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    Seminar Part I

    Branding Concepts

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    What Is a Brand?

    A

    product

    Aservice

    A

    logo

    A

    packaging

    A

    shopA

    country A

    person

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    Brand = Product + Images

    More than just the product or the service

    Add the intangible images that come to mind

    Add the usage occasions that come to mind

    Add the user imagery that comes to mind

    Brand = Values + Added values

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    Brand-building : The Focus

    Not just a one-off exercise

    Continuously track brand appeal, brand image

    with target consumers

    Keep re-looking at all the aspects of the brand to

    keep it relevant and attractive

    End purpose : Attract and Retain customers

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    Understanding Brands : Aakers Model

    Brand as Product Brand as Organization

    Brand as Person Brand as Symbol

    Value Proposition (Emotional/Rational/Self-expressive)

    Credibility (Support / Proof / Story )

    Extended

    Core

    Brand

    Essence

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    Physique Personality

    Self-ImageReflection

    CultureRelationship

    PICTURE OF RECIPIENT

    PICTURE OF SENDER

    The Kapferer Brand Identity Prism

    INTERNALISATIONEXTERNALISATION

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    Brand-building Advertising Seminar

    Self-test -1

    Brand: Amul

    Draw Aakers model

    Draw Kapferers prism

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    AMUL : Aakers Model

    Extended

    Available

    Food

    Brand

    Essence:

    Core

    ValueTaste

    IndianQuality

    Pride

    Variety

    Milk

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    Physique :

    Taste, QualityPersonality :Simple, Indian

    Self-Image :Proud Indian, Fun loving

    Reflection :Value Oriented

    Culture :Co-operative, Sharing

    Relationship :Sociable

    AMUL : Kapferers Prism

    AMUL

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    Brand-building: The Steps

    Determine the current image with consumers

    Define the desired image

    Identify focus areas for action

    Product development/innovation

    Packaging/delivery systems

    Advertising/promotions

    Implement action plan witha monitoring programme

    Feedback to action plan

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    Objective of advertising

    Build the business today and buildbrand value overtime

    All advertising has to pass through this objective

    test

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    How does Advertising build Brands?

    Building brand salience

    TOM

    Unaided awareness - aided awareness

    Building brand appeal

    Intention to try - trial

    Reinforce usage - increase usage

    Building brand imagery

    Usage imagery - user imagery

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    Building Blocks forBrand-building Advertising I

    MarketanalysisSize, volume, value, growth, geographic, seasonality

    Consumeranalysis

    Size, demographic,

    geographic

    Usage, depth, width

    Companyanalysis

    Size, profitability,

    distribution,

    technology

    Competitor analysis

    Size, profitability, strengths, weaknesses

    Brand

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    Building Blocks forBrand-building Advertising II

    Market analysis + consumer analysis + company analysis + competitor analysis

    Marketing objectives

    Sales, market share, profits

    Marketing strategy

    Product, pricing, distribution, service, packaging

    Advertising & sales promotion

    Advertising objective

    Awareness, salience,Image, attitude

    Advertising strategy

    Creative strategy,Media strategy

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    How Does Advertising Work I

    Awareness

    Knowledge

    Liking

    Preference

    Conviction

    Purchase

    Classic Hierarchy of Effect Model

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    How Does Advertising Work II

    Hierarchy of effect model tends to assume that advertising worksthe same way for all product categories

    Work on understanding Consumer Behaviour revealed thatadvertising would work differently for different products

    Several new models were developed in the eighties and thenineties

    One such model was the FCB Grid

    The Grid categorised products as

    High involvement Vs low involvement

    Thinking Vs feeling

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    How Does Advertising Work IIFCB Grid

    High involvement

    Consumer is involvedwith the productcategory; identifies with

    it and often takes time todecide which brand to use

    E.g.: TV, car, perfume,clothes, insurance (?)

    Low involvementConsumer is not involved;

    tends to see the utilitarian

    values of the category;routine/quick decision

    making

    E.g.: detergents, fuel,

    flour, mobile service (?)

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    THINKING FEELING

    HIGH

    INVOLVEMENT

    LOW

    INVOLVEMENT

    Advertising to fit FCB Grid requirements

    LEARN-FEEL- DO

    I) INFORMATIVE

    FEEL-LEARN-DO

    II) AFFECTIVE

    DO-LEARN-FEEL

    III) HABITUAL

    DO-FEEL-LEARN

    IV) SATISFACTION

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    Category Differences

    Consumer

    Products

    Consumer

    Durables ServicesCorporate

    Lower values Higher values Indeterminate No value

    Frequent purchase Infrequent Indeterminate Variable

    Narrow/BroadTarget customer

    Narrow TargetCustomer

    Variable Very wide/variable

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

    category type

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    Brand-building Advertising SeminarFCB Grid - Self-test 2

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

    Thinking Feeling

    High

    Involvement

    Low

    Involvement

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    Seminar Part III

    Consumer Products

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    Consumer Products : What are they?

    Low value, repeat purchase, consumption products

    Male target : Cigarettes, soft drinks, colognes

    Housewife: Soaps, shampoo, cooking oil, detergents

    Teenagers: Soft drinks, confectionery, stationery

    Repeat usage/purchase: everyday, every week, every

    month

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    ome consumer products could

    be high involvement

    Perfumes, Cigarettes

    Health aids, Baby foods

    Consumer Products : Types

    Often low involvement,

    routine purchase or

    impulse purchase

    What is the consumer issue

    facing the brand?

    Poor awareness leadingto poor trial

    Poor repeat usage afterhigh trial

    Lack of desired imageperceptions

    What is the key task?

    Attracting new users

    Retaining existing users

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    Consumer Product Purchase Behaviour 1

    Who decides, who buys, who influences

    Map the key influences in the purchase

    process

    Example

    Toothpaste : Housewife (decision maker)

    Kid (influencer)

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    Consumer Product Purchase Behaviour 2

    Limited level ofinformation searchby consumers

    Often a routinisedpurchase or animpulse purchase

    Extended problemsolving only in thecase of innovation

    Cream forfoot cracks

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    Consumer Product PurchaseBehaviour 3

    All India Household Category penetration

    Soaps 99%

    Washing cake 93%

    Toothpaste 44%

    Hair oil 77%

    Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI

    Consumer Product Life Cycle : What stage is the product ?Introduction / Growth / Maturity / Decline

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    Role of Advertising

    Fitting into the AIDA /hierarchy of effects

    model

    Awareness

    Interest

    Desire

    Action

    Going beyond :using product

    category

    information ;

    learn - feel - do ?

    Giving users the

    desired image

    messages

    Attracting non-

    users to the brand

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    Brand-building Advertising Seminar

    Self Test 3

    Consumer panel data shows the following:

    aaaabaacbabcbabbb

    a, b, c are three brands

    Draw three inferences from the data

    What should be the role of advertising for Brand

    a ?

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    Santoor : Phase I Promotion

    Advertised as a sandal + turmeric soap

    Offering age old beauty secrets of India

    Price flagged off at the end

    Traditional imagery of woman in sari,

    temple, sandal paste

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    Santoor : Phase I Results

    Brand attracted decent volumes : 2,500 tonnes

    Got a core group ofValueoriented consumers to

    try and remain with the brand

    But growth stopped in Year 2

    No new users coming into brand !

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    Santoor : The Ingredient Vs The Benefit

    Santoor selling ingredients to a set of believers

    But not many knew of the benefits the brand and its

    ingredients offered

    Why not move away from ingredient based

    advertising to benefit based advertising?

    What if the core users moved away thinking the brand

    has changed?

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    Captain Cook Atta - Farmer to Home

    Captain Cook Salt launched in mid eighties

    After a few false starts established a strong hold in

    the market against Tata salt with the free flowfeature

    Captain Cook brand seen as an aggressive,

    combative, young brand

    Plans on to extend Captain Cook to other food

    products

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    Captain Cook Atta : Atta - the Centerpiece

    Housewife derived self-worth from the appreciation of

    cooking from family members

    Atta seemed to be critical to the cooking process - a major

    concern area

    Most households were into buying grain carefully and

    getting it milled

    Very low penetration of packed branded atta

    So a problem with many dimensions!

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    Advertising Tasks

    Create awareness of the new offering packed -

    branded - atta from captain cook

    Build conviction to try the brand by addressing

    key consumer concerns

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    Captain Cook Atta : Key Trigger

    Consumer research revealed that

    Quality of grain is key

    Consumer suspicious of quality of grain

    Will the consumer try the new offering if

    convinced?

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    Captain Cook Atta: Sugar-coating

    How to make the story even more credible?

    How to break through the consumer apathy and

    incredulity?

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    Captain Cook: Media Thrust

    Focussed inputs through TV medium with long

    format TVC

    High impact, long burst of TV advertising

    Supported with only outdoor medium

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    Captain Cook : Impact

    Captain Cook Atta virtually created the branded atta

    market

    Moved consumers from grain + chakki orientation to

    packed brands

    High trial rate and reasonable retention attracted

    attention of the food majors

    Leading to a boom in the branded atta market

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    Seminar Part IV

    Consumer Durables

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    Types Of Consumer Durables

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    Types Of Consumer Durables

    The more expensive more complex durables

    Cars, TVs

    Call for more information, more search

    Less expensive, less complex durables

    Sewing machine, steel cupboard

    Call for less search

    Complexity of purchase will also be dictated by the SEC

    of the consumer: Two wheeler Vs car

    Mixie Vs cooking range

    Fan/air cooler Vs air conditioner

    S lit f C D bl

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    Seasonality of Consumer DurablePurchase

    Often consumer durables account for a large part of the

    household income:

    Car = 12 months income

    TV = 1 months income

    Purchase is planned out over a long period of time

    Specific seasonal peaks

    Diwali : All durables

    Pre-summer : Cooling aids

    Wedding season : All durables

    September/March - Depreciation benefits

    Sources Of Information

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    Sources Of Information

    Extended search of information hence many sources of information:

    Word of mouth : from other users of the product/brand

    Dealers : sources of deep knowledge

    Experts : mechanics/service engineers

    Advertising : mass media - press, TV

    Literature : comparison across brands/models

    Internet : In US 40% all car buyers use the net

    for information

    Unlike consumer products many more sources are used for

    collecting, analysing information before a purchase decision is made

    Key Areas Of Enquiry

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    y q y

    Product oriented

    Key features of the product

    Models available

    Pricing

    Price comparison across models

    Financing options available

    Availability

    Dealer points available

    Reputation of dealer

    Service

    After sales service set up

    Installation and maintenance

    Running cost

    Fuel consumption, electricity

    consumption A brand reputation

    Reputation of the brand

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    How To Advertise

    Depends on the type of durable, the target audience, thefeatures offered, the competition

    Emotional touch will work if - features are all similar,

    competition high, consumer is not rational in purchase

    Features based appeal if - brand offers unique features,

    competition is not in a position to match

    Benefit based appeal if - brand model offers unique benefits

    (quick ice), not yet capitalized by competition

    Role Of Advertising

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    Role Of Advertising

    Consumer durable advertising cannot sell the brand since

    purchase is often complex

    Advertising to

    Create awareness

    Disseminate information

    Build conviction

    Drive visit to dealers for

    Enquiry

    Demonstration

    The final sale is clinched at the dealer showrooms

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    Brand-building Advertising Seminar

    FCB GRID for Durables - SELF Test 6

    Plot : 21 colour TV

    Ceiling fan

    Car

    Steel cupboard

    Scooter

    Computer

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    VOLTAS - MEGALAUNDRETTE:

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    VOLTAS MEGALAUNDRETTE:Making Impossible Possible

    Mid 90s - Indian consumer discovering washing machines

    Decrease in excise duty making washing machines more

    affordable:

    Do you want us to be known as a country of maids?

    Prime minister P V Narasimha Rao

    Influx of over 25 brands:

    Videocon, TVS Whirlpool, Maharaja, IFB, BPL, Godrej, National

    The market getting overcrowded in a very short period

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    Voltas Washing Machine

    The range positioned as the LAUNDRETTE RANGE

    Voltas Launderette offers laundry level of cleaning

    Thus moving out of the confines of the white, quick wash

    offered by other brands The brand launched with a range of machines under the

    umbrella

    Quandry: which model to promote?

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    Product Interrogation

    Examined all the models offered by Voltas and all

    other Indian brands

    Analysed all the claims and offers made by Indianbrands

    Looking for a distinctive promise that is relevant,

    believable and unique : The RUB TEST

    The Different Differences

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    The Different Differences

    Voltas offered a large capacity washing machine - not matched byany other brand

    Large capacity seen by Indian marketeers as just a size offering

    without any real value

    Can size be the differentiator?

    Indian families are large

    Clothes tend to get dirty everyday and need to be washed

    Can size be offered without diluting the key benefits of washing

    clean?

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    GODREJ Storwel treasuring

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    GODREJ Storwel-treasuringMemories

    A heritage brand that is over 50 years old

    Origins of the brand date back to the days when

    Godrej used to make safes

    Storwel product conceived as an affordable safe

    for keeping the family valuables

    Godrej pioneered the product category and sold itthrough exclusive showrooms

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    Emotional Rescue

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    Can Godrej Storwel be sold on emotions, if so how?

    Research revealed that Godrej Storwel is bought duringspecific occasions - marriage

    - New baby

    - New home Advertising route was taken to link these happy moments

    with Godrej Storwel

    A series of jingle based commercials were produced

    P t t T St d I t

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    Pre-test To Study Impact

    The TVCs tested in an animatic form to study impact andattitude change

    Scored high on break through/cut through

    More importantly improved attitude on

    - Good value

    - Long lasting

    In fact built emotional bonding with consumers whilesubliminally strengthening rational benefits offered by the brand

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    Godrej Storwel TVC : Wedding

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    Godrej Storwel TVC : Mother-to-be

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    The Campaign

    Godrej Storwel campaign on emotional plane was

    started in 1986 and continues today 15 years later

    Godrej Storwel continues to command a premiumin the market and sells in the face of newer

    competition

    Brand building Advertising Seminar

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    Brand-building Advertising Seminar

    Godrej Storwel: Self Test 8

    What other brand-building initiatives would be

    needed to keep Godrej Storwel strong in the next

    decade?

    Product initiatives

    Promotion initiatives

    Can you name a couple of other durable brandswho have used emotional appeal?

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    Seminar Part V

    Services

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    What Are Services?

    One day all brands will be service brands!

    When a success of an automobile depends on service

    network? When a durable brand depends on the pre-sales and

    after-sales service?

    When a consumer product purchase can beinfluenced by the retail environment?

    Services Brand Types

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    Services Brand Types

    Services are bought by consumers, at times without being conscious of the brand

    image

    A telephone service

    An airline

    A hotel

    ATV channel

    A website

    A bank

    A retail chain

    All these and more are services that consumers buy, everyday - but are they

    brands?

    Services Brands - Relevance

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    Telephone service : MTNL Vs BPL Vs Orange

    Hotel : Taj Vs Quality Inn Vs Welcomgroup

    Bank : State Bank Vs Citibank Vs Central Bank

    Branding concepts have been applied to services not too long ago -

    and the art is still being perfected

    When a customer chooses a bank what are the reasons:

    - The location

    - The word-of-mouth

    - The decor

    - The staff

    - The brand?

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    S i B d I P ti

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    Services Brands - Image Perceptions

    Often more complex than an FMCG or durable

    High reliability on the human element

    Every interaction with the services brand could lead toimage change

    Need to bring about uniformity

    Staff training is key Coupled with pricing, decor, ease of use, location,

    communication

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    Services Advertising Paradigms

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    Services Advertising Paradigms

    Information Driven Image Driven

    - Introduction of new service - Image of the user

    - New pricing plans - Image of the usage occasion

    - New offers - Cue type-of-desires fulfilled

    - New features - Imply self image

    - Rational focus - Emotional focus

    Two classical ways services use advertising

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    B ildi C t R l ti hi

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    Building Customer Relationships

    Services brands need to fellow a step-by-step

    process to build customer relationships

    Identify customers

    Understand the need of the customers

    Tailor value propositions

    Test the propositions

    Make offers to customers

    Reward long-term usage

    Building Customer Loyalty

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    Services brands that attract high loyalty achieve long-term

    success Loyalty programmes

    Frequent flyer miles : airlines

    Bonus points : credit cards

    Discount cards : retail

    Coupled with the loyalty programmes services brands offer

    - Special services to loyal customers

    - Special prices to loyal customers

    - Special messages to loyal customer

    - And communicate regularly with them

    In short make the loyal customer feel special!

    Brand-building Advertising Seminar

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    Brand building Advertising Seminar

    FCB Grid - Services Brands - Self Test 9

    Services come in all types

    Basic telephony

    Shares

    Insurance

    Hotel

    Airline

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    Bangaram Island Resort : Thank God !

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    Bangaram Island Resort : Thank God !

    An independent island in Lacadives

    Popularised by Rajiv Gandhis family holiday in the

    90s.

    Run by the Casino group of Cochin

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    Tourism Hierarchy

    I di i h hi h f f h lid

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    Visit to home town / village

    Pilgrimage / holy city trip

    Visit big city

    Visit hill station / beach resort

    Visit international big cities

    Visit exotic domestic locations

    Bangaram fitted in here

    Indian tourist moves up the hierarchy of type of holidays

    Attracting International Tourists

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    Attracting International Tourists

    High cost of advertising in international press

    However need to build word-of-mouth in western

    markets

    Targeted the specific travel agents and travel writers Invited this elite group for a holiday to Bangaram

    Resulted in excellent write-ups in high profile travel and

    holiday journals

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    Bangaram Press Ad

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    Brand-building Advertising Seminar

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    BANGARAM : Self Test 10

    What could be other modes of marketing

    communication that could have been used by

    Bangaram?

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    E t l B ildi A C ll l F il

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    Escotel - Building A Cellular Family

    Escotel - the cellular company from the

    Escorts group

    Licensee for western UP, Haryana and Kerala

    One of the first movers in the cellular

    industry

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    Escotel Sansar

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    Escotel Sansar

    Created the concept of Escotel Sansar, the

    Escotel family

    This new family stood for the new aspirations

    of the modern customer

    Captured the ethos of Escorts: long-standing

    trust and value

    Escotel Values

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    Escotel Values

    To sell the service with price plans or to sell

    brand values - the first challenge

    Need felt to sell Escotel as a brand that stood for

    new hopes, new horizons, new aspirations of

    todays consumer

    Avoided the price based advertising in the first

    full phase of launch

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    Escotel Press Ad 1

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    Escotel Press Ad 3

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    Escotel Press Ad 3

    Escotel Press Ad 4

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    Brand-building Advertising Seminar

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    ESCOTEL : Self Test 11

    Escotel brand advertisings relevance in

    todays setting?

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    What Are Corporate Brands

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    Corporate brands go beyond a product, a service or a product range Depending on the branding structure used, a corporate brand can be

    An endorser

    A driver

    A support

    Very difficult to typecast corporate brands

    TATA - sometimes endorser, sometimes driver

    GE - often driver

    SONY - often driver

    Reliance - support

    Wipro - driver - endorser

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    Corporate Brands reflect thed i i

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    Leaders Vision

    Across the world the leaders personality reflects on the corporate

    brand:

    Richard Branson - Virgin - outrageous / young

    Jack Welsh - GE - aggressive / growth

    Karsanbhai Patel - Nirma - value / quality

    Founders personality often stays on with the brand they have created:

    Akio Morita - Sony - innovation

    Henry Ford - Ford - value

    Building Corporate Brands

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    The founder/CEO is often the biggest medium

    Use of multiple communication tools:

    Public relations - press/media coverage

    Identity programme - logo, stationery, signage

    Retail presence - outlets, service

    Corporate communication - annual reports, offices,buildings

    Advertising - media, direct, internet

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    Brand-building Advertising SeminarCORPORATE BRANDS ROLE: Self Test 12

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    CORPORATE BRAND S ROLE: Self Test 12

    Corporate brand is an

    Invisible endorser

    Strong endorser

    Driver

    Categorise the following brands with examples

    Nirma - Britannia - Whirlpool Unilever - Panasonic - HP

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    Wipro - Applying Thought

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    Wipro Applying Thought

    Origins in the edible oil industry

    Vanaspathi manufacturing under Wipro Sunflower brand

    name

    Diversified into soaps and toiletries in the eighties

    Tasted success and expanded range into diverse areas

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    Wipro - Mining Consumer Minds

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    What does Wipro stand for in the consumers minds?

    Research to delve into the perceptions of consumers soaps,

    lighting

    Computer hardware Computer software

    Wipro seen as a sensible thinking company

    Lending to the tag line applying thought

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    How To Communicate The New Wipro

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    Applying thought - a rational way of doing

    business

    Bringing the concept alive - possible through

    identifying specific stories that bring alive the

    applyingthought

    Present Wipro as a caring company that is:

    thinkingabout you

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    Wipro Press Ad 1

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    Wipro Press Ad 2

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    Wipro Press Ad 3

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    Wipro Corporate Brand

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    Brand salience improved from unknown toknown

    Stock market boom aided Wipros climb to the top

    From being in the 25th position on most admired

    corporate brand, Wipro climbs to top 5 in three

    years

    Brand-building Advertising Seminar

    WIPRO CORPORATE: Self Test 13

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    What could be other methods Wipro could use to

    build the Corporate brand?

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    Tata Lucent: Telecom Revolution

    Tata Lucent: Telecom Revolution

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    Tata Telecom set up to manufacture EPABX systems

    - aimed at the large corporate segment

    Tata Telecom selling through dealers and own salesexecutives to large accounts

    Joint venture with Lucent Technologies

    Lucent Technologies : Powerhouse

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    Lucent Technologies - the equipment company spun off from

    AT&T

    Lucent world leader in telecom equipment catering to the large

    sector

    Lucents heritage from Bell Labs of erstwhile AT&T

    Bell Labs to one of the world leaders in technology patents !

    Tata Lucent: Task Ahead

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    Tata Lucent plans to enter the high end telecom

    market

    Target audience

    Private telecom companies

    Cellular companies

    Govt. Sector (telecom)

    Large organisations

    Customer Perceptions

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    Tata Telecom seen as a reliable telecomy partner

    However not seen as technologically advanced

    High trust from the Tata name but not seen as cuttingedge technology

    High profile competition from brands like Alcatel,

    Siemens and Japan companies

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    Tata Lucent Press Ad 1

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