Brand Management Class Notes- Nov 15
Another issue that comes up is what is your competition. In some cases, competition is very
direct and in other cases, it is less direct. So Powerade and Gatorade, if you think there is a
sufficient overlap in demand… Similarly, if you are Burger King or Wendy’s, you are in direct
competition with McDonald’s. Pay attention to trends in the environment that may impact the
growth in different settings. You may have economy or price consciousness impact your brand. I
guess finally, it is very important to focus on the major weaknesses of your competitors, so if you
are Burger King or Wendy’s, you should be thinking where does McDonald’s perform badly at.
Two groups go up to describe their brands. First to go up is the Levi’s group. Brings up the
question of how does my brand differ across the different segments. The next step is to take
segmentation of the category, and then to assess your brand’s prospects for each. The 2
go up talks about a yogurt. Criteria for projects addressed.
Let’s take another look at the segmentation idea. So when we ended the class last time, the first
point was that people have different needs, and the way that we go through this segmentation is
not just demographics, we do it on need based segments. How do people differ in the need based
aspect, where they go shopping and what category, they need not only be functional. Clearly in
some categories, the needs differ by occasions, but not in all categories. Let’s go to the Levi’s
slides. What is the location when you wear the jeans? What do you value more-style, value etc.
You then end up with the sales, and the segments are in the sales. Some people want something
relaxed, other people want head turners, other people want stuff that is stylish but not completely
out there. So people want things depending on occasions. Let’s suppose you try to meet this need
based segmentation idea. How might one do this? Car companies segment based on
demographics, and by size of the vehicle, the price point, so that is a typical functional approach
that the car companies use. Let’s take a look at how we might approach this as a car market on a
more need based point. Think of people buying Hummers, or Volvos, or Priuses. The
different for these people. So let’s put down the functional needs, what does it feel like and what
does it look like, so looking at the columns, we can come up with some segments. Let’s begin
with the Volvo brand. What is going on with them? Functionally, what are they looking for?
Safety features, they want to feel protective and safe, we want to buy these cars for families,
want to feel responsible and mature. Want to look smart and sensible. Let’s take a look at
someone who is buying the Prius. What is going on functionally? Something that reduces
pollution and emissions. You want to feel special, we can go on for a while, but if you think of
the market in this way, slice it very differently, this is so much more useful. You can do fun