Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they have changed the product. Even they are looking for line extension but basic brand names are the same.

Sales or market share: A brand generates familiarity and trust, and hence, leads to greater sales. Branded products have an edge over unbranded products.

Premium price: Brands generate trust, a brand manager can charge extra price and people pay for that trust.

Differentiation: Creating a brand is nothing but creating a strong association. This association clearly differentiates the branded product from the rest.

According to brand evolution model developed by Kunde (2000) (Exhibit 4), as the value of brand becomes stronger and more relevant to customers, the brand becomes more involving, and thus, managers need to make their brand values more relevant to increase customer’s involvement. This is explained by religion model also. The model distinguishes 5 types of brands: -

Product Brand: Products without any form of added value connected to the generic element.

Concept Brand: Brands that are driven by emotional values - as opposed to product characteristics.

Corporate Concept Brand: Brands that merge with the company and present themselves in a sustained and consistent way.

Brand Culture Brand: Brands that are so strong that they - in the eyes of the consumer - have become equated with the function they represent.

Brand Religion Brand: The ultimate brand position is that of brands that - in the eyes of the consumer - have become a "must", a faith to which they profess.

Big Bazaar: Positioning & Establishment

Big Bazaar has established itself in the first quadrant of Organization Value and Customer Value Matrix (Exhibit 5). The SWOT Analysis (Exhibit 6) of current strategy of Big Bazaar elaborates the core competencies and areas of improvement. The key features that have shaped in establishing of brand includes: -

Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store.

Big Bazaar scores high on product mix as compared to kirana store.

Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers.

Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand.

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* Contributed by: -
Ravi Bhatia is a second year student of PGDM at IIM Calcutta. He is an Engineer with honors degree from IIIT Allahabad. He has worked for India's number one private life insurance provider and leading communication software provider, and has authored several articles and press-releases.
Article posted on January 25, 2009.