, online marketing, catalogues, telemarketing, and direct response advertising. Similar to personal selling, it may consist of an interactive dialog between the marketer and the customer. Its objective is to generate orders, visits to retail outlets, or requests for further information. Obviously, personal selling is a form of direct marketing, but because it is a very personal form of communication, we place it in its own category.
5. Personal selling
It is face-to-face communication with potential buyers to inform them about and persuade them to buy an organization’s product. It will be examined in detail in the next chapter.
Brand Knowledge It is a function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions and of associations for the brand In IMC Brand knowledge have different levels 1. 2. 3. 4. 5. 6.
Brand exposure Brand notice Brand comprehension Brand yielding Brand intention Actual brand behaviour
Criteria for IMC program
Coverage - reach and impressions
Contribution - main effects of communications on consumers
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Commonality - consistent and cohesive brand image in every communication
Complimentary - linkages of different communications
Versatility - degree of appeal to all aggregates
Brand measurement and management system These systems are used to evaluate the brand performance & take necceassary actions for improvements in brand image.
Brand Audit It is a comprehensive examination of brand to identify the source of brand equity strength in terms of brand resonance & competitive position in terms of brand loyalty. Mostly brand audit is taken by third party. It is a three step process 1. Reviewing the scope objective and approach to brand building. 2. Data collection. 3. Comparing the objective with actual performance.
Brand inventory Current profile of the brand in term of brand strength & weakness. Both qualitative and quantitative
techniques are used. Mostly
qualitative techniques are used for brand audit in these are 1. Word association 2. Sentence completion 3. Empty balloons 4. Cartoon characters 5. Consumer from another plant 6. Personification 7. Card association 8. Photo sorts 9. Story telling 10. Role playing 11. Photo description 12. Detailed interview
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Consumer mental mapping Mental map describe brand association and responses to a particular
brand
for
a
target
market.
Mental
map
describe
association correlation or perception related to a particular brand. Mostly qualitative techniques are used for mental mapping in which used for mental mapping 1. 2. 3. 4. 5.
Brand
Assessment of depth and breadth of brand awareness. Uniqueness of brand association. Strength of loyalty. Position in terms of brand resonance. Strength of favorability.
equity
management
system/Brand
charter/Brand Bible Documents containing the relevant guidelines to the marketing managers to help deciding marketing activities .Following are these 1. Why we are branding. 2. How are small it is a resource for company. 3. Scope of the key brand is associated products as well as competitive 4. 5. 6. 7. 8.
product. Diff b/w actual and desired brand equity. How brand equity is measured. Strategic guidelines/suggestion to improve equity. Detail of marketing programs. Miscellaneous issues such as use of trade mark logo etc.
Brand development review 1. 2. 3. 4.
Review Review Review Review
the brand sensitive material. the status of key brand initiatives. the damages/affects by brand sensitive projects. the new product and distribution strategies with
respect to core brand values. 5. Resolve brand positioning conflicts.
Sources of brand equity
In this qualitative techniques are used 1. Who buys our product? 31 | P a g e
2. Who make the buying decision? 3. Who influence the decision? 4. What need is to be satisfied? 5. Why customer are buy to a particular product? 6. What social factor may influence? 7. Does customer life style influence? 8. What is perception about our product? 9. What kind of persons mostly using our products? 10. What is customer attitude towards our product?
Zaltmen metaphor elicitation technique (ZMET) The Zaltman
metaphor
elicitation
technique (ZMET)
is
a patented market research tool. ZMET is a technique that elicits both conscious and especially unconscious thoughts by exploring people's non-literal or metaphoric expressions. This technique is based on beliefs that consumer often have sub conscious motives for their purchasing behavior exact preferences may be unaware by consumer him/herself. a detail psychological profiling is required and following projective techniques are used 1. Story telling 2. Expand the frame 3. Sensory metaphor Metaphoric responses are elicited about a particular research topic. 4. Vignette Use mind’s eye to create a story about research. 5. Digital image Integrating different images to create a visual summary.
Five Dimensions of Brand Personality The Five Dimensions of Brand Personality is a framework to describe and measure the personalit of a brand in five core dimensions, each divided into a set of facets. It is a model to describe the profile of a brand by using an analogy with a human being. THE FIVE CORE DIMENSIONS AND THEIR FACET These are: 1. Sincerity
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(Down-to-earth, honest, wholesome, cheerful) 2. Excitement (Daring, spirited, imaginative, up-to-date) 3. Competence (Reliable, intelligent, successful) 4. Sophistication (Upper class, charming) 5. Ruggedness (Outdoorsy, tough)
Brand awareness & recognition
Identifying the brand from within the variety of the brands. Both are based on brand perception and recall abilities. Both could be influenced by the packaging of the brand. The effect of packaging could be affected by following factors a. Shelf space b. package size c. Visibility d. Design elements e. Distance from point of sale f. Angle from which brand could be identified g. Walking speed
Brand relationship Attachment of customers with regard to a specific brand may constitute brand relationship It includes 1. Behavioural loyalty 2. Attitudinal attachment 3. Sense of community/commonality
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4. Active engagement Brand dynamics It includes aggregation of different elements to show the strength of relationship of a brand with different elements. Brand dynamics consist of 5 steps 1. Awareness 2. Relevance 3. Performance 4. Advantage 5. Bonding
Methods to evaluate brand equity 1. Conjoint analysis A survey based multivariate technique that enable marketers to profile the consumers’ decision process with respect to products and brands. Various steps are 1. Need identification 2. Identification of alternative 3. Evaluation of alternative 4. Post purchase behaviour
2. Brand to brand comparative approach In this method different competitive brands are compared one to one basis to evaluate the brand effectiveness. Blind testing Customer examines a product with or without brand identification or shuffled identification to report about features quality taste of brand. Example difference between Pepsi and coke taste. Mostly brand are recognized with a particular features and mostly customers find it hard to distinguish that features among competing brands.
3. Holistic method They are psychological in nature and customers are asked to judge the overall value of the brand in terms of either abstract utility or concrete financial terms. Those customers ask to rate level of satisfaction or
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determine amount he or she is willing to pay for a particular brand. To evaluate financial term data from scanner panels are also used.
4. Multi attribute attitudinal method
It is a psychological testing which used comprehensive combination of different attributes and there affect on customer perception. Including the attributes which may not necessarily be part of core product. Difference evaluated between subjectively perceived attributes and attributes related to a particular brand.
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