RishikaBranding

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Intel’s expansion beyond the PC

In the early 1990s Intel’s core focus was developing chips for PCs. And although this was the core strength of the brand, Intel did not seize the opportunity to expand its product offerings to tablets, laptops, and cell phones at the right time. In addition, although the company has now expanded its product offerings, the company’s recent marketing efforts have also hurt its core strength, PC chip sales. As a result in 2016, Intel cut 12K jobs, or 11% of its global workforce. 

Intel’s mistakes:

1)Failure to keep up with Tech market trends: When Apple released the iPhone in 2008, Intel declined to provide the processor for the product. Management believed that the iPhone would flop and did not see a justification for the perceived high product development costs. Big Mistake. Unfortunately, the company lost out on big market opportunity. 

2) Branding issue for PC chips: At the same time, Intel has also suffered in the PC market. Intel has released newer chips in the last decade, but has not changed the names of these chips from the ones that were released nearly a decade ago. In turn, it has been hard for the end consumer to discern or believe that these chips are new and improved. 

Intel’s current attempt to recover: 

1) Campaigns to promote other product offerings :  Intel has recently released a new campaign that focuses experiences that Intel processors make across the world, from breakthroughs in art, medicine, fashion and beyond. The company has also changed its tagline to “Experience what’s inside.”

2) Video series:  In addition to the campaign, the company has released videos of people using Intel Technology in non traditional ways. 

https://www.youtube.com/watch?v=alTF-g7oMFk

Will Intel’s brand value recover? Only time will tell, but at least the company is moving in the right direction! 

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Brand value decline

In the recent case, we are presented with a value of customer vs. company equity chart and examples of brands that have moved from the iconic to mass market status over time such as Halston and Tommy Hilfiger. I started to think of other brands that used to be iconic at some point but now have shifted to the mass market. I also tried to understand why these brands were unable to maintain their iconic status. 

Here is one of the brands that came to my mind: 

MTV: In the early 80s, music videos emerged and MTV was the hippest cable TV channel. In fact, I used to watch the channel regularly while growing up. MTV differentiated itself and broadcasted live from spring break events and concerts. It regularly aired the biggest hits and unknown musical talent and Carson Daley and TRL were extremely popular shows. Everyone wanted to be a video-jockey. 

Here is what has caused the brand to fail. The TV channel used to be iconic for its music video shows, but over time the programming has shifted from music to trashy reality shows such as Catfish, Game Show, Awkward, and Eye Candy. The company eventually stopped airing quality music which is what had made it successful in the first place. Additionally, the channel, which was considered at the forefront of innovation, also failed to understand the viewing behaviors of millennials who mostly use Facebook, Youtube, and other internet sources to discover and listen to new types of music. 

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Brand value decline

In the recent case, we are presented with a value of customer vs. company equity chart and examples of brands that have moved from the iconic to mass market status over time such as Halston and Tommy Hilfiger. I started to think of other brands that used to be iconic at some point but now have shifted to the mass market. I also tried to understand why these brands were unable to maintain their iconic status. 

Here is one of the brands that came to my mind: 

MTV: In the early 80s, music videos emerged and MTV was the hippest cable TV channel. In fact, I used to watch the channel regularly while growing up. MTV differentiated itself and broadcasted live from spring break events and concerts. It regularly aired the biggest hits and unknown musical talent and Carson Daley and TRL were extremely popular shows. Everyone wanted to be a video-jockey. 

Here is what has caused the brand to fail. The TV channel used to be iconic for its music video shows, but over time the programming has shifted from music to trashy reality shows such as Catfish, Game Show, Awkward, and Eye Candy. The company eventually stopped airing quality music which is what had made it successful in the first place. Additionally, the channel, which was considered at the forefront of innovation, also failed to understand the viewing behaviors of millennials who mostly use Facebook, Youtube, and other internet sources to discover and listen to new types of music. 

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Singapore Airlines

;The airline industry is extremely competitive and great customer service is key to maintain a competitive edge and customer loyalty in the market. Singapore Airlines has a strong brand message that is deeply rooted in impeccable customer service and comfort, and the Singapore girl embodies these core values of the company. She is mysterious, attentive and always smiling and willing to help her customers. I distinctly remember her when I traveled to India and China on SA flights as a young girl. Normally, my family would choose to fly on Air India, but those flights were uncomfortable and service was terrible. My experience on Singapore Airlines was very different. I remember watching movies, playing games and eating really good food and dessert that was served by beautiful, cheerful and impeccably dressed attendants. The long hours on the plane would fly by, because the experience was fun and comfortable. 

I think that Singapore Airlines should purchase the space beds as they will provide a more relaxing flying experience for business class customers. People pay for great customer service, and SA should maintain a level of service that is consistent with its brand image by upgrading its amenities to cater to its customers. Customer loyalty and retention is far more important than the cost of the beds. In fact, most companies reimburse business travelers for travel so a higher ticket price will not deter future business customers from flying with Singapore Airlines. 

Today, I think Virgin Airlines is a very well marketed company in the airline industry. In 2013, Virgin launched its campaign, “Flying in the face of ordinary.” The commercial captures VA’s innovative mission to go beyond standards to provide customers a memorable experience. The flying experience for Virgin Air is fun, young, and tech saavy.. Passengers are greeted with purple lights, and sleek desks with fun upbeat music at the airport. The lights on the plane are purple, and the safety video is a fun pop music video. Passengers can also directly get in touch with attendants through a chat feature included in the entertainment system.

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Concho y Toro

Before I started to really enjoy, try, and learn about different types of wine, I would have easily allowed the  “halo trap” bias to impact my wine purchasing decisions. In fact, the first words that come to mind when I think of France are high quality wine and sophistication, so I would undoubtedly think a French wine is a higher quality product than one produced in Chile. 

As the case notes, Chilean wine does not have a distinct brand, and it is considered “safe and boring,” like the Volvo brand in the automobile industry. Concho Y Toro needs to follow a top-down approach and market its premium line over its cheap one. A first impression, as we all know, is hard to change in the customer’s mind. If Concho Y Toro starts to market its cheap line of wine, most consumers will associate the “brand” and Chilean wines in general to be “cheap” lower quality products. Consumers will be less likely to accept “higher quality” products if they are introduced later in the marketing campaign. 

For the marketing content, Concho Y Toro should try to show that Chilean wines are now as sophisticated as and even rivaling some of the best varieties in France and Italy. We saw that Californian wine sales increased significantly when French wine experts had rated Californian wines higher than French ones in blind taste tests. Why not apply the same tactic with Chilean wines? Lastly, the advertisement should also invoke associations with Chile ( the food, culture, the beautiful landscape, or intricate process of producing the wine) that is strongly engrained in the customers mind. Once Chile is associated with quality, premium wine products in American minds, than it will be easier to generate demand and market a cheaper variety. 

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Diffusion of Innovations

While reading the case, it was very easy to distinguish products with high market potential and adoption rates. In particular, I decided to explore two products, one of which I believe will be slow to diffuse in the market (the sliced peanut butter) and the other which I expect to diffuse rapidly in the market (the silver nanocrystal band-aids). 

I have outlined my thoughts below:

What is the market potential for each of the products? There is a small market potential for this product. It can be used by virtually anyone who wants to efficiently and quickly make peanut butter sandwiches.  Unfortunately, the product use is limited to sandwiches, as I believe people will prefer to use regular peanut butter while preparing other snacks.

Time to reach market: Slow - I think people are familiar with the jar container packaging for peanut butter products. They may be hesitant to try peanut butter in slice form.

Relative advantage: The sliced peanut butter allows one to create sandwiches quickly and easily without tearing the bread or using a fork or knife.

Compatibility: The product is not compatible with current peanut butter offerings on the market. The product is presented in a different shape and form than that of traditional product offerings.  Consumers may feel that this packaging will impact taste, freshness, consistency and texture of a traditional peanut butter sandwich or other peanut butter snacks.

Complexity: The product is not complex for consumers to use if they are creating peanut butter sandwiches. It may be complex to use if the peanut butter slices are used while preparing other peanut butter snacks. In addition, I would imagine that this product would need to be refrigerated unlike traditional spreadable peanut butter. 

Trialability: The product is easy to test by consumers.

Observability: The product is observable to a degree if the consumer prepares food items around others. The slices in the end product may not be observable to others.

All in all, this product has a small market potential. Although it is not complex, easy to test and is relatively observable, I believe that the product will be adopted at normal pace due to its in-compatibility with current peanut butter product offerings. Peanut butter is a traditional American spread with a longstanding tradition and history in the country. The negative impact of changing the consistency of the condiment outweighs the efficiencies it brings to the user.  

2) The Silver screen takes on germs

What is the market potential for each of the products? There is a large market potential for this product. Consumers can treat serious burns and injuries more effectively with this over the counter treatment.

Time to reach market potential? This product will be reach market potential rapidly as it is presents a relative advantage, it is compatible with current product offerings, is easy to test/use and can be observable to others.

• How do Rogers’ five factors apply to the four products?

Relative advantage – The product offers an advantage to kill germs and treat wounds effectively with silver nanocrystals. The band-aid prevents further infection and this can save consumers time and money. Currently, this is the only type of band-aid that is available for customers to use over the counter. 

Compatibility: The product is very compatible with current offerings. The product looks and feels like a regular band-aid.

Complexity: The product is very easy to use.

Trialability: The product is very easy to test. In fact, the FDA has approved these band-aids to treat serous wounds. This approval will give the OTC products instant credibility in the market.

Observability: The product can be observable to others if the manufacturer chooses to design the band-aid to have a distinguishable color or shape.

All in all, this is product is highly disruptive and its ease of use and relative advantage will allow it to be quickly adopted in the market. 

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Corona vs. Heineken

The marketing and branding strategy for Corona is simple, but excellently executed and powerful. I am not familiar with beer, but when I think of Corona, I immediately think of foreign beaches, sun, and relaxation. I am able to recall the many posted photos of beaches w/ Corona bottles on my Instagram and Facebook feeds as well as iconic television advertisements featuring people relaxing on the beach with a refreshing Corona in hand. Modelo has perfected its branding strategy for Corona. The company is not selling a beer, but a lifestyle. People who buy the beer do so in order to invoke fun and happy emotions that they expect to feel on vacation, summer, and on the beach. 

When I think of Heineken, I am lost for words. I do not know the brand or lifestyle messaging associated with the brand. In fact, I did not even realize that the beer was imported from the Netherlands before reading this case. This is a major branding flaw for the beer as it does not have strong foreign, national or even lifestyle associations. Heineken can address these issues as follows : 1) Emphasize that the beer is imported from the Netherlands and tie in a genuine lifestyle for the brand 2) Revamp the advertising strategy for the beer that invokes a distinct and unique emotion similar to advertisements for Corona (beach, sun, fun) or Budweiser ( all American/patriotic/masculinity). 3) Create consistent marketing content that will target younger university populations in which Heineken sales have been weak. 4) Get key brand evangelists who embody the Heineken lifestyle to promote the brand. Pepsi, Coke and even Smart Water have brand ambassadors who embody the lifestyle of the brand. 

With these steps taken, Heineken should be able to secure its number 1 spot in the imported beer sales category. 

2) Revamp advertising strategy for the brand: Absolut Vodka 

(Distinct Absolut Brand for Vodka) 

4) Brand ambassadors (Pepsi, Coke, Smart Water) that embody the lifestyle and qualities of Heineken 

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Black and Decker case

Black and Decker is a well regarded brand among consumers, but this does not hold in the professional-tradesmen segment. A typical tradesman dismisses B&D’s professional grade’s products, stating that the brand is known to make a “good popcorn popper....and dust buster,” but not tools to make a living. The company’s weak performance in the professional tradesmen segment is due to its poor branding strategy, which stems from the color of the tools to the name and price of the product line. I suggest that B&D change the price point and color of these tools, but also employ option 3 and drop the Black and Decker name from the product line. 

Although B&D’s professional grade products are of high quality, tradesmen feel embarrassed to use these tools on the job as the charcoal grey color of the tools are associated with consumer grade products that are best suited for light weight amateur work. My suggestion is that B&D differentiate the tradesman line with a bold color that is not grey and not used by competitors in this segment. Galli suggests yellow, but the color should be carefully chosen to align with the main characteristics of the product line. 

Additionally, the price point of the professional grade products are low in comparison to competitors such as Milwaukee and Makita. I think that Galli should raise the price of these products in order to increase the brand perception of these products. The name of the product line should be  something new such as DeWalt brand which is viewed favorably for its woodworking equipment. I am confident that with these new strategies in place, B&D will find more success in this professional tradesmen segment. I have elaborated my thoughts below :

Option 2 

Sub Branding will not work for B&D as the company already has a strong reputation in the low quality consumer segment and not in the high quality professional segment. Tradesmen have already anchored B&D as a consumer brand in their minds so it will be hard to gain credibility in the professional segment in such a short amount of time. In contrast, the Ralph Lauren brand did start with a strong reputation among luxury high-end purchasers, so the sub branding strategy did work when the company expanded to lower quality brands. For example, in women’s apparel, RL has six distinct sub brands, which include “Collection” which is very high end luxury runway attire, Polo Ralph Lauren, which is the high end brand and Lauren Ralph Lauren which is the low end brand. The price point, quality and style of the clothing differs in all three of these sub brands as well a the marketing and distribution strategy. 

Option 3 

This option will work best for B&D. Companies such as GAP have distinct product lines that cater to very different consumers. Banana Republic caters to professionals, while GAP and Old Navy provide mid and low priced clothing for consumers of all ages respectively. The demographics of consumers targeted by each of these brands are very different so it would not make sense for GAP employ a sub brand strategy as this would confuse consumers and not help the company position and price its product offerings differently.