Book Review : Kellogg on Branding

Book : Kellogg on Branding
Editors : Alice M Tybout & Tim Calkins
Publisher : Wiley India

Price : Rs 399 ( paperback)

Book Review # 5

If you are interested in brands, this is a book that you should not miss. Kellogg on Branding is the first book on branding from the faculty of Kellogg School. One should not forget that the legendary Philip Kotler teaches in that University. The book comes with a foreword by Professor Kotler.
Kellogg on Branding is a collection of 20 articles written by Kellogg's Professors as well as practicing managers. But the editors have made sure that these articles is in line with a common theme.

The entire book is divided into four sections.

The first section titled : Key Branding Concepts talks about the basic nature of the brand, the concept of positioning , meaning and design of brands. For uninitiated, these chapters give a thorough insight into basic branding concepts.

The second section is on strategies for building and leveraging brands. This section covers the areas of brand strategies to combat competition, portfolio strategy and brand extension.

The third section titled : From strategy to implementation dwells on the concepts of implementing brand building strategies. This section is a highly relevant section since it talks about the challenges and methods to branding in diverse domains like Technology markets, business markets and branding services. This section also deals with the relevance of building a brand-driven organization ( internal branding) .

Fourth section is titled : Branding insights from senior managers. This unique section gives seven terrific case studies ranging from Building megabrands to naming a brand.

Kellogg on Branding is a book that will give the readers lot of branding insights. While Kevin Lane Keller's Strategic Brand Management is known for its exhaustiveness and Kapferer's book is known for its theoretical strengths, Kellogg on Branding can be considered as a capsule of branding insights. For a busy executive, this book will be of utmost help since it is easy to read and also since chapters are disjoint, one can read selectively also. There is also an issue with these disjoint articles since there is overlap of concepts . One concept is explained using different jargons by different authors and this can be a little confusing.

What I like most about this book is the thrust it has given on branding within an organization . Not only the authors explained the importance, they have also prescribed methods or guidelines for building internal brand equity.The chapter on Branding in Technology domain deserves special mention since it gives lot of new insights . The final chapters give a practitioners insights into brand building across various domains. Chapter 18 - Branding and Organizational culture is written by Gary A Mecklenburg , CEO and President , Northwest Memorial Healthcare is a memorable read of building a brand - centered organization. Chapter 11 by Mohanbir Sawhney gives a concept of " Vectors of Differentiation " which has terrific application across industries.

Kellogg on Branding is a useful book for the brand managers since it relates the branding concepts to practice . The book should be an essential read for marketing students since it gives a systematic framework for understanding the brand building process.

Power Mosquito Swatter : A worthwhile Hobby

Brand : Power Mosquito Swatter
Company : Tera Impex

Agency : NA

Brand Analysis Count : 304

If you ask me to name the most useful product I have seen in 2007, I would say that it is the Electric Mosquito swatter. I would also say that this product was one of the hottest selling product in Kerala in 2007.
Kerala is facing one of the most severe mosquito menace of recent times. The mosquito density is as high as 95%. This menace caused a severe attack of Chikunguniya ( a virtually unknown disease till 2006)in the state which took lives of many. I live in Cochin which can be termed as the headquarters of mosquitoes in the state.

Cochinites has been experimenting with all sorts of methods to keep themselves protected from mosquito attack. Most houses in the middleclass and above are insulated with Netlon but still these smart intelligent pests enter the houses at will. Mosquito repellents acts as energizer for these devils.

Then came this product : Electric Mosquito swatter. The product is a tennis racket shaped bat with a wire mesh and electrically charged grid inside. The bat when slowly waved traps the mosquito inside and it dies out of an electric discharge when it bridges the terminals of the device. The mosquitoes die instantly with a spark followed by a splitting sound.
As soon as this device was introduced, the entire city embraced this new found savior. During the dawn , just walk through the lanes of Cochin city, one can hear the sound of mosquitoes getting electrocuted .
For many this bat provides a physical exercise and mental pleasure. The pleasure in the sense that you are able to pay back for the irritation that these small creatures give you. For once the mosquitoes are at the receiving end. There are even households where husband and wife plays a game as to who kills maximum mosquitoes. It has also become a favorite time-pass for husbands when their wives are engrossed in those " Kyon Ki " Soap operas.

Mosquito swatters are popular in West as Bug Zappers. Bug Zappers was invented in 1934 by William Folms and Harrison Chapin. Electric Zappers was developed from these Zappers.

These bats are priced anywhere between Rs 225 - 700. The entire market is dominated by Chinese products. While Indian products comes with warranty, consumers prefer the cheap Chinese products only because of the price factor.
The success of this product is without a single ad. The consumers buy this because it offers a solution to one of their major problems . It also shows the threat that Chinese products give to Indian marketers. But it is also an opportunity for marketers to brand this product. So far there is no well known Indian brands in this category.

Searching the internet for Indian brands, I just found one brand - Power mosquito zapper. Although I hav'nt seen any promotion for this brand, the site offers some differentiators like : Twice Speed Recharge, Leak-proof net etc.
A prospective Indian brand can take on the following differentiators :
a. Battery life
b. Safer than the Chinese products
c. Child safe net
d. More quality
e.Better killing power etc.
d. Healthy option compared to repellents.

My take is that the potential for this product is going to grow in coming years. I also feel that there is an opportunity for an Indian brand in this category.

Brand Update : Maruti Esteem RIP ( 1995-2007)

One of India's most reliable sedan is now a part of history. Officially Maruti Suzuki pulled the plug on Esteem on December 2007. According to the reports, Esteem is likely to be replaced by Swift Sedan branded as Dezire.

Suzuki Esteem is a perfect example of a brand moving through its Product Life Cycle. Within 12 years, the brand moved through all the stages. The reason for the withdrawal if Esteem is the fact that the brand is being perceived as dated brand. With high profile competition from brands like Ford Fiesta, Indigo, Verna , Accent, Logan and host of other sedans, the customers are spoiled with choices. Esteem in a sense has lost the esteem value for the customer.

With the price tag of 5-7 lakhs , the customer had a choice of more luxurious sedans that too with diesel options. Maruti could not afford to sell Esteem at a lower price and even after its makeover couldn't attract the buyers.
But I feel that like the good old Zen, Esteem's withdrawal may be a mistake since it could work as an excellent flanker brand for SX4 and the proposed Dezire. The brand would have made a terrific comeback if Suzuki could cut the brand's price to 4-5 lakhs. There is a huge potential for a sedan at the price range of Rs 4 - 5 lakhs ( on road) .
How ever Esteem now does not fit into Suzuki's new scheme of penetrating into the luxury sedan market.Hence the brand is being phased out.

Related Brand
Esteem

Tata Nano : A Promise is a Promise

Brand : Nano
Company : Tata Motors
Agency : Rediffusion ( Rumour)

Brand Count : 303


As a die-hard fan of Ratan Tata , I could not resist joining the euphoria around the Tata Nano. Yes, the world has seen and heard enough of the Tata's one lakh car. Today , every news, talk show talks about this revolutionary new product. Tomorrow newspapers and mags around the world will be celebrating this brand.

Seldom one gets an opportunity to witness a product launch that has the potential to change the dynamics of an industry as such. When the world boasts of an Ipod , we Indians did not had something to talk about. Now we have.
I am a big fan of Ratan Tata because he is someone who could be considered a true representative of Indian management ethos. The way he took the leadership of a whithering empire and the controlled aggression through which he tookover Corus and the way he came out of his initial failures at Nelco all makes him look attainable and inspiring . The dignity with which he handled the situation when his foray into starting an airline was torpedoed by the Government and now the one lakh car exemplifies the qualities that a young mind should aspire for.

The launch of Nano is a valuable lesson for all aspiring entrepreneurs. The brand is a symbol of VISION. In 1998 , Ratan Tata announced his dream of giving a car for one lakh. Many critics scoffed at the mention of the dream . Auto majors around the world questioned the business logic of the dream. Months back, the chairman of Suzuki Motors categorically ruled out the possibility of such a car at such a price. Now the product is now in front of all of us to see. In a sense this product is also a reminder of the vast potential of a human mind. Just like Roger Bannister who broke the four minute barrier, Ratan Tata has broken the one lakh barrier. Ofcourse he had the money but remember he is the first one to do so in the world. The words he spoke on the launch " A promise is a promise " makes a perfect tagline for this car.

The launch had raised thousands of questions about the quality of the car and the performance. But the look of the car silenced many critics. Tata proved that cheap does not always mean bad quality. Nano looks better than most of the small cars that are there in the Indian market. C K Prahlad in his pathbreaking book " Fortune at the bottom of the pyramid " reminds us that Indian consumers at the bottom of pyramid looks for value even at the low prices. Brands which focused only on low prices and produced junk products always have failed in the Indian market.

The new brand Nano will do two major changes in the Indian markets :
a. It will open up a new segment in the Indian Four Wheeler Industry
b. It will inspire many Indian entrepreneurs to have grand vision.

I think Nano will redefine the pricing in the Indian small car market. Either companies like Hyundai , Maruthi may have to cut the prices of existing small cars or they have to comeout with a similar priced car.

Nano will be making cars an affordable luxury for many Indians. To a limited extend it will affect the two wheeler segment but only to a limited extent. The reason is in the running cost and maintenance of four wheelers. At the current oil prices, Cars are still expensive to run & maintain. It cannot in the near future replace the functionality of a two wheeler until cars match the fuel efficiency of two wheelers.

So Nano will be the first car of many Indians who dream of a four wheeler . For those who travel less than 300 km permonth, Nano is definitely an alternative for two wheelers but more kilometers than that will burn a hole in the pocket of an average Indian consumer . Indian consumers will make a careful balance of usage of his two wheeler and Nano to make sure that his budget does not go out of control.There will also be many who could not buy Nano because their flats or houses didnot have parking space ( just joking! ).

Nano also will inspire many to think big. While Ambani brothers make us watch their progress with awe rather than inspire, the success of Ratan Tata will inspire us because he strikes a chord. The fact that Nano was put in reality within four years will also mark a significant turning point in the way we look at our engineering and design talent. The 1700 crore investment that Tata made in this project will be an eyeopener to many who are reluctant to put their money in R&D.

In the marketing front, Nano had the dream start . Infact Nano may need no ads but heavy dose of positive PR during the launch. The brand may have to counter the skepticism surrounding the performance . Another nightmare is managing the initial rush of the customers. Since this is a car for the common man, there is every possibility that the customers could be given a raw treatment at the dealership touch- points. Indian marketers are still to wake up to the possibilities of a good customer service. How Tata and its dealers handle the initial euphoria will be something to watch for in the Customer-relationship perspective .

Whether the car performs or not, Nano is set to change the dynamics of an Industry. I am happy that my favorite business leader is making that change.

Marketing Funda : Building Brands in India

Brands need to have an Indian heart to win the Indian customers. My article on building brands in India was published in 'The Strategist ' of Business Standard on 08/01/2008.
Read the article here : Having An Indian Heart

Brand Update : Parachute

In December 2007, Marico entered the kid's personal care market with the launch of a sub-brand " Parachute Advansed Starz" . Marico believe in extending its brands to new categories. It has done that for entering Men's haircare market by launching Parachute Aftershower . But once these new brands reach a position of awareness and recall, the sub-brands take up the position of a primary brand. Now Aftershower has an independent existence from Parachute.

By launching Starz, Parachute is entering the Rs 2000 crore shampoo market which is dominated by HUL brands. Parachute AdvansedStarz is not restricted to shampoos but positioned as a haircare brand that offers different haircare solutions.

Currently the brand offers
Shampoo
Hair Oil and
Hair Gel.
The brand is taking on a demographic segmentation and is targeting the kids of age group 4-12 Yrs. The Indian shampoo market has not seen a brand focusing specifically on this segment.

Clinic All Clear is a brand that has targeted this segment but the brand is also used by adults.Clinic All Clear has used campaigns to target both adults and kids. For example the Chulbulli campaign is targeting Kids but the Bipasha + John campaign targets the adults. The product is the same. The new brand of Marico is different because it is designed especially for kids.The product, the packaging and the promotions are directly targeting the kids.
Parachute Advansed Starz comes in attractive Pink bottles and features cartoon characters. The brand takes up the tagline " Gentle care for young hair " . Starz takes strength from Parachute and relies on the goodness of coconut to differentiate. The brand also claims advantage of Vitamins , Proteins and Strawberry. The brand essentially takes up Nourishment as the main brand benefit.

has used two "cool" characters whose names are not yet publicized. If properly used , these characters can become powerful brand ambassadors.They look smart enough to appeal to the younger ones. I liked Starz because it shows the use of brand elements to the fullest. Starz. ( infact they remind me of Archies comic characters ). The brand is priced Rs 54 for 100 ml for the shampoo.

Marico intends to develop a new category of specialized hair care solutions for the kids aged 5-10 and even the tweens. This is the age where kids develop lot of hair related problems because of their active & careless lifestyle. So far, Mothers used their own brand of shampoos or may have used Johnson's shampoo for this age group. The success of Starz may seen a new category opening up for marketers.

The question that comes to my minds is whether there is a need for a kids-only haircare products ? The answer lies in the increased exposure of kids towards brands. The new NUF ( Nuclear Urban Family ) structure gives marketer an opportunity to target these segments. The success of Starz will depend on how Marico motivates the younger ones to pester their mothers to buying these products and also on how the brand captures the trust of the mothers. The first task is difficult because mothers are already convinced about Parachute.

Parachute has done a smart work is positioning the brand as a haircare brand and not limiting itself to shampoos of hair oil. This gives more leverage and flexibility to the brand from the start itself.

Related Brand
Parachute