STRATEGIC BRAND MANAGEMENT

YOUNG AND RUBICAMS BRANDASSET VALUATOR

SUBMITTED TO:
MAAM FAGHIA AHMED

SUBMITTED BY:
MEHAK AFZAL
MUHAMMAD RAMEEZ
JAMEEL SADDIQUE
HAFIZ HASEEB
ABDUL RAFFAY

INSTITUTE OF ADMINISTRATIVE SCIENCES

YOUNG AND RUBICAMS BRAND ASSET VALUATOR

FOUR PILLARS

RELATIONSHIP AMONG THE PILLARS

THE POWERGRID

APPLYING BAV TO NESTLE

COMPETITIVE ADVANTAGE ON BRAND ATTRIBUTES

SUCCESSFUL CATEGORY EXTENSIONS

SUCCESSFUL GLOBAL EXPANSION

SUMMARY
 SHAN FOOD INDUSTRIES

INTRODUCTION:
Shan is a Pakistani producer of spice mixes used in Pakistani cuisine and other dishes of South

Asia. The company's products are exported to many nations, and the popularity of such products

is due to the reduction in the time required to make traditional meals. The journey of Shans

remarkable success starts from 1981 when the dream of one man became a reality. A visionary

entrepreneur, Mr. Sikander Sultan, Chairman, Shan Foods (Pvt.) Ltd, helped pave the way to

success by pioneering in the spice business with a single room operations. Initially, recipe mixes

were only shared within the broader family but in a very short span of time they gained

popularity and orders started pouring in from friends, acquaintances and general consumers.

Overtime, the company prospered and Mr. Sultan decided to launch his very own

brand, SHAN and since then there has been no turning back!

.Few years later in early 2000s it started exporting its products to Europe, United Kingdom,

United States and the Middle East. Within a decade, Shan has become a world known

organization and is recently exporting its species to 25 countries.In 2000, Shan increased its

penetration in the central and northern regions of Pakistan, and officially launched in India in

2004. Shan exports to 65 countries making it Pakistan's largest exporter of packaged spice, food,

and rice mixes. The company also sponsors cooking competitions.Today, Shan is a powerful

global brand that has presence in over 65 countries across 5 continents

Shan Foods philosophy is to innovate products with delicacies of the sub-continent to give

people a bite of happiness every day.As the pioneer in spice mixes, Shan ensure that
 theirproducts are not just convenient and easy to prepare but also deliver on the flavor, traditional

taste and aroma that the consumers love and cherish.

VISION AND MISSION:

Establish Shan as the leading culinary brand, offering authentic traditional recipes &

home food solutions, with relentless focus on excellence in all we do, ensuring a

wholesome experience for our consumers around the world.

PRODUCTS OF SHAN:
Shan Achar Ghost Masala

Shan Biryani Masala

Shan Bombay Biryani Masala Economy Pack

Shan Chicken Masala

Shan Chinese Egg Fried Rice

Shan Curry Powder

Shan Delve Jelly Falooda

Shan Delve Jelly Strawberry

And many more items.

YOUNG AND RUBICAMS BRAND ASSET VALUATOR:

The Brand Asset Valuator (BAV) was developed by Young and Rubicam and extended by BAV

Consulting. It is the worlds largest database of consumer derived information on brands. BAV
model explains that how brands grow, how they get into trouble and how they recover. It is

important to assess a brands current achievements and stature.It is even more powerful when the

future potential of the brand can be measured as well. Y&R Brand Asset Valuator offers this

opportunity. Combining exhaustive amounts of consumer data with a proven model of brand-

building, Brand Asset Valuator anticipates future operating earnings and operating margins. This

can enhance the marketing decision process in a variety of substantive ways. Brand Asset

Valuator can help managers understand marketplace opportunities and the types of risk that grow

them. It can provide a deeper understanding of consumer behavior. Brand Asset Valuator stands

apart from other brand study aids in a number of ways. It is predictive and focused on leading

indicators instead of lagging. It is exhaustive in every way, size and scope. Most importantly, it

evaluates a brand in the entire world of brands not in a category.

It also provide set of strategic brand management tools for planning: brand positioning, brand

extensions, joint branding ventures and other strategies designed to assess and direct brands and

their growth. It also determine a brands contribution to a companys valuation. Thus, by

comparing brands across as well as categories, BAV is able to draw the broadest possible

conclusions about how consumer-level brand equity is created and built or lost.

FOUR PILLARS:
There are four key components of brand health. Each pillar is derived from various measures that

relate to different aspects of consumers brand perceptions. Taken together, the four pillars trace

the progression of a brands development.

It measures the degree to which a brand is seen as different from others, and captures the brands

direction and momentum. This is a necessary condition or profitable brand. It relates to pricing

power and is often the key brand pillar in explaining valuation multiples like market value to

sales.

2. RELEVANCE MEASURES:

The appropriateness of the brand to consumers and the overall size of a brands potential

franchise or penetration is relevance measures.

3. ESTEEM MEASURES:

Esteem measures is how well the brand is regarded and respected-in short, how well its liked.

Esteem is related to loyalty.

4. KNOWLEDGE MEASURES:

It is how intimately consumers are with a brand, related to the saliency of the brand.

Interestingly, high knowledge is inversely related to a brands potential.

These measures are used in BrandAsset Valuator to evaluate current brand performance, to

identify core issues for the brands, as well as to evaluate brand potential. Brands can be

evaluated by these individual measures. But more important, the relationships between these

measures, or "pillars", show the true picture of a brand's health, its intrinsic value, its muscular
capacity to carry a premium price and its ability to fend off competitors.

APPLYING BAV MODEL:

BAV model includes brand positioning, brand extension and joint venturing.

POSITIONING STRATEGY: By creating product, service, channel, people and image

differentiation shan arrives the consumer touch point more easily, effectively & efficiently in

comparing with other competitors in the highly competitive food processing market. Shan

positioning strategy includes Product differentiation, Channel Differentiation, Image

differentiation, Image differentiation and Service differentiation.

PRODUCT DIFFERENTIATION: Shan brings a lot of product to target customers. As

they provide different type of traditional spices, meetha recipies.

their expert market salesman and transportation. So that their products are much

available to their respective customers.

IMAGE DIFFERENTIATION: Nestls logo is totally different from its competitors

that are greatly accepted by its customers.

PEOPLE DIFFERENTIATION: Nestle has a large number of employees that are

highly educated and trained.

SERVICE DIFFERENTIATION:Better service for its respective customers from its

competitors, 24 hours hot line service.

BRAND EXTENSION:Brand extension is a common method used by companies to launch a

new product by using an existing brand name on a new product in a different category. A

company using brand extension hopes to leverage its existing customer base and brand loyalty to

increase its profits with a new product offering.Nestle extends its product line and lunch new

products that are: Nescafe, Nestea, Maggi

JOINT VENTURES:Some joint ventures of Nestle includes:

Cereal Partners Worldwide with General Mills

Beverage Partners Worldwide with The Coca-Cola Company

Nestl Colgate-Palmolive with Colgate-Palmolive

Nestl Snow with Snow Brand Milk Products

COMPETITIVE ADVANTAGES ON BRAND ATTRIBUTES:

Leading overall market position and number one or two brands in most areas.
 The extraordinarily large scope of Nestls business provides for significant economies of

scale in manufacturing, marketing and administration.

The research and development capabilities allow the Company to lead the way in

innovation and provides for maximum portfolio flexibility.

SUCCESSFUL CATEGORY EXTENSIONS:

their extension are as below.

FOOD AND BEVERAGE CATEGORIES: The Nestl brand covers practically all

food and beverage categories: milk and dairy products, nutrition (infant, healthcare,

performance and weight management), ice cream, breakfast cereals, coffee and

beverages, culinary products (prepared dishes, cooking aids, sauces etc.), chocolate and

confectionery, pet care and bottled water.

WATER CATEGORIES:Many brands have category leadership, both globally and in

local markets. Many have existed for several decades. Some, like S.Pellegrino the

mineral water from Italy and Nestl Moa in Brazil, are well over 100 years old. Nestl

is the world leader in mineral and spring water through brands such as Vittel, Contrex,

Perrier, S.Pellegrino, Levissima, Vera and Panna.

JUICE CATEGORIES:Nestl is present in fruit juices, where its most important brand

is Libbys in the United States, and in tea-based drinks, particularly soluble and ready-to-

drink Nestea.

COFFEE CATEGORIES:Nescaf, which today includes ready-to-drink varieties, is by

far the worlds most popular brand of coffee. The Group markets traditional roasted
 coffees in several European countries, as well as espresso coffee in capsules through

Nespresso.

OTHER CATEGORIES: Nestl is also the worldwide leader in chocolate/malt

beverages, with brands such as Nesquik, Milo and Nescau. The best-known global brands

include Maggi, Buitoni, Purina and of course Nestl itself. Other brands also sell in many

countries for example, Milo, Nesquik, Nespresso, Kit Kat, Smarties, Polo, and Friskies.

The total number of brands including local brands reaches into several thousands

SUCCESSFUL GLOBAL EXPANSION:

base products such as noodle and tofu. Nestl has expanded into 5 countries and expects to

supply all food products throughout the regions namely, Turkey, Egypt, Syria, Dubai and Saudi

Arabia.

Nestl has opened two new factories in China as it continues to grow its business in the country

by investing in its portfolio of local and global brands.

Nestle is expanding their business in Indonesia and Thailand now. They are investing a total of

$320m in expansion products in order to target health conscious customers.

In Indonesia Company has invested $200m into the construction of new production factory,

Karawang Indonesia. In Thailand Nestle invested $120m to increase manufacturing of its

products.

In Pakistan where half of the worlds malnourished children are found the Nestl has launched

its Healthy Kids (NHK) programme, with a view to raise nutrition and health knowledge among

schoolchildren.
Nespresso has unveiled its newest Nespresso boutique in Asia in Bangkok, Thailand, following

the launch of commercial operations in the country. A Nespresso boutique is also scheduled to

open in Libreville, the capital of Gabon.

Although Nestl has not always started from scratch, the company has used acquisition as a

penetration strategy to expand and penetrate new international markets. In recent years, Nestl

Health Science has made several acquisitions. It acquired Vitaflo, which makes clinical

nutritional products for people with genetic disorders; CM&D Pharma Ltd., a company that

specializes in the development of products for patients with chronic conditions like kidney

disease; and Prometheus Laboratories, a firm specializing in treatments for gastrointestinal

diseases and cancer. It also holds a minority stake in Vital Foods, a New Zealand-based company

that develops kiwifruit-based solutions for gastrointestinal conditions.

Nestl announced to open 10 skin care research centers worldwide, deepening its investment in a

faster-growing market for healthcare products.