09 January 2011

Brand Stereotypes

When stereotypes are welcome:
How brand associations create strong buying propositions for a product..



Brand stereotypes can create strong propositions. They create differentiation that may be difficult to dislodge by late entrants to a product category if the brand is nurtured well.


Of brand associations: The Lifebuoy, Lux and Pears brands have introduced product improvements in terms of their ‘germ killing' abilities to enhance and sustain the appeal of their stereotypes over time. The Santoor brand, on the other hand, tries to build on the positive associations of a turmeric-and-sandal offering. The Big Bazaar brand (top, right) has developed the stereotype of a middle-class, budget-oriented and value-based offering, just as Titan (above, right) has come to be associated with gifting.

Stereotypes in commonplace parlance are more associated with run-of-the-mill images. In the context of consumer behaviour, it is associated with meanings and pictures that are carried by consumers in their psyche.

Bru — does it suggest filter coffee? (One of the recent visuals in a TV commercial shows a filter that is used to make coffee in the traditional way and the brand has had a strong association with filter coffee.)

Titan — does it suggest gifting?

Private label black-coloured bathroom cleaner — does it suggest that a dark colour is associated with killing odour?

LG and Samsung, late entrants in several consumer durables categories in India, have not projected their country of origin as part of the stereotype associations of their brands. These are examples of how the principle of stereotypes can be applied to brands.

How do brand stereotypes help?
Brand stereotypes can create strong propositions. They create differentiation that may be difficult to dislodge by late entrants to a product category if the brand is nurtured well. Let us even consider the local sweet shops and not just the megabrands.

Grand Sweets in Chennai and Haldiram's in Kolkata are strong brands backed by stereotypes that have been associated with the unique taste of these offerings.

Big Bazaar, besides its huge stock-keeping units and variety, is also associated with the stereotype of middle-class, budget-oriented and value-based offerings. In reality, there may be several retailers in a city or several offerings that may be of value to consumers but the development of stereotypes helps brands stay entrenched in the minds of consumers.

An entrepreneur offering house repair services needs to build up a stereotype that would get latched to his target segment. This is more important in an emerging market where several categories are characterised by the unorganised sector.

For instance, the footwear market and the household furniture market are characterised by several manufacturers, some of them delivering high value and several delivering below par offerings.

There are a few branded offerings, normally in the higher ranges, providing even small manufacturers a clear opportunity to develop unique stereotypes in their respective territories.

The fewer the branded offerings, more the scope for the development of stereotypes. Even branded offerings, after they taste success, need to build or nurture the stereotypes they may have got associated with or built over a period of time.

HMT had advertised itself as the “timekeeper to the nation” much before branded offerings or Titan entered the market. Mysore sandalwood, that was almost a legendary offering (with a cross-section of consumers using the offering for six decades), got associated with very positive qualities much before the entry of the Santoor brand that has a turmeric-and-sandal offering (and built up a stereotype of an authentic, traditional, sandalwood application for healthy skin).

Brand stereotypes take definite shape over a period of time to ensure that the brand stays differentiated.

Product improvement sustains appeal

But brands also need to bring in attribute /product improvements that enhance and sustain the appeal of the stereotypes over time (Lifebuoy, Lux and Pears are good examples). Unilever has interestingly used three stereotypes to address the “germ killing” proposition and the three stereotypes are associated with three well-known brands.

Lifebuoy, with its macho associations of yesteryear, was more a rural soap with the proposition of germ killing action. Its urban repositioning used the same stereotype with changes in the offering and packaging and by moving it closer to the family. The germ killing action was advertised for its Total variant with the ‘mother-son' association. Associations have been added but the basic stereotype is the same, that of “germ-killing action”.

Hamam in the latest TV commercial indicates rashes caused by external exposure (may be perceived by the consumers as germs), but has created a stereotype of “traditional family usage”.

The visual shows not just the mother but the grandparents speculating about the rashes.

Pears, the brand with the “young and innocent” stereotype of yesteryear, has a germ shield variant. The TV visual of the brand (in recent times) shows the “mother-daughter” association.

In all the three cases, the past associations/brand's proposition have been preserved but the stereotypes have been used for differentiated imagery. (Pears introduced a “germ kill” variant.)

There may be other aspects such as price and target segment that may be involved in the strategy of these brands which have complemented such strategies.

Stereotype concepts can contribute to brand associations — whether new or old — if used with qualitative research on consumer associations.

IPL 2011: Intelligent Business


IPL-4 auction: Insight
Gautam Gambhir opens IPL-4 auction scoring $2.4 million:
72 players go for $52.8 m; India is flavour; Sourav Ganguly, Brian Lara unsold.


It was `Be Indian, Buy Indian', as former cricketer Navjot Singh Siddhu described, on the first day of the Indian Premier League-4 (IPL) auction on Saturday.

Of the top 10 players who got the highest bids, six were Indians and collectively they went for a total of $13.9 million, with the Indian opener, Gautam Gambhir, picked up by Kolkata Knight Riders (KKR) for a whopping $2.4 million - the highest bid of the day.

Each team can spend a maximum of $9 million for buying the players for a period of two years.

The auctions were held at ITC Gardenia Hotel that also hosts cricket teams during matches in Bangalore. The auction began with a draw of lots and the first player to be bid for was Gambhir. Midway through the process, Mumbai Indians, represented by Nita Ambani, wife of Mr Mukesh Ambani, dropped out of the race after hitting $800,000. KKR team, whose owner, actor Shah Rukh Khan, was not present, continued bidding for the player and finally won him for $2.4 million.

Yusuf Pathan's name came soon after and he went for the next highest bid of $2.1 million, again bagged by KKR in the auction which described as "a combination of poker and snakes and ladder." The fight to get Robin Uthappa was intense with his home team, Royal Challengers, Bangalore (RCB), and Delhi Daredevils battling it out. But the player was eventually bagged by a rank outsider, Team Pune, of the Sahara Group, for $2.1 million.

Incidentally, Uthappa is not even in the national T-20 team.

MIDWAY SHOCKS
But the shocks were to come midway through the auction with former Indian captain Saurav Ganguly and Brian Lara were among the 16 players unsold.

Rahul Dravid, too, went for a low $500,000 bagged by Rajasthan Royals. Surprisingly, RCB chose not to bid for him at all and later the team's co-owner, Mr Siddharth Mallya, told that they decided not to do so because Dravid was "not a T-20 player."

HIGH DRAMA
It was high drama during the bidding process when Mr Vijay Mallya's son, Siddharth, who went up to the table of Kings XI Punjab (KP) owner, actor Preity Zinta, and objected to her protests over a certain bid that went in favour of RCB.

In the end, as some of the commentators pointed out, the Day 1 honours belonged to KKR, which bagged Yusuf Pathan, Gautam Gambhir and Jacuqes Kallis, followed by RCB that got Indian medium pacer Zaheer Khan for $900,000, Tillkaratne Dilshan ($650,000) and Daniel Vettori ($550,000). Mumbai Indians, "strong as an oak tree", got Andrew Symonds and Rohit Sharma.

It had retained Sachin Tendulkar in the team. Chennai SuperKings, captained by Indian captain M. S. Dhoni, was subdued for most part of the day, as it has already certain key players in its team.

Towards the end of the day, it however, swung into action and bagged Mr Cricket, Mike Hussey, for $425,000, and after a major battle with the others, got S. Badrinath for $800,000.

Listed firms tighten purse strings on Day 1
Ambanis and Mallyas spend the most.


Listed companies who own teams in the Indian Premier League chose to be cautious with their spending on the first day of the player auctions.

GMR-owned Delhi Daredevils and Deccan Chronicle Holdings Ltd's Deccan Chargers were two of the lowest spenders on day one. Deccan Chargers spent $5.5 million (Rs 24.93 crore) while Delhi Daredevils spent $5.84 million (Rs 26.5 crore) in a relatively quiet day for the two at the auctions.

India Cements-backed Chennai Super Kings, who are also the reigning IPL champions, started off the day on a quiet note but a string of strategic purchases towards the end of the day took Chennai's total spending up to $7.62 (Rs 34.57 crore).

Low spenders
“The low spenders of the day were the teams owned by companies who are answerable to their shareholders. It would not be right to expect them to be shelling out a large amount of money for one single player. Overall these three teams made some good strategic buys,” 

Big spenders
The big spenders of the day included the likes of Kolkata Knight Riders, Royal Challengers Bangalore, Mumbai Indians, Kochi and Pune.

The UB Group which recently consolidated its sports ventures in a separate subsidiary were the biggest spenders of the day with Royal Challengers Bangalore spending $7.9 million (Rs 35.81 crore). Mumbai Indians' owner and Mukesh Ambani's wife, Ms Nita Ambani, flexed the financial muscle as Mumbai Indians spent more than $6 million in the first half of the auction itself. At the end of the day, Mumbai Indians had done $7.64 (Rs 34.6 crore) worth of shopping.

Kolkata Knight Riders, owned by Knight Riders Sports Pvt Ltd, made the two costliest buys of the day. Gautam Gambhir was bought by the team for $2.4 million (Rs 11.04 crore) while a further $2.1 million (Rs 9.52 crore) was spent for acquiring Yusuf Pathan.

Finally
The total money that the 10 IPL teams including new entrants, Team Kochi and Sahara Pune Warriors, spent on Day 1 was $52.8 million for buying 72 of the 353 players under hammer (The auction continues tomorrow).