Monday, March 23, 2009

4-D Branding

This article is about 4-D branding, which also a book is written by Thomas Gad. Let us try to have clear understanding of what 4-D branding is all about as directly from book.

“It is a four-dimensional model for understanding brand strengths and weaknesses. It can be used to create a new brand or analyze the strategic options for established brands. The model enables companies to create their own unique ‘brand cose’ or mindspace’, the unique corporate DNA, which can be used to drive every aspect of a business- from product innovation to recruitment.”

The 4-D model consists of”

The Functional Dimension: it describes the unique features of a product or service.

The Mental Dimension: it creates an individual experience through the brand, as Nike did with ‘Just do it’. It builds value in the mind of users.

The Social Dimension: it speaks about the experience of the consumer as a user, as Starbucks did when it introduced European case culture into the US.

The Spiritual Dimension: it talks about what the brand stands for. The 4-D brand goes right to the core of the customers’ systems of beliefs.

 

Let us take an example of Nike, Social Dimension associated with NIKE is SWOOSH. It is a dream trademark for NIKE. Whether Nike uses its name or not, people can recognize that Swoosh belongs to NIKE. This is a powerful branding and social dimension associated with this small sign.

Moreover it is not always true that money creates brands, if it is to be true then big companies would have always made string and powerful brands. Before making brands the company should be knowing what its brands stand for. While in this case Nike Air, special shoes with special techniques which gives sporty looks and comfort to the user is what Nike stands for. This is a Functional Dimension to that.

One of the small and again strongest punch line in the world is of once again Nike ‘JUST DO IT’. This exactly is what is required to support an individual mentally.

On the other hand, spiritual dimension talks about global or local responsibility of a company depending on the business of the company. As per Nike’s business, Anti-child labours is one of the perspective of Nike.

“

In a similar way, we can apply 4-D branding to any existing or new brand. Branding is all about building and maintain relationships with all stakeholders. Great brands touch people directly or indirectly so now

Maggi


According to one article in economic times, What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India.


Maggi, when we hear this word, the first image that comes to the mind of the people is of 2- minute noodles. In spite of the fact brand is having other products also in portfolio but only Maggi noodles is what customers can recall.


Nestle India Ltd introduced the brand Maggi in 1982 in India. The first product, which was launched in the country was Maggi 2 minute Noodles. When nestle launch Maggi in India that time instant noodle category was not well known in the country. With this launch, entire new food category was created, being first to enter into market, brand was able to retain it leaderships in instant noodles for long period. The tagline used was ‘Fast to cook and good to eat’, the main aim to use this tagline to great awareness about advantage of using it. Maggi is one of those example that are successful in creating high brand awareness and thus in turn helped the company to have high brand value.

Maggi also focused on understanding what consumer wants and then they provide product according to that. Company studied that there was requirement of convenient food and the same time, which allows mother to add her own inputs like vegetables and so on.

Nestle is continuously innovating its product line in terms of Maggi as market is growing more health conscious so company launched new range of Veg Atta noodles. Even basic range of Maggi is being enriched with more proteins and calcium so that primary customers of brand, children get 20% of their dietary allowance from Maggi only. Though in some instants Maggi was involved in some controversy also like it contains additive E627, which is partly prepared from fish thus it doesn’t remains a vegetarian dish despite all its claims

Maggi started getting stiff competition from Top Ramen in 1990s so company introduced new noodles but customers did not like the taste of the new noodles. So in 1999 nestle has to re -launch old Maggi noodles. In the initial phase of its launch in the country maggi was distributed free of cost in schools to encourage trials and today India is the largest market for Maggi noodles.

Maggi is one of the examples that fit into filling the gap, identifying the customers, providing the product, continuously innovating the product and spending huge on distribution network and advertising.