A Requiem for a Brand

Pradeep Chandra

Description

Drawing from his extensive business management experience, Pradip Chanda turns traditional wisdom on its head when he proposes that brand loyalty is inversely proportional to the income and education levels of the 'knowledge consumer'. He examines how and why brands have become strategic assets, traces the evolution of knowledge consumer and what can companies do to protect equity of the brands they have nurtured over decades. A new approach to building brand loyalty that gives marketers a competitive edge in today's high-tech, high-stakes and brand-hostile environment. The book combines the knowledge with engaging real-life case studies and proven examples.

Sujets

• Marketing stratégique
• Marketing
• Management
• Leadership
• Circuit de Brands Hatch
• Direct
• Business
• Success
• Advertising
• Economics
• Consumerism
• Marketing et communication

Informations

• Publié par: Roli Books
• Date de parution: 06 avril 2011
• Nombre de lectures: 1
• EAN13: 9788174369482
• Langue: English

Extrait

A Requiem for a Brand
Targeting the New-Age Consumer
Pradip Chanda
Lotus Collection 2010
Pradip Chanda, 2010
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First published in 2010
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For Tara and Maile Let s do our bit for a better world
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Contents
Foreword
Preface
What Porter Didn t Have to Teach
The Brand Build-up
Valuing a Brand
Measuring Brand Equity
Emergence of the Knowledge Consumer
Profile of the Knowledge Consumer
Globalization of the Knowledge Consumer
A Peek into the Minds of Knowledge Consumers
The Trade Learns First
Manufacturers Wake Up
An Icon Under Pressure
Building an Icon
Creating a Winning Brand
Strategies for the New Millennium
Re-inventing Walmart
The De-Beers Makeover
The Audacity of Hope
Acknowledgements
Index
Foreword
In 1993, Quaker paid $1.7 billion to buy the Snapple brand, outbidding Coca-Cola, among other interested parties. Four years later, Quaker destroyed almost one and a half billion dollars worth of Snapple value and sold it to Triarc Beverages for $ 300 million. Triarc managed to revive the brand in a short period of time and in October 2000 sold Snapple, along with a few other minor brands, to Cadbury Schweppes for $1 billion. In a short time span, several million dollars worth of value was created, destroyed and created again.
By now it is a widely accepted fact that brands are important assets for companies. They need to be managed and nurtured carefully. Today, more than two-thirds of a firm s value resides in its intangible assets, of which brands are an important part. In its 2008 report, Interbrand, a UK-based brand valuation company, estimated Coke s brand value at more than $66 billion, or almost 70 per cent of Coke s enterprise value. In December 2004, Lenovo, a Chinese PC company, bought the ThinkPad line from IBM for $1.75 billion. Clearly, Lenovo was buying more than the technology. The ThinkPad brand catapulted Lenovo to the world stage as a global player in the PC market.
In spite of the tremendous power and value of brands, we witness many trends that raise concerns about brand power. Private labels are gaining share worldwide. A recent study by the Confederation of the Food and Drink Industries of the European Union estimated that the share of private label markets has reached as high as 48 per cent in traditional retailers, and 94 per cent in discounters. Consumer brand loyalty seems to be declining every year, making customer retention one of the top priorities for most managers.
Are brands losing power? If yes, what changes are causing this decline in brand power? And how should brands be managed differently in the twenty-first century? These are some of the questions Pradip Chanda tackles in this book, A Requiem for a Brand.
While intuition suggests that high-income consumers are less price sensitive and therefore likely to be more brand loyal, Pradip argues that in fact the exact opposite is true. He further suggests that better education and easy access to information through Internet has also led to the rise of knowledge consumers and has caused brand loyalty to erode over time. The book then lays out a new way of managing brands. It also shows future trends that may influence how brands are managed in the next decade or so. Pradip highlights his thesis with several interesting Indian and international case studies. The case studies themselves make fascinating reading.
This is a provocative book. Whether you agree with the arguments of this book or not, it will certainly make you think. And that, in my judgement, is the hallmark of a good book.

December 2009
Sunil Gupta Edward W. Carter Professor of Business Harvard Business School Boston, USA
Preface
Almost everyone I know in the marketing and advertising fraternity violently disagrees with my proposition that Brand Loyalty is inversely proportional to income and education levels.
That is not surprising. Traditionally managers responsible for building brands have firmly believed the exact opposite. A belief no doubt reinforced by the challenges brand managers have faced in weaning away loyal users from established brands especially in markets where the disposable income available in consumer hands has been limited.
I have developed my proposition based on my experiences in my early life in brand management roles and validation thereof later in my strategic management positions when I had to sign off on short- and long-term marketing strategies.
A Requiem for a Brand is more a question than an obituary. That is because brands as strategic assets are here to stay, contrary to what the title suggests. It s just that times have changed and brands need to be nurtured differently now than ever before.
This book is therefore presented in three parts. The first part examines how and why brands became strategic assets. The second part traces the evolution of the Knowledge Consumer, who changed the rules of the game and raised questions about the value of a brand as a strategic asset. The profile of the Knowledge Consumer led me to my proposition Brand Loyalty is inversely proportionate to income and education levels . The final section deals with the transition of the Knowledge Consumer to a Concerned Consumer and what savvy companies can and are doing to protect the equity of the brands that they have nurtured over decades.
Each part is supported with case studies, as witnesses are summoned into courts by defending counsels, to lend credence to my proposition. .
You are the jury. I hope you enjoy the ensuing debate.
Please e-mail the verdict to [e-mail].
What Porter1 Didn t Have to Teach
ONCE upon a time, the industrial belt north of Calcutta was a beehive of activity.
Starting with Hind Motors, the home of an automobile plant, the belt stretched on GT Road, that is National Highway Number 1, to Durgapur, where a 2.5 million tonne steel, a smaller Alloy steel and a large AVB manufacturing plant were thriving.
Beyond, the road continued towards Chittaranjan, which had the biggest locomotive manufacturing facility in the country and a somewhat aged medium-size steel plant, then took a dogleg to Dhanbad, the coal capital of India, and eventually reached Sindri, where the largest fertilizer production complex in this part of the world had started operating.
Howrah, the southern tip of this industrial belt, just across the Hooghly river from Calcutta, was to become the hub for a number of small- and medium-size companies which set up foundries and machine shops to manufacture sundry parts, fittings and fixtures to meet the projected demand from these industrial behemoths.
One such unit, Bengal United Company, produced a range of pipeline valves.
When I joined the company as an apprentice, courtesy its owner, my brother-in-law, I was fresh out of college armed with a degree in arts. In them days it was de rigueur for students in Calcutta to be steeped in coffeehouse versions of Marxism, swear by existentialism as spouted by Satre and Camus and vilify commerce as the greed index of the hoi polloi, to be avoided till such time making a living from commerce became unavoidable.
But naturally, I was blissfully unconcerned about why and what had made Binaca toothpaste, Colgate toothbrushes, Pears soap, Charminar cigarettes and many other such products integral parts of my life. I hadn t, like most other consumers of my generation, heard of Brand Power. We knew names of what we used and rarely tried anything else, more out of inertia than as a result of conscious capitulation to the wiles of advertising and the odd little freebies that came inside cartons, often a pleasant surprise.
For example, the Binaca charms were collectible and tradable trinkets from my school days, but we never thought about the nameless genius who put those in as a seductive ploy to hook us on. Much later would I appreciate that the decision