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Source: Marketing: A Roadmap to Success by Ajay Sirsi
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To Build A Strong Brand
• Ask “What business are we in?”• Build brand identity• Position the brand for competitive differentiation• Refresh the brand
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Why is it important to ask: “What business are we in?”
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Would you say a hotel and an airline are competitors?
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Would you say Marriott and The Home Depot are competitors?
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“We are in the hotel business”
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“We design and maintain living spaces”
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Proper Business Definition Allows You to Innovate
• Hotels• Resorts• Golf courses• Retirement villages• Facilities management
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Defining what business you are in enables you to build a strong brand, decommoditize your
business, and beat the competition
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To define what business you are in, you must distinguish between what you are selling and
what the customer is buying
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Creating Value For The Customer
Potential ProductAugmented ProductFunctional Product
Core Product
Source: Marketing: A Roadmap to Success by Ajay Sirsi
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Rolex is in the watch business
[ ] True [ ] False
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Branding Lessons
• Customers buy expectations, not things– B2B customers buy relationships, not products
• Do not fall into the attribute trap– Over time all core products become commodities
• Potential product = differentiation• Differentiation = price premiums• Focus on core product
– Puts on blinders– Makes you myopic– Cannot focus on customer needs
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The Potential Product
• Strong brands understand the customer’s “true” needs
• How do we understand our customer’s needs = Where we can create value?
• Ask the customer?• Customers do not know what their needs are• Do not ask customers, tell them
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Core and Potential Products
• Industrial gloves• Corporate housing• Liquid industrial gas• Shopping mall• Executive search• Coffee• Postal business
• ?• ?• ?
• ?• ?• ?
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To Build a Strong Brand
• Ask “What business are we in?”• Build brand identity• Position the brand for competitive differentiation• Refresh the brand
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McDonald’s Brand Associations
McDonald’sGolden Arches
FunKids
Family
RonaldMcDonald
Friendly/Warm
McDonald’s Dollsand Toys
BirthdayParties
Playground
SocialInvolvement
McDonald’sCharities
Inner CityProgramsRonald
McDonaldHouse
Culture
FlexibleRisk taking
Meals
Brands
Egg McMuffin
Big Mac
Service
Consistent
HassleFree
Convenient Fast
Clean
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To Build A Strong Brand
• Ask “What business are we in?”• Build brand identity• Position the brand for competitive
differentiation• Refresh the brand
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Yogurt Market beforeDanone Actimel
Fruit Yogurt
Chilled Desserts
Health Yogurt
TreatHealth
Plain
Sweet
Health segment was regarded as a small niche,
predominantly providing products for adults
Kids Yogurts
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Finding the Gap
Healthy
Tasty
Previously yogurt brands were positioned in either Area A or B, Danone Actimel created a new market with a brand combining health
benefits and taste ( Area C)
AHigh in taste
Low in Health Benefits
C
BHigh in health
benefitsLow in taste
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Danone Capitalizes onthe Yogurt Market
Fruit Yogurt
Chilled Desserts
Kids Yogurts
TreatHealth
Plain
Sweet
Health segment has increased in size as a new market has been
developed since the introduction of
Danone Actimel
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To Build A Strong Brand
• Ask “What business are we in?”• Build brand identity• Position the brand for competitive differentiation• Refresh the brand
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Brand Identity ImplementationMarketing Mix
Strategy
Brand IdentityBrand Concept
As intended
Brand ImageBrand Concept As
Received
Brand ActionCustomerResponse
Brand Analysis
Marketing Research
Brand Repositioning
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In Chapter 5 - I show you how to build a strong brand.
I show you how to brand sand. If you can brand sand, you can brand anything.