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IMT-75: Brand Management-MT3

IMT-75: Brand Management-MT3

Part - A

 

Question 1: Describe various attributes of a brand with the help of an example.

Question 2: How does a brand add value to a company? Explain with the help of some recent brand acquisition in the market.

Question 3: What is brand image? How is it different from brand identity?

Question 4: What are the various symbols used in branding? What should be the elements of good symbol?

Question 5: What is a trademark? How does it contribute to brand equity?

 

PART - B

Question 1: What are the essential prerequisites for designing an effective advertising message?

Question 2: Celebrity attention may attract greater attention, and therefore increase advertising effectiveness. Discuss the pros and cons of celebrity endorsements.

Question 3: Discuss the post testing techniques of measurement of advertising effectiveness.

Question 4: What is brand equity? What are the major components of brand equity?

Question 5: Differentiate between revitalization and reinforcement of the brands, with the help of the relevant examples from your everyday life.

 

PART - C

Question 1: What conditions should be present for successful revitalization of brands to take place.

Question 2: Under what conditions are brand extensions successful? Explain with examples.

Question 3: What is co branding? what type of companies can draw benefit from co branding. Also mention different types of co branding

Question 4: What is a brand portfolio? Why should companies maintain a portfolio of brands?

Question 5: Discuss the threat posed by private labels to manufacturer brands.

 

CASE STUDY – I

 

Finnish mobile company Nokia Corp.'s last stronghold, India, is under threat from South Korean rival Samsung Electronics Co.

 

Nokia held a 26% share of the 170 million handsets shipped to India in 2012, with Samsung following closely behind with 22% of the market, data from Singapore-based mobile research firm Canalys shows. The South Korean company has already leapfrogged Nokia as the world's biggest mobile handset maker by unit shipments.

 

The same story could now unfold in India, where Samsung's inexpensive handsets based on Google Inc.'s Android operating system are an emerging threat, analysts say.

India is the single largest market for Nokia, accounting for 13% of the 336 million handsets it shipped across the globe in 2012, Canalys data shows. But its market share in India has been dwindling.

 

"It's definitely plausible that Samsung's low-end Galaxy Smartphone series will explode even more and cumulatively Samsung will edge out Nokia," said Jessica Kwee, an analyst with Canalys.

 

With about 14 models of Galaxy smart phones available in cost ranging from 5,900 rupees ($110) to 36,500 rupees, Samsung sneaked past Nokia to be the no. 1 Smartphone maker in India at the beginning of last year.

 

"Samsung seems to be more in sync with the market trends for smart devices in India," said G. Rajeev, an independent analyst tracking the handset market in India. "It is the one device maker with the largest number of devices on the Android operating platform," he added.

 

Android is the most widely used Smartphone operating system in India.

 

Nokia, on the other hand, has been slow to identify trends in the devices market.

 

Last year, Nokia more than halved its market share in India from 2009 when the Finnish company commanded nearly 60% of the country's handset market.

 

At the lower end, Nokia was late to the party when a bunch of local handset makers like Micromax and Karbonn started rolling out phones with two SIM cards, which became an instant success in India, said Katyayan Gupta, an analyst with U.S.-based research firm Forrester Research Inc. "At the high end, Nokia had no answer to Apple Inc.'s iPhones or Samsung's Galaxy series smartphones for a long time," he said.

 

With just five models of Windows-based Lumia phones available in the market, Nokia is still building its smartphone portfolio. But most consumers are aligning themselves either with Apple's iOS operating system or Samsung's Android-based devices.

 

In India, Nokia relies heavily on basic mobile phones priced as low as $20 and the smart feature phones it introduced in early 2012 under the brand name Asha that cost $65 to $150.

 

Smart feature phones have touch screens and sport smartphone-like functionalities. They come with popular social-media apps, such as Twitter, preinstalled, but they don't have an operating system.

 

The popularity of Asha brand phones gave the Finnish company a leg up over its South Korean rival in the smart feature phones segment last year.

In February, Samsung ratcheted up competition by launching the Rex series of smart feature phones that are priced between $50 and $100, posing a new threat to Nokia.

 

The Rex mobile series "may definitely be a cause of concern" for Nokia, said Anshul Gupta, principal analyst with U.S.-based research firm Gartner Inc.

 

1.       What advantage Nokia has over other brands in market

2.       What is the reason Nokia is into problem

3.       How would you rate brand equity of Nokia? Are there any advantages Nokia can exploit?

 

CASE STUDY - II

 

Ghari Detergent Poweder: Road ahead

HLL entered in the detergent segment in India in 1957, its brand Surf remained the market leader for a long time. Nirma Chemicals was started in 1969; in 1985 Nirma became the leading detergent in India. Nirma's primary focus was to create a good, branded product at affordable prices. The product was priced far lower than the market leader - Surf. Nirma caught the attention of the middle-class and lower middle class customers and had such great sales that it evicted HUL's Surf from the No. 1 position in 1985. HLL then had a look at the situation and found that there was a large market segmentation in detergent space and then came up with lower priced Wheel (green) and Rin (blue) detergent powders targeted at different market segments. This segmentation helped HLL regain part of its lost market.

 

In 1987, Ghari was launched by RSPL (Rohit Surfactancts Pvt. Ltd.), the product was also less priced and targeted at the rural customers, middle class and lower-middle class customers. It also had more or less the same positioning strategy as Nirma. In 1988, HUL launched Wheel to take on Nirma. In early 2000's Wheel succeeded Nirma and took the No.l spot. However in the last decade it was Ghari which did a Nirma to Nirma and became Market leader .In late 2011 and early 2012, Ghari overtook Wheel and took the numero-uno spot in Indian detergent industry.

 

Currently, Ghari is the market leader with a market share of 17.3%, Wheel is at number 2 with a share of 16.9%, Tide is 3rd with a market share of 13.5%. Nirma has market share of less than 6% now. Interesting facts. HUL is still the overall market giant with Wheel, Rin and Surf (one product for each segment) doing well. But Ghari is now the overall market leader. However dollar wise HUL is still the market leader.

 

Ghari has grown from strength to strength with its target market segment and affordable pricing. Ghari has spread its distribution network to more states now and directly reaches rural markets, which is its biggest audience. The company has entered 10 more states in the last three years and now peddles its ware in 19 states, through more than 3,500 dealers. It has 21 manufacturing units, 15 of which were added since 2006.

The company continues to target cheaper and unbranded local products to create more market for Ghari detergent powder. Villagers are persuaded to move to a branded detergent like Ghari which is well within their reach and has far better cleansing power than slabs of cheap local soaps. Combined with its great distribution network and a good product, the sales of the Ghari detergent have risen admirably.

 

A one kg pack of Ghari detergent is priced at Rs 35 and a 2.5 kg pack is priced Rs 85 only.

 

Unlike its rivals Ghari, basically indulges in far less advertising as compared to MNC's . It spends just 2 % of its sales on advertising and sales promotion . The company is aggressive in road shows Melas, Haat and Mandi's in rural areas . Ghari has been established as a brand primarily competing on value . It has largely gained its market share from the local players available in the market who still occupy about 40% of the market share . Meanwhile HUL has not lowered its prices to fight Ghari . Both their brands Wheel and Rin have gained market share in the past two years . Nirma has lost some of its market share to Ghari and some to HUL.

 

However despite being a huge brand it would be a challenge for Ghari to sustain its brand equity , as it has survived on low margins, aggressive distribution, frugal advertising which together create a low cushion business model.

 

1.       What are the key elements of brand Ghari ?

2.       What future course would you suggest for Ghari to sustain its brand ? What brand strategy would you suggest to the company

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