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									 Brand Value

Prof. Atul Tandan
          Director
           MICA
  E-mail: Pat@mica.ac.in
               What is a Brand?
“ A brand is name, term, sign, symbol, or design,
  or a combination of them, intended to identify the
  goods or services of one seller or group of
  sellers and to differentiate them from those of
  competition.”
American Marketing Association (AMA)
     Source: Competing for choice: developing winning brand
     strategies by Lars Finskud
               What is a Brand?
“ A brand is a complex symbol, it is the
  intangible sum of a products attributes, its
  name, packaging, and price, its history,
  reputation, and the way it is advertised. A
  brand is also defined by consumers’
  impression of the people who use it, as
  well as their own experience.”
Advertising guru David Ogilvy, 1955
    Source: Competing for choice: developing winning brand
    strategies by Lars Finskud
           What is a Global Brand?
• Global brand is basically the same
  product or service everywhere, with
  only minor variation (as Coca-Cola
  and Guinness)
• Global brand has the same brand
  essence, identity and values (as
  McDonald’s and Sony do)
• Global brand uses the same strategic
  principles and positioning (as Gillette
  does)
• Global brand employs the same
  marketing mix as far as possible

   Source: Branding by Geoffrey Randall
                 Brand Rating Definitions
  Rating                                   Definition

  AAA                                      Extremely strong

  AA                                       Very strong

  A                                        Strong

  BBB                                      Average

  BB                                       Under-performing

  B                                        Weak

  CCC                                      Very weak

  CC                                       Extremely Weak

  C                                        Failing

       Note: In some instances the ratings are altered by the addition
       of a plus (+) or (-) Sign to reflect their more detailed positioning in
       comparison with the general rating group

Source: Sri Lankan’s most valuable brands. LMD the voice of business. Vol. 13(8),
March 2007, p. 102.
       Brand Value/Power Bases
•   Growth rates
•   Market share
•   History
•   Price premiums
•   Brand awareness
•   Brand’s ability to earn

Source: Sri Lanka’s leading brands. Retrieved May 31, 2007
from http://www2.singer1.com/singer/events/brand_league.html
       India’s 100 Most Valuable Brands
   •   Image & perception
   •   Brand awareness
   •   Brand loyalty
   •   Brand association
   •   Brand preferences

Source: 4Ps Business and Marketing Vol. 2, Issue No. 8, 25 May – 7 June 2007, p.88.
                          Brand Iceberg
                                      Name
                                      Advertising
                                      Logo
Brand                                 Brand Equities
experience                            Environment
externally                 Products and Services


Brand                                Brand Values
experience                           Management - control structures
internally                           Internal Communications
                                     Business Process

                                     Investor Relations
                                     Customer Relations
                                     Training
                                     Quality
                                     Staff Motivation
                                     Knowledge Management
                                     Recruitment Policies
                                     HR Policies & Processes
                                     Technology

     Source: http://www.brandchannel.com/images/papers/bankonthebrand.pdf
Multinational Brands
        Global Brands & Culture
• Buyer behavior and consumer needs are driven
  by cultural norms
• MNC managers deal with different cultural
  environments
• Global business deals with
  –   Consumers
  –   Strategic partners
  –   Distributors
  –   Competitors with different cultural mindsets
• Cultural heritage provides pride and self-esteem
• Foreign cultures also intrigue local cultures
     Global Brands & Culture

• Cultural environment matters for two main
  reasons
  – Cultural differences force adaptations of
    marketing strategy
    • Cultural blunders become costly for MNC
       –   Embarrassment
       –   Lost customers
       –   Legal consequences
       –   Missed opportunities
       –   Damage control
       –   Tarnished reputation
         Global Brands & Culture
•   Cultural analysis often pinpoints market opportunities
     – Changes in cultural indicators lead to market opportunities
         • 300 million children in China
         • 157 million children in India (0-6 years)
              – Spending power
              – Pester power
              – Act as a change agent
     – To satisfy ignored cultural needs bring competitive edge
         • Japanese diaper makers steal the market share of P & G
           market by providing thinner diapers by meeting the desires of
           Japanese mothers


         Source: International Marketing by Rajgopal
            Selected Global Brands
                  Technology
•   Google: Don’t Be Evil
        • Google. COM is one of the 5 most popular sites on the
          Internet and is used around the world by millions of
          people.
        • Google is the #1 search engine in the Argentina,
          Australia, Belgium, Brazil, Canada, Denmark, France,
          Germany, India, Italy, Mexico, Spain, Sweden,
          Switzerland, U.K., U.S. (Nielsen//NetRatings 6/05,
          based on total number of unique visitors)
        • Global unique users per month: 380 million
          (Nielsen/NetRatings 8/05)
        • 112 international domains
        • Global audience: More than 50 percent of Google.com
          traffic is from outside the U.S.
            General Electric (GE)
•   GE: Imagination at Work
• Today, GE is comprised of Six business
  segments aligned for growth with the ability to
  compete globally. They are: Commercial
  Finance, Infrastructure, Industrial, Healthcare,
  Consumer Finance and NBC Universal.
  Because of GE's diversified approach to
  business, you have not joined one company, but
  many companies operating worldwide in key
  business areas. It has operations in over 100
  countries. 320,000+ employees worldwide.
  Manufacturing facilities in 32 countries.
GE Money (India)
        Selected Global Brands
              Technology
• Microsoft: Your Potential. Our Passion
     • Founded in 1975, Microsoft (Nasdaq "MSFT") is the
       worldwide (79 countries) leader in software, services and
       solutions that help people and businesses realize their full
       potential.
     • MS-DOS, .NET, Office XP, 2007 Office system, Windows,
       Windows Server, Windows 3.0, Windows 95, Windows 98,
       Windows 2000, Windows XP, and Windows Vista are
       registered trademarks of Microsoft Corporation. Other
       product and company names mentioned herein may be the
       trademarks of their respective owners.
Microsoft – Your Potential Our
     Passion (Pan Asia)
         Selected Global Brands
                Soft Drink
• Coca Cola: The Coke Side of Life
     • Today, The Coca-Cola Company is the largest
       beverage company with the most extensive
       distribution system in the world. The Coca-Cola
       Company operates in more than 200 countries.

• Pepsi Cola: More Happy
     • The company consists of Frito-Lay North America,
       PepsiCo Beverages North America, PepsiCo
       International and Quaker Foods North America.
       PepsiCo brands are available in nearly 200
       countries and territories.
Coca Cola – The Coke Side of Life
          (Singapore)
               China Mobile
• China Mobile:
• China Mobile Limited (the "Company", and
  together with its subsidiaries, the "Group") was
  incorporated in Hong Kong on 3 September
  1997. As the leading mobile services provider in
  China, the Group boasts the world's largest
  unified, contiguous all-digital mobile network and
  the world's largest mobile subscriber base. In
  2006, the Company was once again selected as
  one of the "FT Global 500" by Financial Times,
  and the "The World's 2000 Biggest Public
  Companies" by Forbes magazine.
        Selected Global Brands
                Retail
• Wal-Mart: Always low prices!
     • Today, Sam´s gamble is a global company with more than 1.8
       million associates worldwide and nearly 6,500 stores and
       wholesale clubs across 14 countries.
                    Marlboro
• Marlboro: Come the Marlboro country
           Selected Global Brands
                 Fast Food
• Citi: The Citi Never Sleeps


   HSBC: The worlds Local Bank

       • HSBC's global markets business is one of the largest of
         its kind in the world. It combines sophisticated 24-hour
         global coverage with a detailed knowledge of local
         markets. Services are offered both online and offline,
         through a network of 87 treasury sites in more than 60
         countries and territories worldwide.
Citi – The Citi Never Sleeps
           (Asia)
                 IBM
IBM: “Ideas for Innovators – Get
  inspired”
IBM helped pioneer information technology
  over the years, and it stands today at the
  forefront of a worldwide industry that is
  revolutionizing the way in which
  enterprises, organizations and people
  operate and thrive.
IBM
        Selected Global Brands
                 Cars
• Toyota: Drive Your Dreams
     • Toyota Motor Corporation (TMC) is one of the world’s
       leading auto manufacturers, offering a full range of
       models. Global sales of its Toyota and Lexus brands,
       combined with those of Daihatsu and Hino, totaled 8.81
       million units from January 1, 2006 to December 31,
       2006. Markets vehicles in more than 170 countries.
• BMW: The Ultimate Driving Machine
     • BMW Group activities worldwide are co-ordinated from
       the corporation's head office in Munich. A city
       landmark, the "four-cylinder" tower at the Olympic park
       is the nerve centre for an organisation which covers
       over 150 countries.
Toyota – Moving Forward
         (India)
  Key Lessons for AAA Brands
• Four R
  –   Relevance
  –   Relationship
  –   Reliability
  –   Recall
• Six C
  –   Consistency
  –   Creative
  –   Culture
  –   Consumer
  –   Communication
  –   Clarity
Strong Indian Brands
Tata Motors

  $2,260 Compact
  Tata Motor

  India’s biggest maker of trucks and buses has a
  tie-up with Fiat to jointly invest $895 million to
  develop and roll out passenger cars in India’s
  fast-growing auto market. Tata has audacious
  plans to develop India’s cheapest car, a $2,260
  compact, by 2008. The automaker is a key unit
  of the Tata Group, one of India's biggest and
  most powerful diversified conglomerates with
  some $36 billion in assets.

  One-Year Total Return: 22.5%
  Site: www.tatamotors.com
             International Business




Tata Motors has launched its popular mini truck, Tata Ace
has got highest international market share in Sri Lanka,
                  Tata Motors
• The company’s commercial and passenger vehicles
  are already being marketed in several countries like
• Europe
• Africa
• Middle East
• Australia
• South East Asia
• South Asia
• It has assembly operations in Malaysia, Kenya,
  Bangladesh, Spain, Ukraine, Russia and Senegal
Tata Motors
TVC - Indica
Watch - Titan
Mahindra & Mahindra
    SUV King
    Mahindra & Mahindra

    Mahindra makes cars and commercial vehicles, and is
    India’s No. 1 maker of tractors and sports-utility vehicles.
     On top of that, it has tie ups with French carmaker Renault
    and U.S. truck maker Navistar. The company’s Scorpio
    SUVs are a hit with consumers at home, but profit margins
     are under pressure at the moment from rising steel prices.

    One-Year Total Return: 65.6%
    Site: www.mahindra.com

    Mahindra & Mahindra has emerged as a well-known
    tractor brand in the US. It is now planning to launch
    the Scorpio in the US sports utility vehicle market.
    Mahindra & Mahindra
•   Mahindra Automobiles have a strong and growing
    presence in international markets
     – Yugoslavia,
     – Bangladesh
     – Sri Lanka
     – Australia
     – Uruguay
     – South Africa in 2004 (Mahindra South Africa)
     – Europe in 2005 (Mahindra Europe)
•   Mahindra vehicles have gone on display to auto
    enthusiasts around the world, participating in
    prestigious automobile shows in Paris, Rome,
    Bologna, Johannesburg and São Paulo.
•   In 2006 Mahindra announced that it would be the
    first Indian automobile manufacturer to enter the
    world’s most demanding and critical market – USA.
Mahindra & Mahindra -Scorpio
Bharat Forge
  Global Ambitions
  Bharat Forge

  It’s a manufacturer of steel forgings and auto parts
  such as crank shafts for trucks, which it supplies to
  global automakers like DaimlerChrysler and General
   Motors. Bharat has big ambitions beyond India. The
   company is one of India’s emerging multinationals with
   manufacturing operations in Germany, Sweden,
  Scotland, the U.S., and China.

  One-Year Total Return:- 12.03%
  Site: www.bharatforge.com
Rediff.com
 India’s Global Site
 Rediff.com

 The site is the go-to place on the Net for India’s
 globally dispersed online population looking for news,
 information, and shopping services. The Mumbai-
 based company has sites both in India and for those
 living abroad, and recently launched a finance channel
 called Rediff Money wise, which provides real-time
 data on stocks and mutual funds. The Nasdaq-listed
 concern saw revenues grow 54% to $7.75 million in
 the fourth quarter of 2006.

 One-Year Total Return:- 36.11%
 Site: www.rediff.com
Rediff.Com
Infosys technologies
     Software Powerhouse
     Infosys Technologies

     It is India’s second-biggest software company and a
     major IT consulting firm that generates 60% of its
     sales in the U.S. market. The Bangalore-based
     company is expanding quickly into Europe to
     customize software applications and manage
     computer networks. It is facing increasing
     competition from IBM and Accenture for quality
     engineering talent at home. Even so, it’s an earnings
     high-achiever: Third-quarter profits shot up 50%.

     One-Year Total Return: 64.8%
     Site: www.infosys.com
  Wipro
Acquisition Machine
Wipro

India’s third-biggest software company and IT
consulting firm is on an earnings tear, with
fourth-quarter profits up 40% to $169 million. Last
year, Wipro spent more than $250 million on
acquisitions at home and in foreign markets such as
Sweden and Finland, and the company’s billionaire
chairman, Azim Premji, says he wants to do bigger
deals in the years ahead to boost economies of scale
and to lower costs.

One-Year Total Return: 26.26%
Site: www.wipro.com
                              Wipro
•   Third largest brand
•   During the March quarter this year, Santoor became the third largest
    soap brand in the country overtaking Breeze. Santoor, with an
    estimated brand exceeding Rs 500 crore, now trails Lifebuoy and
    Lux. Santoor accounts for around 40 per cent of Wipro Consumer
    Care revenues.

•   Wipro Consumer Care has taken the contract manufacturing route to
    enter the lucrative Sri Lankan toiletries market by partnering with
    J.L. Morrison Sons & Jones (Ceylon) Ltd recently.

•   Wipro Consumer Care & Lighting (WCCL), the consumer care
    business of infotech major Wipro Ltd, jump-started its overseas
    foray by acquiring Unza Holdings Ltd, a Singapore-based detergent
    and personal care products manufacturer, for Rs 1,010.2 crore in an
    all-cash deal. (Business Standard 7th July 2007)
Santoor
Dr. Reddy’s Laboratories
        India Pharma
        Dr. Reddy’s Laboratories

        This high-flying drug company, India’s third
        largest, reported a tripling of net income to $42.5
        million in the fourth quarter and specializes in
        selling and exporting versions of blockbuster
        drugs developed by other companies such as
        Bayer and Merck at much lower prices. Its generic
        business in the U.S., the world’s biggest
        pharmaceutical market, is sizable, and some 86%
        of its global sales come from outside India.

        One-Year Total Return: 25%
        Site: www.drreddys.com
Bharti Airtel
  Wireless Wonder
  Bharti Airtel

  It is good to be India’s biggest
  wireless operator—doing business in
  the world’s fastest-growing market
  for mobile phones. Now, Bharti is
  looking to expand in other fast-
  growing emerging markets such as
  Africa. Britain’s Vodafone owns a
  10% stake in Bharti, which also
  provides outsourcing services to
  IBM.

  One-Year Total Return: 107%
  Site: www.bhartiairtel.in
Airtel – Express Yourself
Airtel – Express Yourself
              Amul – The Taste of India
•   Members:12 district cooperative milk producers' Union

•   No. of Producer Members:2.5 million

•   No. of Village Societies:11,962

•   Total Milk handling capacity:9.91 million litres per day

•   Milk collection (Total - 2005-06):2.28 billion litres

•   Milk collection (Daily Average 2005-06):6.3 million litres

•   Milk Drying Capacity:511 metric Tons per day

•   Cattlefeed manufacturing Capacity:2340 Mts per day
    Sales Turnover Rs (million) US $ (in million)
•   2005-06     37736            850
       Amul – The Taste of India



•   GCMMF is India's largest exporter of Dairy Products. It has
    been accorded a "Trading House" status. GCMMF has
    received the APEDA Award from Government of India for
    Excellence in Dairy Product Exports for the last 9 years.

•   Many of our products are now available in the USA, Gulf
    Countries and Singapore.
Amul – Milk
•   Dabur India Limited is a leader in manufacturing and
    marketing herbal, nature-based products, marked with
    quality and trust gained through more than 100 years of
    experience.
•   Today Dabur’s products are available for people in more
    than 50 countries across the world, helping them move
    towards a healthy, natural and holistic lifestyle.
•   Dabur products are available in the markets of the
    –   Middle East
    –   South-East Asia
    –   Africa
    –   America
    –   European Union
Dabur - Honey
                    Jet Airways
• Jet Airways, India's most preferred airline, is now giving
  the world a better choice in the skies

• The airline operates over 340 flights daily across 44
  destinations within India and also operates flights to
  Nepal, Sri Lanka, Singapore, Malaysia, United Kingdom,
  Thailand, Belgium & United States of America on one of
  the youngest and best maintained fleets. Jet Airways
  plans to extend its international operations further in
  North America, Europe, Africa & Asia in the coming
  years with the induction of wide-body aircraft into its fleet
Jet Airways
        Tata Consultancy Services (TCS)

• Tata Consultancy Services (TCS) is one of the
  world’s leading information technology
  companies. Through its Global Network Delivery
  Model™, Innovation Network, and Solution
  Accelerators, TCS focuses on helping global
  organizations address their business challenges
  effectively.
• TCS employs about 10,000 people in the US
  handling technology services for Fortune 500
  companies such as General Electric.
• TCS operates across more than 50 countries and
  has more than 175 offices across the globe.
                              VIP

        VIP Industries Ltd. is Asia's leading manufacturer of
hard and soft luggage and VIP is the largest brand of luggage in Asia.
VIP
                Hero Honda
• In a little over two decades, the world's largest
  manufacturer of bicycles and the global leader in
  motorcycles have created not only the world's
  single largest motorcycle company but also
  the most endearing and successful joint venture
  for Honda Motor Company worldwide. The
  company has sold over 15 million motorcycles
  and has consistently grown at double digits
  since its inception and today, every second
  motorcycle sold in the country is a Hero Honda.
Hero Honda
          The Times of India
• The Times Group is one of the largest media
  services conglomerates in India.
• The Times of India (TOI) is a leading English-
  language broadsheet daily newspaper in India. It
  is owned and managed by Bennett, Coleman &
  Co. Ltd. (The Times Group). The newspaper has
  the widest circulation among all English-
  language broadsheets, with 2.6 million daily paid
  copies.
The Times of India
Femina
                  Bajaj
• Bajaj has enhanced the focus on design,
  style and innovation in the premium
  segment of the motorcycle mart
Bajaj
               Raymond
• Trust. Excellence. Quality. These are
  some of the abiding values that have been
  associated with Raymond over the years.
• Raymond produces nearly 20,000 design
  and colours of suiting fabric, that have
  found their way in over 55 countries
  including the European Union, USA,
  Canada, Japan and Australia among
  others.
Raymond
                  Fevicol
• FEVICOL has been ranked no. 24 overall
  in the latest survey, " India 's Most Trusted
  Brand" in the country conducted by Brand
  Equity (Economic Times). Fevicol ranking
  has improved by 7 positions compared to
  last year.
Fevicol
  Entrepreneurs in Free Market
         Created Brand
• Subhash Chandra – Zee is among the top
  three players in the Broadcasting Business
• Naresh Goyal – JetAir transformed the
  travel agency into a full service airlines
• Kishore Biyani – Future Group, is the
  biggest player in the retail sector
• G.M Rao – GMR & GVK Groups emerged
  as a result of Infrastructure
 Entrepreneurs in Free Market
        Created Brand
• Uday Kotak – Forayed into banking and
  and now Kotak Mahindra Bank has 78
  branches
• P K Jain - Parsvnath Developers are
  emerging as a dominant forhce in the Real
  Estate sector of the country
• Captain G. R. Gopinath – Air Deccan the
  country’s first low-cost “peoples airlines”
Indian food brands and fast moving
consumer goods (FMCGs) are now
increasingly finding prime shelf-space in
the retail chains of the US and Europe
Indian brands creating their own space in the American mind


    Cobra Beer

         Bikanervala Foods

    MTR Foods' ready-to-eat food stuff

   ITC's Kitchen of India

Satnam Overseas' Basmati rice.
Lakshmi Mittal
     Indian Managers Book Seats in
           Global MNC Board
•   Citibank – Sanjay Nayar
•   Standard Chartered – Jaspal Bindra
•   Deutsche Bank – Anshu Jain
•   HSBC – S N Mehta
•   Arcelor Mittal – Lakshmi Mittal, Aditya Mittal, Inder Walia,
    Sudhir Maheshwari, Narendra Chaudhury,
•   HP – Vyomesh Joshi
•   P&G – Ravi Chaturvdi
•   Reckitt Benkiser – Rakesh Kapoor
•   Unilever – Vindi Banga & Harish Manwani
   Indian Life & Style
   Voice of Asia




SPAN
     Lesson Learnt for AAA Creating
                Brands
Consistency
Understanding of Customers/Target
Message/Communication
Creative/Design/Brand ID
Relevance
Differentiation/Uniqueness
Key Stakeholder Buy-In
Positioning
Clarity
Connection to Customer/Target
Awareness/Recall/Memorability
Focus
Authentic/Truthful/Honest/Accurate
    Lesson Learnt for AAA Creating
               Brands
Leadership
Budget/Cost
Strategy
Product
Research
Innovation
Simplicity
Delivering on promises
Public Relations
People
Marketing
Advertising
Other
     Thank You

Email: pat@mica.ac.in

								
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