Do We Actually Need Celebs???

Do we actually need celebs??? Celebs are more expensive, Creativity element??? Celebs may eat over the ad appeal Involvement - H.P and B.P, Affordability ??? TVS Scooty, Hungama TV 70 % of Japnese ads use Celebes, only 25 % of US ads use Celebes

Celebes branding- tactical tool Celeb branding: strategic v/s tactical tool Fiat Paleo + Sachin highly tactical Sometimes lucky– – –

Nike Jordon Air TAj mahal + Zakhir Hussain 30 years, Grasim + Pataudi- understand the person

Best strategy to have no strategy Stop visualizing as problem and solutions approach. Branding in the right spirit eg. TATA Brand TATA: Values at 24,400 crores 14,000 crores- non corporate brands doing what is risky, in the social context, competitive advantage and core competency

Best strategy to have no strategy Sant Mani Wife’s jewellery-TISCO. “Sinking gold into the ground” “Wrong place at wrong time”. Core-The maddest creature- supreme confidence. Vision- Indian Enginners can do it.

Best strategy to have no strategy Positioning – – – – –

Great Grand father - textile Grand father- hotels Father- Truck I – Car Son- telecom

Global: S. Africa- seven sectors same time Half the promotional money by Govt.

Stick to your competenciesinnovation Castrol- Very little influence on category 80s and 90s – deregulation, political constraints Created branded Lubricant category Exclusive technology centre in Wadala Kept pace and changed creatively in a destructive market( MRTP)

Innovation- the key Invented lubricant for hot, humid, dusty, Indian conditions -Something very special for customers Vehicle adulteration campaign and enrich safeguard (social) Pricing and packaging innovations- super 2t oil 1990s 90 % of fuel sold in petrol pumps

Innovation- the key 32 % sold in retail stores as petrol pumps become motels ROCE- highest in industry- 40 %,5 %COC Trend Reversal from marketer- brandscustomer to customer- brand- marketer, Customer adds more value in the brand, improving its equity.

Changing trends Global info opening- Chinese chef Information fusion, customers are much ahead of Corporate- first point of enquiry and grievance Amazon, Cisco, Dell- all participating with customers to create value Overall the soap market (India) is worth 14,000 crores the need for aggression like never before, a 1200 % growth in the last 10 years- the organized segmentvalue

Innovation- the key Videocon mistook Bazooka and Toshiba as threats. 30, 000 customer houses free service, aggression the key Gangofgirls.com, 65 % market share, 1st day 100,000 viewers, Raymond- product repositioning, the same customer would view the product 4 times in six weeks, every time with a different attribute, Recognition in S. Korea and Japan.

Social appeal Social appeal- Media gives free space Tackling myths and misconceptions, rural market communication– Grammene Bank, Bangladesh- Noble peace Price.

Surf Excel- “save water’ campaign.

Back to basics The only thing is to get real Take work serious, don’t take yourself serious- SBI, large, successful but humble Print ad is a salesman- not any more Adv. Can only do certain things When a one to one salesman cannot sell in 30-40 seconds, how do you expect an ad to do that, Selling insurance

POT. (EXP.) AUG (SER.) EX/PRO/BR CORE

Air Conditioner Core: Cooling and Comfort , – Sufficient cooling capacity ( Btu per hour), – an acceptable energy efficiency rating, – adequate air intakes and exhausts and so on

Expected – Consumer Reports – Consumers should expect at least 60 inches long,R-22 HCFC refrigerant (less harmful to the earth’s ozone layer than the other types), – one-year parts-and-labor warranty on the entire unit , – a five year parts-and-labor warranty on the refrigeration system.

Air Conditioner Augmented: – – –

Optional features like electric touch-pad controls display show indoor/outdoor temp., thermostat setting automatic mode to adjust fan speed based on the thermostat setting and the room temperature, – a toll free number for customer service , and so on – Silent running, – Completely balanced throughout the room, and energy self-sufficient.

VCR Core Benefit: Convenient entertainment Ability to record and play back television or video programs with adequate picture quality

Expected Consumer reports states that for a typical VCR, consumers should expect a digital quartz tuner that receives 125 cable channels; ability to record at – and play tapes recorded at—SP,LP, and EP speeds; on-screen programming of eight events up to one year in advance with options of daily and weekly recording; power on when tape is inserted and auto rewind at end of tape; one-year warranty on tape heads and others parts, three months on labor

VCR Augmented: Optional features like hi-fi stereo sound, VCR plus, Shuttle controls for easy backward and forward scanning. Voice-controlled programming; ability to edit out commercials.

Potenialising Co-creating unique value with customer 100 years of transition Dotcoms- say in terms of how I want to have relationship with the company. I-net, bunch of screens, your own input.

Potentialising- the transition Value creation- products and services V.C to V.Cap to VCL to PVCL Marketing: core-exp-pot,the value chain Prods to services to experiences Experience is conditioned by the context of the consumer.

The question Where am I? What point in time? what do I bring prior to that experience Very event oriented, space and time constrained context within which the individual undergoes experiences. Restaurant 10 people

Potential = differentiate Many 5 star res. Experience- the next round of differentiation How do I provide unique experiences Point of sale, MOT, Questioning fundas of value creation??? What drives experience???

Experience dissatisfaction. Experience by def involves individuals Start from the experience-go backwards Cell phone - feature function set Digital technology crammed Frus, dis-satn.- why navigate through all the stuff that I don't need Feature rich but experience poor

Answer Customer,adjective to noun Value is created in the intersection of the firm and the consumer The exchange- POE to MOT to POS Why involve ??? Ford CDMA v/s GSM Television and Cellular ind. USA

Why involve??? product development risks- I/P from Cus. companies increase their V.C opport. consumers create more value for themselves due to unique experience Music Industry- Cos.unilaterally define choice for the consumer, Napster no mechanism to sample the music Apple’s strategic blunder

Why involve??? Do I listen to a million prospects before I innovate Liability v/s resouce M. soft- 600 000 cus. Tested beta version XP NT , 600 mn $ R & D Peter Jackson Lord of the rings, Gordon Patterson,

Seek to understand Before brand innovations, understand markets and the BCG positioning M. leader, follower, challenger Each has essentially an offensive and a defensive strategy that is different Branding-highly strategic, hence in line

Market leader’s branding strategy Defensive: Fast follower Not a pioneer IBM (Bell labs), Microsoft (best labs in voice recognition) Use capital side and not the brain side Apple v/s IBM

Market leader’s branding strategy Offensive Grow the pie Understand topography- cellular India BSNL(2003), huge market access Mature markets- Attract for newer markets Attract newer customers Rural marketing-eliminate class differentials Packaging- the fifth P

Market leader’s branding strategy Offensive – Non consumers to consumers – Maruti-800 expansion mode, TATA Motors – Reliance – Rural markets – DNR- development first, n then research

The challenger Defensive – Coexist with no. 1 – Imitate no. 1(Berger King, Pepsi) – India- most markets are coexisting. – Banking, Airways, – Offensive- challenge, but beware

Clone- follow- defensive-attack-offensive Quietly defend first, attack later

Follower Defensive

– Segment within segment – Luggage Cos., Canteen contract, Jeep – Car makers’ suppliers- pseudo specialists

Attack - innovation,

– Create radical change – Chrysler – – – – –

automotive transmission, Convertible designs, cap forward design, Minivan Manufacturing rebate

– Sprint, TATAs, Cola.

Finance drives branding Market share concentration depends on the extent to which fixed costs dominate financial structure Aerospace, Auto Semiconductor, Intel v/s AMD v/s Motorola Software Intel-70 % m. share, 70 % fixed cost intensive Wall-scope and scale of investments

Unity is strength Solutions-attack in consortiums IBM assembler, micro processor and machine language- 7 dwarfs + B.L=UNIX Boeing v/s Mcodonalds, Airbus Microsoft monopoly- Linux+ IBM Economies of scale and scope in manufacturing + procurement = effective branding