Brand Management
Content
BRAND MANAGEMENT
ASSIGNMENT #1
ANALYSIS OF BRANDS: PEL, NAURUS, EVERYDAY
SUBMITTED BY: ABDUL-LATIF ABBASI CLASS: MBA-III (DPO) SUBMITTED TO: AKHTER MEHMOOD DATE: 14TH NOVEMBER 2009
1|Page Submitted by: ABDUL LATIF ABBASI
IBA
INSTITTUTE OF BUSINESS ADMINISTRATION KARACHI
Reposition the “Naurus” brand to acquire a higher brand equity.
The important thing in developing the brand equity of Naurus through repositioning is understanding the current positioning of Naurus and the flaws in current positioning. Current positioning: Naurus is being positioned as thirst quenching, refreshing and a mashroob that is vital in every season and for all ages. Naurus is focusing on a family to position itself a family drink. Latest advertisement of Naurus is focusing on reminding the audience about Naurus whenever they feel thirsty, desire for a refreshing drink, in a family gathering, after the hectic work, in rainy weather, etc. Naurus is presenting itself as a “Qomi mashroob”. The reason behind such a tagline is to inject the association of the drink with the Pakistani audience. Following are some ideas that NAURUS-SUNDIP company says about Naurus.
“Naurus (Pvt.) Ltd. as a company was incorporated in the year 1979. The brand “ NAURUS ” however existed much before that and was being manufactured under the name of another organization. Naurus Syrup was positioned as the NEW (nau) DRINK (rus) of the era when it was initially launched. Later on because of its increasing popularity amongst the general population, it was positioned as the National Drink of Pakistan because it like any other national symbol of the nation it connected people together irrespective of their social stature or creed”.
Reasons of under positioning: to identify the reasons of under positioning I conducted a small scale focus group interview and identified following reasons.
1. Naurus have failed to mark place against the two established brands namely Rooh-Afza and Jam-e-shireen. Since both of these brands have marked their presence before 2|Page Submitted by: ABDUL LATIF ABBASI
Naurus and have established a very strong position in the minds of the consumers therefore Naurus has remained under positioned for years.
2. There are big names associated with Rooh-Afza and Jam-e-shireen like Hakim Abdul
Majeed, Hakim Abdul Hameed, Hakim Abdul Saeed and Mr. Iqbal Ahmad Qarshi, Hakim Shafi-ul-Malik respectively. On the other side, Naurus have not developed such an association to achieve a good market share against the tough competitiors.
3. Naurus has very strong competition from indirect competing brands as well. These
brands include “Pepsi”, “Coke”, “Tapal cold Tea and Coffee”, ‘Gatorade”, “Red bull” and many other local and international brands of beverages and juices etc. hence making a little room for Naurus to attain a greater chunk of this market.
4.
Naurus has maintained an inconsistent approach in delivering its message. Naurus spend little on advertising and other promotion campaigns that some responses really baffled when I asked about Naurus and some people replied, “they did not hear about Naurus”.
5. Naurus has not differentiated itself. Besides other things, Naurus is following the same
pricing strategy as Rooh Afza and jam-e-Shireen hence giving a good reason for consumer to purchase Rooh Afza or Jam-e-Shireen rather than Naurus.
6. Naurus is focusing on the functional benefits of the laal sharbat but it has failed to
achieve its place in the minds of the consumer. Naurus is presenting itself as thirst quenching and refreshing drink and therefore indulging itself in to the competition. Such actions are presenting Naurus as “mee too” product.
Developing brand equity of Naurus: following are the steps to develop the brand equity of Naurus. 1. First and foremost, change the tagline to something very catchy but logical. In order to get a good tagline, one must understand four key components: a. Target consumer: Pakistani society, more precisely, middle and upper middle families. Individuals are not the consumer of such a drink. b. Brand essence: A pure herbal syrup, that provides freshness and energy to your body and revitalizes the strength of your body to keep you and your family healthy and flourishing. 3|Page Submitted by: ABDUL LATIF ABBASI
c. Brand promise: Fulfils the energy needs of a body through natural ingredients and ensures a good health by providing you necessary minerals. d. Brand personality: Naurus is a family doctor that helps you regain your energy after a hectic job and keeps your family healthy. Naurus is constantly researching to improve its formula in order to provide you a healthier life. These components will draw a clear picture of the brand and a smooth way to develop the brand equity of Naurus. The tagline of Naurus will be “Naurus ka munfirid formula rakhey apko aur apki family ko fresh her din, her waqt”. 2. Naurus has to improve its rating in the minds of the consumers through brand testimonials and brand associations. Analysis of the target market of Naurus will help us to conclude that people like Talat Hussian, Shafi Mohammed Shah and Bushra Ansari will help in improving the perception of Naurus. Since Naurus is first introduced in 1979 and these celebrities are the stars of that era and are still very healthy and active. 3. A consistent, planned and innovative advertising and promotion campaign is compulsory to enhance the brand equity of an under positioned brand. The advertising campaigns are intend to present the differentiating factor of the brand and that is “care” or “concern for family” as safeguard is doing. Promotional campaigns are intend to give value to the consumers in order to stand out against Rooh Afza and Jam-e-Shireen. The promotional campaign should focus on price promotions rather gifts or sweepstakes etc. like giving 30% extra in same price, buy 2 get one free etc. 4. Naurus can stand out of the competition by doing little differentiation. Naurus present itself as a drink that is constantly working on natural herbs and shrubs to provide improved and enrich syrup for energy-demanding works and jobs of this era. These are the ways through which Naurus can improve its positioning and acquire a higher brand equity.
4|Page Submitted by: ABDUL LATIF ABBASI
Developing a proper positioning of PEL in competition against Wave and Orient-Mitsubishi.
Current positioning of PEL: PEL is currently position as a brand that will change your lifestyle. The recent advertising campaign featuring Hadiqa Kiayani in different lifestyles presents the sense of comfort and luxurious life with PEL appliances. Previously, PEL products were focusing on the housewives that only want to save their time by doing their housework through efficient house appliances. PEL has extended its positioning to cater more trendy women as well. Primarily, PEL is focusing on “change your life” from fatigue to relaxation and comfort. Positioning of WAVES: WAVES is paddling as a “largest selling brand of Pakistan”. WAVES is presenting its product as a different entity under the umbrella of WAVES. WAVES refrigerator is focusing on a family values. It is presented as a solution to a family needs of freezing foods and drinks. Latest brand of WAVES called WAVES ROOMY, is catering to the needs of larger family. Similarly, WAVES microwave oven and split ACs are focusing on different markets with different brand positioning. Though WAVES has not presented itself something very unique but it has developed its reputation through constant innovation and providing the solution of the changing needs of its market. WAVES triplet, WAVES roomy, WAVES plasma gold AC are some prime examples. Positioning of Orient-Mitsubishi: Orient has a very strong brand perception of because of its association with Japanese technology. Mitsubishi has a very strong brand image of quality in the minds of consumers. Orient is presenting all of its products as “first preference” for any first time buyer. Specifically, orient is targeting the first time buyer and the innovators who try new products and new brands. “Pehli Chahat” is the slogan of Orient appliances.
5|Page Submitted by: ABDUL LATIF ABBASI
How to build strong brand loyalty for PEL: Following are some steps that help PEL to develop its brand loyalty.
I.
Brand must deliver its promise: Rather than exaggerating the actual functionality and comfort derived from the PEL products, PEL should focus on communicating the real benefit that consumer will get from PEL appliances. PEL should communicate the best practices it employ to ensure the quality products to the consumer rather than presenting the product an instrument of comfort and luxury like many others small competitors are doing.
II.
Product innovation is indispensable: PEL is not doing well against its counterparts in introducing innovation in the appliances. On the other hand, Orient and particularly WAVES are introducing constant innovation in their products. Product innovation includes developing propositions- product, packaging and importantly service elements. PEL should focus adding value to its product range through innovation.
III.
Building loyalty is also about innovation in marketing ideas: Making the brand stand for something more than a mere product for example successful brands are streamlining to current trends for corporate responsibility. The successful cases of Ariel, safegaurd and PSO are speaking high volumes of developing brand loyalty through innovative marketing techniques such as being social responsible. PEL should initiate such a program say “Green Pakistan” to aware the citizenry about the CFCs and present the solution through innovating its product.
IV.
Consistency is now replaced with authenticity: Companies are focusing on development of natural relationship with customers rather than forcible bondage. PEL should develop natural relationship with its customers by promising them a better quality product, handling their queries and solving their problems. Fair & Lovely is a prime example of such a natural relationship. The customers of Fair & Lovely are treating F & L as a trusted friend.
V.
Re-evaluate communication media mix: leading companies are no longer relying on traditional media like TV, radio and print. PEL should re-evaluate its communication mix. Since Ariel, Surf Excel, Safegaurd and Lifebuoy are using different communication mix to approach their target audiences which includes shows like “Paint masti”, “Safegaurd’s National hand wash program” etc. PEL should consider
6|Page Submitted by: ABDUL LATIF ABBASI
other media like conferences about environmental friendly technology- in line with its promise of social responsible. Trade fairs, consumer awareness programs etc to catch the attention of its target markets.
VI.
When, where and how to reach consumers should constantly be re-examined: Since consumer preferences are not constant today, a proper re-examination of products, messages, media and delivery is important.
NESTLE EVERYDAY:
Positioning: focusing on the newly married couple and the growing understanding between the life partners is the central idea of the everyday. “Baney hain ek doosrey k liye” is depicting the same concept as life partners are made for each other. Everyday is positioned as a right choice for tea. Everyday is developing a perception of love and strong bond with tea as the love and bonding nurture in a newly married couple. Price: Product description Everyday whitener powder Everyday whitener powder Everyday whitener powder Everyday whitener powder stick pack Size(in gm) 1000 40 400 4 Retail per pack Rs.330 Rs.15 Rs.150 N/A
Promotion: Nestlé’s philosophy on promotion is very hard-line and conservative. Nestlé believes that brand becomes weaker as consumer get addicted of receiving promotions. This is the reason why Everyday uses rare consumer promotion. On the other hand, Nestle has developed strong distribution system through trade promotions. Distribution: Nestle everyday has a very strong distribution network. Everyday is available at every nook and corner of the country. Everyday is available in wide assortments ranging from 1000gm to 25 and 4 gm to facilitate the consumption of the product according to the needs of the consumer.
7|Page Submitted by: ABDUL LATIF ABBASI
Range of assortments: Everyday is available in five different assortments. These are 1000 gm, 400gm, 200ml, 40gm and 4 gm. All the assortments are catering the needs of different family sizes and income groups. Strengths: Everyday being leader in this category has the first move advantage. Everyday has developed very strong brand loyalty and fast emotional bond with its customers. Everyday has a very strong distribution system. The availability of the product is the major success factor in building strong brand loyalty. Association of Everyday with Nestle is also a big advantage of the (Everyday) brand. Nestle use to endorse their new brands through sub branding. The association of Everyday with Nestle is ensuring the perception of loyalty, quality and fulfillment of promise. Weaknesses: One of the major weakness of a tea whitener like Everyday is its short expiry dates. This product needs suitable temperature and neat space for good results. I personally observed that sachets of Nestle placed at khokhas – particularly in interior Sind and Punjab- are not in usable conditions. These packages are vulnerable to dust and heat which cause them to spoil often. Target Market: The target market of the Everyday is a young married couple that cares for each other in early years of marriage life cycle. That couple may fall into middle and uppermiddle working class of the society. Unique selling proposition: “baney hain ek doosrey k liyey” Positioning statement: “Everyday app ki chai mein mazey ka jadoo jagaey, kyon k Everyday aur chai bunney hain ek doosrey k liyey”. Everyday is claiming that there is no alternative of Everyday because tea is incomplete without Everyday. Brand in next five years: Everyday has a very good potential of substituting the milk as necessary ingredient for tea. Since the milk is getting difficult to available and prices of milk are also rising very sharply, Everyday is becoming a good alternative of milk for tea. Everyday has developed a strong brand perception and that can be cashed through extending the target market to larger family sizes or even joint families. I have witnessed many families have shifted from milk to tea whitener in order to minimize their expenditures as well as giving a new taste to tea.
8|Page Submitted by: ABDUL LATIF ABBASI
Everyday is commonly used in offices, meetings and in mess of hostels. The scope of the product is very wide and the market is very lucrative to yield benefits of high brand loyalty.
9|Page Submitted by: ABDUL LATIF ABBASI
ASSIGNMENT #1
ANALYSIS OF BRANDS: PEL, NAURUS, EVERYDAY
SUBMITTED BY: ABDUL-LATIF ABBASI CLASS: MBA-III (DPO) SUBMITTED TO: AKHTER MEHMOOD DATE: 14TH NOVEMBER 2009
1|Page Submitted by: ABDUL LATIF ABBASI
IBA
INSTITTUTE OF BUSINESS ADMINISTRATION KARACHI
Reposition the “Naurus” brand to acquire a higher brand equity.
The important thing in developing the brand equity of Naurus through repositioning is understanding the current positioning of Naurus and the flaws in current positioning. Current positioning: Naurus is being positioned as thirst quenching, refreshing and a mashroob that is vital in every season and for all ages. Naurus is focusing on a family to position itself a family drink. Latest advertisement of Naurus is focusing on reminding the audience about Naurus whenever they feel thirsty, desire for a refreshing drink, in a family gathering, after the hectic work, in rainy weather, etc. Naurus is presenting itself as a “Qomi mashroob”. The reason behind such a tagline is to inject the association of the drink with the Pakistani audience. Following are some ideas that NAURUS-SUNDIP company says about Naurus.
“Naurus (Pvt.) Ltd. as a company was incorporated in the year 1979. The brand “ NAURUS ” however existed much before that and was being manufactured under the name of another organization. Naurus Syrup was positioned as the NEW (nau) DRINK (rus) of the era when it was initially launched. Later on because of its increasing popularity amongst the general population, it was positioned as the National Drink of Pakistan because it like any other national symbol of the nation it connected people together irrespective of their social stature or creed”.
Reasons of under positioning: to identify the reasons of under positioning I conducted a small scale focus group interview and identified following reasons.
1. Naurus have failed to mark place against the two established brands namely Rooh-Afza and Jam-e-shireen. Since both of these brands have marked their presence before 2|Page Submitted by: ABDUL LATIF ABBASI
Naurus and have established a very strong position in the minds of the consumers therefore Naurus has remained under positioned for years.
2. There are big names associated with Rooh-Afza and Jam-e-shireen like Hakim Abdul
Majeed, Hakim Abdul Hameed, Hakim Abdul Saeed and Mr. Iqbal Ahmad Qarshi, Hakim Shafi-ul-Malik respectively. On the other side, Naurus have not developed such an association to achieve a good market share against the tough competitiors.
3. Naurus has very strong competition from indirect competing brands as well. These
brands include “Pepsi”, “Coke”, “Tapal cold Tea and Coffee”, ‘Gatorade”, “Red bull” and many other local and international brands of beverages and juices etc. hence making a little room for Naurus to attain a greater chunk of this market.
4.
Naurus has maintained an inconsistent approach in delivering its message. Naurus spend little on advertising and other promotion campaigns that some responses really baffled when I asked about Naurus and some people replied, “they did not hear about Naurus”.
5. Naurus has not differentiated itself. Besides other things, Naurus is following the same
pricing strategy as Rooh Afza and jam-e-Shireen hence giving a good reason for consumer to purchase Rooh Afza or Jam-e-Shireen rather than Naurus.
6. Naurus is focusing on the functional benefits of the laal sharbat but it has failed to
achieve its place in the minds of the consumer. Naurus is presenting itself as thirst quenching and refreshing drink and therefore indulging itself in to the competition. Such actions are presenting Naurus as “mee too” product.
Developing brand equity of Naurus: following are the steps to develop the brand equity of Naurus. 1. First and foremost, change the tagline to something very catchy but logical. In order to get a good tagline, one must understand four key components: a. Target consumer: Pakistani society, more precisely, middle and upper middle families. Individuals are not the consumer of such a drink. b. Brand essence: A pure herbal syrup, that provides freshness and energy to your body and revitalizes the strength of your body to keep you and your family healthy and flourishing. 3|Page Submitted by: ABDUL LATIF ABBASI
c. Brand promise: Fulfils the energy needs of a body through natural ingredients and ensures a good health by providing you necessary minerals. d. Brand personality: Naurus is a family doctor that helps you regain your energy after a hectic job and keeps your family healthy. Naurus is constantly researching to improve its formula in order to provide you a healthier life. These components will draw a clear picture of the brand and a smooth way to develop the brand equity of Naurus. The tagline of Naurus will be “Naurus ka munfirid formula rakhey apko aur apki family ko fresh her din, her waqt”. 2. Naurus has to improve its rating in the minds of the consumers through brand testimonials and brand associations. Analysis of the target market of Naurus will help us to conclude that people like Talat Hussian, Shafi Mohammed Shah and Bushra Ansari will help in improving the perception of Naurus. Since Naurus is first introduced in 1979 and these celebrities are the stars of that era and are still very healthy and active. 3. A consistent, planned and innovative advertising and promotion campaign is compulsory to enhance the brand equity of an under positioned brand. The advertising campaigns are intend to present the differentiating factor of the brand and that is “care” or “concern for family” as safeguard is doing. Promotional campaigns are intend to give value to the consumers in order to stand out against Rooh Afza and Jam-e-Shireen. The promotional campaign should focus on price promotions rather gifts or sweepstakes etc. like giving 30% extra in same price, buy 2 get one free etc. 4. Naurus can stand out of the competition by doing little differentiation. Naurus present itself as a drink that is constantly working on natural herbs and shrubs to provide improved and enrich syrup for energy-demanding works and jobs of this era. These are the ways through which Naurus can improve its positioning and acquire a higher brand equity.
4|Page Submitted by: ABDUL LATIF ABBASI
Developing a proper positioning of PEL in competition against Wave and Orient-Mitsubishi.
Current positioning of PEL: PEL is currently position as a brand that will change your lifestyle. The recent advertising campaign featuring Hadiqa Kiayani in different lifestyles presents the sense of comfort and luxurious life with PEL appliances. Previously, PEL products were focusing on the housewives that only want to save their time by doing their housework through efficient house appliances. PEL has extended its positioning to cater more trendy women as well. Primarily, PEL is focusing on “change your life” from fatigue to relaxation and comfort. Positioning of WAVES: WAVES is paddling as a “largest selling brand of Pakistan”. WAVES is presenting its product as a different entity under the umbrella of WAVES. WAVES refrigerator is focusing on a family values. It is presented as a solution to a family needs of freezing foods and drinks. Latest brand of WAVES called WAVES ROOMY, is catering to the needs of larger family. Similarly, WAVES microwave oven and split ACs are focusing on different markets with different brand positioning. Though WAVES has not presented itself something very unique but it has developed its reputation through constant innovation and providing the solution of the changing needs of its market. WAVES triplet, WAVES roomy, WAVES plasma gold AC are some prime examples. Positioning of Orient-Mitsubishi: Orient has a very strong brand perception of because of its association with Japanese technology. Mitsubishi has a very strong brand image of quality in the minds of consumers. Orient is presenting all of its products as “first preference” for any first time buyer. Specifically, orient is targeting the first time buyer and the innovators who try new products and new brands. “Pehli Chahat” is the slogan of Orient appliances.
5|Page Submitted by: ABDUL LATIF ABBASI
How to build strong brand loyalty for PEL: Following are some steps that help PEL to develop its brand loyalty.
I.
Brand must deliver its promise: Rather than exaggerating the actual functionality and comfort derived from the PEL products, PEL should focus on communicating the real benefit that consumer will get from PEL appliances. PEL should communicate the best practices it employ to ensure the quality products to the consumer rather than presenting the product an instrument of comfort and luxury like many others small competitors are doing.
II.
Product innovation is indispensable: PEL is not doing well against its counterparts in introducing innovation in the appliances. On the other hand, Orient and particularly WAVES are introducing constant innovation in their products. Product innovation includes developing propositions- product, packaging and importantly service elements. PEL should focus adding value to its product range through innovation.
III.
Building loyalty is also about innovation in marketing ideas: Making the brand stand for something more than a mere product for example successful brands are streamlining to current trends for corporate responsibility. The successful cases of Ariel, safegaurd and PSO are speaking high volumes of developing brand loyalty through innovative marketing techniques such as being social responsible. PEL should initiate such a program say “Green Pakistan” to aware the citizenry about the CFCs and present the solution through innovating its product.
IV.
Consistency is now replaced with authenticity: Companies are focusing on development of natural relationship with customers rather than forcible bondage. PEL should develop natural relationship with its customers by promising them a better quality product, handling their queries and solving their problems. Fair & Lovely is a prime example of such a natural relationship. The customers of Fair & Lovely are treating F & L as a trusted friend.
V.
Re-evaluate communication media mix: leading companies are no longer relying on traditional media like TV, radio and print. PEL should re-evaluate its communication mix. Since Ariel, Surf Excel, Safegaurd and Lifebuoy are using different communication mix to approach their target audiences which includes shows like “Paint masti”, “Safegaurd’s National hand wash program” etc. PEL should consider
6|Page Submitted by: ABDUL LATIF ABBASI
other media like conferences about environmental friendly technology- in line with its promise of social responsible. Trade fairs, consumer awareness programs etc to catch the attention of its target markets.
VI.
When, where and how to reach consumers should constantly be re-examined: Since consumer preferences are not constant today, a proper re-examination of products, messages, media and delivery is important.
NESTLE EVERYDAY:
Positioning: focusing on the newly married couple and the growing understanding between the life partners is the central idea of the everyday. “Baney hain ek doosrey k liye” is depicting the same concept as life partners are made for each other. Everyday is positioned as a right choice for tea. Everyday is developing a perception of love and strong bond with tea as the love and bonding nurture in a newly married couple. Price: Product description Everyday whitener powder Everyday whitener powder Everyday whitener powder Everyday whitener powder stick pack Size(in gm) 1000 40 400 4 Retail per pack Rs.330 Rs.15 Rs.150 N/A
Promotion: Nestlé’s philosophy on promotion is very hard-line and conservative. Nestlé believes that brand becomes weaker as consumer get addicted of receiving promotions. This is the reason why Everyday uses rare consumer promotion. On the other hand, Nestle has developed strong distribution system through trade promotions. Distribution: Nestle everyday has a very strong distribution network. Everyday is available at every nook and corner of the country. Everyday is available in wide assortments ranging from 1000gm to 25 and 4 gm to facilitate the consumption of the product according to the needs of the consumer.
7|Page Submitted by: ABDUL LATIF ABBASI
Range of assortments: Everyday is available in five different assortments. These are 1000 gm, 400gm, 200ml, 40gm and 4 gm. All the assortments are catering the needs of different family sizes and income groups. Strengths: Everyday being leader in this category has the first move advantage. Everyday has developed very strong brand loyalty and fast emotional bond with its customers. Everyday has a very strong distribution system. The availability of the product is the major success factor in building strong brand loyalty. Association of Everyday with Nestle is also a big advantage of the (Everyday) brand. Nestle use to endorse their new brands through sub branding. The association of Everyday with Nestle is ensuring the perception of loyalty, quality and fulfillment of promise. Weaknesses: One of the major weakness of a tea whitener like Everyday is its short expiry dates. This product needs suitable temperature and neat space for good results. I personally observed that sachets of Nestle placed at khokhas – particularly in interior Sind and Punjab- are not in usable conditions. These packages are vulnerable to dust and heat which cause them to spoil often. Target Market: The target market of the Everyday is a young married couple that cares for each other in early years of marriage life cycle. That couple may fall into middle and uppermiddle working class of the society. Unique selling proposition: “baney hain ek doosrey k liyey” Positioning statement: “Everyday app ki chai mein mazey ka jadoo jagaey, kyon k Everyday aur chai bunney hain ek doosrey k liyey”. Everyday is claiming that there is no alternative of Everyday because tea is incomplete without Everyday. Brand in next five years: Everyday has a very good potential of substituting the milk as necessary ingredient for tea. Since the milk is getting difficult to available and prices of milk are also rising very sharply, Everyday is becoming a good alternative of milk for tea. Everyday has developed a strong brand perception and that can be cashed through extending the target market to larger family sizes or even joint families. I have witnessed many families have shifted from milk to tea whitener in order to minimize their expenditures as well as giving a new taste to tea.
8|Page Submitted by: ABDUL LATIF ABBASI
Everyday is commonly used in offices, meetings and in mess of hostels. The scope of the product is very wide and the market is very lucrative to yield benefits of high brand loyalty.
9|Page Submitted by: ABDUL LATIF ABBASI
